2-20 Exam

The Commercial General Liability policy has a basic limit of $100,000 for Bodily Injury #15690 and Property Damage Claims for any one claims and a $200,000 basic limit for all claims for the entire term of the policy. How are these figures referred to in the CGL policy?

$100,000 Per Occurrence and $200,000 Aggregate Limit

A private passenger automobile policy has a single bodily injury liability limit of $300,000. #14497 The insured is involved in an at-fault accident and four individuals in the other car have injuries of $150,000 each. How much will the insured's policy pay in total?

$300,000

What amount will the insurer pay if an insured has a policy with $400,000 of #14498building coverage, an 80% coinsurance provision; a $500,000 building value and the building suffers a $50,000 loss?

$50,000

Miguel your PAP insured was in involved in a three car accident. His policy has #14504 Other Than Collision coverage with a $100 deductible and Collision coverage with a $500 deductible. The insured's vehicle has $7,500 in damages. How much will the insured collect from his insurer for the damage to his vehicle after applying the correct coverage and deductible?

$7,000

What is the required number of days an insurance company is required to put the #14488 insured on formal written Notice of Cancellation for the reason of "non-payment of premium"?

10 days

Struthers, your insured, has purchased a brand new vehicle which will be a #14490 replacement vehicle for her old broken down pickup truck. The finance company is requiring Comprehensive and Collision coverage to be placed on the vehicle. How many days does Lucille have to add the vehicle to her policy?

14 days

What is the minimum amount of coverage for Loss Assessment in a #14480 Florida HO-6 Condominium policy?

2,000

Insurance companies are required to provide a ___ days notice of a policy #14541 renewal or non-renewal.

45 days

Craig Gorney has suffered a compensable Theft loss and is in need of a temporary #14489 substitute vehicle while his claim is being resolved. You advise Craig that theTransportation Expense coverage begins ___ hours after a Theft loss.

48

A "____________" is defined as a private passenger auto, pickup, van or trailer not #14512 owned by or furnished or available for the regular use of the named insured or a family member, while being operated or in the care of the named insured or a family member.

A "non-owned auto" is defined as a private passenger auto, pickup, van or trailer not owned by or furnished or available for theregular use of the named insured or a family member, while being operated or in the care of the named insured or a family member.

How are benefits payable in the Hospital Indemnity Insurance policy?

A flat amount per day for hospitalization is payable regardless of expenses or other insurance

Insurance is designed to offset the financial impact upon an insured of pure risk. #14523 Which if any of the following is/are true regarding the concept of risk?

A)"pure risk" is only the chance of loss B)"speculative risk" is the chance of loss or gain both A & B are correct

Which if any of the following are true concerning Accident Insurance policies?

A)Accident Insurance policies have a special schedule of limits for dismemberment and death B)Accident Insurance policies may include provisions for hospital, physician, and nursing expenses C)Accident Insurance policies may include provision for lost wages All of the above

Definitions of total disability in a DI policy may include which if any of the following?

A)Complete inability to do any work B)Inability to work in an occupation for which the insured is qualified by reason of education, training or experience C)Unable to perform the duties of his or her own occupation All of the above

Major Medical Insurance typically covers which if any of the following?

A)Hospital Room and Board B)Operating Room C)X-rays, anesthetics, nursing services All of the above

Surgical Expense Insurance covers which if any of the following?

A)Surgical Expense Insurance covers fees of physicians for performing surgery B)Surgical Expense Insurance covers surgical procedures in a schedule with applicable dollar amounts of coverage Both A & B

The DP-1 basic coverages include? (choose all that apply)

A)fire B)lightning

The CGL will pay for the insured's legal liability for bodily injury or property #15684 damage that is caused by an occurrence. (what is the one best answer) How does the CGL define an occurrence?

A)the CGL defines an occurrence as a sudden an unexpected event B)the CGL defines an occurrence" as an accident, including continuous or repeated exposure to substantially the same general harmful conditions both A and B are correct

Aaron has an automobile insurance policy with the following limits: $50,000 per person and #14509$100,000 per occurrence of bodily injury with $100,000 for property damage liability

Aaron has a policy with split limits

Geri Curl's laptop was stolen at the Beauty Expo and a brand new laptop just like #14528 Geri's cost $1,499. Geri's insurance company pays her $999 ($1,499 less $500 of "depreciation"); this is an example of?

