FLORIDA PERSONAL LINES TEST WITH
ANSWERS
A person who does not lock the door to his or her house shows
an indifferent attitude. What type of hazard does this
represent? - ANSWER -Morale
Wagering on a sporting event is known as what type of risk? -
ANSWER -Speculative
How is actual cash value of property calculated? - ANSWER -
Current replacement cost minus depreciation
If an insured peril was the proximate cause of loss, what type of
loss is it? - ANSWER -Direct
,what type of policy insures all property at multiple locations for
a single amount? - ANSWER -Blanket Policy
The reduction, decrease, or disappearance of value of the
person or property insured in a policy is know as what? -
ANSWER -Loss
In property insurance, what is the purpose of a coinsurance
clause? - ANSWER -To encourage insureds to insure property
close to its value.
If a manufactured product is unsafe, what type of liability
applies to the manufacturer? - ANSWER -Strict Liability
(Insurance carried divided by insurance required ) x Loss
amount = - ANSWER -Loss payment
What is subrogation? - ANSWER -An insurer's legal right to seek
damages from third parties after reimbursing insureds for a
loss.
,What are the three types of hazards - ANSWER -Physical,
Moral, and Morale
What do individuals use to transfer their risk of loss to a larger
group? - ANSWER -Insurance
An insurer discovers that an applicant for a policy has submitted
a fraudulent insurance claim in the past, What type of hazard
does this represent? - ANSWER -Moral
What determines an insurer's responsibility for payment, as a
stated in an insurance policy? - ANSWER -Limits of liability
What term defines an exact, direct, and uninterrupted cause of
loss? - ANSWER -Proximate cause
Under absolute liability, does an injured party need to prove
negligence? - ANSWER -No, Absolute liability exist when a
condition or conduct is inherently dangerous. so proof of
negligence is not required.
, An insured's business is damaged by a fire, and temporarily
shuts down for repairs. As a result, the insured suffers loss of
income. What type of loss is the loss of income? - ANSWER -
Indirect
A policy that covers all causes of loss except for those
specifically excluded is known as what type of policy? - ANSWER
-Open Peril ( or special) form.
What type of limits of liability has the limits separately stated
for different coverages? - ANSWER -Split limits
How are direct and indirect losses related? - ANSWER -Direct
loses can cause indirect losses.
In property insurance, when must the insurable interest exist? -
ANSWER -At time of loss
What provision found in property policies prevent an insured
from collecting twice for the same loss: once from the insurer
and again from a third party? - ANSWER -Subrogation
ANSWERS
A person who does not lock the door to his or her house shows
an indifferent attitude. What type of hazard does this
represent? - ANSWER -Morale
Wagering on a sporting event is known as what type of risk? -
ANSWER -Speculative
How is actual cash value of property calculated? - ANSWER -
Current replacement cost minus depreciation
If an insured peril was the proximate cause of loss, what type of
loss is it? - ANSWER -Direct
,what type of policy insures all property at multiple locations for
a single amount? - ANSWER -Blanket Policy
The reduction, decrease, or disappearance of value of the
person or property insured in a policy is know as what? -
ANSWER -Loss
In property insurance, what is the purpose of a coinsurance
clause? - ANSWER -To encourage insureds to insure property
close to its value.
If a manufactured product is unsafe, what type of liability
applies to the manufacturer? - ANSWER -Strict Liability
(Insurance carried divided by insurance required ) x Loss
amount = - ANSWER -Loss payment
What is subrogation? - ANSWER -An insurer's legal right to seek
damages from third parties after reimbursing insureds for a
loss.
,What are the three types of hazards - ANSWER -Physical,
Moral, and Morale
What do individuals use to transfer their risk of loss to a larger
group? - ANSWER -Insurance
An insurer discovers that an applicant for a policy has submitted
a fraudulent insurance claim in the past, What type of hazard
does this represent? - ANSWER -Moral
What determines an insurer's responsibility for payment, as a
stated in an insurance policy? - ANSWER -Limits of liability
What term defines an exact, direct, and uninterrupted cause of
loss? - ANSWER -Proximate cause
Under absolute liability, does an injured party need to prove
negligence? - ANSWER -No, Absolute liability exist when a
condition or conduct is inherently dangerous. so proof of
negligence is not required.
, An insured's business is damaged by a fire, and temporarily
shuts down for repairs. As a result, the insured suffers loss of
income. What type of loss is the loss of income? - ANSWER -
Indirect
A policy that covers all causes of loss except for those
specifically excluded is known as what type of policy? - ANSWER
-Open Peril ( or special) form.
What type of limits of liability has the limits separately stated
for different coverages? - ANSWER -Split limits
How are direct and indirect losses related? - ANSWER -Direct
loses can cause indirect losses.
In property insurance, when must the insurable interest exist? -
ANSWER -At time of loss
What provision found in property policies prevent an insured
from collecting twice for the same loss: once from the insurer
and again from a third party? - ANSWER -Subrogation
