Final exam 2-20 (short)
John has an auto policy with liability limits of $500,000, as well as an umbrella policy with liability limits of $1,000,000. What is the total amount of liability John has?
$1,500,000
Valuable records and papers stored on the premises are insured up to what amount?
$10,000
Standard deductibles of $___________ per car, up to $500 per occurrence, apply to losses from theft, mischief, or vandalism, with higher deductibles available.
$100
The minimum basic limits of Liability in a Dwelling policy are ______________.
$100,000
Coverage A - Dwelling may not be less than ____________ for DP-3.
$15,000
A Business Owners Policy will cover a Fire Department Service Charge up to what limit?
$2,500
Personal effects on the premises belonging to either the insured, insured employees, partners or officers are insured up to what amount?
$2,500
John has 2 cars with $100,000 in uninsured motorist stacked. After a hit and run accident what is the most John will be able to collect from his UM coverage?
$200,000
Which of the options below, under the Personal Auto Policy, is not considered a supplementary payment?
$300 on bail bonds
If John has an accident and his PIP deductible is $1,000, how much will PIP pay if his medical bills total to $6,000.
$4,000
John was driving to work when his windshield was shattered by a falling tree limb. His Other Than Collision Deductible is $100, while his Collision Deductible is $250. If the cost to repair his windshield is $400, how much would the insurance company pay?
$400
To be certified as an act of terrorism by the Secretary, property and casualty losses must exceed what amount?
$5,000,000
What is the minimum hurricane deductible in a homeowners policy?
$500
Death Benefits include Funeral Expenses that are paid up to what amount?
$7,500
If an insurer is going to cancel an insured's Commercial Property policy during the first 90 days, for reasons other than non-payment, the insurer must give written notice how many days before cancellation?
20
Cancellation of a WC policy less than 90 days old requires how many days previous notice to the insured and the Division?
30
If John has business property that must be transported and stored at a temporary location after his business suffered a loss his business owners policy would cover his personal property for how many days at the temporary location?
30
If an employee waits more than _____ days to report an injury, their claim might be denied.
30
A business being held liable for the acts of its employee is known as what type of liability?
Vicarious Liability
In a Business Auto Policy's Section 1 (Covered Autos), Symbol 1 means ___________.
Any auto
Who is responsible for injuries suffered by a subcontractor if the subcontractor does not have WC insurance?
Contractor
When more than 50% of an agent's income comes from business from an agent or their family, this is know as what type of business?
Controlled business
The following options listed below are excluded from the Business Owners Policy with the exception of which one?
Convenience Food Stores without gas sales
John was in the process of making an addition to his home. On site he has an assortment of supplies to be used for construction such as lumber, screws, and primer. During a fire, the materials are destroyed. Even though the materials had not yet been used in the construction of the addition to the house, his homeowners insurance does cover the materials. What homeowners coverage covers the materials?
Coverage A - Dwelling
If John's rental property is destroyed due to a fire, under his Dwelling policy he is eligible to receive compensation for the rent amount lost while the dwelling has not been fit to use as a result of which coverage?
Coverage D
John's house has been destroyed due to fire. As a result of being displaced by the fire John and his family were forced to live in a hotel temporarily. The cost of their lodging and meals is covered by which coverage from his homeowners policy?
Coverage D - Loss of Use
According to FL Workers Compensation Law sole proprietors and partners are recognized as the employer, or the employee?
Employer
Pick the correct transportation mode that is considered a "defined motor vehicle" according to the Florida No Fault Law.
18 Wheel Tractor Trailer
If a CGL policy is going to be cancelled within the first 90 days, how many days notice does the insurer need to give the insured?
20
Cancellation of a WC policy due to non-payment requires a previous notice of how many days?
10
Coverage B (Other Structures) is automatically what percentage of Coverage A (Dwelling) in a homeowners policy?
10
How many days advanced written notice must be given for a Commercial Residential Policy for non-renewal?