Actual Cash Value basis is where depreciation is deducted and the insured receives a claims payment to replace the item at its current cost minus depreciation.

Beth Buyers, your insured, incurred hail damage to all of the glass windows in her car, #14493 EXCEPT, her windshield. Beth has a $100 Other Than Collision deductible and a $250 Collision deductible in her Personal Auto Policy (PAP); she was told that glass claims are not subject to a deductible. How will you advise Beth?

All other glass claims are subject to either the applicable Other Than Collision or Collision deductible.

Which of the following statements concerning the Business Income Coverage Form #15674 is/are correct? I. Business Income Coverage ends when the damaged property is or could have reasonably been repaired, rebuilt, or replaced. II. Business Income Coverage ends when the insured's business resumes operations at a new permanent location.

Both

The Farm Coverage Form covers direct physical loss to which of the following? #15679 (select all that apply)

Coverage A Dwellings Coverage C Household Private Property Coverage E - Scheduled Farm Personal Property Coverage F - Unscheduled farm Personal Property

Which major federal law was established to promote accuracy, fairness, and #14536 privacy of information in the files of consumer reporting agencies.

Fair Credit Reporting Act

The Preferred Risk Flood Policy is available in which Flood Zones? (choose all that apply)

Flood Zone B Flood Zone C Flood Zone X

Florida Statutes (F.S. 627.67 1-675) require all Medicare Supplement Insurance #2157 policies to?

Florida Statutes (F.S. 627.67 1-675) require Medicare Supplement Insurance to: (a) have easy read policy language;(b) be returnable within 30 days of purchase for full premium refund; (c) provide an outline of coverage with a MedicalSupplement Buyers' Guide; and (d) limit coverage limitations for pre-existing conditions to six (6) months.

Which Health insurance provision provides a period of time after a premium is due #2128 and not paid that an insurer must keep the policy in force and accept a late payment?

Grace Period

Jim Smith has just purchased a Condominium and calls your agency to purchase a policy. #14473 Which policy type will you sell to Mr. Smith?

HO.6

Samuel Clements has a Homeowners Insurance policy with the Dwelling A #14516 Coverage at $300,000. He has a $1,000 All Peril Deductible and a 2% Hurricane Deductible. What is amount of the Hurricane Deductible expressed in dollars?

Hurricane Deductibles are calculated by multiplying the Dwelling Coverage amount by the hurricane percentage; in this question $300,000 X .02 = $6,000

The Sleepless in Seattle pillow company has suffered a fire loss in their factory. #15675 The insured has $100,000 of Extra Expense coverage with a 50%-75%-100 Limits on Loss payment condition. If it takes 120 days for Sleepless to repair the factory; how much of Sleepless in Seattle's $60,000 of incurred Extra Expenses will the policy pay?

In this example, the policy will pay up to 50% of the loss if the period of restoration is 30 days or less; up to 75% of the loss if the period of restoration is 60 days or less; and 100% of the loss for periods of restoration that exceed 60 days. The period of restoration for Sleepless in Seattle was 120 days and the entire amount of the loss would be paid.

In the Personal Auto Policy (PAP), Bodily Injury Liability coverage pays for:

Injuries to third parties negligently caused by "an insured' A legal defense for the insured Supplemental payments such as bail bonds All of the above

The Personal Auto Policy provides liability coverage to those that have the status of?

Insured

All of the following are eligible classes of property in an Inland Marine or Homeowners #14475 policy EXCEPT which of the following?

Inventory of insured's retail pet store

Woody turned on his brand new car and shifted the car into drive instead of #14514 reverse and drove into his own garage door when backing from his driveway. How will Woody's Personal Auto policy respond to this loss?

Liability coverage is not provided to any insured for damage to property: rented to the insured; used by the insured; or in the care of the insured. Collision coverage is for the insured's vehicle and does not cover physical damage to any other property. Loss of Use is not a coverage in the PAP.

The PAP defines a "your covered auto" to include temporary substitutes if an #14495insured vehicle is unavailable due to?

