220 EXAM - FLORIDA STATUTES
All of the following are eligible Physical damage deductibles for private passenger autos with the Florida Auto Joint Underwriting Association, EXCEPT: (A) $100 (B) $250 (C) $500 (D) $1,000
(A) $100
Within the first 90 days of a P&C policy, the insurer may be able to cancel with only days notice (assume they are not canceling for non-payment of premium) (A) 60 (B) 40 (C) 30 (D) 20
(A) 60 Statutes allow for a shorter cancellation period during the first 90 days of a policy.
Deceiving people for one's own material gain can be called: (A) Fraud (B) Controlled Business (C) Coercion (D) Common Sense
(A) Fraud
If there is not a more specific statute for a particular type of policy, the number of days notice required for cancellation or non-renewal is probably: (A) 30 (B) 45 (C) 55 (D) 120
(B) 45
An insurance contract is: (A) A necessary evil required by government in order to drive a car. (B) An agreement to transfer risk from one party to another for a fee. (C) An agreement between an insurer and the agent representing that insurer. (D) Usually transferable from one insured to another.
(B) An agreement to transfer risk from one party to another for a fee.
Tammy says her inventory was stolen by local bandits. The insurance company asks her to file a proof of loss form with supporting evidence such as receipts for the inventory, a police report, photos, video, alarm logs, or other evidence of a break-in. Tammy says she doesn't have any of those things. What is likely to happen next? (A) Tammy will sue the insurance company for unfair claims practices, because they are making it too hard to file a claim, and she will likely win. (B) The insurance company will deny the claim because there is no evidence that a loss actually occurred. (C) The insurance company will pay whatever Tammy says the amount of the loss was. (D) The insurance company will investigate the local bandits and attempt to capture them.
(B) The insurance company will deny the claim because there is no evidence that a loss actually occurred.
If someone would suffer economic loss from damage to their property, they have: (A) Subrogation rights. (B) Proximate cause. (C) An insurable interest. (D) A contingent claim.
(C) An insurable interest. The possible consequence of loss or damage to property creates an insurable interest. A person has an insurable interest to the extent of their ownership in the property.
If an insurer in Florida runs out of money to pay claims, the Department of Financial Services will likely do what? (A) Reduce the CEO's pay (B) Bail the company out (C) Put it in receivership (D) Pay claims under FIGA and require the company to repay the funds with interest
(C) Put it in receivership
The office of Florida government that is specifically charged with approving policy forms for admitted insurance carriers is: (A) The Department of Financial Services. (B) The Office of Financial Regulation. (C) The Office of Insurance Regulation. (D) The Bureau of Market Conduct.
(C) The Office of Insurance Regulation.
When making a claim, the policyholder will likely need to provide: (A) A proof of loss form. (B) Evidence that a loss occurred, and the values of property involved (C) The time, date, and details of the loss. (D) All of the answer choices are correct.
(D) All of the answer choices are correct.
Whenever an agent accepts premiums, the agent is a(n): (A) Transactionator (B) Insurer (C) Binder (D) Fiduciary
(D) Fiduciary
Statutes of limitations: (A) Ensure justice for people who have limitations. (B) Mostly place limitations on other statutes. (C) Limit the policy period of insurance policies. (D) Limit the time within which a plaintiff may bring legal action.
(D) Limit the time within which a plaintiff may bring legal action. Statutes of limitations, of which there are several, limit how long a plaintiff (someone with a legal complaint) can bring a law suit against another party.
An insurance company that is owned by policyholders is called a: (A) Stock company. (B) Domestic company. (C) Fraternal. (D) Mutual company.
(D) Mutual company.
All of the following are sliding EXCEPT: (A) Telling the applicant that a coverage or product is required by law when such coverage or product is not required. (B) Telling the applicant that a coverage or product is included in the policy applied for with no additional charge, when such charge is required. (C) Charging an applicant for a coverage or product in addition to the cost of the insurance coverage applied for without the informed consent of the applicant. (D) Offering part of the commission to the applicant as an inducement for them to buy insurance from you.
