WEBCE life health Florida Exam Questions & Answers Latest Update
WEBCE life health Florida Exam Questions &
Answers 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? - ✔-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 favor
WEBCE life health Florida Exam Questions & Answers Latest Update
,WEBCE life health Florida Exam Questions & Answers Latest Update
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? - ✔-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
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? - ✔-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? - ✔-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: - ✔-Perils
Which one of the following legally qualifies as an attractive nuisance? - ✔-An unfenced swimming pool
in Kris's backyard is used by neighborhood children while she is at work
WEBCE life health Florida Exam Questions & Answers Latest Update
,WEBCE life health Florida Exam Questions & Answers Latest Update
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? - ✔-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: - ✔-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: - ✔-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? - ✔-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? - ✔-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? - ✔-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. - ✔-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
WEBCE life health Florida Exam Questions & Answers Latest Update
, WEBCE life health Florida Exam Questions & Answers Latest Update
investigation uncovers evidence that supports Joan's position. Therefore, what will the insurer do? - ✔-
defend Joan against the pedestrian's claim at the insurer's expense
Ralph's car has been damaged beyond repair, and Ralph's insurer pays him what the car was worth just
before the accident. The insurer then takes possession of the car. What is the car considered in technical
terms? - ✔-Salvage
When Chauncey lent Latasha money to buy a car, he insisted that he be listed as a loss payee on
Latasha's auto insurance policy. What does the loss payable clause in Latasha's policy entitle Chauncey
to? - ✔-to be included in any claims payment
Tori's young son drives his motorized toy car into a neighbor's child and knocks her down. Although
Tori's homeowners insurance policy specifically excludes liability coverage for motorized vehicles, she
learns that one of the recent changes her insurer introduced adds coverage for "toy cars." Tori's renewal
premium will not change because other changes will reduce her coverage. Her current policy's
liberalization clause provides that - ✔-Tori is not entitled to benefit from the latest policy edition
because it includes both broadenings and restrictions in coverage
After receiving Shelton's claim that a car his policy covers has been stolen, his insurance policy obligates
his insurer to do all the following EXCEPT: - ✔-Pay the claim
Because he was watching his GPS instead of watching his driving, Gerry's car rear-ended the vehicle in
front of him. It will cost $15,000 to repair that vehicle, and the two injured occupants of that vehicle are
awarded damages in the amounts of $30,000 and $20,000, respectively. No-fault laws do not apply.
Jerry's auto policy has combined single limits of $50,000. How much will his insurer pay? - ✔-$50,000
Amie thought she was correctly following the cooking instructions when she put a frozen turkey into the
turkey fryer, but the resulting fire destroyed her neighbor's wooden deck. After paying for the deck, the
neighbor's insurer attempts to recover from Amie by exercising its right of: - ✔-Subrogation
Ivy's personal auto policy provides primary liability coverage with a $100,000 limit, while her personal
umbrella policy provides excess coverage with a $1 million limit. If Ivy must pay $55,000 in damages
because she is responsible for an auto accident, - ✔-her personal auto policy will pay $55,000.
WEBCE life health Florida Exam Questions & Answers Latest Update
WEBCE life health Florida Exam Questions &
Answers 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? - ✔-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 favor
WEBCE life health Florida Exam Questions & Answers Latest Update
,WEBCE life health Florida Exam Questions & Answers Latest Update
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? - ✔-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
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? - ✔-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? - ✔-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: - ✔-Perils
Which one of the following legally qualifies as an attractive nuisance? - ✔-An unfenced swimming pool
in Kris's backyard is used by neighborhood children while she is at work
WEBCE life health Florida Exam Questions & Answers Latest Update
,WEBCE life health Florida Exam Questions & Answers Latest Update
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? - ✔-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: - ✔-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: - ✔-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? - ✔-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? - ✔-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? - ✔-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. - ✔-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
WEBCE life health Florida Exam Questions & Answers Latest Update
, WEBCE life health Florida Exam Questions & Answers Latest Update
investigation uncovers evidence that supports Joan's position. Therefore, what will the insurer do? - ✔-
defend Joan against the pedestrian's claim at the insurer's expense
Ralph's car has been damaged beyond repair, and Ralph's insurer pays him what the car was worth just
before the accident. The insurer then takes possession of the car. What is the car considered in technical
terms? - ✔-Salvage
When Chauncey lent Latasha money to buy a car, he insisted that he be listed as a loss payee on
Latasha's auto insurance policy. What does the loss payable clause in Latasha's policy entitle Chauncey
to? - ✔-to be included in any claims payment
Tori's young son drives his motorized toy car into a neighbor's child and knocks her down. Although
Tori's homeowners insurance policy specifically excludes liability coverage for motorized vehicles, she
learns that one of the recent changes her insurer introduced adds coverage for "toy cars." Tori's renewal
premium will not change because other changes will reduce her coverage. Her current policy's
liberalization clause provides that - ✔-Tori is not entitled to benefit from the latest policy edition
because it includes both broadenings and restrictions in coverage
After receiving Shelton's claim that a car his policy covers has been stolen, his insurance policy obligates
his insurer to do all the following EXCEPT: - ✔-Pay the claim
Because he was watching his GPS instead of watching his driving, Gerry's car rear-ended the vehicle in
front of him. It will cost $15,000 to repair that vehicle, and the two injured occupants of that vehicle are
awarded damages in the amounts of $30,000 and $20,000, respectively. No-fault laws do not apply.
Jerry's auto policy has combined single limits of $50,000. How much will his insurer pay? - ✔-$50,000
Amie thought she was correctly following the cooking instructions when she put a frozen turkey into the
turkey fryer, but the resulting fire destroyed her neighbor's wooden deck. After paying for the deck, the
neighbor's insurer attempts to recover from Amie by exercising its right of: - ✔-Subrogation
Ivy's personal auto policy provides primary liability coverage with a $100,000 limit, while her personal
umbrella policy provides excess coverage with a $1 million limit. If Ivy must pay $55,000 in damages
because she is responsible for an auto accident, - ✔-her personal auto policy will pay $55,000.
WEBCE life health Florida Exam Questions & Answers Latest Update
