FL 220 General Lines Exam

D- No Damage to Property of Others coverage

109. Each of the following is a difference between Personal Liability and Section II Liability in HO's EXCEPT: A- No built in Loss Assessment coverage B- No Farm Exposure option C- No Personal Injury option D- No Damage to Property of Others coverage

D- There is no limit on Part One Part One = Worker's Compensation

124. Basic limit of Part One of Workers Compensation insurance is: A- $100,000 B- $300,000 C- $500,000 D- There is no limit on Part One

b. Consequential Damage

130. The boiler and machinery endorsement that covers loss due to spoilage from lack of power, heat, etc., is: a. Limited Coverage b. Consequential Damage c. Additional Expediting d. Extra Expense

C- Alien

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

C- Regulation, compliance and enforcement of laws related to insurance

21. Under the CFO, 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- 20

23. 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

How many hours of continuing education are required for a general lines agent with fewer than 6 years of experience?

24 Hours

In order to maintain an insurance license, an agent will need to satisfy Florida' s continuing education requirement of

24 hours of continuing education in every 2-year period

A- Insuring agreement

54. 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

C- Conditions

55. 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- Uncontrolled

73. In Inland Marine a policy created by one company for its customers is called: A- Controlled B- Unique C- Uncontrolled D- Private

Liberalization clause

A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of the broadened coverage.

The special aviation coverage, which protects against legal liability for loss or damage to cargo or baggage, is called? Choose one answer. a. Airport and air meet liability b. Cargo Liability c. Hanger keeper's liability d. Products liability

B

How are state insurance Guaranty Associations funded?

By their members - authorized insurers

Which of the following activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance agent's license?

Forgery

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since IRS treats them as a refund of a portion off the premium paid

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since IRS treats then as a return of a portion of the premium paid

For an Apartment house or Residential condo association building to be eligible for for a Businessowners policy, a permitted incidental occupancy must not exceed what amount? and a contractor has what alternative limitation?

Not to exceed 25,000 square feet. Contractors, not more than 7,500 square feet or more than 15% of the total floor area.

ENFORCES PENALTIES

OIR (OFFICE OF INSURANCE REGULATIONS) & DFS (DEPT OF FINANCIAL SERVICES)

All of the following would be considered an insurance transaction EXCEPT

Obtaining an insurance license

Office of insurance regulations

Office shall be responsible for all activities concerning insurance, rates, policy forms, market conduct , claims and administrative supervision

Cause of loss form

On property policies, describes what PERILS are covered by the contract.

C

Which type of bond allows an issuing company to reissue a lost stock certificate, bond or similar instrument? Choose one answer. a. Customs Bond b. Blue Sky Bond c. Lost Instrument Bond d. Public Official Bond

A

Which type of bond is furnished by both the plaintiffs and defendants in litigation to protect the opposing party from loss in the event the principal fails to show a legal entitlement to the remedy sought? Choose one answer. a. Court Bond b. Conservation Bond c. Probate Bond d. Insolvency Bond

C

Which bond guarantees indemnification to the obligee for any losses resulting from the principal's failure to complete the contract work in accordance with specifications? Choose one answer. a. Bid Bond b. Payment Bond c. Performance Bond d. Maintenance Bond

B

Which bond guarantees the principal will be responsible after completion and acceptance to correct faulty work or replace defective materials? Choose one answer. a. Bid Bond b. Maintenance Bond c. Performance Bond d. Payment Bond

C

Which bond guarantees to a permitting authority that promised streets, sidewalks, sewers, streetlights and other required improvements would be installed? Choose one answer. a. Payment Bond b. Supply Bond c. Subdivision Bond d. Maintenance Bond

RESPONSIBILITY OF AN AGENT WHEN IT COMES TO NAME/ADDRESS/INFORMATION CHANGE:

an agent has 30 days to notify the DFS, failure to do so will result in a $250.00 penalty (1st time) and a $500.00 fine each time after

FOR A MINIMUM OF 3 YEARS

an agent must maintain their customers records, files, any policies or transactions made in their office

Other Insurance

another insurance policy that might apply to the same occurrence or loss

A

Which coverages are covered under employee theft coverage? Choose one answer. a. All of the answers are correct b. Loss of or damage to money resulting from theft committed by an employee c. Loss of or damage to other property resulting from theft committed by an employee d. Loss of or damage to securities resulting from theft committed by an employee

Under Part C, what is the limit for damage by water from refrigerating or air conditioning vessels and piping?

$25,000.

Under Part C, what is the limit for damage caused by ammonia contamination?

$25,000.

Under Part C, what is the limit of payment for the additional expenses of cleanup, repair, replacement, or disposal of the property damaged if damage is caused by a substance declared to be hazardous by a governmental agency(other than ammonia)?

$25,000.

Under Part C, what is the maximum amount available for expediting expenses?

$25,000.

A premium discount is the term that describes when an insured owes a total standard premium greater than

$5,000

C- A joint venture formed 50 days ago & not yet reported to the insurer

125. All of the following could be insureds under a CGL EXCEPT: A- The spouse of a partner of an insured partnership B- The employee of an insured corporation C- A joint venture formed 50 days ago & not yet reported to the insurer D- A subsidiary entity purchased 62 days ago

b. Performance Bond

129. A bond that guarantees to the oblige indemnification for any losses resulting from principal's failure to complete the job according to the terms of the contract is called: a. Bid Bond b. Performance Bond c. Supply Bond d. Maintenance Bond

If an insured's policy expires today when can coverage be bound in the WCJUA?

12:01 am following date of receipt of completed application and premium

D- Driver can collect under WC

132. Med Pay under PAP covers all EXCEPT: A- Driver under influence of alcohol B- Driver speeding C- Driver at fault for accident D- Driver can collect under WC

A- 66 2/3% X AWW (average weekly wage) Temporary disability - 66 2/3% X AWW for 104 weeks

136. Under Workers Comp, How is compensation calculated for Permanent Total disability? A- 66 2/3% X AWW (average weekly wage) B- [(85% X AWW) - actual wage] X 85% C- 60% X AWW D- [(95% X AWW) - actual wage] X 85%

B- Stand Alone Excess

137. A commercial Umbrella Policy is similar to: A- Follow Form Excess B- Stand Alone Excess C- Standard Excess D- Non-Standard Excess

B- 60 days

138. Under Commercial Crime Discovery Form loss must be discovered in policy period or within how many days after expiration? A- 30 days B- 60 days C- 90 days D- 120 days

C- $60,000

139. Sam's Show Store has a Value Reporting endorsement, monthly option on his Building & Personal Property Coverage Form. The provisional amount is $100,000 and the effective date is 3/1/XX. Sam files his reports for March, April, May and June. The June value is $70,000. If Sam has a $60,000 loss in September and no more reports had been filed, the most he would recover is: A- 0 B- $45,000 C- $60,000 D- $70,000

What are the responsibilities of the Department of Financial Services?

1) Approve issuance of licenses to agents, CR's, and adjusters; 2) Supervision of claims; 3) Investigate charges of unethical conduct and take judicial action.

A- Open

62. Ocean Cargo coverage that covers goods of a certain class up to certain limits with values to be declared subsequently with no termination date is called: A- Open B- Special C- Valued D- Franchise

A- Negligent damage to another ship

63. The Running Down Clause would cover which of the following damage: A- Negligent damage to another ship B- Negligent damage to a pier C- Negligent damage to a reef D- Injury to passengers of another ship

D- Jettison

66. Throwing part of ship or cargo overboard is called: A- General Average B- Particular Average C- Barratry D- Jettison

B- Controlled

67. A Standard Provision form which has been published and filed for uniform use by the Bureau is called: A- Admitted B- Controlled C- Uncontrolled D- None of these choices

C- Pay nothing 5%*$100,000=$5,000

68. An Ocean Marine policy has a Franchise deductible with a 5% limit. If a cargo insured for $100,000 suffers a $2,500 loss the carrier would: A- Pay $2,500 B- Pay $2,375 C- Pay nothing D- Pay replacement cost

C- A partial loss

69. A particular average is: A- A maritime peril B- A maritime warranty C- A partial loss D- A loss sharing clause

D- Theft coverage requires visible signs of forceful entry

140. Under Inland Marine policies all are correct EXCEPT: A- 25% of limit for newly acquired property B- Jewelry & Furs - 30 days automatic coverage C- Fine Arts - 90 days automatic coverage D- Theft coverage requires visible signs of forceful entry

C- Surety, Obligee, Principal

141. Three parties to a surety bond are: A- Principal, Executor, Surety B- Obligee, Principal, Administrator C- Surety, Obligee, Principal D- Adjudicator, Surety, Obligee

D- $25,000

142. The maximum available for expediting expenses in a Boiler & Machinery coverage is: A- $2,500 B- $5,000 C- $10,000 D- $25,000

D- Noncancellable

143. When the health insurer cannot cancel the policy, cannot increase premium and agrees to renew policy to a stated age, it is A- Optionally Renewable B- Conditionally Renewable C- Guaranteed Renewable D- Noncancellable

B- Weight of ice and snow

153. In the Building and Personal Property Coverage form, vacancy of more than 60 days suspends coverage for all of the following causes of loss EXCEPT: A- Sprinkler leakage B- Weight of ice and snow C- Attempted theft D- Vandalism

B- All risk, worldwide

154. The coverage afforded by a Personal Articles Floater is: A- Named peril, worldwide B- All risk, worldwide C- Named peril, US and territories D- All risk, US and territories

D- Fiduciary

155. Which type of bond guarantees performance and utmost good faith of a person appointed by the court such as a guardian, administrator or executor? A- Public official B- Court C- License D- Fiduciary

C- $500

156. What is the standard deductible in the Boiler & Machinery coverage? A- $100 B- $250 C- $500 D- $1,000

C- All dental expenses

157. Health insurance policy exclusions include all EXCEPT: A- Mental illness B- Self-inflicted injury C- All dental expenses D- Treatment in VA hospital

C- Department of Financial Services

36. 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

Which of the following is true about the discovery forms?

Any loss discovered up to 60 days after policy expiration is covered regardless of when occurred

What is the retroactive date and to what form does it apply?

Applies to Claims-made form, and the date is stated in the Declarations.

How is the disability class 'Permanent Total' compensated?

At 66-2/3% of the employee's average weekly wage, without limit of time

How long does an agent have to keep records that pertain to a premium payment?

At least 3 years after payment.

How often must domestic insurance companies be examined by the Chief Financial Officer in Florida?

At least ever 5 years

In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for

BI- PD- UM under part A

Which of the following would NOT be considered a misrepresentation on the part of the insurer?

Backdating policies to secure a lower premium for the insured

The Dwellin program has three coverage forms: DP-1 Dwelling Property B____ Form DP-2 Dwelling Property B_____ Form DP-3 Dwelling Property S______ Form

Basic broad Special

Flood

A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties is knows as a?

An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto?

A two-ton gran truck with a 6,500- pound capacity

What are common carriers required to issue to every shipper that ir transporta goods for

A uniform bill of lading

What are the different coverage sections of the Farm Property coverage form? (Coverage A through G)

A) Dwelling; B) Other Structures; C) Household private property; D) Loss of Use; E) Scheduled farm personal property; F) Unscheduled farm personal property; G) Other farm structures.

The NFIP emergency program

A. Goes into effect after the community has rcvd a flood hazard boundary map and ends when the normal program begins. B. Provides limited amounts of coverages at subsidized rates. D. Both A and B

What level of authority is given to the office of insurance regulation with respect to examination of insurer's activities to determine compliance unfair trade practice law?

Absolute

Value Reporting Endorsement

An endorsement that can be added to Commercial Property policies which sets the limit of insurance somewhat higher than expected peak values and then requires the insured to make periodic reports of actual values. These reports are averaged and the premium is then adjusted to reflect the average exposure.

Drive other Car coverage

An endorsement to the Business Auto Policy, which covers named persons for non-business use of autos, they do not own. Used when the named insured furnishes an auto to another, such as an employee, who does not own his or her own car.

Which of the following would be an example of an unfair claims settlement practice?

Failing to acknowledge a claim within 30 days

The rights of a mortgagee are not affected by an increase of _______ unless the mortgagee had knowledge of the increase of_____ and failed to notify the insurer

HAZARD, HAZARD

A. Two acres or over

If Flood is confined to a single building, how much area must be inundated in order for the Flood policy to provide coverage? Select one: A. Two acres or over B. No limit C. One acre or over D. Three acres or over

Persons covered under an insurance policy, whether named or not, are known as the

Insureds

C

Joe wants to increase his personal injury protection medical benefits from 80 percent to 100 percent and work loss benefits from 50 percent to 80 percent; what endorsement should he add to the PAP? Choose one answer. a. Named Non-Owner Coverage b. Additional Personal Injury Protection c. Extended Personal Injury Protection d. All of the answers are correct

Which is correct about the application for a health insurance policy?

Is written and becomes part of the policy

What is section A of the Boiler and Machinery Coverage form?

Coverage

What is the Separation of Insureds?

Coverage applies separately to each insured, as if that interest were the only insured.

A

Joe works for XYZ Corp. Joe does not own an auto but desires PIP coverage for himself and his wife. Which endorsement would Joe ask XYZ Corp. to add to their Business Auto Policy? Choose one answer. a. Named Individuals - Broadened PIP b. Individual Named Insured c. Drive Other Car Coverage d. A separate Personal Auto Policy

In property and casualty insurance, what is the term for the amount of loss that the insured must cover out of pocket, and the insurer will only pay for the add'l amount of the loss above this limit?

Deductible

What is section D of the Boiler and Machinery Coverage form?

Deductible

Permitting individuals of the same class to be charged a different rate for the same insurance is the unfair trade practice of

Discrimination Ex: twins with different economic situation. Company cheated higher to one b/c is better than the other one.

Professional liability coverage protects against legal liability resulting from

Errors and omissions

Which of the following is not an exclusion under cyber liability policy?

Extortion threat

All of the following are parts of a personal auto policy EXCEPT?

PD coverage . It is a section in a commercial auto policy

Under a Commercial General Liability policy, what is the definitions of Property Damage?

Physical injury to tangible property, including loss of use of property not physically injured. Does not include copyrights and patents.

Speculative Risk

Possibility of a loss or a gain. Betting on horses or investing in public stock are examples because the gambler or investor hopes for a financial gain. Insurance does not deal with speculative risk.

A

John and his brother Jim are sharing an apartment while they attend college. They have decided to purchase a car together to save expenses. Which optional endorsement should John and Jim add to their PAP? Choose one answer. a. Joint Ownership b. Extended Personal Injury Protection c. Named Nonowner coverage d. Additional Personal Injury Protection

A business using its own trucks to move its own cargo would insure the cargo using?

Motor truck cargo- owners form

What type of property does a personal floaters policy ever?

Movable personal property, wherever it may be located

Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?

No more than the per occurrence limit applies, no matter how many insureds are involved

Is Health Insurance part of these two categories?

No, it is its own category

What is 'that coverage' which has its own aggregate limit, separate from the basic general aggregate limit, and what is its limit?

Products and Completed Operations has a aggregate basic limit of $200,000

What does the Businessowners policies' optional coverage, Accounts Receivable do?

Provides ability for increased limits.

What does the Businessowners policies' optional coverage, Forgery and alteration do?

Provides ability for increased limits.

What does the Businessowners policies' optional coverage, Valuable papers and records do?

Provides ability for increased limits.

All of the following are true regarding rebates EXCEPT

Rebates are allowed if it's in the best interest of the client

B. A plan established for the purpose of providing for employees' or their beneficiaries' accident, disability or death benefits

Self-insurance is: A. A plan covering fewer than 10 employees B. A plan established for the purpose of providing for employees' or their beneficiaries' accident, disability or death benefits C. A plan, which provides for continuing employees' regular compensation during illness or disability D. A plan administered by or for the Federal Government

Which of the following is NOT a coverage of an info. Security protección policy?

Terrorism risk insurance

assignment

The act of transferring to another all or part of one's rights arising under a contract.

What type of roof to wall connections qualify for mitigation credits?

Straps or Clips.

Which of the following groups would most likely be covered under a blanket accident policy?

Students at a public school

B

Which coverage continuation provision requires the insurer to renew the policy to a stated age, typically 65? Choose one answer. a. Conditionally Renewable b. Guaranteed Renewable c. Optionally Renewable d. Non-cancelable

D

Which of the following forms provides the broadest coverage for higher limits of liability? Choose one answer. a. None of the answers are correct b. Follow form excess liability c. Stand-alone form excess liability d. Umbrella

D

Which of the following has liability coverage under an individual's PAP, when a covered vehicle owned by the named individual is being 'road tested' by an auto mechanic? Choose one answer. a. The auto mechanic b. None of the answers are correct c. The auto repair shop, if they are responsible for the conduct of the mechanic d. The named individual

C

Which policy provision provides for a period during which they will remain in force after the premium due date if the premium is not paid? Choose one answer. a. Double indemnity b. Waiver of premium c. Grace period d. Waiting or elimination period

A

Which type of bond is one that guarantees the performance of a person appointed by a court, or named in a will or deed of trust to take possession of property, collect assets, make investments, pay debts, sell assets, carry on business, etc? Choose one answer. a. Fiduciary Bond b. Court Bond c. Bail Bond d. Probate Bond

A

Which type of bond is required of investment companies guaranteeing against misrepresentation of securities and defrauding the public generally? Choose one answer. a. Blue Sky Bond b. Public Official Bond c. Customs Bond d. Self-Insurance Bond

C

Which type of policy generally states a limit for daily room and board charges, subject to a maximum number of days, and other specific limits or one blanket limit on the additional hospital fees? Choose one answer. a. Accident insurance b. Hospital indemnity insurance c. Hospitalization expense insurance d. Surgical expense insurance

C

Which type of policy only covers fees of physicians for performing surgery, with a maximum amount payable for each procedure? Choose one answer. a. Accident insurance b. Hospitalization expense insurance c. Surgical expense insurance d. Hospital indemnity insurance

Who is responsible for paying premiums and receiving return premiums?

The first named insured only

C

The flood policy will only cover a dwelling for replacement cost if which of the following conditions exist? Choose one answer. a. The dwelling is insured for at least 90% of its replacement cost b. The dwelling can be multi-family c. The dwelling is lived in at least 80% of the time d. The contents must be insured for at least 80% of their replacement cost

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract ?

The obligee May engage another contractor and then seek reimbursement from the surety

Coinsurance

This is a method of providing equity (the difference b/w the value of the assets/interests and the cost of the liability of something owned) in premiums by granting lower rates to those insureds who insure for a higher percentage on the subject property. **Math Equation given in book**

C

Trucks which operate over a 200 mile radius would be rated? Choose one answer. a. Local b. Intermediate c. Long Distance d. All of these are correct

What are the two types of excess liability policies?

Umbrellas and Excess liability policies.

Bodily Injury

Usually defined to include physical harm, sickness, disease or death resulting from any of these.

Loss Settlement Valuations

Usually requires that replacement be done in a fair way. The insured does not profit from it. The book uses, if paint is ruined, you cannot repaint using three-year old paint.

Appraisal

Usually, each company selects an appraiser and those two would select a third if they cannot agree

D

Which additional peril does the Broad Cause of Loss form not provide? Choose one answer. a. Falling objects b. Water damage from discharge from an automatic sprinkler system c. Weight of ice, snow and sleet d. Water damage from discharge from an A/C handler outside the building

C

Which bond guarantees delivery at an agreed price for purchasing goods from another? Choose one answer. a. Payment Bond b. Maintenance Bond c. Supply Bond d. Subdivision Bond

Under the Building and Personal Property Coverage form, what coverage is suspended once the building is over the day-limit for vacancy?

Vandalism, sprinkler leakage, building glass breakage, water damage, and theft or attempted theft. Any other covered loss, the amount otherwise payable is reduced by 15%

Rebating is allowed only if the rebate is made available to...?

all insureds in the same actuarial class.

Flood insurance through NFIP is only available on "eligible" b_________, or "eligible" c_______ within "eligible" b_________, and only if the b_________ or c_______ are located within an "eligible" community.

building and contents

Dwelling Program: Coverage A - Dwelling: When Coverage A is included it covers the dwelling b_______ and includes additions a_______ to the dwelling, building equipment and outdoor equipment used for the service or located on the premises. B______ e________ on or adjacent to the dwelling for the use of alteration or repair of the dwelling are also covered.

buildong attached buildong equipment

The Florida Statutes: Insurance Policy

means a written contract or written agreement for or effecting insurance or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements and papers which are a part thereof

Property Insurance

means any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests.

liability insurance

means payment will be on behalf of the insured to another, based upon the insured's liability to the recipient

EXPRESS AUTHORITY

provided by contract / written contract

AUTHORIZED COMAPNAY

receives a certificate of authority

Franchise Deductibles

specify that no payment shall be made until the loss equals or exceeds a prescribed amount, then the loss is paid in full

Straight Deductibles

specify the deduction of a flat amount from a loss payment, regardless of the size of the loss

DEFAMATION

spreading (disseminating) false information either oral or written about a person or an organization or their products, misrepresenting facts of another company through advertising

MCCARRAN-FERGUSON ACT

state regulation of insurance is a public interest

Insurance contract only protects against

the financial consequences associated with the occurrence of some insured peril

MARKET VALUE

the price that would have been paid to purchase an asset in that market - in FLA we do not insure MARKET VALUE because we do not insure the land

For property and liability insurance to be contracts of indemnity

the principle of indemnity must be present

proximate cause

unbroken connection between an occurence and damage that grows out of the occurrence, then the resultant damage is all part of the occurence.

