P&C Exam Questions

Which of the following would be found in Section I of a CGL? A Coverage for bodily injury and property damage B The policy definitions C The Commercial General Liability conditions D List of insureds under the policy

A Coverage for bodily injury and property damage

The DP-3 insures personal property against the same perils as: A The DP-2 Personal Property Coverage B The DP-3 Dwelling coverage C The DP-1 Dwelling Coverage D The DP-1 Personal Property Coverage

A The DP-2 Personal Property Coverage

A contract between the agent and the party paying the negotiated fee must be signed by both parties and retained by the agent for how many years? A As many years as the agent receives the negotiated fee B 3 C 1 D 4

B 3

The BOP covers property while it is being temporarily stored in another location for how many days? A 60 B 30 C 15 D 10

B 30

Which of the following is not a duty of the Department of Financial Services? A Enforces the Insurance Code by administering criminal penalties B Liquidate insurance companies C Investigate fraud D Supervise methods of obtaining business

A Enforces the Insurance Code by administering criminal penalties

Which of the following is not one of the liability exposures of the CGL? A Advertising injury B Products C Premises and operations D Completed operations

A Advertising Injury - The primary exposures covered by the CGL are premises and operations liability, product liability, completed operations liability, and contingent liability.

Which of the following is NOT a purpose of licensing? A To authorize the agent to insure risks B To facilitate the public supervision of such activities in the public interest C For the applicant to be familiar with the Florida insurance laws D To authorize and enable the licensee to actively and in good faith engage in the insurance business as an agent

A To authorize the agent to insure risks

Medical payments coverage includes which of the following? A Payment of necessary medical expenses incurred by an injury on the insured's premises B Payment of medical expenses incurred by an insured while at work on the premises C Payment of medical expenses caused by illness manifesting itself on the insured's premises D Payment of medical expenses incurred by persons who occupy the insured premises

A Payment of necessary medical expenses incurred by an injury on the insured's premises

H's liability policy has the following limits: $25,000 per person, $100,000 per occurrence, and $2,000,000 aggregate. This year, five separate claimants file in the amount $25,000 for injuries suffered in a single accident. How much will the policy pay? A $100,000 B $125,000 C $50,000 D $25,000

A $100,000

S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver - $70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle - $20,000? A $120,000 B $125,000 C $150,000 D $170,000

A $120000 - Coverage is as follows: Driver - $50,000; Passenger 1 - $30,000; Passenger 2 - $20,000, since the policy will only pay $50,000 per person and a total of $100,000 per accident. The property damage is fully covered, totaling $120,000.

A liability policy contains a per person bodily injury limit of $25,000 and a per occurrence limit of $50,000. If an accident were to occur and three persons have claims of $20,000 each, the total amount paid is: A $50,000 B $75,000 C $25,000 D $60,000

A $50,000

An applicant must complete ______ hours of prelicensing life and health insurance education in order to be licensed. A 40 B 30 C 50 D 20

A 40

An agent may have no more than ________ of his total business within a 12-month period be from controlled business. A 50% B 35% C 65% D 25%

A 50% - Controlled business is the practice of an agent selling policies or annuity contracts to himself or family members, officers, directors, stockholders, partners, or employees of a business in which he or a family member is engaged, or the debtors of a firm, association, or corporation of whom he or she is an officer, director, stockholder, partner, or employee.

B has two policies on a property. Policy A is for $20,000; Policy B is for $40,000. If Policy A has a pro rata provision, how much will it pay for a covered loss of $15,000? A $5,000 B $15,000 C $7,500 D $10,000

A 5000 - The total amount of coverage is $60,000. Policy A provides 1/3 of that total, so Policy A's pro rata contribution would be one-third, or $5,000. Policy B provides $40,000, or 2/3 of the total coverage, so Policy B pays two-thirds.

A proof of loss must be provided to the insurer within _____ days of a homeowner loss. A 90 B 10 C 60 D 30

A 90

Which of the following cannot be used to show proof of financial responsibility? A A bank account with an adequate balance B A deposit of cash C A certificate of insurance D A certificate of self-insurance

A A bank account with an adequate balance

Which of the following would not be eligible for coverage under the Business Auto Coverage Form? A An employee injured using the employee's personal auto in insured's business B A tractor-trailer used in the insured's business C The insured for an employee's use of a personal auto in the insured's business D A private passenger automobile owned by the insured and used in the insured's business

A An employee injured using the employee's personal auto in insured's business

A contract between the agent and the party paying the negotiated fee must be signed by both parties and retained by the agent for how many years? A As many years as the agent receives the negotiated fee B 1 C 3 D 4

A As many years as the agent receives the negotiated fee - A written contract between the agent and the party paying the negotiated fee must be signed by both parties and include the promise that any commissions paid by the insurer will refund the amount paid by the party within 30 days. The contract must be retained by the agent for 3 years.

The Condominium Commercial Unit-Owners Coverage Form does not cover which of the following? A Building exterior wall B Business personal property C Improvements D Appliances

A Building exterior wall

Which of the following forms provide coverage for indirect loss? A Business Income Coverage Form B Commercial Glass Coverage Form C Legal Liability Coverage Form D Building and Personal Property Coverage Form

A Business Income Coverage Form - indirect loss = excess coverage and business income coverage

An agent who induces a client to use the cash value of an existing policy to buy an additional but unneeded policy is guilty of _______________. A Churning B Fraud C Twisting D Rebating

A Churning - Churning is the practice whereby policy values, such as cash value, in an existing life insurance policy, annuity contract, and/or any riders, are used to purchase another insurance policy or annuity contract with that same insurer for the purpose of earning additional premiums, fees, commissions, or other compensation.

Which of the following statements about the National Flood Insurance Program is false? A Coverage becomes effective after a 24-hour waiting period B Two deductibles apply separately to the building and contents C Mudflow is covered; mudslide is not covered D Property removed to protect it from flood is covered for 45 days at other locations

A Coverage becomes effective after a 24-hour waiting period - Coverage usually become effective after a 30-day waiting period; some exceptions apply.

Which of the following is false under the Personal Auto Policy? A Coverage is provided for theft under property damage liability B Medical payments may be provided for up to 3 years following an accident C Coverage for damage to an insured vehicle is provided without regard to liability D No-fault coverage is provided in states that require it

A Coverage is provided for theft under property damage liability - Theft is covered under Physical Damage (Part D), not property damage liability (Part A).

In commercial liability policies, the word 'tail' is synonymous with: A Extended reporting period B Endorsement C Supplementary payments D Retroactive date

A Extended reporting period

The Department of Financial Services can impose which of the following penalties? A Fine for violation of a cease and desist order up to $50,000 B $100,000 fine for a willful violation for submitting fraudulent signatures C Imprisonment up to 2 years for churning D $10,000 fine for failure to answer a subpoena

A Fine for violation of a cease and desist order up to $50,000 - A willful violation for submitting fraudulent signatures is $75,000 per violation and $5,000 per violation for a non-willful violation.

An agent willfully violated a requirement in the Insurance Code and his penalty was which of the following? A Imprisonment up to 60 days B $1,000 fine C Imprisonment up to 30 days D $5,000 fine

A Imprisonment up to 60 days

A loss caused by which of the following would be covered under a BOP? A Increased cost of construction B Earth movement C Mechanical breakdown D Off-premises power failure

A Increased cost of construction - The Increased Cost of Construction Additional Coverage provides $10,000 coverage for costs incurred to comply with an ordinance or law regulating repairing or replacing damaged building parts.

Which clause broadens coverage of an existing policy with no increase in premium? A Liberalization B Assignment C Loss payable D Subrogation

A Liberalization

Private Insurers are not allowed to write Workers' Compensation Insurance in which of the following states? A Monopolistic B Competitive C Compulsory D Voluntary

A Monopolistic

Choose the use of an automobile that is not eligible for the Personal Auto Policy. A Pizza delivery B Transporting furniture for a neighbor who is moving to a new home C Car pooling D Driving over 25,000 miles annually Sorry! The correct answer was A. Delivery or commercial use of an eligible vehicle is ineligible under the Personal Auto Policy and requires a business auto policy.

A Pizza delivery

Damages from which of the following would apply to the per occurrence limit under a Commercial General Liability policy? A Professional malpractice B Libel and slander C Invasion of privacy D False arrest

A Professional malpractice

The Division of Financial Services also has the power to do the following, except: A Regulate the state Medicaid program B Guard against unauthorized insurance activities C Regulate policy forms and rates D Oversee the insurance industry based on the Insurance Code

A Regulate the state Medicaid program

Which of the following is not within an agent's authority? A Representing the insured's interest B Using express authority C Selling applications on the insurer's behalf D Countersigning insurance contracts

A Representing the insured's interest

Which insurance provision prevents the insured from collecting twice for the same loss? A Subrogation B Liberalization C Other insurance D Appraisal

A Subrogation - Subrogation may take place when a negligent third party is the cause of a loss. Once the insurance company has paid the loss, it receives the insured's right of recovery from the third party, preventing the insured from collecting from both the insurer and the culpable party.

