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Florida 4-40 Customer Representative
(CIR) License - English Questions with
Detailed Verified Answers
Question:Jesse's home is worth $200,000 and he has a homeowners policy
with a $160,000 limit. After a covered loss, Jesse is left with a total of $10,000
in damages. Assuming the insurer requires the standard 80% level of
insurance for coinsurance purposes, and ignoring any deductibles, how much
will Jesse receive in indemnification?
Ans: 10,000
Question: A power surge sparks a small electrical fire in an office building. The
electrical fire triggers the automatic sprinkler system. The water from the
sprinklers soaks the carpets and shorts-out all the computers, causing
thousands of dollars in damage. What is the proximate cause of the loss?
Ans: The power surge
Question: Which of the following statements is NOT true of an insurance
adjuster?
Ans: An insurance adjuster receives her authority to sell products on behalf of
the insurer through a written contract.
Question: Samantha, an agent for NED Insurance, routinely misrepresents
policy provisions or fails to bring them up at all in her sales discussions with
potential clients in an effort to make more sales. All of the following
statements are likely true, EXCEPT:
Ans: Samantha is fulfilling her fiduciary duty to NED Insurance by selling more
policies.
Question: After her business suffered damage in a fire, Jane filed a claim with
Acme Insurance, which dispatched Bob to adjust it, even though he was not
allowed to adjust commercial claims. He investigated Jane's losses and
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submitted his estimate to Acme Insurance, which issued her a settlement
check based on that estimate. Bob had _______ because Acme Insurance
accepted his estimate and paid Jane's claim.
Ans: apparent authority
Question: Which of the following was NOT a major benefit of The My Safe
Florida Home Program?
Ans: Disaster preparedness education
Question: Sam, who has a typical HO-3 policy, is forced to evacuate his home
by civil authorities due to rising flood waters in his neighborhood. It takes a
month before Sam is allowed to come back to his home. During this time, he
has spent $3,000 in hotel expenses, on top of his monthly mortgage payment
of $850. When he files a claim, how much will Sam receive under Coverage D -
Loss of Use?
Ans: $0
Question: Anton is purchasing homeowner's insurance for his new house. He
wants to make sure his policy offers the BEST coverage available. Which
policy should Anton choose?
Ans: HO-5
Question: Sally has an HO-3 policy on her $150,000 home in the country. One
day, a bear breaks down Sally's back door to get into her kitchen for a snack.
When Sally comes home to find the damage, she files a claim with her
insurance company. Will the damage to Sally's home be covered, and why or
why not?
Ans: Yes. The HO-3 is an open-peril policy, without an exclusion for wildlife.
Question: John moved out of his house and put it up for sale three months
ago. While he was waiting for the house to sell, John's plumbing pipes froze
and burst in the icy temperatures, which eventually led to water damaging the
cabinetry and hardwood floors. Which of the following statements would
most likely be TRUE?
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Ans: Although John's house was still covered under an HO-3, the damage
would not be covered because he didn't shut off the water supply.
Question: Craig has an HO-3 policy covering his primary residence with a
Coverage A limit of $250,000, Coverage B limit of $25,000, and a Coverage C
limit of $150,000. Craig also has a cabin on the lake, which was burglarized.
The thieves stole much of the cabin's contents, for a total loss of $18,500.
Ignoring any deductibles, how much will Craig's HO-3 policy pay for this claim?
Ans: $15,000
Question: Which of the following is TRUE concerning a Business Owners
Policy?
Ans: A business owners policy offers liability protection.
Question: Liability coverage in a BOP is provided on:
Ans: an occurrence basis, only.
Question: Diana is insured under a DP-2 policy with the following coverage
limits: Coverage A - $150,000, Coverage B - $15,000, and Coverage C -
$25,000. She and her fiancé have planned a destination wedding, but their
hotel catches fire shortly after their arrival. Smoke from the fire damages all of
their belongings, including Diana's $4,000 wedding dress. Diana's loss totals
$5,200. When she files a claim with her insurance company, how much can she
expect to receive for this loss under her DP-2 (ignoring any deductible)?
Ans: $2,500
Question: Which of the following may be covered under a DP-3?
Ans: Flood
Question: Which of the following would be covered under Coverage A in a
dwelling policy?
