FLORIDA 4-40 CUSTOMER REPRESENTATIVE (CIR)
LICENSE – ENGLISH
Jesse's home is worth $200,000 and he has a homeowners policy with a $160,000 limit.
After a covered loss, Jesse is left with a total of $10,000 in damages. Assuming the
insurer requires the standard 80% level of insurance for coinsurance purposes, and
ignoring any deductibles, how much will Jesse receive in indemnification? - Answers-
10,000
A power surge sparks a small electrical fire in an office building. The electrical fire
triggers the automatic sprinkler system. The water from the sprinklers soaks the carpets
and shorts-out all the computers, causing thousands of dollars in damage. What is the
proximate cause of the loss? - Answers-The power surge
Which of the following statements is NOT true of an insurance adjuster? - Answers-An
insurance adjuster receives her authority to sell products on behalf of the insurer
through a written contract.
Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities
due to rising flood waters in his neighborhood. It takes a month before Sam is allowed
to come back to his home. During this time, he has spent $3,000 in hotel expenses, on
top of his monthly mortgage payment of $850. When he files a claim, how much will
Sam receive under Coverage D - Loss of Use? - Answers-$0
Anton is purchasing homeowner's insurance for his new house. He wants to make sure
his policy offers the BEST coverage available. Which policy should Anton choose? -
Answers-HO-5
Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks
down Sally's back door to get into her kitchen for a snack. When Sally comes home to
find the damage, she files a claim with her insurance company. Will the damage to
Sally's home be covered, and why or why not? - Answers-Yes. The HO-3 is an open-
peril policy, without an exclusion for wildlife.
John moved out of his house and put it up for sale three months ago. While he was
waiting for the house to sell, John's plumbing pipes froze and burst in the icy
temperatures, which eventually led to water damaging the cabinetry and hardwood
floors. Which of the following statements would most likely be TRUE? - Answers-
Although John's house was still covered under an HO-3, the damage would not be
covered because he didn't shut off the water supply.
Craig has an HO-3 policy covering his primary residence with a Coverage A limit of
$250,000, Coverage B limit of $25,000, and a Coverage C limit of $150,000. Craig also
has a cabin on the lake, which was burglarized. The thieves stole much of the cabin's
, contents, for a total loss of $18,500. Ignoring any deductibles, how much will Craig's
HO-3 policy pay for this claim? - Answers-$15,000
Which of the following is TRUE concerning a Business Owners Policy? - Answers-A
business owners policy offers liability protection.
Liability coverage in a BOP is provided on: - Answers-an occurrence basis, only.
Samantha, an agent for NED Insurance, routinely misrepresents policy provisions or
fails to bring them up at all in her sales discussions with potential clients in an effort to
make more sales. All of the following statements are likely true, EXCEPT: - Answers-
Samantha is fulfilling her fiduciary duty to NED Insurance by selling more policies.
After her business suffered damage in a fire, Jane filed a claim with Acme Insurance,
which dispatched Bob to adjust it, even though he was not allowed to adjust commercial
claims. He investigated Jane's losses and submitted his estimate to Acme Insurance,
which issued her a settlement check based on that estimate. Bob had _______ because
Acme Insurance accepted his estimate and paid Jane's claim. - Answers-apparent
authority
Which of the following was NOT a major benefit of The My Safe Florida Home
Program? - Answers-Disaster preparedness education
Diana is insured under a DP-2 policy with the following coverage limits: Coverage A -
$150,000, Coverage B - $15,000, and Coverage C - $25,000. She and her fiancé have
planned a destination wedding, but their hotel catches fire shortly after their arrival.
Smoke from the fire damages all of their belongings, including Diana's $4,000 wedding
dress. Diana's loss totals $5,200. When she files a claim with her insurance company,
how much can she expect to receive for this loss under her DP-2 (ignoring any
deductible)? - Answers-$2,500
Which of the following may be covered under a DP-3? - Answers-Flood
Which of the following would be covered under Coverage A in a dwelling policy? -
Answers-Damage to the land
Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally,
after a strong rain, some of the waste washes into a nearby river. Which insurance
coverage can protect Scott from any liability caused by the goat waste runoff? -
Answers-Farm Pollution Liability
Phil runs a locomotive repair business, which is insured under a commercial property
policy. One night, some blasting powder is accidentally ignited and blows a crowbar
through one of the engines. No one is hurt, but the locomotive is severely damaged.
