Concepts and statutes

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

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

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

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

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. FWCJUS 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

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

Knowingly making a false or fraudulent statement on an application is known as: A. misrepresentation B. Twisting C. Sliding D. Rebating

A. Misrepresentation

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

The continuing education statutes require a minimum of A. at least 5 hours on the subject of statutory updates 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

A. at least 5 hours on the subject of statutory updates related to the license

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

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) x loss recovery...did/should = $60,000/80,000 (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.]

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-willful violations for the same actions

B. $5,000 for each non-willful and not greater than $20,000 for all non-willful violations

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

The failure of the insured to reveal a known fact to the insurer, which would have 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

When the insurer adopts a provision providing broader coverage without additional premium, an the broader coverage automatically applies to the existing policy, it is called: A. Apportionment B. Liberalization C. Appraisal D. Abandonment

B. Liberalization

All of the following are eligible coverages for commercial automobiles in the Florida Auto Joint Underwriting Association, except: A. Liability B. Medical Payments Coverage C. Uninsured Motorist Coverage D. Personal Injury Protection (PIP)

B. Medical payments coverage

Citizen's considers all of the following uninsurable except: A. Vacant property B. Properties over 50 years old, where wiring, heating and roof have been updated C. Condemned property D. Property built over water

B. Properties over 50 years old, where wiring, heating and roof have been updated

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

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

A convenience used to provide temporary insurance is called: A. insurance B. binder C. property coverage D. liability coverage

B. binder

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

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 JUA for an individual is 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 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

Ethical conduct should require which: A. Agent puts his own interest first B. Agents 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

An insurance company formed in London which conducts business in Florida, is known as: A. Domestic B. Foreign C. Alien D. International

C. Alien

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 the 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

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 OIR does not make rating and underwriting rules; they audit them to ensure compliance with the law)

MEWA 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

The office of insurance regulation has responsibility for which: A. Legislation regarding insurance B. Adjucation of matters regarding insurance C. Regulation, compliance and enforcement of laws related to insurance D. Managing licenses 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.)

If someone would suffer economic loss from damage to their property, they have: A. a subrogation right 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.)

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

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

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

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 of 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

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 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

For roof covering to receive wind mitigation premium discount on property policies the coverings must be: A. installed according to the 2001 Florida building code requirements B. of approved materials C. tested D. installed according to the 2001 Florida building code requirements, be of approved material, and be tested

D. installed according to the 2001 Florida building code requirements, be of approved material, and be tested

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 a charge is required C. charging an application 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