Property and Casualty Insurance (Help)
What is the basic limit for Fire Damage Legal Liability in the CGL?
$100,000, subject to the aggregate limi
The maximum available for expediting expenses in a Boiler and Machinery coverage is:
$25,000
Under Florida statutes, a hurricane is said to begin when the National Hurricane Center of the National Weather Service issues a hurricane watch or warning. When is a hurricane said to end?
2 hours after the last watch or warning ends anywhere in the state
proximate cause?
An act of event that is the immediate or actual cause of a loss
In Crime insurance, the taking of property from within a premises by a person unlawfully entering the premises as evidenced by marks of forcible entry or exit is called:
Burglary
With respect to Florida Statutes, "transacting insurance," includes all of the following except:
Filing correspondence
Laws are made from
Florida legislator or Federal government.
An insurance company formed in any state, other than Florida, is known as:
Foreign
under which of the following condition can broad theft coverage be added to a dwelling policy?
If the insured is owner occupant of the dwelling.
Financial services commission
Is composed of the governor, - the Attorney General, - the chief financial officer, - the commissioner of Argo culture.
Insurance agents are licensed by:
The Department of Financial Services
Misrepresentation
Written and oral statement that does not accurately describe a policy features, benefits or coverage (lying or deceiving).
Fiduciary
held in trust; confidential.
Failure to notify the Insurance Department within 30 days of a change of name, residence address, or mailing address shall result in a fine not to exceed:
$250 for the first offense
A grave marker was damaged by vandals. It cost 3$,000 to have the damage repaired under the circumstances how much would the homeowners policy pay?
$3,000
Commercial property special form covers property in transit up to
$5,000 A commercial property special form property is in transit up to $5,000. This extension of coverage may be added to the special form. It's additional insurance ( in addition to the coverage limit) and coinsurance does not apply.
For the Small Business Boiler & Machinery form to be written, the 80% replacement cost cannot exceed:
$5,000,000
The standard deductible in the Small Business Boiler and Machinery coverage form is:
$500.00 The insured does have the option of electing other deductibles.
Agent Share commission ????
- A non-resident General Lines Agent - A resident General Lines Agent - An incorporated insurance agency CANNOT SHARE: - Real estate agent
Business oner policy [B.O.P] 2 Sections
- Property - No coinsurance, replacement for all damage to building stock, contents, improvement building value automatically increases 8% annually, appurtenant structure covered, personal property of others ACV $5,000 business personal property in transit $5,000 on property away from premises $100,00 on property at newly acquired premises (3o days), trees, plants, shrubs $500 each, $2,500 per occurrence . Automatic 25% seasonal increase for personal property if limit of liability is at least 100% of previous 12 months average. Up to 112 months loss of income or loss of rents - actual loss sustained basis, no dollar limit loss profits continuing expenses , extra expenses. - No coinsurance - No dollar limit - Will pay to 12 months loss sustained and to include lost profits - Tree trim $500 per tree, shrub or plants. Also covers up to $250 per occurrence. - Liability - $300,000, $500,000, million, $2 million combined single limit per bottle injury and property damage like CTL $5,000 Med payment per person, general aggregate (annual limit) I liability and nothing for two times limit selected; product - operation -two times the limits certain. Your legal liability $500,000 to $1,000,000. Optional coverageEmployee dishonesty, exterior signs exterior grade, for glass, mechanical breakdown for forever and AC, increase inflation guard, for burglary and robbery in standard form, money in security coverage available and special for money, covering the cost, disagreements and destruction. Max amount can go up to $2 MM per occurrence with a $4 MM aggregate
Joint Underwriting Association [FAJUA]
-Coverage is available to military nonresidents stationed in Florida. - Private passenger autos are eligible for liability coverage with limits up to 100/300/50, PIP, U/M. - Each licensed agent in Florida is assigned to one of the servicing carriers with which the agent places all risks to be insured in FAJUA. - Agents have authority to immediately bind coverage upon securing a completed and signed application and upon payment of the required premium deposit by the applicant.
Comprehensive Personal Liability covers those in the care, custody, or control of the insured if they are under:
21 years old
Builders Risk policy
4 additional coverage offered by the builder risk form are - debris removal - fire department service charge, - Pollutant cleanup removal, and - preservation of property. **Vandalism is AVAILABLE** ** it must be written on a reporting form for the completed value of the structure.**
If any licensee fails to be appointed, he/she is subject to losing his/her license. What period of time will trigger the termination of a license for failure to maintain an appointment?
48 months
After the expiration of an agent's appointment, how long does he/she have before his/her license expires?