Ans: Damage to the land
Florida 4-40 Customer Representative
(CIR) License - English Questions with
Detailed Verified Answers
Question:Jesse's home is worth $200,000 and he has a homeowners policy
with a $160,000 limit. After a covered loss, Jesse is left with a total of $10,000
in damages. Assuming the insurer requires the standard 80% level of
insurance for coinsurance purposes, and ignoring any deductibles, how much
will Jesse receive in indemnification?
Ans: 10,000
Question: A power surge sparks a small electrical fire in an office building. The
electrical fire triggers the automatic sprinkler system. The water from the
sprinklers soaks the carpets and shorts-out all the computers, causing
thousands of dollars in damage. What is the proximate cause of the loss?
Ans: The power surge
Question: Which of the following statements is NOT true of an insurance
adjuster?
Ans: An insurance adjuster receives her authority to sell products on behalf of
the insurer through a written contract.
Question: Samantha, an agent for NED Insurance, routinely misrepresents
policy provisions or fails to bring them up at all in her sales discussions with
potential clients in an effort to make more sales. All of the following
statements are likely true, EXCEPT:
Ans: Samantha is fulfilling her fiduciary duty to NED Insurance by selling more
policies.
Question: After her business suffered damage in a fire, Jane filed a claim with
Acme Insurance, which dispatched Bob to adjust it, even though he was not
allowed to adjust commercial claims. He investigated Jane's losses and
, Page | 2
submitted his estimate to Acme Insurance, which issued her a settlement
check based on that estimate. Bob had _______ because Acme Insurance
accepted his estimate and paid Jane's claim.
Ans: apparent authority
Question: Which of the following was NOT a major benefit of The My Safe
Florida Home Program?
Ans: Disaster preparedness education
Question: Sam, who has a typical HO-3 policy, is forced to evacuate his home
by civil authorities due to rising flood waters in his neighborhood. It takes a
month before Sam is allowed to come back to his home. During this time, he
has spent $3,000 in hotel expenses, on top of his monthly mortgage payment
of $850. When he files a claim, how much will Sam receive under Coverage D -
Loss of Use?
Ans: $0
Question: Anton is purchasing homeowner's insurance for his new house. He
wants to make sure his policy offers the BEST coverage available. Which
policy should Anton choose?
Ans: HO-5
Question: Sally has an HO-3 policy on her $150,000 home in the country. One
day, a bear breaks down Sally's back door to get into her kitchen for a snack.
When Sally comes home to find the damage, she files a claim with her
insurance company. Will the damage to Sally's home be covered, and why or
why not?
Ans: Yes. The HO-3 is an open-peril policy, without an exclusion for wildlife.
Question: John moved out of his house and put it up for sale three months
ago. While he was waiting for the house to sell, John's plumbing pipes froze
and burst in the icy temperatures, which eventually led to water damaging the
cabinetry and hardwood floors. Which of the following statements would
most likely be TRUE?
, Page | 3
Ans: Although John's house was still covered under an HO-3, the damage
would not be covered because he didn't shut off the water supply.
Question: Craig has an HO-3 policy covering his primary residence with a
Coverage A limit of $250,000, Coverage B limit of $25,000, and a Coverage C
limit of $150,000. Craig also has a cabin on the lake, which was burglarized.
The thieves stole much of the cabin's contents, for a total loss of $18,500.
Ignoring any deductibles, how much will Craig's HO-3 policy pay for this claim?
Ans: $15,000
Question: Which of the following is TRUE concerning a Business Owners
Policy?
Ans: A business owners policy offers liability protection.
Question: Liability coverage in a BOP is provided on:
Ans: an occurrence basis, only.
Question: Diana is insured under a DP-2 policy with the following coverage
limits: Coverage A - $150,000, Coverage B - $15,000, and Coverage C -
$25,000. She and her fiancé have planned a destination wedding, but their
hotel catches fire shortly after their arrival. Smoke from the fire damages all of
their belongings, including Diana's $4,000 wedding dress. Diana's loss totals
$5,200. When she files a claim with her insurance company, how much can she
expect to receive for this loss under her DP-2 (ignoring any deductible)?
Ans: $2,500
Question: Which of the following may be covered under a DP-3?
Ans: Flood
Question: Which of the following would be covered under Coverage A in a
dwelling policy?
Ans: Damage to the land
