Florida 4-40 Test (2026) |
Practice Test with Correct Answers
| Graded A+
‣ 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?
-✓✓The power surge
‣ Which of the following statements is NOT true of an insurance
adjuster? -✓✓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: -✓✓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. -
✓✓apparent authority
‣ Which of the following was NOT a major benefit of The My Safe
Florida Home Program? -✓✓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? -✓✓$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? -✓✓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? -✓✓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? -✓✓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? -✓✓$15,000
‣ Which of the following is TRUE concerning a Business Owners
Policy? -✓✓A business owners policy offers liability protection.
‣ Liability coverage in a BOP is provided on: -✓✓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)? -✓✓$2,500
Practice Test with Correct Answers
| Graded A+
‣ 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?
-✓✓The power surge
‣ Which of the following statements is NOT true of an insurance
adjuster? -✓✓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: -✓✓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. -
✓✓apparent authority
‣ Which of the following was NOT a major benefit of The My Safe
Florida Home Program? -✓✓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? -✓✓$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? -✓✓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? -✓✓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? -✓✓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? -✓✓$15,000
‣ Which of the following is TRUE concerning a Business Owners
Policy? -✓✓A business owners policy offers liability protection.
‣ Liability coverage in a BOP is provided on: -✓✓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)? -✓✓$2,500