Which coverage option may help cover the cost of repairing the engine from this
unfortunate event? - Answers-Legal Liability Coverage
LICENSE – ENGLISH
Jesse's home is worth $200,000 and he has a homeowners policy with a $160,000 limit.
After a covered loss, Jesse is left with a total of $10,000 in damages. Assuming the
insurer requires the standard 80% level of insurance for coinsurance purposes, and
ignoring any deductibles, how much will Jesse receive in indemnification? - Answers-
10,000
A power surge sparks a small electrical fire in an office building. The electrical fire
triggers the automatic sprinkler system. The water from the sprinklers soaks the carpets
and shorts-out all the computers, causing thousands of dollars in damage. What is the
proximate cause of the loss? - Answers-The power surge
Which of the following statements is NOT true of an insurance adjuster? - Answers-An
insurance adjuster receives her authority to sell products on behalf of the insurer
through a written contract.
Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities
due to rising flood waters in his neighborhood. It takes a month before Sam is allowed
to come back to his home. During this time, he has spent $3,000 in hotel expenses, on
top of his monthly mortgage payment of $850. When he files a claim, how much will
Sam receive under Coverage D - Loss of Use? - Answers-$0
Anton is purchasing homeowner's insurance for his new house. He wants to make sure
his policy offers the BEST coverage available. Which policy should Anton choose? -
Answers-HO-5
Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks
down Sally's back door to get into her kitchen for a snack. When Sally comes home to
find the damage, she files a claim with her insurance company. Will the damage to
Sally's home be covered, and why or why not? - Answers-Yes. The HO-3 is an open-
peril policy, without an exclusion for wildlife.
John moved out of his house and put it up for sale three months ago. While he was
waiting for the house to sell, John's plumbing pipes froze and burst in the icy
temperatures, which eventually led to water damaging the cabinetry and hardwood
floors. Which of the following statements would most likely be TRUE? - Answers-
Although John's house was still covered under an HO-3, the damage would not be
covered because he didn't shut off the water supply.
Craig has an HO-3 policy covering his primary residence with a Coverage A limit of
$250,000, Coverage B limit of $25,000, and a Coverage C limit of $150,000. Craig also
has a cabin on the lake, which was burglarized. The thieves stole much of the cabin's
, contents, for a total loss of $18,500. Ignoring any deductibles, how much will Craig's
HO-3 policy pay for this claim? - Answers-$15,000
Which of the following is TRUE concerning a Business Owners Policy? - Answers-A
business owners policy offers liability protection.
Liability coverage in a BOP is provided on: - Answers-an occurrence basis, only.
Samantha, an agent for NED Insurance, routinely misrepresents policy provisions or
fails to bring them up at all in her sales discussions with potential clients in an effort to
make more sales. All of the following statements are likely true, EXCEPT: - Answers-
Samantha is fulfilling her fiduciary duty to NED Insurance by selling more policies.
After her business suffered damage in a fire, Jane filed a claim with Acme Insurance,
which dispatched Bob to adjust it, even though he was not allowed to adjust commercial
claims. He investigated Jane's losses and submitted his estimate to Acme Insurance,
which issued her a settlement check based on that estimate. Bob had _______ because
Acme Insurance accepted his estimate and paid Jane's claim. - Answers-apparent
authority
Which of the following was NOT a major benefit of The My Safe Florida Home
Program? - Answers-Disaster preparedness education
Diana is insured under a DP-2 policy with the following coverage limits: Coverage A -
$150,000, Coverage B - $15,000, and Coverage C - $25,000. She and her fiancé have
planned a destination wedding, but their hotel catches fire shortly after their arrival.
Smoke from the fire damages all of their belongings, including Diana's $4,000 wedding
dress. Diana's loss totals $5,200. When she files a claim with her insurance company,
how much can she expect to receive for this loss under her DP-2 (ignoring any
deductible)? - Answers-$2,500
Which of the following may be covered under a DP-3? - Answers-Flood
Which of the following would be covered under Coverage A in a dwelling policy? -
Answers-Damage to the land
Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally,
after a strong rain, some of the waste washes into a nearby river. Which insurance
coverage can protect Scott from any liability caused by the goat waste runoff? -
Answers-Farm Pollution Liability
Phil runs a locomotive repair business, which is insured under a commercial property
policy. One night, some blasting powder is accidentally ignited and blows a crowbar
through one of the engines. No one is hurt, but the locomotive is severely damaged.
Which coverage option may help cover the cost of repairing the engine from this
unfortunate event? - Answers-Legal Liability Coverage
