WEBCE LIFE HEALTH FLORIDA EXAM WITH
QUESTIONS AND ANSWERS (VERIFIED ANSWERS
GRADED A+) LATEST UPDATE
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? - ...(ANSWERS)....risk avoidance
Which of the following is most likely to be an insurable risk? - ...(ANSWERS)....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? - ...(ANSWERS)....risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? -
...(ANSWERS)....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 - ...(ANSWERS)....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? -
...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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. - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? -
...(ANSWERS)....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: - ...(ANSWERS)....Perils
Which one of the following legally qualifies as an attractive nuisance? -
...(ANSWERS)....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? -
...(ANSWERS)....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: -
...(ANSWERS)....comparative 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: - ...(ANSWERS)....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? - ...(ANSWERS)....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
QUESTIONS AND ANSWERS (VERIFIED ANSWERS
GRADED A+) LATEST UPDATE
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? - ...(ANSWERS)....risk avoidance
Which of the following is most likely to be an insurable risk? - ...(ANSWERS)....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? - ...(ANSWERS)....risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? -
...(ANSWERS)....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 - ...(ANSWERS)....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? -
...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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. - ...(ANSWERS)....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? - ...(ANSWERS)....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? - ...(ANSWERS)....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? -
...(ANSWERS)....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: - ...(ANSWERS)....Perils
Which one of the following legally qualifies as an attractive nuisance? -
...(ANSWERS)....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? -
...(ANSWERS)....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: -
...(ANSWERS)....comparative 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: - ...(ANSWERS)....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? - ...(ANSWERS)....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