Which Business Auto Symbol is the most broad of all Symbols? A Symbol 1 B Symbol 3 C Symbol 2 D Symbol 4

A Symbol 1 - Symbol 1 includes any auto, whether owned or not by the insured if it is used in the insured business.

Which of the following statements is false with respect to the Citizens Property Insurance Corporation (Citizens)? A The association must reject a commercial lines residential risk with limits above $10 million or a personal lines residential risk with limits above $1 million B All insurers required to be members of the corporation must participate in its writings, expenses, and losses C The corporation is for applicants who are unable to obtain property insurance through ordinary methods D Participation by member insurers is proportional to the net direct premiums of each member insurer during the preceding

A The association must reject a commercial lines residential risk with limits above $10 million or a personal lines residential risk with limits above $1 million

Which of the following statements is false with respect to the Citizens Property Insurance Corporation (Citizens)? A The association must reject a commercial lines residential risk with limits above $10 million or a personal lines residential risk with limits above $1 million B All insurers required to be members of the corporation must participate in its writings, expenses, and losses C The corporation is for applicants who are unable to obtain property insurance through ordinary methods D Participation by member insurers is proportional to the net direct premiums of each member insurer during the preceding calendar year

A The association must reject a commercial lines residential risk with limits above $10 million or a personal lines residential risk with limits above $1 million

Under the Voluntary Compensation Endorsement to a Workers' Compensation Policy, an employer must provide which of the following? A The class of employees to be covered B The designated beneficiary C The benefits of the designated State's Workers' Compensation law D The number of years the business has had employees

A The class of employees to be covered

Actual cash value may be defined as: A The cost to replace or repair property, minus depreciation B The cost to replace or repair the property C The agreed upon specific value determined before the policy was issued D The original purchase price of property, minus depreciation

A The cost to replace or repair property, minus depreciation

Which of the following statements regarding Commercial Crime Coverage is incorrect? A The definition of robbery includes forcible entry into locked premises B A watch person is any person retained to have care and custody of property inside the premises, and has no other duties C Employee Dishonesty Coverage covers property other than money and securities D Employee Dishonesty Coverage will cover new employees automatically

A The definition of robbery includes forcible entry into locked premises

Which of the following claims would be insured under Uninsured Motorists Coverage? A The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver B A thief stole the insured's car and was paralyzed after being struck by a drunk driver C The insured was driving his uninsured car at the time of the accident D An insured is sued and the other party is awarded an injury settlement and punitive damages

A The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver

Which of the following statements is true regarding loss settlements? A The insurer must pay according to the terms of the agreement within 20 days after the settlement is reached B The insurer must pay according to the terms of the agreement within 30 days after the settlement is reached C If the payment is not made within 20 days, it must include interest at a rate of 10% per year from the date of the agreement D If the payment is not made within 30 days, it must include interest at a rate of 12% per year from the date of the agreement

A The insurer must pay according to the terms of the agreement within 20 days after the settlement is reached

All of the following are true of the Occurrence Form, except: A The length of the retroactive date will depend upon the insurer B As long as the injury or damage occurred during the policy period, the claim date is immaterial C For coverage to apply, the injury or damage must occur during the policy period D Supplementary payments are automatically included

A The length of the retroactive date will depend upon the insurer

Which of the following statements is NOT correct with respect to premium financing? A The service charge allowed for a premium finance company is the same as the service charge allowed for an agent B A premium finance agreement provides that the premium finance company will forward premiums to the insurer to be repaid by the insured C A premium finance company must file all forms, service charge, and interest rate plans with the Office for approval D The service charge by an insurer may not be more than 1/2 of the additional charge by premium finance companies

A The service charge allowed for a premium finance company is the same as the service charge allowed for an agent - The service charge allowed for a premium finance company is up to a maximum of $12 per $100 per year plus a nonrefundable additional charge up to $20, whereas the service charge allowed for an agent or agency cannot exceed $3 per installment, or $36 per year.

Theft is specifically defined as: A Any act of stealing B The loss of property when the cause is unknown C Malicious vandalism D Threatening bodily harm to a bailee

A any act of stealing

Under a PAP, liability resulting from the insured's use of a non-owned auto is: A Provided on an excess basis B Not covered because of the Care, Custody and Control Clause C Shared pro rata between the insured's policy and the policy on the vehicle D Provided on a primary basis

A excess basis

Which of the following is true regarding coverage of trees, shrubs or plants under the Dwelling policies? A Theft of shrubs and plants is covered B Damage to plants by wind, hail, weight of ice, snow or sleet is not covered C The Limit of Liability is $1,000 for any tree, shrub, or plant D All vehicle damage to trees, shrubs, or plants is covered

B Damage to plants by wind, hail, weight of ice, snow or sleet is not covered

Which of the following is true regarding Property Off Premises coverage under the Building and Personal Property Coverage Form? A It is offered as an Additional Coverage B Property in a motor vehicle or in the care, custody, and control of a salesperson is included C Property Off Premises is covered only for 30 days after its removal from the premises D There is a coverage limit of $5,000 on Property Off Premises

B Property in a motor vehicle or in the care, custody, and control of a salesperson is included

A hurricane warning is issued _______ hours before the anticipated onset of tropical storm force winds of 74 mph or higher, and will stay in effect when dangerously high water or a combination of dangerously high water and waves continue. A 48 B 36 C 24 D 18

B 36 - ends 72 hours following the last hurricane watch or warning issued

Which statement regarding liability coverage and limits is false? A Pro rata liability is proportionate distribution of liability among insurers that have policies on the same risk B The per occurrence limit is the maximum amount recoverable during the policy period C Primary coverage pays first with respect to other policies D An excess coverage policy pays only after a primary policy has been exhausted

B The per occurrence limit is the maximum amount recoverable during the policy period

Policy A provides liability coverage to Fred's Grocery up to $500,000. Policy B provides coverage for the same risks up to $1.5 million. Both policies pay on a pro rata basis. If Fred's Grocery is determined to have a legal liability of $400,000 to a claimant who was injured on the property, how much will Policy A pay? A $400,000 B $100,000 C $50,000 D $500,000

B $100,000 - Pro rata liability requires that each policy pays no more than its share of the loss. The total insured amount carried by Fred's Grocery is $2 million ($500,000 + $1.5 million). Policy A's share of that amount is 25% ($500,000 ÷ $2 million). Therefore, its share of any loss would be 25% of the loss amount. 25% of $400,000 is $100,000.

Policyholder L has a DP-1 with a Coverage A amount of $300,000. Following a severe storm, she suffers a covered loss to the dwelling of $275,000 and a covered loss to a detached swimming pool of $30,000. How much will L's policy pay? A $250,000 B $300,000 C $305,000 D $275,000

B $300,000 - The pool is covered under Coverage B, which pays up to 10% of Coverage A, or $30,000. However, because L's policy is written on the DP-1 form, the Coverage B limit is included in, not additional to, the Coverage A limit. Therefore, the most the policy will pay is $300,000.

An insured placed with the FAJUA must be notified in writing that the insurance coverage is not through the private market within _________ of placement. A 3 days B 10 days C 36 hours D 14 days

B 10 days

Under the Earthquake Endorsement to the BOP, if an earthquake begins before the policy expiration, coverage continues for up to how many hours? A 48 B 168 C 72 D 128

B 168

The insurer must offer alternative deductible amount applicable to hurricane losses equal to which of the following? A 3% B 5% C $1,000 D $250

B 5%

A proof of loss must be provided to the insurer within _____ days of a homeowner loss. A 60 B 90 C 30 D 10

B 90

Which of the following statements is false with regard to payment of claims? A Health insurers must pay all claims, for payment under a health insurance policy, within 45 days after receipt of the claim by the health insurer B A dual endorsement from any mortgage holder or lienholder is required for amounts payable under the policy for personal property and contents C A property insurer must pay claims directly to the primary policyholder, payable to the primary policyholder only D If there is a lien on a damaged vehicle, payment of the claim must be made jointly to the owner of the damaged vehicle and the first lienholder of record

B A dual endorsement from any mortgage holder or lienholder is required for amounts payable under the policy for personal property and contents

Which of the following is not considered an uninsured motorist vehicle under the Personal Auto Policy? A A hit and run vehicle B A vehicle newly acquired by the named insured that has not been reported to the insurer C A vehicle for which there is no liability policy D A vehicle insured by a bankrupt insurance company

B A vehicle newly acquired by the named insured that has not been reported to the insurer

Which of the following is not covered by the Robbery or Safe Burglary of Other Property insuring agreement? A A burglary B An ATM hacked so that it dispenses money to the hacker C A credit union held up at gunpoint D Shoplifting by a customer

B ATM hacked

When the insured and the insurer fail to agree on the amount to be paid for a property loss, the dispute resolution method is called a(n): A Abandonment B Appraisal C Agreement Clause D Approximate Clause

B Appraisal

Plaintiff K was injured after losing control of his skis on a slope with well-marked signs indicating the degree of difficulty. What legal defense is available to the ski resort to avoid liability for the injury? A Contributory negligence B Assumption of risk C Statute of limitations D Comparative negligence

B Assumption of Risk

What is the cancellation notice requirement if an insurer is cancelling a homeowners or personal auto policy for nonpayment of premium? A At least 20 days' written notice of cancellation B At least 10 days' written notice of cancellation C At least 15 days' written notice of cancellation D At least 45 days' written notice of cancellation

B At least 10 days' written notice of cancellation

As part of holding a Florida surplus lines agent license, a surplus lines agent must: A Satisfy the applicable seasoning requirements B Be a member of the Surplus Lines Service Office Association C Be licensed for all lines of insurance D Hold the CPCU designation

B Be a member of the Surplus Lines Service Office Association

All of the following are methods of loss valuation, except: A Stated amount B Blanket value C Actual cash value D Replacement cost

B Blanket value

___________ is not covered by the CGL Coverage B - Personal and Advertising Injury. A Slander B Breach of contract C Malicious prosecution D Infringement of copyright

B Breach of contract - Also covered are false arrest, detention, or imprisonment, wrongful eviction, libel, violation of privacy, and stealing another person's idea in an advertisement.

