Florida Property & Casualty Insurance

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Barry was driving his car in Florida where he has lived all his life when he is hit by an at-fault driver. Barry has $10,000 in medical bills, basic PIP with a $1,000 deductible and no medical payments coverage. How much will the at-fault driver have to pay for Barry's injuries?

$2,800 - $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP. Barry can hold the at-fault driver responsible for the difference of PIPs maximum limit of $10,000 and the $7,200, which is $2,800

$2,800 - Hide Feedback $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP. Barry can hold the at-fault driver responsible for the difference of PIPs maximum limit of $10,000 and the $7,200, which is $2,800

Trey has a collection of rare foreign coins, which are stolen. His Crime Policy provides coverage for these coins as part of his business property. The collectible value of the coins is $5,000; the monetary value of the coins is $300. Assuming there is no deductible, how much will Trey's policy pay?

$300

$300 - Money is valued at its face value

All of the following are Supplementary Payments under the Personal Automobile Policy EXCEPT:

$300 bail bonds - Hide Feedback In providing a defense against claims, the company must pay various associated costs to investigate and resolve the claim, such as interest accruing after judgments, premiums for appeal bonds and bonds to release attachments. In addition, the company must pay for the cost of bail bonds, up to $250, which are required of the insured because of accidents including related traffic law violations, and up to $200 per day for the insured's loss of earnings because of attendance at trials or hearings at the insurer's request

Rob has PIP with a $1,000 deductible. He has an auto accident causing $6,000 in medical bills. How much will his PIP pay?

$4,000 - $6,000 - $1,000 deductible = $5,000 x 80% = $4,000

Rob has PIP with a $1,000 deductible. He has an auto accident causing $6,000 in medical bills. How much will his PIP pay?

$4,000 - 6,000 - $1,000 deductible = $5,000 x 80% = $4,000

The Discovery Period is:

12 months or 60 days after expiration

The Discovery Period is:

12 months or within 60 days after its expiration

The insurer must give how many days written notice of the nonrenewal, cancellation, or termination?

120

in the Business Income Coverage form, the Max Period of Indemnity option gives coverage for how many days?

120

if they are with the company for at least 5 years the company must give

120 day notice

In the Business Income Coverage Form, the Maximum Period of Indemnity option gives coverage for how many days?

120 days

The insurer must give how many days written notice of the nonrenewal, cancellation, or termination?

120 days

In order to receive replacement cost for a Boiler and Machinery loss, the property must be replaced within:

18 months

Which of the following is a "Defined Motor Vehicle" under the Florida No-Fault Law?

18 wheel tractor-trailer rig

If a loss occurs under the Building and Personal Property Coverage Form with the optional replacement cost provision, how long does the insured have to give intent to replace the damaged item in order to receive replacement cost adjustment?

180

if a loss occurs, how many days does the insured have to report?

180

If an insured lives on 10 acres of land, how much of their land must be inundated in order to be considered a flood?

if an insured lives on 10 acres of land, how much of their land must be inundated in order to be considered a flood?

2 acres. A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from: a. Overflow of inland or tidal waters; b. Unusual and rapid accumulation of runoff of surface waters from any source; and c. Mudflow

Jenny's Craft Shop has a Businessowners policy with $1,000,000 for liability. The policy includes Products and Completed Operations coverage. The aggregate for this coverage is:

2 million

Which of the following is NOT a common deductible in an Aircraft Hull Policy?

Which of the following is not an eligibility requirement for the RCBAP Flood Policy?

25% mercantile floor area

In the Building and Personal Property Coverage Form, the most an insured can collect for removal of debris after a loss is:

25% of loss paid plus 10k

in the Building and Personal Property Coverage form, the most an insured can collect for removal of debris after a loss is

25% of the loss paid, plus $10,000

What building coverage is built into the Businessowners Policy for newly acquired locations?

250k for 30 days

The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is:

25k

The maximum limit payable for expediting expenses in the unendorsed Boiler and Machinery policy is:

25k

Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000. Insured losses include $25,000 furniture, clothing and other ordinary personal property plus $5,000 damage to guns and $5,000 damage to jewelry, furs. Insured will recover:

29 k Personal Property is typically 50% of the dwelling, which in this case is $100,000. Therefore, we know the insured has up to $50,000 for Personal Property. So, $25,000 is allowed for furniture, clothing and other ordinary personal property. $2,500 is allowed for damage to guns. $1,500 is allowed for damage to jewelry, furs

Which of the following is NOT a possible consequence for Aiding and Abetting an Unauthorized Insurer:

2nd degree felony

After the expiration of a Workers Compensation Policy, how many years does the insurer have to audit the insured's records?

Part B Medical Payments coverage applies to medical services rendered after an accident up to how many years?

3 years

Within how many days is a Medicare Supplement Policy returnable for a full refund?

The Building and Personal Property Coverage Form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. How many days must the building be vacant for the provision to apply?

60 days

The Building and Personal Property Coverage Form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. how many days must the building be vacant for the provision to apply?

60 days

Under the Dwelling Program forms, vandalism is not covered after the building has been vacant for how many days?

60 days

Temporary Total Disability is compensated at:

66 2/3 of AWW for 104 weeks

Temporary Total Disability is compensated at:

66 2/3 or 66.67 of AWW for 104 weeks

How many insuring agreements are there in a Commercial Crime Policy?

Voluntary throwing overboard of parts or cargo to save the vessel from sinking is defined as:

Jettison

A process wherein the Surety and Principal exercise joint control over assets is defined as:

Joint Control

Employee Theft coverage may be written in all of the following ways EXCEPT:

Joint Coverage

The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT

Loss Settlement Contract

The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT:

Loss Settlement Contract

Which of the following covers only losses that both occurred and were discovered during the policy period, or within one year of its expiration?

Loss Sustained

What does Employment Related Practices Liability cover?

Liability arising out of injury from employment related offenses

This bond guarantees conformity with general laws and proper collection and payment of taxes:

License Bond

Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license?

Life insurance written by carrier who is also represented for Property and Casualty

After two years from the date of issue only fraudulent misstatements in the application can be used to void the policy or deny a claim. This is defined as:

Limitations on insurer defenses

Which of the following benefits are paid under Workers Compensation Laws?

Medical Rehabilitation Disability Income

All of the following are considered Aircraft Liability Coverages EXCEPT:

Medical Liability

Which of the following is not a way to purchase Uninsured Motorist Coverage?

More than your bodily injury limits

The typical grace periods in Health Insurance for weekly, monthly, and all other premium payments are:

7-10-31

Commercial Package Policies combine or "package" individual lines of insurance into this type of contract:

A Single

$30,000

A combined single limit that will pay for liability and property damages up to the stated amount.

The coverage section of the Boiler and Machinery Coverage Form states the insurer will pay for direct damage to covered property from:

A covered cause of loss

All of the following are considered Employment EXCEPT:

A farm with four full-time employees A small farm should have five or less full-time employees

All of the following are considered Employment EXCEPT:

A farm with six full-time employees A small farm with five or less full-time employees is not considered an employment (General Lines Agent Study Manual, Unit 9, Employers and Employees).

