2044

An insured is injured while driving his own car. Which of the following coverages will pay for the loss? A. Part A - Liability B. Part B - Medical payments C. Part C - Uninsured motorist D. Part D - Damage to your auto

B. Part B - Medical payments

Instead of charging service charges for premium financing, an insurance agent may charge, on any unpaid balance, an annual interest rate of up to A. 12% B. 16% C. 18% D. 36%

C. 18%

Under Coverage B - Other Structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage? A. A detached garage B. Other structures may not be used to state business property of others, even though a business is not conducted from the structure C. Any loss paid under the Coverage B reduces the Coverage A limit of liability D. Other structures covered under the Coverage B must be set apart from the dwelling by clear space

C. Any loss paid under the Coverage B reduces the Coverage A limit of liability

The transfer of a legal right or interest in an insurance policy is called A. Subrogation B. Liability C. Assignment D. Rescission

C. Assignment

What perils does the Citizens Property Insurance Corporation provide coverage for? A. Windstorm, hail, and fire B. The same perils covered by homeowners insurance C. Hail and fire only D. Windstorm and hail only

D. Windstorm and hail only

Other than collision would cover financial losses due to A. Damage to an insured's car caused by wind or hail B. Damage to an insured neighbors mailbox that was caused by the insured's pickup C. Damage to an insured's car in an accident for which the insured was found at fault D. Legal action brought against an insured for an accident

A. Damage to an insured's car caused by wind or hail

Late one night on his way home from a local bar, a man runs his covered auto into an insured's car. The man was operating his vehicle under the influence of alcohol. The insured has no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The subrogation provision in her policy allows A. The insured to sue the man to recover and damages she sees fit B. The insurer to attempt to recover the damages from the man and/or his insurance company C. The insured to sue the man to recover only the damages not paid by the insurance company D. The insurer to increase her premiums because of being a higher risk

B. The insurer to attempt to recover the damages from the man and/or his insurance company

Which endorsement, when added to the personal auto policy, alters the definition of covered auto to include motor homes, golf carts, or motorcycles? A. Miscellaneous type vehicle endorsement B. Recreational vehicle endorsement C. Extended coverage endorsement D. Nonhighway vehicle endorsement

A. Miscellaneous type vehicle endorsement

A trucking company has a $1 million umbrella policy in place. The business owner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After a car accident, the business is sued. Inquires are awarded to a single party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay? A. $50,000 B. $100,000 C. $200,000 D. $300,000

B. $100,000

If a fire erupts in the kitchen and spreads to the upstairs bedroom, resulting in the destruction of furniture, what type of loss has occurred? A. Proximate B. Direct C. Indirect D. Consequential

B. Direct

An example of an alien insurer doing business in this state is one formed under the laws of A. Puerto Rico B. Mexico C. District of Columbia D. Arizona

B. Mexico

An insured and his spouse were traveling down an icy road and hit a sign, accumulating $1,350 damage to their car. They have a $250 deductible. They already collected on a $1,500 claim earlier this year. How much will collect on this claim? A. $0 B. $250 C. $1,100 D. $1,350

C. $1,100

How does insurance distribute the financial consequences of individual losses? A. It transfers the risk to associates of the insured B. It transfers the risk to a small number of persons insured C. It transfers the risk to all persons insured D. It retains the financial consequences

C. It transfers the risk to all persons insured

Which if the following describe an insurer's responsibility for payment under a policy, as stated in the common policy provisions? A. Utmost good faith B. Premiums C. Limits of liability D. Consideration

C. Limits of liability

An insured has an automobile policy with limits of 100/300/50 and a deductible of $1,000. He is involved in an auto accident and crashes into another drivers auto. The other driver is awarded $125,000 for his injuries and $25,000 for the damage to his car. The insured's vehicle has damage in the amount of $1,200. The total payment made under the insured's policy is A. $126,200 B. $100,200 C. $150,200 D. $125,200

D. $125,200

In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT A. A trailer owned by the insured B. A farm implement being towed behind the insured's pickup C. A nonwoned temporary substitute vehicle D. A van used in the delivery business

