Webce life health Florida Exam with 100% Correct Answers 2023

Webce life health Florida Exam Rory's parents offered to buy him a new car to take to college, but Rory turned them down because he was afraid the car would be stolen or damaged if he parked it on campus. In deciding not to own a car, what risk management technique did Rory employ? - Correct Answer-risk avoidance Which of the following is most likely to be an insurable risk? - Correct Answer-The chance that a fire will destroy a building Theodore pays an annual premium to the insurance company that covers many of the risks associated with Theodore's business. What risk management technique is Theodore using? - Correct Answer-risk transfer The possibility that a fire will damage Fay's store building is a pure risk. Why? - Correct Answer-It involves only the chance of a loss. Esther, an underwriter for QRS Insurance Company, is not able to provide the coverage requested in Benny's insurance application. Esther can reject the application, or she can - Correct Answer-Make a counteroffer When applying for a businessowners insurance policy, Brandy did not mention that hazardous and illegal activity that goes on in the backroom of her shop because she realized no insurer that knew about it would insure her business. What is Brandy's failure to disclose this activity considered? - Correct Answer-Concealment Haze's store has an automatic sprinkler system that will be activated by a fire. In exchange for the reduced fire insurance premium, she signs a document stating that the automatic sprinkler system will always be in operating condition. What is this statement? - Correct Answer-A Warranty Tom's insurance company wanted to deny Tom's claim based on an exclusion in Tom's policy, but Tom and his lawyer convinced the court that the exclusion was ambiguous and did not clearly apply to Tom's case. Because the policy is a contract of adhesion, what will the court do? - Correct Answer-Rule in Tom's favor Evangeline bought he home with 20 percent down payment and mortgage from Trevor Bank. She had not yet paid off the mortgage when the home was badly damaged in an explosion. Who had an insurable interest in the home at the time of the loss? - Correct Answer-both Evangeline and Trevor Bank For an insurer to pay a property or casualty claim, when must the policyholder have an insurable interest in the insured risk? - Correct Answer-At the time of the loss In the context of a property or casualty insurance policy, which of the following is considered to be personal property? - Correct Answer-Gas Grille An owner of a property or casualty insurance policy is required to have an insurable interest in the insured risk at the time of the. - Correct Answer-Loss of the insured property or occurrence of the insured event The building and personal property used in Greg's business are covered by an open perils property insurance policy, but he is concerned that the policy excludes coverage for the flood and earthquake losses. What might Greg be able to purchase to obtain flood and earthquake coverage? - Correct Answer-difference-in-conditions policy Elias's store is covered by a property insurance policy that provides named perils coverage. When Elias enters the store on Monday morning, he discovers that much of the merchandise was damaged over the weekend, and he submits a property insurance claim. Which of the following statements correctly describes the burden of proof with respect to this claim? - Correct Answer-Elias has the burden of proving that the damage was caused by a covered peril While Connie is out of town on an extended vacation, a group of teenagers break into her house, throw a beer party, and damage the interior. Connie's resulting property insurance claim will be covered if her policy covers what perils? - Correct Answervandalism or malicious mischief Elaine's property insurance policy lists and describes eight covered causes of loss. These causes of loss may also be referred to as: - Correct Answer-Perils Which one of the following legally qualifies as an attractive nuisance? - Correct AnswerAn unfenced swimming pool in Kris's backyard is used by neighborhood children while she is at work Rosalie was attacked by her neighbor's dog. As a result, she was hospitalized for ten days and spent another painful month at home recovering from her injuries. In addition to paying her an amount as compensation for her pain and suffering, the neighbor's insurer was required to pay for her medical expenses and lost wages. What is the money paid for Rosalie's lost wages considered? - Correct Answer-special damages Yesenia was seriously injured when Elbert's and Yesenia's cars collided at an intersection. A court determined that the accident was 60 percent Yesenia's fault, so Yesenia was entitled