The coverage endorsement that pays actual lost profits and continuing expenses subject to the limit selected is defined as:

Actual Loss Sustained Business Interruption

The coverage endorsement that pays actual lost profits and continuing expenses subject to the limit selected is defined as:

Actual Loss Sustained Business Interuption

Which of the following best describes the Business Income Coverage provided under the Businessowners policy?

Actual loss sustained up to 12 months with no dollar limit

All of the following are benefits of a Commercial Package Policy EXCEPT:

Additional policies to underwrite

The FAJUA is composed of:

All companies licensed to write auto insurance in Florida

Health insurance insures against loss by:

All of the Choices Provided

Which of the following does not trigger the Florida Financial Responsibility Law?

An accident where the police are called

Which of the following does not trigger the Florida Financial Responsibility Law?

An accident where the police are called - Hide Feedback Operation of the law is 'triggered' by an accident, which involves Bodily injury (BI); Property damage (PD) when a vehicle is rendered inoperative; Serious traffic violations

An insurance company that is licensed to do business in Florida is defined as:

An authorized insurance company

What are the two coverage forms offered in the Businessowners program?

Basic Form/Special Form

A person who holds property of others for a special purpose and returns it at some future time is defined as a(n):

Bailee

Areas of eligibility in a Businessowners Policy include all of the following EXCEPT:

Banks

Fraud by the master or crew at the expense of the ship owner with the intention of reaping gains is defined as:

Barratry

The Consumer Choice Statute states:

Consumers may select and maintain their agent of choice

Which of the following is NOT covered by Part Two: Employers Liability?

Claims for wrongful termination

Jim and Glenda go to the local branch of their bank for a home loan. The loan officer tells them that in order to qualify for the loan they must purchase insurance from the bank. This is an example of:

Coercion

When the majority of insurance written is for family members it is defined as:

Controlled Business

Which of the following is NOT a possible consequence for Aiding and Abetting an Unauthorized Insurer:

Conviction of a second-degree felony

Pays for physical damage to the business' vehicle resulting from contact with another object:

Collision

Commercial Property Insurance is also known as

Commercial Fire and Allied Lines

Under the Employment-Related Practices Liability Program, the single limit of insurance includes:

Damage Expenses Defense Expenses

All of the following are duties of the insured after a loss EXCEPT

Disclose information to the other party's attorney

The __________ states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence:

Doctrine of Proximate Cause

An insurance company formed under the laws of Florida is defined as:

Domestic

Which of the following are considered openings in a dwelling?

Double Pained Window Doors with glass Doors without glass

Under a Boiler and Machinery Coverage Form, the insurer will defend the insured against claims or suits arising out of covered occurrences. What is the dollar limit for this coverage?

No limit

Which of the following is NOT true of corporate officers as they relate to Workers Compensation?

No more than 3 officers can be exempted in non-construction operations

The coverage which pays the cost of temporary repairs and to fasten permanent repairs or replacement is defined as:

Expediting Expense coverage

The coverage which pays the cost of temporary repairs and to fasten permanent repairs or replacement is defined as:

Expediting expense coverage

Parts E and F: other provisions

Extended non auto Towing and labor Coverage for excluded equipment Named non owner coverage Miscellaneous type vehicle Joint ownership coverage Increased limit transportation Extended PIP Additional Personal injury protection ( only available when extended pip is purchased)

There is no coverage for aircraft not registered under a standard category airworthiness certificate, in full force and effect, by the:

Federal Aviation Administration

Which of the following guarantees the faithful performance of a person appointed by a court or named in a will?

Fiduciary Bond

Under a Personal Articles Floater, which of the following is covered as valued property?

Fine Arts

Under a Personal Articles Floater, what is covered as VALUED property?

Fine Arts. valued property. One coverage difference that distinguishes fine arts from the other classes of property is that "valued" coverage applies automatically

Which of the following is NOT considered a Peril of the Sea?

Fire

A loss caused by Jettison, which is settled by each paying their proportionate share of the loss, is defined as:

General Average

The time after the premium due date where the policy remains in force even if the premium has not been paid is defined as:

Grace Period

This program provides comprehensive health services to members for a prepaid fixed fee with a goal of preventive activity:

HMO

What forms are available for homeowner's coverage through Citizens?

HO-3, HO-4, HO-6, HO-8

The coverage that protects the insured's exposure for damage to an aircraft in his care, custody or control while being serviced or stored is defined as:

Hangarkeepers Liability

All of the following are features of Major Medical Insurance EXCEPT?

Has limited coverage for most expenses

Which of the following situations requires nonresidents to comply with the Florida No-Fault law?

Have a vehicle in Florida more than 90 days of the preceding 365 days

All of the following are penalties for non-compliance with the Florida Financial Responsibility Law EXCEPT:

Have your car impounded

Which of the following roof types will be eligible for a Wind Mitigation discount?

Hip

Jeremy's airplane is in the shop being repaired. What coverage would he need to be covered in a rented airplane?

His policy will automatically cover the exposure

The policy that pays a flat amount per day of hospitalization regardless of expenses or other insurance is defined as:

Hospital Indemnity Insurance

Which of the following protects against the risk of loss or damage to an insured aircraft itself?

Hull Coverage

Which of the following events would be covered under an HO-3? I. A sewer line became clogged and the toilet in the house backed up and overflowed, damaging the carpet. II. Wind blew a front door open and rain damaged the carpet. III. The neighbor's German Shepard damaged the garage doorframe while trying to get in the insured's garage to eat the dog food stored there.

II and III only

Trucker coverage form

ISO discontinued this form

What is the purpose of the Extended Period of indemnity option in the Business Income Coverage Form?

Increases the 30 day Extended Period of Indemnity grant up to 730 days

Who guarantees repayment of a bond?

Indemnitor

This endorsement will extend liability insurance and any physical damage insurance to cover the insured while driving a non-owned vehicle:

Individual Named Insured

All of the following are considered Contract Bonds EXCEPT?

Infrastructure Bond

Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not actually install them until Tuesday. What kind of policy will they need to cover any loss to the cabinets?

Installation Coverage Form

Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not actually install them until Tuesday. What kind of policy will they need to cover any loss to the cabinets?

Installation Floater

A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies is defined as

Insurance

what is the purpose of the Extended Period of Indemnity option in the Business Income Coverage Form?

increases the 30 day Extended Period of Indemnity option in the Business Income Coverage form

a quality withing an object tending to damage or destroy itself

inherent vice

liberalization

insured gets the benefit of any broadened coverage if the company adopts a form revision in the 45 days without premium

A process wherein the Surety and Principal exercise joint control over assets is defined as:

joint control

can NOT be added to the Business Auto Coverage Form by separate endorsement

liability

This bond guarantees conformity with general laws and proper collection and payment of taxes:

license bond

in order for business personal property to be covered under the Building and Personal Property coverage form it must be

located on or within 100 feet of premises

All of the following are considered Aircraft Liability Coverages EXCEPT:

medical liability

Which of the following coverages provides medical expenses for bodily injuries by accident, without regard to legal liability?

medical payments

The Builders Risk Coverage Form contains a provision requiring the insured to carry an amount of insurance that equals the completed value of the building. This is defined as:

need for adequate insurance

Are Growing Crops covered under Farm Coverage Form?