48 months or self appoint
A temporary General Lines Agent license is only good for:
6 months
Small Business Boiler & Machinery policies have a required minimum property damage limit of:
80% of building replacement value
Homeowners Coverages
A - Dwelling B - Other structures C -Personal property D - Loss of use E - Personal Liabilty F- Medical payment to others
In order for an insurance company to transact business in the state of Florida (other than surplus lines) they must have:
A Certificate of Authority
A General Lines Agent may write health insurance with which of the following:
A Property & Casualty company authorized to write health insurance
Bill of lading
A bill of lading is a contract between the carrier and the shipper detailing the carrier's responsibilities and duties.
Photograph or's incisions major their equipment with
A commercial articles floater. The commercial article form cover photo equipment or musical instruments used commercially, such as by a professional band.
Boiler and Machinery Insurance would extend coverage in all of the following situations EXCEPT:
A compressor that explodes just after being placed on the spot where it will be installed. In order for them to be covered, an "object" in a Boiler and Machinery Insurance policy must be fully installed and any post-installation tests must be completed. The damage caused by the compressor would not be covered since the compressor was not installed at the time of the accident.
Domestic
A domestic insurer is one located in the State of Florida.
Direct Loss
A financial loss that results from the physical damage, destruction, or theft of the property. **proximate cause of loss** In insurance, the direct loss is the damage inflicted by a disaster, accident, or another event, referred to as "perils" in insurance language.Example: the fire burns the house down. The burnt down house as a direct Loss.or Example: Loss to your building or contents due to fire, smoke, shock damage from an earthquake or wind damage from a hurricane, etc. If a tornado strikes and it takes the roof off the building, a direct loss would include damage to the structure, as well as to equipment and other items inside.
Foreign
A foreign insurer is one located in the United States, but not in Florida.
Lucille is a licensed general lines agent. With which of the following may she NOT share commissions?
A life agent who refers the business to her This is stipulated under FS 626.753. Since the life agent does not write the same class of business, the statute does not allow the commission to be shared.
The Department of Financial Services may issue a customer representative license to which of the following:
A non-resident who lives in a state that shares a common boundary with Florida
In Ocean Marine insurance, a particular average refers to:
A partial loss
warranty
A statement of fact by the insure, guaranteed to be true, and which becomes part of the policy once written, describe.
What property is covered by Boiler and Machinery Insurance? A. Property of the insured B. Property in the insured's care, custody, or control C. Property for which the insured is legally liable
A,B, and C All of these types of property are covered. Note, however, that property in the insured's care, custody, or control is only covered if the insured is legally liable for it.
Each of the following is grounds for the compulsory refusal, suspension, or revocation of an agent's license or appointment EXCEPT:
Accepting commissions from an insurance company Accepting commissions from an insurance company is legal. The other actions would be either grounds for not issuing a licensing or for suspending or revoking a license that has already been issued.
Boiler & Machinery policies cover losses caused by:
Accidents
With respect to Florida Statutes, "transacting insurance," includes all of the following except:????????
Activities of a receptionist in an insurance agency - Preliminary negotiations of an insurance contract - Transactions of matters subsequent to the effectuation of the contract - Effectuation of a contract [gone into effect]
Agents in the state of Florida may rebate a portion of their commission to the customer. The agent must meet all of the following EXCEPT:
Agent must maintain a rebate schedule for two years. Should have: - The rebate must be available to all insureds in the same actuarial class. - Rebate schedule must be posted in the agency. - The rebate schedule must be filed with the insurer. - F.S. 626.572 requires that agents maintain copies of rebate schedules for the most recent 5 years.
A General Lines Agent may share his/her commission with which of the following:
All of the roles listed in the above choices In addition, the commission may be shared with another General Lines Agent.
All of the following may appoint a customer representative EXCEPT:
An insurance company may appoint a customer representative: - A General Lines insurance agent - An insurance company - A Surplus Lines agent that also holds a 2-20 license - A General Lines insurance agency
How often does domestic insurance company be examined by chief financial officer in Florida?
At least every 5 years. Exam I must be conducted at least once 5 years or frequently as deemed appropriate by the office.
If an insured me to stay financial requirement and it's approved to transact business in the state, it is considered to be
Authorized Ensure we made the state financial climate in our prayers to transact business in the state of consider authorize or admitted into the state as we go into.
Motor truck cargo policy - owner form
Average is written for direct damage to the owner property. If either of these forms as the motor truck cargo carrier form. Coverage is written on it (pieces. The form only covers good in or on a vehicle while in transit from where the shipment begins and final destination.
Bob and Sam, who both have Boiler and Machinery Insurance coverage, have had a rough week. At his shop, Bob's air-conditioning system short-circuited resulting in a fire that caused extensive damage. At Sam's shop, a leaky valve on a hot water heater gave way, and water inundated his showroom. Which of the following is true:
Bob's loss is covered, but Sam's is not. Losses due to leaky valves are specifically excluded under the Boiler and Machinery coverage form. Losses due to short-circuiting are not excluded.