to recover only 40 percent of her damages from Elbert. The defense on which this court's determination was based involves: - Correct Answercomparative negligence Harding Paint Store mixed a gallon of paint with custom color Meghan requested. However, the store clerk failed to tighten the lid on the paint can, which came open while Megan was driving home with the can in her car. Harding was required to pay for the expensive damage to Megan's car that resulted from the paint spill under: - Correct Answer-tort law Coworkers who live near her residence ride to work in Felicia's car and help pay for her gas and other expenses. An exclusion in Felicia's auto insurance policy says it does not cover a vehicle while it is carrying persons for a fee but then seems to contradict that statement by saying the exclusion does not apply to a share-the-expense carpool. What is the apparent contradiction? - Correct Answer-an exception to an exclusion Victoria's full name appears on the declarations page of her insurance policy where she is the only person identified as a named insured. Within the body of the policy, what word or phrase refers specifically to Victoria? - Correct Answer-You Lucas's commercial property policy, like many other policies that cover buildings, contains an "Ordinance or Law" exclusion. What does this exclusion most likely deal with? - Correct Answer-extra expenses required to comply with current building codes when repairing damaged property Many endorsements are attached to Bettie's policy, If she examines them closely, she will probably find one or more endorsements that do all the following Except. - Correct Answer-Cancel the policy Joan owns the car that struck and injured a pedestrian, but she insists that the car was being driven at the time by her neighbor Kurt who took the car without her permission. An exclusion in Joan's policy precludes coverage for a driver that does not have permission to drive her car. The insurer's investigation uncovers evidence that supports Joan's position. Therefore, what will the insurer do? - Correct Answer-defend Joan against the pedestrian's claim at the insurer's expense Ralph's car has been damaged beyond repair, and Ralph's insurer pays him what the car was worth just before the accident. The insurer then takes possession of the car. What is the car considered in technical terms? - Correct Answer-Salvage When Chauncey lent Latasha money to buy a car, he insisted that he be listed as a loss payee on Latasha's auto insurance policy. What does the loss payable clause in Latasha's policy entitle Chauncey to? - Correct Answer-to be included in any claims payment Tori's young son drives his motorized toy car into a neighbor's child and knocks her down. Although Tori's homeowners insurance policy specifically excludes liability coverage for motorized vehicles, she learns that one of the recent changes her insurer introduced adds coverage for "toy cars." Tori's renewal premium will not change because other changes will reduce her coverage. Her current policy's liberalization clause provides that - Correct Answer-Tori is not entitled to benefit from the latest policy edition because it includes both broadenings and restrictions in coverage After receiving Shelton's claim that a car his policy covers has been stolen, his insurance policy obligates his insurer to do all the following EXCEPT: - Correct AnswerPay the claim Because he was watching his GPS instead of watching his driving, Gerry's car rearended the vehicle in front of him. It will cost $15,000 to repair that vehicle, and the two injured occupants of that vehicle are awarded damages in the amounts of $30,000 and $20,000, respectively. No-fault laws do not apply. Jerry's auto policy has combined single limits of $50,000. How much will his insurer pay? - Correct Answer-$50,000 Amie thought she was correctly following the cooking instructions when she put a frozen turkey into the turkey fryer, but the resulting fire destroyed her neighbor's wooden deck. After paying for the deck, the neighbor's insurer attempts to recover from Amie by exercising its right of: - Correct Answer-Subrogation Ivy's personal auto policy provides primary liability coverage with a $100,000 limit, while her personal umbrella policy provides excess coverage with a $1 million limit. If Ivy must pay $55,000 in damages because she is responsible for an auto accident, - Correct Answer-her personal auto policy will pay $55,000. When obtaining information about a claim, an adjuster is interested in. - Correct Answer-collecting information about the claim that is needed to resolve it To avoid the appearance of practicing law, a claims adjuster's communications with an insured should always be. - Correct Answer-limited to the wording of the policy An adjuster typically