FLORIDA LICENSING ACTUAL EXAM WITH 100% CORRECT ANSWERS

FLORIDA LICENSING ACTUAL EXAM WITH 100% CORRECT ANSWERS All of the following are ways that liability limits can be expressed except: • PIP Limit • Aggregate Limit • Split Limit • Single Limit - ANSWER-PIP Limit An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance will his policy pay for these claims? - ANSWER-$20,000 If a lender has an insurable interest in an auto, because of the money loaned to finance the purchase, the lender would appear on the policy as the: • Lessee • Loss Payee • Mortgagor • Mortgagee - ANSWER-Loss Payee All of the following describe insurable interest EXCEPT: • It must exist at the time of the loss • It must exist for insurance to respond • Shows a similarity between insurance and wagering • The insured would suffer an economic loss - ANSWER-• Shows a similarity between insurance and wagering An Insurance Policy is a contract with all the following characteristics, EXCEPT: • It is a personal contract • parties are of unequal power with ambiguities or unclear working resolved in favor of the insured because it is a contract of adhesion • Indemnity is not part of an insurance contract • There are conditions imposed on both the insurer and insured - ANSWER-• Indemnity is not part of an insurance contract An insurance contract which may contain a "gray area" or an ambiguity that is generally resolved in favor of the insured because insurance is a contract of: - ANSWER-Adhesion If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of: - ANSWER-Personal nature Strict or absolute liability - ANSWER-Is assigned by law or statute Jack and Connie agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing? - ANSWER-Legal Purpose Risks that are insurable are - ANSWER-Pure risks Insurance that covers the responsibility for loss arising out of negligence that results in payment to a party other than the insured is: - ANSWER-Liability Insurance