NFIP Emergency program
Both A & B A -Goes into effect after the community has received a flood hazard boundary map and ends when the normal program begins. B - Provides limited amounts of coverage at subside rates
How are the state insurance guaranty association funded?
By their members - authorized insuers Guarantee association are funded by their members: all authorized insurer are to contribute to the fund to provide for the payment of claims for insolvent insurers.
The administration of state insurance law is the responsibility of which of the following? A) Attorney General B) Director of Financial Regulation C) Governor D) Chief Financial Officer
Chief Financial Officer The administration of state insurance law is the responsibility of the Chief Financial Officer (CFO), Financial Services Commission and Director of the Office of Insurance Regulation.
A producer who fails to separate premium money from his own personal funds is guilty of
Commingling
And applicant for insurance agent license must
Completed pre-licensing education course Applicants for agent license must complete 40 hour prelicensing education course.
An insured under a Boiler and Machinery coverage form experiences a covered accident to a covered object. The damage results in a lack of power that, in turn, results in spoilage. Which endorsement can indemnify the insured for the spoilage loss?
Consequential Damage This endorsement is optional to the Boiler and Machinery coverage form.
Coverage D [homeowners]
Coverage D provide for loss of use coverage, which is an indirect loss.
Mailed Coverage Form
Coverage form is always written on reporting form basis, with report due within 30 days after the end of each reporting period shown in the declarations. This coverage is necessary for banks, truss companies insurance companies, fiduciary's and others. Cover property is divided into two different categories: 1. First class, certified, express or registered mail. 2. Please cover only one sent by registered mail.
Bailee's Customer policy
Coverage forms are used to cover losses to customer property and care, City of control of the insured. Each of these forms is on filed. - Bailee's Customer policy - the coverage form covers loss of customer property without regards to the insured they go liability for the loss. It covers both the Bailey's interest in the Bailors. ** Customer property whether or not the insured has been negligent **
Lucas has a Small Business Boiler and Machinery form for his warehouse. When a compressor in the air conditioner fails, it releases hazardous chemicals into the ground. Which of the following best describes the coverage available for clean-up?
Coverage is limited to $25,000. This applies not only to the Small Business Boiler and Machinery form, but also to the Small Business Boiler and Machinery Broad form and the Boiler and Machinery coverage form.
Coverage B [homeowners]
Covers other unattached structures and fixtures.
The Department of Financial Services may issue a temporary General Lines Agents license in all of the following cases EXCEPT:
Disability of a spouse Issue temporary License for: - Military duty - Death of an agent - Mental disability
An alien insurance company is one which is:
Domiciled in a country other than the United States.
A foreign insurance company is one which is:
Domiciled in the United States, but not in Florida
Sliding
Ensure that an optional coverage as either1. required by law or 2. Include in the policy at no charge. It also means3. Adding a coverage to a policy without disclosing the coverage was added for additional premium.
Equipment breakdown basic
Equipment breakdown coverage covers the sudden and accidental breakdown of the vessel. - Business interruption may be added by endorsement. - Ordinance or law coverage - Loss of power, light, heat, steam or refrigeration What's a higher limit is shown on the declaration page equipment breakdown coverage will pay for direct damage as a direct result of breakdown to covered equipment up to $25,000.
All of the following are responsibilities of the Department of Financial Services EXCEPT:
Establishing and periodically reviewing companies' rules and rates Responsibilities of the - Department of Financial Services: - Issuing licenses to agents and adjusters - Examining insurance carriers' qualifications - Monitoring the financial condition of carriers The Department of Financial Services does not establish rules or set rates. It does monitor companies' qualifications and conduct.
Idemnity
Financial compensation sufficient to place the insured in the same financial position after a loss as they enjoyed immediately before the loss occurred. Put back in the same financial position. Identify means to return what is lost. Pro rata liability clause is designed to protect the principle.
Under Florida statutes, under what circumstances may an insurer discontinue the coverage afforded by a binder without providing the insured with a notice of cancellation or non-renewal?
For all property types other than auto, no notice is needed unless the binder is for more than 60 days. Note that if an insurer wishes to terminate coverage afforded under a binder for automobile insurance, 5 days' notice is required unless the binder is being replaced by either a policy or another binder from the same company. The answer here is the one that says "more than 60 days" because the statutes specify that the notice is required if the binder "exceeds" 60 days. In other words, "60 days or more" is not actually correct... 60 days is not "more than 60 days."
Upon the death of a worker, Workers Compensation pays a maximum death benefit of $150,000 plus:
Funeral expenses up to $7,500
Film coverage form
How was your new place or property when used in the production described in the declaration or one of the properties on or in the care, custody and control of the insured. Tape is considered a recorded one has been checked and replayed. Property is not covered include the following: - Cut outs - Insured footage - Positive prints or films - Library stocks - Contraband or property in illegal trade or transportation - Deterioration of a film - Exposure of a negative film to light - Electrical erasure of a tape
Under which circumstance(s) is rebating allowed in Florida? I. When it is available to all insureds in the same class II. When the rebate schedule is filed with the insurer III. When the insured purchases collateral lines with the same agentI V. Never
I and II I. When it is available to all insureds in the same class II. When the rebate schedule is filed with the insurer These requirements help ensure that any rebating is done in a fair manner to all insureds.