Loss or Destruction

Carol Keene, your PAP insured, was injured in his best friend's car when he tripped #14501 over his shoelace while exiting the friend's car at an airport terminal. How will Carol's Medical Payments coverage provide for this loss?

Medical Payments coverage is Primary in the insured's vehicle and Excess in other vehicles.Medical Payments coverage pays for first party losses and is irrespective of any legal liability.

Jonas was walking into Tasty Wings & Things, his favorite "wing-house" and tripped as he was #15687 not paying attention while texting and walking. Jonas tripped over his own shoelace in the Tasty Wings & Things parking lot and his fall led to $1,250 of emergency room expenses. Jonas has just filed the claim nine months after the fall. Will Tasty Wings & Things' Medical Payments coverage pay for Jonas' medical bill?

Medical Payments coverage pays non-legal liability medical claims normally up to $5,000 if made within one year of the accident date.

Nancy Drew has purchased a homeowners insurance policy with $200,000 of #14522 dwelling coverage on Ellery Queen's house. Nancy does not have any ownership in the house and is speculating on the house catching fire as Ellery stores old tires, flammable materials, and his winter fire wood by his propane tank. Ellery's house burns to the ground; how much will Nancy collect?

Nancy will not collect a dime as she did not have any insurable interest in Ellery Queen's home.Insurable interest must exist before an insurance company will pay for a loss.

Which Health Insurance coverage continuation provision states the policy is #2124 not cancellable during the term but can be non-renewed at expiration?

Optionally Renewable

Your PAP insured has struck a deer. Which Personal Auto Policy coverage will pay for #14506 the damage to the insured vehicle?

Other Than Collision

Patti's Pedals is a flower and bicycle shop operating in Florida, Georgia, and Alabama. #15698 Part One of Patti's Pedals' Workers Compensation policy list Florida, Georgia, and Alabama. Patti has opened a shop in South Carolina but did not list South Carolina in Part One of her policy. If a Patti's Pedals' employee is injured in her South Carolina shop will the policy provide coverage?

Part Three, Other States may be utilized to provide automatic coverage in states not listed for Part One coverage.For coverage to apply, the state must be listed for Part Three coverage. Then, if the insured begins operations in any such states,and is not otherwise covered, the policy covers as though such states were identified in Part One.The insured is obligated to notify the insurer if work is begun in any state listed in Part Three.

Jason was injured in a work related accident and can no longer contribute to his family and #15699 household for any of his prior activities of cutting the grass, general house maintenance, and household chores. Additionally, he is not able to fully participate in family activities or relations with his wife. Jason's spouse has sued Jason's employer for loss of consortium. How will the Worker's Compensation policy apply?

Part Two of the Workers' Compensation policy "Employers Liability" covers the insuredfor claims by relatives of injured employees for consequential damages.

Hospitalization Expense Insurance pays for all BUT which of the following?

Prescription Drugs

Health Maintenance Organizations focus on?

Preventative activities

Which Health insurance provision states how a lapsed policy may be reactivated?

Reinstatement

Geri Curl's laptop was stolen at the Beauty Expo and a brand new laptop just like #14527 Geri's cost $1,499.Geri's insurance company pays her $999 ($1,499 less her $500 Deductible); this is an example of?

Replacement Cost Valuation is where depreciation is not deducted and the insured receives a claims payment to replace the item at its current cost.

Which of the following are considered employees for which workers compensation #15695 must be provided? (select as many as apply)

Sally who works in a local bank Richard, the shop foreman for Shaker Cabinets

Your insured has a vehicle which has been determined to be a total loss with an #14529 Actual Cash Value of $20,000. The insured has a $1,000 Collision deductible and the salvage value of her vehicle is $2,000. The insured has elected to retain the salvage. What amount will her insurance company pay her for her loss?

Salvage Value is always subtracted from value of the property less any applicable depreciation:$20,000 actual cash value - $1,000 deductible - $2,000 salvage value = $17,000.

Aaron has an automobile insurance policy with "single limits" Auto liability limits; #14510which could be represented as which of the following?

Single Limit: one limit will apply to all claims for bodily injury and property damage arising from a single accident.

Mary Richards, your insured, has asked for an Umbrella/Excess Liability policy which #14515 provides coverage in excess of her underlying limits AND does not want a policy which will hold her to the same limitations as her underlying policies. Which type of Umbrella/Excess Liability policy is Mary asking for?

