Complete; Florida 2-15 Insurance License Exams|
Florida 2-15 Health and Life License Exams All with
Correct Answers / Guarantee Guide 2023/2024
A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as - ANSWERrisk retention group
Who elects the governing body of a mutual insurance company? -
ANSWERPolicyholders
Who is a mutual insurance company owned by? - ANSWERIts policyholders
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWERTreaty
Insurers that are organized in countries outside the United States are referred to as -
ANSWERalien
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWERFair Credit Reporting Act
At what point must an insurance applicant be informed of their rights that fall under
the Fair
Credit Reporting Act? - ANSWERUpon completion of the application
What type of insurer's company is domiciled in England, but conducts business in the
United States? - ANSWERAlien
N causea an accident injuring tree people. N's policy has split limits of liability of
250/500/250.
What is the maximum amount that all three as a whole could collect in the event of
death or injury? - ANSWER$500,000
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated - ANSWER1970 - Fair Credit Reporting Act
During the application process, the agent's primary responsibility is to - ANSWERthe
insurance company
In Virginia, an insurer domiciled and incorporated in Virginia is called a(n) -
ANSWERdomestic insurer
Which of these describe a participating insurance policy? - ANSWERPolicyowners are
entitled to receive dividends
,A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWERa fraternal benefit society
A stock insurance company - ANSWERis owned exclusively by its shareholders
Who owns a stock company? - ANSWERIts stockholders
A mutual insurance company and a stock insurance company have one main
difference between them. What is this major contrast? - ANSWERStock company is
owned by its shareholders. Mutual company is owned by its policyholders.
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely empty with no people or
contents. The warehouse has a - ANSWERVacancy
Y has a policy of split limits of 50/100/50. If Y causes loss, what is the maximum
amount that each person would receive? - ANSWER$50,000
B purchased a home five years ago and was issued an HO-3 contract. This year, B
wants to add the sump pump overflow rider to her policy.
Adding coverage to her policy can best be described as an: - ANSWEREndorsement
An unbroken chain of events that begins with negligence and leads to loss is known
as: - ANSWERProximate Cause
What is CORRECT regarding cancellation of a policy? - ANSWERIf the insured
terminated coverage, the insurer is sometimes allowed to deduct administrative
costs for processing cancellation before refunding any premiums.
H owns a small restaurant that is a local favorite.
One night, H's restaurant catches fire which will cause his business to be shut down
for the next six months, causing H to lose revenue during repairs. H's loss of revenue
because of the fire is known as a. - ANSWERConsequential Loss
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to finds it completely with no people but there
is some miscellaneous office furniture.
The warehouse has a: - ANSWERUnoccupancy
An insured purchases a rental property for $250,000, its replacement cost. He
insures it for $150,000 under a Property Coverage Form with an 80 percent
Coinsurance clause with a $100 deductible. In the event of a $100,000 loss how
much will the insurer pay on the claim? - ANSWER$74,900
J has a policy that pays a maximum single dollar amount for property damage and
death or bodily injury. Which limit of liability does J's policy have? -
ANSWERCombined Single Limit
, Which of the following situations would be best described as a pure risk? -
ANSWERAn insured purchasing an HO-6 policy to insure their new condo
F's toy company has just produced a child's toy that has sharp edges. Although F's
toy company guarantees the product is safe, if a child were to get hurt, the company
would have: - ANSWERStrict Liability
Which of the following would be an example of a peril?
• Fire
• Lightning
• Internal Explosion - ANSWERAll of the answers listed.
An unintended, unforeseen reduction or destruction of economic value is known as:
- ANSWERLoss
An event or mindset that greatly increases the change that a peril will actually occur
is known as: - ANSWERHazard
A lightning storm that completely destroys an insured's roof is an example of a -
ANSWERDirect Loss
D purchased an antique muscle car in November with the intent to restore it in the
summer. Upon inspection, D decides that the car is in good enough shape to store it
in the garage until the weather gets warmer. Although D knows how to fix cars, he
misses a very small hole in the gas tank. If the gas were to accumulate over time and
cause the car and garage to explode, the event would be defined as -
ANSWEROccurrence
Which of the following best describes Actual Cash
Value loss valuation? - ANSWERCurrent replacement minus depreciation
M owned a factory warehouse that suffered a total loss due to a fire. The insurer
discovers that they can scrap some of the metal beams left from the structure to
recoup some of their loss paid to the insured. Which method of valuation would
allow this to occur? - ANSWERSalvage Value
An insurance company insures two million homes under Homeowners coverage and
collects $1,500
in premium from each insured. In the next policy year, only 200 homes suffer a total
loss. In this event, the insurer still collected enough premium dollars from all
insureds to pay the actual losses as well as their overhead and still collected a profit.