Under a Boiler and Machinery Coverage Form, the insurer will defend the insured against claims or suits arising out of covered occurrences. What is the dollar limit for this coverage?

no limit

symbol 9

non owned autos only

45 day notice for

non renewal and cancellation

In a Business Automobile Coverage Form, if you want to apply coverage to specifically described vehicles, which symbol would you use?

symbol 7

if Judith wants collision coverage for only a few autos out of an entire fleet, which symbol would be used on the declarations?

symbol 7- specifically described autos

Which of the following is not one of the "Thresholds" in the "No-Fault" law?

temporary injury of the insured

In the Building and Personal Property Coverage form, all of the following are considered building items

the structure the fridge floor coverings

Hurricane deductible

there is a standard deductible of $500 for all perils OTHER than hurricane. a $500 minimum deductible applies for hurricane, but the insurer must off the option of 2%, 5%, or 10%.

section 4 - Business Auto Conditions

this section describes the insured business and the insurance company's obligations if a loss should occur

What is false concerning flood insurance?

to be insured for flood, a new building must only have the walls up

Primary purpose of no fault law

to contain rising costs of Auto Liability insurance No-Fault put an end to the thousands of small claims that were flooding the court system.

Home owners, Section 2, Coverage E liability includes golf garts in private residential communities with golf course. True or false.

true

Knowingly using an incomplete comparison of insurance policies in order to get the insured to buy a policy from you is defined as:

twisting

When Securities are part of a crime loss, how are they involved?

valued at date of discovery

Which of the following best describes how PIP relates to other coverages?

PIP is primary to all coverages except Workers Comp

Which of the following best describes how PIP relates to other coverages?

PIP is primary to all coverages except Workers Comp -Hide Feedback PIP is primary against all other forms of medical and disability insurance coverage, and is excess over Workers Compensation

A selected group of hospitals and medical practitioners in a given area that have joined together in an effort to reduce medical costs is defined as:

PPO

Which of the following is considered an "Employee"?

Part-time employee working 10 hours every week

Which of the following best illustrates the concept of Indemnity

Paying the insured the actual cash value (ACV) of a television that is 4 years old

A disabled person who is capable of performing some type of gainful work would be classified as:

Permanent Impairment

The bond that would be required to host a soccer event is defined as:

Permit Bond

what is the settlement type for Flood?

Replacement Cost

Which of the following is NOT a benefit under PIP?

Replacement services paid at 10%

Which of the following is NOT a benefit under PIP?

Replacement services paid at 10% Replacement Services are paid 100% (General Lines Agent Study Manual, Unit 3, No-Fault).

Another name for a "Cost Plus" plan is:

Retrospective Rating Plan

Which of the following defines how the roof trusses are attached to the wall framework?

Roof to Wall Connection

During a break-in at a business, the safe is removed from the location. This is defined as:

Safe Burglary

Which of the following statements is false regarding Co-Payment:

Subject to a minimum amount

liability section one trailers

Under section 1, liability coverage is also extended to trailers with a load capacity of 2,000 pounds or less, if they are designed primarily for use on pulic roads.

All of the following are considered "Transacting Insurance" EXCEPT:

Underwriting new business

All licensed residential property insurance companies in Florida must accept this form when reporting mitigation features:

Uniform Mitigation Verification Inspection Form

Employee Theft is defined as:

Unlawful taking of property to the deprivation of the insured

The limit on medical coverage in the Workers Compensation Policy is

Unlimited

Aircraft Policies may be written as:

Valued Actual Cash Value Replacement Cost

Which of the following pays an agreed dollar limit for each day of total interruption, or a proportionate part of that limit for partial interruption?

Valued Business Interruption

An amount is stated up front, and in the event of a loss, the insured will receive that same amount, regardless of any external factors. This is defined as:

Valued Policy Law

When Securities are part of a crime loss, how are they involved?

Valued as of the date of discovery

Under a Personal Articles Floater, there is 30 days automatic coverage for newly acquired property for things like jewelry, furs, cameras. but not...

fine arts

Which of the following is NOT considered a Peril of the Sea?

fire

Which of the following is a basic type of Excess Liability Policy?

follow form

garage insurance

for selling, servicing, repairing or parking automobiles. combo of auto insurance, and coverage for the business liability hazards

A loss caused by Jettison, which is settled by each paying their proportionate share of the loss, is defined as:

general average

Symbol 8

hired autos only

Part C- Uninsured Motorists

While liability insurance protects an insured against claims of others, uninsured motorists (UM) coverage is a form of coverage to pay compensatory damages for bodily injuries, under one's own policy, for amounts which would otherwise have been recovered from the liability insurance of another, either an uninsured motorist, or one who carries liability limits that are lower (known as Underinsured Motorist) than the insured's damages. In other words, UM is a first party coverage

this symbol is used to designate coverage for owned autos required to have no fault coverage

symbol 5-

Symbol 1

"Any Auto"- this means the policy covers any auto, whether owned by the insured, hired by insured, or neither

symbol 2

"Owned Autos Only" - All automobiles owned

Symbol 3

"Owned Private Passenger Autos Only." Like symbol 2, but does not cover anything other than private passenger. no trucks, buses

The Fire Department Service Charge under a Businessowners Policy is:

$1,000

Under Additional Coverages, how much applies for loss assessments imposed by an association against the insured for damage to property caused by a peril insured against under Coverage A?

$1,000

Jenny and Sue are riding with Jim in Jim's car. All individuals are Florida residents who own cars and carry basic PIP with no deductible. Jenny has $4,000 in medical bills, Sue has $12,000 in medical bills and Jim has $20,000 in medical bills. How much will PIP pay for Jim?

$10,000

$10,000 $20,000 x 80% = $16,000 HOWEVER, PIP only pays a maximum of $10,000

Stephanie has $100,000 non-stacked Uninsured Motorist with three cars. She flips her car after being hit by a car that leaves the scene of the accident. What is the most she can collect from her Uninsured Motorist coverage?

$100,000 - We are looking at non-stacked coverage, so she would receive up to $100,000. Had she chosen the stacked option, and with three vehicles, she would have been eligible for up to $300,000

$12,000 x 80% = 9,600

The typical coverage for rental reimbursement on a Mechanical Breakdown policy is:

$15 per day/$75 maximum

The Forgery or Alteration coverage under a Businessowners Policy is:

$2,000

The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is:

$25,000

The maximum limit payable for Expediting Expenses in the unendorsed Boiler and Machinery policy is:

$25,000

What building coverage is built into the Businessowners Policy for newly acquired locations?

$250,000 up to 30 days

$29,000 less any deductible

One night while driving home from dinner, Doug hits an animal on a dark stretch of road. He is carrying Part D-damage to your auto, on his vehicle with a $250 deductible for other than collision coverage and a $500 deductible for collision. The damage to his vehicle is $3,250. How much will his policy pay?

