Webce life health Florida 2 Exam
Question and Answer 2023
Rory's parents offered to buy him a new car to take to college, but Rory turned them
down because he was afraid the car would be stolen or damaged if he parked it on
campus. In deciding not to own a car, what risk management technique did Rory
employ? - risk avoidance
Which of the following is most likely to be an insurable risk? - The chance that a fire will
destroy a building
Theodore pays an annual premium to the insurance company that covers many of the
risks associated with Theodore's business. What risk management technique is
Theodore using? - risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? - It
involves only the chance of a loss.
Esther, an underwriter for QRS Insurance Company, is not able to provide the coverage
requested in Benny's insurance application. Esther can reject the application, or she can
- Make a counteroffer
When applying for a businessowners insurance policy, Brandy did not mention that
hazardous and illegal activity that goes on in the backroom of her shop because she
realized no insurer that knew about it would insure her business. What is Brandy's
failure to disclose this activity considered? - Concealment
Haze's store has an automatic sprinkler system that will be activated by a fire. In
exchange for the reduced fire insurance premium, she signs a document stating that the
automatic sprinkler system will always be in operating condition. What is this statement?
- A Warranty
Tom's insurance company wanted to deny Tom's claim based on an exclusion in Tom's
policy, but Tom and his lawyer convinced the court that the exclusion was ambiguous
and did not clearly apply to Tom's case. Because the policy is a contract of adhesion,
what will the court do? - Rule in Tom's favor
Evangeline bought he home with 20 percent down payment and mortgage from Trevor
Bank. She had not yet paid off the mortgage when the home was badly damaged in an
explosion. Who had an insurable interest in the home at the time of the loss? - both
Evangeline and Trevor Bank
For an insurer to pay a property or casualty claim, when must the policyholder have an
insurable interest in the insured risk? - At the time of the loss
,In the context of a property or casualty insurance policy, which of the following is
considered to be personal property? - Gas Grille
An owner of a property or casualty insurance policy is required to have an insurable
interest in the insured risk at the time of the. - Loss of the insured property or
occurrence of the insured event
The building and personal property used in Greg's business are covered by an open
perils property insurance policy, but he is concerned that the policy excludes coverage
for the flood and earthquake losses. What might Greg be able to purchase to obtain
flood and earthquake coverage? - difference-in-conditions policy
Elias's store is covered by a property insurance policy that provides named perils
coverage. When Elias enters the store on Monday morning, he discovers that much of
the merchandise was damaged over the weekend, and he submits a property insurance
claim. Which of the following statements correctly describes the burden of proof with
respect to this claim? - Elias has the burden of proving that the damage was caused by
a covered peril
While Connie is out of town on an extended vacation, a group of teenagers break into
her house, throw a beer party, and damage the interior. Connie's resulting property
insurance claim will be covered if her policy covers what perils? - vandalism or
malicious mischief
Elaine's property insurance policy lists and describes eight covered causes of loss.
These causes of loss may also be referred to as: - Perils
Which one of the following legally qualifies as an attractive nuisance? - An unfenced
swimming pool in Kris's backyard is used by neighborhood children while she is at work
Rosalie was attacked by her neighbor's dog. As a result, she was hospitalized for ten
days and spent another painful month at home recovering from her injuries. In addition
to paying her an amount as compensation for her pain and suffering, the neighbor's
insurer was required to pay for her medical expenses and lost wages. What is the
money paid for Rosalie's lost wages considered? - special damages
Yesenia was seriously injured when Elbert's and Yesenia's cars collided at an
intersection. A court determined that the accident was 60 percent Yesenia's fault, so
Yesenia was entitled to recover only 40 percent of her damages from Elbert. The
defense on which this court's determination was based involves: - comparative
negligence
Harding Paint Store mixed a gallon of paint with custom color Meghan requested.