(D) Offering part of the commission to the applicant as an inducement for them to buy insurance from you.
If a licensee has their appointment terminated, how long does he have to be reappointed before his license is terminated? A. 48 months B. 18 months C. 12 months D. 24 months
A. 48 months
Which of the following can a licensed agent share commissions with? A. A non-resident agent B. A customer representative C. A car dealer D. A real estate agent
A. A non-resident agent
An insurance company formed under the laws of another state is called: A. Foreign B. Alien C. Domestic D. Captive
A. Foreign
Willful deception of an insurance policy done by dissemination of information is called: A. Misrepresentation B. Coercion C. Twisting D. Churning
A. Misrepresentation
How many hours of continuing education is a newly licensed agent required to have in their first CE compliance period? A. None in the first 2 years B. 24 C. 14 D. 10
B. 24
How long is a temporary license good for? A. 12 months B. 6 months C. 4 months D. 2 months
B. 6 months
An insurance company formed in Zurich, Switzerland is called: A. Foreign B. Alien C. Domestic D. Captive
B. Alien
An insurance company that is licensed to do business in Florida is called: A. A licensed insurance company B. An authorized insurance company C. An unauthorized insurance company D. A captive insurance company
B. An authorized insurance company
When authority is given to a licensee to transact or adjust insurance, it is called: A. Certificate of authority B. Appointment C. Attorney-in-fact D. Binder
B. Appointment
Jim and Glenda go to the local branch of their bank for a home loan. The loan officer tells them that in order to qualify for the loan they must purchase insurance from the bank. This is an example of A. Misrepresentation B. Coercion C. Twisting D. Rebating
B. Coercion
When the majority of insurance written is for family members it is called: A. Family insurance plan B. Controlled business C. Red lining D. Joint underwriting
B. Controlled business
If an agent has been licensed for more than 6 years, how many hours of continuing education are required every 2 years? A. None B. 28 C. 20 D. 10
C. 20
An insurance company formed under the laws of Florida is called: A. Foreign B. Alien C. Domestic D. Captive
C. Domestic
Which of the following is not a type of insurance that can be transacted with a "general lines" insurance license? A. Health insurance written by a carrier which is also represented for P&C B. Marine insurance C. Life insurance written by carrier which is also represented for P&C D. Surety
C. Life insurance written by carrier which is also represented for P&C
Rebating is allowed under certain conditions. All of the following are conditions EXCEPT: A. Rebate is available to all insureds in the same actuarial class B. Rebate schedule is filed with the insurer C. Rebate schedule does not exceed 5% of the premium D. Rebate schedule must be kept for 5 years
C. Rebate schedule does not exceed 5% of the premium
Charging an applicant for a specific ancillary coverage in addition to the cost of the auto insurance coverage applied for without his consent is called: A. Misrepresentation B. Churning C. Sliding D. Coercion
C. Sliding
Knowingly using an incomplete comparison of insurance policies in order to get the insured to buy a policy from you is called: A. Misrepresentation B. Coercion C. Twisting D. Rebating
C. Twisting
If a licensee has a change in name or address, how long does he have to notify the Department of Insurance? A. 12 months B. 6 months C. 90 days D. 30 days
D. 30 days
All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: A. Unlawfully rebating B. Fraudulent submission of a Workers' Comp app C. Lack of reasonably adequate knowledge D. Soliciting insurance in other areas of the state
D. Soliciting insurance in other areas of the state
All of the following are considered "transacting insurance "EXCEPT: A. Solicitation B. Transacting changes and endorsements C. Giving quotes and proposals D. Underwriting new business
D. Underwriting new business
A clause in a policy named 'Duties after a loss has occurred, which lays out the responsibilities of an insured for reporting claims, would most likely be found in which policy section: (A) Conditions (B) Declarations (C) Definitions (D) Endorsements
(A) Conditions
A syndicate composed of all licensed companies in Florida which write auto insurance is correctly called which: (A) FAJUA (B) Citizens (C) FWCJUA (D) MEWA
(A) FAJUA
Under unauthorized insurers fraudulent activity is more likely under which: (A) Hard Markets (B) Soft Markets (C) Medium Markets (D) Average Markets
(A) Hard Markets
An insurance agent who does NOT have an appointment from a Homeowners insurance carrier can: (A) Not legally write Homeowners insurance. (B) Write Homeowners insurance as long as someone in the office is appointed for Homeowners. (C) Only receive Homeowners commissions indirectly, such as by referring to another agent and receiving a shared commission. (D) Write homeowners insurance if it goes along with the auto insurance for the same policyholder, and the agent also writes the auto insurance.
