Florida Insurance Customer Service Rep 4-40 Exam Questions with 100% Correct Answers

How can Insurance companies can afford to pay for an individual's catastrophic loss? Correct Answer The premiums from all policyholders are pooled together. What information is found on the Declarations page? Correct Answer contains the make and model of the covered vehicle described Steven was denied coverage, a jury decieded in his favor. Why are insurance policies considered "Contracts of Adhesion"? Correct Answer Policy language is open to legal interpretation. Susan is a Doctor, her husband is a photographer. Why is Susan denied into her her husbands "Risk Purchasing Group"? Correct Answer Susan is a plastic surgeon and her husband is a photographer, her application is denied because they are not similar businesses. What is an example of a HO policy hazard? Correct Answer Sandra's home is in an area of Los Angeles that is often hit by earthquakes What is a loss Correct Answer During a storm, heavy winds cause a tree limb to break and fall onto Paul's house; insurance company now considers his house a loss. when managing risk, Correct Answer reduce the risk of loss, the chance of loss, determine if the risk of loss to great, are all things to consider except: insurer avoids paying out for losses when claims are submitted express waiver Correct Answer Darnell signs a document giving up his right to uninsured motorist coverage Moral hazard Correct Answer Ken lights a candle, sets it right next to the window draperies and leaves the house to go to work, leave the house with candles burning. Physical hazard Correct Answer Brads pool in his backyard indirect loss Correct Answer an expense to rent a temporary office space insurable interest Correct Answer Ken can take out insurance on his boat, car, his vacation house, but not his favorite restaurant.