PROXIMITY CAUSE DOCTRINE

unbroken connection between the occurrence and the damage from the occurrence

DEPARTMENT UNDER DFS

unclaimed property financial services commission division of W/C

Form HO-8 also provides named perils for Coverage C; fewer named perils are covered than those listed for HO-2. The HO-8 form includes only the first 10 listed perils of HO-2 plus v_______ eruption and catastrophic c_____

volcanic collapse

What are the death benefits under a disability policy?

Funeral expenses up to $7,500. Paid at a maximum of 66-2/3% of the average weekly wage up to $150,000 for all dependent claims combined.

G.I. - Symbol 30

G.I. - Autos left with you for service, repair, storage, and safekeeping.

G.I. - Symbol 31

G.I. - Dealers' autos and autos held for sale by nondealers or trailer dealers. PD Coverage.

G.I. - Symbol 28

G.I. - Hired autos only. Liability and PD only. Covers autos only the named insured hires, rents, leases, or borrows. Excludes auto of employees and members of their family.

G.I. - Symbol 29

G.I. - Non-owned autos only. Liability only. Covers autos the named insured does not own, lease, hire, rent, or borrow except from an employee or family member.

G.I. - Symbol 22

G.I. - Owned auto only. May be applied to Liability, Medical Payments, UM, and Physical Damage. Automatic coverage, no requirement to report replacement.

G.I. - Symbol 24

G.I. - Owned autos other than private passenger autos only. All coverages except PIP. Automatic coverage.

G.I. - Symbol 26

G.I. - Owned autos subject to a compulsory UM law, not used in Florida.

G.I. - Symbol 23

G.I. - Owned private passenger autos only. All coverages except PIP. Automatic coverage.

When an insurer plans to non renew a commercial property insurance policy, it must

Give at least 45 days advance written notice of its intent and state the reasons why the policy will not to be renewed

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of a liability higher than the limits shown in the dec page. What amount will the insured's policy pay?

Higher limits

C- 100/300/50

39. Liability coverage through the FAJUA 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

PENALTIES WHEN REPRESENTING AN UNAUTHORIZED COMPANY

3rd degree felony / agents licence will be revoked / agent is responsible to pay the claims

D: Liability coverage

4. 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) Exclusions

56. The part of an insurance contract that removes coverage for certain things is called the: A) Definitions B) Conditions C) Endorsements D) Exclusions

B) To restore lost value

57. 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

C- Resolve disputes about the value of covered property

58. 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

D- Hull, Cargo, Freight and protection and indemnity

59. The general function of Inland Marine Insurance is to cover all EXCEPT: A- Risks of transporting property B- Any property moveable by its nature C- Instrumentalities of transportation and communication D- Hull, Cargo, Freight and protection and indemnity

C: Property coverage

6. 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

Assuming the insurer and the insured agree to the amount payable for a loss covered under a DP, how soon after the insurer has received proof of loss must it make payment?

60 days

C- Controlled

60. An Inland Marine a policy created by a bureau such as ISO is called: A- Uncontrolled B- Uniform C- Controlled D- Contrived

D- Freight coverage

61. A marine vessel owner may insure against the loss of income due to failure to deliver cargo with: A- Sue and Labor B- Cargo coverage C- Hull coverage D- Freight coverage

What is the maximum service charge a general lines agent may charge per installment for financial insurance premiums?

$3

What is the maximum service charge a general lines agent may charge per year for financial insurance premiums on policies issued by the agent?

$36 maximum per year. $3 per installment x 12 months = $36

What are the three benefits under Florida Workers Compensation Law?

1) Payment of medical expenses; 2) Compensation for disability; 3) Death.

What are the four classes of disability?

1) Permanent Total; 2) Temporary Total; 3) Permanent Impairment; 4) Temporary Partial.

What are the different exposures a business can be exposed to?

1) Premises and Operations Exposure; 2) Products and Completed Operations Exposure; 3) Work; 4) Product; 5) Contractual Liability; 6) Vicarious Liability.

Under the Builders Risk Coverage form, what does a Coverage Extension cover?

1) Provides $5,000 coverage for building materials owned by others in the insured's care, custody and control; and 2) The materials are located in or on the building or within 100 feet of the premises and intended to become a permanent part of the building.

What are the responsibilities of the Office of Financial Regulation?

1) Provides regulatory oversight to Florida's financial providers; 2) Reports to the Financial Service Commission.

C: an insurable interest

1.If someone would suffer economic loss from damage to their property, they have: A: a subrogation right B: a proximate cause C: an insurable interest D: a contingent claim

B- The agency's CGL will respond

183. An insurance agency holds a Christmas party & one of the guests has a little too much bubbly. If the guest injures someone and the injured party sues the agency: A- The agency will need a liquor liability coverage form B- The agency's CGL will respond C- The agency needs Legal Liability Coverage Form D- The agency's Business Auto Policy will respond

B- Extortion

184. The Crime Endorsement that covers losses due to threats of bodily harm or threats to damage property is called: A- Extended Coverage B- Extortion C- Exclusive D- Extra special

C- Rebuild within a reasonable time

185. To receive replacement cost adjustment of a covered loss under a Building and Personal Property Coverage form, the insured must: A- Rebuild at the same location B- Notify the company with 90 days of intent C- Rebuild within a reasonable time D- None of these choices

A- Maintenance Bond

187. A bond that guarantees correction of faulty work or replacement of defective materials for a specific time, usually one year is called a: A- Maintenance Bond B- Supply Bond C- Payment Bond D- None of these choices

D- $5,000,000

188. In Boiler & Machinery, for the Small Business form to be written, the 80% replacement cost cannot exceed: A- $250,000 B- $500,000 C- $1,000,000 D- $5,000,000

D- Neither occupational injury nor dental expenses

189. John Doe sent in a claim for an occupational injury and for dental expenses to his health insurance company. His health insurance will pay: A- Both occupational injury and dental expenses B- Occupational injury only C- Dental expenses only D- Neither occupational injury nor dental expenses

A

A Business Auto Policy (BAP) covers all of the following except: Choose one answer. a. A truck crane b. A pickup truck c. A semi-trailer d. A private passenger automobile owned by corporation

What type of group rating uses the actual experience of the group as a factor in developing the rates to be charged?

Experience rating

The premium for a basic homeowner's policy is based on three elements of rating: (1) the f___ protection available (2) the c__________ of the dwelling (3) the location in the s____ From these rating elements, a "key premium" is established and multiplied by a "key factor" based on the Coverage A limit or Coverage C limit for forms HO-4 or HO-6 to produce the homeowners base premium. Each option for broadening coverage is subject to an additional premium for which a rate is based on the coverage being added.

fire construction state

ADJUSTER

must advise the claimant within 30 days if the claim is not going to be paid

Summary of Differences of Dwelling Program: The basic form DP-1 covers limited n____ p_____ and l___ s________ is on an actual cash value basis. The broad form DP-2 covers additional n____ p_____, broadens the "o____ coverages" provisions, and may provide for loss settlement on a r_________ cost basis. Special form DP-3 provides coverage on an "all risk" basis insuring for all risk of d_____ l___ not e_______

named perils loss settlement named perils other replacement direct loss not excluded

Boiler and Machinery coverage

Insurance which covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. (Part of Commercial Package Policy)

What is "controlled business"?

Insurance written on the agent's own interest or their family's interest or their business.

Workers Comp Insurance

Insurance, which covers an employer's obligations under Worker's Compensation laws, which make the employer responsible for, stated damages in the event of a work-related injury or illness. Worker's Compensation coverage also includes separate coverage for Employers' Liability.

Liability Insurance

Insures the individual for financial losses which arise out of the person's responsibilities to other imposed by law or contract.

All of the following are conditions commonly found in the insurance policy EXCEPT

Insuring agreement

The office of insurance regulation is responsible for all of the following insurer activities EXCEPT

Issue of securities

Which of the following best describes a misrepresentation ?

Issuing sales material with exaggerated statements about policy benefits

Explain what a MEWA cannot be?

It cannot be a single-employer plan so as to exempt it from state insurance regulation.

STEPS TO TERMINATE AN APPOINTED

the agency (carrier/sponsoring entity) must notify DFS - does not have to notify the licensing agent nor the agency

ONCE YOU ARE APPOINTED

the agency (carrier/sponsoring entity) must submit the information within 45 days to the DFS

CONSUMER PROTECTION LAWS

the following is required by?: 1. the agent must have continuing education (resident & non resident agents) 2. fingerprints 3. submission of credit/character reports 4. qualification of licensing/examination requirements 5. employees of Veteran Affairs cannot hold license as a live/health agent 6. employees of armed forces cannot sell insurance products to lower ranked (life/health agents) 7. the code of ethics for life insurance agents 8. life agents family members cannot be a beneficiary of a life policy sold to any customer (other than a family members) 9. violation of any other designated "consumer protection" law by the CFO

MYSTERIOUS DISAPPEARANCE

the un-explainable vanishing of property

The HO-3 form has a long list of exclusions in addion to the general exlusions listed under Coverage A and Coverage B: 1) t____ from a dwelling under construction is excluded; and 2) w___ and t___, rust, m___, r__, smog, industrial smoke and settling are excluded. HO-3 provides broader coverage than HO-2

theft wear and tear mold rot

APPARENT AUTHORITY

third party believed you had the right

The standard Professional Liability Insurance forms are available on both ____ and ____ coverage bases.

Occurrence; Claims-made.

The mobile home endorsement alters the homeowners policy to cover a mobile-home and other structures on land

Owned or leased by the resident of the mobile-home

The mobile home endorsement altera the HO policy to cover a mobile home and other structures on land

Owned or leased by the resident of the mobilehome

Which form covers the operation of independent contractors?

Owners and Contractors Protective Liability Form.

What is the major difference between a stock company and a mutual company?

Ownership

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT

Physical damage

Under a Commercial General Liability policy, what is the definitions of Bodily Injury?

Physical harm and includes sickness or disease or resulting death. Does not include harm to reputation.

Direct vs. Indirect

Physical harm to tangible property vs. Economic loss as a result of direct loss

Hazards may be classified as

Physical, moral, morale

C

T & L Enterprises ships ceramic tile in cartons on the deck of a commercial ship from the manufacturer in Spain to their distribution plant in Ft. Lauderdale. During a shipment, the ship starts to sink. Heavy barrels of oil are jettisoned by the master of the ship to keep the ship from sinking. Which clause would cover T & L Enterprises for their contribution to the loss of the barrels of oil? Choose one answer. a. Free of Particular Average clause b. Sue & Labor clause c. General Average clause d. Running Down clause

True or False: Florida law requires that Catastrophic Ground Cover Collapse be added to all Dwelling Policies

TRUE

How can "Union Plans" be the exception to the MEWA definition?

The U.S. Department of Labor must make an express finding that the collective bargaining agreements between that union and the employers are bona fide.

A

The claims-made form provides coverage for any claim where the claim is made after a 'retroactive date': Choose one answer. a. All of the answers are correct b. Normally the retroactive date is the same date at the effective date of the first claims-made policy issued for the insured c. If the policy has no retroactive date, the insurer would be providing coverage for any claim made during the policy period regardless of when the claim occurred d. The retroactive date is a separate date stated on the claims-made declarations of the policy

B

The commercial property policy's replacement cost option requires a coinsurance limit of what percentage? Choose one answer. a. 50% b. 80% c. 90% d. 100%

C

The homeowner's policy Section II personal liability section offers an optional coverage known as 'personal injury liability' which covers which of the following perils? Choose one answer. a. Wrongful entry b. Malicious prosecution c. All of the answers are correct d. False arrest

D

The homeowner's program specifically states all of the following are eligible risks for the program except? Choose one answer. a. A unit owners contents in a condominium b. A single family home with an incidental office c. Tenant's contents in a 10 family 7 story dwelling d. A 1-4 family dwelling where the owner is not an occupant

In a group policy, who is issued a certificate of insurance?

The individuals covered under the insurance contract

According to the standard WC and employee liability policy form, a state should be listed in part three- other states insurance of the WC and employers liability policy when

The insured expects to extend operations to that state

C

The insured has Crime Coverage - Employee Theft - in the amount of $100,000 on a Blanket Form. Three employees working in collusion manage to hide $400,000 in money, securities, and other property in some old storage boxes. A fourth employee carried the boxes by truck to a storage warehouse and helps the first three employees unload and steal the loot. The insurer`s position will be: Choose one answer. a. Denies claim b. Pays entire claim of $500,000. c. Pays $100,000 since this is the limit per loss regardless of the number of employees involved d. Pays $300,000. - $100,000 each for three employees involved in actual theft

C. The carrier must renew the policy to a certain age (usually 65); also the carrier reserves the right to increase premiums in certain underwriting classes

The insured has a "Guaranteed Renewable" major medical policy. This means: A. The carrier cannot cancel coverage, but can require a new application each year B. The carrier cannot refuse to renew, even if the premium is not paid C. The carrier must renew the policy to a certain age (usually 65); also the carrier reserves the right to increase premiums in certain underwriting classes D. The carrier must renew the policy under all circumstances

B

The insured has a "Guaranteed Renewable" major medical policy. This means: Choose one answer. a. The carrier cannot cancel coverage, but can require a new application each year b. The carrier must renew the policy to a certain age (usually 65); also the carrier reserves the right to increase premiums in certain underwriting classes c. The carrier cannot refuse to renew, even if the premium is not paid d. The carrier must renew the policy under all circumstances

A. The claim is covered by the carrier at the time of the incident since the incident was reported during the policy period and the claim was made within five years of expiration of the claims made policy

The insured has a Commercial General Liability policy written on a Claims Made basis. During the policy term an incident occurred and was reported to the agent. No claim was made until two years after expiration of the policy and after coverage had been renewed by another insurer. Which of the following describes how the insurer will respond? A. The claim is covered by the carrier at the time of the incident since the incident was reported during the policy period and the claim was made within five years of expiration of the claims made policy B. The claim will be denied because the claim was not presented during the policy period C. The claim will be denied because the Statute of Limitations has expired D. The claim will be paid by the current insurance company

Under the Building and Personal Property Coverage form, how much is Increased Cost of Construction limited to?

The lesser of either 5% of the limit of insurance, or $10,000.

Under the Building and Personal Property Coverage form, what is the limit for Non-Owned Detached Trailers?

The limit of insurance is $5,000 and can be increased.

Who is insured when the insured's legal status is an 'LLC'?

The members and managers are insured in their status as such.

What is the basic limit for Part C?

The minimum basic limit is $500,000.

Preservation of property

This is a Property insurance coverage, sometimes known as a removal, which provides coverage for property that has been removed from the premises following a covered loss.

Gramm Leach Bliley Act

This overrode the Glass Steagal Act - this allowed insurance companies , banks, and other financial institutions to merge legally. As a result, any one company and eat in multiple areas of the financial markets including insurance, investment banking, and savings, and mortgages.

What garage coverage form is used for?

To insure those in the business on selling, servicing, repairing, parking or storing autos

What is considered "casual labor?"

Work to be completed in 10 days or less for less than $500, and not in the course of normal business.

C

Worker's Compensation will pay benefits for which of the following? Choose one answer. a. Injury due to illegal drug use b. Injury due to intoxication c. Refusal to use required safety devices d. Intentional self-injury --...

D

XYZ, Inc. holds their normal July 4th picnic for employees. XYZ furnishes wine and beer at the picnic. One of XYZ's employee`s trips and falls at the picnic. Is XYZ covered under their CGL Policy? Choose one answer. a. None of the answers are correct b. XYZ has coverage under the CGL c. XYZ has coverage under the CGL as liquor liability is only excluded if the insured is in the business of manufacturing, distributing, selling, servicing or furnishing alcoholic beverages d. XYZ has no coverage under the CGL policy, which excludes employee injuries

Under the Farm Property Coverage form, what does 'Coverage D: Loss of Use' include?

a) Additional living expenses; b) Fair rental value.

Excess over other Insurance (Other Insurance)

all other insurance must be exhausted before the policy will pay

MAXIMUM THE AGENT/AGENCY CAN CHARGE FOR FINANCING A POLICY IS?:

$3.00 per month $36.00 per year

D- $5,000 in receipts in any 12 month period

133. Farm liability excludes custom farming except for: A- $1,000 in receipts in any 6 month period B- $1,000 in receipts in any 12 month period C- $2,000 in receipts in any 6 month period D- $5,000 in receipts in any 12 month period

A- Animal liability coverage

14. All of the following coverages are available in the 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- Driver Other Car Coverage

160. An endorsement to the BAP in which named persons are covered for use of autos they do not own, is called: A- Driver Other Car Coverage B- Drive Away Collision C- Named Nonowner D- Non-ownership Liability

B- $250

186. Under Blanket P.A.F. on coins and stamps the maximum paid per coin or stamp is: A- $1,000 B- $250 C- $500 D- $10,000

What is the deductible of a personal liability umbrella policy called

The ( SIR )Self-insured retention is an initial for a partial of a loss the insured pays before the umbrella pays if no other policy covers the loss.

D

The CGL policy is written with several basic limits, which state the maximum the insurer will pay in the event of a loss. What are these limits? Choose one answer. a. A basic limit of $100,000 applies to each occurrence for bodily injury and property damage b. A basic limit of $200,000 applies to the general aggregate limit c. A separate products-completed operations aggregate limit with a basic limit of $200,000 states the maximum the insurer will pay during the policy period for claims involving products or completed operations d. All of the answers are correct

B

The CPP is thought to be advantageous to both the insured and insurer because: Choose one answer. a. Premium savings often result b. All of the answers are correct c. There are fewer policies with which to deal d. The chance of coverage gaps or overlapping coverage is reduced

D

Describe "arising out of" employment. Choose one answer. a. All of the answers are correct b. The accident occurred at the job site c. The accident occurred while the person was working d. The work performed is the major contributing cause of the injury or death --...

Section II has four (4) "Additional Coverages": 2) F____ A__ Expenses: reimburses the insured for such expenses incurred for providing f____ a__ at the time of an accident

First Aid

FAJUA

Florida Auto Joint Underwriting - state regulated of last resort auto policies. It is made up of all the auto insures in Florida, whoa re responsible for claims payment in proportion to the amount of premium they write in the state. Generally serves high risk drivers.

G.I. - Symbol 25

G.I. - Owned autos subject to No-Fault/PIP only. Automatic coverage.

HO-3 provides

Open peril coverage on the dwellings and broad form coverage on personal property

Rental reimbursement is only available if the policy includes which coverages?

Other than collision coverage

C

Other than, commercial general liability, what other forms of liability insurance are available? Choose one answer. a. Liquor Liability Coverage b. Pollution Liability Coverage and Pollution Liability c. All of the answers are correct d. Owners and Contractors Protective Liability

REGULATED BY THE SATE

PEO & MEWA

All of the following are consider parts of the policy structure EXCEPT?

Provisions

Deductibles

Raise it, you lower the premium.

Chief financial officer (CFO)

The head of the department of financial services

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnity the insured for specific losses in exchange for a premium?

The insurance contract

Which of the following is an agreement between an insured and insurer, where the insurer agrees to indemnity the insured for specific losses in exchange for a premium?

The insurance contract

D

The insured carries Collision and Other than Collision coverage under a Personal Automobile policy. The Other than Collision deductible is $100 and the Collision deductible is $100. The windshield breakage repair cost was $170. The insurer will pay: Choose one answer. a. $0 (zero) b. $70 c. $250 d. $170

Which Of the following losses would be covered under the PD liability coverage of a PAP?

The insured damages a rented garage when he failed to stop in time

Conditions

The part of the policy which sets forth the rule of conduct, duties and obligations of the parties

Who is insured when the insured's legal status is a 'Partnership or Joint Venture'?

The partners, members and their spouses are insureds as to the conduct of the partnership or joint venture business.

What is the standard deductible under Part D?

The standard deductible is $500.

Concealment

The withholding of a material fact from the insurance company. May void the policy.

Indemnitor Surety Principal

The_______________ reimburses the _______________ if the_______________________ fails to preform

D

There is generally a waiting period before payments begin under a Disability Policy and then monthly benefits are paid for a specified period of time. The waiting period may be: Choose one answer. a. 10 days b. 20 days c. 45 days d. As little as 7 days, and as long as one year

Which of the following is correct regarding a small business boiler and machinery forms?

There is no coinsurance

Why is a PEO-sponsored health plan not exempt from state insurance regulation under ERISA?

There is no true employer/employee relationship between the employee and the PEO, and Florida Statute (Section 468.529(1)) prohibits PEOs from sponsoring self-insured health plans.

If an agent is in military, which of the following is true?

