Florida General Lines Agent Exam questions with complete solution.

Florida General Lines Agent Exam questions with complete solution. What his hthe hdefinition hof ha hrisk hthat his hinsurable? a.Risk his hdefined has ha hchance hor hthe hpossibility hof hfinancial hloss; honly hpure hrisks hare hinsurable has hthere his hno hpossibility hof ha hgain b.A hchance hof ha hloss hor hgain c.A hrisk hwhere hthere his ha hpossibility hof ha hgain d.A hchance hfor hinsurance hcoverage h- h h h hcorrect hanswer.a What his han hinsurance hpolicy? a.A hbinder hthat hoffers hinitial hinsurance hcoverage b.An horal hagreement hrelated hto hinsurance c.A htemporary hagreement hfor hinsurance hcoverage d.A hwritten hagreement hor hcontract hfor hinsurance hcoverage h- h h h hcorrect hanswer.d. What his han hinsurance hbinder? a.An hagreement hwith han hinsurer hfor hcoverage b.A htemporary hagreement hfor hinsurance hcoverage hsubject hto hthe hdecision hof hthe hinsurer c.A hpermanent hagreement hfor hinsurance hcoverage d.An hagreement hwith han hagent h- h h h hcorrect hanswer.b The hterm hcasualty his hrelated hto hall hthe hfollowing hinsurance hlines hexcept? a.Life hand hhealth hinsurance b.Marine hinsurance c.Insurance hon hproperty d.Liability hinsurance h- h h h hcorrect hanswer.a What his hthe hmathematical hconcept hwhere hthe hactual hresults hfrom han hevent hbeing hmeasured hwill hequal hthe hpredicted hor hexpected hresults has hthe hnumber hof hunits hor htrials hincreases? h- h h h hcorrect hanswer.The hconcept hof hThe hLaw hof hLarge hNumbers. What hinsurance hprinciple hacts hto hplace han hinsured hin hthe hsame hor hsimilar hfinancial hposition hafter ha hloss has hwas hprior hto hthe hloss hevent? a.The hindemnity hprinciple b.The hwaiver hprinciple c.The hprinciple hof hutmost hgood hfaith d.The hprinciple hof hsubrogation h- h h h hcorrect hanswer.a What htype hof hcontract hprevents han hinsured hfrom htransferring hthe hinterest hof han hinsurance hpolicy hto hanother? a.A hpersonal hcontract b.An hindemnity hcontract c.A hsubrogation hcontract d.A hcontract hof hgood hfaith h- h h h hcorrect hanswer.a What htype hof hcontract his hone hwhere hthe hobligation hof hthe hinsurer his hto hperform hthe hterms hof hthe hcontract hand his hbased hon hthe hinsured hsatisfying hcertain hconditions? a.A hbinding hcontract b.A hpersonal hcontract c.A hconditional hcontract d.An hadhesion hcontract h- h h h hcorrect hanswer.c What htype hof hcontract his hit hthat hthe hinsured hcannot hnegotiate hthe hterms hof hthe hcontract hand hmust haccept hthe hterms hspecified hin hthe hcontract? a.An hindemnity hcontract b.A hconditional hcontract c.A hcontract hof hadhesion d.A hpersonal hcontract h- h h h hcorrect hanswer.c What htype hof hinterest h(financial hor hlegal) hin hproperty hmust han hinsured hhave hto hbenefit hfrom ha hloss hthat his hinsured? a.Insurable hinterest b.An hadhesion hinterest c.An hindemnity hinterest d.A hpersonal hinterest h- h h h hcorrect hanswer.a What hinsurance hdoctrine hstates hthat ha hcause hof ha hloss hand hall hother hdirectly hrelated hevents hflowing hfrom hthe hsame hcause hof hthe hloss hwould hbe hconsidered has hone hevent? a.The hdoctrine hof hinsurable hinterest b.The hdoctrine hof hproximate hcause c.The hloss hdoctrine d.The hdoctrine hof hclassification h- h h h hcorrect hanswer.b John hgot hin han haccident hthat hdamaged hhis hautomobile, hwhat hwould hbe hconsidered has hwhat htype hof hloss? a.Direct hloss b.Insured hloss c.Insurable hloss d.Indirect hloss h- h h h hcorrect hanswer.a John's hhome hwas htotally hdestroyed hby hfire hthat hresulted hin hhim hmoving hhis hfamily hto ha