Florida Licensing All Answers Correct

Florida Licensing All Answers Correct All of the following describe insurable interest EXCEPT: • It must exist at the time of the loss • It must exist for insurance to respond • Shows a similarity between insurance and wagering • The insured would suffer an economic loss • Shows a similarity between insurance and wagering An Insurance Policy is a contract with all the following characteristics, EXCEPT: • It is a personal contract • parties are of unequal power with ambiguities or unclear working resolved in favor of the insured because it is a contract of adhesion • Indemnity is not part of an insurance contract • There are conditions imposed on both the insurer and insured • Indemnity is not part of an insurance contract An insurance contract which may contain a "gray area" or an ambiguity that is generally resolved in favor of the insured because insurance is a contract of: Adhesion If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of: Personal nature Strict or absolute liability Is assigned by law or statute Jack and Connie agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing? Legal Purpose Risks that are insurable are Pure risks Insurance that covers the responsibility for loss arising out of negligence that results in payment to a party other than the insured is: Liability Insurance The goal of insurance is to restore the insured to the same economic position as before the covered loss, this is the principle of Indemnity All of the following are ways that liability limits can be expressed except: • PIP Limit • Aggregate Limit • Split Limit • Single Limit PIP Limit An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance will his policy pay for these claims? $20,000 If a lender has an insurable interest in an auto, because of the money loaned to finance the purchase, the lender would appear on the policy as the: • Lessee • Loss Payee • Mortgagor • Mortgagee Loss Payee To turn partially damaged property over to the insurance company and ask them to pay for a total loss is called Abandonment Firemen caused water damage to a property by spraying water to put out a fire. If the property insurance policy listed fire as the only named peril: The water damage is covered due to the concept of proximate cause XYZ Insurance Corp. filed its corporate charter in Tallahassee and has its home office in Tampa: In