Debris Removal
If the debris was caused by peril that is injured against the reasonable cost of debris removal is paid by the insurer. There is no limit.
Indirect Loss
Indirect losses, ("consequential losses" in business insurance policies) are not inflicted by the peril itself but describe losses suffered as a result or consequence of the direct loss. ** Losing Income over the direct peril. ** Example: Sometimes called a consequential loss. Loss of rental value (loss of use) is an indirect loss that is covered on some policy forms. Losses of this nature nature are also called time element losses since they occur over a period of time.or Example: If a tornado destroys the roof of a store, the business cannot operate until the damage is fixed so the income lost during the rebuilding and, if customers stick with the alternatives they find in the meantime is an indirect loss. Or If a windstorm knocks down power lines up the street that feed your business which causes your perishable goods to spoil is an indirect loss.
Office of Insurance regulations [OIR]
Is responsible for all activities concerning ensures - Instituting legal proceedings - Enforcing the insurance code - Issuing Certificate of authority. - examines the book and records of insurance companies in Florida. - Enforcement of laws related to insurance. - Review rules and rates - Makes rating and underwriting rules - Ensure compliance with FL law. - Viatical settlement, - Premium financing - Policy form - including licensing - certificate of authority - rates policy forms - premium financing - claims - Solvency - Administrative supervision - any other related provision of the insurance code. - The directors commissioner of insurance regulation is head of OIR. - review of educational background of officer and directors of carriers. **DO NOT ENACT NEW LAWS** [ENFORCER]
Which of the following best describes a misrepresentation ?
Issuing sales material with exaggerated statement about policy benefit.
Indication a company is an unauthorized insurance entity ?
It has many underwriting guideline. Warning sign the company may be on authorize us to claim to have a little or no underwriting guidelines.
Commingling
It is illegal for insurance producer to come and go premium collected from their applicant of their own personal funds.
Motor truck cargo policy - carrier form
Jesus by a common carrier that transfer the good of others for a fee. Is legal liability coverage that protects the carrier when he gets liability for damage to the goods. The property of others is covered under basis.
The Department of Financial Services may issue a temporary General Lines Agents license in all of the following cases EXCEPT:
Leave of absence temporary General Lines Agents license allowed: - Mental disability - Death of an agent - Physical disability
The basic purpose of property policies is to indemnify the insured. All of the following violate that rule EXCEPT:
Losses settled on the basis of replacement cost less depreciation basic purpose of property policies is to indemnify: - Losses in which payment is based on sentimental value - Losses under provisions of the Florida Valued Policy Law - Losses in which replacement cost is paid
Which of the following is not considered a misrepresentation as a pertains to unfair trade practices?
Making comparison between different policies making an accurate comparison of policy is not illegal
Which of the following covers a carrier for liability for a loss cargo while being transported in a truck?
Motor truck cargo policy - Truckers form The motor truck cargo truckers as liability insurance and the owner form property coverage.
Personal floaters policy cover
Movable personal property, wherever it may be located. Personal photos referred to England rain posit designed to cover movable personal property wherever it may be located.
All of the following are true of coverage be other structure in homers policy except
Must be added by endorsement to homeowners policy. Is it automatically provide amount of insurance and coverage be that is equal to 10% of the amount of rent as her birthday. This amount may be increased by endorsement.
Under a dwelling policy, which of the following is NOT a factor in determining the loss
Negotiated by the insured
All of the following are ways that blanket coverage for Physical Damage on dealers' risks may be written under a Garage Policy EXCEPT:
Non-reporting blanket coverage for Physical Damage on dealers' risks may be written under a Garage Policy: - Scheduling - Reporting quarterly - Reporting monthly Under a Garage Policy, coverage for Physical Damage is written on either a reporting (either monthly or quarterly) or a non-reporting basis.
Rebating
Occurs when an agent gets back portion of the premium to the client.
A participating insurance policy may do that which of the following?
Pay dividends to the policy owner. Are you participate insurance policy will pay dividends to the owner based upon actual mortality cost, interest earned and cost.
Coverage E [homeowners]
Personal liability will respond if a claim is made or sue is brought against insured for damage due to bodily injury (BI) or property damage (PD) caused by an occurrence to which the coverage applies.
Churning
Persuading a client accounts on existing policy and rewriting it with the same insurer in order to receive a higher commission.
Twisting
Persuading the client to drop an existing policy in order to buy yours. Twisting is misrepresentation that persuades an insured or policy owner, to his or detriment to cancel, labs, or switch policies.
