Florida ACA Claims Licensing Exam
Questions and Answers
Insurance - Correct Answer: transfer of risk by contract to insurers who agree to indemnify insureds for
losses
Risk - Correct Answer: chance of loss
pure risk - Correct Answer: only outcomes are loss or no loss
personal risk - Correct Answer: premature death, insufficient income, poor health, unemployment
property risk - Correct Answer: loss of real property or personal property (on the land not the land itself)
Liability risk - Correct Answer: something that results in loss to another (3rd party buyout)
Controlling risk - Correct Answer: risk management; minimal loss
speculative risk - Correct Answer: either profit or loss is possible (NOT insurable)
indemnify - Correct Answer: compensate for loss, damage, or injury; reimburse; repay
Law of Large Numbers - Correct Answer: must have a large pool of insureds to be able to predict losses
so that the outcomes will reflect the probability of the results
Direct loss - Correct Answer: Results from the damage, destruction, or theft of property by a covered
peril
indirect loss - Correct Answer: a financial loss that results from the occurrence of a direct physical
damage or theft loss
, When can there be a pay out on liability risk - Correct Answer: negligence is proven
negligence - Correct Answer: failure to use due care; otherwise known as the prudent person rule
Strict or Absolute Liability - Correct Answer: Liability assigned by statute without regard for negligence
(set by the state or industry, no allowable defense)
Indemnity Principle - Correct Answer: one should be in approximately the same position after a loss as
he was before the loss
Insurer - Correct Answer: A person or company that underwrites an insurance risk; the party in an
insurance contract undertaking to pay compensation.
Insured - Correct Answer: one who is named or covered by insurance
Insurable interest - Correct Answer: must exist at the time of loss and usually means an economic or
other interest in the event or in a particular property ex: bank loans or mortgage companies
What is the measure of insurable interest - Correct Answer: the extent to which the insured might be
damnified by loss, injury, or impairment thereof
Policy - Correct Answer: a written document containing coverage, exclusions, conditions and
endorsements
Binder - Correct Answer: can be oral or written and places the insurance "in effect"
Requirements of a valid contract - Correct Answer: consent of all parties (offer and acceptance), valuable
consideration (monetary exchange), all parties must be of legal capacity (competent), and it must be for
legal purposes to be enforceable
Questions and Answers
Insurance - Correct Answer: transfer of risk by contract to insurers who agree to indemnify insureds for
losses
Risk - Correct Answer: chance of loss
pure risk - Correct Answer: only outcomes are loss or no loss
personal risk - Correct Answer: premature death, insufficient income, poor health, unemployment
property risk - Correct Answer: loss of real property or personal property (on the land not the land itself)
Liability risk - Correct Answer: something that results in loss to another (3rd party buyout)
Controlling risk - Correct Answer: risk management; minimal loss
speculative risk - Correct Answer: either profit or loss is possible (NOT insurable)
indemnify - Correct Answer: compensate for loss, damage, or injury; reimburse; repay
Law of Large Numbers - Correct Answer: must have a large pool of insureds to be able to predict losses
so that the outcomes will reflect the probability of the results
Direct loss - Correct Answer: Results from the damage, destruction, or theft of property by a covered
peril
indirect loss - Correct Answer: a financial loss that results from the occurrence of a direct physical
damage or theft loss
, When can there be a pay out on liability risk - Correct Answer: negligence is proven
negligence - Correct Answer: failure to use due care; otherwise known as the prudent person rule
Strict or Absolute Liability - Correct Answer: Liability assigned by statute without regard for negligence
(set by the state or industry, no allowable defense)
Indemnity Principle - Correct Answer: one should be in approximately the same position after a loss as
he was before the loss
Insurer - Correct Answer: A person or company that underwrites an insurance risk; the party in an
insurance contract undertaking to pay compensation.
Insured - Correct Answer: one who is named or covered by insurance
Insurable interest - Correct Answer: must exist at the time of loss and usually means an economic or
other interest in the event or in a particular property ex: bank loans or mortgage companies
What is the measure of insurable interest - Correct Answer: the extent to which the insured might be
damnified by loss, injury, or impairment thereof
Policy - Correct Answer: a written document containing coverage, exclusions, conditions and
endorsements
Binder - Correct Answer: can be oral or written and places the insurance "in effect"
Requirements of a valid contract - Correct Answer: consent of all parties (offer and acceptance), valuable
consideration (monetary exchange), all parties must be of legal capacity (competent), and it must be for
legal purposes to be enforceable
