Florida 2-20 Insurance License Exam Questions with 100% Correct Answers

Actual authority Correct Answer anything a principal authorizes the agent to do Aleatory contract Correct Answer contract in which the amounts exchanged are not equal Conformity to statute Correct Answer a policy provision that says the policy follows a state's law if the law and policy language are in conflict Contract of adhesion Correct Answer contract drawn by one party and offered to another on a "take it or leave it" basis Direct writer agent Correct Answer an agent that is an employee of an insurer, rather than as an independent holding contracts with an insurer Duty of accounting Correct Answer the agent must account for any money entrusted to him by the principal Duty of loyalty Correct Answer owed by an agent to the principal- the agent must not do anything to harm the principal Duty of obedience Correct Answer the agent must obey all lawful instructions from the principal Duty of reasonable care Correct Answer the agent must exercise the same degree of care as a reasonable and prudent person Duty to give information Correct Answer the agent must keep the principal informed about any factors that affect the principal-agent relationship Exclusive agent Correct Answer an agent that has a contract with only one insurer. May or may not be an employee of the insurance company he represents. FAIR plan Correct Answer a government program that offers property and crime insurance in the inner cities Fraternal insurers Correct Answer offer coverage only to members of a particular group Hazard Correct Answer increases the chance of loss from a peril Indemnify Correct Answer to make whole again financially