ACA STATE FARM EXAM WITH DETAILED
QUESTIONS AND VERIFIED ANSWERS
All of the following describe insurable interest, except:
A. Insurable Interest must have existed at the time of the loss.
B. Insur interest is required for insurance to respond.
C. Demonstrate the similarities between insurance and wagering.
D. The insured would incur an economic loss. - ANSWER Show a connection
between insurance and gambling.
An insurance policy is a contract containing all of the following features, except
A. This is a personal contract.
B. The parties have unequal power, and any ambiguities or imprecise phrasing are
handled in favor of the insured because it is an adhesion contract.
C. Conditions are imposed on both the insurer and the insured.
D. An insurance contract contains no indemnity clause. - D. Indemnity is not
included in an insurance contract.
An insurance contract may have a "gray area" or an ambiguity, which is normally
decided in favor of the insured, because insurance policies are contracts of
A.Indemnity
B.Cohesion
C.Adhesion
D.Conditions: ANSWER C.Adhesion
,If someone insured sells his car to someone else, the buyer may not be able to
obtain the insured's insurance. This is because the insurance contract consists of:
A. Personal nature.
B.Indemnity
C.Adhesion
D. Actual financial value - ANSWER A. Personal nature.
Strict or absolute liability.
A.This applies to school systems.
B.There must be a failure to use "due care."
C.considers the activities of a wise individual.
D.is determined by law or statute. - ANSWER D. is determined by law or statute.
Jack and Connie, both 50 years old and of sound mind, agree to let Jack burn down
Connie's house for $10,000. What part of a legitimate contract is missing?
A.Legal purpose.
B.Competitive parties
C.Consideration
D.Parties' agreement - ANSWER A. Legal purpose
Insurable risks include the following:
A. Speculative Risk
B. Pure risk.
,C.Both A and B.
D. None of the above - ANSWER B: Pure risk
Insurance that covers the obligation for loss deriving from the policyholder's fault
resulting in payment to a party other than the insured is:
A. Not included in Florida insurance coverage.
B.Fourth-party claims
C. Standard Property Insurance
D.Liability: ANSWER
The principle of insurance is to restore the insured to the same economic position
as before the covered loss happened.
A.dhesion
B. Actual Cash Value
C.Indemnity
D.Severability - Answer: C.Indemnity.
Liability limits can be expressed as:
A. Aggregate Limit
B. Split Limit
C. Single Limit
, Answer: D.All of the aforementioned.
An insured carries an SPLIT limit liability policy with 10/20/10 limits. He owes the
following people culpability physical injury claims: Passenger 1 = $12,000,
Passenger 2 = $10,000, and Passenger 3 = $18,000. How much liability insurance
will his coverage provide for these claims?
A$ 10,000
B$ 20,000
C$ 30,000
D$40,000 - ANSWER: B$20,000
If a lender has an insurable interest in a car because of the money given to finance
the auto, the lender will show on the policy as the
A.Lessee
B. Loss payee
C.Mortgagor
D. Mortgagee - ANSWER B. Loss payee
Turning over partially damaged goods to the insurance company and requesting
that they pay for a total loss is termed
A. Moral hazard.
B.Abandonment
C.Conveyance
QUESTIONS AND VERIFIED ANSWERS
All of the following describe insurable interest, except:
A. Insurable Interest must have existed at the time of the loss.
B. Insur interest is required for insurance to respond.
C. Demonstrate the similarities between insurance and wagering.
D. The insured would incur an economic loss. - ANSWER Show a connection
between insurance and gambling.
An insurance policy is a contract containing all of the following features, except
A. This is a personal contract.
B. The parties have unequal power, and any ambiguities or imprecise phrasing are
handled in favor of the insured because it is an adhesion contract.
C. Conditions are imposed on both the insurer and the insured.
D. An insurance contract contains no indemnity clause. - D. Indemnity is not
included in an insurance contract.
An insurance contract may have a "gray area" or an ambiguity, which is normally
decided in favor of the insured, because insurance policies are contracts of
A.Indemnity
B.Cohesion
C.Adhesion
D.Conditions: ANSWER C.Adhesion
,If someone insured sells his car to someone else, the buyer may not be able to
obtain the insured's insurance. This is because the insurance contract consists of:
A. Personal nature.
B.Indemnity
C.Adhesion
D. Actual financial value - ANSWER A. Personal nature.
Strict or absolute liability.
A.This applies to school systems.
B.There must be a failure to use "due care."
C.considers the activities of a wise individual.
D.is determined by law or statute. - ANSWER D. is determined by law or statute.
Jack and Connie, both 50 years old and of sound mind, agree to let Jack burn down
Connie's house for $10,000. What part of a legitimate contract is missing?
A.Legal purpose.
B.Competitive parties
C.Consideration
D.Parties' agreement - ANSWER A. Legal purpose
Insurable risks include the following:
A. Speculative Risk
B. Pure risk.
,C.Both A and B.
D. None of the above - ANSWER B: Pure risk
Insurance that covers the obligation for loss deriving from the policyholder's fault
resulting in payment to a party other than the insured is:
A. Not included in Florida insurance coverage.
B.Fourth-party claims
C. Standard Property Insurance
D.Liability: ANSWER
The principle of insurance is to restore the insured to the same economic position
as before the covered loss happened.
A.dhesion
B. Actual Cash Value
C.Indemnity
D.Severability - Answer: C.Indemnity.
Liability limits can be expressed as:
A. Aggregate Limit
B. Split Limit
C. Single Limit
, Answer: D.All of the aforementioned.
An insured carries an SPLIT limit liability policy with 10/20/10 limits. He owes the
following people culpability physical injury claims: Passenger 1 = $12,000,
Passenger 2 = $10,000, and Passenger 3 = $18,000. How much liability insurance
will his coverage provide for these claims?
A$ 10,000
B$ 20,000
C$ 30,000
D$40,000 - ANSWER: B$20,000
If a lender has an insurable interest in a car because of the money given to finance
the auto, the lender will show on the policy as the
A.Lessee
B. Loss payee
C.Mortgagor
D. Mortgagee - ANSWER B. Loss payee
Turning over partially damaged goods to the insurance company and requesting
that they pay for a total loss is termed
A. Moral hazard.
B.Abandonment
C.Conveyance