hhotel. hThe hcost hof hthe hhotel hwould hbe hconsidered has hwhat htype hof hloss? a.A hdirect hloss b.Direct hexpenses c.An hindirect hloss d.Insured hloss h- h h h hcorrect hanswer.c What hinsurance hclause his hrelated hto ha hlender hor hcreditor's hinterest hin hreal hproperty hand hthe hinsurer hwould hpay hlosses hto hall hparties hthat hhave han hinterest hin hthe hsame hproperty? a.Subrogation hclause b.Mortgage hor hmortgagee hclause c.Property hloss hclause d.Loss hpayable hor hpayee hclause h- h h h hcorrect hanswer.b What hinsurance hclause his hrelated hto ha hcreditor's hinterest hin hpersonal hproperty hsuch has han hauto? a.The hproperty hinterest hclause b.The hmortgage hor hmortgagee hclause c.The hcreditor hinterest hclause d.The hloss hpayable hor hloss hpayee hclause h- h h h hcorrect hanswer.d Which hof hthe hfollowing his hnot ha hlegal hrequirement hfor ha hcontract? a.All hare hlegal hrequirements b.The hcontract hmust hhave ha hlegal hpurpose hand htransfer hof hconsideration h(something hof hvalue hsuch has hpayment hof hinsurance hpremiums) c.There hmust hbe ha hvalid hoffer hand ha hvoluntary hacceptance d.The hparties hto hthe hcontract hmust hhave hlegal hcapacity hto hcontract h- h h h hcorrect hanswer.a What hinsurance hloss hsettlement hmethod his hdefined has hthe hcost hto hreplace hthe hitem hless hallowance hfor hdepreciation, hand his hthe hcommon hmethod hused hfor hsettlement hof hpersonal hproperty hlosses? a.Scheduled hsettlement hmethod b.Valued hor hstated hsettlement hmethod c.Actual hcash hvalue hsettlement hmethod d.Replacement hcost h(RC) hsettlement hmethod h- h h h hcorrect hanswer.c What hinsurance hloss hsettlement hmethod his hdefined has: hthe hproperty hloss his hreplaced hwith hitems hthat hare hsimilar hand hof hlike hkind hand hquality, hand his hthe hcommon hmethod hused hin hsettling hreal hproperty hlosses? a.Replacement hcost hsettlement hmethod b.Actual hcash hvalue hsettlement hmethod c.Scheduled hsettlement hmethod d.Valued hor hstated hsettlement hmethod h- h h h hcorrect hanswer.a What hinsurance hsettlement hmethod his hdefined has: hthe hinsurer hagrees hin hadvance hto hpay hthe hvalue hof hthe hproperty hinsured hup hto hthe hcoverage hlimits hregardless hof hthe hproperty hACV hor hRC a.Actual hcash hvalue hACV hsettlement hmethod b.Valued hor hstated hsettlement hmethod c.Replacement hcost h(RC) hsettlement hmethod d.Structured hsettlement hmethod h- h h h hcorrect hanswer.b What hsettlement hmethod his hrelated hto hthe hprice ha hwilling hbuyer hwill hpay hfor hthe hproperty? h- h h h hcorrect hanswer.The hmarket hvalue The hremaining hvalue hof hproperty hafter ha htotal hloss his hreferred hto has? h- h h h hcorrect hanswer.Salvage hvalue The hFlorida hlaw hthat hstates hthat han hinsured hmust hpay hthe hfull hcoverage hlimits hon hproperty hwhen hthere his ha htotal hloss his hreferred hto has? h- h h h hcorrect hanswer.Florida hvalued hpolicy hlaw A hproperty hvalued hat h$100,000 his hinsured hfor h$56,000 hon ha hproperty hpolicy hthat hhas ha hcoinsurance hrequirement hof h80%. hWhat hamount hof hthe hloss his hpayable hby hthe hinsurer hif hthere his ha hloss hof h$20,000? hThe hcoinsurance hformula his hC h/ hR hx hL hwhere hC his hthe hamount hof hinsurance hCARRIED hby hthe hinsured hon hthe hproperty. hR his hthe hamount hof hinsurance hcoverage hREQUIRED hby hthe hinsurer hbased hon hthe hcoinsurance hrequirement hand hL his hthe hamount hof hthe hLOSS. hThe hamount hpayable hfor hthe hloss hwould hbe? h- h h h hcorrect hwould hbe h$14,000 h($56,000 h/ h$80,000 h(80% hof h$100,000) hx h$20,000. Calculate hthe hamount hpayable hfor ha hloss hof h$50,000 hbased hon ha hproperty hthat his hvalued hat h$200,000 hand hthe hproperty his hinsured hfor h$120,000 hon ha hpolicy hthat hrequires ha hcoinsurance hamount hof h80%? a.