This is known as - ANSWERLaw of Large Numbers
An insured purchases an apartment building for $250,000, its replacement cost. He
insures it for $150,000 under a Building and Property Coverage Form with an 80
Florida 2-15 Health and Life License Exams All with
Correct Answers / Guarantee Guide 2023/2024
A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as - ANSWERrisk retention group
Who elects the governing body of a mutual insurance company? -
ANSWERPolicyholders
Who is a mutual insurance company owned by? - ANSWERIts policyholders
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWERTreaty
Insurers that are organized in countries outside the United States are referred to as -
ANSWERalien
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWERFair Credit Reporting Act
At what point must an insurance applicant be informed of their rights that fall under
the Fair
Credit Reporting Act? - ANSWERUpon completion of the application
What type of insurer's company is domiciled in England, but conducts business in the
United States? - ANSWERAlien
N causea an accident injuring tree people. N's policy has split limits of liability of
250/500/250.
What is the maximum amount that all three as a whole could collect in the event of
death or injury? - ANSWER$500,000
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated - ANSWER1970 - Fair Credit Reporting Act
During the application process, the agent's primary responsibility is to - ANSWERthe
insurance company
In Virginia, an insurer domiciled and incorporated in Virginia is called a(n) -
ANSWERdomestic insurer
Which of these describe a participating insurance policy? - ANSWERPolicyowners are
entitled to receive dividends
,A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWERa fraternal benefit society
A stock insurance company - ANSWERis owned exclusively by its shareholders
Who owns a stock company? - ANSWERIts stockholders
A mutual insurance company and a stock insurance company have one main
difference between them. What is this major contrast? - ANSWERStock company is
owned by its shareholders. Mutual company is owned by its policyholders.
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely empty with no people or
contents. The warehouse has a - ANSWERVacancy
Y has a policy of split limits of 50/100/50. If Y causes loss, what is the maximum
amount that each person would receive? - ANSWER$50,000
B purchased a home five years ago and was issued an HO-3 contract. This year, B
wants to add the sump pump overflow rider to her policy.
Adding coverage to her policy can best be described as an: - ANSWEREndorsement
An unbroken chain of events that begins with negligence and leads to loss is known
as: - ANSWERProximate Cause
What is CORRECT regarding cancellation of a policy? - ANSWERIf the insured
terminated coverage, the insurer is sometimes allowed to deduct administrative
costs for processing cancellation before refunding any premiums.
H owns a small restaurant that is a local favorite.
One night, H's restaurant catches fire which will cause his business to be shut down
for the next six months, causing H to lose revenue during repairs. H's loss of revenue
because of the fire is known as a. - ANSWERConsequential Loss
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to finds it completely with no people but there
is some miscellaneous office furniture.
The warehouse has a: - ANSWERUnoccupancy
An insured purchases a rental property for $250,000, its replacement cost. He
insures it for $150,000 under a Property Coverage Form with an 80 percent
Coinsurance clause with a $100 deductible. In the event of a $100,000 loss how
much will the insurer pay on the claim? - ANSWER$74,900
J has a policy that pays a maximum single dollar amount for property damage and
death or bodily injury. Which limit of liability does J's policy have? -
ANSWERCombined Single Limit
, Which of the following situations would be best described as a pure risk? -
ANSWERAn insured purchasing an HO-6 policy to insure their new condo
F's toy company has just produced a child's toy that has sharp edges. Although F's
toy company guarantees the product is safe, if a child were to get hurt, the company
would have: - ANSWERStrict Liability
Which of the following would be an example of a peril?
• Fire
• Lightning
• Internal Explosion - ANSWERAll of the answers listed.
An unintended, unforeseen reduction or destruction of economic value is known as:
- ANSWERLoss
An event or mindset that greatly increases the change that a peril will actually occur
is known as: - ANSWERHazard
A lightning storm that completely destroys an insured's roof is an example of a -
ANSWERDirect Loss
D purchased an antique muscle car in November with the intent to restore it in the
summer. Upon inspection, D decides that the car is in good enough shape to store it
in the garage until the weather gets warmer. Although D knows how to fix cars, he
misses a very small hole in the gas tank. If the gas were to accumulate over time and
cause the car and garage to explode, the event would be defined as -
ANSWEROccurrence
Which of the following best describes Actual Cash
Value loss valuation? - ANSWERCurrent replacement minus depreciation
M owned a factory warehouse that suffered a total loss due to a fire. The insurer
discovers that they can scrap some of the metal beams left from the structure to
recoup some of their loss paid to the insured. Which method of valuation would
allow this to occur? - ANSWERSalvage Value
An insurance company insures two million homes under Homeowners coverage and
collects $1,500
in premium from each insured. In the next policy year, only 200 homes suffer a total
loss. In this event, the insurer still collected enough premium dollars from all
insureds to pay the actual losses as well as their overhead and still collected a profit.
This is known as - ANSWERLaw of Large Numbers
An insured purchases an apartment building for $250,000, its replacement cost. He
insures it for $150,000 under a Building and Property Coverage Form with an 80