$3,000

$3,000 - Collision with an animal will fall under "Other than Collision Coverage," which has a $250 deductible. $3,250-$250 = $3,000

Jenny and Sue are riding with Jim in Jim's car. All individuals are Florida residents who own cars and carry basic PIP with no deductible. Jenny has $4,000 in medical bills, Sue has $12,000 in medical bills, and Jim has $20,000 in medical bills. How much will PIP pay for Jenny?

$3,200 - $4,000 (no deductible is mentioned so we do not need to subtract anything from the $4,000) x 80% = $3,200

Mike has a Toyota Highlander covered on his Personal Auto Policy with a $100 deductible for Other Than Collision, and a $500 deductible for Collision. One day while on his way to work, he runs into a pipe sticking out off the back of a truck and it results in windshield damage. It will cost $400 to replace damaged glass. How much will his insurance policy pay?

$400 In the state of Florida, windshields are covered free of charge without the insured having to pay a deductible. There is a lot of fluff in this question and you shouldn't let it distract you from the key points needed to solve it

The monetary limit that applies to the loss of manuscripts, drawings, and records or the cost of reconstructing them is:

$5,000

What amount applies to Business Personal Property other than "Money and Securities," "Valuable Papers and Records" and "Accounts Receivable" while off premises?

$5,000

What is the per-person Medical Payments limit under the Businessowners Liability Coverage Form?

$5,000

A special limit applies to articles whose principal value is precious metals, precious or semiprecious stones, pearls or furs, and to the physical or intrinsic value of manuscripts, drawings or records. It is:

$5,000 per occurrence

What is the Medical Payments coverage limit for a Commercial General Liability Policy?

$5,000 per person

What is the standard All Perils deductible in the Commercial Property Policy?

$500

What is the standard deductible for Employee Theft coverage?

$500

what is the standard All Perils deductible in the Commercial Property Policy?

$500

Which of the following is NOT a basic limit under the Commercial General Liability Policy?

$55,000 fire damage limit

Which of the following is NOT a basic limit under the Commercial General Liability Policy?

$55,000 fire damage limit -

Extended PIP

- 100% medical - 80% work loss -100% replacement

Coverage Forms

- Building and Personal Property Coverage Form - Builders Risk Coverage Form - Business Income Coverage Form - Extra Expense Coverage Form - Legal Liability Coverage Form - Condominium Association Coverage Form - Condominium Commercial Unit Owners Coverage Form - Leasehold Interest Coverage Form

the Business Auto Policy includes one of three coverage forms in addition to the Commercial Package Policy's Common Policy Conditions and Declarations

- Business Auto Coverage Form - Garage Coverage Form - Truckers Coverage Form

Basic Outline of The Commercial Property Contract

- Declarations - Common Policy Conditions - Commercial Property Conditions - Coverage Form - Causes of loss form; Basic Broad or Special? - Endorsements (varies)

3 optional coverages under Building and Personal Property coverage form

- agreed value - building ordinance coverage - peak season coverage - Value Reporting, Inflation Guard, and Replacement Cost are additional optional coverages

Building and Personal Property Coverage Form

- buildings - your business personal property - personal property of others

section 3- physical damage - provides coverage for prop damage to the business' covered vehicles under 3 classifications

- comprehensive - specified causes of loss - collision

Section 2 liability does NOT apply to

- liability assumed under any contract, except for liability under insured contracts - employees injuries; employers liability or responsibilities under a worker comp or similar law, or liability of one employee to another in the course of employment - damage to property owned or transported by or in the care of the insured - liability resulting from handling of property before it is moved - liability from movement of property by a mechanical device - liability for pollution - liability from mobile equipment (cherry pickers, air compressors) - racing stunts or demolition contests - war

Types of Automobiles are covered under a Business Auto Policy

- private passenger type auto -commercial autos- trucks, truck tracktors, semitrailers, commercial trailers, - public autos - including vehicles used as public or livery conveyances (defined as the transporting of people/ goods such as taxi or delivery service) - special types of vehicles including self propelled vehicles with permanently attached equipment like snow removal, road maintenance and street cleaning, cherry pickers and air compressors

The Builders Risk Coverage Form Terminates for all of the following reasons:

- property abandoned with no intent to complete - policy termination date - insured's interest ceases

Declarations declares

- the insureds and property covered - limits of insurance - deductibles - inception and expiration dates identify the forms and endorsements that apply - contain certain information relevant to the risk such as mortgage holders

All of the following perils are covered in all of the Causes of Loss forms and optionally may be excluded

- vandalism - windstorm -sprinkler leakage

As a general rule, Inland Marine forms do not cover which of the following?

- wet marine - merchandise in course of manufacture - real estate

what are some rating factors?

- where they are garaged - radius of operation - size/ type of business - local business or do they travel? - local is 50 miles. intermediate is 50-200 miles. long distance is over 200 miles - how is business classified: retail (deliver goods to homes), Service ( job site to job site), Commercial (all others that don't fit into retail or service) - specialized equipment is rated different like buses are rated at their capacity

Optional Endorsements

-Named Individuals- broadened PIP - Individual Named insured - drive other car coverage

What are 3 common exclusions to all 3 Causes of Loss Forms?

-Seizure by government authority -utility service failure outside the building - flood

Which of the following is true of corporate officers as they relate to Workers Compensation

-They are considered employees - They can exempt themselves from coverage - No more than 3 officers can be exempted in construction operations

Which of the following is not a valid deductible for hurricane in the Dwelling program?

Under a Commercial General Liability Contract, how many days notice of cancellation must the insurer provide for non-payment of premium?

10/20/10 limit breakdown

10 = $10,000 Liability per person injured -- If only one person is injured, this is the most that will pay out. 20 = $20,000 COMBINED TOTAL Liability for all injuries -- If 2 or more persons are injured, this is the most that will pay out. 10 = $10,000 Property Damage

Pip benefits

10,000 limit - 80% medical - 60% work loss -100% replacement

non renewal for a commercial residential property requires a notice of

100 days

100 k. We are looking at non-stacked coverage, so she would receive up to $100,000. Had she chosen the stacked option, and with three vehicles, she would have been eligible for up to $300,000

For private passenger vehicles in the FAJUA, what is the maximum limit available for BI and PD?

100/300/50

How many days notice must a Health Insurance company give when canceling a Health Policy?

How many days notice must a Health insurance company give when canceling a Health Policy?

If an agent had been licensed for more than 6 years, how many hours of continuing education are required every 2 years?

in first 90 days at least ( ) days notice before cancellation

20 days

How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period?

If a licensee has a change in name or address, how long does he have to notify the Department of Insurance?

30 days

automatic coverage

30 days automatic coverages is provided for 1. new buildings under construction at the insured premises, or building acquired at other premises up to 250k per building, and 2. newly acquired business, personal property at insured and acquired locations, no more than 100k at each building

Under Mechanical Breakdown Coverage, new cars are eligible for service up to:

36 Months/36,000 Miles - If this question had asked about used cars, the coverage would be 12 months or 12,000 miles

If an insurer wants to non-renew a non-residential Commercial Property Policy, how many days notice must they give the insured?