A bank or credit union will not give a loan unless the borrower buys insurance from a specific company. This is known as ___________. A Churning B Coercion C Rebating D Misrepresentation

B Coercion

Comprehensive Coverage under Physical Damage Coverage of the Business Auto Coverage Form, includes all of the following, except: A Theft B Collision C Lightning D Glass Breakage

B Collision Comprehensive Coverage under the Business Auto Coverage Form is a broad open perils coverage that covers damage from perils not excluded. Collision is excluded under the policy.

Under a Homeowners Policy, structures on the premises that are separated by a clear space from the dwelling, are covered under: A Coverage D B Coverage B C Coverage C D Coverage A

B Coverage B - Coverage B is the coverage for private and separate structures. If the structures are attached to the dwelling, they are included under Coverage A.

All of the following are true of Builders Risk forms, except: A Coverage terminates when the policy expires or it is cancelled B Coverage is always written on an open perils basis C There is no vacancy provision D Coverage does not apply to outside radio and television antennas

B Coverage is always written on an open perils basis

Which type of loss does not reduce an aggregate limit within the Businessowners Coverage Form - Section II? A Product/completed operations B Damage to Premises Rented to You C Medical expenses D Premises and operations

B Damage to Premises Rented to You

Property damage covered by a liability policy includes which of the following? A Damage to property of others in the insured's care, custody, or control B Damage to tangible property, including loss of use of that property caused by the insured's negligence C Damage to the insured's products arising out of the products D Damage to property owned by, or leased to, the insured

B Damage to tangible property, including loss of use of that property caused by the insured's negligence

Which of the following may broaden the coverage found in an insurance policy? A Insuring Agreement B Endorsements C Declarations D Conditions

B Endorsements

Which of the following statements is correct concerning coverage for a catastrophic ground cover collapse? A The contents of personal property is not covered pursuant to a catastrophic ground cover collapse B Every insurer authorized to transact property insurance in Florida must provide coverage for a catastrophic ground cover collapse C Most insurers do not cover catastrophic ground cover collapse D The insurer may not restrict catastrophic ground cover collapse and sinkhole loss coverage just to the principal building

B Every insurer authorized to transact property insurance in Florida must provide coverage for a catastrophic ground cover collapse

What is the name for a type of policy that doesn't pay benefits until the limits of the primary policy has been exhausted? A Surplus lines policy B Excess policy C Common law policy D Liberalization policy

B Excess policy

All of the following are correct in regards to Extra Expense coverage, except: A It is considered to be a Time Element Coverage B Extra Expense coverage cannot be included in the Business Income Coverage Form C It covers necessary expenses incurred during the period of restoration that would not have occurred if there had been no direct physical loss D It includes costs to equip a temporary location

B Extra Expense coverage cannot be included in the Business Income Coverage Form -

Which of the following would be an eligible risk under the BOP? A Manufacturer B Fast food restaurant C Auto repair shop D Small amusement park

B Fast food

When a policy covers the peril of Windstorm or Hail, a risk may be eligible for a credit to the wind portion of the premium. Which of the following do these credits NOT apply to? A Roof-Wall Connection B Flooring C Roof Shape D Opening Protection

B Flooring

Which of the following vehicles is covered by Liability coverage under the Personal Auto Policy? A Company car B Non-owned golf cart C Uninsured owned vehicle D Motorcycle

B Golf cart

Driving while under the influence of alcohol is an example of: A Vicarious Liability B Gross negligence C Contributory negligence D Assumption of risk

B Gross - exhibits a lack of care through recklessness or deliberate indifference to the well-being of others.

A homeowners insurance agent may only share a commission or any valuable consideration with one who: A Has a license to sell homeowner insurance B Has an appointment and license to sell homeowner insurance C Does not have an appointment to sell homeowner insurance D Has a license to only sell life insurance

B Has an appointment and license to sell homeowner insurance

For which of the following persons is the Drive Other Car endorsement intended? A The officers and directors of a corporation B Individuals who do not own an auto C Owners of school buses D Truckers and motor carriers

B Individuals who do not own an auto

All of the following are true of the Personal Jewelry Floater, except: A It has a Pair and Sets Clause B It has a 60-day automatic coverage for newly acquired items C Appraisal is usually mandatory D It can be written on a valued basis

B It has a 60-day automatic coverage for newly acquired items - Automatic Coverage under the Personal Jewelry Floater is 30 days.

Which of the following is a characteristic of a Mutual Insurance Company? A. A policyholder is a voting member on the Board of Directors B Members are provided insurance by the company C Stockholders have ownership D Dividends are returned profits

B Members are provided insurance by the company

An applicant inaccurately representing information on the application is guilty of: A Waiver and Estoppel B Misrepresentation C Concealment D Fraud

B Misrepresentation

Which of the business auto coverage forms provides insurance for a contract carrier that transports its own goods in addition to the goods owned by others? A Business Auto Coverage Form B Motor Carrier Coverage Form C Truckers Coverage Form D Garage Coverage Form

B Motor Carrier Coverage Form

Which provision specifies that no coverage applies if the loss benefits a person who has care, custody, or control of the insured's property? A Appraisal B No Benefit to Bailee C Assignment D Claim Settlement

B No Benefit to Bailee

All of the following are excluded from the Workers' Compensation Law, except: A Domestic Servants B Part time employees C Casual Workers D Farm Labor

B Part time employees

The maximum amount that a coverage will pay for loss to any one injured party regardless of overall policy limits, is known as the: A Per occurrence limit B Per person limit C Aggregate limit D Split limit

B Per person limit

The Watercraft Liability endorsement provides which coverage? A Property damage arising out of motorboat being operated in a race B Property damage arising out of the racing of sailing vessels C Bodily injury and property damage arising out of the ownership and use of boats rented to others D Bodily injury sustained by an employee in the course of employment

B Property damage arising out of the racing of sailing vessels

Which is the best description of punitive damages? A Punitive damages are assessed in addition to specific damages for the benefit of low-income plaintiffs B Punitive damages are assessed as a punishment for extremely objectionable conduct by a negligent party C Punitive damages are limited to disfigurement and mental anguish D Punitive damages are so limited as to be punitive toward the plaintiff

B Punitive damages are assessed as a punishment for extremely objectionable conduct by a negligent party

Medical expenses and loss of earnings awarded to an injured party are considered: A General damages B Special damages C Physical damages D Punitive damages

B Special damages

A manufacturer is held liable if a product caused an injury whether the product was or was not defective. This describes what type of liability? A Direct B Strict C Absolute D Contingent

B Strict

Which of the following is false regarding the Florida Insurance Guaranty Association? A The maximum amount the association will pay for a covered claim is $300,000 per claimant B The Association guarantees payments for fidelity and surety bond coverage C The Association is divided into 2 separate accounts D Every insurer admitted to transact property and casualty insurance in the state must be a member of the Association

B The Association guarantees payments for fidelity and surety bond coverage

With regard to agent and adjuster licensing and investigations: A The Department of Financial Services does not supervise agent licensing B The Department of Financial Services may interrogate an applicant or agent on any matter is deemed necessary for the protection of the public C The Department of Financial Services does not investigate agents or adjusters D The Chief Financial Officer does not impose penalties for violations of the Insurance Code

B The Department of Financial Services may interrogate an applicant or agent on any matter is deemed necessary for the protection of the public

Which of the following would not be excluded under Coverage A of the CGL? A Discrimination B Product recall C Operation of mobile equipment D Damage to insured's work

C Operation of mobile equipment

Which of the following statements is false regarding the Florida Automobile Joint Underwriting Association (FAJUA)? A Each auto insurer must be a member of the Association B The FAJUA provides automobile liability insurance when an insurer becomes insolvent C The FAJUA provides automobile liability insurance for individuals who have been unable to obtain auto insurance through normal markets D Losses and expenses are equitably apportioned among the member insurers

B The FAJUA provides automobile liability insurance when an insurer becomes insolvent

Which of the following is not true of a nonadmitted carrier? A An agent may not do business with a nonadmitted carrier B The Florida Guaranty Association protects residents who buy from a nonadmitted carrier C A nonadmitted carrier is also unauthorized D A nonadmitted carrier is not licensed in Florida

B The Florida Guaranty Association protects residents who buy from a nonadmitted carrier

A chemical manufacturer requires protection for pollution liability and clean up costs. Which of the following pollution liability coverages should the business purchase? A Pollution Extension Endorsement B Pollution Liability Coverage Form C Limited Pollution Extension Endorsement D Limited Pollution Liability Coverage Form

B The Pollution Liability Coverage Form provides coverage for both pollution liability and governmentally-mandated clean up.