(A) Not legally write Homeowners insurance.
Under ERISA a major goal was to allow which: (A) A single employer to fully self insure a health plan. (B) Require at least 2 employers to self insure a health plan. (C) Require at least 3 employers to self insure a health plan. (D) Require at least 4 employers to self insure a health plan.
(A) A single employer to fully self insure a health plan.
All of the following coverages are available in policies issued through Citizens Property Insurance Corporation, EXCEPT: (A) Animal Liability Coverage (B) Loss of Use Coverage (C) Other Structures Coverage (D) Damage to Property of Others
(A) Animal Liability Coverage
The insurance provision that provides lower insurance rates for insureds who insure at levels close to the value of property, thus getting insurance coverage closer to property values is called: (A) Coinsurance (B) Subrogation (C) Other Insurance (D) Proration
(A) Coinsurance
The part of an insurance policy that summarizes the guarantees provided by the insurance company is the: (A) Insuring Agreement (B) Conditions (C) Endorsements (D) Definitions
(A) Insuring Agreement
The Bureau of Unclaimed Property: (A) Is a bureau of the DFS charged with holding onto unclaimed checks, financial instruments and other property. (B) Is a bureau of the DBPR charged with holding onto unclaimed checks, financial instruments and other property. (C) Is a bureau of the OIR charged with holding onto unclaimed checks, financial instruments and other property. (D) Is an office of the Governor, and serves as a lost and found for property other than financial instruments.
(A) Is a bureau of the DFS charged with holding onto unclaimed checks, financial instruments and other property.
A Certificate of Authority: (A) Is required for an insurer to transact insurance in Florida. (B) Lets policyholders know an insurer is financially sound. (C) Is granted to an agent, giving them authority to represent the insurer. (D) Is issued to a new agent after they pass their state exam.
(A) Is required for an insurer to transact insurance in Florida.
The Office of Financial Regulation is responsible for all of the following except: (A) Regulation of insurance rates and forms. (B) Regulation of banks. (C) Regulation of credit unions. (D) Regulation of the securities industry.
(A) Regulation of insurance rates and forms.
Ethical conduct should require which: (A) Agent puts his own interest first. (B) Agent puts his Agent's Association first. (C) Agent puts the public's interest first. (D) Agent puts his agency's interest first.
(C) Agent puts the public's interest first.
For roof covering to receive wind mitigation premium discount on property policies the coverings must be: (A) Installed according to Florida Building Code requirements. (B) Of approved materials. (C) Tested. (D) Installed according to Florida Building Code requirements, be of approved materials, and be tested.
(D) Installed according to Florida Building Code requirements, be of approved materials, and be tested.
A JUA, or Joint Underwriting Association: (A) Is a private corporation that syndicates two or more insurance companies to minimize costs. (B) Is a service bureau that provides underwriting services to subscribing insurance companies. (C) Is a non-profit professional organization whose members are insurance underwriters. (D) Is composed of all insurers writing a particular line of business in the state, and serves as a residual market.
(D) Is composed of all insurers writing a particular line of business in the state, and serves as a residual market.
All of the following are true of the Florida Surplus Lines Services Office (FSLSO) EXCEPT: (A) It collects taxes and service fees related to surplus lines insurance. (B) It provides training and education to surplus lines agents. (C) It oversees the surplus lines industry in the state. (D) It was created by the Florida cabinet.
(D) It was created by the Florida cabinet. FSLSO, and its equivalent organization in most other states, was created by the state legislature.