Once a Workers Compensation policy has been in effect for over 90 days, the cancellation/nonrenewal notice requirement is:

45 Days

During the first 60 days that an automobile policy is in effect the company can cancel for any reason except non-payment of premium with how many days notice?

45 days

Once a Workers Compensation policy has been in effect for over 90 days, the cancellation/nonrenewal notice requirement is:

45 days

If a licensee has their appointment terminated, how long does he or she have to be reappointed before his license is terminated?

48 months

typically what percentage of dwelling coverage is personal property?

50%

What amount applies to Business Personal Property other than "Money and Securities," "Valuable Papers and Records" and "Accounts Receivable" while off premises?

5k per occurance

Ryan is involved in a serious car accident and later dies in surgery. His PIP coverage has already paid out a total of $10,000. How much will PIP pay for a death benefit?

5k. The newest ruling by the FLDFS states that a death benefit of $5,000 can be paid over and above the $10,000 maximum PIP limit

The pre-existing conditions provision in Medicare Supplement Policy is limited to:

6 months

Vandalism is not covered after the building has been vacant for how many days?

Value of Property $100k, 80% coinsurance clause applies. Amound carried is 80k. there is an 80k loss. recovery will be

80k. Since the insured carried the equivalent of 80% of the property value at the time of loss, he will receive the loss paid in full, which is $80,000

Section 1- Covered Autos

9 symbols - 1. Any Auto ( owned by insured, hired by insured, or neither) Only applied to liability - 2. Owned Autos Only ( - 3. Owned private passenger autos only (blanket, automatic coverage like symbol 2 but does not include Symbol 4- Owned Autos other than private passenger auto - Symbol 5- Owned autos subject to no- fault" - symbol 6- owned autos subject to a compulsory uninsured motorist law. NOT USED IN FL - Symbol 7- Specifically described autos- - Symbol 8- hired autos only - symbol 9- non owned autos only

9,600

9,600 $12,000 x 80% = 9,600 (General Lines Agent Study Manual, Unit 3, No-Fault).

if an insurer wants to non renew a non residential Commercial Property policy, how many days notice must they give?

The Boiler and Machinery Policy provides automatic coverage for boilers at newly acquired locations for:

90 days

Which of the following is NOT true regarding sole proprietors and partners in the non-construction industry as they relate to Workers Compensation?

A maximum of three can elect to be covered

Operation of the law is "triggered" by an accident, which involves 3 scenarios :

A. Bodily injury (BI) B. Property damage (PD) when a vehicle is rendered inoperative C. Serious traffic violations 1. Examples Include: Driving under the influence (DUI), committing a felony with a motor vehicle, and so on.

The Commercial General Liability Claims-Made Coverage Form covers:

Accidents happening on and after the retroactive date and reported during the policy period or reporting period

Which of the following pays the principal sum for death or dismemberment if the named insured requests it and the company is released from further liability?

Admitted Aircraft Liability

All of the following are rating elements for the Business Auto Coverage Form EXCEPT:

Age of the driver(s)

Which of the following is NOT included in an Aviation Policy?

Aircraft flying under conditions requiring special FAA permit even if a waiver is granted

A coverage that is similar to premises and operations coverage in the Commercial General Liability Policy covering bodily injury and property damage liability for aviation risks is defined as:

Airport and Air Meet Liability

An insurance company formed in Berlin, Germany is defined as:

Alien

An insurance company formed in London is defined as:

Alien

For commercial vehicles in the FAJUA, what is the maximum limit available for BI and PD?

Any higher limits required of the insured by any law or regulation.

In the FAJUA, what are the maximum liability limits available to commercial vehicles?

Any limits required by law

When authority is given to a licensee to transact or adjust insurance it is defined as:

Appointment

All of the following are ways that liability limits can be expressed EXCEPT:

Average Limit

Which of the following exposures is NOT included in a standard commercial package:

Aviation Surety Ocean Marine

Part D-Damage to your auto applies to all of the following EXCEPT:

Awnings or cabanas or equipment designed to create additional living facilities -C is the correct answer because it is specifically excluded under Part D

QRS Construction Company wants to provide the local school district with a price for building a new grammar school. In order to accept the price, the school board needs a bond that would pay the difference between QRS's price and the next highest price. What kind of bond does QRS need to provide to the school district?

Bid bond

Bid bond - The Bid Bond is required to accompany a bid for a contract which will require that the successful bidder furnish further bond if awarded the job. The guarantee is that if the bid is accepted, the bidder will enter into the contract and will satisfy further bonding requirements for the job

This Hospital Form applies with "medical incident" defined as an act or omission in furnishing of professional services related to making of a blood donation under the supervision of the insured:

Blood Banks

This bond is required of investment companies guaranteeing against misrepresentation of Securities:

Blue Sky Bond

All of the following are covered under Personal and Advertising Injury EXCEPT:

Bodily Injury

All of the following are covered under Personal and Advertising Injury EXCEPT:

Bodily Injury -

Sharon has a Personal Auto Policy and is towing a rented trailer. The trailer comes loose and damages property and injures people. Which of the following best describes how the PAP would apply?

Bodily injury and property damage are covered plus any damage to the non-owned trailer up to $1,500

Sharon has a Personal Auto Policy and is towing a rented trailer. The trailer comes loose and damages property and injures people. Which of the following best describes how the PAP would apply?

Bodily injury and property damage are covered plus any damage to the non-owned trailer up to $1,500 - Part D's limit of liability provision calls for payment of the lesser of actual cash value or the cost to repair or replace, and a special limit of $1,500 applies to any nonowned automobile that is a trailer

Coverages required in order to comply with the Florida Financial Responsibility Law are:

Bodily injury liability and property damage liability - Hide Feedback If, at the time of the occurrence (accident), there is auto liability insurance in effect with limits of not less than 10/20/10 (or $30,000 single limit) the law's requirements are satisfied. Alternate ways that satisfy the law include being a qualified self-insurer or posting a bond or cash that guarantees responsibility for the 10/20/10 limits

Uninsured Motorist coverage under the Personal Automobile Policy pays for which of the following?

Bodily injury to the insured caused by a hit and run driver - While liability insurance protects an insured against claims of others, uninsured motorists (UM) coverage is a form of coverage to pay compensatory damages for bodily injuries, under one's own policy, for amounts which would otherwise have been recovered from the liability insurance of another, either an uninsured motorist, or one who carries liability limits that are lower (known as Underinsured Motorist) than the insured's damages. In other words, UM is a first party coverage

Which of the following provides important mechanical breakdown coverage generally not available under any other insurance policy?

Boiler and Machinery Insurance

Boiler and Machinery insurance protects an insured against the effects of catastrophic property loss to which of the following?

Boilers Generators Compressors

Robin has a Personal Auto Policy covering her Chevrolet Camaro which has liability, PIP, property damage, collision and other than collision coverages. Robin trades in the camaro on July 2nd and replaces it with a new Mitsubishi eclipse. Just 12 days later Robin is in a wreck where she is at fault and damages both her car and another car. Robin never called to tell her agent about the trade. Which is true?