Which of the following is true regarding a negligence claim? A An uninjured party to an accident is presumed to be negligent B The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages C Every accident resulting in bodily injury or property damage is due to a negligent act D In every accident there is one or more negligent parties

B The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages

Which statement is true concerning Coverage D of the Homeowners Policy? A The coverage will pay until the property is restored, plus 30 days relocation expense B The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living C If the insured must relocate permanently, payment will be made for 365 days, regardless of the time it takes the insured to settle at the new location D The coverage will pay for all the insured's living expenses until the property is restored

B The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living

A Certificate of Insurance includes which of the following? A The effective date, the named insured, the premium, and the limits of liability B The effective date, name of the insurer, the named insured and limits of liability C The name of the insurer, the amount and type of insurance, and the perils insured against D The expiration date, name of the insurer, the premium and limits of liability

B The effective date, name of the insurer, the named insured and limits of liability - A Certificate of Insurance is a document stating that an insurance policy is in force. It is used to provide proof of insurance to property owners, contractors, and others who may require liability insurance. Perils would be included in a binder, not a certificate of insurance. The premium amount appears only in the policy, not on the certificate of insurance or binder.

Which of the following is not essential in determining if an action is due to negligence? A The injured party must prove the wrongdoer failed to act in a reasonable and prudent manner B The injured party must prove the wrongdoer committed a criminal act C The injured party must prove the alleged wrongdoer owed a duty to the injured party or to the public D The injured party must prove the actual injuries or damages were foreseeable

B The injured party must prove the wrongdoer committed a criminal act

Which of the following statements about the CPP is incorrect? A The first named insured may cancel the policy by mailing advance written notice of the cancellation B The insured's rights and duties may be transferred to another party without insurer approval C The insurer may examine the insured's books and records at any time during the policy period D The first named insured is responsible for the payment of all premiums

B The insured's rights and duties may be transferred to another party without insurer approval

Which of the following is correct about Inspections and Surveys under the Common Policy Conditions of the CPP? A The insurer may make inspections and surveys only during the first 90 days of the policy period B The insurer has the right, but is not obligated, to make inspections and surveys at any time C The insurer has the obligation to make inspections and inform the insured if the property has serious hazards D Inspections or surveys must be made prior to the policy effective date

B The insurer has the right, but is not obligated, to make inspections and surveys at any time

Under the valued policy law: A The valued policy payment applies even, if unknown to the insurer, the risk has increased B The insurer's liability under the policy is the amount of money for which the property was insured C An agent or insurer must acknowledge receipt of a communication regarding a claim within 10 working days If the loss is less than the total amount insured, the insurer must increase the amount of the claim payment accordingly D The insurer's liability is the market value of the property insured

B The insurer's liability under the policy is the amount of money for which the property was insured

Under a Commercial Crime policy written on a Loss Sustained Form, what is the latest date a covered loss can occur? A 1 year following policy expiration B The policy expiration date C 2 years following policy expiration D The retroactive date

B The policy expiration date

In which section of the BOP would coverage for equipment breakdown be found? A Additional coverages B Endorsements C Optional coverages D Coverage extensions

C Optional Coverages

Which of the following is true of supplementary payments under Part A of the Personal Auto Policy? A Any payments made reduce the liability limits by a like amount B They are paid in addition to the liability limits of the policy C They are paid only once during the policy term D They are paid as supplementary benefits only after the limit of liability is exhausted

B They are paid in addition to the liability limits of the policy

Which of the following covers physical damage to non-owned trailers and their equipment? A Other Insurance Clause B Trailer Interchange Coverage C Truckers Coverage D Interline Coverage

B Trailer interchange coverage

An exported insurance policy may not provide for deductible amounts other than those available under similar policies in actual and current use, except for: A Commercial policies B Windstorm policies C Flood policies D Auto liability policies

B Windstorm policies

All of the following are true of automobile physical damage Coverage D, except: A It covers damage to the insured auto regardless of liability B It covers damage to the insured auto and to another auto with which it collided C Collision coverage usually is written with a deductible D Damage to the insured auto that is caused by colliding with a deer would be covered under Other Than Collision coverage

B covers damage to insured auto & other auto

Charging different rates or providing different benefits to insureds of the same actuarial class or hazard category is which of the following? A Fictitious grouping B Unfair discrimination C Sliding D Defamation

B discrimination

The Businessowners Coverage Form to the Businessowners Policy provides coverage on which of the following basis? A Simplified Perils B Open Perils C Modified Perils D Broad Perils

B open perils

For a loss to be covered under a standard property policy, the insured must do which of the following? A Provide proof of loss within a year of the claim B Protect property from further damage C Contact an independent claims adjuster D Obtain a written appraisal of the damages

B protect prop from further damage

How many credit hours of continuing education must a new agent complete every 2 years? A 12 (including a 3-hour law and ethics course) B 30 (including a 3-hour law and ethics course) C 24 (including a 5-hour law and ethics course) D 12 (including a 5-hour law and ethics course)

C 24 (including a 5-hour law and ethics course)

Under the Homeowners policy, which coverage provides indirect loss coverage? A Coverage C B Coverage A C Coverage D D Coverage B

C Coverage D provides for the insured's additional living expenses necessitated by damage to the dwelling, an example of indirect loss.

An agent willfully violated a requirement in the Insurance Code and his penalty was which of the following? A $5,000 fine B Imprisonment up to 30 days C Imprisonment up to 60 days D $1,000 fine

C Imprisonment up to 60 days

In Florida, how much must be covered at a minimum under a unit owner's residential property policy in property loss assessment coverage? A $1,000 B $7,500 C $2,000 D $5,000

C $2000

Supplementary payments under Part A of the Personal Auto Policy will pay which of the following? A A judgment against the insured in excess of liability limits B Doctor bills when the insured is injured in an auto accident C $250 for bail bonds D Loss of earnings when the insured is disabled

C $250 for bail bonds

Which of the following is not true about insurance? A It transfers risk B It protects against uncertainty C It eliminates risk D It is a means of sharing loss

C eliminates

After the first 60 days a policy is in force, the underwriter cannot cancel for which of the following reasons? A License suspension B Nonpayment of premium C Unacceptable driving record since effective date D Material misrepresentation

C - After the first 60 days a policy is in force, notice of cancellation will be effective only if it is based on nonpayment of premium, material misrepresentation or fraud, or suspension or revocation of the license or registration of the named insured or other operator covered by the policy.

A person acting as an insurer without a Certificate of Authority and collects $150,000 in premiums is guilty of which of the following? A 3rd degree misdemeanor B 2nd degree felony C 1st degree felony D 2nd degree misdemeanor

C 1st degree felony - A person, while acting as an insurer without a Certificate of Authority, is subject to not more than 30 years imprisonment if the total premium collected is over $100,000.

For a dwelling with limits of at least $100,000, but less than $250,000, the insurer may, in lieu of offering a policy with a $500 hurricane deductible, offer a policy that: A Contains up to a 4% hurricane deductible B Contains up to a 6% hurricane deductible C Contains up to a 2% hurricane deductible D Contains up to a 10% hurricane deductible

C 2%

Under the BOP, the insurer may examine and audit books and records at any time during the policy period and up to how many years following policy termination? A 7 B 5 C 3 D 1

C 3

The insurer may cancel a BOP when an insured building has been vacant or unoccupied for how many days? A 30 B 120 C 60 D 90

C 60

A person must maintain proof of financial responsibility if physically present within Florida for more than how many days during the preceding 365 days? A 30 B 60 C 90 D 120

C 90

Which of the following best describes a hostile fire? A The fire in the firebox of a furnace B A fire in a trashcan being used to burn leaves C A fire caused by a spark escaping from a fireplace and igniting a carpet D A fireplace fire whose heat can be felt through the glass fireplace door

C A fire caused by a spark escaping from a fireplace and igniting a carpet

With regard to civil immunity and testimony, which of the following is false? A A person may ask to be excused from testifying or producing records involving an examination, hearing, or investigation conducted by the Department of Financial Services or Office of Insurance Regulation, for fear of self-incrimination B Only a person providing untruthful information about the financial condition of an insurer may be subject to civil liability C A person providing truthful information about the financial condition of an insurer may still be subject to civil liability D Any person may provide the Department of Financial Services or Office of Insurance Regulation with information about the financial condition of an insurer