Insurance where payment is made on behalf of the insured to another party is called: (A) Adverse Selection (B) Binder (C) Property Coverage (D) Liability Coverage
(D) Liability Coverage
Which of the following is NOT a member of the Financial Service Commission of Florida? (A) The Attorney General. (B) The Commissioner of Agriculture. (C) The Chief Financial Officer. (D) The Insurance Commissioner.
(D) The Insurance Commissioner.
Which of the following is a valid reason for having coinsurance clauses on insurance policies? (A) To save the insurance company money when claims are due. (B) To specify how two policies will interact if both provide coverage. (C) To make insurance easier for consumers to understand. (D) To keep premiums down for people who agree to insure to a certain value.
(D) To keep premiums down for people who agree to insure to a certain value.
Knowingly making a false or fraudulent statement on an application is known as: (A) Misrepresentation (B) Twisting (C) Sliding (D) Rebating
(A) Misrepresentation
An agent or agency charging a service fee for financing premium may not charge more than: (A) $1 per payment or $12 per year. (B) $3 per payment or $36 per year. (C) $5 per payment or $60 per year. (D) 12.50 per payment or $150 per year.
(B) $3 per payment or $36 per year.
All of the following are eligible coverages for commercial automobiles in the Florida Auto Joint Underwriting Association, EXCEPT: (A) Liability Coverage (B) Medical Payments Coverage (C) Uninsured Motorist Coverage (D) Personal Injury Protection (PIP)
(B) Medical Payments Coverage
To indemnify can best be described as which of the following: (A) To reduce net worth. (B) To restore lost value. (C) To replace insurance coverage. (D) To add coverage to a policy.
(B) To restore lost value.
A General Lines agent who has been licensed less than six years from the beginning of their compliance period must satisfy continuing education every two years. How many hours are they required to complete? (A) 14 (B) 20 (C) 24 (D) 30
(C) 24
An insurance company formed in London which conducts business in Florida, is known as: (A) Domestic (B) Foreign (C) Alien (D) International
(C) Alien
The part of an insurance contract that removes coverage for certain things is called the: (A) Definitions (B) Conditions (C) Endorsements (D) Exclusions
(D) Exclusions
Knowingly making any misleading representations or incomplete or fraudulent comparisons of any insurance policy with the intent of inducing a person to cancel or lapse an insurance policy is known as: (A) Misrepresentation (B) Coercion (C) Sliding (D) Twisting
(D) Twisting
Statutory insurance policies are best defined as: (A) Policies such as PIP or Workers Compensation for which the coverage is defined by state statutes. (B) Rules about insurance that have been passed by the legislature. (C) Standard policy forms such as those published by the Insurance Services Office (ISO). (D) Insurance policies that insure the state statutes, in case of legislative errors and omissions.
(A) Policies such as PIP or Workers Compensation for which the coverage is defined by state statutes. Statutory policies (and coverages) have insuring agreements that are defined in statutes (laws) passed by the legislature.
The CFO ofHorida is (A) Responsible for the Department of Financial Services. (B) Under the Office of Insurance Regulation. (C) Responsible for approving agent licenses personally. (D) An appointed official overseeing several departments.
(A) Responsible for the Department of Financial Services.
An agent who wants to keep their license but does not currently represent any insurer can: (A) Self appoint. (B) Transact at least one policy per year. (C) Pause their license for up to 136 months. (D) Sell their license to another person.
(A) Self appoint.
An insured has $60,000 property coverage on a building purchased 2 years ago for $80,000. The coverage is written with an 80% coinsurance clause. If the insured suffers a $40,000 loss, how much will she recover if the value of her building at the time of the loss is $100,000: (A) $24,000 (B) $30,000 (C) $32,000 (D) $40,000
(B) $30,000 (Did/Should) *Loss = Recovery ... Did carry/ Should carry = $60,0001$80,000 (the 80,000 should carry comes from 80% of $100,000 building value) ... 6/8 = 3/4 so 3/4 x $40,000 = $30,000.