However, the store clerk failed to tighten the lid on the paint can, which came open
, while Megan was driving home with the can in her car. Harding was required to pay for
the expensive damage to Megan's car that resulted from the paint spill under: - tort law
Coworkers who live near her residence ride to work in Felicia's car and help pay for her
gas and other expenses. An exclusion in Felicia's auto insurance policy says it does not
cover a vehicle while it is carrying persons for a fee but then seems to contradict that
statement by saying the exclusion does not apply to a share-the-expense carpool. What
is the apparent contradiction? - an exception to an exclusion
Victoria's full name appears on the declarations page of her insurance policy where she
is the only person identified as a named insured. Within the body of the policy, what
word or phrase refers specifically to Victoria? - You
Lucas's commercial property policy, like many other policies that cover buildings,
contains an "Ordinance or Law" exclusion. What does this exclusion most likely deal
with? - extra expenses required to comply with current building codes when repairing
damaged property
Many endorsements are attached to Bettie's policy, If she examines them closely, she
will probably find one or more endorsements that do all the following Except. - Cancel
the policy
Joan owns the car that struck and injured a pedestrian, but she insists that the car was
being driven at the time by her neighbor Kurt who took the car without her permission.
An exclusion in Joan's policy precludes coverage for a driver that does not have
permission to drive her car. The insurer's investigation uncovers evidence that supports
Joan's position. Therefore, what will the insurer do? - defend Joan against the
pedestrian's claim at the insurer's expense
Ralph's car has been damaged beyond repair, and Ralph's insurer pays him what the
car was worth just before the accident. The insurer then takes possession of the car.
What is the car considered in technical terms? - Salvage
When Chauncey lent Latasha money to buy a car, he insisted that he be listed as a loss
payee on Latasha's auto insurance policy. What does the loss payable clause in
Latasha's policy entitle Chauncey to? - to be included in any claims payment
Tori's young son drives his motorized toy car into a neighbor's child and knocks her
down. Although Tori's homeowners insurance policy specifically excludes liability
coverage for motorized vehicles, she learns that one of the recent changes her insurer
introduced adds coverage for "toy cars." Tori's renewal premium will not change
because other changes will reduce her coverage. Her current policy's liberalization
clause provides that - Tori is not entitled to benefit from the latest policy edition because
it includes both broadenings and restrictions in coverage
Question and Answer 2023
Rory's parents offered to buy him a new car to take to college, but Rory turned them
down because he was afraid the car would be stolen or damaged if he parked it on
campus. In deciding not to own a car, what risk management technique did Rory
employ? - risk avoidance
Which of the following is most likely to be an insurable risk? - The chance that a fire will
destroy a building
Theodore pays an annual premium to the insurance company that covers many of the
risks associated with Theodore's business. What risk management technique is
Theodore using? - risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? - It
involves only the chance of a loss.
Esther, an underwriter for QRS Insurance Company, is not able to provide the coverage
requested in Benny's insurance application. Esther can reject the application, or she can
- Make a counteroffer
When applying for a businessowners insurance policy, Brandy did not mention that
hazardous and illegal activity that goes on in the backroom of her shop because she
realized no insurer that knew about it would insure her business. What is Brandy's
failure to disclose this activity considered? - Concealment
Haze's store has an automatic sprinkler system that will be activated by a fire. In
exchange for the reduced fire insurance premium, she signs a document stating that the
automatic sprinkler system will always be in operating condition. What is this statement?
- A Warranty
Tom's insurance company wanted to deny Tom's claim based on an exclusion in Tom's
policy, but Tom and his lawyer convinced the court that the exclusion was ambiguous
and did not clearly apply to Tom's case. Because the policy is a contract of adhesion,
what will the court do? - Rule in Tom's favor
Evangeline bought he home with 20 percent down payment and mortgage from Trevor
Bank. She had not yet paid off the mortgage when the home was badly damaged in an
explosion. Who had an insurable interest in the home at the time of the loss? - both
Evangeline and Trevor Bank
For an insurer to pay a property or casualty claim, when must the policyholder have an
insurable interest in the insured risk? - At the time of the loss
,In the context of a property or casualty insurance policy, which of the following is
considered to be personal property? - Gas Grille
An owner of a property or casualty insurance policy is required to have an insurable
interest in the insured risk at the time of the. - Loss of the insured property or
occurrence of the insured event
The building and personal property used in Greg's business are covered by an open
perils property insurance policy, but he is concerned that the policy excludes coverage
for the flood and earthquake losses. What might Greg be able to purchase to obtain
flood and earthquake coverage? - difference-in-conditions policy
Elias's store is covered by a property insurance policy that provides named perils
coverage. When Elias enters the store on Monday morning, he discovers that much of
the merchandise was damaged over the weekend, and he submits a property insurance
claim. Which of the following statements correctly describes the burden of proof with
respect to this claim? - Elias has the burden of proving that the damage was caused by
a covered peril
While Connie is out of town on an extended vacation, a group of teenagers break into
her house, throw a beer party, and damage the interior. Connie's resulting property
insurance claim will be covered if her policy covers what perils? - vandalism or
malicious mischief
Elaine's property insurance policy lists and describes eight covered causes of loss.