C A person providing truthful information about the financial condition of an insurer may still be subject to civil liability

Choose the statement that is true about the payment of claims. A An insurer must pay or deny any claim no later than 90 days after receiving the claim B As long as the claim is settled, it doesn't matter how the third-party spends the claim benefit C A property insurer must transmit claims payments directly to the primary policyholder D An insurer must contact the Department of Highway Safety and Motor Vehicles records to determine whether a partially damaged vehicle owned by the insured is subject to any liens

C A property insurer must transmit claims payments directly to the primary policyholder

Which of the following is true about an insurance agency? A An agency license must be renewed annually B If an agency fails to file a license application, a fine of $5,000 will be levied C An agency must have a licensed and appointed full-time agent in charge D An agent working out of his home must be licensed as an agency

C An agency must have a licensed and appointed full-time agent in charge

Which of the following statements is false regarding appointments? A An agent may present a proposal to an insurer that has not appointed him/her, if the sale is in the business for which he/she is licensed B An agent is required to have a separate appointment by each insurer by whom he/she is appointed C An agent is not required be appointed with an insurer in order to earn a commission, but must be appointed to deliver a policy D An agent may hold all categories of appointments as to which he/she has qualified and been licensed

C An agent is not required be appointed with an insurer in order to earn a commission, but must be appointed to deliver a policy

Which of the following are part of the legal responsibility of maintaining an insurance license? A An agent must inform the Department of any change in address within 60 days B An agent must inform the Department of any change in address within 90 days C An agent must inform the Department of any change in address within 30 days D An agent must inform the Department of any change in address within 10 days

C An agent must inform the Department of any change in address within 30 days

The Market Investigation division includes four sections with unique duties. Which of the following is not one of those four sections? A Life and Health B Special Investigation Unit C Approval D Market Analysis

C Approval

ACV is generally used for which of the following types of claims? A Businessowners Property B Workers' Compensation C Auto Physical Damage D Umbrella

C Auto Physical Damage

An insured accidentally backs into the neighbor's son on his skateboard. The son has medical expenses and there is damage to the skateboard. Which sections of the insured's policy will pay? A Personal injury and property damage B Medical payments and collision C Bodily injury and property damage D Bodily injury and collision

C BI & PD

The taking of property from inside the premises by a person committing forcible entry defines a: A Borrowing B Robbery C Burglary D Mysterious disappearance

C Burglary

All of the following are true of Section II of the Businessowners Coverage Form, except: A Includes the cost of defending the insured B A personal injury loss must be committed in the coverage territory during the policy period C Business liability coverage applies to damage to an insured's property or work D Bodily injury coverage does not apply to rendering or failure to render professional services

C Business liability coverage applies to damage to an insured's property or work

Which of the following is not a duty of the Florida Surplus Lines Service Office? A Receive all surplus lines insurance policies or documents B Collect and remit the surplus lines tax to the department C Collect a service fee of up to 3.0% of the total gross premium of each surplus lines policy for the cost of operation of the service office D Prepare and send surplus lines records and reports to the service office

C Collect a service fee of up to 3.0% of the total gross premium of each surplus lines policy for the cost of operation of the service office - The Service Office also collects a service fee of up to .3% of the total gross premium of each surplus lines policy from each surplus lines agent for the cost of operation of the service office, facilitates and encourages compliance with the surplus lines, and prepares and delivers quarterly business reports to each surplus lines agent.

hich of the following carries people and property belonging to the general public, for a fee, from one place to another? A Contract carrier B Livery C Common carrier D Motor carrier

C Common carrier

Which of the following insurance forms is designed for the person who has the potential for a liability exposure caused by negligent acts of the contractor or subcontractor he hires to make repairs, construction, or alterations? A Contractual Liability Insurance B Completed Operations Insurance C Contingent Liability Insurance D Contractors Liability Insurance

C Contingent Liability Insurance

What is the term for a contract written by one party on a "take it or leave it" basis? A Conditional contract B Bilateral contract C Contract of Adhesion D Aleatory contract

C Contract of Adhesion

Choose the false statement about the Contributory Negligence Law. A Medical expenses are an example of economic damages B Comparative fault is determined by charging liability proportionately C Contributory fault bars recovery in any other means D Negligence is a duty that was breached causing an injury to another person

C Contributory fault bars recovery in any other means -

How is Mobile Home insurance written? A By adding a Mobile Home Endorsement to a Homeowners Policy only B Mobile homes cannot be covered C Either by writing a separate Mobile Homeowners Policy or by adding an endorsement to a Homeowners Policy D By writing a separate Mobile Homeowners Policy only

C Either by writing a separate Mobile Homeowners Policy or by adding an endorsement to a Homeowners Policy

Which of the following is not found on the Declarations Page? A Limit of liability B Insured property address C Exclusions D Expiration date of the policy

C Exclusions

Which of the following definitions is correct? A A nonadmitted insurer is an insurer that is licensed as a foreign insurer in Florida B Admitted carriers are those that are domiciled in Florida C Insurers are persons engaged as indemnitors, sureties, or contractors in the business of entering into contracts of insurance D An insurance contract is not legally enforceable

C Insurers are persons engaged as indemnitors, sureties, or contractors in the business of entering into contracts of insurance

Each participant of a Lloyds association: A Is legally liable for the unpaid part of any loss sustained by all defaulting underwriters B Participates on every policy issued C Is individually liable for each risk they assume D Insures against every risk that is underwritten

C Is individually liable for each risk they assume

Which of the following is true regarding the Fine Arts Floater? A It has automatic coverage for only 30 days on newly acquired articles B Coverage is limited to the United States, Canada, and Mexico C It covers such items as paintings, rare manuscripts and antiques D Loss is paid on an actual cash value basis

C It covers such items as paintings, rare manuscripts and antiques

The Difference in Conditions Policy is a special form used to fill in gaps of a property policy. Which of the following is true regarding this policy? A It is written with a minimum of 80% co-insurance B It is written with a Standard Deductible of $1,000 C It is generally written on an open perils basis, excluding losses by perils that are covered under standard property forms D The Standard DIC form is developed and filed by the NAIC

C It is generally written on an open perils basis, excluding losses by perils that are covered under standard property forms

All of the following are true of the Personal Auto Policy, except: A It provides no-fault in states that require it B It provides no coverage for personal effects in the vehicle C It is written only with split limits of liability D It provides insurance for vehicles with a gross vehicle weight of 10,000 pounds or less

C It is written only with split limits of liability

Which statement is true regarding the Employers Liability Insurance Part of Workers' Compensation? A It provides coverage for a worker injured in a state that is not listed on the Declarations B It is optional coverage not needed by most employers C It provides coverage for employment-related liability outside of Workers' Compensation statute D It includes employees as additional insureds

C It provides coverage for employment-related liability outside of Workers' Compensation statute

Q runs a stop sign causing an oncoming vehicle to swerve and hit a tree. Q is guilty of: A A criminal violation B Trespassing C Negligence D No wrongdoing

C Negligence

What is the term for continuous exposure to the same harmful conditions? A Proximate cause B Accident C Occurrence D Risk

C Occurrence

Which of the following is false with respect to pure comparative fault? A Each party would be able to collect from the other for the amount of damages that equal the percent of being free of fault B There is no recovery if a person is injured while under the influence of drugs or alcohol and more than 50% at fault C Only one party may be at fault D Each party to the action will be evaluated and determined to be a certain percent at fault

C Only one party may be at fault

The Scheduled Articles Floater provides which of the following coverages to described property? A Replacement cost B Named Perils C Open Perils D Blanket coverage

C Open Perils

The HO-3 dwelling and other structures coverages are insured on which basis? A Basic perils B Extended perils C Open perils D Broad perils

C Open perils - Coverages A and B are insured on an open perils basis, under which all perils are insured against unless specifically excluded.

The Business Auto Coverage Form is intended for which of the following businesses? A Owned, leased, hired or borrowed private passenger autos only B Owned or hired trucks, trailers and semi-trailers only C Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers D Owned, leased, or hired trucks, trailers and semi-trailers only

C Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers

Which of the following is an example of general damages? A Loss of income B Repair costs C Pain D Medical expenses

C Pain - Special damages are an award to an injured party for actual and known expenses such as bills, loss of earnings, and the costs of repairing or replacing damaged property. General damages are paid to compensate losses that cannot be calculated objectively.

Bodily injury is best described as: A Any injury causing hospitalization, disability, or loss of income B All financially measurable injuries directly sustained, including libel, slander, false arrest, invasion of privacy, and copyright infringement C Physical injury or death arising from the negligent acts of an insured D Any injury resulting in bleeding, bruising, bone fractures, or disfigurement

C Physical injury or death arising from the negligent acts of an insured

Which of the following is NOT a 'residence premises' in the homeowners policy? A A one-family residence where the named insured resides B A three-family dwelling where the named insured resides C Premises rented occasionally to the named insured for non-business purposes D Other structures on the Declarations if shown as the 'residence premises'

C Premises rented occasionally to the named insured for non-business purposes

Which of the following is NOT a general duty and power of the Office of Financial Regulation? A Taking over insolvent companies and attempting to restore financial integrity B Auditing insurers C Qualify all foreign corporations to do business in Florida D Enforcement of the Insurance Code

C Qualify all foreign corporations to do business in Florida - Qualifying all foreign corporations to do business in Florida is a general duty and power of the Secretary State, not the Office of Financial Regulation.