The agent cannot sell a policy to another active military person

D

Which coverage continuation provision states the insurer cannot cancel the policy, agrees to renew the policy, at the option of the insured, to a stated age, and agrees that the premium rates will not be increased? Choose one answer. a. Guaranteed Renewable b. Conditionally Renewable c. Optionally Renewable d. Non-cancelable

C

Which of the following have liability coverage under the PAP, when the named individual is driving a borrowed private passenger vehicle while performing an errand for his/her employer? Choose one answer. a. None of the answers are correct b. The named individual's employer c. Both answers are correct d. The owner of the vehicle

D

Which of the following items are listed in the general exclusions for homeowner's property section I? Choose one answer. a. Flood from rising water b. Backing up of sewers and drains c. Intentional acts of the insured d. All of the answers are correct

A

Which of the following items will the dwelling fire policy's declaration page identify? Choose one answer. a. All of the answers are correct b. Insured and insured location c. Policy period and policy number d. Limits and premiums

A

Which of the following perils cannot be covered under the Basic Cause of Loss form (DP1)? Choose one answer. a. Falling objects b. Vandalism c. Fire d. Catastrophic ground cover collapse

B

Worker's Compensation is regulated in Florida by the Division of Worker's Compensation of the: Choose one answer. a. Department of Highway safety and Motor Vehicles b. Department of Financial Services c. Department of Labor and Employment Security d. Public Service Commission --...

AGREED VALUE POLICY

Written with property insurance policies. It waives the Coinsurance clause and requires the insured to cary insurance equal to at least 80% of a signed statement of values filed with the company.

COMPANY TYPES / OWNED BY

MUTUAL: policyholders STOCK: stockholders

Which of the following would be covered under the broad form DP-2 policy's falling object peril?

Interior building damage if the exterior was damage first

What does the phrase "to which this insurance applies" mean?

Means that coverage is not provided for any and all liabilities. It will be limited by exclusions and other provisions.

What is the definition of "work"?

Means work or operations performed by the insured or on the insured's behalf and materials or equipment furnished in connection with the work.

Pure Risk

Only the possibility of a loss. For ex: owning something with the possibility that it may be stolen or damaged. Pure risk is the type that is insurable.

Who can an agent share commissions with?

Only with other agents appointed and licensed to write the same kind or kinds of insurance.

Casualty Insurance

"Liability", insurance other than life and health. Payment is made on behalf of another.

Covered items: The HO-3 provides "a__ r___" coverage for Coverages A & B and n____ p_____ coverage for Coverage C; the n_____ p_____ are the same as those listed for HO-2.

"all risks" named perils

PEO (Proffesional Employer Organizaiton) IS RESPONSIBLE FOR

1. W/C 2. unemployment insurance 3. health insurance 4. administrative duties 5. payroll / taxes 6. evaluation of employee performance/discipline 7. determining compensation

DFS HAS 14 DIFFERENT DIVISION

1. accounting and auditing 2. fire marshal 3. risk management 4. treasury 5. ins fraud 6. rehabilitation & liquidation 7. ins agent & agency services 8. W/C administration 9. Legal services 10. information system 11. off of ins consumers advocate 12. funeral, cemetery & consumer services 13. public asst fraud 14. consumer services *** concentrates more on agents and agencies #7

Bases for insurer avoidance

1. insured causing damage to their own property 2. insured misrepresent or conceal info

d. Noncancellable

131. When the health insurer is required to renew the policy to a stated age but may increase the premium in the underwriting class in which insured is placed, it is called: a. Optionally Renewable b. Conditionally Renewable c. Guaranteed Renewable d. Noncancellable

THE PRIMARY RESPONSIBILITIES OF THE OIR (OFFICE OF INSURANCE REGULATIONS) IS?:

1. issuing certificate of authority 2. licensing 3. policy forms 4. market conditions 5. claims 6. admitted ins companies / rates (approvals) 7. solvency 8. viatical statements 9. premium financing 10. admin supervision *** concentrates more on the insurance companies *** does not write the rates, the insurance company does and the ____ has to approve the increase

WITHIN 30 DAYS THE DFS MOST BE NOTIFIED OF THE FOLLOWING:

1. name change 2. address change 3. email change 4. telephone number change

"PERSONAL AUTO POLICY"

442 limited costumer service representative could only sell

Policy

An insurance contract.

C.A. - Symbol 1

C.A. - Any auto for liability only

C.A. - Symbol 8

C.A. - Hired autos only. Liability and PD only. Covers autos only the named insured hires, rents, leases, or borrows. Excludes auto of employees and members of their family.

C.A. - Symbol 19

C.A. - Mobile equipment subject to compulsory or financial responsibility or other motor vehicle law only.

What is section B of the Boiler and Machinery Coverage form?

Exclusions

What is vicarious liability?

Held liable for the actions of employees, agents, or subcontractors.

Who is responsible for filling out a notice of claim form?

Insured

Which of the following liability is usually written in a claims- made form

Professional liability insurance

Insurance is the transfer of

Risk

Blanket Insurance

When a single amount is given to two or more items

Can an insurer cancel a property policy for nonpayment of premium?

Yes, 10 days written notice and reason of cancellation given to the insured

THEFT

any unlawful taking of any property

THE CARRIER

could terminate an appointment

HAZARD

introduces or increases the chance of loss from peril

FLORIDA GUARANTEE FUND

maintained by the OIR to pay unpaid claims and return unearned premium on those insurance companies that gone insolvent

Property and liability insurance policies cover _______, not property or opertations

persons

For Insurance to Respond

to or on behalf of someone insurable interest must exist at the time the covered event takes place

LTC policies are written as

Guaranteed renewable

Marine Insurance

A form of insurance primarily designed to cover property in transport over land or sea

How long can an agent's license go without having at least 1 appointment?

48 Months.

Arbitration clause

Allows disputes to be settled out of court by a neutral party.

What is section F of the Boiler and Machinery Coverage form?

Definitions

Which is not found under the CGL dec page?

Exclusions

What is the major exclusion under liability commercial auto?

War

IMPLIED AUTHORITY

assumed you had the right

Temporary insurance is effected through ____________

binders

AGENT REPRESENTS

the insurance company

SLIDING

"ancillary" / subordinate / adding without explaining what its for example: requiring auto club on an auto policy

What min. Coverages does FL law require all personal auto policy owners to carry?

$10,000 PIP & PD liability

What is the basic Fire Damage limit?

$100,000

Personal Liability: The minimum limits available are $_____ for Liability, $___ for Medical Payments, and $____ Damage to Property of Others. Similar to the homeowner's policy there is a $10,000 cap on statutorily imposed vicarious parental liability. There is no build-in coverage for loss assessments imposed by condominium or homeowners associations although coverage can be added by e___________.

$100,000 $1,000 $1,000 endorsements

What is the basic general aggregate limit for all coverage except for 'that coverage' that has its own aggregate limit?

$200,000 annually

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor cost endorsement?

$25

The standard deductible in the dwelling program is $___ for all perils other than hurricane. For hurricane, a minimum deductible of $500 applies with maximum deductibles of _ percent, _ percent, or __ percent of the policy limits. The deductible applies per location and for each separate dwelling premise. The insured selects their limit of coverage. However, the minimum limit for coverage A is $______ for DP-2 and $_____ for DP-3; there is no limit for coverage A for DP-1. If coverage A is not included, the minimum limit for coverage C under either DP-2 or DP-3 is $4,000.

$500 2%, 5%, 10% $12,000 $15,000

An insured has a personal auto policy with both comprehensive and collision coverage. His car is stolen and recovered 5 days later. If the insured claims transpo. expenses of $20 per da, how much will policy pay?

$60 the policy will pay $20 per day after 48 hrs, not to exceed 30 days in total.

An agent has been convicted of a crime punishable by a 1 year imprisonment. Within how many days must agent notify the department of insurance?

30 days

D- $10,000 excess over limit of policy

03. The amount of coverage for debris removal in a Building & Personal Property Coverage Form is: A- The difference between the loss and the coverage limit. B- $1,000 C- $5,000 D- $10,000 excess over limit of policy

What is the maximum limits of liability that is available under FL AJUA

100/300/50

Insurance Forms Available for Flood: Dwelling Form: This form applies to policies written on 1to 4 family dwellings. Up to __ percent of the dwelling limit may apply to detached garages or carports; this is not an additional amount of insurance. Other separate structures (garage apartments, utility buildings, storage sheds) must be insured under a separate policy. Preferred Risk Policy: This form is similar to the Dwelling Form. The form may only be used to cover 1-4 family dwellings located in flood zones _, _ and _. The form (is or is not) available under the Emergency Program and is subject to specific coverage limit combinations. General Property Form: This form applies to all buildings and contents not eligible under the d________ form or the c____________ policy. Residential Condominium Building Association Policy Form (RCBAP):This form applies for any condominium association with one or more residential units. At least __ percent of the total floor area of the condominium must be residential, and the building must be located in a R_____ P______ C_________.

10 B, C, and X is not dwelling condominium 75 Regular Program Community

B- 30 days

10. 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- $2,850

100. Melvin has a PAP with Part D - Damage to Your Auto deductible of $250 for Collision and $100 for Other Than Collision. If Melvin runs into a large cow and has $2,950 damage to his auto, his Part D Coverage will pay: A- $2,950 B- $2,850 C- $2,700 D- $2,600

D) Twisting

16.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

HURRICANE

2%, 5% or 10% of coverage A - (a % of the ACV of the property in certain Coastal areas)

B - binder

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

For cancellation of a commercial property during the first 90 days, for a reason other than non payment or premium, the insurer must give the insured advance written notice of at least how many days?

20

Within how many days must a property insurer pay on a claim after the settlement is reached?

20 days

Which is correct under FL law for cancellation of CGL policies?

20 days in advance written notice during the first 90 days

B: Concealment

3. 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

What does the CGL basic extended reporting period (BERP) provide?

60 days to report occurrence after retroactive date and before expiration date

B- Barratry

70. Fraud by the crew and master with the intention of receiving gain at the owners expense is called: A- An Average B- Barratry C- Jettison D- Inchmaree

A

A Personal Articles Floater in the Inland Marine program excludes all the following except? Choose one answer. a. Mysterious Disappearance b. Insects and vermin c. Inherent Vice d. Wear and Tear

Customs Bond

A Surety bond that may be required of those associated with import or export activities, to guarantee that the required customs will be collected, reported and paid.

Which of the following would be covered by the broad theft endorsement on a DP?

A camera the insured has with him on vacation

C

A carrier providing shipping for others would need what kind of a policy? Choose one answer. a. All of the answers are correct b. Annual transit policy c. Motor truck cargo policy d. Trip transit policy

A

A company shipping numerous shipments by independent carrier during the year would need what kind of policy? Choose one answer. a. Annual transit policy b. All of the answers are correct c. Motor truck cargo policy d. Trip transit policy

C

A company shipping two shipments by independent carrier during the year would need what type of policy? Choose one answer. a. Annual transit policy b. All of the answers are correct c. Trip transit policy d. Motor truck cargo policy

D

A customer representative's powers include: Choose one answer. a. A customer representative may not engage in transacting insurance directly with customers b. A customer representative's license may cover life insurance or any kind of insurance for which the appointing agent or appointing agency is not licensed c. A customer representative may engage in transacting insurance outside the office of his or her appointing agent or agency d. A customer representative must be a salaried employee of the agent or agency; his compensation cannot include commissions and cannot be primarily based on the production of applications, insurance, or premium

An automobile that is owned by a nontraditional household, not consisting of a husband and wife, may be insured under a personal auto policy if

A joint ownership coverage endorsement is added

A. Bid Bond, Performance Bond, Payment Bond and Maintenance Bond

A man wanted to have a building erected at a competitive price, completed within a specified time, with workmanship guarantee for one year. Which bonds are required? Select one: A. Bid Bond, Performance Bond, Payment Bond and Maintenance Bond B. Bid Bond, Payment Bond, Supply Bond, and Permit Bond C. Bid Bond, Performance Bond, Payment Bond, and Supply Bond D. Performance Bond only

C

A man wanted to have a building erected at a competitive price, completed within a specified time, with workmanship guarantee for one year. Which bonds are required? Choose one answer. a. Bid Bond, Payment Bond, Supply Bond, and Permit Bond b. Performance Bond only c. Bid Bond, Performance Bond, Payment Bond, and Maintenance Bond d. Bid Bond, Performance Bond, Payment Bond, and Supply Bond

A tornado that destroys property would be an example of which of the following? A pure risk A loss A physical hazard A peril

A peril

Utmost Good Faith

A principle of insurance which states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith.

Waiting or elimination period

A provision in health insurance which states a period of time between issuance and acceptance before sickness benefits begins

Coverage F- MP under a HO policy would cover

A resident employee who is injured on the job

A

A selected group of hospitals and medical practitioners in a given area who have joined together in an effort to reduce medical costs are commonly known as? Choose one answer. a. A PPO b. A HMO c. Disability income insurance d. Major medical insurance

Pure risk

A situation in which a person can only lose are have no change represents

Insurance Contract/Policy

A written agreement where one compensates another to a certain limit set by contingencies

Proof of loss

A written, signed, and sworn-to statement by the insured about a loss

How is the disability class 'Temporary Partial' compensated?

According to a "wage loss" formula, calculated weekly, up to 104 weeks of impaired earnings. The benefit may not exceed an amount equal to 66-2/3%.

C. Parcel Post

All of the following are covered by Mail Coverage (Inland Marine Form) except: A. Registered Mail B. First Class Mail C. Parcel Post D. Express Mail

D

All of the following are covered by Mail Coverage (Inland Marine Form) except: Choose one answer. a. Express Mail b. First Class Mail c. Registered Mail d. Parcel Post

B. The Liberalization Clause

All of the following serve to enforce the Principle of Indemnity except: Select one: A. The Insurable interest rule B. The Liberalization Clause C. Subrogation D. Actual Cash Value as a measure of a loss

What does the Businessowners policies' optional coverage, Outdoor signs do?

All risk coverage is available for any selected limit on all exterior signs.

What types of structures are elegible for coverage in the citizens property insurance corporation

All types of structures

What is the minimum and maximum payment for disability benefits?

Amount paid is the minimum of $20 a week, to a maximum of the "statewide average weekly wage"

B

An Alien Insurer is: Choose one answer. a. An insurance company formed in the Bahamas b. An insurer formed in a country other than the United States c. An insurer formed under Florida laws, but which may provide insurance in other states d. An insurer formed under the laws of any state, other than Florida

A

An Authorized Insurer is: Choose one answer. a. An insurance company who has received a certificate of authority from the State of Florida b. An insurer formed in a country other than the United States c. All of the answers are correct d. An insurer formed under the laws of any state, other than Florida

What is the difference between authorized and unauthorized?

An authorized insurer is certified by the state to transact insurance in Florida; unauthorized is not.

A. Other than Collision

An insured whose legally parked automobile is damaged by a mudslide may collect for damages under which of the following coverages A. Other than Collision B. Collision C. Property Damage Liability D. No coverage

A

An insured whose legally parked automobile is damaged by a mudslide may collect for damages under which of the following coverages? Choose one answer. a. Other than Collision b. No coverage c. Property Damage Liability d. Collision

What is a Foreign insurer?

An insurer formed under the laws of any state, district, territory, or comonweath of the United States other than this state.

What is an Alien insurer?

An insurer other than a domestic or foreign insurer. IE- formed in another country, etc.

What is a foreign insurance?

An insurer with a home office in another state

Consequential loss

Another term used for indirect loss

Appraisal Clause

Attempts to resolve disputes over value of property.

C

Bob wants to increase the $10,000 per person maximum personal injury protection benefit on his PAP; what endorsement should he add to the PAP? Choose one answer. a. Extended Personal Injury Protection b. Named Non-Owner Coverage c. Additional Personal Injury Protection d. All of the answers are correct

B

Bob, a carpenter of XYZ drives an ABC dealership vehicle out of the car lot for a test. Bob has an at-fault accident. If ABC carries $1,000,000 Bodily Injury/Property Damage coverage, and Bob carries no insurance, how much coverage is applicable for Bob? Choose one answer. a. $1,000,000 b. $10,000/$20,000 Bodily Injury and $10,000 Property Damage c. $500,000

B. No coverage

Bob, an accountant of XYZ, drives his own car to the bank to make a deposit for XYZ. Bob has an at-fault accident. If XYZ carries $1,000,000 Bodily Injury/Property Damage coverage with a Symbol 2 for covered autos, and Bob carries no insurance, how much coverage is applicable for XYZ? A. $1,000,000 B. No coverage C. $500,000 D. $10,000/$20,000 Bodily Injury and $10,000 Property Damage

Lender Interests

Both the mortgagor and mortgagee have insurable interests in the mortgaged property.

B

Building materials and equipment to be installed and business personal property is covered within how many feet of the building? Choose one answer. a. 1,000 feet b. 100 feet c. 250 feet d. 500 feet

Citizens

Citizens Property Insurance Corp (CPIC) - stated own insurer of last resort property insurance including HO, dwelling, and commercial property. Applicants must meet 15% rule as an eligibility requirement.

What organization offers coverage on properties in areas of FL deemed especially susceptible to windstorm damages?

Citizens property insurance corporation

Controlled Lines

Classes of Inland Marine coverage for which standardized forms have been prepared as part of the Commercial Package Policy. Contrast uncontrolled lines.

Uncontrolled Lines

Commercial Inland Marine coverages, which are not standardized.

Where do we find coverage for semi trailers?

Commercial auto

Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no matter that several separately identifiable employees were involved in a single loss?

Commercial blanket position

D

Commercial property valuations are always actual cash value except replacement cost settlement is offered if the building loss is equal to or less than which limit? Choose one answer. a. $1,000. b. $5,000. c. $10,000. d. $2,500.

A producer who fails to segregate premium monies from his ow. Personal funds is quilt of

Commingling

What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent?

Comparative negligence

Which of the following is a statutory defense?

Comparative negligence

In which of the following sections of a commercial auto policy will you find specific info about the policy period?

Conditions

What is section E of the Boiler and Machinery Coverage form?

Conditions

Performance Bonds

Contract bonds, which guarantee that jobs will be competed by the contractor according to contract specifications.

An agent's client needs add'l insurance with the agent's one insurer cannot provide. The agent has to solicit add'l coverage from another authorize insurer. This coverage is known as

Controlled business

How is a Workers' Compensation policy rated?

Coverage is rated by classifying the risk according to its operations, with a rate charged for each $100 of payroll to employees.

Which of the following is covered under the Mail floater of a commercial inland marine policy ONLY if is sent by registered mail?

Currency and unsolved travelers checks

In what areas is coverage available through the Citizens Property Insurance Corporation?

Defined areas

Domestic

Domiciled in Florida.

What does ERISA deal with?

Employee health and welfare benefit plans.

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

Which of the following claims would be included under the DP?

Fire damage to the insured's rowboat stored in the attached garage

Accounts Receivable coverage forms

Form include coverage for extra collection expense and interest loans to a stay in business when collections were impaired

G.I. - Symbol 21

G.I. - Any auto for liability only

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

What is the definition of employment?

Includes all governmental employments regardless of the number of employees, private employments with four or more employees, and private employments in the construction industry with one or more employees.

What does the Businessowners policies' optional coverage, Money and Securities do?

Insures against theft, disappearance or destruction of money and securities. Separate coverage limits are applicable to both on- and off-premises losses.

B

Is No-Fault coverage included in the policy sections of the Personal Auto Policy? Choose one answer. a. The no fault coverage is only added if requested by the insured b. No, only by adding to the policy as an endorsement. c. The no fault coverage is only added if required by law d. Yes, no-fault coverage is automatically included in all Florida personal auto policies.

An insurance producer Fails to obtain automobile insurance for client after agreeing to do so. The client is involved in an auto accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5k . Which statement regarding the producer's errors and omissions liability policy is true?

It will provide coverage because the damage to the client resulted from the producer's negligence

A

Jane owns a van with a small refrigerator and stove for camping; what endorsement should she add to the PAP? Choose one answer. a. Customizing Equipment Coverage b. Miscellaneous Type Vehicle Coverage c. Increased Limits Transportation Expenses Coverage d. Covered Property Coverage

The provision which prevents the insured from bringing a lawsuit against the company for at least 60 days after proof of loss is know as

Legal actions

For a contract to be enforceable by law, the purpose of the contract must be

Legal and not against public policy

B

Legal liability provides coverage for the insured against damage to property? Choose one answer. a. In the care, custody & control of the insured b. All of the answers are correct c. Not owned by the insured d. Customer's goods

The reduction, decrease, or disappearance of value of the person or property insured in a policy by a peril insured against is known as

Loss

Which of the following coverages in dwelling and HO policies is for indirect losses?

Loss of use

What is the formula for the "Need for Adequate Insurance" clause?

Loss x Limit divided by value

What are some additional coverages covered by an umbrella policy

May include coverages such as: non-owned aircraft or watercraft; property in care, custody and control; personal injury; worldwide premises liability; limited pollution; professional; and product recall.

Define "accident" as related to a Boiler and Machinery policy?

Means a sudden and accidental breakdown of the object or a part of the object that, at the time of breakdown, manifests itself by physical damage to the object that necessitates replacement or repair.

How is "product" defined?

