FLORIDA 20-44 LICENSE EXAM
Questions and Answers
1.Risk
Answer Change of a financial loss/uncertainty of a loss to
happen/uncertainty of future outcome
2.Assumed Risk
Answer Amount of risk the insured is willing to absorb
3.Pure Risk
Answer A situation that present the opportunity for loss, but for no
gain; Insurable risk
4.Speculative Risk
Answer Uncertainty about an event under consideration that could
produce either a profit or loss/Business venture/Non-insurable risk
5.Insurance
Answer Contract where one indemnifies or pays another a specific
amount
6.Law of Large Numbers
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,Answer Statistical theory stating the larger the number of similar
exposure united the more predictable and accurate the estimate of
expected loss
7.Policy
Answer Written contract/agreement for or effecting insurance including
clauses, riders and endorsement
8.Declaration Page
Answer Includes Named Insured and Address, policy period, premi- um,
limits and loss payee/mortgagee
9.Insuring Agreement
Answer Portion of the insurance policy in which the Insurer(Insur- ance
Company) promises to make payment for covered perils to or on behalf
of the insured
10.Conditional Contract
Answer Obligation of the insurer (Insurance Company) may be based
on insured satisfying certain conditions
11.Exclusions
Answer Section of policy which lists property, perils, losses, persons
or situations which are not covered
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, 12.Endorsement
Answer Written form attached to an insurance policy that alters the
policy's coverage, terms, or conditions
13.Binders
Answer Temporary insurance/ Can be written or oral
14.Certificate of Insurance
Answer Document providing evidence that certain types of insurance
coverages and limits have been purchased by the insured
15.Contract of Adhesion
Answer Contract created by insurance company - insured can- not
negotiate terms
16.Unilateral Contract
Answer Contract where only one party makes an enforceable
promise
17.Personal Contract
Answer Covers the financial loss suffered by a person - not the
property or operations
18.Definition of Insured
Answer Any person/organization specifically designated by name as an
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Questions and Answers
1.Risk
Answer Change of a financial loss/uncertainty of a loss to
happen/uncertainty of future outcome
2.Assumed Risk
Answer Amount of risk the insured is willing to absorb
3.Pure Risk
Answer A situation that present the opportunity for loss, but for no
gain; Insurable risk
4.Speculative Risk
Answer Uncertainty about an event under consideration that could
produce either a profit or loss/Business venture/Non-insurable risk
5.Insurance
Answer Contract where one indemnifies or pays another a specific
amount
6.Law of Large Numbers
1/
16
,Answer Statistical theory stating the larger the number of similar
exposure united the more predictable and accurate the estimate of
expected loss
7.Policy
Answer Written contract/agreement for or effecting insurance including
clauses, riders and endorsement
8.Declaration Page
Answer Includes Named Insured and Address, policy period, premi- um,
limits and loss payee/mortgagee
9.Insuring Agreement
Answer Portion of the insurance policy in which the Insurer(Insur- ance
Company) promises to make payment for covered perils to or on behalf
of the insured
10.Conditional Contract
Answer Obligation of the insurer (Insurance Company) may be based
on insured satisfying certain conditions
11.Exclusions
Answer Section of policy which lists property, perils, losses, persons
or situations which are not covered
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16
, 12.Endorsement
Answer Written form attached to an insurance policy that alters the
policy's coverage, terms, or conditions
13.Binders
Answer Temporary insurance/ Can be written or oral
14.Certificate of Insurance
Answer Document providing evidence that certain types of insurance
coverages and limits have been purchased by the insured
15.Contract of Adhesion
Answer Contract created by insurance company - insured can- not
negotiate terms
16.Unilateral Contract
Answer Contract where only one party makes an enforceable
promise
17.Personal Contract
Answer Covers the financial loss suffered by a person - not the
property or operations
18.Definition of Insured
Answer Any person/organization specifically designated by name as an
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