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FLORIDA 2-20 AGENTS LICENSE EXAM NEWEST VERSION
REAL EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS|AGRADE||BRAND NEW VERSION!!
Question 1
Which type of insurer is owned by its policyholders?
A. Stock insurer
B. Mutual insurer
C. Reciprocal insurer
D. Fraternal insurer
Answer: B. Mutual insurer
Rationale: Mutual insurers are owned by policyholders.
Question 2
What is the main purpose of insurance?
A. Investment growth
B. Risk transfer
C. Tax reduction
D. Estate creation
Answer: B. Risk transfer
Rationale: Insurance transfers financial risk from insured to insurer.
Question 3
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Which Florida entity regulates insurance agents?
A. SEC
B. FINRA
C. Florida Department of Financial Services
D. Federal Reserve
Answer: C. Florida Department of Financial Services
Rationale: DFS regulates insurance licensing and compliance in Florida.
Question 4
A contract requiring both parties to exchange consideration is:
A. Aleatory
B. Adhesion
C. Bilateral
D. Conditional
Answer: C. Bilateral
Rationale: Bilateral contracts require mutual promises.
Question 5
What is the purpose of underwriting?
A. Increase claims
B. Evaluate risk
C. Pay commissions
D. Audit taxes
Answer: B. Evaluate risk
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Rationale: Underwriting determines acceptable insurance risk.
Question 6
Which risk is generally insurable?
A. Speculative risk
B. Gambling loss
C. Pure risk
D. Investment risk
Answer: C. Pure risk
Rationale: Insurance covers pure risks involving loss only.
Question 7
What must an applicant provide to make an insurance contract valid?
A. Warranty deed
B. Consideration
C. Securities license
D. Endorsement
Answer: B. Consideration
Rationale: Consideration includes premium and truthful statements.
Question 8
Which policy provision prevents overinsurance and profit from loss?
A. Waiver
B. Coinsurance
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C. Indemnity
D. Appraisal
Answer: C. Indemnity
Rationale: Indemnity restores insured to prior financial condition only.
Question 9
An agent who represents the insurer is called:
A. Broker
B. Fiduciary
C. Adjuster
D. Solicitor
Answer: B. Fiduciary
Rationale: Agents owe fiduciary duties to insurers and clients.
Question 10
Which authority is specifically written in the agency contract?
A. Implied authority
B. Express authority
C. Apparent authority
D. Emergency authority
Answer: B. Express authority
Rationale: Express authority is granted directly in writing.
Question 11
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FLORIDA 2-20 AGENTS LICENSE EXAM NEWEST VERSION
REAL EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS|AGRADE||BRAND NEW VERSION!!
Question 1
Which type of insurer is owned by its policyholders?
A. Stock insurer
B. Mutual insurer
C. Reciprocal insurer
D. Fraternal insurer
Answer: B. Mutual insurer
Rationale: Mutual insurers are owned by policyholders.
Question 2
What is the main purpose of insurance?
A. Investment growth
B. Risk transfer
C. Tax reduction
D. Estate creation
Answer: B. Risk transfer
Rationale: Insurance transfers financial risk from insured to insurer.
Question 3
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Which Florida entity regulates insurance agents?
A. SEC
B. FINRA
C. Florida Department of Financial Services
D. Federal Reserve
Answer: C. Florida Department of Financial Services
Rationale: DFS regulates insurance licensing and compliance in Florida.
Question 4
A contract requiring both parties to exchange consideration is:
A. Aleatory
B. Adhesion
C. Bilateral
D. Conditional
Answer: C. Bilateral
Rationale: Bilateral contracts require mutual promises.
Question 5
What is the purpose of underwriting?
A. Increase claims
B. Evaluate risk
C. Pay commissions
D. Audit taxes
Answer: B. Evaluate risk
pg. 2
,3|Page
Rationale: Underwriting determines acceptable insurance risk.
Question 6
Which risk is generally insurable?
A. Speculative risk
B. Gambling loss
C. Pure risk
D. Investment risk
Answer: C. Pure risk
Rationale: Insurance covers pure risks involving loss only.
Question 7
What must an applicant provide to make an insurance contract valid?
A. Warranty deed
B. Consideration
C. Securities license
D. Endorsement
Answer: B. Consideration
Rationale: Consideration includes premium and truthful statements.
Question 8
Which policy provision prevents overinsurance and profit from loss?
A. Waiver
B. Coinsurance
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C. Indemnity
D. Appraisal
Answer: C. Indemnity
Rationale: Indemnity restores insured to prior financial condition only.
Question 9
An agent who represents the insurer is called:
A. Broker
B. Fiduciary
C. Adjuster
D. Solicitor
Answer: B. Fiduciary
Rationale: Agents owe fiduciary duties to insurers and clients.
Question 10
Which authority is specifically written in the agency contract?
A. Implied authority
B. Express authority
C. Apparent authority
D. Emergency authority
Answer: B. Express authority
Rationale: Express authority is granted directly in writing.
Question 11
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