FLORIDA PERSONAL LINES LICENSE EXAM TEST BANK LATEST ACTUAL EXAM 450 QUESTIONS AND CORRECT ANSWERS|AGRADE
3 views 0 purchase
Course
FLORIDA PERSONAL LINES LICENSE
Institution
FLORIDA PERSONAL LINES LICENSE
FLORIDA PERSONAL LINES LICENSE
EXAM TEST BANK LATEST
ACTUAL EXAM 450 QUESTIONS AND
CORRECT ANSWERS|AGRADE
FLORIDA PERSONAL LINES LICENSE
EXAM TEST BANK LATEST
ACTUAL EXAM 450 QUESTIONS AND
CORRECT ANSWERS|AGRADE
FLORIDA PERSONAL LINES LICENSE
EXAM TEST BANK LATEST 2023-2024
ACTUAL EXAM 450 QUESTIONS AND
CORRECT ANSWERS|AGRADE
While driving, Ben was struck by another driver, Roxanne. Ben then filed a claim with Roxanne's insurer.
In essence, what was Ben doing when he filed this claim?
Alerting Roxanne's insurer of his intent to take the case to court
Submitting a formal request to settle the damages with Roxanne's insurer
Ordering Roxanne's insurer to pay for his damages within 15 days
Admitting he was actually "at fault" - ANSWER-Submitting a formal request to settle the damages with
Roxanne's insurer
Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his insurance company
and
$4,000 from the other driver. By receiving a profit from the loss, Mark could be in violation of:
the principle of financial status.
the principle of financial restoration.
the principle of profit and loss.
the principle of indemnity. - ANSWER-the principle of indemnity
What is a reserve, in insurance terms?
The amount of revenue that the insurer sets aside to pay employee salaries
A group of policyholders who pay into the same pool of premiums
A pool of collected premiums that the insurer sets aside to pay claims
A set of rules governing how the insurance industry should work - ANSWER-A pool of collected
premiums that the insurer sets aside to pay claims
The purpose of the principle of indemnity is:
to prevent an insured from making a profit on a loss.
,to transfer the risk of financial loss from one party to another.
to transfer the right to collect a debt from one party to another.
to prevent an insurer from making a profit on a loss. - ANSWER-to prevent an insured from making a
profit on a loss.
Greg plays trombone in his school band during football games. During a rally song in the stands one day,
Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it down the
bleachers, completely destroying it. Greg's insurance pays him $400 to replace the trombone, but then
the
opposing team's coach also offers to replace the instrument, at whatever the cost. So Greg orders a new
$3,200 trombone and has the opposing team's athletic department absorb the cost. Which principle has
Greg violated?
The principle of consideration
The principle of legal purpose
The principal of the opposing team
The principle of indemnity - ANSWER-The principle of indemnity
Which of the following refers to being restored to the financial condition you were in before a loss?
Indemnification
Restoration
Estoppel
Subrogation - ANSWER-Indemnification
Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the following
would be
a reason this policy may not be legally binding?
Bobby has an outstanding warrant for selling marijuana.
Bobby has been diagnosed with schizophrenia.
Bobby paid his first premium when he and his agent agreed on a policy, but he is waiting for the policy
documents to be prepared so he can sign them
,Bobby is only 19 years old. - ANSWER-Bobby has been diagnosed with schizophrenia.
Indemnification may include all of the following except:
reimbursement for hotel costs.
reimbursement for rental car costs.
payment for pain and suffering.
payment for repairs to property. - ANSWER-payment for pain and suffering.
Which of the following is NOT a requirement for a legally binding contract?
There must be a legal purpose.
There must be mutual consent.
Both parties must bring something of value.
It must be a notarized document. - ANSWER-It must be a notarized document.
The fee paid by the insured in exchange for an insurance policy is called a:
premium.
legal purpose.
binder.
contract. - ANSWER-premium
Which of the following best defines the principle of indemnity?
Both parties to an insurance contract must contribute something of value.
After a loss, the insured should be restored to his approximate financial condition before the loss.
In order to be legally binding, a contract must have agreement, consideration, competent parties, and
legal purpose.
In exchange for a premium, the insurer grants peace of mind by reducing the insured's insecurity about
the future. - ANSWER-After a loss, the insured should be restored to his approximate financial condition
before the loss.
, Which of the following is found in the declarations page of an insurance policy?
The perils insured against
A description of how to file a claim
The obligations of the insured after a loss
The name of the insured party - ANSWER-The name of the insured party
In which section of an insurance policy might you find the following statement? "'We, us, and our' refers
to
ABC Insurance company."
Definitions
Declarations
Conditions
Exclusions - ANSWER-Definitions
In which section of an insurance policy might you find the following statement? "Damage to insured
property must be reported within 15 days of the damaging occurrence."
Exclusions
Definitions
Conditions
Declarations Page - ANSWER-Conditions
Which section of an insurance policy is designed to OMIT certain risks from coverage?
Exclusions
Insuring Agreement
Coverage Forms
Definitions - ANSWER-Exclusions
Which of the following would you find in the Conditions section of an insurance policy?
The meaning of certain important words in the contract
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Settings. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $27.99. You're not tied to anything after your purchase.
