FAIA 221 Questions
Which of the following is not a qualification for obtaining a General Lines License?
A. Florida Resident
B. Not for "controlled business"
C. Successfully complete a 200 hour department approved cou
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FAIA 221 Questions
Which of the following is not a qualification for obtaining a General Lines License?
A. Florida Resident
B. Not for "controlled business"
C. Successfully complete a 200 hour department approved course
D. Six months "all-lines" experience as a full time employee - ✔✔D. Six months "all-lines"
experience as a full time employee
All of the following are duties and functions of the Department of Financial Services EXCEPT:
A. approve and review forms, ruled and rates
B. investigate charges of unethical conduct
C. develop insurance - related legislation
D.approve the issuance of licenses to agents - ✔✔C. develop insurance - related legislation
Which of the following is the best definition of risk as related to insurance?
A. Chance of financial loss or gain
B. Perils insured against
C. Speculation of financial gain
D. Chance of financial loss - ✔✔D. Chance of financial loss
All of the following describe a binder EXCEPT:
A. Can be oral or written
B. Cannot be cancelled
C. Places insurance into effect prior to the policy issuance
D. Affords the same coverage as the policy - ✔✔B. Cannot be cancelled
Insurance is a contract of indemnity. Which of the following best illustrates the concept of
indemnity?
A. Replacing a 5 year-old sofa that is damaged with a new one
B. Paying an insured $10,000 for a painting that is specifically scheduled
C. Paying an insured the actual cash value of a television that is 3 years old
D. Paying a building loss under the Florida Valued Policy Law - ✔✔C. Paying an insured the
actual cash value of a television that is 3 years old
All of the following describe insurable interest EXCEPT:
A. Establishes the limit of the policy's response
B. Shows a similarity between insurance and wagering
C. Must exist at the time of a loss
D. The insured would suffer an economic loss - ✔✔B. Shows a similarity between insurance and
wagering
An insured is carrying a policy for "fire only" on a dwelling and its contents. A small fire starts
in the kitchen and in the process of putting out the fire; some of the contents of the dwelling are
damaged by the water from the fire hoses. The damage of the contents would be covered by the
policy because:
A. It was a physical hazard
B. Fire was the proximate cause
C. Water damage included in the definition of "fire"
D. Fire only policies contain a broad form fire provision
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