A non-resident licensee may do all of the following except:
Physically come into Florida for the purpose of transacting insurance without the presence of a licensed 2-20 agent
Conditional contract
Place limitation or qualifying statements on the insured promise to pay or perform. Including requiring the prompt payment of premium, providing notice and proof of loss. Includes the number of days notice the company must give for cancellation or non-renewal. What do you have conditions on them. Classes are paid only if the conditions are met. *Shows policy period, set for the the rules of duties, conduct, subrogation, appraisal, cancelallation and nonrenewable and obligation of the parties- States legal obligations and duties of the parties to the contract.* DOES NOT SHOW INSURING AGREEMENT
Why would participate in a write your own (WYO) flood insurance program?
Private insurers that wish to write and service national financial policy on a no risk bearing basis. WYO routine part of the flood insurance premium to pay for commission administrative costs. The remaining premiums plus, investments, are used to cover losses.
Pro rata
Pro rata liability clause is designed to protect the principle.
In accordance with the code of ethics agents must provide a completed application to
Prospective insured and the insurer Licenses agent should submit application to insurer with which hr or she is appointed and to the prospective insured.
When will ensure terminate an agent appointment and the Germans of the following except
Provide a 30 day advance notice on the commissioner. In appointing entity me terminate an appointment at any time, subject to am appointee's contract right and with a 60 day advance notice. Once the appointment is terminated, they appointing entity mist file written notice with the department of insurance within 30 days.
Under the CFO, the Department of Financial Services has responsibility for which of the following:
Regulation, compliance, and enforcement of laws related to insurance "Managing licensed entities" and "adjudication" are responsibilities of the OIR under the Insurance Commissioner. Legislation regarding insurance is the responsibility of the Florida Legislature.
Which of the following is used in the formula for calculating the actual cash value of a property?
Replacement cost
The Office of Insurance Regulation oversees all of the following except:
Review of educational background of Officers and term-9Directors of carriers Office of Insurance Regulation oversees : - Review of NAIC coordinated multi-state exams - Review of material changes in ownership of insurers domiciled in Florida - Review of periodic financial statements submitted by carriers This is one of the duties of the Bureau of Property and Casualty Insurer Solvency.
Temporary licenses issued for the purpose of continuing or winding up the business affairs of an agent are valid for:
Six months
Which of the following is NOT included as part of the statutory definition of windstorm:
Sleet FS 627.4025 defines windstorm as "wind, wind gusts, hail, rain, tornadoes, or cyclones caused by or resulting from a hurricane which results in direct physical loss or damage to property."
A licensed customer representative may do all of the following functions EXCEPT:
Solicit new clients outside the office
Which state entity decides conflicts between insurance companies and policyholders? A) State legislature B) State judicial system C) Office of Insurance Regulation D) Department of Financial Services Division
State judicial systemThe State judicial system also enforces the code by administering criminal penalties and decides if new laws are constitutional
Which of the following insurers are owned by stockholders ?
Stock Only stock insurance companies are owned and controlled by stockholders.
Each of the following activities requires that the person be a licensed agent EXCEPT:
Taking a photograph of the property to be insured. This activity does not require a license.
Proximate Cause
That cause which directly through an unbroken chain of events brings about a loss - if a covered peril is the proximate cause, the policy must pay. Example: Fire is the loss Peril --> smashed door -->Water damage from hoses. ** Fire is the proximate cause of all the subsequent damage"- Property damage- Water Damage- Smoke damage- Personal property damage
How much is the payment for the drawing under construction endorsement under the dwelling policy
The average amount of insurance during construction. The premium is based on the average value of the house building material from the first day of construction until completion.
A General Lines Agent may share his commission with all of the following EXCEPT:
The insured who pays the premium.
Mobilehome Endorsement
The mobile home endorsement alters the homeowners policy to cover the mobile home and other structure on the land owned or leased by the resident of the mobile home.
And individual pies for life policy. To years ago he suffered a head injury from an incident, so he can I remove part of his parents, but otherwise competent. He also has been hospitalized for drug abuse, but does not remember this when applying for insurance. The insured issues a policy and learns of his history one year later what would probably happen?
The policy will not be affected And insurance fraud is intentional misrepresentation of material information that is crucial in deciding whether or not to re-contract for an applicant in this particular instance the applicant did not commit intentional fraud.
The main difference between an HO for an HO6 is
They chose explore a limited dwelling coverage as well as content coverage. Which of our prize not dwelling coverage because the tenant is not on the dwelling the condo owner does on the condo and is providing coverage for my payment. Both each of our nature six cover theft and additional living expenses.
Which of the following statement is not true of an agent who sells elicited insurance in Florida on authorized insurance entities?