Means any goods or products manufactured, sold, distributed, etc. by 1) Insured; 2) Others trading under the insured's name; 3) Persons or organizations whose business or assets the insured has acquired.

Binder

Method of having insurance take effect immediately/temporarily. When a policy is bound, it might be set to take effect at a later date. Five days cancellation notice is needed when binder exceeds 60 days, which it usually doesn't because it's replaced with a policy

Name 5 unfair methods of competition and unfair acts?

Misrepresentation, false information and advertising, defamation, boycott, false statement and entries.

All property policies exclude flood coverage. The federal government though N________ F_____ I________ P________ provides flood coverage.

National Flood Insurance Program (NFIP)

C

Monthly Limit of Indemnity under the Business Income Coverage form limits recovery to which fraction options during each consecutive 30 days during the period of restoration? Choose one answer. a. 1/3 b. 1/4 c. All of the answers are correct d. 1/6

What qualifies as an opening protection that will receive mitigation credits?

Must be both tested and approved in accordance with the Florida Building Code or Miami-Dade County Building Code.

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchased the policy?

Mutual

What is the purpose of the extra expense cover form?

Pays extraordinary expense during a period of restoration

The Commercial General Liability policy is _____ insurance. If another policy applies and it states that it is also primary, then the policies _________ with the claims.

Primary; shares.

Who would participate in a write your own (WYO) flood insurance program?

Private insurers that wish to write and service National Flood Insurance policies on a no risk- bearing basis

Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to

Property and liability losses

Under a Businessowners policy, what does the Business Income and Extra Expense cover?

Provides insurance for loss of income and necessary extra expense due to a peril insured against.

What is the basic extended reporting period?

Provides that claims will be considered to have been made on the last day of the policy period, and thus will be eligible for coverage.

What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society?

Punitive

What risks are the Small Business Boiler and Machinery form and broad form limited to?

Risks must have an 80% equipment replacement value of not over $5 Million; and the required property damage limit is 80% of building replacement value. - Although there are some limitations as to the types of business and insurable objects.

Indemnity

Rule that one should not profit from the response provided by the policy.

Liability

Rules of law dictate that a person must pay for damages done to another.

Employee fidelity may be written in all of the following ways EXCEPT

Sales

Which of the followings is covered under the physical damage coverage of a personal auto policy?

Sound reproduction equipment permanently installed in the covered auto

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages

Special

Payment for medical expenses, loss wages, funeral expenses or the cost to repair or replace damaged property are known as what type of compensatory damages?

Special

What are the two types of compensatory damages?

Special and general

In which of the following examples would a contract between an insurer and prospective insured be legal?

The applicant has a prior felony conviction

Which of the following would NOT be considered a source of insurability info by the insurer?

The applicant's marital status

All of the following statements concerning coinsurance are true EXCEPT

The coinsurance formula will also applied to total losses

All of the following statements concerning coinsurance are true EXCEPT

The coinsurance formula will also be applied to TL

In a group health policy, who is the policy owner?

The employer

The members of a limited liability company are insureds under a business-owner policy BOP if

The limited liability company is designated as the named insured

Burglary

The taking of property by a person unlawfully entering or leaving the premises evidenced by visible signs of forcible entry or exit

A

Under a Personal Articles Floater, a pair of antique salt and pepper shakers is insured for $1,000. When one of the shakers is damaged by a covered peril, the remaining shaker is worth only $100. The insurer will pay: Choose one answer. a. $900 b. $200 c. $1,000 d. $500

Where I find the coverage for derailment sinking ?

Under section III physical damage -specified causes of loss

D

Under the Commercial Property Policy a vacancy limitation is triggered if a location is vacant how many consecutive days? Choose one answer. a. 30 days b. 20 days c. 45 days d. None of these answers are correct

Policy Territory

United States, ,its possessions, and Canada

A

What is covered in the additional coverage - Collapse in the causes of loss - broad form? Choose one answer. a. All of the answers are correct b. The loss must be caused by a specified cause of loss c. Loss during construction, remodeling or renovation if caused by use of defective materials or methods is covered d. Loss to outdoor and exterior property is excluded

C

What is covered in the additional coverage - Limited Coverage for Fungus, Wet Rot, and Dry Rot? Choose one answer. a. $15,000 annual aggregate limit for all causes of loss other than fire or lightning b. Covers direct damage including the cost of removal, tearing out and replacing any part of the building to access the damage and the cost of testing after removal c. All of the answers are correct d. Does not increase the amount of insurance

B

What is included in the additional coverage for debris removal? Choose one answer. a. An additional $5,000 is provided if the debris removal expense exceeds 25% b. Paid up to 25% of the amount paid for loss to the covered property plus the deductible c. Paid up to 10% of the amount paid for loss to the covered property plus the deductible d. An additional $15,000 is provided if the debris removal expense exceeds 25%

D

What is meant by the term "Department"? Choose one answer. a. The Florida Department of Insurance b. None of the answers are correct c. Both of the answers are correct d. The Florida Department of Financial Services

D

What is replacement cost coverage? Choose one answer. a. All of the answers are correct b. Is based on the insured having 90% insured value c. May only be applied to buildings d. Adjusts the loss settlement value to replacement cost without deduction for depreciation

C

What is the market source for employers who are unable to purchase worker's compensation insurance through licensed insurers? Choose one answer. a. All of the answers are correct b. Florida Automobile Joint Underwriting Association (FAJUA) c. Florida Worker's Compensation Joint Underwriting Association (FWCJUA) d. Citizens Property Insurance Corporation (Citizens)

D

What properties are eligible for wind only coverage with Citizens? Choose one answer. a. All of the answers are correct b. Those properties who cannot obtain coverage elsewhere c. All properties in Florida d. Only properties in one of the defined areas of designated counties

Is the contractor responsible for injuries to subcontractor's employees?

Yes, if the subcontractor does not carry Workers Compensation.

APPARENT AUTHORITY IS

a misrepresentation: for instance, if the insured lead the customer to believe something was a fact and did not correct the customer

PROSECUTED BY DEPT OF INS REGULATIONS

a person has 30 days to appeal

CFO / (CHIEF FINANCIAL OFFICER)

administers the laws / governing over domicile ins companies / licensing ins companies / issuing certificate of authority / monitors financial solvency of the insurers

PROHIBITED

cannot advertise any type of free insurance or provide any free insurance

Personal Article Floater: Each specific property may be covered on seperate floater forms, but the more common method is to c_____ all into a s_____ policy form, the P_______ A_______ F______.

combine single Personal Articles Floater (PAF)

A CERTIFICATE OF AUTHORITY MEANS

company is licensed by OIR (OFFICE OF INSURANCE REGULATIONS) to do business in the state ("authorized" insurance company)

SALVAGE VALUE

damage items many be retrieved, reconditioned and sold to reduce the insureds loss

INDIRECT LOSS

economic loss as a consequence of direct loss

The Dwelling Program provides personal insurance coverage for dwellings not habing more than f___ apartments or f___ family units, m_____ homes, and household personal property in any apartmetn, or cooperative or condominium used as living quarters or rented to others.

four four mobile

The additional peril of vandalism and malicious mischief (commonly known as VMM) may be added to the DP-1 form. VMM coverage excludes damage to building g____, and crime losses (except building damage caused by burglars). VMM coverage does not apply if the building was v_____ for __ or more consecutive days immediately preceding the loss.

glass vacant 60

MAJOR AREA OF UNAUTHORIZED INSURANCE

health - selling a medical plan as a health insurance

FLORIDA VALUE POLICY LAW

if a total loss - company must pay the policy limit regardless of the property value

FOREIGN

in USA - any state other than florida

Severability

insurance applies separately to each insured, as if the other insureds did not exist.

CO-INSURANCE

insured agrees to carry a certain percentage 80% - 90% or 100% of the property value DID ÷ SHOULD x LOSS = RECOVERY (DID = limit of insurance) (SHOULD = property value)

MORAL

intentional loss - conscious mental attitude of the insured

The 'Perils Insured Against' section of the DP-1 Dwelling Policy, if the Declerations page states 'fire' is covered, the form covers fire, l_______, internal e________, and Catastrophic Gound Cover Collapse.

lightning explosion

Peril

may be defined as a contingency that may cause a loss ( such as fire or windstorm)

WHAT IS MORAL

obedience to the enforceable - right vs wrong, legality of an action, truth

WHAT IS ETHICS

obedience to the unenforceable - a higher standard, loyalty, being honest, responsibility, fairness, justice, compassion

Principle of Indemnity

one should not profit from the response provided by the policy

Flood is defined by the NFIP as "the general and temporary condition of p_____ or c_______ inundation of normally dry land areas caused by 1) o________ of inland or title waters; or 2) r_____ and u_______ accumulation or run off from any source or 3) m______.

partial or complete overflow rapid and unusual mudflow

FRANCHISE DEDUCTABLE

pay the loss from dollar one if the loss equals or exceeds the stated deductible DEDUCTIBLE IS $25,000.00 LOSS $18,000. / PAYS $0 LOSS $20,000. / PAYS $0 LOSS $24,999. / PAYS $0 LOSS $28,000. / PAYS $28,000

Homeowner's program is designed for p______, n__-b______ risk. Owner-occupants of 1-4 family dwellings, r_______ who maintained residential o_______ in any kind of building, and c_________ unit owners and occupants of cooperative apartments are eligable for coverage in the homeowners porgram.

personal non-business renters occupancy condominium

A property or liability insurance policy is a (Contract Names)

personal contract, conditional contract, contract of adhesion, a contract of indemnity, and a contract that requires that the person insured have an insurable interest at the time of the insured-against contingency

DIRECT LOSS

physical harm to tangible property

Primary (Other Insurance)

policy will apply first, up to it's limits before the others apply

The exposure the personal liability policy is designed to voer is for liabilities arising from p______ r________ and p______ a________

private residences and personal activities

A single policy may be both __________ and __________ like an automobile insurance policy for example

property liability

The homeowner's package policy combines protection against loss to r______ and household p_______ p_______ with personal liability coverage.

residences personal property

What contracts are not subject to the exclusions?

see notes

SPECIFIC INSURANCE

separate limit for each building and contents or item

An increase of hazard may

suspend coverage under certain property insurance policies while the hazard is increased

BURGLARY

taking property by breaking an entering and leaving visible signs of forcible entry or exit

ROBBERY

taking the property by threatening to harm the person - gunpoint

Subrogation

the right for an insurer to pursue a third party that caused an insurance loss to the insured. The reason is to recover the amount of the claim paid to the insured for the loss.

Dwelling Program: Coverage D - Fair Rental Value: When Coverage D is included the insurer will pay for the fair rental value of the covered property if it becomes u____________ from damage by a p____ insured against. Coverage D only applies to premises rented to o______ or held for rental to o______. Coverage D pays the fair rental value until the property can be r_______ to tenantable conditions.

uninhabitable peril others others restored

1. family member employee 2. personal representative 3. business associate 4. spouse

when death, disability or military action occurs from a 220 agent - a temporary licence is issued for a maximum of 6 moths:

CEASED AND DESIST

when the CFO requires the agent to stop writing ins and he doesn't - the penalty is $50,000.00

Statutory Policy

wording is standardized through state law

The DP-2 dwelling form includes the perils covered by the DP-_ form and the following additional perils (each of which has conditions): damage by burglars; falling o______; weight of ice, or snow or sleet; accidental discharge or o_______ of water or steam found within a plumbing pipe, the air-conditioning unit, or automatic fire protective sprinkler system or from within a household appliances; sudden and accidental tearing a part, cracking, burning or bulging of a steam or hot water heating system, air-conditioning systems or automatic fire protection sprinkler system, or water heating appliance; freezing of a plumbing, heating, air-conditioning system or automatic fire protection sprinkler system or of a household appliance; an accidental damage from artificially generated electrical current; and volcanic eruption.

1 objects overflow

How many hours of continuing education are general lines agents required to complete ever year in the subject of hurricane mitigation options?

1 hour

What is the continuing education requirement for wind mitigation applicable to licensed General lines agent and customer representatives?

1 hour of continuing education every 2 years on the subject of premium discounts available on property insurance policies for various wind mitigation options - October 2012 changes this to a 5 hour requirement on various subjects

What are the 10 categories of business or property that are specifically excluded form a Businessowners policy?

1) Auto repair or service stations, dealers of autos, mobile homes or motorcycles. Parking Lots or garages; 2) Bars and pubs; 3) Condo associations other than office or residential condos; 4) Occupied buildings used in whole or in part for manufacturing or processing; 5) Business operations with one or more locations used for manufacturing, processing, or servicing; 6) Household personal property; 7) 1 or 2 family dwellings unless of the garden apartment variety where multiple units are grouped in a single area and under common ownership; 8) Place of amusement; 9) Banks, savings and loan, credit unions, and similar financial institutions; 10) Self-storage facilities with outdoor storage of any type of motorized vehicles, campers, or RVs.

Which lines of insurance are not available to include in a Commercial Package policy?

1) Aviation; 2) Surety; 3) Health; 4) Ocean Marine; 5) Workers' Compensation.

Under the Farm Property Coverage form, what does 'Coverage G: Other Farm Structures' include?

1) Barns; 2) Silos; 3) Fences; 4) Outdoor radio equipment; 5) Other farm structures.

What are some (8) major Commercial Property Coverage forms?

1) Building and Personal Property Coverage form; 2) Builders Risk Coverage form; 3) Business Income Coverage form; 4) Extra Expense Coverage form; 5) Legal Liability Coverage form; 6) Condominium Association Coverage form; 7) Condominium Commercial Unit-Owners Coverage form; 8) Leasehold Interest Coverage form

For a Trade Contractor to be eligible for for a Businessowners policy, what are the qualifications?

1) Building not over 25,000 square feet; 2) Gross sales do not exceed $3 million; 3) No more than $300,000 annual payroll; 4) No work over 3 stories; 5) Total subcontracted work cannot exceed 10%; 6) No equipment rental to others; 7) Unrelated sales cannot exceed 25% of annual gross sales.

For a Self-storage facility to be eligible for for a Businessowners policy, what are the restrictions?

1) Cannot exceed 2 stories; 2) Cannot have cold storage; 3) Cannot have storage of industrial materials, chemicals, pollutants, or waste.

A Commercial Package Policy consists of 2 or more "coverage parts." What are all the available parts?

1) Commercial Property; 2) Commercial General Liability; 3) Liquor Liability; 4) Pollution Liability; 5) Professional Liability; 6) Employment-Related Practices Liability; 7) Commercial Crime and Employee Dishonesty; 8) Commercial Inland Marine; 9) Boiler and Machinery; 10) Commercial Auto, including the BAP and Garage forms; 11) Farm, including both Property and Liability Coverage.

What are the consequences for aiding and abetting an unauthorized insurer?

1) Conviction of a third-degree felony; 2) Liability for all unpaid claims; 3) Suspension or revocation of all insurance licenses.

What are some of the exclusions under the Physicians, surgeons, and dentists form?

1) Criminal acts of the insured. 2) Liabilities as a proprietor, hospital administrator, officer, stockholder, director, trustee or governor of any health care facility or other enterprise; 3) Injuries to employees or obligations under a workers' compensation or similar law.

Name all the forms of the Commercial General Liability contract?

1) Declarations; 2) Common policy conditions; 3) Occurrence or Claims-Made form; 4) Nuclear Energy Liability Exclusion endorsement; 5) Various endorsements.

D- 104 weeks

150. Under Workers Comp, Temporary Total benefits are paid for: A- 260 weeks B- 208 weeks C- 156 weeks D- 104 weeks

A- A customer of the insured is injured when they back into the motor on the insured's 40 foot boat which he is storing in his warehouse.

151. Under a CGL which of the following injuries would not be excluded: A- A customer of the insured is injured when they back into the motor on the insured's 40 foot boat which he is storing in his warehouse. B- The insured borrows a 28 ft boat to take a business client to see the holiday water parade. They run into a dock, damaging the dock. C- The insured decides to take advantage of his waterfront location & leases a boat to use as a water taxi. The boat is in an accident where persons on another boat are injured. D- The insured is towing a boat down the highway when it comes unhinged, striking vehicles and bystanders.

D- Cost of proving amount of loss

152. Employee Theft, applies to loss of all EXCEPT: A- Money B- Securities C- Property other than money & securities D- Cost of proving amount of loss

D- Cover an individual's use of autos when he does not own an auto.

158. Named Non-Owner Coverage is used to: A- Cover for auto furnished and regularly available to the named insured. B- Cover for use of a non-owned auto in business. C- Cover for use of a non-owned auto to carry persons for fee. D- Cover an individual's use of autos when he does not own an auto.

D- $1,500

159. Under HO policies the limit on computers and cellular phone used in business is what amount when off premises: A- $250 B- $500 C- $750 D- $1,500

C- Open/Named as an option

161. What are the two Businessowners Policy forms? A- Basic/Open B- Basic/Named C- Open/Named as an option D- Broad/Named

D- Funeral expenses up to $7,500

162. Upon death of a worker, Workers Compensation pays a maximum death benefit payment of $150,000 plus: A- Funeral expenses of $15,000 B- Funeral expenses up to $10,000 C- Funeral expense of $25,000 D- Funeral expenses up to $7,500

B- Owners & Contractors Protective Form

163. The form of general liability coverage that an insured may purchase to protect against claims arising out of the operations of independent contractors is called: A- Products/Completed Operations Coverage Form B- Owners & Contractors Protective Form C- Legal Liability Coverage Form D- Vicarious Contractors Protective Form

B- Excess

164. Where a loss is covered by a Commercial Property Policy and a Crime Policy the Crime Policy will be: A- Primary B- Excess C- Pro Rata D- Equal shares

B- Replacement cost

165. To determine the value of damaged improvements and betterments under coverage in a Building and Personal Property Coverage form,requires all of the following information EXCEPT: A- Original Cost B- Replacement cost C- Time period of lease D- Date of loss

D- No coverage - excluded

166. Under P.A.F. an insured has scheduled his stamp collection. Two very rare and valuable stamps have faded so badly that their value is cut in half. Former value $10,000, new value $5,000. How paid? A- $10,000 B- $5,000 C- Must be appraised for ACV and that amount paid. D- No coverage - excluded

C- License

167. Which type of bond is required by public bodies to protect the public, guarantees compliance with law, guarantees collection of taxes? A- Public Official B- Court C- License D- Fiduciary

Forms HO-4 and HO-6 provide named perils coverage for Coverage C; the named perils are the same as those listed for HO-_

2

An insured was involved in an accident and cannot perform her current job for three years. If she could reasonably perform another

2 years

Which of the following does the term proximate cause refer to

Negligence that leads to an injury

Which of the following does the term proximate cause refer to?

Negligence that leads to an injury

B

Subject to a deductible, which of the following does 'Other Than Collision' in the PAP cover? Choose one answer. a. Damage caused when the insured over-sprays while painting his lawn furniture, getting green paint on a covered white pickup truck b. All of the answers are correct c. Damage caused when a thief crashes a covered auto into a tree d. Damage caused when the insured's horse eats the vinyl top and leather seats of a covered auto

What is the Fire Legal Liability limit?

Subject to a per occurrence limit of $50k, but may be increased to a maximum limit of $1 million at the insured's option.

Employer unable to purchase WC coverage in the voluntary market due to the "high-risk" nature of their work may eligible for coverage under FL's WC JUA if assigned to

Subplan B

The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called

Subrogation

What happens if the insured forms another business?

Such an organization becomes a named insured for 90 days, but only as to events that occur after the acquisition.

In an equipment breakdown policy "accident" is define as the

Sudden and accidental breakdown of the object

Formula for computing co-insurance

(Amount carried/ amount required) * loss = amount paid

Under the Building and Personal Property Coverage form, what is the limit for Fire Department Service Charge?

$1,000

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT

$1,000 on silverware

The Section II basic limits of liability are $______ per o_______ for Coverage E and $_____ per p______ for Coverage F. There is a $______ cap on statutorily imposed vicarious parental liability. These limits may be increased. The limits applicable to Additional Coverages apply as additional amounts over these limits.

$100,000 occurance $10,000 person $10,000

Under the commercial crime coverage inside the premises- robbery or safe búlgaro of other property, what is the special per occurrence limit that applies to loss of damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?

$5,000

What is the basic limit that applies to each person under Medical Payments?

$5,000

Under add'l coverages for HO policies, what is the maximum amount that can be charged to the insured for fire dept. services?

$500

What are the criteria that an independent contractor must meet to be considered a non-employee?

(Non-Construction only needs to meet 4 of the following. Construction, all 6 must be met) 1) Maintain separate business with own accommodations; 2) has a FEIN number, unless sole proprietor; 3) Compensation is paid to the business; 4) Bank accounts in the business name; 5) Can bid, work, and receive compensation without an employment application; 6) Receives compensation for bidding and completing a contractual agreement.

WHO COULD SHARE THEIR COMMISSIONS

** 220 general lines agent with another 220 general lines agent (must have the same licence) ** 220 general lines agent CANNOT with a CSR (440) ** 215 life and heath agent with another 215 life and heath agent

Legal Liability

**Textbook def** when rules of law dictate that one must provide reparations to another normally based upon negligence

What is excluded from the definition of "accident" as related to a Boiler and Machinery policy?

