Florida 4-40 Exam 2026 Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

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Florida 4-40 Exam 2026 Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

Question 1: 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?

• Alter the policy limits directly on the certificate.
• Provide a plain-language summary describing what the policy forms cover.
• List coverage forms or endorsements that are part of the policy, and send copies of

those forms if requested.

• Guarantee coverage for a claim not yet filed.

Correct Answer: C

Question 2: Making fraudulent omissions or incomplete comparisons about a policy to

induce a person to buy insurance with another company is known as:

• Rebating
• Twisting
• Coercion
• Defamation

Correct Answer: B

Question 3: Which best describes an insurance deductible?

• The maximum amount an insurance company will pay for a covered loss.
• A part of an insured loss which the policyholder agrees to pay out of pocket.
• A refund given to the insured at the end of a claim-free year.

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• The premium amount paid monthly by the insured.

Correct Answer: B

Question 4: An insurance deductible:

• Is paid out of pocket by the insured, but does not reduce the limit of insurance available.
• Reduces the total limit of insurance available by the deductible amount.
• Is always covered by a third-party liability policy.
• Must be paid to the state insurance department.

Correct Answer: A

Question 5: Breaking and Entering with visible signs of forceful entry refers to:

• Robbery
• Larceny
• Burglary
• Theft

Correct Answer: C

Question 6: 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:

• Coercion
• Rebating
• Defamation
• Twisting

Correct Answer: C

Question 7: According to the Law of Large Numbers:

• Smaller data sets provide more accurate future predictions.
• Larger data sets can be used to make more accurate predictions.
• Insurance companies must charge larger premiums for larger families.
• Losses become less predictable as the insured pool grows.

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Correct Answer: B

Question 8: Fraudulent activity is more likely under which:

• Soft markets.
• Hard markets.
• Fair markets.
• Regulated markets.

Correct Answer: B

Question 9: If a 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?

• 12 months
• 24 months
• 36 months
• 48 months

Correct Answer: D

Question 10: Insured has personal property at two locations. At the time policy is written, the property at location 1 is valued at $100,000. The property at location 2 is valued at $300,000. Insured purchases $400,000 blanket insurance. Later, they have a $137,000 loss from a covered peril at location 1. How much will the policy pay?

Correct Answer: $137,000

Question 11: If a licensee changes their name, residence address or business address,

they must notify the Department of Insurance within:

• 10 Days
• 15 Days
• 30 Days
• 60 Days

Correct Answer: C

Question 12: Which of the following describes an insurable risk?

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• The chance that an employee of a company might defraud that company's customers.
• The chance that a stock market investment will lose value.
• The possibility of losing money in a casino.
• The depreciation of a new car driven off the lot.

Correct Answer: A

Question 13: Statute of Limitations is defined as:

• The maximum limit an insurer will pay.
• Time within which a legal right must be exercised.
• The geographic area where coverage applies.
• The amount of time an insured has to pay a premium.

Correct Answer: B

Question 14: Knowingly making a false or fraudulent statement on an application is known

as:

• Defamation
• Coercion
• Misrepresentation
• Sliding

Correct Answer: C

Question 15: The continuing education statutes require a minimum of:

• at least 10 hours on general business skills.
• at least 4 hours on subjects specific to the license such as ethics and statutory updates.
• at least 20 hours of product training per year.
• no continuing education if licensed for over 5 years.

Correct Answer: B

Question 16: Bethod has the authority to issue Certificates of Liability Insurance for Safety Mutual Insurance Company. Which of the following is not an acceptable practice?

• Issuing a certificate exactly matching the policy.