CS Under the CFO unfair methods of competition and unfair or deceptive acts may result in fines for each non-willful violation of not greater than: (A) $1,000 for each non-willful violation and no more than $5,000 for all non-willful violations. (B) $5,000 for each non-willful and not greater than $20,000 for all non- willful violations. (C) $20,000 for each non-willful violation and $100,000 for all non-willful violations. (D) $100,000 for all non-willful violations and $500,000 for all non-wilful violations for the same actions.
(B) $5,000 for each non-willful and not greater than $20,000 for all non- willful violations.
In Florida, what is the minimum age for entering into (purchasing) a contract for insurance? (A) 13 (B) 15 (C) 16 (D) 18
(B) 15 The easy way to remember this is that people can begin driving at age 15.
Under the CFO the Department shall, in its order suspending a license, specify a period of suspension or revocation, but the period shall not exceed: (A) 1 year (B) 2 years (C) 3 years (D) 4 years
(B) 2 years
If a licensee changes their name, residence address or business address, they must notify the Department of Insurance within: (A) 10 days (B) 30 days (C) 45 days (D) 90 days
(B) 30 days
If licensee fails to be appointed they are subject to losing their license. What period of time will trigger the termination of a license for failure to maintain an appointment? (A) 12 months (B) 48 months (C) 6 months (D) 36 months
(B) 48 months
Every agent transacting any insurance policy must maintain records of that policy in their office for at least: (A) 3 years (B) 5 years (C) 10 years (D) 30 days
(B) 5 years
Under a MEWA, which is true: (A) They cannot be for employees of 2 or more employers. (B) A MEWA cannot be a single employer plan. (C) A MEWA cannot be a 3 employer plan. (D) A MEWA cannot be a 4 employer plan.
(B) A MEWA cannot be a single employer plan.
A convenience used to provide temporary insurance is (A) Insurance. (B) A binder. (C) Property coverage. (D) Liability coverage.
(B) A binder.
'The continuing education statutes require a minimum of: (A) At least 5 hours on the subject of statutory updates and ethics related to the license. (B) At least 4 hours on the subject of ethics. (C) At least 1 hour on the subject of Financial Responsibility Law. (D) At least 4 hours on the subject of ethics and at least 1 hour on the subject of Financial Responsibility Law.
(B) At least 4 hours on the subject of ethics.
The failure of the insured to reveal a known fact to the insurer, which would have had an adverse effect on the policy being issued is: (A) Waiver (B) Concealment (C) Warranty (D) Misrepresentation
(B) Concealment
To obtain a license for the purpose of writing insurance only on family members or business relationship is known as: (A) Unfair Discrimination (B) Controlled Business (C) Collateral Business (D) Rebating
(B) Controlled Business
The part of an insurance policy that gives the name of the insured, the limits, and the policy forms attached is the: (A) Conditions (B) Declarations (C) Definitions (D) Endorsements
(B) Declarations
An insurance company formed in any state, other than Florida, is known as: (A) Domestic (B) Foreign (C) Alien (D) Mutual
(B) Foreign
None of the following roof types is automatically eligible for a discount EXCEPT: (A) Gable roof. (B) Hip roof. (C) Tin roof. (D) Tile roof.
(B) Hip roof.
When the insurer adopts a provision providing broader coverage without additional premium, and the broader coverage automatically applies to the existing policy, it is called: (A) Apportionment (B) Liberalization (C) Appraisal (D) Abandonment
(B) Liberalization
'The steps to getting an insurance license are: (A) Meet education requirement; pass state exam (when required); fingerprinting and background check; apply for license with OIR. (B) Meet education requirement; pass state exam (when required); fingerprinting and background check; apply for license with DFS. (C) Meet education requirement; pass state exam (when required); license issued automatically. (D) Pass state exam; apply for license with DFS.
(B) Meet education requirement; pass state exam (when required); fingerprinting and background check; apply for license with DFS.
Citizen's considers all of the following uninsurable EXCEPT: (A) Vacant property. (B) Properties over 50 hears old, where wiring, heating and roof have been updated. (C) Condemned property. (D) Property built over water.
(B) Properties over 50 hears old, where wiring, heating and roof have been updated.