They not permitted to sell unauthorized insurance. The sale of an insurance from unauthorized entities in Florida is illegal it's a violation of the Insurance code. Agent who sells policies unauthorized insurer may be charged with a felony, it may be held liable for all of his remaining unpaid by the unauthorized entity
Which of the following is an example of producer fiduciary duties?
They trust that a client places in producer in regards handling premium.
And insured cover under in Mobile homeowners policy wants to remove the location of the covered mobile home. Which of the following must the insured obtain the insurer?
Transportation / permission to move endorsement If the insured wishes to move the mobile home and situation is not threatened by the insurer peril they must obtain the insured transportation/permission to move endorsement.
All of the following are covered under Section II of the Homeowners policy EXCEPT:
Vacant land on which the insured is (or will be) raising cattle - A vacant lot on the coast the insured is renting - A vacant lot on the coast used for beach access - A newly-acquired secondary residence Any improvement to the land would make it no longer vacant. Fences would be needed to keep cattle in.
Coverage under a floor plan merchandise form is written on a reporting form basis they require the insured to file reports with insurer. What is the timeframe of those reports?
Within 30 days after the end of each month
Joe Redner is building a new home. Is he eligible for Homeowners Insurance on the new home while it is under construction?
Yes, if otherwise eligible
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a)Consideration b)Legal purpose c)Contract of adhesion d)Acceptance
a)Consideration **Consideration because underwriting has not reviewed the app.** Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application.
An owner of a parking lot wants liability coverage for damage to vehicles while in her custody. She needs a)Garagekeepers coverage. b)Motor carrier coverage. c)Business auto coverage. d)Garage liability coverage. Garagekeepers insurance provides physical damage coverage on customers' autos while in the care, custody, and control of the garage operation.
a)Garagekeepers coverage. Garagekeepers insurance provides physical damage coverage on customers' autos while in the care, custody, and control of the garage operation.
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy? a)It removes the coverage. b)It broadens the coverage. c)It limits the coverage. d)It has no effect on this coverage.
a)It removes the coverage. The mobilehome endorsement makes the other coverage of law or ordinance inapplicable to the policy.
Giving, as an inducement to contract insurance, special favors, advantages in the dividends or benefits, or any valuable consideration not specified in the contract is known as: a. Rebating b. Swirling c. Unfurling d. Retreading
a. Rebating
What is a written or oral statement that misrepresents terms, conditions or benefits of a policy so that the policyholder is induced to lapse on their current insurance or take out another policy? a. Twisting b. Unfair discrimination c. Rebating d. Sharing commissions
a. Twisting
What is the limit for the forgery or alteration coverage in the businessowners policy? a)$1,000 b)$2,500 c)$500 d)$5,000
b)$2,500 Under the forgery or alteration coverage in the businessowners policy covers loss due to forgery or alteration of an insured's check or promissory note. However, the limit is covered only up to $2,500.
An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay? a)$45 b)$60 c)$75 d)$100
b)$60 The policy will pay $20 per day after 48 hours, not to exceed 30 days in total. $20.00 x 5 = $60.00
An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? a)$32,000 b)80% of the property's replacement cost or more c)100% of the market value d)$400,000
b)80% of the property's replacement cost or more Math of 80%: 80% of $400,000 is $320,000 The coinsurance clause states that in consideration of a reduced rate, the insured agrees to maintain a certain minimum amount of insurance on the insured property. In the event of a covered loss, insurance is designed to pay replacement cost minus depreciation.
With regards to a homeowners policy, which coverage provides for indirect or consequential losses? a)Coverage C b)Coverage D c)Coverage A d)Coverage B
b)Coverage D Coverage D provide for loss of use, which is an indirect loss.
Transportation expenses are covered under a personal auto policy for a)$50 per day, for a maximum of $500. b)$50 per day, for a maximum of $750. c)$20 per day, for a maximum of $600. d)$25 per day, for a maximum of $500.
c)$20 per day, for a maximum of $600. Other-than-collision coverage provides $20 a day for up to 30 days following the theft of the entire auto, providing the auto is not recovered within 48 hours.
What term includes damage where the insured peril was the proximate cause of loss? a)Consequential loss b)Negligent loss c)Direct loss d)Indirect loss
c)Direct loss Direct loss is direct, physical damage to buildings and/or personal property. Direct loss also includes other damage where the insured peril was the proximate cause of loss.
All of the following are conditions commonly found in the insurance policy EXCEPT a)Subrogation. b)Appraisal. c)Insuring agreement. d)Cancellation and nonrenewal.
c)Insuring agreement. The insuring agreement provides information on the policy's coverages. Conditions state the legal obligations and duties of the parties to the contract.
A businessowner has a liability policy for his business. Sometime during the policy period, a loss occurs, but the businessowner does not become aware of the loss until several years after his policy expires. Which of the following types of policies would cover the loss? a)Errors & Omissions policy b)Special policy c)Occurrence policy d)Claims-made policy
c)Occurrence policy An occurrence policy covers loss that occurs during the policy period, regardless of when the claim is made.
