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? - CORRECT ANSWER risk avoidance
Which of the following is most likely to be an insurable risk? - CORRECT
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? - CORRECT ANSWER risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? -
CORRECT 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 - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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 had an insurable interest in the home at the time of
the loss? - CORRECT 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? - CORRECT 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? - CORRECT 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. - CORRECT 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? - CORRECT 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? - CORRECT 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? -
CORRECT 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: - CORRECT ANSWER Perils
Which one of the following legally qualifies as an attractive nuisance? - CORRECT
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? - CORRECT 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: - CORRECT
ANSWER 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: - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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. -
CORRECT 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? - CORRECT
ANSWER defend Joan against the pedestrian's claim at the insurer's expense
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? - CORRECT ANSWER risk avoidance
Which of the following is most likely to be an insurable risk? - CORRECT
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? - CORRECT ANSWER risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? -
CORRECT 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 - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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 had an insurable interest in the home at the time of
the loss? - CORRECT 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? - CORRECT 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? - CORRECT 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. - CORRECT 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? - CORRECT 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? - CORRECT 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? -
CORRECT 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: - CORRECT ANSWER Perils
Which one of the following legally qualifies as an attractive nuisance? - CORRECT
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? - CORRECT 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: - CORRECT
ANSWER 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: - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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. -
CORRECT 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? - CORRECT
ANSWER defend Joan against the pedestrian's claim at the insurer's expense
