FLORIDA PERSONAL LINES LICENSE EXAM LATEST
ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS|AGRADE
5 Qualifications for a General Lines License - ANSWER: 1. 18 years old
2. resident of FL or place of business in FL
3. 200-hour course or 1 yr experience in all lines
4. cannot be for writing controlled business
5. Exam waived for CPCU designation or college degree with 15 hours in insurance
controlled business - ANSWER: more than 50% of income from businesses applicant
is involved in, such as family business
Department of Financial Services - ANSWER: does not make rating and underwriting
rules
risk - ANSWER: chance of financial loss
insurance policy - ANSWER: written contract, including all clauses, riders,
endorsements, and papers
insurance - ANSWER: a contract wherein one undertakes to indemnify another or
pay a specified sum upon the happening of a determinable event
binder - ANSWER: temporary insurance - oral or written; Auto 5 days for
cancellation, all others 60 days
property insurance - ANSWER: payment by insurer (company) is made to insured
liability insurance - ANSWER: payment by insurer (company) is made to others on
insured's behalf
personal contract - ANSWER: contracts cover persons - not property or operations
conditional contract - ANSWER: obligations of insurer may depend upon insured
satisfying some conditions
contract of adhesion - ANSWER: insureds can not negotiate the terms; one-sided
contract
indemnity contract - ANSWER: one should not profit from teh proceeds of the policy
but should be made whole
Exceptions to indemnity - ANSWER: 1. Valued policies
2. Florida Value Policy Law
3. Replacement cost
, 4. Liability insurance
Insurable interest - ANSWER: Must exist at the time of loss
peril - ANSWER: condition or occurrence that may cause a loss (fire, wind, theft,
collision)
hazard - ANSWER: increases the likelihood of a loss
physical hazard - ANSWER: physical characteristic increases the likelihood of a loss -
wet floor
moral hazard - ANSWER: intentional loss - taking drugs
morale hazard - ANSWER: carelessness - leaving cash drawer open in a business
doctrine of proximate cause - ANSWER: unbroken connection between an
occurrence and damage which grows out of the occurrence
direct loss - ANSWER: physical harm to tangible property
indirect loss - ANSWER: economic loss as a consequence of a direct loss - ex) rental
car fees
mortgage holder - ANSWER: has lender's interest in property
lender interest - ANSWER: named in loss payable clause and called loss payee -
personal property; named mortgage/mortgagee clause and called mortgage holders
- real property
real property - ANSWER: buildings and land
personal property - ANSWER: can be taken when you move away
loss settlement valuation - ANSWER: actual cash value = replacement - depreciation
replacement cost - ANSWER: actual cost to repair or replace property; awnings,
flooring, appliances, TV antennaes are excluded
Florida Valued Policy Law - ANSWER: insurer must pay the amount provided in teh
policy for which premium has been paid for a total loss by an insured peril
Co-insurance - ANSWER: artificial device that encourages the insured to pruchase
insurance to a previously agreed amount - 80%, 90%, 100% - [(Did) / (%)(Value of
property at time of loss)] x Loss Amount = Amount paid by company
ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS|AGRADE
5 Qualifications for a General Lines License - ANSWER: 1. 18 years old
2. resident of FL or place of business in FL
3. 200-hour course or 1 yr experience in all lines
4. cannot be for writing controlled business
5. Exam waived for CPCU designation or college degree with 15 hours in insurance
controlled business - ANSWER: more than 50% of income from businesses applicant
is involved in, such as family business
Department of Financial Services - ANSWER: does not make rating and underwriting
rules
risk - ANSWER: chance of financial loss
insurance policy - ANSWER: written contract, including all clauses, riders,
endorsements, and papers
insurance - ANSWER: a contract wherein one undertakes to indemnify another or
pay a specified sum upon the happening of a determinable event
binder - ANSWER: temporary insurance - oral or written; Auto 5 days for
cancellation, all others 60 days
property insurance - ANSWER: payment by insurer (company) is made to insured
liability insurance - ANSWER: payment by insurer (company) is made to others on
insured's behalf
personal contract - ANSWER: contracts cover persons - not property or operations
conditional contract - ANSWER: obligations of insurer may depend upon insured
satisfying some conditions
contract of adhesion - ANSWER: insureds can not negotiate the terms; one-sided
contract
indemnity contract - ANSWER: one should not profit from teh proceeds of the policy
but should be made whole
Exceptions to indemnity - ANSWER: 1. Valued policies
2. Florida Value Policy Law
3. Replacement cost
, 4. Liability insurance
Insurable interest - ANSWER: Must exist at the time of loss
peril - ANSWER: condition or occurrence that may cause a loss (fire, wind, theft,
collision)
hazard - ANSWER: increases the likelihood of a loss
physical hazard - ANSWER: physical characteristic increases the likelihood of a loss -
wet floor
moral hazard - ANSWER: intentional loss - taking drugs
morale hazard - ANSWER: carelessness - leaving cash drawer open in a business
doctrine of proximate cause - ANSWER: unbroken connection between an
occurrence and damage which grows out of the occurrence
direct loss - ANSWER: physical harm to tangible property
indirect loss - ANSWER: economic loss as a consequence of a direct loss - ex) rental
car fees
mortgage holder - ANSWER: has lender's interest in property
lender interest - ANSWER: named in loss payable clause and called loss payee -
personal property; named mortgage/mortgagee clause and called mortgage holders
- real property
real property - ANSWER: buildings and land
personal property - ANSWER: can be taken when you move away
loss settlement valuation - ANSWER: actual cash value = replacement - depreciation
replacement cost - ANSWER: actual cost to repair or replace property; awnings,
flooring, appliances, TV antennaes are excluded
Florida Valued Policy Law - ANSWER: insurer must pay the amount provided in teh
policy for which premium has been paid for a total loss by an insured peril
Co-insurance - ANSWER: artificial device that encourages the insured to pruchase
insurance to a previously agreed amount - 80%, 90%, 100% - [(Did) / (%)(Value of
property at time of loss)] x Loss Amount = Amount paid by company
