Florida Licensing(Study set for Florida Insurance Licensing) 137 QUESTIONS| GRADED A

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All of the following describe insurable interest EXCEPT: • It must exist at the time of the loss • It must exist for insurance to respond • Shows a similarity between insurance and wagering ... • The insured would suffer an economic loss Correct Answer: • Shows a similarity between insurance and wagering An Insurance Policy is a contract with all the following characteristics, EXCEPT: • It is a personal contract • parties are of unequal power with ambiguities or unclear working resolved in favor of the insured because it is a contract of adhesion • Indemnity is not part of an insurance contract • There are conditions imposed on both the insurer and insured Correct Answer: • Indemnity is not part of an insurance contract An insurance contract which may contain a "gray area" or an ambiguity that is generally resolved in favor of the insured because insurance is a contract of: Correct Answer: Adhesion If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of: Correct Answer: Personal nature Strict or absolute liability Correct Answer: Is assigned by law or statute Jack and Connie agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing? Correct Answer: Legal Purpose Risks that are insurable are Correct Answer: Pure risks Insurance that covers the responsibility for loss arising out of negligence that results in payment to a party other than the insured is: Correct Answer: Liability Insurance The goal of insurance is to restore the insured to the same economic position as before the covered loss, this is the principle of Correct Answer: Indemnity All of the following are ways that liability limits can be expressed except: • PIP Limit • Aggregate Limit [Show More]

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