D. A van used in the delivery business

What is the waiting period for transportation expenses coverage for a loss other than theft of a covered vehicle? A. 12 hours B. 24 hours C 48 hours D. There is no specified waiting period

B. 24 hours

Persons in Florida owning a self-propelled vehicle with 4 or more wheels that is registered and licensed in the state are required to have continuous insurance coverage that included a minimum of $10,000 of PIP and $10,000 of PDL. This requirement also applies to any nonresident who owns and operates a vehicle and is living in Florida at least how many days a year? A. 30 days B. 90 days C. 120 days D. 180 days

B. 90 days

A personal umbrella policy may act as excess over any of the following insurance coverage polices EXCEPT A. Auto liability coverage B. Comprehensive personal liability C. Auto collision coverage D. Homeowners section II coverage

C. Auto collision coverage

Guaranteeing future dividends is considered to be an unfair or deceptive act known as A. False financial statements B. Rebating C. Misrepresentation D. Twisting

C. Misrepresentation

Which statements best describes agreement as it relates to insurance contracts? A. All parties must be capable of entering into a contract B. Each party must offer something of value C. One party accepts the exact terms of the other party's offer D. The intent of the contract must be legally acceptable to both parties

C. One party accepts the exact terms of the other party's offer

Homeowners polices consider all of the following insured locations expect A. The hotel ballroom rented by the insured for a family reunion B. A strawberry patch owned by the insured C. Land owned by the insured on which his new home is under construction D. An individual cemetery plot

B. A strawberry patch owned by the insured

Which of these would be covered by the medical payments coverage in a personal auto policy? A. An insured trips over the curb while crossing the street on the way to her car and sprains a wrist B. An insured slams a hand in a car door while getting in, breaking the hand C. An insured falls down while water-skiing and is run over by a boat D. A runaway shopping cart in a mall parking lot knocks an insured down, breaking his leg

B. An insured slams a hand in a car door while getting in, breaking the hand

In Florida, the cost of mediation is paid by A. An assigned risk pool B. Both parties C. The party who requested the mediation D. The Department of Insurance

B. Both parties

The personal property off premises extension of dwelling forms provides limits of coverage up to A. 10% of Coverage A anywhere in the world B. 10% of Coverage C anywhere in the U.S or Canada C. 10% of Coverage C anywhere in the world D. 10% of Coverage A anywhere in the U.S or Canada

C. 10% of Coverage C anywhere in the world

Instead of charging a service charges for premium financing, an insurance agent may charge, on any unpaid balance, an annual interest rate of up to A. 12% B. 16% C. 18% D. 36%

C. 18%

An insurer must be fair in underwriting and must pay all covered losses of any insured. For the faithful execution of these duties, an insurer has the right to A. Employ any and all resources available to avoid paying legitimate claims B. Implement strict guidelines for the initiation of claims against all polices C. Accept the payment of premiums for all policies currently in force D. Use flexible underwriting standards so as to exclude high risk insureds

C. Accept the payment of premiums for all policies currently in force

If an insurer appoints a customer representative, the appointment needs to be filed with which of the following entities? A. Department B. None. Only agents and adjuster appointments must be reported C. Guaranty Association D. NAIC

A. Department

Which of the following provisions is usually found in homeowners polices and provides a replacement cost settlement to policyholders who carry adequate insurance? A. Insurance to value B. Coinsurance C. Actual cash value D. Pro rata

A. Insurance to value

When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbors yard where he damaged their flower bed. The insured was found to be legally liable for this damage. This is an example of A. Gross negligence B. Vicarious liability C. Intervening cause D. Comparative negligence

B. Vicarious liability

If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy? A. No, freezing is never covered B. No, theft is never covered C. Yes, freezing exclusion is removed if the car is stolen D. Yes, there is no exclusion for freezing

C. Yes, freezing exclusion is removed if the car is stolen

A homeowner has misplaced some of her insured personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss? A. HO-2 B. HO-3 C. HO-4 D. HO-5

