Simulate exam
The extension of coverage under the commercial fine arts floater includes coverage for newly acquired property for a maximum of
$10,000
Following the Christmas season, an Insure decides to store his decorations in the attic for the summer. While moving the decorations he accidentally dropped a heavy box that crashes through the ceiling, causing $1000 of damage his H03 will pay
$1000 less the deductible
The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to
90 days
Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year regardless of the number of claims that may be made or the number of accidents that may occur
Aggregate limit of liability
In reference to the standard Medicare supplement benefits plan what does the term standard mean
All providers will have the same coverage options and conditions for each plan
A liability policy that covers all claims arising out of incidents occurring during the policy. Regardless of whether the policy is still in effect at the time of the claim is known as
An occurrence policy
If the cancellation of a property or casualty policy is for nonpayment of premium how many days written notice of cancellation must be given to the policyowner?
At least 10 days
Which of the following is not required to be stated in the outline of coverage provided with a long-term care policy?
Basic information about supplementary policies
How are state insurance guaranty Association's funded?
By their members-authorize users
What organization offers coverage on properties in areas of Florida deemed especially suitable to windstorm damages?
Citizens property insurance corporation
In dwelling policy is automatic increase in insurance is
Coverage by endorsement
What term includes damage where the insured peril was the proximate cause of loss
Direct loss
Which of the following would not be considered unfair discrimination by insurers?
Discriminating in benefits and coverage is based on the insured's habits and lifestyle
Which types of insurance companies marketing long-term care insurance coverage must establish procedures to ensure that any comparison of policies by its agents will be fair and accurate?
Every company is required to establish marketing procedures
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
All of the following are conditions commonly found in the insurance policy except
Insuring agreement
Which of the following statements concerning the builders risk coverage form is correct?
It may be written on a reporting form for the completed value of the structure.
Which of the following statements concerning Medicare part B is correct?
It pays for physician services, diagnostic tests, and physical therapy.
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?
Other insurance
Which of the following statements is incorrect with regard to surplus lines insurance
Policies written by a surplus lines insurer typically contain standard coverages and forms
Which of the following adjuster appointment types is required to file a surety bond with the department of insurance?
Public adjuster
In property insurance, actual cash value is defined as which of the following?
Replacement cost at the time of the loss, less depreciation
Which of the following is not covered under plan a medigap insurance
The Medicare Part A deductible
An Insurance agency could purchase an errors and omissions insurance policy which would provide protection in the event of any of the following events except
The agency loses commission income from policies that were not issued by the insurer
What happens if a non-member physician is utilized under the point of service plan?
The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount or percentage for the privilege.
All of the following statements concerning coinsurance are true except
The coinsurance formula also will be applied to total losses
All the following conditions Must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy except
The injury or damage must occur within 90 days after the insured's work is completed.
Hospital indemnity/hospital confinement indemnity policy will provide payment based on
The number of days confined in a hospital.
On a DP3 dwelling property special form policy, the coverage provided for personal property
The same as provided on the DP2 broad form
Which of the following is an example of a producers Fiduciary duty?
The trust that a client places in the producer in regard to handling premiums
When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?
They do not change
which of the following is not covered under a long-term care policy?
acute care hospital
Termination of an in force insurance policy prior to the expiration date shown in the policy is known as
cancellation
Who will transport the property of anyone who hires them
common carriers
Because an insurance policy is a legal contract it must conform to the state laws governing contracts which require all of the following elements except
conditions
Which of the following terms describes making false statements about the financial condition of any insurer That are intended to injure any person engaged in the business of insurance?
defamation
Which of the following is the basis for a claim against an insurance policy?
loss
All of the following are considered parts of the policy structure except
provisions
When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be
proximate cause
Insurance is the transfer of
risk
Liability imposed on one party as a result of the actions of another person is known as
vicarious liability
All of the following qualify for Medicare part A except
Anyone who is willing to pay a premium.
Which of the following forms provides the broadest coverage under an employee theft coverage form?
Blanket position
When and insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
The part of a policy that clarifies terms in the policy is the
Definitions
Employment practices liability insurance EPLI would not cover claims arising from
Deliberate law violation
The office of insurance regulation is Responsible for all of the following insurer activities except
Issue of securities
A building insured with commercial property insurance has been vacant 90 days which of the following is not true
Payment for unnamed perils is reduced by 25%.
Employers unable to purchase Worker's Compensation coverage in the voluntary market due to the "high-risk" nature of the work may be eligible for coverage under Florida's Worker's Compensation joint underwriting association if Assigned to
Sub Plan B
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?
special
An Insured has $5000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment cost $7000 for the insured, $4000 for the first passenger, and $8000 for the third passenger. How much will the policy pay under medical payments coverage?
$14,000
An Insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause a $40,000 loss occurs how much will the policy pay?
$30,000
Within how many days must a property insured pay on a claim after the settlement is reached?
20 days
An insured has Medicare part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
25%
In the state of Florida it is illegal for a licensees commissions from controlled business to exceed what percentage of the total in a given year?
50%
In a participation plan, the insured may be eligible for which of the following?
A partial premium refund
The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?
Accident only
How much is covered for debris removal under the HO property additional coverages?
All reasonable costs
Which of the following would be an example of an unfair trade practices of sliding?