Which of the following is correct with regard to surplus lines? A Applicants for surplus lines coverage must verify that a diligent effort has been made to procure the full amount of required insurance from an authorized insurer before pursuing surplus lines coverage B The premium rate at which the coverage is exported may be lower than the rate in actual and current use by a majority of the authorized insurers for the same coverage on a similar risk C Residential and multi-peril residential policies are subject to the diligent effort requirements D The policy form under which the insurance is exported may be more favorable in coverage or rates to the insured than similar contracts in actual current use in Florida by the majority of authorized insurers

C Residential and multi-peril residential policies are subject to the diligent effort requirements

What is the date after which an occurrence can take place and be covered under the claims-made form? A The Expiration Date B The Effective Date C The Retroactive Date D The Countersignature Date

C Retroactive date

Which of the following is true regarding the Self-Insured Workers' Compensation Program? A Self-insurance is allowed in all states B Self-insurance for Workers' Compensation is most generally used by smaller employers, who cannot afford to purchase Workers' Compensation insurance C Sometimes large employers are attracted to self-insurance plans because losses can be predictable and benefits are capped by statute D Benefits under self-insurance differ from those provided by Workers' Compensation insurers

C Sometimes large employers are attracted to self-insurance plans because losses can be predictable and benefits are capped by statute

K owns several buildings at different locations with each one insured on a separate policy. Which of the following methods of writing insurance does this describe? A Blanket B Scheduled C Specific Limit D Agreed Value

C Specific Limit - Since each property is covered under a separate policy, each with a unique coverage limit, each property is written on a specific limit basis. A loss to any one property would not affect the policies covering the other properties.

The type of absolute liability that applies to products is called: A Vicarious liability B Comparative liability C Strict liability D Assumption of risk

C Strict liability

All of the following coverage forms may be added to the Commercial Property Coverage Part, except: A Building and Personal Property Coverage Form B Commercial Builders Risk Coverage Form C The Businessowners Policy D Legal Liability Coverage Form

C The Businessowners Policy - The BOP is designed as an alternative to the CPP, and cannot be added to it as a coverage part.

Which of the following handles unclaimed property? A The Department of Financial Services B The Division of Consumer Services C The Department of Commerce Division of Unclaimed Funds D The Division of Rehabilitation and Liquidation

C The Department of Commerce Division of Unclaimed Funds

Under Florida law, how is the deductible determined when there are hurricane losses on multiple policies issued by the same insurer within a calendar year? A The deductible will be the lowest amount stated in any one of the policies B The deductible will be waived C The deductible will be the highest amount stated in any one of the policies D The deductible will be capped at $500

C The deductible will be the highest amount stated in any one of the policies

Which of the following is not a characteristic of the employer-employee relationship as it related to Workers' Compensation coverage? A The employer supplies the necessary tools and equipment B The employer directs the way work will be completed C The employer signs a contract with the employee D The employer determines the work hours

C The employer signs a contract with the employee - An employer-employee relationship exists if the employer: Retains the right to direct the way work shall be completed; Supplies the necessary equipment and tools to complete the work; Determines the work hours; Determines the end results of the work to be completed; and Controls the frequency and timing of compensation for work. The existence of a contract is not evidence of an employer-employee relationship, as the employer may also enter contracts with independent contractors.

Under which of the following circumstances would the Limited Theft Coverage endorsement be used? A The insured dwelling is owner-occupied B Coverage is desired for off-premises property C The insured dwelling is tenant-occupied D Coverage against vandalism is needed for a dwelling vacant more than 60 days

C The insured dwelling is tenant-occupied - The Limited Theft Coverage endorsement must be used if the dwelling is tenant occupied. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. There is no off-premises coverage under this endorsement.

Which of the following best defines short rate cancellation? A The premium is fully earned by the insurance company B The insured will receive none of the unearned premium C The insured will receive less than the full amount of the unearned premium D The insured will receive exactly half of the unearned premium

C The insured will receive less than the full amount of the unearned premium

All of the following are true of the supplemental extended reporting period, except: A It is an optional extended reporting period of unlimited duration B It must be purchased within 60 days after the end of the policy C The insurer may cancel it after the premium has been paid by the insured D The one time premium may not exceed 200% of the annual premium for the coverage part

C The insurer may cancel it after the premium has been paid by the insured

All of the following are true of the supplemental extended reporting period, except: A The one time premium may not exceed 200% of the annual premium for the coverage part B It must be purchased within 60 days after the end of the policy C The insurer may cancel it after the premium has been paid by the insured D It is an optional extended reporting period of unlimited duration

C The insurer may cancel it after the premium has been paid by the insured - Once the premium has been paid, the Supplemental Extended Reporting Period Endorsement cannot be cancelled.

Which of the following statements is correct concerning the required time periods under loss payments? A An agent or insurer must acknowledge receipt of a communication regarding a claim within 10 working days B The insurer must pay or deny the entire portion of the claim within 15 days after receipt of notice of a property insurance claim C The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim D The insurer must begin investigating the claim within 14 calendar days after receiving proof of loss statements

C The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim - The insurer must begin investigating the claim within 10 working days after receiving proof of loss statements. An agent or insurer must acknowledge receipt of a communication regarding a claim within 14 calendar days. The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim.

Which of the following would not reduce the general aggregate limit under a CGL? A The insured misappropriates the advertising slogan of a competitor B A small fire in the insured's office causes damage to the leased premises C The insurer pays a claimant injured by a product made by the insured D A customer is injured on premises and the insured calls an ambulance to take the injured party to the hospital for treatment

C The insurer pays a claimant injured by a product made by the insured

Which of the following is false regarding the Building and Personal Property Coverage Form? A Trees, shrubs and plants are covered up to $1,000 with a sublimit of $250 for any one tree, shrub or plant B Newly acquired or constructed property is automatically included for 30 days, not exceeding $250,000 for each building C The policy covers vehicles licensed for road use D Business personal property includes property that is either in the building or within 100 feet of the building

C The policy covers vehicles licensed for road use

Which of the following is true about binders? A A binder always expires 15 days after its inception date B A binder will not end when the policy is issued C The premium amount is not stated in a binder D A binder does not name the company providing coverage

C The premium amount is not stated in a binder - A binder is a legal agreement that serves to effect insurance coverage temporarily until the actual insurance policy can be issued. It contains only the essential coverage information, except the premium amount.

The implied warranty of seaworthiness is understood to mean which of the following? A The crewmembers are all certified B The ship has a full complement of emergency navigation equipment C The ship must be seaworthy and have a competent crew D The ship must have undergone a comprehensive inspection by the insurer

C The ship must be seaworthy and have a competent crew

An insurer must offer alternative deductible amounts applicable to hurricane losses equal to $500, 2%, 5%, or 10% of the policy dwelling limits, unless: A The specific percentage deductible is less than $250 B The specific percentage deductible is more than $500 C The specific percentage deductible is less than $500 D The specific percentage deductible is equal to $500

C The specific percentage deductible is less than $500

All of the following are true of liability policies, except: A They are designed to cover third party injuries or damages B They will pay sums that the insured becomes legally liable to pay C They will cover damage to the insured's own property D They do not cover medical expenses incurred by the insured

C They will cover damage to the insured's own property

Which of the following is false regarding dwelling policies? A Farm dwellings are not eligible B Mobile homes are eligible if written on a DP-1 C Trees, shrubs and plants are covered for up to $2,500 total D Incidental business occupancies are permitted

C Trees, shrubs and plants are covered for up to $2,500 total - The limit for trees, shrubs and plants is $500 for any 1 item or 5% of Coverage A.

When the insurance company and insured cannot agree upon the amount of the loss, the person selected to help the two hired appraisers is called a(n): A Agent B Adjuster C Umpire D Claim representative

C Umpire - Both the insurance company and insured's representatives (usually appraisers) will select a third person to serve as an umpire. If the two appraisers fail to agree on the appraisal, they will submit their differences to the umpire, and an agreement of any two of the three will set the amount of the loss.

Which of the following best describes the situation when a property has neither contents nor occupants? A Abandonment B Unoccupancy C Vacancy D Ordinance or Law

C Vacancy

In the event of the total loss of a building, the insurer's liability under the policy if caused by a covered peril will be the amount of money for which the property was insured. This describes which of the following? A Replacement Cost B Insurance to Value C Valued Policy Law D Agreed Value

C Valued Policy Law - The policy Coverage A amount will be the insurer's liability regardless of the replacement cost of the dwelling, but it does not apply if there has been any change increasing the risk without the insurer's consent or fraudulent or criminal fault on the part of the insured or acting in the insured's behalf.