Both cars are covered by Robin's policy - Review the lengthy list of rules located under "Newly Acquired Automobile."

The endorsement used to cover value of undamaged portion of building which must be demolished is defined as

Building Ordinance

DP-1

Building losses are paid ACV, Content losses are paid ACV, lightning is a covered loss, but building losses are NOT covered on an All Risk basis.

the form that is used for income replacement under the Commercial Property program is defined as

Business Income Coverage Form

Business Income, and Period of restitution.

All of the following are optional coverages under the Building and Personal Property Coverage Form EXCEPT:

Business income coverage

Which of the following is NOT a characteristic of the Small Business Boiler and Machinery Policy?

Business interruption is 25% of the limit but not an additional amount

Maxx Furniture Sales, Inc. has a party celebrating the end of a strong year. As part of the celebration, Maxx sponsors an open bar. One of Maxx's employees leaves intoxicated and is involved in a traffic accident where a third party is injured. How will the Commercial General Liability Policy respond?

CGL pays since Maxx is not in the business of selling alcohol

All of the following are underwriting considerations for bonds

Capabilities, Capital, Character

Which of the following coverages protects against legal liability for loss or damage to cargo or baggage?

Cargo Liability

Which of the following is NOT covered under an Aircraft Liability Policy?

Cargo Liability

The insurers responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as a(n)?

Conditional Contract

ABC Health Insurer does not renew your policy since renewals are being declined on all similar policies within the state of Florida. What type of policy is this?

Conditionally Renewable

All of the following are penalties for not complying with the No-Fault Law EXCEPT:

Confiscation of automobile

A peril that is unique to policies covering dry cleaners is defined as:

Confusion of Goods

Loss due to spoilage from lack of power, light, heat, steam or refrigeration is defined as:

Consequential damage

When the cost to salvage and recondition a vessel exceeds its value, the loss is known as:

Constructive total

Which of the following best describes an insured's position regarding coverage under the Commercial General Liability Policy when a product is manufactured in the U.S and a claim occurs in Japan?

Covered only if the lawsuit is brought in the U.S., Canada, or Puerto Rico

Which of the following are excluded under Employment Related Practices Liability?

Criminal Acts Americans with Disabilities Act Sexual Harassment

Mr. Smith conducts farming operations for his neighbor based on a $5,000 annual contract. If he backs his tractor into someone else's truck, what would he need on his farm liability policy to be covered?

Custom farming endorsement

Fire, Vandalism, Volcanic Action are all covered causes of loss in the Cause of Loss- Basic Form. What is not covered?

Earthquake

Dui limits

Effective 10/1/2007, - must purchase limits of 100/300/50 or post a bond in the amount of $350,000 for a minimum three-year period. After 3 years return to the standard coverage limits. -required to keep proof of insurance in his or her possession at all times.

If an insured elects a lump sum benefit instead of a monthly disability benefit it is defined as:

Elective Indemnity

All types of taking property by force is defined as:

Enemies

The Retroactive Date:

Establishes the date when claims made coverage begins

All of the following are located on a Boiler and Machinery Coverage form EXCEPT:

Exhibits

Larry has a Personal Automobile Policy. His employer also gives him a vehicle to drive which he is able to use personally as well. Larry wants to make sure that his PAP covers him while he is driving the furnished car. What endorsement would you add to his PAP?

Extended non-owned coverage -This coverage is furnished or available for the regular use of the person, for using all types of non-owned autos in business, and for using non-owned autos when carrying persons or property for a fee

Which of the following is NOT true of the Basic Extended Reporting Period in a Claims-Made Policy?

Extends the policy period by 60 days

Which of the following pays for extraordinary expenses incurred to maintain ongoing operations, over and above normal expenses that would have been experienced had there been no accident to the covered object:

Extra Expense Form

Established in 1973, this association was created for applicants who are unable to obtain automobile insurance in the private market:

FAJUA

This association was created for applicants who are unable to obtain automobile insurance in the private market:

FAJUA

Established during the 1993 legislative session to provide employers with Workers' Compensation Insurance in the State of Florida who are unable to obtain coverage in the private marketplace:

FWCJUA

Cause of Loss - Broad Form- includes all basic perils plus some additional perils. what is one of the additional perils?

Falling objects

All of the following are types of property that can be covered under a Personal Articles Floater EXCEPT:

Firearms

What is a basic type of Excess Liability Policy?

Follow Form

An Excess Policy that provides the same coverages, provisions, and exclusions as the underlying policy is called:

Follow Form Excess

Which of the following insures losses to the fraudulent transfer of funds through the use of a telephone or fax machine:

Funds Transfer Fraud

An insurance company formed under the laws of another state is defined as:

Foreign

Which of the following is NOT a coverage territory for Commercial General Liability?

France - The CGL coverage territory includes the U.S. and its territories or possessions, Puerto Rico and Canada. The definition is expanded to all other parts of the world as to BI or PD provided the suit is brought in the U.S., its territories or possessions, Puerto Rico or Canada, and the insurer agrees to the resulting settlement

TRS Inc. has an accident at sea and loses the cargo onboard its vessel. In order to be paid for the shipping charges that were lost, they would need to be insured by which of the following coverages?

Freight Coverage

All of the following are true of the Lawyer's Professional Policy EXCEPT:

Includes coverage for paralegals

Which statement below best describes the insured's position under the Florida No-Fault Law when the total medical and work loss bill exceeds the PIP benefits without exceeding a threshold?

Insured can sue for the economic loss not paid or payable under PIP; no suit for intangible damages such as pain and suffering

The Motor Truck Cargo Policy:

Insures a truck carrier for liability arising out of the transportation of cargo.

If an employer who is not required to carry Workers Compensation purchases a policy and an employee is injured, the employer:

Is obligated to furnish medical treatment or care

No Fault Law

It simply means that there is a limit on what a driver can sue another driver's insurance company for. qualitative threshold, which means that for certain injuries, such as death, disfigurement, or permanent disability, the driver can pursue litigation against the insurance company up to a certain dollar amount. Florida falls under this category. Only for Personal Injury Protection (PIP)

One cannot insure against a loss that is already known to have occurred. This is defined as:

Known Loss Rule

Property insurance covering the loss suffered by a tenant due to termination of a favorable lease because of damage to the leased premises by a covered cause is defined as

Leasehold Interest Coverage Form

Which of the following is not considered an owner of a "Defined Motor Vehicle" under the No-fault law?

Lessee of a vehicle for 3 months

All of the following coverages can be added to the Business Auto Coverage Form by separate endorse¬ment EXCEPT:

Liability

Luigi purchases a money order to make his car payment. The money order never makes it to the finance company and he has to replace it. What type of bond will the company need in order to replace the money order?

Lost Instrument Bond

An employee welfare benefit plan or other arrangement that is established or maintained to provide one or more of various insurance benefits (including health insurance) to the employees of two or more employers is defined as:

MEWA

All of the following are used to rate Business Automobile Policies EXCEPT:

Maintenance

Which of the following coverages provides medical expenses for bodily injuries by accident, without regard to legal liability?