completes his or her initial investigation of a claim within how many days of being assigned the claim? - Correct Answer-15 During the first six months following the assignment of a claim, how often is an adjuster required to provide claim status reports? - Correct Answer-At the 30th, 90th, and 180th day after assignment Which of the following is a requirement to operate as an insurance agency in Florida? - Correct Answer-obtaining a license or registration from the state Sasha, Kendall, Adam, and Julio are licensed agents in Florida. The Department of Financial Services would NOT be able to suspend or revoke which agent's license for engaging in the following acts? - Correct Answer-Sasha, who sold insurance policies to family members and friends this year Adjusters, agents, and insurers must maintain records of their insurance transactions for at least how long? - Correct Answer-five years Jeff is a licensed insurance agent in both New York and Florida. He is was charged with embezzlement in New York, and pleaded guilty to the charge on March 1. He must notify the Florida Department of Financial Services of the charge within how many days? - Correct Answer-30 Octavio's home and personal property are insured under a Dwelling Property 3— Special Form (DP 00 01) or DP 3 dwelling policy. Which one of the following losses would this policy cover? - Correct Answer-A ceiling is damaged by water when a valve inside the upstairs toilet's tank breaks and fails to shut off, causing the tank to overflow. Angelina loves the little cottage in the woods where she and her cat reside but finds that she cannot buy a homeowners insurance policy on a building that can be replaced for less than $25,000. Angelina can probably get the coverage she desires by buying what kind of policy? - Correct Answer-a dwelling policy Cherie rents a hotel room because the temperatures in Cherie's all-electric home drop below freezing during an ice storm that downed power lines in the area causing a massive power outage. Because Cherie's Dwelling Property 3—Special Form (DP 00 01) or DP 3 policy covers additional living expenses, she makes a claim and then learns that - Correct Answer-the power failure exclusion precludes coverage for power failure originating away from her residence premises Hannah's off-campus home and its contents are insured under a dwelling policy that provides no theft coverage. If Hannah has the broad theft coverage endorsement added to her current policy, she still will not have coverage if - Correct Answer-her sorority sisters plot to remove the furniture from her house Every dwelling policy must include coverage against what peril? - Correct AnswerLightning What coverage that is automatically included in dwelling forms DP 2 and DP 3 is not also printed in the DP 1 basic form? - Correct Answer-Coverage E Although his wife wanted to save money and buy a DP 1 basic dwelling policy, Jerrold decided to purchase a DP 2 policy on his home and his personal property. Which of the following causes of loss does his DP 2 cover that would not also be covered if he had purchased a DP 1? - Correct Answer-weight of ice, snow, or sleet To reduce her insurance costs, Britney wants to replace her HO 3 homeowners policy with a standard dwelling policy. However, she reconsiders when she realizes that the premium for the policy she is considering does not include which of the following? - Correct Answer-liability and theft coverage Because she has sold her house, Josefa wants to stop the coverage on her homeowners insurance policy nine months before the end of the policy term and get a refund of the unused premium. What action must she take to end her coverage? - Correct Answer-Cancellation What does Section II of an Insurance Services Office, Inc. (ISO), homeowners policy provide? - Correct Answer-liability coverages Bernard's homeowners insurance policy makes several references to an "insured location." Which one of the following locations would not qualify as an "insured location"? - Correct Answer-Bernard's office in a downtown building owned by his employer Because Jasper's homeowners insurance policy includes sublimits or limited coverage on certain types of property he owns, Jasper buys a scheduled personal property endorsement under which he can specifically cover all the following items EXCEPT: - Correct Answer-his gun collection Dixie has been told that the business personal property coverage of her building and personal property commercial property form covers almost everything in her barbershop. However, what does it not cover? - Correct Answer-cash in the cash register Production at Wilfred's manufacturing plant was interrupted by a paint booth explosion. Wilfred paid some employees overtime to repair the damage and get the plant back into operation