Stand Alone Excess Liability policies provide coverage in excess of underlying limits butdoes not apply the same conditions, provisions, or exclusions as the underlying policy.

The Basic Form Causes of Loss include which of the following specified perils? #15673 (choose all that apply)

The Basic Form causes of loss include the following specified perils: fire and removal,l ightning, explosion, windstorm or hail, smoke, aircraft and vehicles, riot or civil commotion, vandalism, sprinkler leakage, and volcanic action.

All of the following are exposures covered by Commercial General Liability policy? #15680 (select all that apply)

The Commercial General Liability policy form covers an insured's premises and operations exposures; and products and completed operations liability exposures. Liability hazards that have their own specialized coverage forms are almost always universally excluded (e.g. automobile, worker's compensation).

The DP-2 policy form covers which of the following perils? (choose all that apply)

The DP-2 policy form covers all of the DP-1 perils plus the extended coverage perils and vandalism and malicious mischief and several additional perils including damage by burglars, falling objects, and the weight of ice, snow or sleet.

The DP-3 policy form covers the Dwelling on a?

The DP-3 policy form covers the Dwelling on a special or "open" form cause of loss

The Dwelling Fire policy's Coverage D covers.

The Dwelling Fire policy's Coverage D covers the insured's loss of Fair Rent in the event of the insured property being damaged by a covered peril and the dwelling becomes uninhabitable. The insured's tenants would be reluctant to continue to pay the insured rent on a property they cannot occupy

Susan Studip has been convicted of driving under the influence of alcohol. #14491 Has Susan Studip pierced Florida's Financial Responsibility law?

The Financial Responsibility law is triggered by an accident that involves: bodily injury; property damage when a vehicle is rendered inoperative; or certain serious traffic violations such as driving under the influence and committing a felony with a vehicle.

Tood Hoover, a sole proprietor brick layer, has a Business Auto policy and has #15693 three vehicles on the policy: (1) truck used in business, (2) sedan used by Mrs. Hoover, and (3) a coupe used by their 16 year old daughter. Which endorsement should be added to the Hoover BAP to broaden the coverages on the private passenger vehicles to broaden coverage for those vehicles similar to that of PAP coverages?

The Individual Named Insured endorsement is used when the BAP named insured is an individual andthe policy includes one or more covered autos that are eligible for the PAP, this endorsement broadens coverage on such autos to be similar to that in a PAP.

The Liability coverage afforded under the PAP pays on behalf of the insured money #14484 damages for which the insured becomes legally liability to others for?

The Liability coverage afforded under the PAP pays on behalf of the insured money damages for which the insured is legally liable to others for bodily injuries or property damages.

You are counseling a potential new client and are discussing Uninsured Motorist #14505 coverage. You advise that Florida law requires stacked UMBI coverage on all policies with limits equal to the policy's liability limits unless?

The correct answer is "all of the above". Florida law requires stacked UMBI with limits equal to the policy's liability limits unless: the insured rejects UMBI coverage altogether; the insure delects non-stacked coverage; or the insured elects UMBI coverage lower than the policies UMBI coverage.

Janice Hendrix has had a one vehicle accident with the roadbed. She does not carry #14503 Collision coverage and her policy has Other Than Collision coverage with a $100 deductible. Her vehicle has $1,000 in damages; how much will the insured collect after applying the correct coverage and deductible?

The correct answer is $0. Janice's does not carry Collision coverage and the impactby a vehicle with the road bed is considered a Collision loss.

King George's Pipe and Tobacco Shop has a Business Owners Policy (BOP) #15676 with $500,000 of coverage on their building. The actual replacement cost of the building is $600,000. If the shop suffers a fire and "goes up in smoke" totally destroying the building how much will the insured receive as a claims payment on the building?

The insured will receive the full coverage limit of $500,000 as the Building Coverage amount was at least 80% of the Buildings replacement cost.

The surplus lines markets expose the insuring public to all but which of the following?

The surplus lines markets are adrift of "unfair competition" wherein admitted markets aredis advantaged. Surplus Lines companies don't have same capitalization requirements.In the event of inadequate surplus and capitalization surplus lines carriers may fall into bankruptcy resulting in loss of premiums and coverage for the insured.