Medical Payments

Part B: Medical Payments

Medical Payments is an auto insurance coverage that pays expenses incurred for necessary medical and funeral services to persons injured by accident. Payments are without regard to fault or legal liabilities. It is NOT a form of liability coverage for injuries sustained by passengers in another vehicle involved in an accident with the insured.

Willful deception of an insurance policy done by dissemination of information is defined as:

Misrepresentation

What type of property is protected under Computer Fraud Coverage?

Money Other Property Securities

This optional coverage insures against theft, disappearance, or destruction of money and securities:

Money and Securities

Which of the following is not a way to purchase Uninsured Motorist Coverage?

More than your bodily injury limits - The UM law requires that every policy that provides primary liability coverage for a specific motor vehicle must include "stacked" UM at the same limits as apply for Liability coverage, unless the insured, in writing, (1) rejects UM coverage; or (2) elects UM coverage at limits lower than those that apply for liability; or (3) elects "Non-stacked" UM coverage

Which of the following covers the liability of a common carrier for damage to property of others?

Motor Truck Cargo Policy

If Rhonda did not own a vehicle but wanted to purchase a policy to cover her for liability, medical payments and uninsured motorist while she drove someone else's car, what coverage would she purchase?

Named NonOwner Coverage - Named NonOwner Coverage provides Liability and Uninsured/Underinsured coverage for those that do not own a personal vehicle of their own

Who is responsible for enforcing and administering all aspects of Rating?

National Council on Compensation Insurance

Builders Risk Coverage Form contains a provision requiring the insured to carry and amount of insurance that equals the completed value of the building. This is defined as:

Need for adequate insurance

A licensed insurance agent may share commissions with which of the following?

Non-Resident Agent Customer Representative Life Insurance Agen

All of the following are parties to a bond

Obligee Principal Surety

Which of the following are excluded on a Health Insurance Policy?

Occupational Disease PIP Benefits Attempted Suicide

Who is responsible for reviewing company rules and rates to be sure the law is being followed?

Office of Insurance Regulation

Examining the qualification of insurance companies seeking to do business in Florida is the primary responsibility of the:

Office of Insurance Regulation OIR

Test

Okay

Part Three of a Workers Compensation Policy defines:

Other States

Which of the following provides for loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance, or destruction?

Outside the Premises

All of the following types of ownership are eligible for a Personal Auto Policy EXCEPT:

Owned jointly by unrelated persons whether or not they are living together

If a client wanted to buy a policy to cover liability arising out of a specific construction project by a specific contractor, which of the following would they purchase?

Owners and Contractors Protective Liability

If a client wanted to buy a policy to cover liability arising out of a specific construction project by a specific contractor, which of the following would they purchase?

Owners and Contractors Protective Liability - Hide Feedback This form protects the insured against claims for bodily injury and property damage arising out of work performed for the insured by another, including the named insureds acts or omissions in general supervision. In fact, the named insured does not even buy the policy. It is most frequently used to protect an owner for operations being performed by a general (independent) contractor. Coverage is confined to a specific contractor and the specific location of operations stated in the declarations. Exclusions and other provisions are similar to those for CGL. This is an occurrence form of coverage

Which of the following guarantees the payment of materials in full upon completion of the work?

Payment Bond

Comprehensive Coverage

Pays for all physical damage to the business' vehicles regardless of cause with the exception of collision with another object or in the event the vehicle overturn

The Farm Liability Policy automatically includes which of the following?

Personal injury liability

When underwriting an Aircraft Hull Policy, all of the following questions are asked EXCEPT:

Pilots - education

Which of the following coverages are elective in a Commercial Package Policy?

Pollution Liability Employment-Related Practices Liability Commercial Inland Marine

FWCJUA insureds are entitled to this type of cancellation of a policy at any time coverage is secured through the voluntary market.

ProRata

Named Non Owner Policy

Provides Liability and Uninsured/Underinsured coverage for those that do not own a personal vehicle of their own. This is a form of coverage needed when an operator who does not own an automobile is required to have an SR-22 filing.

Which of the following is NOT true of the Supplemental Extended Reporting Period?

Provides for one new aggregate limit

Extended PIP does which of the following?

Provides payment for lost wages at 80% - Extended PIP reimburses for 100% Medical, 80% Work Loss, and 100% Replacement. Lost wages falls under the Work Loss category

All of the following are covered by a Mechanical Breakdown Policy EXCEPT:

Radiator damaged in an accident

Sections of Business Auto Coverage Form

Section 1- Covered Autos Section 2- Liability Coverage Section 3- Physical Damage Coverage Section 4- Business Auto Conditions Section 5- Definitions EXTRA- PIP, Uninsured Motorists and Medical Payments coverages can be added to policy by separate endorsement

A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as:

Self-Insured

Any claim for which the Umbrella Policy is primary is subject to a deductible known as the:

Self-Insured Retention

An umbrella can be broader than the underlying policies and may respond as primary coverage. The policy contains a feature that is similar to a deductible that applies when this situation occurs. This is called:

Self-insured retention

In Aircraft Liability Coverage, liability to passengers is treated as a:

Separate exposure

The policy condition that states coverage applies equally to each insured as if the other insured did not exist is defined as

Severability

Which of the following roof coverings are barriers to water penetration of the roof?

Shingles Tiles Metal Panels

Part A Coverage Liability- limits

Single limit- Single limit means one limit will apply to all claims for bodily injury and property damage arising from a single accident. The lowest single limit offered is $30,000 - Split limits means three separate limits apply: one for each person injured, another for the claims of all persons injured in one accident, and another for all property damage in one accident. The minimum limits are, respectively, $10,000, $20,000 and $10,000. Split limits are usually expressed in that sequence, in thousands: 10/20/10

Charging an applicant for a specific ancillary coverage in addition to the cost of the automobile insurance coverage applied for without his consent is defined as:

Sliding

All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT:

Soliciting insurance in other areas of the state

Symbol 7

Specifically declared autos

All of the following are defined insureds in the Commercial General Liability Policy EXCEPT:

Spouse of an employee

Which of the following best describes a "Controlled" Inland Marine Form?

Standard provisions form is written according to filed rules and rates

When the insured transfers his rights against the other party to his insurer it is defined as:

Subrogation

A bond that guarantees that supplies needed for a construction project will be delivered on time and at the agreed upon price is defined as:

Supply Contract Bond

To perform a service for qualified individuals whose affairs require a guarantor is defined as:

Surety

Which of the following is an example of an instrumentality move transportation or communication?

Television tower

Which of the following is not one of the "Thresholds" in the "No-Fault" law?

Temporary Injury of the Insured - Thresholds include (1) significant and permanent loss of a bodily function, or (2) permanent injury other than scarring and disfigurement, or (3) significant and permanent scarring or disfigurement, or (4) death

Each of the following divisions falls under The Department of Financial Services EXCEPT?

The Division of Consumer Activities

Where can a listing of tested and approved coverings and other opening protection be found?

The Florida Department of Consumer Affairs website By contacting the Miami-Dade Building Code Compliance Office

Which agency has developed web pages devoted to informing consumers and builders of efforts that can made to make dwellings more hurricane resistant and thus reducing costs of insuring the structures?