$37,500 h($120,000 h/ h$160,000 h(80% hof h$200,000) hx h$50,000) b.$10,000 h(20% hof h$50,000) c.$50,000 h(100% hof h$50,000) d.$40,000 h(80% hof h$50,000) h- h h h hcorrect hanswer.a There hare h2 hproperties hinsured, hproperty h#1 hhas han hinsurance hlimit hof h$200,000 hand hproperty h#2 hhas ha hcoverage hamount hof h$300,000. hWhat hwould hbe hthe htotal hcoverage hlimit hbased hon hthe hproperties hbeing hinsured hon ha hblanket hbasis? a.Each hproperty hwould hbe hinsured hfor htheir hcoverage hlimits b.$300,000 hwould hbe hthe hblanket hlimit c.$500,000 h($200,000 h+ h$300,00) d.$200,000 hwould hbe hthe hblanket hlimit h- h h h hcorrect hanswer.c A hproperty hpolicy his hinsured hwith ha hstandard hdeductible hof h$500 hand hthere his ha hloss hof h$5,000. hWhat hwould hthe hinsurer hpay hfor hthe hloss? h- h h h hcorrect hanswer.$4,500 h($5,000 h- h$500) A hproperty his hinsured hwith ha hfranchise hdeductible hof h$500 hand hthere his ha h$5,000 hloss. hWhat hamount hof hthe hloss hwould hbe hpayable hby hthe hinsurer? h- h h h hcorrect hanswer.$5,000 h(the hentire hloss hwould hbe hpaid has hthe hloss hexceed hthe hdeductible). An hagreement hthat hpays hon hbehalf hof han hinsured has hdefined hby hthe hpolicy hor hcoverage hthe hamount hthat hthe hinsurer his hlegally hliable hfor hup hto hthe hlimits hof hthe hpolicy his hconsidered? h- h h h hcorrect hliability An hinsured hauto his hinsured hfor h$30,000 hliability hcoverage hthat happlies hto hboth hbodily hinjury hand hproperty hdamage hwould hbe hconsidered has? a.Single hlimit hof hliability b.Total hliability c.Aggregate hlimit hof hliability d.Split hlimits hof hliability h- h h h hcorrect hanswer.a John's hauto his hinsured hfor h10/20/10 hliability hsplit hlimits. hExplain hhow hthe hlimits hwould hbe happlied hif hthere his han haccident? h- h h h hcorrect hanswer.$10,000 hwould hbe hthe hlimit hthat hwould happly hto hany h1 hperson hbodily hinjury. h$20,000 hwould hbe hthe hlimit hthat hwould happly hto h2 hor hmore hpersons hinjury hand h$10,000 hwould hbe hthe hlimit hthat hwould happly hto hthe hproperty hdamage. A hpolicy hwith hone hlimit hthat hwould happly hto hall hlosses hthat hoccur hduring hthe hpolicy hperiod hwould hbe hconsidered has hwhat htype hof hliability hlimit? h- h h h hcorrect gate hlimit hof hliability Liability hinsurance honly hpays hfor? h- h h h hcorrect ary hdamages,Remember hliability hinsurance hdoes hnot hcover hpunitive hdamages hwhich hare hdamages ha hcourt hmay himpose hon hsomeone hdue hto hgross hnegligence hor hwillful hregard hfor hthe hwelfare hof hothers What htype hof hlegal hliability his himposed hon ha hperson hregardless hof hfault hfor hliability hsuch has hliability hfor hemployee hinjury hand hmanufacturing hof hchemicals hor hother hdangerous hsubstances? h- h h h hcorrect ute hor hstrict hliability What htype hof hliability hmay hbe himposed hon hsomeone hfor hthe hnegligent hacts hof hothers hwithin hthe hperson's hcontrol hor hsupervision hor hfor hemployees hacting hwithin hthe hscope hof hthe hauthority hgranted? h- h h h hcorrect ious hliability The hfollowing hare hlegal hrequirements hfor hbringing ha hsuit hinvolving hnegligence hexcept? a.All hare hlegal hrequirements b.The hperson hmust hfail hto hperform hthe hlegal hduty c.The hperson hmust hbe hunder ha hlegal hduty hto hperform hsome haction d.The hinjury hmust hbe hthe hproximate h(related) hcause hof hthe hfailure hto hperform h- h h h hcorrect hanswer.a Which hof