Flood or Flooding is defined as the partial or complete inundation of ___ or more #14477 acres of normally dry land or of ___ or more properties.

Two

David was permanently injured in an auto accident by the negligence of Goliath. #14511 David's injuries are valued at $250,000. Goliath has a liability insurance policy with limits of $50,000/$100,000/$50,000. David's UMBI limits are $100,000/$300,000. David has PIP and has recovered his full $10,000 limit, what will David's UMBI recovery be?

Uninsured Motorists (UM) coverage pays compensatory damages for bodily injuries, under one's own policy, for amounts which would otherwise have been recovered from the liability insurance of another (the responsible party in the accident) - who is either uninsured/under-insured relative to the insured's injuries. (not 222,222)

What must be added to the DP-1 policy form before the Vandalism peril can be #14482 added to the policy.

Vandalism can also be added to the policy when Extended Coverages (EC) have been added to a DP-1 policy.

Your insured, Jonny Jonsey, has been involved in an at fault auto accident in #14496 which the another party was injured. Jonny carries 10/20/10 limits. Has Jonny satisfied Florida's Financial Responsibility law?

Yes, as Jonny carries liability limits greater than or equal to 10/20/10.

In a phone conversation you have told John Clayton he has insurance coverage #14500 with a company your agency represents. Can you, as John's agent, bind coverage for John orally?

Yes, coverage can be bound orally or in writing.

Connie, your insured, has called to make a mid-term change to her Homeowners #14483Insurance policy a few days before hurricane season begins. Specifically she wants to lower her Hurricane Deductible from 5% to 2%.

You advise Connie that Hurricane deductible mid-term changes are not permissible;Hurricane deductible changes can only be changed at her policy renewal.

While explaining to your insured her Jewelry Personal Articles Floater you advise #14479 her that inherent vice is specifically excluded. How will you explain the concept of inherent vice to your insured?

You advise her that inherent vice is an internal quality of the property which leads to its own damage

Bill Famer, your current Homeowners insured, is purchasing a two hundred and #14474 twenty acre diary farm with over 1,000 head of cattle and a full dairy operation. Bill wants to know if he can transfer his current Homeowners policy to the new farm.

You tell Bill that he will not be able to transfer the Homeowners policy and let him know that Farm operations are only covered if the farm has "light incidental farming"

Brian Neptune, your Homeowners insured, has purchased a small watercraft (16 feet long) #14476with a small outboard motor (25 horsepower) and he is concerned about a lawsuit should he damage another boater. He specifically wants to know if his Homeowners policy will provide any Liability coverage.

You tell Mr. Neptune that his Homeowners policy will extend Liability coverage for his watercraft as it meets the size and horsepower limits thresholds.

Which of the following is a premises and operation exposure?

a customer comes into the insured's store and slips on the insured's newly waxed floor

Which of the following are true regarding the "cancellation" of insurance policies? #14535 (choose all that apply)?

an insurance company must provide some specific number of days to cancel a policy cancellation conditions in general allow the insured to cancel at any time

_______________ damages award money for the tangible and intangible economic #14537 loss suffered by a third party claimant.

compensatory

Coverage under a Builders Risk policy terminates when any of the follow events #15667occurs EXCEPT?

construction of the building commences

The Earthquake peril is generally _____________ in Homeowners and Dwelling Fire policies.

excluded

The CGL ______________ coverage for personal property in the insured's care, #15691 custody or control.

excludes

__________ damages award money for the intangible losses such as pain and #14538 suffering, and mental anguish

general

A "____________" is a vehicle not owned by or furnished or available for the regular use of #14513 the named insured or a family member which the insured hires, rents, leases or borrows.

hired auto

Insurance is predicated on the statistical concept of the ______________ which suggest #14485 the more exposure we have to study the more likely that any projections we make are likely to be accurate.

law of large numbers

All of the following are benefits under the Florida Workers Compensation law except?

legal expenses

Coverage A of the CGL coverage form states: "We will pay those sums that the #15683 insured becomes ___________ obligated to pay as damages because of "bodily injury" (BI) or "property damage'' (PD) to which this insurance applies.'

