WEBCE 2-20 Practice Exam With Complete Solutions

WEBCE 2-20 Practice Exam With Complete Solutions Lila, a self-employed accountant, requires emergency medical treatment after choking on a product of the Dulce Candy Company while in her office. A month later, she asks Dulce to pay her medical bills. Dulce's commercial general liability policy with medical payments coverage (Coverage C) will: - answerAs premises and operations coverage, Coverage C does not provide medical payments coverage for bodily injury that occurs away from the insured's premises and arises out of the insured's completed products or completed work. Doug owns a single-family home with a replacement cost value of $500,000 and contents valued at $250,000. What is the maximum amount of insurance he can buy under a standard flood policy? - answer$250,000 on the building and $100,000 on the contents. Which factor does an adjuster NOT consider when accounting for dep in the adjustment of a claim? - answerLoss of value for accounting purposes What are the maximum limits of insurance a business owner can buy to cover the business structure and business contents under a regular flood policy? - answer$500,000 on the building and $500,000 on the contents Joe's personal auto policy (PAP) has a $100 deductible for collision coverage on his sedan but no physical damage coverage on his old truck. When the truck is being repaired, Joe borrows Robin's new sports car and crashes it. Robin's collision coverage has a $1,000 deductible. Who will pay for the sports car's repairs? - answerRobin's policy will pay all but $1,000, Joe's policy will pay $900, and Joe will pay $100 An agent's license can be suspended or revoked for all of the following reasons EXCEPT: - answerPaying commissions to a licensed agency Butch's Meat Market loses electrical power during a flood. The business closes for several days, during which time there is no refrigeration and a large quantity of meat spoils. The loss of the meat is what type of loss? - answerConsequential As part of its reforms, the federal Fair Credit Reporting Act: - answerRequired insurance applicants to be informed in advanced that the insurer might order a credit report Dora hires Shaun to clean the terra-cotta tiles in her home's foyer. Shaun's work is poor, so Dora sues him to recover the cost of the tiles he ruined. Shaun's business owner's policy will: - answerNot cover the damage to the ruined tiles For a building to be insurable under a regular flood insurance policy, which of the following conditions must be met? - answerIt must have at least 2 rigid walls While driving, Terri ran a red light and broadsided Victor's pickup. Victor was hospitalized for a week and spent another month recovering from injuries he suffered from the accident. In addition to paying his medical bill and reimbursing his lost wages, Terri insurer was required to pay additional damages for victor's pain and suffering, which are considered: - answerGeneral damages Alex wants the broadest homeowners insurance policy available to insure his home. Which homeowners policy form will he most likely choose? - answerHO 5 Which type of insurance is NOT be among those that business owners typically use to cover their auto liability exposure? - answerCommercial general liability policy Property insurance policies covering building and contents commonly exclude all the following causes of loss EXCEPT - answerLighting Commissioner of the Office of Insurance Regulation issued an order prohibiting Agent Theo from describing himself as a financial planner and senior insurance expert in his advertising materials. Agent Theo continues to use the marketing materials, despite the order. Which penalty may the Commissioner NOT impose? - answerRestitution The 3 types of hazards the insurers typically recognize are: - answerMoral, Morale, and Physical Liability insurance basically involves: - answerTort Law The life insurance Buyer's Guide helps prospective buyers determine all of the following EXCEPT: - answerMost qualified insurer According to motor vehicle law definition in Donnell's homeowners insurance policy, which would NOT be considered a motor vehicle? - answerA bicycle Doris has a homeowners insurance policy and a separate insurance policy that covers her jewelry. A provision in her homeowners policy states "We do not cover articles specifically insured in another insurance policy." What is the purpose of this exclusion? - answerTo eliminate or reduce overlapping coverage In an auto policy that has split limits of 50/100/75, what does the "75" represent? - answerThe maximum amount the insurer will pay for damage to other cars or property XYZ Insurance Company's auto insurance application includes a Fair Credit Reporting Act Notice. What does this notice inform consumers about? - answerThe insurer might order a credit report on the applicant that includes personal information A statement in an auto insurance policy that reads: "We will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident" is from which standard policy provision? - answerInsuring agreement What type of organization is a non-profit entity that operates on the lodge system, has no capital stock, and sells insurance mainly to its members? - answerFraternal Benefit Society A water damage exclusion in Sadie's property insurance policy excludes coverage for any damages that might be caused by a flood. If Sadie wants flood coverage. from where can she get a flood insurance policy? - answerThe National Flood Insurance Program 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: - answerHer personal auto policy will pay $55,000 When an insurance policy provides crime coverage on a discovery basis, coverage is triggered by a loss that: - answerIs discovered during the policy period or within 60 days after the policy period ends A basic surgical expense policy's fee schedule assigns an appendectomy a unit value of 70. To determine the maximum benefit payable, a conversion factor of $20 is multiplied by the unit value. If the insured must have his appendix removed, the policy will pay a maximum benefit of: - answer$1,400 Avery works as an intermediary between retail insurance agents and insurers to obtain unusual or hard-to-place insurance for the agents' insureds. However, Avery has no underwriting or binding authority. Based on this information, what does Avery appear to be? - answerA surplus lines broker An income replacement disability insurance policy pays a monthly benefit that equals: - answerThe actual amount of income lost Which is the market of last resort for those unable to find property insurance in the admitted market in Florida? - answerCitizens Which of the following is NOT a necessary element of a contract? - answerWritten terms Florida law requires property insurers to provide premium credits or discounts for which one of the following? - answerQualifying wind