1) Depletion, deterioration, corrosion, erosion, wear and tear. 2) Leakage at any valve, fitting, shaft seal, gland packing, joint or connection. 3) Breakdown of any vacuum tube, gas tube, brush, electronic computer or data processing equipment, or of any structure or foundation supporting the object or any of its parts. 4) The functioning of any safety or protective device.

What types of persons make employers not employments?

1) Domestic servants in private homes; 2) "Small" farms; 3) Professional athletes; 4) Sports officials for interscholastic sports and public or private non-profit amateur sports events; 5) Labor under sentence of court to perform community services; 6) State and county prisoners, unless working for private employees; 7) Employees covered by the Defense Base Act.

Under what circumstances are Workers Compensation benefits excluded?

1) Employee was intoxicated or used illegal drugs; 2) Willful intention to injure or kill; 3) .08% or more blood alcohol.

What are the responsibilities of the Office of Insurance Regulation?

1) Examine the qualifications of insurance companies doing business in Florida; 2) Examine the financial conditions of companies; 3) Approve forms, rules, and rates.

Under the Farm Property Coverage form, what does 'Coverage F: Unscheduled farm personal property' include?

1) Farm personal property on blanket basis; 2) On and off the insured premises.

Workers Compensation is not payable for injuries if an employee is covered by what 'acts'?

1) Federal Employers Liability Act; 2) Longshore and Harbor Workers Act; or 3) Jones Act.

For a Convenience food store to be eligible for for a Businessowners policy, what are the restrictions?

1) Gas sales must be less than 75% of total annual gross sales; 2) No auto service or repairs; 3) No car wash; 4) No propane or kerosene tank filling.

Under the Farm Property Coverage form, what does 'Coverage E: Scheduled farm personal property' include and exclude?

1) Grain; 2) Farm produce; 3) Poultry; 4) Livestock; 5) Machinery; 6) Vehicles and equipment for farming. *Excluded is coverage for Growing crops.

What are some examples of the core values of Ethics?

1) Honesty and truth; 2) Responsibility and accountability; 3) Respect and tolerance; 4) Fairness and justice; 5) Compassion and caring.

What are some of the forms of Professional Liability Insurance

1) Hospitals; 2) Lawyers; 3) Physicians, Surgeons and Dentists(PS&D).

What is not included in the definition of employee?

1) Independent contractors in the non-construction business; 2) Casual work; 3) Commissioned real estate agents; 4) Certain musical and theatrical performers; 5) Certain trucking owner-operators; 6) Certain taxicab, limousine, and passenger vehicle-for-hire drivers; 7) Volunteers.

What are the three basic ways for an employer to secure the payment of compensation?

1) Insure with any stock or mutual company authorized to do business in Florida; 2) Individual Self-Insurer after submitting proof to the Division of the ability to pay benefits and then receive approval from the Divisions; 3) Pooling Liabilities, also known as self-insurance funds.

What are the Bodily Injury and Property Damage exclusions?

1) Intentional injury; 2) Contractual liability(with exceptions); 3) Liquor liability; 4) Employee injuries; 5) Pollution; 6) Aircraft, autos, & watercraft (with exceptions); 7) Mobile equipment; 8) Miscellaneous property damage; 9) Insured's products; 10) Insured's work; 11) Defects and/or delays; 12) Recall; 13) Electronic data.

What are the exclusions under part two?

1) Liability assumed under contract; 2) Punitive or exemplary damages for employments in violation of law; 3) Obligations under any compensation law; 4) Injuries intentionally caused or aggravated by the insured; 5) Injuries outside the US and its territories or Canada except if US or Canadian citizens temporarily outside the country; 6) Obligations under Federal Acts; 7) Fines or penalties imposed for violation of state or federal laws.

Under the Business Income Coverage form, what are the four optional coverages?

1) Maximum Period of Indemnity; 2) Monthly Limit of Indemnity; 3) Agreed Value; 4) Extended Period of Indemnity.

What features are available when the building is covered under a Businessowners policy that are not normally found in other forms?

1) No coinsurance clause - Coverage is at Replacement Cost if the limit is equal to at least 80% of the replacement cost, otherwise its ACV; 2) Includes Appurtenant structures; 3) Includes Lessor's property in furnished apartments and rooms; 4) Outdoor property up to $2,500, but no more than $500 for any one tree, shrub or plant; 4) Inflation gaurd increases by 8% annually, unless other amount purchased.

What are the exclusions for 'Personal and Advertising Injury'?

1) Oral or written publications, in any manner, made with knowledge of falsity or occurring before the policy period; 2) Willful violation of law with knowledge or consent of the insured; 3) Liability assumed under contract; 4) Offense made by an insured in business of advertising, broadcasting, publishing, or telecasting; 5) Pollution.

What are the responsibilities of the Florida Surplus Lines Service Office?

1) Oversees the surplus lines industry; 2) Reviews all surplus lines policies and documents; 3) Collects surplus lines takes and fees.

Under the Builders Risk Coverage form, what does the definition of covered property include?

1) Structure being built including foundations; 2) Fixtures and machinery; 3) Equipment to service the building; 4) Owned materials and supplies used for construction; 5) Temporary structures built and assembled on site.

What kind of miscellaneous property does the Commercial General Liability policy exclude?

1) That which the insured owns, rents, occupies or has on loan; or personal property in the insured's care, custody or control; 2) Premises the insured has sold, given away or abandoned, if the damage arises out of any part of the premises; 3) That particular part of real property on which the insured or others in the insured's behalf are performing operations, if the damage arises out of those operations; 4) As to work in progress, that particular part of any property that must be restored, repaired, or replaced because the work of the insured -or others in insured's behalf- was incorrectly performed.

What are two optional coverages that can be purchased under the Farm Liability coverage form?

1) The Custom Farming endorsement; 2) The Farm Employers' Liability/Medical Payments endorsement.

What is the Transfer policy of a Commercial General Liability policy?

1) The insured may not transfer any rights or duties under the policy except with written consent of the company; 2) Rights and duties are automatically transferred if the insured dies, first to one who has temporary custody of the property and then to the legal representative.

What are the penalties for employers who are required to carry Workers Compensation, but fail to do so?

1) Third degree felony; 2) Employer cannot hire or conduct business; and 3) Fined a penalty equal to 2 times what the employer would have paid in premiums over the last 2 years, or $1,000, whichever is greater.

What are the definitions of a certified act of terrorism?

1) To be an act of terrorism; 2) To be a violent act or an act that is dangerous to human life, property, and infrastructure; 3) Resulted in damage with the US or outside in the case of US carriers, vessels, and/or missions; 4) Committed by an individual or individuals to coerce the civilian population of the US or the government.

Under 'Permanent Impairment' disability class, the Disability benefit continues until the earlier of what durations?

1) Two weeks for each percentage of the impairment up to 10%; 2) Three weeks for each percentage of impairment from 11 to 15%; 3) Four weeks for each percentage of impairment from 16 to 20%; 4) Six weeks for each percentage of impairment from 21% and higher; or 5) Death.

What are the different coverages on a cyber liability policy?

1) Web Site Publishing Liability; 2) Security Breach Liability; 3) Programming E&O Liability; 4) Replacement or Restoration of Electronic Data; 5) Extortion Threats; 6) Business Income and Extra Expenses; 7) Public Relations Expense; 8) Security Breach Expense.

For a claim to qualify to be covered under the basic extended reporting period, when must the claim be received and recorded?

1) Within 60 days after policy expiration; or 2) Within 5 years after policy expiration if the occurrence was reported not later than 60 days after policy expiration.

Name the six different parts of a standard Workers Compensation policy?

1) Workers' Compensation Insurance; 2) Employers Liability Insurance; 3) Other States Insurance; 4) Your Duties If Injury Occurs; 5) Premium; 6) Conditions.

WHO MAY APPOINT A CSR 440 LICENCE

1. 220 general lines agent 2. general lines insurance agency 3. surplus lines insurance agent

What auto means in commercial auto?

1. A land moto vehicle, trailer or semi-trailer designed for travel on public roads. 2. Any other land vehicle that is subject to a compulsory of FR law or other motor vehicle insurance law where it is licensed or principally "garaged" 3. Mobile equipment.

Contract Requirements

1. A manifestation of assent to its terms by the parties who make the contract 2. A sufficient consideration (value or payment) for each promise 3. Legal capacity of the parties to contract 4. Not against public policy or otherwise illegal 5. In Florida, a minor 15 years or older may enter into a contract for insurance.

Insured's Duties Following Loss

1. Prompt notice 2. Cooperation with insurer 3. Must act in a way that preserves insurer's rights

Property Losses

1. Real Property (Buildings and structures) 2 personal property 3. rights of possession or use

EXCEPTIONS TO THE CERTIFICATE OF AUTHORITY

1. investigation, settlement of claims - as a result of former authorized operations in the state 2. transactions covering only - subjects of insurance not resident / located in the state at the time of issuance 3. transactions under surplus lines coverage's - non admitted carriers (ins comp) 4. reinsurance - when transacted as authorized - insurance bought by insurers - in-other-words: insurance companies which loan their reserves to another insurance company to pay for their losses 5. continuation of life/ health on annuity contracts remaining in force with insurer has withdrawn from Florida 6. investment - by "foreign insurer" in Florida real estate 7. transaction involving hospital professional - hospital general liability issued by a captive company if: a.) captive comp domiciled in US and accredited by the Nat'l Assoc. of Insurance Commissioners or an Owned Captive Company that : 1. files insurance premium tax return in state 2. been in existence for at least 3 years 3. insurers less than 3 hospitals 4. maintains surplus of 1.5 million

COMMERCIAL APPLICATIONS MUST DISPLAY

1. name of agent 2. name of insurance agency 3. license ID number

CSR DUTIES

1. perform the duties of the sponsoring licensed agent 2. could write in the office only - never could the CRS leave the office to write a policy (only a 220 agent can)

Florida law requires an insurer to give the insured at least ___ days advanced written notice of non renewal stating the reason why the policy is not to be renewed. The insurer must also give ___ days advanced written notice of cancellation stating the reason for such cancellation unless cancellation is for nonpayment of the premium or the cancellation was during the first 90 days the insurance was in force. Cancellation for nonpayment of premium requires a __-day written notice stating the reason for the cancellation. For cancellation, other than nonpayment of premium, during the first 90 days the insurance is in force, a __ day advance written notice along with the reason for the cancellation is required; the 20 day requirement does not apply if there has been material misrepresentation or misstatement or for failure to comply with underwriting requirements by the insured.

100 100 10 20

Under the Cancellation Condition, Florida law requires an insurer to give ___ days advanced written notice of cancellation, including the reason for the cancellation, except for cancellation for nonpayment of premium or cancellation during the first __ days during which the insurance is in force. For cancellation for n__-p______ of premium, __ days written notice of cancellation, accompanied by the reason, must be given. For cancellation other than nonpayment of premium during the first 90 days the policy is in force, at least __ days advance notice including the reason for cancellation must be given except where there has been material misrepresentation or misstatement or a failure to comply with the underwriting requirements of the insurer. The insurer must give 100 days written notice of non renewal, stating the reasons for non renewal or, if the insurer it elects to renew the policy, 45 days written notice of the renewal premium.

100 90 non-payment 10 20

A- $100,000 liability/$1,000 med pay

101. The minimum basic limits for Personal Liability are: A- $100,000 liability/$1,000 med pay B- $25,000 liability/$1,000 med pay C- $100,000 liability/$500 med pay D- $25,000 liability/$500 med pay

D- Loss of business income

149. Optional coverages offered in the Businessowners Policy Special Form are all EXCEPT: A- Employee dishonesty B- Exterior signs C- Mechanical Breakdown D- Loss of business income

C- $20,000 $100 deductible to PD

102. Debbie's Garage has Garage Insurance with $500,000 in liability coverage. Todd, one of Debbie's mechanics repairs the brakes on a customer's car. The brakes fail as a result of Todd's negligence & the following damages result: Repair brakes... $500. Customer's auto...$4,700. Auto struck customer... $6,400. Passenger in other auto...$9,000. How much will Debbie's Garage Policy pay? A- $4,700 B- $15,400 C- $20,000 D- $20,100

C- Guns

104. All are covered by P.A.F. EXCEPT: A- Jewelry B- Cameras C- Guns D- Silverware

C- Payment Bond

105. A bond that guarantees that all labor and materials for the project will be paid by the contractor upon completion of the work is called a: A- Supply Bond B- Performance Bond C- Payment Bond D- Maintenance Bond

C- Maximum Period

106. Indirect loss coverage under Boiler & Machinery may be written under all of the following methods EXCEPT: A- Valued B- Actual Loss Sustained C- Maximum Period D- Extra Expense

B- 20

107. Florida Law requires the health insurer to give how many days notice of cancellation during the policy term? A- 10 B- 20 C- 30 D- 45

D- Buy UM in a limit greater than the BI limit

108. An insureds possibilities in purchasing UM coverage are all EXCEPT: A- Reject coverage B- Purchased unstacked UM C- Buy UM in a limit less than the BI liability limit D- Buy UM in a limit greater than the BI limit

D- Agent must maintain a rebate schedule for two years

11.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

C- Named Individuals - Broadened PIP

110. An individual who is furnished an auto but does not own an auto can secure PIP through which endorsement? A- Additional PIP B- Extended PIP C- Named Individuals - Broadened PIP D- Name Non-owner Coverage

B- Actual cash value on personal property

111. All of the following are standard features of a BOP EXCEPT: A- No coinsurance B- Actual cash value on personal property C- Replacement cost on buildings D- Loss of income with no dollar limit

D- An individual who employs a maid four days per week

112. All of the following would be required to provide Worker's Compensation coverage EXCEPT: A- A florist shop with two full time and three part-time employees B- A county government employing 129 persons C- A building contractor with 2 employees D- An individual who employs a maid four days per week

D- $128,900

113. An insurer defends an insured under a CGL. The insurer incurs $21,000 in legal defense costs and the judgment against the insured is $100,000 plus $7,900 in prejudgement interest. If the CGL has a $100,000 occurrence limit, how much will the insurer pay of these costs? A- $100,000 B- $107,900 C- $121,000 D- $128,900

B- $500

114. Deductible in Employee Theft is which? A- $250 B- $500 C- $1,000 D- $2,500

D- Would not provide coverage for this loss

115. If someone steals employee's personal effects from their place of business, a Building and Personal Property Coverage Form would: A- Not pay because it was determined that the insurance did not meet the 80% coinsurance requirement. B- Provide coverage up to $1,000 C- Provide coverage up to $2,500 D- Would not provide coverage for this loss

D- Outboard boat and motors

116. Under a P.A.F. all may be covered EXCEPT: A- Jewelry B- Musical instruments C- Golfers Equipment D- Outboard boat and motors

A- Bid Bond

117. A bond that guarantees that the bidder, if successful, will enter into contract and will satisfy future bonding requirements of that specific job is called: A- Bid Bond B- Performance Bond C- Supply Bond D- Fiduciary Bond

C- 90 days

118. The Coverage Extension - Automatic Coverage in a Boiler policy covers objects at a new location for: A- 30 days B- 60 days C- 90 days D- 120 days

B- Conditionally renewable

119. When a health insurer can refuse to renew the policy only under certain conditions, it is called: A- Optionally renewable B- Conditionally renewable C- Guaranteed renewable D- Noncancellable

D- Properties over 50 years old (if roof and wiring updated)

12. 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- $350,000

120. John has three autos insured with Stacked Uninsured Motorist coverage in the amount of $100,000. John is driving Tim's auto which has $50,000 UM coverage and has an accident in which the other party is negligent. What is the maximum John might collect under UM? A- $100,000 B- $150,000 C- $300,000 D- $350,000

D- 21 years old

121. Personal Liability covers those in CCC of insured if under: A- 12 years old B- 15 years old C- 18 years old D- 21 years old

D- $670

122. Sam has a Business Auto Policy with Section IV - Physical Damage written with a $250 deductible on Comprehensive and a $500 deductible on Collision. Sam runs into a tree limb destroying his windshield. If the cost to replace the windshield is $670, his policy will pay: A- 0 B- $170 C- $420 D- $670

D- $3,000,000

123. In order for a service risk to be eligible for a BOP, gross sales must not exceed: A- $100,000 B- $250,000 C- $500,000 D- $3,000,000

C- 1 year

126. In Crime insurance, the discovery period in an expired Loss Sustained Form is: A- 60 days B- 90 days C- 1 year D- 2 years

D- $4,100

127. Ace Lawn Mower Sales sends one of its floor model riding mowers to Acme Lawn Mower Repair. While at Acme a cause of loss covered by Ace's Building and Personal Property Coverage form causes $4,100 damage to the mower. Ace's policy will provide coverage in the amount of: (ignore deductible). A- 0 B- $1,000 C- $2,500 D- $4,100

C- Inherent vice

128. Quality within an object that results in the objects tending to damage or destroy itself, is called: A- Deterioration B- Wear and tear C- Inherent vice D- None of these choices

D- Replacement Cost on Personal Property

13.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

B- Included for private passenger auto only

134. Under the Business Auto Policy, transportation expense reimbursement is: A- Included for all covered autos B- Included for private passenger auto only C- Included for auto designated by a symbol D- Not included in the policy

A- Inflation Guard

135. The endorsement which will increase the BOP Section 1 coverage at a certain percentage throughout the year is called: A- Inflation Guard B- Agreed Value C- Replacement Cost D- None of these choices

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

144. Under the CFO unfair methods of competition and unfair or deceptive acts may result in fine for each non-willful violation of not greater than: A- $1,000 for each violation and no more than $500 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 action

D- installed according to the 2001 Florida Building Code requirements, be of approved materials, and be tested

145. 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 materials, and be tested

B- Primary in the owned auto/excess in the non-owned auto

146. An insureds medical payments coverage are: A- Excess in the owned auto/primary in the non-owned auto B- Primary in the owned auto/excess in the non-owned auto C- Applied only in the owned auto D- None of these choices

C- Cover if Custom Farming Option is in effect

147. Olson McDonald has a farm. In addition to doing what must be done to successfully tend to his own operation he also does over $50,000 in farm related jobs for other farmers. If Mr. McDonald has accidentally destroyed another farmers crop while working on it, his policy would: A- Not cover work product B- Cover as property damage C- Cover if Custom Farming Option is in effect D- Covered if Products Completed Operations are in effect.

A- Coverage if the insured's product is damaged by the insured's negligence.

148. A Broad Form Products Endorsement to a Garage Insurance Policy provides: A- Coverage if the insured's product is damaged by the insured's negligence. B- Coverage if the customer's product is damaged by the insured's negligence. C- Coverage for the insured's product being damaged by someone else's negligence. D- None of these choices.

A- Bodily Injury Liability

168. What Boiler & Machinery endorsement makes coverage excess to the other BI Liability coverage that applies to the same accident? A- Bodily Injury Liability B- Consequential Damage C- Expediting Expense D- Extended Bodily Injury

C- Cancellation period

169. The period of time between when Health policy is issued and accepted and sickness benefits begin, may be called all EXCEPT: A- Waiting period B- Elimination period C- Cancellation period D- Incubation period in older policy forms

A. 1st Degree Misdemeanor

170. Twisting and churning carry a maximum legal penalty of: A. 1st Degree Misdemeanor B. 1st Degree Felony C. 3rd Degree Misdemeanor D. 3rd Degree Felony

D. 3rd Degree Felony

171. Fraudulent Signatures carries a maximum legal penalty of: A. 1st Degree Misdemeanor B. 1st Degree Felony C. 3rd Degree Misdemeanor D. 3rd Degree Felony

C- 40k each / 200k max

172. What are the fines for unfair methods of competition / unfair and deceptive acts if determined to be wilful? A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all

D- 5k each / 50k all

173. What are the fines for unfair methods of competition / unfair and deceptive acts if determined to be non wilful? A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all

D- 5k each / 50k all

174. Non wilful twisting or churning carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all

B- 75k each/ 250k max

175. Willful twisting or churning carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all

B- 75k each/ 250k max

176. Willful fraudulent signatures carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all

D- 5k each / 50k all

177. Non wilful fraudulent signatures carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all

B- $132,000

178. Ms. Rhinehart has a Personal Auto Policy with liability limits of $100,000. If she has an accident and is found to be negligent, how much would her policy pay if there was a $120,000 judgment and $32,000 in defense costs? A- $152,000 B- $132,000 C- $100,000 D- $82,000

D- Go kart driven on sidewalk in insured's neighborhood

179. All of the following would be covered under Section II of a Homeowners Policy EXCEPT: A- 24 foot sailboat owned by the insured B- 80 hp outboard purchased six months after policy renewal C- 40 hp inboard-outboard rented to the insured D- Go kart driven on sidewalk in insured's neighborhood

What is the minimum age that a person can obtain a life insurance license?

18

How old must an applicant be to become a general lines agent?

18 years of age.

B) Medical Payments Coverage

18. All of the following are eligible coverages for commercial automobile in the Florida Auto Joint Underwriting Association except: A) Liability Coverage B) Medical Payments Coverage C) Uninsured Motorist Coverage D) PIP

The elimination period of a long term care policy can a extend up to how many days?

