FLORIDA 240 LICENSE EXAM QUESTIONS AND CORRECT ANSWERS | GRADED A+ | VERIFIED ANSWERS | LATEST VERSION | 100% ASSURED PASS.

FLORIDA 240 EXAM QUESTIONS AND CORRECT ANSWERS | GRADED A+ | VERIFIED ANSWERS | LATEST VERSION | 100% ASSURED PASS. All of the following describe insurable interest EXCEPT: • It must exist at the timeof the loss • It must exist for insuranceto respond • Shows a similaritybetween insurance and wagering • The insured would sufferan economic loss • Shows a similarity between insurance and wagering An Insurance Policy is a contract with all the following characteristics, EXCEPT: • It is a personal contract• parties are of unequal power with ambiguities or unclear working resolved in favor of the insured because it is a contract of adhesion • Indemnity is not part ofan insurance contract • There are conditions imposed on both the insurer and insured • Indemnity is not part of an insurance contract An insurance contract which may contain a "gray area" or an ambiguity that is generally resolved in favor of the insured because insurance is a contract of: Adhesion If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of: Personal nature Strict or absolute liability Is assigned by law or statute Jack and Connie agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing? Legal Purpose Risks that are insurable are Pure risks All of the following are ways that liability limits can be expressed except: •PIP Limit •Aggregate Limit •Split Limit •Single Limit PIP Limit An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance will his policy pay for these claims? $20,000 If a lender has an insurable interest in an auto, because of the money loaned to finance the purchase, the lender would appear on the policy as the: • Lessee •Loss Payee •Mortgagor •Mortgagee Loss Payee To turn partially damaged property over to the insurance company and ask them to pay for a total loss is called Abandonment Firemen caused water damage to a property by spraying water to put out a fire. If the property insurance policy listed fire as the only named peril: The water damage is covered due to the concept of proximate cause Insurance that covers the responsibility for loss arising out of negligence that results in payment to a party other than the insured is: Liability Insurance The goal of insurance is to restore the insured to the same economic position as before the covered loss, this is the principle of Indemnity