as soon as possible. The overtime pay costs less than the income he would have lost without the overtime work. Wilfred's business income insurance will cover the overtime pay if he had - Correct Answer-either the business income and extra expense coverage form or the business income coverage form without extra expense Graham is an architect. Various coverage extensions in Graham's building and personal property coverage form cover property in Graham's office that the form might not otherwise cover. Which of the following property items is not the subject of a coverage extension? - Correct Answer-Graham's dog Fido Haley's new law office is located in a commercial condominium unit she purchased. Which of the following forms would be appropriate for insuring Haley's property exposures? - Correct Answer-condominium commercial unit-owners coverage form Although she had been told that she was getting the broadest possible property coverage, Earlene is disappointed to discover that the special causes of loss form attached to a building and personal property coverage form has exclusions for all the following perils EXCEPT: - Correct Answer-Theft Which of the following forms is not an essential part of a complete commercial property policy that uses ISO forms? - Correct Answer-commercial general liability coverage form Saul wants to know what dollar limits apply to the property at each of the locations that are covered by his commercial property policy. Where can Saul find this information? - Correct Answer-the policy's declarations page Gerald's ISO commercial property policy might include any of the following causes of loss forms EXCEPT the: - Correct Answer-comprehensive causes of loss form In an Insurance Services Office, Inc. (ISO), business owners policy, where do the definitions appear? - Correct Answer-at the end of the property section and at the end of the liability section Which one of the following provisions is not found in the common policy conditions section of the Insurance Services Office, Inc. (ISO), business owners coverage form? - Correct Answer-property loss settlement A business owners policy combines coverages that might otherwise be written on all the following types of forms EXCEPT: - Correct Answer-workers compensation Edith would like to insure the office building she owns under a businessowners policy (BOP). According to ISO rules, Edith's building is eligible for coverage under a BOP if it - Correct Answer-is five stories tall with 80,000 total square feet in area According to Insurance Services Office, Inc. (ISO), rules, which one of the following businesses would be eligible for coverage under a businessowners policy (BOP)? - Correct Answer-Wilbur's 24/7 Convenience Store Only certain types of businesses are eligible for a businessowners policy (BOP). According to Insurance Services Office, Inc. (ISO) rules, BOP eligibility is based on the business's: - Correct Answer-size and type Laurie's businessowners insurance application is a little short on details. It merely indicates that Laurie wants coverage on her storefront business. Laurie's storefront business is probably eligible for coverage unless it is a(n): - Correct Answer-arcade with pinball machines and video games According to the Insurance Services Office, Inc. (ISO), businessowners policy (BOP) eligibility rules, what type of business is ineligible for a BOP regardless of its size? - Correct Answer-a parking garage The building housing Kaitlin's Antique Shop is as old as her merchandise, and she is not sure it will stand much longer. The building is insured under a businessowners policy (BOP) that includes additional coverage for collapse that will apply if the building - Correct Answer-falls down because of an insured peril Lara's businessowners policy (BOP) shows a $500,000 limit on the covered building. What is the maximum amount she can recover for complete destruction of the building by a covered peril when the policy has been in force exactly six months? - Correct Answer-$520,000 Alex's Diner is covered under an Insurance Services Office, Inc. (ISO), businessowners policy (BOP) with no endorsements. The policy's declarations page includes limits for the building coverage and for the business personal property coverage. What kind of perils coverage does Alex's policy provide? - Correct Answer-open perils coverage on the building and personal property Clare, a convenience store owner, should have been suspicious when a customer asked her to make change from a $100 bill when he bought a pack of cigarettes. Now the bank tells her the $100 bill is counterfeit. Does Clare's businessowners policy (BOP) provide any coverage for this loss? - Correct Answer-Yes, because the BOP provides up to $1,000 coverage for loss due to the insured having accepted