Florida 4-40 Customer Representative
(CIR) License – English With Verified Q&A
Guarantee Pass..!!!!
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? -
CORRECT ANSWER -- 10,000
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? - CORRECT ANSWER -- The power surge
Which of the following statements is NOT true of an insurance adjuster? -
CORRECT ANSWER -- An insurance adjuster receives her authority to sell products
on behalf of the insurer through a written contract.
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: -
CORRECT ANSWER -- Samantha is fulfilling her fiduciary duty to NED Insurance by
selling more policies.
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 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.
- CORRECT ANSWER -- apparent authority
Which of the following was NOT a major benefit of The My Safe Florida Home
Program? - CORRECT ANSWER -- Disaster preparedness education
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? - CORRECT
ANSWER -- $0
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? - CORRECT ANSWER -- HO-5
, 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? - CORRECT ANSWER --
Yes. The HO-3 is an open-peril policy, without an exclusion for wildlife.
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? - CORRECT
ANSWER -- 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.
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? - CORRECT ANSWER -- $15,000
Which of the following is TRUE concerning a Business Owners Policy? - CORRECT
ANSWER -- A business owners policy offers liability protection.
Liability coverage in a BOP is provided on: - CORRECT ANSWER -- an occurrence
basis, only.
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)? - CORRECT ANSWER -- $2,500
Which of the following may be covered under a DP-3? - CORRECT ANSWER --
Flood
Which of the following would be covered under Coverage A in a dwelling policy? -
CORRECT ANSWER -- Damage to the land
Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally,
after a strong rain, some of the waste washes into a nearby river. Which insurance
coverage can protect Scott from any liability caused by the goat waste runoff? -
CORRECT ANSWER -- Farm Pollution Liability
Phil runs a locomotive repair business, which is insured under a commercial property
policy. One night, some blasting powder is accidentally ignited and blows a crowbar
through one of the engines. No one is hurt, but the locomotive is severely damaged.
Which coverage option may help cover the cost of repairing the engine from this
unfortunate event? - CORRECT ANSWER -- Legal Liability Coverage
