FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS|A+ GRADE
Risk - (ANSWER)Change of a financial loss/uncertainty of a loss to happen/uncertainty of future
outcome
Assumed Risk - (ANSWER)Amount of risk the insured is willing to absorb
Pure Risk - (ANSWER)A situation that present the opportunity for loss, but for no gain; Insurable
risk
Speculative Risk - (ANSWER)Uncertainty about an event under consideration that could produce
either a profit or loss/Business venture/Non-insurable risk
Insurance - (ANSWER)Contract where one indemnifies or pays another a specific amount
Law of Large Numbers - (ANSWER)Statistical theory stating the larger the number of similar
exposure united the more predictable and accurate the estimate of expected loss
Policy - (ANSWER)Written contract/agreement for or effecting insurance including clauses,
riders and endorsement
Declaration Page - (ANSWER)Includes Named Insured and Address, policy period, premium,
limits and loss payee/mortgagee
Insuring Agreement - (ANSWER)Portion of the insurance policy in which the Insurer(Insurance
Company) promises to make payment for covered perils to or on behalf of the insured
Conditional Contract - (ANSWER)Obligation of the insurer (Insurance Company) may be based
on insured satisfying certain conditions
, FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS|A+ GRADE
Exclusions - (ANSWER)Section of policy which lists property, perils, losses, persons or situations
which are not covered
Endorsement - (ANSWER)Written form attached to an insurance policy that alters the policy's
coverage, terms, or conditions
Binders - (ANSWER)Temporary insurance/ Can be written or oral
Certificate of Insurance - (ANSWER)Document providing evidence that certain types of
insurance coverages and limits have been purchased by the insured
Contract of Adhesion - (ANSWER)Contract created by insurance company - insured cannot
negotiate terms
Unilateral Contract - (ANSWER)Contract where only one party makes an enforceable promise
Personal Contract - (ANSWER)Covers the financial loss suffered by a person - not the property or
operations
Definition of Insured - (ANSWER)Any person/organization specifically designated by name as an
insured in an insurance policy, as well as others, that although unnamed, fall within policy
definition
Insurable Interest - (ANSWER)One who has an economic interest
ANSWERS|A+ GRADE
Risk - (ANSWER)Change of a financial loss/uncertainty of a loss to happen/uncertainty of future
outcome
Assumed Risk - (ANSWER)Amount of risk the insured is willing to absorb
Pure Risk - (ANSWER)A situation that present the opportunity for loss, but for no gain; Insurable
risk
Speculative Risk - (ANSWER)Uncertainty about an event under consideration that could produce
either a profit or loss/Business venture/Non-insurable risk
Insurance - (ANSWER)Contract where one indemnifies or pays another a specific amount
Law of Large Numbers - (ANSWER)Statistical theory stating the larger the number of similar
exposure united the more predictable and accurate the estimate of expected loss
Policy - (ANSWER)Written contract/agreement for or effecting insurance including clauses,
riders and endorsement
Declaration Page - (ANSWER)Includes Named Insured and Address, policy period, premium,
limits and loss payee/mortgagee
Insuring Agreement - (ANSWER)Portion of the insurance policy in which the Insurer(Insurance
Company) promises to make payment for covered perils to or on behalf of the insured
Conditional Contract - (ANSWER)Obligation of the insurer (Insurance Company) may be based
on insured satisfying certain conditions
, FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS|A+ GRADE
Exclusions - (ANSWER)Section of policy which lists property, perils, losses, persons or situations
which are not covered
Endorsement - (ANSWER)Written form attached to an insurance policy that alters the policy's
coverage, terms, or conditions
Binders - (ANSWER)Temporary insurance/ Can be written or oral
Certificate of Insurance - (ANSWER)Document providing evidence that certain types of
insurance coverages and limits have been purchased by the insured
Contract of Adhesion - (ANSWER)Contract created by insurance company - insured cannot
negotiate terms
Unilateral Contract - (ANSWER)Contract where only one party makes an enforceable promise
Personal Contract - (ANSWER)Covers the financial loss suffered by a person - not the property or
operations
Definition of Insured - (ANSWER)Any person/organization specifically designated by name as an
insured in an insurance policy, as well as others, that although unnamed, fall within policy
definition
Insurable Interest - (ANSWER)One who has an economic interest
