Final Final Property And Casualty Exam Answers

The insured has an auto policy with liability limits of $30,000/$60,000/$10,000. He negligently runs off the road and causes $70,000 damage to an apartment building. How much will the policy pay?

$10,000

An insured has an automobile policy with bodily injury limits of $100,000/$300,000. Two persons are struck by the insured's auto and are awarded $15,000 and $90,000 respectively. How much will the insured's automobile policy pay?

$105,000, plus defense costs

All of the following are minimum financial responsibility limits of liability for automobile insurance in Florida for the owner of a motor vehicle, except:

$20,000 property damage

After the first 24 hours, the Earthquake Endorsement covers damage for how many additional hours?

48

With regard to binders, which of the following statements is correct?

A binder may be oral or written

All of the following statements are correct regarding the treatment of motorcycles, except:

A helmet is required for all riders in Florida

Which vehicle would NOT be a covered auto under the Personal Auto Policy?

A new vehicle acquired during the policy period as long as coverage is requested within 45 days of taking ownership

All of the following may be considered to be an uninsured motorist, except:

A person borrowing the auto with permission

All of the following are covered under the Building and Personal Property Coverage, except:

Accounts, bills, currency, deeds, evidence of debt, money or securities

Changes to the percentage of deductible may be implemented at any time during the calendar year

All of the following are correct regarding hurricane deductibles in Florida, except:

An agreement between 2 parties enforceable by law describes:

An insurance contract

Which of the following is true regarding the Assigned Risk Plan?

Any employer who is unable to purchase coverage in the voluntary market can obtain coverage in the Assigned Risk Plan

A hurricane occurrence:

Begins when a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service

Which of the following is true concerning Workers' Compensation?

Benefits must be paid to employees for their on-the-job injuries, regardless of employer or employee negligence

By what other name is the Dwelling Form DP-2 known?

Broad Form

Which of the following is true of the Equipment Breakdown coverage form?

Business income includes income that would have been earned or incurred if there had been no loss

All of the following coverage forms may be added to the Commercial Package Policy, except the:

Businessowners Policy Coverage Form

What is NOT a supplementary payment under Section II of the Homeowners Policy?

Claim settlement payments

Which provision requires the insured to maintain a certain limit of insurance?

Coinsurance

Which part of an insurance policy describes the rules that the insured and insurer have agreed to follow?

Conditions

Which section of an insurance policy states the obligations of the parties to the contract?

Conditions

All of the following are types of Fidelity Bonds, except:

Court Bond

The "broad form" is also known as the:

DP-2

Catastrophic Ground Cover Collapse is geological activity that results in all of the following, except:

Damage consisting merely of the settling or cracking of a foundation, structure, or building

Under Workers' Compensation, all the following injuries are covered, except:

Employee injury intentionally incurred by the injured employee

Which of the following is not considered a covered peril under the Basic Cause of Loss form of the Commercial Property policy?

Flood

Which of the following Forms provides open perils coverage for Coverages A, B, and C?

HO-5

A Commercial General Liability policy will exclude coverage for bodily injury and property damage arising from all of the following, except:

Host liquor liability

The Personal Articles Floater provides for all of the following, except:

Insures commercial property

All of the following are true of the Extra Expense coverage form, except:

It is considered to be non-time element coverage

Under the Builders Risk coverage form, which of the following is correct?

It may be written on a completed values form or on a reporting form by endorsement

Under the Personal Auto Policy, the definition of bodily injury includes all of the following, EXCEPT:

Loss of property use

Which of the following is an optional coverage under the BOP?

Mechanical breakdown

All of the following are automatically covered under a BOP, except:

Money and securities

Under the Business Income coverage form, when proper entry is made in the Declarations, the following are all Optional Coverages, except:

Non-Time Element Coverage

Another word for Principal is:

Obligor

An insurance company is considered a domestic insurer in Florida if it is:

Organized and admitted in Florida

Which of the following statements regarding medical payments coverage is not correct?

Payments are considered an admission of guilt

All of the following are correct concerning medical payments under Commercial General Liability Insurance, except:

Payments are made for expenses incurred and reported within one year of the accident

How is the limit of liability applied under Coverage E of the Homeowners Policy?

Per occurrence

Bodily injury includes all of the following, except:

Personal injury

Medicare Supplement policies are administered by:

Private insurers

An insurance agent is in the habit of offering potential clients a 10% premium discount on the first year's premium if they will buy their insurance from him instead of one of his competitors. The agent is guilty of:

Rebating

The Department of Financial Services has the power to do all of the following, except:

Regulate the state Medicaid program

Which peril is NOT covered under Part D of the Personal Auto Policy?

Road damage to tires

Marie was mugged on the street when a stranger grabbed her purse and threatened to knock her down. This act describes which of the following?

Robbery

Which of the following definitions describes the taking of property by one who has caused or threatened bodily harm to that person?

Robbery

An award to an injured party for compensatory damages of actual known expenses such as loss of earnings is known as:

Special damages

All of the following are a regulatory concern with unlicensed entities transacting insurance business in Florida, except:

State or federal guaranty funds will cover unpaid claims of unlicensed entities as a priority

What is the type of injury that prevents the employee from doing any work, but from which the injured employee is expected to make a full recovery?

Temporary Partial

What is another name for the Homeowners Form HO-4?

Tenants Form

Which of the following is NOT correct with regards to the Chief Financial Officer?

The CFO is appointed by the Governor

In surety bonding, which party's obligation is guaranteed?

The Principal

What is the main difference between the Occurrence Form and the Claims-Made Form of the Commercial General Liability policy?

The coverage trigger is different for each

Choose the FALSE statement about mobile home insurance:

The mobile home and contents may be written only on a named peril basis

An auto insurance policy must provide personal injury protection to all of the following, except:

The thief of a stolen vehicle

All of the following perils are automatically covered under the DP-3 policy, except:

Theft of contents

Which of the following is NOT a purpose of licensing?

To authorize the agent to insure risks

Which of the following coverages will protect the insured against drivers who have inadequate or insufficient coverage to respond to claims?

Underinsured

Which of the following is NOT considered a fiduciary responsibility of an agent in Florida?

Use insurer funds to cover agency expenses

Answers to specific questions on an insurance application that are guaranteed to be true best defines:

Warranties

Which loss would NOT be covered by the National Flood Insurance Program?

Water main break

Comprehensive Coverage under Physical Damage Coverage of the Business Auto coverage form, includes all of the following, except:

Wear and tear, mechanical breakdown or blowouts