hthe hfollowing hlegal hdamages hare hnot hcovered hby hliability hpolicies? a.General hdamages b.Punitive hdamages c.Compensatory hdamages d.Special hdamages h- h h h hcorrect hanswer.b What htype hof hcompensatory hdamage hinvolves hinjuries hthat hcan heasily hbe hcalculated hin hmonetary hterms hoften hincluding hinjury hthat hresult hin hloss hof hwages hand hmedical hexpenses? h- h h h hcorrect al hdamages What htype hof hcompensatory hdamage hinvolves hinjuries hthat hmay hnot hbe heasily hcalculated hin hmonetary hterms hoften hincluding hinjury hsuch has hpain hand hsuffering, hdeath hand hother hserious hinjury? h- h h h hcorrect al hdamage Which hof hthe hfollowing his hnot hone hof hthe hduties hof han hinsured hafter hthe hoccurrence hof ha hloss hthat his hinsured? a.Cooperate hwith hthe hinsurer b.All hare hduties c.Prompt hnotice hof hthe hloss hto hthe hinsurer d.Act hin hways hto hpreserve hthe hinsurer's hrights hunder hthe hcontract h- h h h hcorrect hanswer.b What hinsurance hclause hprovides hthe hinsurer hthe hright hto hrecover hclaims hpaid hto han hinsured hfrom ha hnegligent hthird hparty hand hthe hinsured his hprohibited hfrom himpeding hthe hinsurer's hrights hunder hthe hclause? a.Subrogation hclause b.Assignment hclause c.Indemnity hclause d.Insurable hinterest hclause h- h h h hcorrect hanswer.a What hinsurance hclause hprohibits hthe hinsured hfrom htransferring hthe hrights hunder hthe hcontract hto hanother hwithout hwritten hconsent hof hthe hinsurer? h- h h h hcorrect s hof hassignment hclause What hwill hhappen hto hinsurance hcoverage hwhen hthe hproperty hinsured his htaken houtside hthe hterritory h(geographic harea) hspecified hby hthe hinsurance hcontract? h- h h h hcorrect hanswer.The hcoverage hwill hbe hsuspended huntil hthe hproperty his hreturn hto hthe hcovered hterritory". There hare h2 hpolicies hcovering hthe hsame hloss hof h$30,000. hPolicy hA hcoverage hlimit his h$100,000 hand hpolicy hB hcoverage hlimit his h$200,000. hHow hwould hthe hloss hbe hdistributed hunder hthe hPro-rata hdistribution hmethod? h- h h h hcorrect hanswer.Policy hA hwould hpay h$10,000 h(1/3 hof hthe hloss h$100,000 h/ h$300,000) hand hPolicy hB h$20,000 h(2/3 hof hthe hloss h$200,000 h/ h$300,000). There hare h2 hpolicies hcovering hthe hsame hloss hof h$120,000. hPolicy hA his hthe hprimary hpolicy hwith ha hlimit hof h$100,000 hand hPolicy hB his hthe hexcess hpolicy hwith ha hlimit hof h$100,000. hHow hwould hthe hloss hbe hdistributed hunder hthe hprimary hand hexcess hmethod? h- h h h hcorrect hanswer.Policy hA hwould hpay h$100,000 hand hpolicy hB hwould hpay h$20,000 Which hinsurance hpolicy hprovision hstates hthat hwhen hthe hinsurer hbroadens hcoverage hwithout hany hadditional hpremiums hthe hbenefit hwould happly hto hall hsimilar hpolices? a.The hinsurable hinterest hprovision b.The hliberalization hprovision c.The hsubrogation hprovision d.The happraisal hprovision h- h h h hcorrect hanswer.b Which hinsurance hpolicy hprovision hprovides ha hremedy hfor hsettling hclaim hdisputes hbetween han hinsured hand hinsurer hbut honly hrelated hto hthe hamount hof hthe hsettlement hand hnot hany hother hdisputes? a.The hseverability hprovision b.The hsubrogation hprovision c.The hliberalization hprovision d.The happraisal hprovision h- h h h hcorrect hanswer.d Which hinsurance hprovision hstates hthat hinsurance hcoverage hwould happly hindividually hto hall hinsureds hand hthe hacts hof hone hwould hnot himpede hthe hrights hof hthe hother hinsureds? a.The happraisal hprovision b.The hinsurable hinterest hprovision c.The hseverability hprovision d.The hliberalization hprovision h- h h h hcorrect hanswer.