120
The General Lines state exam consists of _______ questions with a ______ hour time limit.
160; 3
For a General Lines License, the applicant the he or she is how man years of age?
18
In respect to Workers Compensation, Employment, with the exception of government employment and construction employment, means organizations having more than how many employees require Workers Compensation?
4
Once your adjuster license has gone beyond __________ months without an appointment, you will have to qualify as a first time applicant.
48
For Builder's Risk Coverage Form, if a building has a completed value of $500,000 but its current insurance limit is $250,000, the loss payment will be reduced by how
50%
An Industrial Fire and Burglary policy may be suspended if their is a vacancy for more than how many days?
60
Crime & Employee Dishonesty Insurance includes _______ insuring agreements.
7
Period of Restoration begins how many hours after direct damage?
72
A designated customer service representative in Florida can only be appointed by who or what?
A General lines agent
Coverage for Industrial Fire policies is usually written on what type of basis?
Actual cash value (acv)
Burglary and Theft coverage provides for certain classes of property. Gold and silver qualify under which class?
B
What type of bond guarantees a person's appearance in court?
Bail Bond
What is temporary insurance which can be made through oral or written agreement?
Binder
To comply with Florida's Financial Responsibility Law what are the coverages required?
Bodily Injury Liability & Property Damage Liability
A surety bond has all of the following characteristics listed below with the exception of which one?
Cancelable
What elected official is a member of the Florida cabinet, and serves as the head of the Department of Financial Services?
Chief financial officer
Who directly oversees the Division of Insurance Agent and Agency Services?
Chief financial officer
Insurance company regulation is administered by which office?
Commission of Office of Insurance Regulation
Failure to comply with WC means employers could face some of the penalties listed below with the exception of which one?
Confiscation of Business Assets
John is shopping for auto insurance and is offered an insurance policy which he does not agree with. The insurance representative tells him that the terms of the insurance contract are non-negotiable. This type of insurance contract is known as a(n)
Contract of adhesion
John lives downtown and does not see the need for a car. However his company furnishes a car for him to use whenever he wants. John does want liability coverage just in case he ever rents a car. What type of coverage would his employer need to add to their Business Auto Policy to make sure John has the coverage he desires?
Drive other car coverage
Worker's Compensation Law in Florida can be found in what Florida Statute?
F.S. 440
The Cause of Loss-Basic Form includes all of the perils listed below with the exception of which of the following options?
Falling objects
For Dealers Blanket Coverage, collision or upset of the transporting vehicle is covered. True or False?
False
John and David are best friends who are not related, live together and jointly own one vehicle. This means they are ineligible for a Personal Auto Policy? True or false?
False
John's cooking unit, which is attached to a stove pipe, malfunctioned causing a fire. The fire created a vast amount of smoke damage. John's fire policy would not provide coverage for the smoke damage. True or false?
False
John's arcade was used as a set for a video shoot. The production company paid John with a money order. When John went to deposit the money order he was informed the money order he was given was counterfeit. This loss is not covered under his Crime and Employee Dishonesty Insurance.
Fasle
The standard industrial fire policy limits coverage to which perils?
Fire & lightning
If an agent's license has gone more than 48 months without an appointment he or she must apply once again as what?
First time applicant
In a business auto policy, ratings are based on all of the factors listed below with the exception of one. Which of the following choices is not considered when rating a business auto policy?
Frequency of use
What type of insurance is designed for those in the business of servicing, selling, repairing, or parking vehicles?
Garage Insurance
Farm Coverage E: Scheduled Farm Personal Property, covers all of the options below with the exception of which one?
Growing Crops
The following are all penalties for non-compliance with Florida's No Fault Law with the exception of which one?
Impounding of Auto
A bond typically has three parties but sometimes may have four. Which of the options listed below is sometimes the fourth a party to a bond.
Indemnitor
Farm Liability covers all of the options listed below with the exception of which one?
