4-40 Practice Exam Questions with 100% Correct Answers

The failure of the insured to reveal a known fact to the insurer, which would have had an adverse effect on the policy being issued is: Correct Answer concealment Any act of stealing except employee infidelity refers to: Correct Answer Larceny or theft A syndicate composed of all licensed companies in Florida which write auto insurance is correctly called which: Correct Answer FAJUA Bethod has the authority to issue Certificates of Liability Insurance for Safety Mutual Insurance Company. Which of the following is not an acceptable practice? Correct Answer Provide a plain-language summary on the certificate describing what the policy forms cover. (making up your own wording without company approval is not.) Which is a typical example of "insurable interest"? Correct Answer Sarah would lose money or assets if her own house was damaged. Correct Answer The applicant has a legal right to disclosure Intentionally caused losses come under which property insurance concept Correct Answer Moral Hazard All of the following are requirements of the Florida 4-40 CSR license, except: Correct Answer The licensee can not explain coverages to prospective clients Which of the following best describes the purpose of the coinsurance provision on a property insurance policy? Correct Answer To keep premiums reasonable for fully-insured policyholders by requiring under-insured policyholders to pay a percentage of their own losses out of pocket. (The coinsurance provision helps keep premiums reasonable. It states that the policyholder will co-insure the property if they set their insurance limits too low. That way if they are not paying much premium, they will have to help pay any partial losses on their account.) Any insurance where the insurer pays the insured or some other named interest directly is called: Correct Answer Property Coverage If licensee fails to be appointed they are subject to losing their license. What period of time will trigger the termination of a license for failure to maintain an appointment? Correct Answer 48 Months Property insurance pays ________, while liability insurance pays ________. Correct Answer The insured or a named interest / a third party