180 days

D- Direct (liable or not) prorating

180. The ways that the protection of Garagekeepers Insurance may be written are all EXCEPT: A- Legal Liability B- Direct (liable or not) excess over customer's coverage C- Direct (liable or not) primary coverage D- Direct (liable or not) prorating

D- No dollar limit and includes loss of rents and extra expense

181. Which best describes Loss of income coverage in the Businessowners Policy: A- Limited to $25,000 B- Subject to a coinsurance provision C- Limited to 120 days D- No dollar limit and includes loss of rents and extra expense

A- One employee

182. Construction industry employers must provide Workers Compensation if they have? A- One employee B- Three employees C- Four employees D- Five employees

C- 24

19. 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

D- Motorcycle owned by insured

190. Under a Personal Auto Policy, all of the following are included within "your covered auto" EXCEPT: A- An eligible vehicle acquired during the policy period B- A non-owned vehicle used as a substitute for an owned vehicle C- A trailer owned by the insured D- Motorcycle owned by insured

D- Loss Assessment - $5,000 (should be $1,000)

191. Correct "Additional Coverages" in Section II Homeowners are all EXCEPT: A- Claim expenses B- First aid expenses C- Damage to Property of Others - $1,000 D- Loss Assessment - $5,000

D- Reporting, Non-reporting

192. What are the ways that blanket coverage for Physical Damage on dealer's risks may be written? A- Schedule only B- Reporting, Schedule C- Schedule, Non-Reporting D- Reporting, Non-reporting

C- 100,000 square feet

193. Which of the following best describes the eligibility rule of an office building under a BOP? A- 50,000 square feet B- 75,000 square feet C- 100,000 square feet D- 200,000 square feet

B- Foreign

22. An insurance company formed in any state, other than Florida, is known as: A- Domestic B- Foreign C- Alien D- Mutual

C- Make rating and underwriting rules. (The OIR doesn't make the rating and underwriting rules, they audit them to ensure compliance w/ the law)

24. 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.

Under what circumstances are Workers Compensation benefits limited, and to what extent?

25% reduction in benefits if the employee refuses to use safety equipment or observe safety rules.

A- FAJUA

25. 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

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

26. 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 the water

D- Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance

27. 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- Review of educational background of Officers and Directors of carriers

28. 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

A- Hard markets

29. Under unauthorized insurers fraudulent activity is more likely under which: A- Hard markets B- Soft markets C- Medium markets D- Average markets

How long is the waiting period after the application has been accepted before flood coverage goes into effect?

30 days

Under the Building and Personal Property Coverage form, what is Automatic Coverage provided for and for how long?

30 days automatic coverage for 1) New buildings under construction at the insured premises, or building acquired at other premises, for up to $250,000 per building. and 2) Newly acquired business, personal property at insured and acquired locations, not more than $100,000 at each building.

A building and personal property coverage form has an automatic coverage for personal property at a newly acquire premises for

30-days up t $100,000

C- Agent puts the public's interest first

30. 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- $250 for the first offense

31. 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

D- Conviction of a Misdemeanor

32. 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

B- 2 years

33. 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

D- Offering part of the commission to the applicant as an inducement for them to buy insurance from you.

34. 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- Defamation

35. 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

B- Windowless doors

37. Each of the following is an example of opening protection EXCEPT: A- Impact resistant skylights B- Windowless doors C- Impact resistant windows D- Hurricane shutters

B- Hip roof

38. 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

A- At least 5 hours on the subject of statutory updates related to the license

40. 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

A- Coinsurance

41. 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

C- $100,000

42. 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

Loss*(Limit of Insurance/(Value of Property*Coin per))=settlement $40*($60/($100*80%))=$30 B- $30,000

43. 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 of 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

Loss*(Limit of Insurance/(Value of Property * CoIn per))=settlement $100*($450/($500*80%)=$112,500 (was originally $100,000)

44. 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- $112,500 (was originally $100,000)

Joe's DL was reviled 90 days after his auto insurance policy was issued. If the insurer chooses to cancel his auto policy, it must give Joe a minimum of ______ notice

45 days

B- United States Department of Labor

45. 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- A MEWA cannot be a single employer plan

46. 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

C- Multiple Employer Welfare Arrangement

47. MEWA stands for which: A- Medical Education Workers Association B- Marine Environment Workers Association C- Multiple Employer Welfare Arrangement D- Multiple Employer Workers Association

A) A single employer to fully self insure a health plan

48. 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) Regulation of insurance rates & forms

49. The Office of Financial Regulation is responsible for all of the following except: A) Regulation of insurance rates & forms B) Regulation of banks C) Regulation of credit unions D) Regulation of securities industry

Section I Property Coverage: Additional Coverages 1. Cost of debris removal and reasonable repairs after a loss are covered up to _% of the Coverage A limit 2. T___, s_____ and p_____ are covered up to 5 % of Coverage A limit, but not more than $500 for any one t___, s_____ and p_____ ; t___, s_____ and p_____ are only covered for certain limited perils 3. Up to $___ reimbursement is provided for fire department service charges. 4. Thirty days coverage is allowed for property removed from e______ premises for loss from any cause 5. Loss from unauthorized use of c____ c_____ or fund transfer cards, f_____, and accecptance of counterfeit money is covered up to $500 6. Coverage $1,000 applies for l___ a_________ imposed by an assocaitaion against the insured for damage to property caused by a periol insured against under Coverage A. In response to FL Statute 718.111(11)(G), effective January 1, 2009, coverage of $2000 applies for loss assessments to HO-6 policies 7. In the HO-2, HO-3 and HO-5 forms only, a named insured who regularly rents or holds for rent an apartment on the residence premises is covered for up to $____ for "landlord f_______" (appliances, carpeting or other household furninshings) in the apartment. 8. Breakage of building g_____, including replacement with safety glazing materials if required by ordinance or law, is covered unless the building has been vacant for over __ consecutive days 9. Up to __% of the Coverage A limit is available, as an additional amount of insurance, to cover losses arising from the operation of building ordinances or laws if triggered by a covered loss. 10. In the HO-_ form only, up to 10% of Coverage C is available, as an additional amoun of insurance, for building additionoas and alterations made or acquired at the tenants's expense.

5 Trees, shrubs and plants $500 endangered credit card forgery loss assessments $2,500 furnisings glass 60 C

B: Liberalization

5. 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) Declarations

50. 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

A) Conditions

51. 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

C- Cause of Loss Form

52. 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

D- To keep premiums down for people who agree to insure to a certain value

53. 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- Franchise

64. A deductible under which there is no payment for loss until a certain amount of loss is reached, then loss paid in full, is called: A- Participating B- Flat C- Straight D- Franchise

A- Sue and labor

65. The Ocean Marine clause that pays the cost to save goods from loss, or minimize loss is called: A- Sue and labor B- General average C- Barratry D- Running Down

A- Misrepresentation

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

A- General Average

72. The voluntary sacrifice which successfully saves a ship and is borne proportionately by all interests engaged in the venture, is called: A- General Average B- Particular Average C- Barratry D- Jettison

D- Shipowner liable for damage to other ship in a collision

74. Protection and Indemnity Insurance covers all of the following situations EXCEPT: A- Shipowner liable to passengers of another ship his ship collided with B- Shipowner liable to passengers of his own ship hurt in a collision C- Shipowner liable for damage to cargo on his ship due to a collision D- Shipowner liable for damage to other ship in a collision

B- i, ii

75. Identify the liability coverages found in Ocean Marine. i. Running Down clause (ii.) Protection and Indemnity (iii.) Sue and Labor (iv.)Inchmaree clause A- i only B- i, ii C- i, ii, iii D- i, ii, iii, iv

C- Equipment Dealers Coverage Form

76. What Inland Marine coverage form would one use to cover a tractor dealer? A- Mobile Agricultural Equipment Floater B- Commercial Articles Coverage Form C- Equipment Dealers Coverage Form D- Contractors Equipment Floater

D- Motor truck cargo Uncontrolled form designed to protect the carrier instead of the shipper

77. All of the following are controlled forms of Inland Marine insurance EXCEPT: A- Accounts receivable B- Commercial Articles C- Jewelers Block D- Motor truck cargo

D- Bridge

78. An example of Instrumentality of Transportation under Inland Marine would be which? A- Truck B- Train C- Inland Barge D- Bridge

B- 48 months (2 years)

8. 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

C- Statutory Insured Retention

8. Under Commercial Umbrella Policies the SIR is: A- Significant Income Replacement B- Self Insured Retention C- Statutory Insured Retention D- Self Insured Reduction

Valuation of Losses on Flood: Replacement cost coverage is provided for single-family dwellings if the dwelling is the insured's principal residence (must be the insured's residence __% of the time) and if the dwelling is insured for at least __ percent of its replacement cost or the maximum limit available from NFIP. The Residential Condominium Building Association policy (RCBAP) also provides replacement cost subject to a coinsurance clause. Other losses are settled on an a_____ c____ v_____ basis.

80% 80% actual cash value

C- Percentage of the value

80. How are deductibles expressed in Aircraft Hull policies? A- Flat dollar amount B- Percentage of the loss C- Percentage of the value D- As a franchise deductible

B- Aircraft in hangar owners CCC (Care, Custody, Control)

81. Hangarkeepers Liability Coverage provides coverage for: A- Persons injured on hangar premises B- Aircraft in hangar owners CCC C- Medical payments for guests D- None of these choices

D- Cargo liability

82. All of the following are typical coverages under aircraft liability policies EXCEPT: A- Bodily Injury excluding passengers B- Passenger liability C- Property damage liability D- Cargo liability

D- No coverage if operated more than 50 miles beyond the limit in the declaration

83. All of the following are exclusions found in aircraft policies EXCEPT: A- No coverage if the FAA airworthiness certificate is not in full force B- No coverage if maintained or used for purpose beyond use classification C- No coverage if operated by other than pilot declarations D- No coverage if operated more than 50 miles beyond the limit in the declaration

C- Valued policy

84. Most Aircraft Hull policies pay on the basis of: A- ACV B- Replacement cost C- Valued policy D- Fair market value

D- Exclude coverage while aircraft is in flight

85. If FAA has granted a special permit or waiver to an insured under aircraft insurance, the effect of flying while under such permit or waiver would be to: A- Reinstate Suspended Coverage B- Reinstate coverage provisionally C- Cancel policy D- Exclude coverage while aircraft is in flight

D- All Damage Not excluded to aircraft of others stored for safekeeping or repair

86. Hangarkeepers Liability typically covers: A- BI and PD arising from use, operation and maintenance of hangars B- Named Perils Damage to Hangarkeeper's own aircraft C- All Damage Not excluded to Hangarkeeper's aircraft D- All Damage Not excluded to aircraft of others stored for safekeeping or repair

B- Cargo Liability

87. Damage to baggage on an airplane is covered under: A- Property Damage Liability B- Cargo Liability C- Hangarkeepers Liability D- Product Liability

B- Named Peril - not in flight w/ aviation, policy is ALWAYS all risk not in flight. Can be all risk or named peril in flight

88. Hull coverage is generally available as all EXCEPT: A- All Risk - not in flight B- Named Peril - not in flight C- All Risk - in Flight D- Named Peril - in flight

C- His policy automatically covers him

89. A private aircraft owner's airplane is undergoing maintenance and minor repair. Which of the following explains best how his aircraft liability coverage will apply if he uses a rented plane while his is inoperative? A- He must have the rented aircraft's coverage endorsed to cover him B- He can have his own policy endorsed to cover him C- His policy automatically covers him D- Coverage not readily available for such a risk

What type of roof deck attachments receive mitigation credits?

8D 6/6 and 8D 6/12 for plywood or oriented strand board decking.

B- Controlled business

9. 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

An insurer must give 20 days' written notice to the insured when canceling a property insurance policy for reasons other than nonpayment of premium if the policy is cancelled within how many days after its issue?

90

What is the cancellation policy in the Commercial General Liability policy?

90 days or sooner: 20 days notice except for misrepresentation or misstatement. After 90 days: 45 days' written notice of cancellation or non-renewal. OR 10 days notice for non-payment.

Describe admitted aircraft liability. Choose one answer. a. All of the answers are correct b. Covers payment for death or dismemberment c. Not written when carrying passengers for hire d. Requires the named insured to request it and requires the insurer to be released from further liability

A

D- Covered as policy spells out accidents caused by alighting are covered

90. Insured has aircraft medical payments. A passenger falls while getting out of the insured craft. How would the med pay respond? A- No coverage unless due to insured's negligence B- No coverage because passenger was leaving aircraft and simply fell C- Covered as admitted liability not med pay D- Covered as policy spells out accidents caused by alighting are covered

A- Maximum $10,000/30 days

91. The Personal Articles Floater provides automatic coverage for newly acquired jewelry for: A- Maximum $10,000/30 days B- Maximum $2,500/30 days C- Maximum $10,000/90 days D- Maximum $2,500/90 days

B- Cost to haul off debris from the damaged portion

92. The Building Ordinance Form would cover all of the following costs EXCEPT: A- Cost to demolish undamaged portion of building B- Cost to haul off debris from the damaged portion C- Increased cost to rebuild in compliance with building code D- Undamaged portion of building that must be destroyed

B- Indemnitor

93. Some bonds have an additional party. The name of this party is: A- Executor B- Indemnitor C- Administrator D- Adjudicator

D- 18 months

94. To recover under a Boiler policy on a replacement cost basis, the insured must repair or rebuild within: A- 60 days B- 6 months C- 1 year D- 18 months

A- Optionally Renewable

95. When a health insurer may not cancel during the policy term, but has the right to non-renew the policy upon expiration, it is called: A- Optionally Renewable B- Conditionally Renewable C- Guaranteed Renewable D- Noncancellable

A- Twice the occurrence limit BOP basically the same as regular liability but based on area

96. In the Liability section of the BOP; the General Aggregate limit is: A- Twice the occurrence limit B- Equal to the occurrence limit C- There is no aggregate limit in a BOP D- None of these choices

D- No dollar limit/no time limit

97. Medical expenses under Worker's Compensation are subject to the following limitations: A- $100,000/5 years B- $100,000/no time limit C- No dollar limit/5 years D- No dollar limit/no time limit

B- Extortion

99. Inside Premises Theft of Money & Securities covers all EXCEPT: A- Loss of money & Securities inside premises B- Extortion C- Property damage during the loss D- Destruction of securities

Aircraft liability coverage includes? Choose one answer. a. Bodily injury liability, passenger liability and property damage liability b. None of the answers are correct c. Public liability and passenger liability d. Public liability and property damage liability

A

Describe a hull policy. Choose one answer. a. All of the answers are correct b. Available coverage includes all risks of physical damage on the aircraft not in flight, and named peril coverage while in flight. c. It is provided to protect the risk of loss or damage to an insured aircraft itself d. Available coverage includes all risk of physical damage on the aircraft whether in flight or not

A

Describe aircraft liability coverage. Choose one answer. a. All of the answers are correct b. Bodily injury liability (excluding passenger liability), passenger liability and property damage liability insurance. c. The company will pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury, sickness or disease, including death at any time, or injury to or destruction of property. Covers public and passenger liability and property damage liability.

A

How are the limits of liability in an aircraft liability policy normally written? Choose one answer. a. All of the answers are correct b. Bodily injury limits might be for example $100,000 per person, $300,000 per occurrence and $50,000 each occurrence for property damage liability. c. Alternatively, single limit coverage is common. d. Typically they are applied in the same manner as automobile liability insurance policies.

A

Which exclusion will deny liability coverage for an aircraft? Choose one answer. a. All of the answers are correct b. Maintained for any purpose other than the use classification permitted in policy declarations. c. Coverage is denied for aircraft not registered under a standard category airworthiness certificate. d. Operated in flight by (a) other than the pilot named in the declarations, (b) by a declared pilot operating outside the limitations imposed in the declarations.

A

Limits: Under the homeowner's program, the insured selects a limit for Coverage _, Coverage B is automatically __% of the amount of insured for Coverage A and (may or may not) be increased or decreased. Coverage C is normally __% of the Coverage _ limit, but there are special coverage limits for certain categories of personal property. Form HO-6 requries a minimum limit for Coverage A of the $5,000. Coverage D is 1) 30 percent of Coverage A under HO-2, HO-3 or HO-5; 2) 30 percent of Coverage C under HO-4; 3) 50 percent of Coverage C under HO-6; and 4) 10 percent of Coverage A under HO-8. These limits (except HO-8) may be increased to higher amounts

A 10 may not 50% of Coverage A

B. $50,000

A Blanket Personal Articles Floater policy covering Stamps and coins for $100,000 is purchased. The insured sends stamps and two rare coins by First Class Mail, which are lost. The stamps and coins are valued $50,000. How much does the policy pay? Select one: A. Nothing B. $50,000 C. $1,000 D. $25,000

A

A Blanket Personal Articles Floater policy covering stamps and coins for $100,000 is purchased. The insured sends stamps and two rare coins by First Class Mail, which are lost. The stamps and coins are valued $50,000. How much does the policy pay? Choose one answer. a. None b. $50,000 c. $1,000 d. $25,000

D

A Community College is insured under a Crime Coverage - Inside Premises - Robbery or Safe Burglary of Other Property Form. Which one of the following amounts will not be paid if the amount of coverage is $30,000? Choose one answer. a. $1,000 damage to the building after the thieves broke into the Dean`s office b. $15,000 damage to a locked safe, which was broken into c. None of the above are covered d. $2,000 in money taken from a vault

D. Conducting sales work outside of the agent's office

A Customer Representative's authority does not include: A. Performing preliminary work to assist in processing claims B. Binding new and additional coverages C. Taking insurance applications, giving quotes, interpreting policies and giving insurance advice D. Conducting sales work outside of the agent's office

A

A Customer Representative's authority does not include: Choose one answer. a. Conducting sales work outside of the agent's office b. Binding new and additional coverages c. Taking insurance applications, giving quotes, interpreting policies, and giving insurance advice d. Performing preliminary work to assist in processing claims

Conducting sales work outside of the agent's office

A Customer Representative's authority does not include:. a. Conducting sales work outside of the agent's office

D

A Domestic Insurer is: Choose one answer. a. An insurance company formed in the Bahamas b. An insurer formed under the laws of any state, other than Florida c. An insurer formed in a country other than the United States d. An insurer formed under Florida laws, but which may provide insurance in other states

Unfair Insurance Trade Practices Act

A Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims without reasonable investigation, etc.

B. An insurer formed under the laws of any state, other than Florida

A Foreign Insurer is: A. An insurance company formed in the Bahamas B. An insurer formed under the laws of any state, other than Florida C. An insurer formed in a country other than the United States D. . An insurer formed under Florida laws, but which may provide insurance in other states

D

A Foreign Insurer is: Choose one answer. a. An insurance company formed in the Bahamas b. An insurer formed under Florida laws, but which may provide insurance in other states c. An insurer formed in a country other than the United States d. An insurer formed under the laws of any state, other than Florida

D

A General Lines Agent is: Choose one answer. a. A personal lines agent who has not complied with the continuing education requirements of the State of Florida b. One approved by a general lines agent to assist in transacting business of Private Passenger motor vehicles from the agency office c. One who is appointed by a general lines agent or agency to assist in transacting the business of the agency from the agency office d. One who may transact property insurance, casualty insurance, surety insurance, health insurance, and marine insurance in the State of Florida

D) Licensed customer service representative

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) Licensed customer service representative

Double Indemnity

A Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances.

A

A Hospital Indemnity Policy covers which of the following expenses? Choose one answer. a. A flat amount per day for hospital room and board b. Medical supplies c. Nursing care in the Insured's home d. Surgical fees incurred in the hospital

Fiduciary bond

A Judicial bond commonly used to bond fiduciaries: guardians, administrators, trustees and executors, or persons appointed by a court to manage the property of others.

Under the Medical Payments coverage, what are the limitations?

A basic limit of $5,000 per person, and it is also subject to General Aggregate, and an Each Occurrence limit.

D. Fiduciary Bond

A bond which guarantees the performance of one appointed by the Court such as a Guardian, is known as a: A. Performance Bond B. Public Official Bond C. License Bond D. Fiduciary Bond

A

A dealer who wishes to purchase coverage for products liability for damage to his own products would purchase which endorsement? Choose one answer. a. Broad Form Products b. Dealer Drive-Away Collision c. False Pretense d. A separate policy

C

A dealer who wishes to purchase physical damage coverage for loss from voluntarily parting with a covered auto by trick or scheme or from acquiring an auto from someone who does not have a legal title would purchase which endorsement? Choose one answer. a. Broad Form Products b. Dealer Drive-Away Collision c. False Pretense d. A separate policy

All of the following are found in the declarations section of a policy EXCEPT the

Exclusions

B. $45,000 building and $25,000 to the tenant's property

A fire occurred in an apartment building resulting in $20,000 fire and $25,000 smoke damage to the building, and smoke damage to property of the tenants in a total amount of $25,000. On the way to the fire, one of the fire trucks collided with a parked automobile and damaged it to the extent of $5,000. The apartment building's owner has a Special Form policy in sufficient amount, and the tenants all have HO4 policies in sufficient amounts to cover losses. What amount of insurance will be paid by the apartment building owner's and tenant's policy (disregard any deductibles)? Select one: A. $45,000 building, $25,000 to the tenant's property, and $5,000 collision damage by fire truck B. $45,000 building and $25,000 to the tenant's property C. $25,000 smoke damage to property of the tenants D. $45,000 building for fire and smoke damage to the building

Business Auto Coverage Form

A form, which is a part of the Commercial Auto Coverages and is designed to cover the auto exposures of businesses, other than truckers or garages.