Under the Building and Personal Property Coverage Form, coverage applies to all of the following, except: A A tenant's interest in a built-in wall cabinet B Materials that are within 75 feet of the premises C Windstorm damage to outdoor signs not attached to the building D Personal property used to service and maintain the building

C Windstorm damage to outdoor signs not attached to the building

An exported insurance policy may not provide for deductible amounts other than those available under similar policies in actual and current use, except for: A Commercial policies B Auto liability policies C Windstorm policies D Flood policies

C Windstorm policies

Workers' Compensation provides coverage for all of the following, except: A Medical expenses B Disability income C Pain and suffering D Death

C pain and suffering

In the event of the total loss of a building, the insurer's liability under the policy if caused by a covered peril will be the amount of money for which the property was insured. This describes which of the following? A Insurance to Value B Agreed Value C Valued Policy Law D Replacement Cost

C valued policy law - The policy Coverage A amount will be the insurer's liability regardless of the replacement cost of the dwelling, but it does not apply if there has been any change increasing the risk without the insurer's consent or fraudulent or criminal fault on the part of the insured or acting in the insured's behalf.

Which of the following is correct concerning the Commercial Property Special Causes of Loss Form? A Coverage is provided for all losses except as specifically limited or excluded B Other than coverage for some additional perils, the coverage is identical to that of the Broad Form C Coverage is included for the peril of Earthquake D Coverage is included for loss of Business Income

Coverage is provided for all losses except as specifically limited or excluded

All of the following are true about the Limits of Liability under Section II of the BOP, except: A The Liability and Medical Expense limit applies per person or organization for personal injury claims B The Medical Expense limit is a per person limit C The Damage to Premises Rented to You limit applies only to premises rented to the insured D The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit

D The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit - The Products and Completed Operations aggregate limit is twice the Liability and Medical Expense limit.

Which of the following statements about medical payments is true? A They apply to all persons, including the insured on the premises for any reason B They apply to all expenses incurred within 5 years of the accident C They apply to members of amateur athletic teams sponsored by the insured D Payments are made regardless of fault or negligence

D Payments are made regardless of fault or negligence

All of the following are true of the Business Auto Coverage Form, except: A Coverage may be written on owned private passenger autos B Coverage is primary on owned autos and excess on non-owned autos C Medical payments coverage may be added by endorsement D Uninsured Motorist Coverage is included in Section II

D Uninsured Motorist Coverage is included in Section II

A diligent effort for a residential structure with a dwelling replacement cost of $250,000 means rejections from how many authorized insurers are required? A 3 B 1 C 4 D 2

D 2 - For a residential structure with a dwelling replacement cost of less than $1 million, rejections from three authorized insurers are required, and if $1 million or more, rejection from at least one authorized insurer is required to constitute diligent efforts to obtain insurance from an unauthorized insurer.

A new agent must complete ______ hours of continuing education every ______ year(s). A 30 hours/3 years B 20 hours/1 year C 30 hours/2 years D 24 hours/2 years

D 24 hours/2 years

The records that agents are required to maintain must be maintained for: A 2 years B 7 years C 4 years D 3 years

D 3 years

A change of address must be reported to the DFS within how many days after moving? A 20 B 15 C 60 D 30

D 30 - A new residence address, principal business street address, mailing address, contact telephone numbers, including a business telephone number, or e-mail address must be reported to the Department of Financial Services within 30 days.

A driver's license may be issued to a 16 or 17 year old who completes an application and the parents certify that they accompanied her for how many hours of behind-the-wheel experience? A 75 B 90 C 30 D 50

D 50

In property insurance, which clause prevents the insured from relinquishing ownership and leaving damaged property to the insurer and claiming a total loss? A Assignment B Claim Settlement C Loss Payable D Abandonment

D Abandonment

Z is a distributor of natural gas. While connecting gas to B's house, an explosion occurs and the house is destroyed. Z's defense is that B did not turn off the pilot light on her furnace before the hookup as instructed by the company. The court ruled that the activities of connecting gas lines were so dangerous that Z's defense did not relieve its liability. What legal principle is applicable in this case? A Contributory negligence B Comparative negligence C Assumption of risk D Absolute liability

D Absolute liability

Which of the following is a function of the Bureau of Financial Investigations? A Handle consumer complaints B Prosecute violations of Insurance or Criminal law C Supervise insurer and agent licensing D Act as a criminal justice agency within the Department of Financial Services

D Act as a criminal justice agency within the Department of Financial Services

All of the following statements regarding the property policy structure are correct, except: A The insuring agreement describes the perils that are covered under the policy B The insured's duties and obligations are listed in the conditions section C The Declarations Page lists other parties having an insurable interest in the property D Additional coverages are added to the policy for an additional premium

D Additional coverages are added to the policy for an additional premium -Additional coverages are automatically included without an additional premium.

Which of the following statements is false regarding appointments? A An agent is required to have a separate appointment by each insurer by whom he/she is appointed B An agent may present a proposal to an insurer that has not appointed him/her, if the sale is in the business for which he/she is licensed C An agent may hold all categories of appointments as to which he/she has qualified and been licensed D An agent is not required be appointed with an insurer in order to earn a commission, but must be appointed to deliver a policy

D An agent is not required be appointed with an insurer in order to earn a commission, but must be appointed to deliver a policy

Which of the following statements is false regarding Certificates of Authority? A No person can act as an insurer unless authorized by a Certificate of Authority B A Certificate of Authority is not required for authorized reinsurance transactions C A Certificate of Authority is not required to transact surplus lines insurance D Any person who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in this state without a Certificate of Authority commits a misdemeanor

D Any person who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in this state without a Certificate of Authority commits a misdemeanor - actually commits a felony of the 1st, 2nd, or 3rd degree.

If the insured and insurer do not agree on the value of a property loss, what condition would apply? A Arbitration B Subrogation C Abandonment D Appraisal

D Appraisal

Under a CGL, at what point in time is the earned premium determined by the premium audit? A At the time the premium deposit is made B At the beginning of the policy period C Monthly D At the end of the policy period

D At the end of the policy period - An additional premium is required if the earned premium is greater than the premium deposit. A premium credit (or refund) may apply if the deposit was greater than the minimum premium required by the audit.

The uniform document that common carriers are required to issue to the shipper of the goods being transported, is called a: A Shipping Receipt B Bill of Transportation C Bill of Acceptance D Bill of Lading

D Bill of Lading

Section II of a Homeowners policy may cover which of the following incidents? A The homeowner's family dog bites their 2 year old son B The insured hits and injures a swimmer while enjoying a ride in an owned inboard motorboat C An insured's guest damages the stair railing during a visit D Bodily injury caused by an insured's activities while picnicking at a city park

D Bodily injury caused by an insured's activities while picnicking at a city park

Choose the false statement about the Contributory Negligence Law. A Medical expenses are an example of economic damages B Negligence is a duty that was breached causing an injury to another person C Comparative fault is determined by charging liability proportionately D Contributory fault bars recovery in any other means

D Contributory fault bars recovery in any other means

The Home Day Care endorsement does not provide which of the following? A Coverage on the residence premises B A policy year aggregate limit for personal liability and medical payments C Medical payments D Coverage for a day care employee

D Coverage for a daycare employee

Which statement is true concerning Section II of a Homeowners Policy? A Medical payments coverage is available for the insured and resident relatives B Medical payments will pay for a maximum of 1 year from the date of the accident C Medical payments coverage is not available for a residence employee D Damage to Property of Others coverage is provided up to a specified limit regardless of negligence

D Damage to Property of Others coverage is provided up to a specified limit regardless of negligence

Which of the following claims would be covered by Collision Coverage under Part D of the Personal Auto Policy? A Damage to the auto caused by collision with an animal on the roadway B Damage to the auto caused by objects blown into it during a severe windstorm or tornado C Breakage of the windshield caused by collision with a stone or other missile D Damage to the insured auto's bumper when the auto crashed into a tree

D Damage to the insured auto's bumper when the auto crashed into a tree

All of the following are an 'insured' under Larry's Business Auto Policy, except: A Tim, an employee driving a car Larry rented for business purposes B Larry, the named insured C Bob, the sales director at Larry's company using a covered auto with permission D Ed, who owns a car Larry borrowed

D Ed, who owns a car Larry borrowed

Which of the following relationships involves vicarious liability? A Wholesaler and retailer B Husband and wife C Teacher and student D Employer and employee

D Employer and employee

Which of the following is not a duty of the Department of Financial Services? A Liquidate insurance companies B Investigate fraud C Supervise methods of obtaining business D Enforces the Insurance Code by administering criminal penalties

D Enforces the Insurance Code by administering criminal penalties

All of the following are loss conditions of the BAP, except: A Duties in the event of an accident B Legal action against the insurer C Transfer of rights of recovery D Examination of Your Books and Records

D Exam of books and records - common pol condition of CPP

Who among the following applicants for a motorcycle license would be required to complete a motorcycle education course? A All first-time applicants B First-time applicants under the age of 16 C Applicants with a prior DUI conviction D First-time applicants under the age of 21

D First-time applicants under the age of 21

Losses that cannot be calculated objectively, such as pain and suffering or mental anguish, are considered: A Physical damages B Punitive damages C Special damages D General damages

D General - General damages are awarded to an injured party for pain, suffering, mental anguish, disfigurement, and similar losses. These losses cannot be calculated objectively and are assigned a specific dollar value.