Insurance is the transfer of a)Hazard. b)Peril. c)Risk. d)Loss.
c)Risk Insurance is a transfer of risk of loss from an individual or a business entity to an insurance company. Hazards are conditions that increase the probability of an insured loss occurring, and perils are causes of loss. Losses cannot be transferred.
All of the following situations would be covered under a professional liability policy EXCEPT a)An accountant's error that inflated a bid and caused a client to lose a major account. b)Negligence of an architect who designed an unsafe building. c)The failure of an attorney to properly defend a client due to his personal dislike of the client. d)Failure of a doctor to render the quality of care that is customary in the medical field.
c)The failure of an attorney to properly defend a client due to his personal dislike of the client. Intentional breach of duty would not be covered.
Under the provisions of the business income coverage form, all of the following are true, EXCEPT a)The insured agrees to resume all or part of operations as quickly as possible. b)The insured is reimbursed for payroll that continues after the loss begins. c)The insured is reimbursed for the loss from the date of loss to date of restoration or policy expiration date, whichever comes first. d)If the insured and insurer are unable to come to agreement as to the value of the loss, either party may make a written demand for an appraisal.
c)The insured is reimbursed for the loss from the date of loss to date of restoration or policy expiration date, whichever comes first. Business Income will pay beyond the expiration date of a policy. It will pay until the business is restored or the limits of coverage are exhausted.
Suggesting a policy is better suited for a prospective applicant than the facts would indicate is: a. Defamation b. Twisting c. Misrepresentation d. Rebating
c. Misrepresentation
The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly acquired property for a maximum of a)$15,000. b)$20,000. c)$5,000. d)$10,000.
d)$10,000. An extension of coverage is included for newly acquired property for 30 days for up to 25% of the total limit of insurance, for a maximum of $10,000.
Circulation of a maliciously critical statement about any insurer's financial condition to injure the insurer is called: a. Coercion b. Conservation c. Unfair discrimination d. Defamation
d. Defamation
All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT a.Claims expenses. b.Damage to the property of others. c.Loss assessment coverage. d.Personal injury.
d.Personal injury. Personal injury may be added by endorsement.
Unauthorized
not having official permission or approval. - They violate insurance code, - they may be hot label for loss is not paid by the entity, - they may be charged with third-degree felony.
Business oner policy [B.O.P]
- Insuring Apartment complex it has to be 6 stories or less 60 units or less, no more than 25,000 square feet mercantile space.-Insuring office complex 6 stories or less, 100,000 square feet or less, no more than 25,000 feet of mercantile, no more than 25,000 square feet or less of tenants space.- Insuring Mercantile, Service, Processing 25,000 square feet or less and gross sales under $3 million- Conveniences store, self storage - note exceed 2 stories in height.- Tree trim $250- Covers Commercial general liability, insure the building, business income / extra expense, trees, pants and shrubs.- $1 MM limit / $2 MM Aggregate. Would have to carry an umbrella policy for more liability coverage. - Replacement cost if you don't carry replacement cost you will have to pay 80% coinsurance.
Commissioner of insurance???
- An appointed official answer to the Chief financial officer (CFO). - It's in charge of the office of insurance regulation (OIR). - They are response for examining an insurance company financials (books and records), approving companies to do business in the state.
Commercial Package Policy (CPP) comes with
- Common policy declaration page, - Common policy condition, - Interline endorsement, - Coverage parts.
Commercial Package Policy (CPP) 7 coverage parts that may be included
- General liability - Commercial property (direct and indirect coverages) - Inland Marine - Commercial auto - Equipment breakdown - Crime and - Farm **Workers compensation coverage not available**
Department of financial services [DFS]
- Monitoring the financial condition of carriers, - examining insurance carriers qualifications, - Admitting new insurance carrier to practice in the state - purpose of agent licensing - Do not Make rating and underwriting rules -competence -good moral character -monitoring - approves and issues license to agent - regulates insurance claims investigate allegations of ethical violations and ministries justice within the insurance industry. * Insurance regulations is conducted by the Department of financial services (DFS) overseen by the Chief Financial officer* *DO NOT MAKE LAWS*
Supplementary Payments
- Up to $250 for the cost of bail bonds - The cost of bonds to release any property of the insured's held by a plaintiff - Loss of earnings if the insured must miss work to testify, attend court, or otherwise assist in the defense. - Court costs or other costs assessed against the insured in a suit. - Interest on judgments awarded against the insured. Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured's earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer's request.
The Chief financial officer [CFO]
- examines the book and records of insurance companies in Florida. - Is an elected official and is the head of department of financial services (DFS). - Be satisfied that applicants for licenses are qualified to write and service Property and Casualty insurance - Appointed
Under business owner policy section 1 if the insurer wants to nonrenew policy for nonpayment of premium how many days before the expiration date must the insurer notify the mortgage holder?
