Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If an insured commits arson and is then disabled as a result, what action will the insurer likely take?

Pay the claim as usual
Increase the premium
Rescind the policy and recover payments
Offer a settlement

The correct answer is: Rescind the policy and recover payments

The insurer will likely take this action because committing arson is a deliberate act that violates the terms of the insurance policy. As a result, the insurer has the right to cancel the policy and recover any payments made to the insured. Option A is incorrect because paying the claim as usual would go against the terms of the policy. Option B is incorrect because increasing the premium would not address the issue of the policy being violated. Option D is incorrect because offering a settlement would not address the issue of the policy being violated.