THEBRIGHT EXAM SOLUTIONS 8/20/2024 8:37 PM
Webce life health Florida Exam Questions
With Correct Answers
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? - answer✔✔risk avoidance
Which of the following is most likely to be an insurable risk? - 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? -
answer✔✔risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? - 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 -
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? - 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? - 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?
- 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
, THEBRIGHT EXAM SOLUTIONS 8/20/2024 8:37 PM
had an insurable interest in the home at the time of the loss? - 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? - 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? - 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. - 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? - 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? - 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? - answer✔✔vandalism 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: - answer✔✔Perils
Which one of the following legally qualifies as an attractive nuisance? - answer✔✔An 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? - 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: - answer✔✔comparative negligence
, THEBRIGHT EXAM SOLUTIONS 8/20/2024 8:37 PM
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: - 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? -
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? - 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? -
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. - 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? - 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? - 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? - 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 - answer✔✔Tori is
Webce life health Florida Exam Questions
With Correct Answers
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? - answer✔✔risk avoidance
Which of the following is most likely to be an insurable risk? - 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? -
answer✔✔risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? - 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 -
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? - 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? - 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?
- 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
, THEBRIGHT EXAM SOLUTIONS 8/20/2024 8:37 PM
had an insurable interest in the home at the time of the loss? - 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? - 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? - 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. - 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? - 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? - 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? - answer✔✔vandalism 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: - answer✔✔Perils
Which one of the following legally qualifies as an attractive nuisance? - answer✔✔An 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? - 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: - answer✔✔comparative negligence
, THEBRIGHT EXAM SOLUTIONS 8/20/2024 8:37 PM
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: - 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? -
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? - 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? -
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. - 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? - 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? - 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? - 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 - answer✔✔Tori is
