Personal Lines License 20-44 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Warranty - CORRECT ANSWER - policy condition, either based on information in the
insured's application or inserted by the insurer
Misrepresentation - CORRECT ANSWER - an untrue statement by the insured, made in
an application but does not become a part of the policy
Broad Evidence Rule - CORRECT ANSWER - a method of determing the true insurable
worth of a structure or vehicle according to any measure that will prvoide the most accurate
analysis of that property's value
State - CORRECT ANSWER - a jurisdiction other than the state of Florida (any state,
district, territory, or commonwealth in the U.S.)
authorized insurer - CORRECT ANSWER - one authorized by a subsisting certificate of
authority issued by the department to transact insurance in this state
Office of Insurance Regulation - CORRECT ANSWER - regulation, compliance, and
enforcement of statutes related to the business of insurance and the monitoring of industry
markets (regulatory oversight of company solvency, policy forms and rates, market conduct
performance, and new company entrants in the FL market
Causes of Loss Form - CORRECT ANSWER - specifies what perils are insured against
and lists exclusions. Several different versions provide increasingly broad coverage from Basic
to Broad to special. An earthquake form is also available
Split Limits - CORRECT ANSWER - policy limits that apply one limit to each person
injured, another for BI claims of all persons insured in a single accident, and a separate limit for
all property damage arising out of a single accident (i.e. 15/30/10)
, Severability - CORRECT ANSWER - insurance applies separately to each insureds
Arbitration Clause - CORRECT ANSWER - in the event the insured and the insurer
cannot agree on amount of claim settlement, each appoints an appraiser
Liberalization - CORRECT ANSWER - if insurer broadens coverage w/out additional
premium w/in some period of time prior to the policy period (60 days) or during the policy
period, the insured receives the benefit
Pro Rata - CORRECT ANSWER - pay the proportion (limit: all limits)
(i.e.$25,000/$100,000 =1/4)
Primary - CORRECT ANSWER - applies 1st up to its limit
Excess - CORRECT ANSWER - all other insurances exhausted before the policy will
apply
Equal Shares - CORRECT ANSWER - contribution based on the amount of policies
regardless of their limits
Assignment - CORRECT ANSWER - policy transfer from one insured to another
Subrogation - CORRECT ANSWER - insured has the right to collect damages from
another party but elects to claim the damages from her own insurance policy
Indemnity - CORRECT ANSWER - a principle of insurance which provides that when a
loss occurs, the insured should be restored to the approximate financial condition occupied
before the loss occured, no better, no worse
ACTUAL Exam Questions and CORRECT
Answers
Warranty - CORRECT ANSWER - policy condition, either based on information in the
insured's application or inserted by the insurer
Misrepresentation - CORRECT ANSWER - an untrue statement by the insured, made in
an application but does not become a part of the policy
Broad Evidence Rule - CORRECT ANSWER - a method of determing the true insurable
worth of a structure or vehicle according to any measure that will prvoide the most accurate
analysis of that property's value
State - CORRECT ANSWER - a jurisdiction other than the state of Florida (any state,
district, territory, or commonwealth in the U.S.)
authorized insurer - CORRECT ANSWER - one authorized by a subsisting certificate of
authority issued by the department to transact insurance in this state
Office of Insurance Regulation - CORRECT ANSWER - regulation, compliance, and
enforcement of statutes related to the business of insurance and the monitoring of industry
markets (regulatory oversight of company solvency, policy forms and rates, market conduct
performance, and new company entrants in the FL market
Causes of Loss Form - CORRECT ANSWER - specifies what perils are insured against
and lists exclusions. Several different versions provide increasingly broad coverage from Basic
to Broad to special. An earthquake form is also available
Split Limits - CORRECT ANSWER - policy limits that apply one limit to each person
injured, another for BI claims of all persons insured in a single accident, and a separate limit for
all property damage arising out of a single accident (i.e. 15/30/10)
, Severability - CORRECT ANSWER - insurance applies separately to each insureds
Arbitration Clause - CORRECT ANSWER - in the event the insured and the insurer
cannot agree on amount of claim settlement, each appoints an appraiser
Liberalization - CORRECT ANSWER - if insurer broadens coverage w/out additional
premium w/in some period of time prior to the policy period (60 days) or during the policy
period, the insured receives the benefit
Pro Rata - CORRECT ANSWER - pay the proportion (limit: all limits)
(i.e.$25,000/$100,000 =1/4)
Primary - CORRECT ANSWER - applies 1st up to its limit
Excess - CORRECT ANSWER - all other insurances exhausted before the policy will
apply
Equal Shares - CORRECT ANSWER - contribution based on the amount of policies
regardless of their limits
Assignment - CORRECT ANSWER - policy transfer from one insured to another
Subrogation - CORRECT ANSWER - insured has the right to collect damages from
another party but elects to claim the damages from her own insurance policy
Indemnity - CORRECT ANSWER - a principle of insurance which provides that when a
loss occurs, the insured should be restored to the approximate financial condition occupied
before the loss occured, no better, no worse