An agent is falsely leading an applicant to believe that an additional coverage is required by law
A liability policy that covers all claims arising out of incidents occurring during the policy., Regardless of whether the policy is still in effect at the time of the claim, Is known as
An occurrence policy
If a loss occurs, The insured with a homeowners policy is required to do the following except
Arrange for an appraisal by an unbiased third party.
Which of the following would not be covered under the liability section of a personal auto policy?
Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle.
Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?
DP-1
All of the following could be considered rebates if offered to an insured in the sale of insurance except?
Dividends from a mutual insurer.
Which of the following would not be included in a commercial package policy?
Dwelling Coverage
Which of the following causes of loss would not be covered under a BOP form?
Earth movement, power failure, and flood
Expenses that an organization would not have incurred if business interruption had not existed or known as
Extra expenses
Which of the following is not the benefit of a POS plan?
It allows guaranteed acceptance of all applicants
All of the following statements describe the concept of strict liability except
It is imposed on defendants engaged in hazardous activities.
Under the dwelling policy, Coverage C - Personal Property is
Limited to covering a servant's property while at the insured location.
Following the Christmas season an insured decides to store his decorations in the attic for the summer while moving the decorations he accidentally dropped a heavy box that crashes through the ceiling and damages a table and lamp in the dining room causing $1000 of damage his HOOOO3 will pay
Nothing
Which of the following provisions in accident and sickness policies would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?
Payment of claims
Which of the following statements is incorrect with regard to surplus lines insurance?
Policies written by a surplus lines insurer typically contain standard coverages and forms
Who might receive dividends from a mutual insurer?
Policyholders
A sworn written statement that must be furnished by the insured to the insurer Before any loss under a policy can be paid is called
Proof of Loss
A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called
Proof of Loss
Before an Insurer will pay any loss under a policy, what is usually required from the insured?
Proof of Loss
When and insurer terminates an agents appointment the insurer must do all of the following except
Provide a 30 day advance notice to the commissioner
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a non-owned auto Mobile is
Provided by the insured's policy on an excess basis
Under the claims made CGL the supplemental extended reporting period
Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium
What type of care is respite care?
Relief for a major care giver
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called
Specific coverage
Property insurance that provides $100,000 coverage for a building and 50,000 coverage for personal property at a single location is called
Specific coverage
A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?
Stated amount
How are surety bonds different from insurance?
Surety bonds guarantee specific duties or obligations will be fulfilled; insurance pays for losses.
Insurance produced from an unauthorized insurer is called
Surplus lines insurance
Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?
Symbol 5
How much is the premium for the dwelling on the construction endorsement under the dwelling policy?
The average amount of insurance during construction
How much is the premium for the dwelling under construction endorsement under the dwelling policy?
The average amount of insurance during construction
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?
The difference in the actual cash value as a pair and as a single
Under which of the following circumstances would an insurer be allowed to cancel a dwelling policy midterm?
The insured knowingly lied about the year the property was constructed
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by personal umbrella policy?
The insured would be responsible for the amount required as underlying limits in the event of a claim.
When an insurer appoints an agent
The insurer is bound by the agent's acts.
Which of the following entities is responsible for an agent licensing and administrative supervision?
The office of insurance regulation
Back in college Bob was arrested on drug charges that were eventually race from his records. After completing medical school, he applies for a disability policy and does not reveal this information. He has issued a standard policy. 17 months later, he incurs a substantial clean due to a back injury. While investigating the circumstances of the claim, the insurance company discovers the earlier drug use. What will most likely happen
The policy will be voided
Coverage under a floor plan merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports?
Within 30 days after the end of each month
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
controlled
Which of the following best describes an insurance company that has been formed under the laws of this state?
domestic
Which type of hospital policy pays a fixed amount each day that the insured Is in a hospital?
indemnity
What do individuals use to transfer their risk of loss to a larger group
insurance
Which of the following is used in the formula for calculating the actual cash value of a property?
replacement cost
What is the deductible of a personal liability umbrella policy called?
sir
What are the two types of compensatory damages?
special and general
For the purpose of insurance risk is defined as
the uncertainty or chance of loss
Joe's drivers license was revoked 90 days after his auto insurance policy was issued. If the insurer chooses to cancel his auto insurance policy, it must give Joe a maximum of _________notice
45 days
The agent in charge of an agency must hold which of the following licenses?
General lines
Can an insurer cancel a property policy for nonpayment of premium?
Yes, with 10 days written notice and reason of cancellation given to the insured
Under special circumstances continuing education requirements may be extended beyond the two-year period for a maximum period of
12 months
Which of the following would not be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled.
Following a property loss that is covered under a business policy, if the insured cannot agree on the amount of loss, what method is used to resolve the issue?
Appraisal
The designation symbols used in commercial auto policies can be found in which policy section?
Covered Auto
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals 5000. Which statement regarding the producers errors and omissions liability policy is true?
It will provide coverage because of damage to the client resulted from a producers negligence
On its advertisement, a company claims that he has funds in its possession that far, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation
Under the claims-made CGL the supplemental extended reporting period
Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium
What type of damages may be awarded by the court to create disincentives Highly and desirable by society?
Punitive
All of the following are true regarding rebates except
Rebates are allowed if it's in the best interest of the client.
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy the agent is guilty of
Rebating
Any inducement offered to the insured in the sale of an Insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
The common policy condition is a modular part combined with other parts to create the contract. The common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?
The first named insured may cancel the policy at any time by giving written notice to the insurer.