legally

All-The-Stuff-In-The-World-You-Want-But-Don't-Need-mart waxes their floors at #14545 night when the store is closed. Due to an inventory count that took all night the store started their waxing at 9 AM just as the store was opening. The floor waxer did not put out warning signs; the first ten customers that piled into the store all slipped and fell. The court ruled the customer's injuries were the store's fault due to the store's _________.

negligence

Junior is a ten year employee and he captain of the company bowling team. One Saturday #15697 night at the All-City bowling championship Junior threw-out his back when he went to do his famous "hook and slide" on his last bowl to win the All-City championship. Is Junior's injury an injury arising out of his employment?

no, because the injury did not occur in the course and scope of his employment

Property Damage is defined in the Personal Auto Policy (PA) as:

physical injury to, destruction of or loss of use of tangible property"

The Building and Personal Property Coverage Form cover all but which of the following?

pilings, piers, wharves or docs

Swings-N-More manufactures, delivers, and assembles luxury swing sets #15682 and playground equipment. The sets are manufactured to fit together quickly and easily in a patented tongue and groove fashion and are bolted together to ensure their structural integrity. Timmy, a new Swings-N-More employee, did not realize that the sets required bolting and he snapped together a set for the Wilson family and left their residence. Unfortunately, when the Wilson children and the friends used the set for the first time it fell apart and the children suffered minor injuries. Which type of exposure is this?

products and completed operations

___________ damages are awarded by the court to a third party claimant #14540 to punish the defendant.

punitive

__________ damages are the tangible and calculable losses such as: medical bills, #14539 repair invoices, and lost wages.

special

Ian's Impossible Implosions has been contracted by the city to tear down an #14544 abandoned apartment building. Unfortunately Ian and his crew were not on their "A-game" that day and the implosion turned into an explosion tearing down the apartment building and six other buildings beside it. Ian proved in court that he had been "careful" in the demolition but was still found to be responsible. This type of liability is known as _____________ liability.

strict

Math, Math, & More Math is a tutoring center and carries a Claims-Made Commercial #15685 General Liability policy with a Retroactive date of January 01, 2015. A claim was filed January 01, 2018 during the current policy term for a loss that occurred January 01, 2016. Will the claim be covered?

the claim will be covered because it was reported during an active policy term and after the retroactive date

Ricky Racoon has driven his sports car into a lake. The vehicle is considered a total #14526loss valued at $19,000. Ricky rented a substitute vehicle for 20 days at $30 per day for a total of $600 prior to the claim settlement.

the damage to the vehicle is considered a direct loss the loss of use of the vehicle is considered an indirect loss

Totally Tires has a Garage Policy and has a standard practice of providing loaner vehicles to #15692 their customers. Betty Borrower, a Totally Tires customer, needed a loaner one day and she sadly backed the loaner into a parked and unoccupied car. Will the Totally Tires Garage Policy's Liability policy extend coverage to Betty Borrower?

the garage policy will extend coverage up to 10/20/10 limits if Betty does not have her own coverage

Betty's insurance company has sent her a "reservation of rights" letter advising #14499 her that the company is investigation any omissions, misrepresentations, or concealment of facts in her initial application. Betty calls your office in a panic for advice and you tell Betty that any omission, misrepresentation, or concealment of a fact shall not prevent a claims recovery unless...

the insurance company in good faith would not have issued the policy had the the correct information been presented at the time of the application

An endorsement to an insurance policy changes the policy in some way. #14546 All of the follow are examples of an endorsement EXCEPT?

the insured pays her policy premium on its due date

Perils are the specific risks or causes of loss covered by insurance. #14525 Which perils would an insured in a high crime area most logically be concerned about?

theft & vandalism

Which of the following is not a key objective of the Office of Financial Regulation?

to ensure high profits for Florida's financial service providers

What is the overarching purpose of Workers's Compensation coverage?

to provide an exclusive remedy to employees for injuries sustained in the"course and scope" of employment including lost wages and medical expenses

The doctrine of proximate cause states that when there is an ____________________ #14530 between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the same occurrence.

unbroken chain of events

Which of the following would not be covered by the CGL's Personal and Advertising #15686 Injury coverage?

wrong price descriptions