Which of the following is NOT a responsibility of the Division of Agents and Agency Services? (A) Approving the issuance of licenses to insurance agents. (B) Providing regulatory oversight to banks and financial institutions. (C) Approving the issuance of licenses to claims adjusters. (D) Investigating charges of unethical conduct.
(B) Providing regulatory oversight to banks and financial institutions.
The body of statutory law known as ERISA is primarily enforced by which of the following: (A) United States Department of the Interior (B) United States Department of Labor (C) United States Department of Justice (D) United States Department of State
(B) United States Department of Labor
Each of the following is an example of opening protection EXCEPT: (A) Impact resistant sky lights. (B) Windowless doors. (C) Impact resistant windows. (D) Hurricane shutters.
(B) Windowless doors.
Jane has a $100,000 property policy with an 80% coinsurance clause. Her building worth $200,000 is totally destroyed by fire. How much will Jane recover under her property policy? (A) $50,000 (B) $80,000 (C) $100,000 (D) $160,000
(C) $100,000 Any time there is a total loss, remember the Valued Policy Law applies if buildings are destroyed.
Failure to notify Insurance Department within 30 days of a change of name, residence address, principal business address or mailing address shall result in a fine not to exceed: (A) $50 for the first offense. (B) $100 for the first offense. (C) $250 for the first offense. (D) $500 for the first offense.
(C) $250 for the first offense.
Liability coverage through the Florida Auto JU available up to which limits: (A) 10/20/10 (B) 50/100/25 (C) 100/300/50 (D) 250/500/100
(C) 100/300/50
A General Lines Agent who has been licensed more than six years from the beginning of their compliance period must satisfy continuing education every two years. How many hours are they required to complete? (A) 28 (B) 21 (C) 20 (D) 15
(C) 20
A social organization that provides insurance or other benefits only to its members is called: (A) Fraudulent. (B) Discriminatory. (C) A fraternal organization. (D) A risk retention group.
(C) A fraternal organization.
FIGA, the Florida Insurance Guaranty Association is best described as: (A) A group of actuaries who maintain the best algorithms. (B) An agent association with members who are independent agents, pooling their resources and political power to act in the best interest of the insurance industry and the public. (C) A statutory organization that maintains a fund guaranteeing claim payments in the event that an admitted insurance carrier declares bankruptcy. (D) A state-owned property insurance carrier that is intended as the insurer of last resort.
(C) A statutory organization that maintains a fund guaranteeing claim payments in the event that an admitted insurance carrier declares bankruptcy.
'The Department of Agents and Agency Services regulates: (A) The CFO of Florida. (B) Real estate licenses. (C) Agents and adjusters. (D) Insurance companies, policy forms and rates.
(C) Agents and adjusters. The Department of Agents and Agency Services, under the CFO, regulates agents and adjusters. The Department of Insurance, under the Commissioner, regulates insurer rates & forms.
Which of the following is a form that can be attached to a property insurance policy to define which perils are covered by the policy? (A) Conditions (B) Coverage Form (C) Cause of Loss Form (D) Declarations
(C) Cause of Loss Form
The part of an insurance contract that contains rules and obligations of the insured and the carrier is the: (A) Declarations (B) Endorsements (C) Conditions (D) Insuring Agreement
(C) Conditions
Which of the following is regulated by the Office of Financial Regulation (OFR)? (A) Adjuster firms. (B) Insurance agencies. (C) Credit unions. (D) All answers are correct.
(C) Credit unions.
The Florida Comprehensive Hurricane Damage Mitigation Program is with: (A) Department of Agriculture (B) Department of Professional Regulation (C) Department of Financial Services (D) Department of Emergency Operations
(C) Department of Financial Services
The Office of Insurance Regulation does all of the following EXCEPT: (A) Review rules and rates to ensure compliance with Florida law. (B) Approve policy forms. (C) Make rating and underwriting rules. (D) Examine the qualifications of insurance companies.
(C) Make rating and underwriting rules. The OR does not make rating and underwriting rules; they audit them to ensure compliance with the law.