counterfeit money For four years, Randolph has bought grain in bulk and packaged it for sale in pet stores. During the third year, pet owners complained that his grain sickened their pets. Randolph then discovered that he had been using seed grain that was treated with a poison. Randolph had BOPs during each of these four years. Which BOP(s) cover(s) his liability for the resulting products liability claims? - Correct Answer-The first three BOPs; they were in effect from the time the damage began until the time he discovered it Dora signed Shaun's standard contract in which she agreed to pay Shaun to clean the terra-cotta tiles in her home's foyer. Shaun did poor work, leaving Dora's tiles in worse shape than they were to begin with. Dora sued Shaun to recover damages for the ruined tiles. According to Shaun's businessowners policy (BOP), - Correct Answer-no coverage applies to the part of real property Shaun worked on if the damage was caused by his work In the normal course of business, Therese signs many contracts. Which one of the following qualifies as an insured contract as defined in Therese's businessowners policy (BOP)? - Correct Answer-the lease she signed in renting the space for her business Josephine's novelty store is protected by a businessowners policy (BOP) that covers her building and business personal property. In what situation will the personal and advertising injury liability coverage of Josephine's BOP cover a claim? - Correct Answer-Josephine detains a suspected shoplifter who turns out to be innocent After learning that an imposter had run up bills by pretending to represent Barry's business, Barry was glad that his businessowners policy (BOP) included an identity fraud expense coverage endorsement that covered all the following related losses EXCEPT - Correct Answer-the cost of merchandise the identity thief ordered and charged to Barry Which of the following losses could be covered by the utility services—direct damage endorsement of the businessowners policy (BOP)? - Correct Answer-physical damage to inventory held for sale-The utility services Oscar rents a car for a business trip and runs into a pedestrian who was crossing the street in a marked crosswalk. Oscar's businessowners policy (BOP) includes a hired auto and nonowned auto liability endorsement. The endorsement's schedule indicates coverage for hired autos but not nonowned autos. The pedestrian wants Oscar to pay her medical bills. Oscar's BOP - Correct Answer-covers this loss because the endorsement applies to a hired auto. Cathy's business does not own an auto, and she never has a reason to rent one. When necessary, Cathy or one of her employees uses a personal car to run business errands. Why should Cathy's businessowners policy (BOP) include the hired auto and nonowned auto liability endorsement? - Correct Answer-The nonowned auto coverage will protect Cathy's business if an employee has an accident while using his or her personal car on company business. After a flood severely damaged Serena's home, floodplain management ordinances required her to reconstruct it at a higher elevation. Some or all of Serena's expenses to comply with these ordinances may be available from what kind of coverage from her National Flood Insurance Policy? - Correct Answer-increased cost of compliance coverage Karina owns the four homes listed below. Which one of them is not eligible for flood coverage under the NFIP's dwelling form? - Correct Answer-The eight As a result of flood damage to his store, Burt was out of business for several months, lost income, and incurred additional expenses to comply with a floodplain management ordinance requiring him to relocate the store to a higher elevation. Under some circumstances, Burt's National Flood Insurance Policy might pay or reimburse him for - Correct Answer-the increased cost of complying with floodplain management ordinance Although the National Flood Insurance Policy (NFIP) is a single-peril policy that covers only flood, the peril as defined includes flooding of the insured's property and at least one other property from all the following causes EXCEPT: - Correct Answer-a broken water main Which one of the following is not one of the three standard flood insurance policies available from the National Flood Insurance Program? - Correct Answerbusinessowners form Amelia owns four homes. Which one of them is eligible for flood coverage under the NFIP's general property form? - Correct Answer-the eight-unit apartment building she bought as an investment Marlene owns a small store with a replacement cost value of $500,000 and contents valued at $250,000. What are the maximum limits of insurance Marlene can purchase under a standard flood policy? - Correct Answer-$500,000 on the building and $500,000 on the contents