These causes of loss may also be referred to as: - Perils
Which one of the following legally qualifies as an attractive nuisance? - An unfenced
swimming pool in Kris's backyard is used by neighborhood children while she is at work
Rosalie was attacked by her neighbor's dog. As a result, she was hospitalized for ten
days and spent another painful month at home recovering from her injuries. In addition
to paying her an amount as compensation for her pain and suffering, the neighbor's
insurer was required to pay for her medical expenses and lost wages. What is the
money paid for Rosalie's lost wages considered? - special damages
Yesenia was seriously injured when Elbert's and Yesenia's cars collided at an
intersection. A court determined that the accident was 60 percent Yesenia's fault, so
Yesenia was entitled to recover only 40 percent of her damages from Elbert. The
defense on which this court's determination was based involves: - comparative
negligence
Harding Paint Store mixed a gallon of paint with custom color Meghan requested.
However, the store clerk failed to tighten the lid on the paint can, which came open
, while Megan was driving home with the can in her car. Harding was required to pay for
the expensive damage to Megan's car that resulted from the paint spill under: - tort law
Coworkers who live near her residence ride to work in Felicia's car and help pay for her
gas and other expenses. An exclusion in Felicia's auto insurance policy says it does not
cover a vehicle while it is carrying persons for a fee but then seems to contradict that
statement by saying the exclusion does not apply to a share-the-expense carpool. What
is the apparent contradiction? - an exception to an exclusion
Victoria's full name appears on the declarations page of her insurance policy where she
is the only person identified as a named insured. Within the body of the policy, what
word or phrase refers specifically to Victoria? - You
Lucas's commercial property policy, like many other policies that cover buildings,
contains an "Ordinance or Law" exclusion. What does this exclusion most likely deal
with? - extra expenses required to comply with current building codes when repairing
damaged property
Many endorsements are attached to Bettie's policy, If she examines them closely, she
will probably find one or more endorsements that do all the following Except. - Cancel
the policy
Joan owns the car that struck and injured a pedestrian, but she insists that the car was
being driven at the time by her neighbor Kurt who took the car without her permission.
An exclusion in Joan's policy precludes coverage for a driver that does not have
permission to drive her car. The insurer's investigation uncovers evidence that supports
Joan's position. Therefore, what will the insurer do? - defend Joan against the
pedestrian's claim at the insurer's expense
Ralph's car has been damaged beyond repair, and Ralph's insurer pays him what the
car was worth just before the accident. The insurer then takes possession of the car.
What is the car considered in technical terms? - Salvage
When Chauncey lent Latasha money to buy a car, he insisted that he be listed as a loss
payee on Latasha's auto insurance policy. What does the loss payable clause in
Latasha's policy entitle Chauncey to? - to be included in any claims payment
Tori's young son drives his motorized toy car into a neighbor's child and knocks her
down. Although Tori's homeowners insurance policy specifically excludes liability
coverage for motorized vehicles, she learns that one of the recent changes her insurer
introduced adds coverage for "toy cars." Tori's renewal premium will not change
because other changes will reduce her coverage. Her current policy's liberalization
clause provides that - Tori is not entitled to benefit from the latest policy edition because
it includes both broadenings and restrictions in coverage