MEW stands for which: (A) Medical Education Workers Association (B) Marine Environment Workers Association (C) Multiple Employer Welfare Arrangement (D) Multiple Employer Workers Association
(C) Multiple Employer Welfare Arrangement
Any insurance where the insurer pays the insured or some other named interest directly is called: (A) Adverse Selection (B) Binder (C) Property Coverage (D) Liability Coverage
(C) Property Coverage
Frank's homeowners insurer went bankrupt, and Frank discovered this when his house burned down. Frank should: (A) Also declare bankruptcy. (B) Sue his insurance agent. (C) Put in a claim with the Florida Insurance Guaranty fund and pay the $100 deductible. (D) Find a new insurance carrier who will cover his claim after the fact.
(C) Put in a claim with the Florida Insurance Guaranty fund and pay the $100 deductible.
The Office of Insurance Regulation has responsibility for which: (A) Legislation regarding insurance. (B) Adjudication of matters regarding insurance. (C) Regulation, compliance and enforcement of laws related to insurance. (D) Managing licensed entities in insurance.
(C) Regulation, compliance and enforcement of laws related to insurance.
Which of the following can be accomplished using the Appraisal clause of a policy? (A) Determine whether the insured is legally entitled to recover damages. (B) Bind parties to the decision of the appraiser. (C) Resolve disputes about the value of covered property. (D) All of these.
(C) Resolve disputes about the value of covered property. Appraisal is non-binding and is used only to resolve disputes about value. Arbitration is usually binding, and can also resolve disputes about whether coverage exists for an occurrence at all.
Mac has a $450,000 property policy with an 80% coinsurance clause. His building worth $500,000 suffers a $100,000 loss. How much will Mac recover under his property policy? (A) -0- (B) $80,000 (C) $90,000 (D) $100,000
(D) $100,000 Mac, in compliance with coinsurance condition, receives full loss up to limit.
Agents in the state of Florida may rebate a portion of their commissions to the customer. The agent must meet all of the following, EXCEPT: (A) Available to all insured's in the same actuarial class. (B) The rebate schedule must be filed with the insurer. (C) Rebate schedule must be posted in the agency. (D) Agent must maintain a rebate schedule for two years.
(D) Agent must maintain a rebate schedule for two years.
Under the CFO, the Department of Financial Services has a duty to investigate which: (A) Rates. (B) Policy forms. (C) Commission scale. (D) Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance.
(D) Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance.
Penalties for aiding and abetting an unauthorized insurer include all of the following EXCEPT: (A) Conviction of a third degree felony. (B) Liability for all unpaid claims. (C) Suspension or revocation of all insurance licenses. (D) Conviction of a Misdemeanor.
(D) Conviction of a Misdemeanor.
Knowingly making, publishing or circulating any oral or written statement which is false or maliciously critical of any person and which is calculated to injure such a person is known as: (A) Boycott (B) Coercion (C) Intimidation (D) Defamation
(D) Defamation
All of the following are ineligible for coverage with Citizens Property Insurance Corporation, EXCEPT: (A) Vacant properties. (B) Properties in disrepair. (C) Properties built over water. (D) Properties over 50 years old.
(D) Properties over 50 years old. Properties over 50 years old (If roof and wiring updated).
A General Lines Agent may share his commission with all of the following, EXCEPT: (A) Incorporated insurance agency. (B) Non-resident general lines agent. (C) Resident General Lines Agent. (D) Real Estate Agent.
(D) Real Estate Agent.
Citizens Property Insurance Corporation uses standard homeowners forms, however, there is very limited endorsement availability. Which of the following endorsements is available? (A) Scheduled Personal Property (B) Home Daycare (C) Personal Injury (D) Replacement Cost on Personal Property
(D) Replacement Cost on Personal Property
'The Office of Insurance Regulation oversees all the following EXCEPT: (A) Review of periodic financial statement submitted by carriers. (B) Review of NAIC coordinated multi state exams. (C) Review of material changes in ownership of insurers domiciled in Florida. (D) Review of educational background of Officers and Directors of carriers.
(D) Review of educational background of Officers and Directors of carriers.
