FLORIDA PERSONAL LINES
ASSESSMENT FULL SOLUTION
◉ When an individual faces the risk of economic loss in the event of
property damage, this indicates which of the following?
A.) Limit of recovery
B.) Merit rating
C.) Insurable interest
D.) Subrogation. Answer: C.) Insurable interest
◉ When writing an application for car insurance, Producer M asked
the client, B, if B had been convicted of driving while intoxicated
(DWI) in the past 10 years. B answered no, even though B had been
convicted of a DWI last year. B is guilty of which of the following?
A.) Waiver
B.) Unilateral statement
C.) Representation
D.) Misrepresentation. Answer: D.) Misrepresentation
,◉ Which of the following is not a qualification to apply for an
insurance license in Florida?
A.) Must have a high school diploma or GED
B.) Must be at least 18 years old
C.) Legal alien with U.S. work authorization
D.) U.S. Citizen. Answer: A.) Must have a high school diploma or GED
◉ The DP-3 provides what coverage for damage to the insured's
dwelling due to a power failure when lightning strikes a power
transformer 2 miles away?
A.) Coverage A amount
B.) No coverage
C.) 10% of Coverage C
D.) 10% of Coverage A. Answer: B.) No coverage
◉ Which of the following is a legal liability imposed without
demonstrated negligence?
A.) Proximate liability
B.) Direct liability
C.) Contingent liability
,D.) Absolute liability. Answer: D.) Absolute liability
◉ Which of the following vehicles is not considered an uninsured
motor vehicle under Part C of a Personal Auto policy?
A.) A vehicle that disappears after a collision and cannot be
identified
B.) A vehicle insured for less than the state's minimum required
liability coverage
C.) A vehicle owned by the government
D.) A vehicle with liability insurance whose coverage is denied by its
insurer. Answer: C.) A vehicle owned by the government
◉ Which of the following statements is false regarding Certificates of
Authority?
A.) Any person who acts as an insurer, transacts insurance, or
otherwise engages in insurance activities in this state without a
Certificate of Authority commits a misdemeanor
B.) No person can act as an insurer unless authorized by a Certificate
of Authority
C.) A Certificate of Authority is not required for authorized
reinsurance transactions
, D.) A Certificate of Authority is not required to transact surplus lines
insurance. Answer: A.) Any person who acts as an insurer, transacts
insurance, or otherwise engages in insurance activities in this state
without a Certificate of Authority commits a misdemeanor
◉ Part B of a Personal Auto policy would pay for which of the
following expenses?
A.) Loss of income after an insured is slandered
B.) Funeral service expenses incurred by an insured
C.) An insured's pain and suffering
D.) Cost of an ambulance after a third party is injured in an accident
caused by an insured. Answer: B.) Funeral service expenses incurred
by an insured
◉ The loss of property when the cause of loss is not known is
considered:
A.) Burglary
B.) Robbery
C.) Theft
D.) Mysterious disappearance. Answer: D.) Mysterious
disappearance
ASSESSMENT FULL SOLUTION
◉ When an individual faces the risk of economic loss in the event of
property damage, this indicates which of the following?
A.) Limit of recovery
B.) Merit rating
C.) Insurable interest
D.) Subrogation. Answer: C.) Insurable interest
◉ When writing an application for car insurance, Producer M asked
the client, B, if B had been convicted of driving while intoxicated
(DWI) in the past 10 years. B answered no, even though B had been
convicted of a DWI last year. B is guilty of which of the following?
A.) Waiver
B.) Unilateral statement
C.) Representation
D.) Misrepresentation. Answer: D.) Misrepresentation
,◉ Which of the following is not a qualification to apply for an
insurance license in Florida?
A.) Must have a high school diploma or GED
B.) Must be at least 18 years old
C.) Legal alien with U.S. work authorization
D.) U.S. Citizen. Answer: A.) Must have a high school diploma or GED
◉ The DP-3 provides what coverage for damage to the insured's
dwelling due to a power failure when lightning strikes a power
transformer 2 miles away?
A.) Coverage A amount
B.) No coverage
C.) 10% of Coverage C
D.) 10% of Coverage A. Answer: B.) No coverage
◉ Which of the following is a legal liability imposed without
demonstrated negligence?
A.) Proximate liability
B.) Direct liability
C.) Contingent liability
,D.) Absolute liability. Answer: D.) Absolute liability
◉ Which of the following vehicles is not considered an uninsured
motor vehicle under Part C of a Personal Auto policy?
A.) A vehicle that disappears after a collision and cannot be
identified
B.) A vehicle insured for less than the state's minimum required
liability coverage
C.) A vehicle owned by the government
D.) A vehicle with liability insurance whose coverage is denied by its
insurer. Answer: C.) A vehicle owned by the government
◉ Which of the following statements is false regarding Certificates of
Authority?
A.) Any person who acts as an insurer, transacts insurance, or
otherwise engages in insurance activities in this state without a
Certificate of Authority commits a misdemeanor
B.) No person can act as an insurer unless authorized by a Certificate
of Authority
C.) A Certificate of Authority is not required for authorized
reinsurance transactions
, D.) A Certificate of Authority is not required to transact surplus lines
insurance. Answer: A.) Any person who acts as an insurer, transacts
insurance, or otherwise engages in insurance activities in this state
without a Certificate of Authority commits a misdemeanor
◉ Part B of a Personal Auto policy would pay for which of the
following expenses?
A.) Loss of income after an insured is slandered
B.) Funeral service expenses incurred by an insured
C.) An insured's pain and suffering
D.) Cost of an ambulance after a third party is injured in an accident
caused by an insured. Answer: B.) Funeral service expenses incurred
by an insured
◉ The loss of property when the cause of loss is not known is
considered:
A.) Burglary
B.) Robbery
C.) Theft
D.) Mysterious disappearance. Answer: D.) Mysterious
disappearance
