Florida 4-40 Test | Complete Study
Guide with Verified Answers | Graded
A+
‣ 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? Answer: 48 months
‣ Fraudulent activity is more likely under which: Answer: Hard markets.
‣ According to the Law of Large Numbers: Answer: Larger data sets can
be used to make more accurate predictions.
‣ Bob tells his clients that a competitor is "a liar and a thief, not to
mention incompetent." Over time, this results in a substantial reduction
of the competitor's business. The competitor can bring a complaint
against Bob for which: Answer: Defamation.
‣ Breaking and Entering with visible signs of forceful entry refers to:
Answer: Burglary
‣ An insurance deductible: Answer: Is paid out of pocket by the insured,
but does not reduce the limit of insurance available.
,‣ 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
‣ 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.
‣ If a licensee changes their name, residence address or business address,
they must notify the Department of Insurance within: Answer: 30 Days
‣ Which of the following describes an insurable risk? Answer: The
chance that an employee of a company might defraud that company's
customers.
‣ Statute of Limitations is defined as: Answer: Time within which a legal
right must be exercised.
‣ Knowingly making a false or fraudulent statement on an application is
known as: Answer: Misrepresentation.
, ‣ The continuing education statutes require a minimum of: Answer: at
least 4 hours on subjects specific to the license such as ethics and
statutory updates.
‣ Bethod has the authority to issue Certificates of Liability Insurance for
Safety Mutual Insurance Company. Which of the following is not an
acceptable practice? Answer: Provide a plain-language summary on the
certificate describing what the policy forms cover.
‣ When an applicant's credit score is used for insurance underwriting:
Answer: The applicant has a legal right to disclosure.
‣ Intentionally caused losses come under which property insurance
concept Answer: Moral Hazard
‣ 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: Answer:
Concealment
‣ Which of the following best describes the purpose of the coinsurance
provision on a property insurance policy? Answer: Te keep premiums
reasonable for fully-insured policyholders by requiring under-insured
policyholders to pay a percentage of their own losses out of pocket.
‣ Debra is a 4-40 CSR who gets married. As a result, she changes her
last name and residence address. She must notify the Department of
Guide with Verified Answers | Graded
A+
‣ 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? Answer: 48 months
‣ Fraudulent activity is more likely under which: Answer: Hard markets.
‣ According to the Law of Large Numbers: Answer: Larger data sets can
be used to make more accurate predictions.
‣ Bob tells his clients that a competitor is "a liar and a thief, not to
mention incompetent." Over time, this results in a substantial reduction
of the competitor's business. The competitor can bring a complaint
against Bob for which: Answer: Defamation.
‣ Breaking and Entering with visible signs of forceful entry refers to:
Answer: Burglary
‣ An insurance deductible: Answer: Is paid out of pocket by the insured,
but does not reduce the limit of insurance available.
,‣ 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
‣ 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.
‣ If a licensee changes their name, residence address or business address,
they must notify the Department of Insurance within: Answer: 30 Days
‣ Which of the following describes an insurable risk? Answer: The
chance that an employee of a company might defraud that company's
customers.
‣ Statute of Limitations is defined as: Answer: Time within which a legal
right must be exercised.
‣ Knowingly making a false or fraudulent statement on an application is
known as: Answer: Misrepresentation.
, ‣ The continuing education statutes require a minimum of: Answer: at
least 4 hours on subjects specific to the license such as ethics and
statutory updates.
‣ Bethod has the authority to issue Certificates of Liability Insurance for
Safety Mutual Insurance Company. Which of the following is not an
acceptable practice? Answer: Provide a plain-language summary on the
certificate describing what the policy forms cover.
‣ When an applicant's credit score is used for insurance underwriting:
Answer: The applicant has a legal right to disclosure.
‣ Intentionally caused losses come under which property insurance
concept Answer: Moral Hazard
‣ 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: Answer:
Concealment
‣ Which of the following best describes the purpose of the coinsurance
provision on a property insurance policy? Answer: Te keep premiums
reasonable for fully-insured policyholders by requiring under-insured
policyholders to pay a percentage of their own losses out of pocket.
‣ Debra is a 4-40 CSR who gets married. As a result, she changes her
last name and residence address. She must notify the Department of
