Florida 4-40 Test | Verified Q&A
Review | Graded A+
• Which of the following best describes the purpose of the coinsurance
provision on a property insurance policy? 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.
• Which best describes an insurance deductible? Answer: A part of an
insured loss which the policyholder agrees to pay out of pocket.
• Making fraudulent omissions or incomplete comparisons about a
policy to induce a person to buy insurance with another company is
known as: Answer: Twisting.
• Fraudulent activity is more likely under which: Answer: Hard markets.
• Knowingly making a false or fraudulent statement on an application is
known as: Answer: Misrepresentation.
• A policy you service has a clause stating that the premium is auditable.
This means: Answer: The insured may owe additional premium after
expiration of the policy.
, • Susan tries to buy collision coverage on her neighbor's car. She thinks
her neighbor is a bad driver, and reasons that she can make some money
if her neighbor gets into an accident. The insurance company tells her
this is not possible. Why? Answer: Susan has no insurable interest in the
neighbor's car.
• Charles has the authority to issue Certificates of Liability Insurance
and Evidences of Property Insurance for Safety Mutual Insurance
Company. Which of the following is an acceptable practice, for which
Charles does not need any other approval from the insurer? Answer: List
coverage forms or endorsements that are part of the policy, and send
copies of those forms if requested.
• Breaking and Entering with visible signs of forceful entry refers to:
Answer: Burglary
• A Dwelling Policy Basic Form can be characterized as: Answer:
Limited named perils/ACV
• There is an auto insurance coverage that pays the insured only if an at-
fault party injures the insured without supplying sufficient insurance to
cover the injuries caused. This coverage is called: Answer: Uninsured /
Underinsured Motorist coverage.
• Automobile Medical Payments coverage: Answer: Pays the driver's
and passengers' medical bills, regardless of fault, and the limit applies
per person per accident with no maximum.
Review | Graded A+
• Which of the following best describes the purpose of the coinsurance
provision on a property insurance policy? 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.
• Which best describes an insurance deductible? Answer: A part of an
insured loss which the policyholder agrees to pay out of pocket.
• Making fraudulent omissions or incomplete comparisons about a
policy to induce a person to buy insurance with another company is
known as: Answer: Twisting.
• Fraudulent activity is more likely under which: Answer: Hard markets.
• Knowingly making a false or fraudulent statement on an application is
known as: Answer: Misrepresentation.
• A policy you service has a clause stating that the premium is auditable.
This means: Answer: The insured may owe additional premium after
expiration of the policy.
, • Susan tries to buy collision coverage on her neighbor's car. She thinks
her neighbor is a bad driver, and reasons that she can make some money
if her neighbor gets into an accident. The insurance company tells her
this is not possible. Why? Answer: Susan has no insurable interest in the
neighbor's car.
• Charles has the authority to issue Certificates of Liability Insurance
and Evidences of Property Insurance for Safety Mutual Insurance
Company. Which of the following is an acceptable practice, for which
Charles does not need any other approval from the insurer? Answer: List
coverage forms or endorsements that are part of the policy, and send
copies of those forms if requested.
• Breaking and Entering with visible signs of forceful entry refers to:
Answer: Burglary
• A Dwelling Policy Basic Form can be characterized as: Answer:
Limited named perils/ACV
• There is an auto insurance coverage that pays the insured only if an at-
fault party injures the insured without supplying sufficient insurance to
cover the injuries caused. This coverage is called: Answer: Uninsured /
Underinsured Motorist coverage.
• Automobile Medical Payments coverage: Answer: Pays the driver's
and passengers' medical bills, regardless of fault, and the limit applies
per person per accident with no maximum.