The Florida Division of Emergency Management

Personal Auto Policy (PAP)

The PAP offers broad coverage specifically geared for the personal exposure - liability (bodily injury) -property damage - uninsured / underinsured motorist - medical payments - PIP - collision deductible - comprehensive deductible - towing coverage - rental coverage

Part D coverage for your auto

The company agrees to pay for direct and accidental loss to a "your covered auto" or to any "nonowned auto," including their equipment. This type of coverage is sometimes called physical damage coverage.

Depending upon the nature of the guarantee, the Surety will wish to satisfy itself on all of the following EXCEPT:

The inexperience or capabilities of the principal to perform

Part A Coverage: Liability

The function of auto liability insurance is to pay on behalf of the insured money damages for which the insured becomes legally liable to others for bodily injuries or property damages. Also included is defense against claims or suits for such liabilities. In other words, liability is a third party payout and pays for injuries you cause to others

Which of the following is true of Pollution Cleanup and Removal:

The policy will pay a maximum of $10,000 total for all covered losses during any 12-month period.

Section 5- Definitions

This section discusses the critical terms in the vehicle form such as the meanings of accident, insured, vehicle, or suit

After the expiration of a Workers Compensation Policy, how many years does the insurer have to audit the insured's records?

Three

The provision that states the insured would not have to pay premiums after a certain length of disability is defined as:

Time limit on certain disability clause

Safe Burglary is defined as:

To take or attempt to take property from within a locked safe or vault by unlawful entry, with visible signs of forced entry, or taking of the safe or vault from inside the premises.

What is the Aggregate Limit, which is located in the liability section, of the Businessowners Policy?

Twice the Occurrence limit

Knowingly using an incomplete comparison of insurance policies in order to get the insured to buy a policy from you is defined as:

Twisting

A policy condition, either based on information in the insureds application or inserted by the insurer, is defined as:

Warranty

Example of the "Florida Valued Policy Lae"

a homeowner had his home insured for 80k. it was totally destroyed in a hurricane. His company paid the 80k

Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value:

abandonment

Replacement cost is defined as

actual cost to repair or replace at todays prices

All of the following are loss settlement valuations EXCEPT:

agreed value

Loss caused by sprinkler leakage is covered under which commercial property causes of loss forms

all 3

Business Automobile Policy (BAP)

also referred to as Commercial Automobile Insurance.

An insurance company that is licensed to do business in Florida is defined as:

an authorized insurance company

Uninsured Motorist coverage under the Personal Automobile Policy pays for which of the following?

bodily injury to the insured caused by hit and run driver

All of the following describe a Binder EXCEPT

can not be cancelled

Which of the following is NOT covered under an Aircraft Liability Policy?

cargo liability

Which of the following is NOT covered by Part Two: Employers Liability?

claim for wrongful termination

coercion

Pays for physical damage to the business' vehicle resulting from contact with another object:

collision

conditional contract

Loss due to spoilage from lack of power, light, heat, steam or refrigeration is defined as:

consequential damage

When the cost to salvage and recondition a vessel exceeds its value, the loss is known as:

constructive total

In the Farm Property policy, coverage for barns would be found in

coverage G

Garage Keepers Insurance

coverage applies for damage for which the insured is liable to customers cars in for service, repair, parking or storing.

In the Farm Property policy, coverage for barns would be found in:

coverage g

custom farming endorsement

Builders Risk Coverage Form

damage to property under construction

Garage Coverage Form

designed for auto dealerships, garages, parking lots and service stations. The form typically includes coverage for physical damage to owned, non owned, and hired vehicles and liability arising out of the conduct of the operations

All of the following can be written under a single Flood policy EXCEPT:

detached shed

All of the following can be written under a single flood policy

dwelling, detached garage, contents, but NOT shed.

extended non owner coverage

Which of the following is NOT true of the Basic Extended Reporting Period in a Claims-Made Policy?

extends the policy period 60 days

The Causes of Loss- Broad Form includes all of the basic perils plus some additional perils. what is an example of additional perils?

falling objects

The Causes of Loss-Broad Form includes all of the basic perils plus some additional perils. Which of the following is one of those additional perils?

falling objects

True or False: Business income coverage is an optional coverage under the Building and Personal Property coverage form.

false. Value Reporting, Inflation Guard, and Replacement Cost are additional optional coverages

Builders Risk Coverage Form in amount of 100k. Completed value of structure is 150k. building complete june 1. on dec 15, there is a loss of 10k. how much do they get?

nothing. Builders Risk will not cover this. Over six months have gone by since the building was completed. Builders Risk states that if the building is accepted by purchaser, is complete 90 days after construction, or 60 days after the building is occupied in whole or in part or the building is put to its intended use, coverage will expire. Those reasons suffice as explanation for this answer

3 eligibility requirements for the RCBAP flood policy

one or more residential units, 25% mercantile floor area, 75% owner occupied.

HO-5 provides "open perils" coverage for

other structures, dwelling and personal property.

symbol 4

owned autos other than private passenger autos only

symbol 6

owned autos subject to compulsory uninsured motorist law' NOT USED IN FLORIDA

symbol 5

owned autos subject to no fault

If a client wanted to buy a policy to cover liability arising out of a specific construction project by a specific contractor, which of the following would they purchase?

owners and contractors protective liability

Which of the following guarantees the payment of materials in full upon completion of the work?

payment bond

Extra Expense Coverage Form

pays for expenses in excess of normal operating expenses than an organization incurs to continue operations while is being repaired or replaced

The Farm Liability Policy automatically includes which of the following?

personal injury liability

leasehold interest coverage form

property insurance coverage the loss suffered by a tenant due to termination of a lease because of damage to the leased premises by a covered loss.

Business Auto Coverage Form

provides coverage for business vehicles (other than garage or trucking businesses) regardless of whether they are owned, leased, hired or borrowed.

Section 2- Liability

provides coverage in the event the business' negligent acts result in bodily injury or property damage to a third party as the result of operating a vehicle. coverage is similar to that found on a personal auto policy.

Which of the following is NOT true of the Supplemental Extended Reporting Period?

provides for one new aggregate limit

if a homeowner lives in a home 80% or more of the tie, Flood insurance will respond to a loss in which manner?

replacement cost on primary, ACV on other structures

Commercial Package Policies combine or "package" individual lines of insurance into this type of contract:

single

Charging an applicant for a specific ancillary coverage in addition to the cost of the automobile insurance coverage applied for without his consent is defined as:

sliding

All of the following are defined insureds in the Commercial General Liability Policy EXCEPT

spouse of employee

When the insured transfers his rights against the other party to his insurer it is defined as

subrogation

A bond that guarantees that supplies needed for a construction project will be delivered on time and at the agreed upon price is defined as:

supply contract bond

To perform a service for qualified individuals whose affairs require a guarantor is defined as:

surety

This business auto coverage form symbol is the "any auto" symbol and is used only to designate liability coverage

symbol 1-

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MGM331 test 2

Geol 106 test 2

CLT