Contract

A legal agreement between two parties promising a certain performance in exchange for a certain consideration.

What is Trailer Interchange Coverage?

A legal liability coverage provided under the Truckers policy. Provides coverage for damage to a specific trailer under the policy of the trucker in whose possession the trailer is at the time of loss, provided the trucker is liable for the damage under a written interchange agreement and the damage is caused by a covered peril.

Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is

A mutual insurer Mutual companies are owned and controlled by their policyholders. Any surplus money is returned to the policyholders dividends

Extra expense coverage form

A newspaper office in FL is completely destroyed by a covered peril and must immediately relocate while a new building is under construction, what type of commercial property form will cover for this expense to maintain their uninterrupted operations?

C

A product purchased in the U.S. subsequently injured a claimant in Europe. Which of the following best explains the merchant's coverage under his Product's Liability coverage? Choose one answer. a. Covered only if the policy is endorsed to provide European coverage b. Not covered as product was out of the physical possession of the insured c. Covered if any suits are brought in the U.S. or one of the covered territories d. No coverage as loss was outside the U.S.

Warranties

A specific agreement between the insured and the insurer that certain conditions will be met. This agreement becomes a party of the policy.

The dec page of the HO policy provides all of the following info, EXCEPT

A statment that earthquake damage is not covered

What's the difference between a fidelity bond and a surety bond?

A surety bond guarantees something will happen; a fidelity bond guarantees something will not happen

If an insurance company makes a statement that it's policies are guaranteed by the existence of the insurance Guaranty Association, that would be considered

An unfair trade practice

A

A tenant-insured, with $100,000 coverage on "Your Business Personal Property" only, installed permanent fixtures to the owner's building (not legally subject to removal at the end of the lease) at the beginning of a 10 year lease at a cost of $20,000. A covered cause of loss occurred exactly 3 years after the effective date of the lease. The actual cash value of the fixtures, at the time of the loss, was $18,000. Assuming no other coverage issue, how much could the insurer pay for total loss of these fixtures if (a) they were promptly replaced by the insured; (b) they were never replaced? Choose one answer. a. (a) $18,000 actual cash value. (b) $14,000 ($20,000 x 7 years remaining in lease divided by 10 years from installation date to end of lease period). b. (a) $20,000 actual cash value. (b) $14,000 ($20,000 x 7 years remaining in lease divided by 10 years from installation date to end of lease period). c. (a) $20,000 actual cash value. (b) $20,000 actual cash value d. (a) $20,000 actual cash value. (b) $18,000 actual cash value

The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the

Exclusions

CONTINUING EDUCATION

AGENTS: licensed less than 6 years : 24 hours/24 months licensed more than 6 years: 20 hours/24 months CSR: 10 hours/24 months

Which is the following is the closest term to an authorized insurer?

Admitted

C. Replacement cost less physical depreciation

Actual Cash Value is best defined as A. Original cost less tax depreciation B. Replacement cost less tax depreciation C. Replacement cost less physical depreciation D. Original cost less physical depreciation

How often does an insurance agency license have to be renewed?

Actually, the license of an insurance agency shall continue in force until; cancelled, suspended, or revoked, or until it is otherwise terminated or expires by operation of law.

What internal limits of coverage may be increased?

Additional Expediting Expense; Water Damage; and Ammonia Contamination.

What are the supplementary payments under the Commercial General Liability policy?

Additional coverage, in addition to the policy limits: Generally, all costs of litigation are covered, including court costs, prejudgment interest, interest on judgments, and cost of bonds to release attachments. Further, up to $250 for cost of bail bonds for accidents or traffic law violations reimbursed if they arise from use of a vehicle covered by the policy.

Which of the following is true regarding branch agency licensing?

Agent in charge must be licensed

C

All automobile policies subject to the 'No-Fault' law include PIP coverage: Choose one answer. a. PIP coverage applies to both bodily injury and property damage claims b. PIP coverage only applies to property damage and related economic losses c. PIP coverage only applies to bodily injury and related economic loss d. PIP coverage only applies to bodily injury of the owner or operator of the vehicle

Which classes of risk are not eligible for a Commercial Package Policy?

All classes of risk are eligible for a Commercial Package policy except those that are eligible for homeowners insurance.

Under the Building and Personal Property Coverage form, what is 'Value Reporting'?

Allows the insured to temporarily over-insure at an amount somewhat higher than expected peak values. This amount is provisional, but it becomes the maximum amount of coverage. However, the insured makers periodic reports of value that are averaged, and premium is adjusted.

What is the definition of "occurrence"?

An accident, including continuous repeated exposure to substantially the same harmful conditions. It also includes faulty products that over time cause injuries.

A

An agent, customer representative or adjust who diverts or misappropriates funds belonging to an insurer or others (trust funds) may be held responsible as follows: Choose one answer. a. Any of the answers are correct b. If the diverted or misappropriated funds are hundred thousand dollars or more, the licensee can be charged with a first-degree felony c. If the diverted or misappropriated funds are $20,000 or more but less than $100,000, the licensee can be charged with a second-degree felony d. If the diverted or misappropriated funds are $300 or less, the licensee can be charged with a first-degree misdemeanor

A

An agent`s license is for the purpose of authorizing the licensee in good faith to engage in the insurance business. The license cannot be used for: Choose one answer. a. Receiving a rebate in the form of commission or other compensation for "controlled business" b. Receiving a rebate in the form of commission or other compensation for "controlled business" if licensed for motor vehicle physical damage only and employed by or associated with a motor vehicle sales or financing agency c. All of the answers are correct d. Receiving a rebate in the form of commission or other compensation for controlled business" if licensed for credit property insurance only and employed by or associated with a motor vehicle sales or financing agency

A

An appliance store sells a refrigerator to Mrs. Smith. The refrigerator is installed in Mrs. Smith's kitchen and after the installation had been completed, the refrigerator blows up catching fire and damaging the kitchen and injuring Mrs. Smith. The appliance store's Commercial General Liability policy covers? Choose one answer. a. Bodily Injury to Mrs. Smith and damage to the, kitchen but not the refrigerator b. All losses are covered c. Bodily Injury to Mrs. Smith only d. Bodily Injury to Mrs. Smith and damage to the, refrigerator, but not the kitchen

A. Bodily Injury to Mrs. Smith and damage to the kitchen but not the refrigerator

An appliance store sells a refrigerator to Mrs. Smith. The refrigerator is installed in Mrs. Smith's kitchen and after the installation had been completed, the refrigerator blows up catching fire and damaging the kitchen and injuring Mrs. Smith. The appliance store's Commercial General Liability policy covers? Select one: A. Bodily Injury to Mrs. Smith and damage to the kitchen but not the refrigerator B. All losses are covered C. Bodily Injury to Mrs. Smith and damage to the refrigerator, but not the kitchen D. Bodily Injury to Mrs. Smith only

Which of the following would NOT qualify as a hired auto?

An auto borrowed from an employee

B. No coverage under the Workers' Compensation policy

An employee was furnished a company automobile for his business and personal uses. While driving to a movie one evening, his automobile was struck by another vehicle at an intersection. The employee and two members of his family were injured. Which of the following statements is true? A. Workers' Compensation policy would pay for employee's injury under Part One and injuries to family members under Part Two (Employer's Liability) B. No coverage under the Workers' Compensation policy C. Workers' Compensation policy would pay for employee's injury D. All injuries would be covered by Part Two of the policy

A

An employee was furnished a company automobile for his business and personal uses. While driving to a movie one evening, his automobile was struck by another vehicle at an intersection. The employee and two members of his family were injured. Which of the following statements is true? Choose one answer. a. No coverage under the Worker's Compensation policy b. All injuries would be covered by Part Two of the policy c. Worker's Compensation policy would pay for employee's injury d. Worker's Compensation policy would pay for employee's injury under Part One and injuries to family members under Part Two (Employer's Liability) --...

Peril

An immediate danger, it threatens what needs to be insured

What is a "stock insurer"?

An incorporated insurer with its capital divided into shares and owned by its stockholders.

What is a "mutual insurer"?

An incorporated insurer without permanent capital stock, the governing body of which is elected in accordance with this part.

A

An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: The Company paid a $30,000 liability claim for fire damage to the building rented by the insured. What limit is available if the same type of loss should occur again at the same building? Choose one answer. a. $50,000 - limit applies per fire. b. $100,000, the each occurrence limits. c. $13,000 payable - maximum $5,000 per person d. General aggregate: $197,000 ($300,000 original less $103,000 paid to date). Products Aggregate: $300,000 (no claims paid).

A

An insured has an HO-3, no endorsements, with following limits: A - $70,000, B - $7,000, C - $35,000, D - $14,000. The policy has a $250 deductible ($500 deductible for windstorm/hurricane). What is the amount payable (if any) when: "A vacation residence in North Carolina owned by the insured burnt down. All the furniture, with an ACV of $5,000 was destroyed"? Choose one answer. a. $3,500 is payable - $5,000 loss less $250 deductible, but the limit on property usually located at a secondary residence is limited to 10% of the Coverage C limit. b. $4,750, but for full replacement cost settlement, the insured needed not less than 80% of the full replacement value as the coverage A limit ($125,000 x 80% c. Nothing is payable - the peril is generally excluded. d. $3,500 is payable. $5,000 less $250 deductible e. $100,000). f. $1,500 is payable- the loss less the deductible (limit on furs applies to theft losses).

Concealment

An insured intentionally did not disclose a material fact on an application for insurance

C. Will pay injuries to injured customer

An insured is a restaurant operator who carries a Commercial General Liability policy. The insured's premises include a parking area used for valet parking of customer's cars. An employee of the insured, while parking a customer's automobile, hit another automobile in the parking lot. In addition to damage to the automobile, a customer was injured while standing beside the damaged automobile. Which of the following describes how the insurer will respond? A. Will pay damage to customer's automobile B. Will pay nothing C. Will pay injuries to injured customer D. Will pay for injury to customer and damage to customer's automobile

C

An insured is a restaurant operator who carries a Commercial General Liability policy. The insured's premises include a parking area used for valet parking of customer's cars. An employee of the insured, while parking a customer's automobile, hit another automobile in the parking lot. In addition to damaging to the automobile, a customer was injured while standing beside the damaged automobile. Which of the following describes how the insurer will respond? Choose one answer. a. Will pay damage to customer's automobile b. Will pay for injury to customer and damage to customer's automobile c. Will pay injuries to injured customer d. Will pay nothing

B

An insured with a commercial property form, which covers a building for $500,000 and personal property for $150,000, purchases a building and its furniture at another location. What coverage, if any, is provided by the policy for this new purchase? Choose one answer. a. $100,000 on the building and $100,000 on its contents is automatically covered for a 30-day period. b. $250,000 on the building and $100,000 on its contents is automatically covered for a 30-day period. c. $500,000 on the building and $150,000 on its contents is automatically covered for a 30-day period. d. $500,000 on the building and $100,000 on its contents is automatically covered for a 30-day period.

C. The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy

An insured with coverage under a Commercial General Liability policy buys a new crane and immediately drives the crane on the highway to a job site. While driving on the highway, the insured had an at-fault accident. Which of the following describes how the insurer will respond? A. The insurer will deny the claim as the crane was operated on the highway under its own B. The insurer will pay the claim only if the insured has a Business Auto policy C. The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy D. The insurer will deny the claim because only specifically scheduled equipment is covered

B

An insured with coverage under a Commercial General Liability policy buys a new crane and immediately drives the crane on the highway to a job site. While driving on the highway, the insured had an at-fault accident. Which of the following describes how the insurer will respond? Choose one answer. a. The insurer will deny the claim as the crane was operated on the highway under its own power b. The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy c. The insurer will deny the claim because only specifically scheduled equipment is covered d. The insurer will pay the claim only if the insured has a Business Auto policy

A. Entire loss, less deductible (if applicable)

An insured with the Building and Personal Property form covering $100,000 on Personal property, left tools and equipment in a company van which was parked just outside (within 75 feet) of the building overnight. What would the insurer pay for a theft loss of tools from the van? A. Entire loss, less deductible (if applicable) B. No coverage C. Only $2,500 extension applies to personal property outside of building D. 10% of personal property limit would apply, up to $25,000

What is a Domestic insurer?

An insurer formed under the laws of this state.

What causes Bodily Injury and Property Damage and where must it take place?

An occurrence in the coverage territory.

Binder

An oral or written statement providing immediate insurance protection, valid for a specific period. designed to provide temporary coverage until a policy can be issued or denied.

If an insurance company makes a statement that it's policies are guaranteed by the existence of insurance Guaranty Association, that would be considered

An unfair trade practice

Under the Extra Expense Coverage form, how does the "Limits on Loss Payment" condition work?

Applies limits to recoveries depending upon the period of restoration.

What is the Claims-Made Form?

Applies to Bodily Injury or Property Damage which occurs on or after the "retroactive date," and for which the claim is received or recorded by an insured or the company during the policy period.

What is the Occurrence Form?

Applies to Bodily Injury or Property damage which occurs during the policy period, regardless of any later time at which a claim is made.

Which of the following is a method of claim settlement used when the insurer and insured cannot agree on how to settle a claim?

Arbitration

When a disagreement occurs as to how to settle a loss in a "fender bender" between two cars, what procedure is followed?

Arbitration through the court

C

Are agencies operating in Florida required to have a license? Choose one answer. a. An agency that has received a violation from the Department of Financial Services is required to be licensed b. No only agents are required to be licensed c. Yes, as of October 1, 2006 all agencies must file for licensure or registration d. None of the above

How is the disability class 'Permanent Impairment' compensated?

Are based on a medical impairment rating schedule, approved by the Division of Workers' Compensation. One the rating is assigned, the benefits are paid weekly at the rate of 75% of the employee's average weekly Temporary Total Disability benefit. The length of benefits is based on impairment percentage.

B

Are insured's able to keep their current agent if "taken out" of Citizens by an authorized insurer? Choose one answer. a. The insured does not get a choice on agents either with Citizens or an authorized "take-out" insurer b. The insured is able to retain their agent if appointed by the insurance risk apportionment plan c. The insured is able to retain their agent if appointed by the new insurer d. The insured must change their agent to one appointed by the new insurer

A

Are nonresidents required to have PIP coverage in Florida? Choose one answer. a. Typically, nonresidents are required to have this coverage on a defined motor vehicle, which has been present in the state at least 90 of the preceding 365 days. b. Nonresidents are subject to the financial responsibility law c. Nonresidents are only subject to the financial responsibility law if required in their resident state d. Nonresidents are not subject to the financial responsibility law

A

Are there any acceptable conditions in which a named insured is an entity under a homeowner's insurance policy? Choose one answer. a. No the named insured may not be an entity such as a corporation, partnership, estate or trust b. Yes, if an individual occupies the premises c. Yes, if the board members are over the age of 21 d. Yes, if an owner occupied condominium unit owner

C

Are there exclusions under PIP for which benefits could be denied? Choose one answer. a. Persons operating the insured vehicle without the insured's consent b. Named insured and relatives while occupying a motor vehicle owned by the insured that is not covered under the policy c. All of the answers are correct d. Persons who intentionally inflict self-injury

Personal Inland Marine Policies: Specific property floaters can be initiated for the following personal coverages: 1. Cameras 2 Fine A___ 3. G_____ Equipment 4. J______ and Furs 5. M______ Instruments 6. Stamp and Coin Collections 7. Silverware General Property Floaters can be issued for: 1. Personal E______ 2. Personal P_______

Arts Golfer's Jewerly Musical Effects Property

How is a MEWA regulated?

As a risk-bearing entity, and they require a Certificate of Authority from the Department of Insurance.

How does the FL insurance code define a MEWA?

As an employee welfare benefit plan or other arrangement that is established or maintained to provide one or more of various insurance benefits to the employees of two or more employers.

Under the Building and Personal Property Coverage form, how is debris removal covered?

As long as loss is covered, pays up to 25% of the amount paid for loss to the covered property plus the deductible that applies to the loss. If the limit of coverage as been exhausted before allowance for debris removal, or if the debris removal expense exceeds the 25%, an additional $10,000 for each occurrence at each location is provided.

C

Assume, for each of the following, the insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 (no retroactive date) and 2003 (retroactive date 1-1-02). If there were a BI or PD occurrence in 2001 from a covered occurrence and the claim was made in 2002, which policy or policies (if any) apply if the 2002 claims-made policy contained no retroactive date? Choose one answer. a. All of the policies would apply b. 2001 occurrence policy applies (occurrence form applies to BI/PD which occurs during the policy term). The 2002 claims-made policy does not apply because the occurrence happened before retroactive date. c. The occurrence policy would still apply and the 2002 claims-made policy would also apply (with no retroactive date, it applies to claims for all prior occurrences if first made during its term) d. The 2003 claims-made policy applies (occurrence after retroactive date, claim fist made during its term). The 2002 claims-made policy does not apply because it has expired and nothing has happened to invoke the basic extended reporting period.

In equipment breakdown coverage, all accidents would be considered a single accident if they occur

At a single location at the same time and from the same cause

When is work deemed completed?

At the earliest of either; 1) Work completed; 2) Work completed at one site if contract calls for more than one site; 3) Work done and put at intended use.

Insurable interest in the property covered in a policy must be proven

At the time of the loss

The dwelling forms offer several options to alter coverage: 1. An "A______ I_______ in I_________" endorsement may be purchased specifying an additional percentage of increase(4 percent or higher) applying to Coverages A and B. The percentage purchase is automatically prorated throughout the policy term without the need for the insurer to issue an endorsement. 2. Property not covered for w________ and h___ may be specifically included. 3. The "B_______ O________ or L__" endorsement may be attached to add coverage on the DP-1 form. The automatic coverage on the DP-2 or DP-3 forms may be increased over the automatic 10 percent coverage. 4. Condominium unit owners may purchase coverage for assessments imposed by the condominium's association because of damage to common elements of buildings, additions or alterations from a peril covered by the condominium unit owner's policy. 5. The policy may be endorsed to cover business p______ p_______ if a business is conducted in the dwelling. 6. The policy may be endorsed to cover t____ including attempted theft, and vandalism and malicious mischief that result from theft or attempted theft.

Automatic Increase in Insurance windstorm hail Building Ordiance or Law personal property theft

The EPL makes an Extended Reporting Period available for how many years?

Available for Three years at an additional charge.

Describe "admitted aircraft liability" in an aviation policy. Choose one answer. a. A coverage written as an adjunct to passenger liability. b. All of the answers are correct c. Coverage is not applicable to passengers carried for hire. d. It provides for principal sum payments for death or dismemberment if the named insured requests it and the company is released from further liability.

B

Describe the medical payments coverage. Choose one answer. a. Coverage is provided for medical, surgical, ambulance, hospital, etc. b. All of the answers are correct c. Coverage is provided while in, entering into, or alighting from the aircraft. d. Provides medical expenses for bodily injuries by accident, without regard to legal liability.

B

Explain what an aircraft "in motion" means. Choose one answer. a. "In motion" includes in flight b. Both of the answers are correct c. None of the answers are correct d. The most common definition of "in motion" is while the aircraft is moving under its own power or momentum generated there from

B

How are aircraft hull policies valued? Choose one answer. a. Most aircraft hill policies are "valued" policies b. Both of the answers are correct c. None of the answers are correct d. Some policies are written on an actual cash value or replacement cost basis

B

Is there a difference in the deductibles for hull coverage when an aircraft is "in motion" or "not in motion"? Choose one answer. a. A deductible normally applies for "in motion" coverage, normally expressed as a percentage of the value; 2-1/2%, 5% and 10% are the most common. b. Both of the answers are correct c. The "not in motion" basis may not require a deductible d. None of the answers are correct

B

What are common options for hull coverage? Choose one answer. a. All Risk coverage in flight, all risk coverage not in flight, or all risk coverage both b. Named peril coverage in flight, all risk coverage not in flight, or all risk coverage both c. Named peril coverage in flight, or all risk coverage both d. Named peril coverage in flight, named peril coverage not in flight, or all risk coverage both

B

What are the territorial limits of the aircraft liability policy? Choose one answer. a. In Florida, it is not uncommon to have the Bahamian Islands included by endorsement. b. All of the answers are correct c. Usually the United States, Canada and Mexico d. Often coverage in Mexico is limited to within 100 miles of the United States border.

B

Which statement is true concerning Liability coverage in a Personal Auto Policy? A. It is excess in owned autos B. It gives coverage only to those with the status of insured C. It provides for unlimited wage loss coerage D. The minimum required for financial responsibility is $10,000 property damage.

B

Which of the following should NOT be covered under the liability section of a personal auto policy?