Specified Causes of Loss under Physical Damage Coverage of the Business Auto Coverage Form includes all of the following, except: A Theft B Windstorm, hail or earthquake C Flood D Glass breakage

D Glass breakage

During a company golf retreat, the property of several guests is stolen from the golf resort's safe deposit boxes. Under the resort's commercial crime policy, which insuring agreement or endorsement would pay for this loss? A Outside the premises B Inside the Premises: Robbery or Safe Burglary C The guests would need to file a claim for this loss under their own homeowners policies D Guests' Property

D Guests' Property

The agent's fiduciary responsibility is to turn that money over to the insurer _____________. A Within 5 days B Within 3 days C Within 24 hours D Immediately

D Immediately

All of the following are producer responsibilities, EXCEPT: A Solicit and accept applications, and forward them to the insurer B Provide quotes and collect premiums C Represent the insurer D Issue policies

D Issue policies - insurer issues policies PRODUCER does not

Which of the following is true regarding the BOP's Time Element Utilities Services Endorsement? A It pays for loss to covered property caused by interruption of service B It increases the limit of insurance by the amount shown in the endorsement C It pays for loss to overhead transmission lines indicated in the schedule D It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises

D It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises - The Utilities Services Endorsement contains coverage for both direct and indirect damages. The indirect damage coverage includes business income and extra expense coverage.

Which of the following is not an exclusion under Section II of the Businessowners Coverage Form? A Employers Liability B Professional Liability C Watercraft Liability D Medical payments to volunteer workers

D Medical payments to volunteer workers

Which of the following correctly describes the practice of Twisting? A Entering into any agreement to commit an act of boycott, coercion, or intimidation resulting in an unreasonable restraint of the business of insurance B Representing to the applicant that a specific coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required C Offering anything of value to a client that is not already a part of the policy, as an incentive to purchase insurance D Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment

D Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment

Choose the statement that is false regarding the Citizens Property Insurance Corporation. A Property insurers may make agreements to insure applicants unable to procure windstorm insurance through ordinary methods B The association provides for windstorm coverage on residential properties up to $1 million for personal lines residential risks C The Department requires all insurers holding a certificate of authority, other than joint underwriting associations, to provide windstorm coverage to eligible applicants D Mobile homes are not eligible for coverage even if used as dwellings

D Mobile homes are not eligible for coverage even if used as dwellings

The loss of property when the cause of loss is not known is considered: A Burglary B Theft C Robbery D Mysterious disappearance

D Mysterious disappearance

An insurance license may not be suspended for which of the following? A Cheating on the license exam B Violating the code of ethics C Twisting D Over-insuring a health insurance risk

D Over-insuring a health insurance risk

In which section of the Workers' Compensation and Employer Liability policy would the policy conditions be found? A Part Eight B Part Four C Part Two D Part Six

D Part Six - The policy Workers' Compensation contains the following parts: General Section, Part One - Workers' Compensation Insurance, Part Two - Employers Liability Insurance, Part Three - Other States Insurance, Part Four - Your Duties if Injury Occurs, Part Five - Premium, Part Six - Conditions.

The Part of the Workers' Compensation Policy that includes States that are listed in the Information Page, is called: A The All-States Endorsement B Part Six - Conditions C The General Section D Part Three - Other States Insurance

D Part Three - Other States Insurance

Which of the following is not an additional coverage under the Building and Personal Property coverage form? A Debris removal B Fire department service charge C Preservation of property D Peak season

D Peak Season

The insuring agreement of a policy describes: A Perils that are not covered B The duties of the insured in the event of a loss C Transfer of the rights of recovery D Perils that are covered

D Perils that are covered - The Insuring Agreement includes the perils insured against. The duties of the insured and the transfer of recovery rights (subrogation) would be included in the policy's conditions. Excluded perils would be listed in the Exclusions section.

Liability coverage is designed to: A Cover injuries and damages caused by the insured's intentional and unintentional actions B Permit the insured to countersue the insurer for losses not covered C Protect an insured from being sued by an injured party D Protect the insured from bodily injury and property damage they are legally obligated to pay

D Protect the insured from bodily injury and property damage they are legally obligated to pay

Which of the following is not considered unethical as described in the Unfair Trade and Marketing Practices? A Rebating B Churning C Twisting D Representation

D Representation

Which statement regarding the Medical Payments Coverage of the Business Auto Policy is true? A Medical Payments Coverage also pays loss of income during disability arising from a covered accident B Medical Payments Coverage is designed to provide medical payments coverage for employees C Coverage is limited to medical expenses incurred in the first year after the accident D The BAP does not automatically include Medical Payments Coverage

D The BAP does not automatically include Medical Payments Coverage - Medical Payments Coverage is available by endorsement to the Business Coverage Form. The coverage is not automatically included in the commercial auto forms.

Section II of the BOP policy provides the same liability coverage as: A Professional Liability insurance B Business Liability insurance C Commercial Inland Marine insurance D The Commercial General Liability policy

D The Commercial General Liability policy - The liability coverages available on the BOP are the same as those provided by the CGL policy, including premises and operations, personal and advertising injury, products and completed operations liability, and medical payments coverage.

Which of the following is true of a Dwelling Form? A The Basic Form covers the contents on an open perils basis B The Broad Form covers the cost to repair defective plumbing C The Basic Form covers the contents against theft D The Special Form covers the building and other structures on an open perils basis

D The Special Form covers the building and other structures on an open perils basis

All of the following are true of the Dwelling Policy Broad Form, except: A The dwelling and contents are covered for the broad form perils B Losses to the dwelling are paid on a replacement cost basis C The broad form automatically covers incidental business occupancies D The broad form covers dwellings located on farms

D The broad form covers dwellings located on farms

Which of the following statements is NOT correct concerning mediation or appraisal? A Mediation may be requested only by the policyholder, as a first-party claimant, or the insurer B Mediation is nonbinding C Policyholders and insurers should try to resolve claims quickly and fairly before resorting to mediation or appraisal D The costs of mediation are shared by the policyholder and the insurer

D The costs of mediation are shared by the policyholder and the insurer

Which of the following statements is correct concerning the required time periods under loss payments? A The insurer must pay or deny the entire portion of the claim within 15 days after receipt of notice of a property insurance claim B The insurer must begin investigating the claim within 14 calendar days after receiving proof of loss statements C An agent or insurer must acknowledge receipt of a communication regarding a claim within 10 working days D The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim

D The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim - The insurer must begin investigating the claim within 10 working days after receiving proof of loss statements. An agent or insurer must acknowledge receipt of a communication regarding a claim within 14 calendar days. The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim.

Under the valued policy law: A The insurer's liability is the market value of the property insured B The valued policy payment applies even, if unknown to the insurer, the risk has increased C An agent or insurer must acknowledge receipt of a communication regarding a claim within 10 working days If the loss is less than the total amount insured, the insurer must increase the amount of the claim payment accordingly D The insurer's liability under the policy is the amount of money for which the property was insured

D The insurer's liability under the policy is the amount of money for which the property was insured

All of the following are included in the Declarations of a property policy, except: A The amount of coverage B The amount of premium C The named insured's mailing address D The perils insured against

D The perils insured against

Which of the following is true regarding Coverage A under the Dwelling Policy? A Coverage for land is restricted to the land upon which the dwelling is sitting B Coverage A includes a detached carport C Outdoor equipment is not covered D The policy does not include coverage for wind loss of television antennas

D The policy does not include coverage for wind loss of television antennas

Homeowners policies cover: A Money up to $500 B Water damage caused by flood, sewer backup and underground seepage C Theft of guns up to $3,000 D Theft of furs and jewelry up to $1,500

D Theft of furs and jewelry up to $1,500

Which of the following is NOT a purpose of licensing? A For the applicant to be familiar with the Florida insurance laws B To authorize and enable the licensee to actively and in good faith engage in the insurance business as an agent C To facilitate the public supervision of such activities in the public interest D To authorize the agent to insure risks

D To authorize the agent to insure risks - insurer auth NOT agent

Which of the following might be considered a negligent act? A Breach of an employment contract B Robbery of a sporting goods store C Assaulting a neighbor over a boundary dispute D Unintentionally renting a leaky boat to vacationers

D Unintentionally renting a leaky boat to vacationers - A negligent act is a type of tort, which rules out breach of contract. It must be an unintentional, civil tort, which rules out both robbery and assault.

Unlicensed entities is a regulatory concern due to which of the following issues? A State insurance department has minimal oversight over unlicensed entities B Rates are higher C Federal funds will pay unpaid claims D Potential for criminal activity

D criminal activity

The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus: A Employers liability B Liquor liability C Mobile equipment being transported on an auto owned or operated by an insured D Liability assumed under an insured contract

Liability assumed under an insured contract