D. HO-5

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT A. Is not located within the Coastal Barrier Resource System B. Ha 2 solid walls and a roof C. Is principally above ground D. Is entirely over water

D. Is entirely over water

An insureds diner suffered a fire loss. In addition to the damages caused by the fire, the floor covering had to be replaced because of the water damage. It took 4 weeks for the repairs to be completed. The insured was without income for that period of time. The insureds policy included both direct and indirect loss coverage. What part of the loss would be paid as indirect loss? A. Both the loss of income and the cost of the floor covering B. The entire loss would be paid as direct loss by fire C. The loss of income for the time the diner was closed D. The cost of replacing the floor covering due to the water damage

C. The loss of income for the time the diner was closed

Guaranteeing future dividends is considered to be an unfair or deceptive act known as A. Misrepresentation B. Twisting C. False financial statements D. Rebating

A. Misrepresentation

Which of the following types of property is NOT moveable? A. Real property B. Firm property C. Transferable property D. Fixed property

A. Real property

Which of the following entities is considered the principal? A. The insurer issuing a policy B. The producer or agent soliciting the policy C. The director of the insurance company D. The head of the Department of Insurance

A. The insurer issuing a policy

An insured was having a new home built. While digging the footings for the foundation, the contractor struck a solid rock formation and found that it was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbor's home several blocks away. Who pays for this damage? A. The insureds insurer, if the neighbor proves that the insured was negligent B. The insureds insurer, regardless of negligence C. The contractor D. The neighbors insurer

C. The contractor

An insured extended coverage on her dwelling that included coverage for vandalism and malicious mischief. One evening, she is sitting in her living room when she hears a crash and the sound of glass breaking. She runs to the door and discovers a brick has been thrown through her glass door. To inform her insurer of a possible claim,, she fills out a form detailing the events leading to the loss. What is the name of this form? A. Notice of Claim form B. Appraisal form C. Proof of Loss form D. Mortgagee Rights form

A. Notice of Claim form

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the A. Policy B. Insuring agreement C. Conditional receipt D. Application

A. Policy

The owner if a rental dwelling, insured under a DP-2, turns off the heat in the insured dwelling during the winter months because the dwelling is not occupied. The buildings water pipes freeze and break, causing damage. How will the policy react to this loss? A. This loss is covered B. The DP policy will pay for the pipes, but not the labor C. The DP policy will pay for the labor, but not the pipes D. This loss is excluded from coverage

D. This loss is excluded from coverage

What is the main distinction between a hired auto and a nonwoned auto? A. The length of time the insured uses the auto B. The amount of the premium C. Whether a payment is made for use of the auto D. Who owns the auto

D. Who owns the auto

An insurer must be fair in underwriting and must pay all covered losses of any insured. For the faithful execution of these duties, an insurer has the right to A. Implement strict guidelines for the initiation of claims against all polices B. Accept the payment of premiums for all polices currently in force C. Use flexible underwriting standards so as to exclude high risk insureds D. Employ any and all resources available to avoid paying legitimate claims

B. Accept the payment of premiums for all polices currently in force

In contrasting stock insurers with mutual insurers, which statement is true? A. Nonparticipating polices can pay out dividends to the policyholders B. Mutual insurers are owned by the shareholders and issue participating policies C. Stock insurers are owned by the shareholders and issue nonparticipating policies D. Stock dividends are tax free while policy dividends are taxable

C. Stock insurers are owned by the shareholders and issue nonparticipating policies

When must an insurer provide forms of proof of loss to an insured? A. Upon receiving a phone call from a person who wants to submit a claim B. Within 10 days of a report of a covered loss C. Upon receiving a written request from a person who wants to submit a claim D. Within 30 days of a report of a covered loss

C. Upon receiving a written request from a person who wants to submit a claim

An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy? A. An auto policy cannot be transferred B. Nothing, because the wife is automatically included as an insured C. The written consent of all other insured covered by the policy D. The written consent of the insurer

D. The written consent of the insurer