Injuries to farm employees
Professional Liability Insurance Standard Coverage Form will insure all of the options listed below with the exception of which one?
Insurance agents
Employment-Related Practices Liability considers all of the options listed below as insureds with the exception of which one?
Investors
Personal Advertising and Advertising Injury Coverage covers all of the options listed below with the exception of which one?
Liability assumed under contract
What type of insurance best describes when payments are made on behalf of the insured to another party?
Liability insurance
If an insurance company broadens coverage in similar policies then those who are already insured under similar policies would receive said benefits of the broadened coverage without additional premium. This insurance concept is best known as
Liberalization
Supplementary Payments covers all of the options listed below with the exception of which one?
Liens
If the principal is responsible for any type of flaws or defective work, what type of bond is required?
Maintenance Bond
If Ashley states that she has an anti-theft alarm on her vehicle when she in fact does not have an alarm. Misleading the insurer in such a way is known as
Misrepresentation
Intentionally destroying your car to collect money from the insurance is classified as what type of hazard?
Moral
Wind, theft, lightning, fire, and flood are all examples of what?
Peril
After wrecking his car John does not have a vehicle. Until he purchases a new vehicle in the future he wishes to drive someone else's vehicle while still being covered for liability, uninsured motorist, and medical payments. What type of coverage should John get?
Named Non-Owner Coverage
In respects to Medical Benefits under WC, what is the dollar limit on a claim?
None
Which office provides oversight to Florida's financial service providers?
Office of financial regulation
Which of the following options below is not eligible for homeowners insurance?
Owner of 6 unit apartment building
Which of the listed vehicle types listed below is not considered a Commercial Auto in a Business Auto Policy?
Panel truck
Commercial Package Policies allow a potential insured to combine 2 or more of the following policies listed below with the exception of which one?
Personal Auto Liability
Under the Cyber Liability Insurance, the standard policy also known as as Information Security Policy, provides coverage for all of the options listed below with the exception of which one?
Power Surge
A bond typically has three parties. Which of the options listed below is not a party to a bond.
Secondary
A Business Owners Policy includes the following sections listed below with the exception of which one?
Section IV: Named Insured
There are three types of fiduciary bonds. Which of the following options is not a fiduciary bond?
Self-Insurance Bond
Which of the listed vehicle types listed below is not considered a Private Passenger Auto in a Business Auto Policy?
Service trailers
John was involved in an automobile accident that was not his fault. John then transferred his rights to his insurance company to collect damages for the claim they just paid. This is a perfect example of what insurance concept?
Subrogation
What is the best definition of risk?
The chance of financial loss
In Section II: Liability of a Business Auto Policy, who is not an insured driver?
The owner of an auto hired or borrowed from an employee or family member.
________ is the unlawful taking of money, securities, or other property.
Theft
After producing a defective product John's company has to issue a recall. This recall would be covered under his Commercial General Liability.
True
Crime & Employee Dishonesty Insurance cannot be written as part of a package policy?
True
If a psychologist's patients depend on the psychologist and not the location, but the psychologist has to relocate while their original location is being repaired then Extra Expense Coverage Form would cover the cost of setting up a temporary location.
True
John owns an arcade and on a busy day a bucket full of arcade tokens was stolen from inside his place of business. This type of theft would be covered under the Crime and Employee Dishonesty Insurance Policy that John has.
True
A policy condition that is based on information you provided to the insurer during the application for insurance, or a policy condition that was inserted by the insurer is known as a(n)
Warranty
While playing baseball with your friends you hit the ball and the ball consequently hits someone on the sidewalk adjacent to the park. Would you be covered by your homeowners insurance, and if so which coverage covers this type of situation?
Yes, covered by Coverage E (Liability)
A Business Owners Policy is written on an open perils basis.
true
If an auto accident occurs in front of John's grocery store which does not allow customers to enter his store for 5 hours, can John file a property damage claim under his Commercial General Liability Property?
yes
