Webce life health Florida Exam All Possible Questions and Answers with complete solution

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? -risk avoidance Which of the following is most likely to be an insurable risk? - 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? - risk transfer The possibility that a fire will damage Fay's store building is a pure risk. Why? - 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 - 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? - 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? - 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? - Rule in Tom's favorEvangeline 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? - 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? - 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? - 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. - 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? - difference-in-conditions policy