Florida 4-40 Exam 2024 Questions with
Complete Answers
When an applicant's credit score is used for insurance underwriting: - ANSWER-The
applicant has a legal right to disclosure.
Intentionally caused losses come under which property insurance concept -
ANSWER-Moral Hazard
The failure of the insured to reveal a known fact to the insurer, which would have had
an adverse effect on the policy being issued is: - ANSWER-Concealment
Which of the following best describes the purpose of the coinsurance provision on a
property insurance policy? - ANSWER-Te keep premiums reasonable for fully-
insured policyholders by requiring under-insured policyholders to pay a percentage
of their own losses out of pocket.
Debra is a 4-40 CSR who gets married. As a result, she changes her last name and
residence address. She must notify the Department of Financial Services of the
change on name and address within: - ANSWER-30 days
A civil wrong, which for insurance purposes must be caused by negligence refers to
which of these: - ANSWER-Tort
"The time limit within which a legal right must be exercised" describes which of the
following? - ANSWER-Statute of limitations
Insurance where payment is made on behalf of the insured to another party is called:
- ANSWER-liability coverage
The insurance provision that provides lower insurance rates for insureds who insure
at levels close to the value of property, thus getting insurance coverage closer to
property values is called: - ANSWER-coinsurance
A syndicate composed of all licensed companies in Florida which write auto
insurance is correctly called which: - ANSWER-FAJUA
Fill in the blanks: Property insurance pays ________, while liability insurance pays
________. - ANSWER-The insured or a named interest / a third party
Ethical conduct requires which: - ANSWER-Licensee puts the public's interest first
If you are 20% at fault for $10,000 of damages, you can be held legally liable for how
much: - ANSWER-$2,000
, If a person is forced to give up their possessions at knife point, it is most accurately
called: - ANSWER-Robbery
Under the CFO, the Department of Financial Services has a duty to investigate
which: - ANSWER-That an applicant is qualified to write and service Property and
Casualty Insurance. (OR) Whether applicants for an insurance license are qualified.
Taking property by violence or threat of it refers to: - ANSWER-Robbery
A natural occurrence, unpredictable and not preventable by man defines: -
ANSWER-Act of God
Which of the following is covered under Homeowners policy, Section II: - ANSWER-
Motor vehicle in dead storage.
Company sending Notice of non-renewal to Homeowners insured. How many days
advance notice? - ANSWER-120
Which of the following describes a coverage available without an endorsement on an
HO policy: - ANSWER-Fire legal liability
A car runs into the neighbourhood association's recreation room. HOA members are
each billed $1,750. One of the members turns in a Homeowner's claim. Assuming
default limits, Homeowner's policy will pay: - ANSWER-$1,000
Which of the following is not covered under Homeowners policy, Section II: -
ANSWER-Four-wheeler used off premises to visit in neighbourhood
All of the following would be eligible for the Dwelling program EXCEPT: - ANSWER-
5-6 family dwellings
There is an auto insurance coverage that pays the insured only if an at-fault party
injures the insured without supplying sufficient insurance to cover the injuries
caused. This coverage is called: - ANSWER-Uninsured / Underinsured Motorist
coverage.
Under an HO-3, an insured will receive replacement cost coverage on a loss to the
dwelling if: - ANSWER-the insured carries a limit equal to or greater than 80% of the
replacement cost of the dwelling
Ms. Rhinehart has a Personal Auto Policy with liability limits of $100,000. If she has
an accident and is found to be negligent, how much would her policy pay if there was
a $120,000 judgement and $32,000 in defence costs? - ANSWER-$132,000
A Dwelling Policy Basic Form can be characterized as: - ANSWER-Limited named
perils/ACV
Joe has a Personal Auto Policy (PAP). He works in a garage as a mechanic. While
test driving a customer's car, Joe has an at-fault accident. Joe's PAP will: -
ANSWER-Not respond
Complete Answers
When an applicant's credit score is used for insurance underwriting: - ANSWER-The
applicant has a legal right to disclosure.
Intentionally caused losses come under which property insurance concept -
ANSWER-Moral Hazard
The failure of the insured to reveal a known fact to the insurer, which would have had
an adverse effect on the policy being issued is: - ANSWER-Concealment
Which of the following best describes the purpose of the coinsurance provision on a
property insurance policy? - ANSWER-Te keep premiums reasonable for fully-
insured policyholders by requiring under-insured policyholders to pay a percentage
of their own losses out of pocket.
Debra is a 4-40 CSR who gets married. As a result, she changes her last name and
residence address. She must notify the Department of Financial Services of the
change on name and address within: - ANSWER-30 days
A civil wrong, which for insurance purposes must be caused by negligence refers to
which of these: - ANSWER-Tort
"The time limit within which a legal right must be exercised" describes which of the
following? - ANSWER-Statute of limitations
Insurance where payment is made on behalf of the insured to another party is called:
- ANSWER-liability coverage
The insurance provision that provides lower insurance rates for insureds who insure
at levels close to the value of property, thus getting insurance coverage closer to
property values is called: - ANSWER-coinsurance
A syndicate composed of all licensed companies in Florida which write auto
insurance is correctly called which: - ANSWER-FAJUA
Fill in the blanks: Property insurance pays ________, while liability insurance pays
________. - ANSWER-The insured or a named interest / a third party
Ethical conduct requires which: - ANSWER-Licensee puts the public's interest first
If you are 20% at fault for $10,000 of damages, you can be held legally liable for how
much: - ANSWER-$2,000
, If a person is forced to give up their possessions at knife point, it is most accurately
called: - ANSWER-Robbery
Under the CFO, the Department of Financial Services has a duty to investigate
which: - ANSWER-That an applicant is qualified to write and service Property and
Casualty Insurance. (OR) Whether applicants for an insurance license are qualified.
Taking property by violence or threat of it refers to: - ANSWER-Robbery
A natural occurrence, unpredictable and not preventable by man defines: -
ANSWER-Act of God
Which of the following is covered under Homeowners policy, Section II: - ANSWER-
Motor vehicle in dead storage.
Company sending Notice of non-renewal to Homeowners insured. How many days
advance notice? - ANSWER-120
Which of the following describes a coverage available without an endorsement on an
HO policy: - ANSWER-Fire legal liability
A car runs into the neighbourhood association's recreation room. HOA members are
each billed $1,750. One of the members turns in a Homeowner's claim. Assuming
default limits, Homeowner's policy will pay: - ANSWER-$1,000
Which of the following is not covered under Homeowners policy, Section II: -
ANSWER-Four-wheeler used off premises to visit in neighbourhood
All of the following would be eligible for the Dwelling program EXCEPT: - ANSWER-
5-6 family dwellings
There is an auto insurance coverage that pays the insured only if an at-fault party
injures the insured without supplying sufficient insurance to cover the injuries
caused. This coverage is called: - ANSWER-Uninsured / Underinsured Motorist
coverage.
Under an HO-3, an insured will receive replacement cost coverage on a loss to the
dwelling if: - ANSWER-the insured carries a limit equal to or greater than 80% of the
replacement cost of the dwelling
Ms. Rhinehart has a Personal Auto Policy with liability limits of $100,000. If she has
an accident and is found to be negligent, how much would her policy pay if there was
a $120,000 judgement and $32,000 in defence costs? - ANSWER-$132,000
A Dwelling Policy Basic Form can be characterized as: - ANSWER-Limited named
perils/ACV
Joe has a Personal Auto Policy (PAP). He works in a garage as a mechanic. While
test driving a customer's car, Joe has an at-fault accident. Joe's PAP will: -
ANSWER-Not respond