10 days before the policy expires to notify the mortgagee holder.
General Lines Agents who hold a CLU or CPCU designation and have been licensed for 25 years must satisfy continuing education. How many hours are they required to complete?
10 hours
Understand your circumstances, continue education requirements may be extended 2 years period for a maximum period of
12 months Access classroom hours accumulating during any two-year period may be carried forward to the next two years. It's a good cause it's showing the department may grant an extension not to exceed one year.
The minimum age at which an individual may sign an insurance contract is:
15 years old Under FS 627.406, individuals who are 15 (based on their nearest birthday) can sign an insurance contract, even though they are a minor.
And agent has been convicted of a crime punishable by one year imprisonment. Within how many days mostly agent notify the department of insurance?
30 days Agent must notify the department of insurance in writing 30 days after being guilty of felony or a crime punishable by imprisonment of 1 year or more.
Temporary licenses issued for the purpose of continuing or winding up the business affairs of an agent are valid for:
6 months
If an agent is in the military, which of the following is true?
Agents are not allowed to sell insurance policies, contracts, or certificates of any active military person of their family as a prior proposed insured is lower rank or pay grade.
An insurance company formed in London which conducts business in Florida is known as:
Alien
A General Lines Agent may share his/her commission with which of the following:
All of the roles listed in the above choices. - A licensed customer service representative only. - A non-resident General Lines Agent only. - An incorporated insurance agency only. In addition, the commission may be shared with another General Lines Agent.
Alien
An alien insurer is one located in a country other than the United States.
The authority given by an insurer to an agent to transact business on behalf of the insurer is known as:
An appointment
A Customer Representative is appointed by which of the following:
An insurance agency Customer Representative is appointed: - An insurance company - The Department of Labor and Employment Security - The Department of Financial Services
An agent who fails to comply with Florida's continuing education law is subject to:
Appointments being non-renewed
All the following are true regarding rebates except
Are you guys are not allowed if it's in the best interest of the client. Insurance dividends are not considered rebating as the IRS consider it as a return for over paid premium..
What is the maximum period of time for which an agent's appointment may be suspended?
As provided for under FS 626.641, an appointment or a license can be suspended for up to 24 months.
Which of the following binders would require the insurer to provide the insured with a notice of cancellation if the insurer wanted to come off of the risk? I. A 40 day binder for automobile coverage II. A 40 day binder for homeowners coverage III. A 70 day binder for automobile coverage IV. A 70 day binder for homeowners coverage
I, III, and IV Under FS 627.420, cancellation of an automobile binder requires 5 days prior notice. For all other types of binders, no cancellation notice is required unless the binder is for a period of more than 60 days.Note that this question is asking about the cancellation of BINDERS not POLICIES. Under 627.420, a cancellation notice must be given for all auto policy binders (regardless of duration). Other policy binders require a cancellation notice only if the duration of the binder is more than 60 days.For all POLICIES, 45 days' notice is required for cancellation or non-renewal, although only 10 days' notice is required for cancellations due to nonpayment of premium.
Office of financial regulations [OFR]
Is responsible for the regulations of - financial services commission relating to the regulation of banks - credit unions - finance companies - Security industry - Head of this department is Director of commissioner - Includes Bureau of financial investigations that functions outside the state as deemed necessary to add in the enforcement of state laws. - The OFR may investigate wrongdoing and may refer to suspected violation of criminal law to state or federal law enforcement agency.
Declaration Page
Is the name and address of the insured, tell us which coverage forms and endorsements are attached, what location or property are covered, and what the policy limits are, and a second date and expiration date, and the policy premium.Declaration page policy that varies with each individual policy.
Commercial Package Policy (CPP)
Policy that covers two or more lines of business by combining ISO's commercial lines coverage parts.- Commercial property- CGL- Commercial crime,- Commercial Inland Marine- Boiler & Machinery- Commercial Auto or FarmCANNOT add Workers comp or a Business oner policy [B.O.P], these are standalone policies. Anytime you put two or more pieces of coverage together you form a CPP
You might receive dividends from a mutual insurer?
Policyholders A mutual insure has no stocks, it's on by the policy holders. Since they may receive a dividend and guaranteed, such policies are known as participating policies. Dividends received by policyholders of a mutual insurer are not taxable.
Consideration
Something of value given for contract. In the insurance for value given (premium payment) is in exchange for insurance coverage. Consideration is something of value that is transferred between the two parties to form a legal contract. - The premium amount paid at the time of application. - The promise to pay covered losses - Something of value exchanged between parties
Business oner policy [B.O.P] 2 Forms
Special -Name exclusion policyStandard - The owner can opt as an option to do basic perils instead of special.You cannot write this on a service station, auto dealers, bars, restaurants, contractors, wholesalers, banks and stockbrokers.
