Florida 220 Insurance Exam Test Correct and Verified Answers Graded A

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Florida 220 Insurance Exam Test Correct and Verified Answers Graded A

Question 1 What is a policy renewal?

• Changing the terms of an insurance policy
• Continuing an existing insurance policy term without changes
• Canceling an existing insurance policy
• Increasing the premium of an insurance policy

Correct Answer: B. Continuing an existing insurance policy term without changes

Question 2 A captive insurance company is primarily established for what purpose?

• To insure the general public
• To insure the risks of its parent company
• To offer reinsurance
• To operate in the stock market

Correct Answer: B. To insure the risks of its parent company

Question 3 Which insurer operates on a non-profit basis by returning surplus funds to its policyholders?

• Stock insurer
• Mutual insurer
• Captive insurer
• Lloyds of London company

Correct Answer: B. Mutual insurer

Question 4

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Insurable interest must exist at which time?

• Only at the time of the contracts conception
• Only at the time of the loss
• At the time of the contracts conception and at the time of loss
• At the time the premium is paid

Correct Answer: C. At the time of the contracts conception and at the time of loss Question 5 Which principle prevents the insured from profiting from insurance?

• Insurance interest
• Indemnity
• Contribution
• Subrogation

Correct Answer: B. Indemnity

Question 6 Which principle prevents the insured from profiting from the insurance? (Note: Wording kept exactly as provided)

• Increase the premium after a claim
• Refuse to pay out in the event of fraud
• Pursue a third party that caused an insurance loss to the insured
• Share the loss with other insurers

Correct Answer: C. Pursue a third party that caused an insurance loss to the insured Question 7 The principle of utmost good faith requires which of the following?

• The insurer to compensate for losses promptly
• Both parties to enter into the insurance contract in good faith
• The insured to pay a premium

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• The insurer to cover all declared risks

Correct Answer: B. Both parties to enter into the insurance contract in good faith Question 8 Which principle describes the sharing of loss by all members of a group?

• Contribution
• Subrogation
• Risk pooling
• Utmost good faith

Correct Answer: C. Risk pooling

Question 9 What is the principle of indemnity in insurance?

• Insuring only high risk individuals
• Providing benefits beyond the actual loss
• Compensation for the loss no more than the insured Economic loss
• Sharing risk among policyholders

Correct Answer: C. Compensation for the loss no more than the insured Economic loss Question 10 [Question missing from source text]

• Changing the terms of an insurance policy
• Continuing an existing insurance policy term without changes
• Canceling an existing insurance policy
• Increasing the premium of an insurance policy
• Non payment of premium

Correct Answer: B. Continuing an existing insurance policy term without changes