BI is caused by the insured's negligence while driving a three-wheel all- terrain vehicle

What is the basic limit that applies to each occurrence for Bodily Injury and Property Damage?

Basic limit of $100,000 (although higher and lower limits are available).

In return for premium, an insurance company must

Be fair in underwriting and pay covered loss

What is the definition of Products and Completed Operations liability?

Because of defects in its products or completed operations, this exposure includes all bodily injury and property damage occurring away from premises the insured owns or rents and arising out of the insured's products or work except products still in the insured's physical possession or work that has not been completed or abandoned.

Under the Business Income Coverage form, when does the period of restoration begin and end?

Begins 72 hours after direct damage, considered a deductible. It ends 1) When the damaged property could be repaired, rebuilt, or replaced with reasonable speed, or 2) the business resumes operations at a new permanent location.

Which is NOT and example of a CGL personal injury?

Bodily injuries

List some of the types of objects that are insurable:

Boilers, Refrigerating Equipment, Air Conditioning Equipment, Generators, Pumps, Engines, Machinery, Compressors, Transformers, and Turbines to name a few.

Surety bond

Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party

The six differnet homeowner's forms which are most frequently referred to simply by number are: HO-2 B____ Form HO-3 S_____ Form HO-4 C_______ Form (aparmtent dwellers coverage) HO-5 C___________ Form HO-6 The U___ O_____ From (condominium or cooperative apartment owners coverage) HO-8 M________ C_______ From

Broad Specail Contents Comprhensive Unit Owner Modified Coverage

B

Building coverage under the business owner`s program has all the following features except? Choose one answer. a. Appurtenant structures are covered under the main building coverage limit b. Unconditional replacement cost c. Inflation guard endorsement d. All of the features are included

For a mercantile, wholesaler, service, or processing risk to be eligible for for a Businessowners policy, what are the qualifications?

Building not over 25,000 square feet. Cannot exceed $3 million gross sales at any insured location. No more than 25% of annual gross sales derived from off-premises operations.

What are the three general types of property covered by Building and Personal property coverage form?

Building, your business personal property, and personal property of others.

What types of property are covered by the Businessowners policy?

Buildings and Business Personal Property.

For an office or office condo association to be eligible for for a Businessowners policy, buildings cannot exceed what size? and office tenants cannot occupy over what size?

Buildings cannot be over 6 stories and not over 100,000 square feet. Office tenants: Not over 25,000 square feet in a single building.

The crime of forced entry into premises of another by a person or persons with felonious intent is defined as a

Burglary

The crime of forced entry into the premises of another by a person or persons with felonious intent is defined as a

Burglary

Section II exclusions excluded coverage for: 1. B_______ pursuits 2. M_______ l___ vehicles 3. W________ including w______ while stored

Business Motorized land vehicle Watercraft

C. Net profit/loss before taxes including continuing normal operating expenses

Business Income is defined as which one of the following? Select one: A. Net profit/loss after taxes excluding continuing normal operating expenses B. Net profit/loss before taxes excluding continuing normal operating expenses C. Net profit/loss before taxes including continuing normal operating expenses D. Net profit/loss after taxes plus continuing normal operating expenses

D

Business Income is defined as? Choose one answer. a. Net profit/loss after taxes plus continuing normal operating expenses b. Net profit/loss after taxes excluding continuing normal operating expenses c. Net profit/loss before taxes excluding continuing normal operating expenses d. Net profit/loss before taxes including continuing normal operating expenses

C

Business income and extra expense coverage under the business owner`s policy offers all the following except? Choose one answer. a. Covers the same perils as apply to the building and contents b. Up to 12 months of interruption in business c. Limited dollar amount d. Covers loss of profits and loss of rents

In addition to general policy exclusions are there any specific exclusions, which apply to hull insurance? Choose one answer. a. All of the answers are correct b. Coverage excludes injury to the named insured or an employee. c. No coverage for loss caused by conversion, embezzlement or secretion by any lessee or any other person in possession of the aircraft under a bailment lease, conditional sale, mortgage, or other encumbrance. d. Maintained for any purpose other than the use classification permitted in policy declarations.

C

The special aviation coverage, which provides manufacturers and sales or repair organizations with liability coverage attributable to defective products or work, is called? Choose one answer. a. Hanger keeper's liability Airport and air meet liability b. Cargo Liability c. Products liability

C

What do named peril policies include in aircraft hull policies? Choose one answer. a. Any or all of the following coverages: fire, stationary land damage, windstorms, and crash insurance. b. Any or all of the following coverages: stationary land damage, windstorms, crash insurance and theft. c. Any or all of the following coverages: fire, stationary land damage, windstorms, crash insurance and theft. d. Bodily injury liability (excluding passenger liability), passenger liability and property damage liability insurance.

C

C.A. - Symbol 9

C.A. - Non-owned autos only. Liability only. Covers autos the named insured does not own, lease, hire, rent, or borrow except from an employee or family member.

C.A. - Symbol 2

C.A. - Owned auto only. May be applied to Liability, Medical Payments, UM, and Physical Damage. Automatic coverage, no requirement to report replacement.

C.A. - Symbol 4

C.A. - Owned autos other than private passenger autos only. All coverages except PIP. Automatic coverage.

C.A. - Symbol 5

C.A. - Owned autos subject to No-Fault/PIP only. Automatic coverage.

C.A. - Symbol 6

C.A. - Owned autos subject to a compulsory UM law, not used in Florida.

C.A. - Symbol 3

C.A. - Owned private passenger autos only. All coverages except PIP. Automatic coverage.

C.A. - Symbol 7

C.A. - Specifically described autos. Any coverage. Acquired auto during the policy period if the insured notifies within 30 days of acquisition either 1) The insured already insures on this policy all autos they own. OR 2) The auto replaces a covered auto.

CONTROLLED BUSINESS vs UNCONTROLLED BUSINESS

CONTROLLED: means the agent is selling to those people the agent has an interest or a financial influence over - like family members UNCONTROLLED: the agent must have 51% or higher of their business from uncontrolled business - meaning new business / new customers

Under the EPL (Employement-Related Practices Liability) program, who can be an insured?

Can be an individual, partnership or joint venture, LLC, organizations, and employees who hold managerial or supervisory positions.

What does the insurer need to transact insurance in the state of Florida?

Certificate of Authority

Section II has four (4) "Additional Coverages": 1) C____ Expenses: The insurer pays the cost of d_____, premiums on appeal bonds, i______ on judgements, prejudgement interest and r__________ to the insured of expenses to aid in defence including up to $___ per day for loss of earnings.

Claim defense interest reimbursement $250

What does Personal and Advertising Injury cover?

Claims against the insured for false arrest, detention or imprisonment, malicious prosecution; wrongful entry or eviction; and oral or written publications that libel, slander, or violation of rights of private occupancy, plus misappropriation of advertising ideas or style of doing business or infringement of copyright, title or slogan.

Endorsements

Conditions or coverages that are added or removed from other parts of the policy. May broaden or narrow coverage.

Something of value exchanged between the insurer and the insured is consider an

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium, it is know. As which of the following?

Consideration

When an insured makes truthful statements on the application for insurance and pays the requirement premium, it is known which of the following?

Consideration

The at fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all damage done to the insured. This driver is

Considered underinsured

Section I in each of the h_______ forms are divided into subsections: C________, P_____ I______ Against; E_______; and C________

Coverage Perils Insured Exclusions Conditions

A

Coverage B 'Other Structures' under a homeowner's policy does not cover which of the following? Choose one answer. a. Guest house regularly rented to a friend for the summer b. Detached garage c. Tennis courts d. Detached garage rented solely for private garage purposes

In DP, automatic Increase in insurance is

Coverage by endorsement

A

Coverage for Computer Fraud is purchased by the insured. Which one of the following amounts will not be paid if the amount of coverage is $50,000? Choose one answer. a. A $10,000 loss to the computer b. A computer was used to transfer $10,000 from the bank account of the insured c. A computer was used to fraudulently transport $25,000 in money to England d. A computer was used to transfer $15,000 from the company account to an employee`s account

Under the Building and Personal Property Coverage form, when covered property is taken elsewhere to protect it from a covered cause of loss, what does the additional coverage, 'Preservation of Property' provide, and for how many days.

Coverage includes any damage in the course of moving the property and while it is at a temporary location, for 30 days.

Which of the following is NOT true about earthquake coverage?

Coverage is commonly provided through a federally- funded program

What are the similarities and differences between the Businessowners policy and the Commercial General Liability coverage form?

Coverage is parallel to each, however, on the Businessowners Liability coverage form: 1) Coverage is per occurrence with no claims-made option; 2) If the insured does not have a Business Auto policy, coverage for liability arising out of hired or nonowned autos can be purchased through an endorsement to the Businessowners Policy; 3) If the policy is issued to a drugstore, druggist's professional liability is included. (whereas, it is excluded under a CGL).

What type of insurance can be obtained through a surplus lines insurer?

Coverage that is unavailable through authorized insurer

Aircraft Liability Insurance

Coverage written to cover public and passenger liability and property damage liability.

What does part two of the Workers Compensation policy cover?

Covers Employers Liability, such as 1) Claims by employers not subject to WC; 2) Claims by others for the liabilities to insured's employees; 3) Claims by relatives of injured employees for consequential damages.

What does the Extra Expense Coverage form cover?

Covers businesses that cannot have any prolonged interruption due to irreparable harm to the business.

What does the Lawyers Professional Liability Form cover?

Covers for acts or omissions of the insured in rendering professional services as a lawyer, including activities as an administrator, conservator, executor, guardian, trustee or similar fiduciary responsibilities.

What does the Hospital Professional Liability Form cover?

Covers liability of the insured for "medical incidents" that, in this form, are defined as acts or omissions in the furnishing of professional health care services, and arising from service by members of the named insured's professional boards or committees.

What does the Builders Risk Coverage form cover?

Covers the building in the course of being constructed.

What does the Legal Liability Coverage form cover?

Covers the insured for negligently damaging property owned by others, but that is in the insured's care, custody, or control.

What is included for building coverage under the Building and Personal Property Coverage form?

Covers the structure described in the Declarations, including completed additions; fixtures, including outdoor fixtures; permanently installed machinery and equipment; personal property to service the premises including fire extinguishers, outdoor equipment; floor coverings; and refrigerating, ventilating, cooking, dishwashing and laundering appliances. If not otherwise covered, also includes additions under construction and alterations and repairs, including materials, equipment, supplies and temporary structures on or within 100 feet of the premises.

Who is insured when the insured's legal status is an 'Organization'?

Executive officers, directors and stockholders are insured in their status as such.

ACV OR ACTUAL CASH VALUE

Current Cost to replace the item less an allowance for depreciation

A unique feature in a Bailee form is that it covers

Customers' property wether or not the insured has been negligent

Coverage written to protect the insured's liability for damage to aircraft stored for safekeeping or repair is called? Choose one answer. a. Airport and air meet liability b. Cargo liability c. Product liability d. Hanger keeper's liability coverage

D

FL UM law requires that every auto policy that provides primary liability coverage for a specific motor vehicle must include "stacked" UM at the same limits as apply coverage, unless the insured, in writing A. rejects the UM coverage B. Electa UM coverage at limits than those that apply to liability C. Elects "non-stacked" UM coverage D. Any of those above

D

What are some important exclusions found in all aircraft policies? Choose one answer. a. An aircraft is not covered while being maintained for any purpose other than the use classification in the policy declarations b. An aircraft is not covered while in flight if operated by a pilot not named in the declarations c. There is no coverage if the aircraft is not registered under a standard category airworthiness certificate d. All of the answers are correct

D

What underwriting considerations should be noted in an aircraft insurance policy? Choose one answer. a. Age and condition of the aircraft b. Pilots- qualifications and experience c. Size-light or heavy aircraft d. All of the answers are correct

D

Add'l coverages in the liability section of homeowners policy cover all is the following EXCEPT

Damage to a third- party property for which the insured is legally liable

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declarations

D

Define "false claims or obtaining or retaining money dishonestly". Choose one answer. a. While insolvency or impairment exists, no director or officer of any insurer is allowed to permit the insurer to except or solicited new or renewal insurance risk. b. Includes advertising, offering or providing free insurance as an inducement to the purchase or sale of real or personal property or of services directly or indirectly connected with such real or personal property. c. Representing to the applicant in conjunction with the purchase of motor vehicle insurance that a specific ancillary coverage or product is required when said coverage or product is not required. d. Any agent who represents to any insurer a false claim for payment, knowing the claim to be false is guilty of a second-degree misdemeanor.

D

Define "injury" under the worker's compensation law. Choose one answer. a. An unexpected or unusual event or result happening suddenly. b. Disability or death due to the habitual use of alcohol or drugs c. Mental of nervous injury due to fright or excitement only d. Personal injury or death by "accident" arising out of "work performed in the course of employment. --...

D

Define "self-insurance". Choose one answer. a. Any person engaged in the business of insurance or annuities. b. Any program approved by the Florida Department of Financial Services. c. Includes any contract where one party agrees to indemnify (restoring to the approximate financial condition prior to a loss) another party after a loss. d. Includes any plan established by an entity that is not an insurer with the intent of indemnifying an employee or their beneficiary for benefits in the event of sickness, accident, disability or death.

C

Define "sliding". Choose one answer. a. Includes advertising, offering or providing free insurance as an inducement to the purchase or sale of real or personal property or of services directly or indirectly connected with such real or personal property. b. While insolvency or impairment exists, no director or officer of any insurer is allowed to permit the insurer to except or solicited new or renewal insurance risk. c. Representing to the applicant in conjunction with the purchase of motor vehicle insurance that a specific ancillary coverage or product is required when said coverage or product is not required. d. Any agent who represents to any insurer a false claim for payment, knowing the claim to be false is guilty of a second-degree misdemeanor.

B

Define Cargo coverage in Ocean Marine Insurance. Choose one answer. a. Coverage for loss of or damage to the vessel for perils of fire, lightning, earthquake, assailing thieves, "perils of the seas", jettisons, barratry of the master or mariners and "all other like perils." b. The coverage for loss or damage to goods. c. Provides protection for the vessel owner in the event freight charges are not paid. d. Covers the risk that the ship will collide with another vessel.

B

Define Liability coverage in Ocean Marine Insurance. Choose one answer. a. Coverage for loss of or damage to the vessel for perils of fire, lightning, earthquake, assailing thieves, "perils of the seas", jettisons, barratry of the master or mariners and "all other like perils." b. Covers the risk that the ship will collide with another vessel. c. Provides protection for the vessel owner in the event freight charges are not paid. d. The coverage for loss or damage to goods.

D

Define a named insured under a homeowner's insurance policy. Choose one answer. a. A spouse separated from the named insured but not divorced b. Any person under the age 18 in the care of any such person. c. A relative of either a person named in the policy or a spouse d. The person named in the policy

A

Define bodily injury (BI). Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. Including sickness or disease of death resulting from physical harm d. Physical harm

D

Define casual labor under the worker's compensation law. Choose one answer. a. Any work that is not in the course of the employer's normal business b. Work that is to be completed in not over 6 days at a total labor cost of less than $500, and where the work is not in the course of the employer's normal business c. Work that is to be completed in not over 10 days at a total labor cost of less than $100, and where the work is not in the course of the employer's normal business d. Work that is to be completed in not over 10 days at a total labor cost of less than $500, and where the work is not in the course of the employer's normal business --...

B

Define property damage (PD). Choose one answer. a. Physical injury to intangible property b. Physical injury to tangible property c. Both of the answers are correct d. None of the answers are correct

C

Define the Extra Expense Coverage Form. Choose one answer. a. A coverage, which reimburses the insured for any expenses, incurred to maintain uninterrupted operations, during the period of restoration. b. A coverage, which reimburses the mortgage holder for extraordinary expenses, incurred to maintain uninterrupted operations, during the period of restoration. c. A coverage, which reimburses the insured for extraordinary expenses, incurred to maintain uninterrupted operations, during the period of restoration. d. A coverage, which reimburses the insured for extraordinary expenses, incurred to maintain uninterrupted operations.

B

Define the discovery coverage forms. Choose one answer. a. Any loss discovered during the policy period or within 30 days after its expiration is covered regardless of when it occurred. b. Any loss discovered during the policy period or within 60 days after its expiration is covered regardless of when it occurred. c. Only losses that both occurred and were discovered during the policy period are covered d. Only losses that both occurred and were discovered during the policy period or within one year of its expiration are covered (including losses that occurred under (expired) policies as long as coverage had not been interruption)

D

Define the loss sustained crime coverage forms. Choose one answer. a. Any loss discovered during the policy period or within 60 days after its expiration is covered regardless of when it occurred. b. Any loss discovered during the policy period or within 30 days after its expiration is covered regardless of when it occurred. c. Only losses that both occurred and were discovered during the policy period are covered d. Only losses that both occurred and were discovered during the policy period or within one year of its expiration are covered (including losses that occurred under (expired) policies as long as coverage had not been interruption)

D

Define the term "insurer". Choose one answer. a. Includes any contract where one party agrees to indemnify (restoring to the approximate financial condition prior to a loss) another party after a loss. b. Any program approved by the Florida Department of Financial Services. c. Includes any plan established by an entity that is not an insurer with the intent of indemnifying an employee or their beneficiary for benefits in the event of sickness, accident, disability or death. d. Any person engaged in the business of insurance or annuities.

D

Define the term Insurance. Choose one answer. a. Any person engaged in the business of insurance or annuities. b. Any program approved by the Florida Department of Financial Services. c. Includes any plan established by an entity that is not an insurer with the intent of indemnifying an employee or their beneficiary for benefits in the event of sickness, accident, disability or death. d. Includes any contract where one party agrees to indemnify (restoring to the approximate financial condition prior to a loss) another party after a loss.

What is the definition of "injury"?

Defined to mean personal injury or death by accident arising out of work performed in the course of employment.

C

Defined vehicles subject to the 'No-Fault' law include: Choose one answer. a. Governmentally owned vehicles used in mass transit if transporting more than five passengers b. All of the answers are correct c. Motor vehicles which are self-propelled with four or more wheels and which are required to be licensed d. Mobile homes

Employment practices liability insurance EPLI would not cover claims arising from

Deliberate law violation

Witch of the following authorities grants and revokes licenses?

Department of Financial Services

In FL , the financial Responsibility law is administrated by

Department of highway safety and motor vehicles

An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the policy term to make sure suficiente premium has been collected for the exposure she plans to insure which condition is part of the insured's policy?

Deposit premium audit

D

Describe Accounts Receivable coverage. Choose one answer. a. "All Risk" coverage b. Covers extra collection expenses, costs to reestablish records and interest on any loans the insured must obtain to stay in business while collections are impaired. c. Reimburses the insured for amounts which can't be collected from customers due to covered damage to the accounts receivable records d. All of the answers are correct

D

Describe Trailer Interchange coverage. Choose one answer. a. Legal liability b. Covers the perils of Comprehensive, Specified Perils or Collision c. For damage to trailers owned by others d. All of these are correct

C

Describe Valuable Papers coverage. Choose one answer. a. "All Risk" coverage b. Reimburses the insured for the cost of replacing damaged manuscripts, films, maps, drawings, deeds, books, or other printed, inscribed or written documents other than money or securities. c. All of the answers are correct d. Covers research as well as actual production costs.

A

Describe a Bailees Customers policy. Choose one answer. a. All of the answers are correct b. Reimburses the insured for damage to customer's property in his or her care c. Provided damage resulted from a peril insured against d. Whether or not the insured is liable for the damage

A

Describe a Contractors Equipment floater. Choose one answer. a. All of the answers are correct b. Covers heavy machinery, equipment and tools c. An uncontrolled form d. Coverage is provided at the job site, on the way to and from a job site, and while the equipment is temporarily stored.

C. All of these answers are correct

Describe a MEWA (Multiple-Employer Welfare Arrangement. A. MEWAs (Multiple-Employer Welfare Arrangement), are regulated as risk-bearing entities by the Florida Insurance Code. B. MEWAs are defined as an arrangement that is established or maintained to provide one or more various insurance benefits (health insurance) to the employees of two or more employers. C. All of these answers are correct D. MEWAs require a Certificate of Authority from the Department of Insurance.

B

Describe a MEWA (Multiple-Employer Welfare Arrangement.) Choose one answer. a. MEWAs are defined as an arrangement that is established or maintained to provide one or more various insurance benefits (health insurance) to the employees of two or more employers. b. All of the answers are correct c. MEWAs (Multiple-Employer Welfare Arrangement) are regulated as risk-bearing entities by the Florida Insurance Code. d. MEWAs require a Certificate of Authority from the Department of Insurance.

A

Describe an Annual Transit policy. Choose one answer. a. All of the answers are correct b. Coverage is available on a named perils or "all risks" basis c. It is an uncontrolled form d. It protects the shipper or receiver of goods against loss to goods in transit.

A

Describe an Installment Sales floater. Choose one answer. a. All of the answers are correct b. If written for the seller's interest only the form pays off the unpaid balance following a loss c. Covers property sold on an installment basis. d. If written for both buyer and seller, the full value of the insured items is paid

A

Describe disability benefits under the worker's compensation law. Choose one answer. a. Both of the answers are correct b. Compensation for such "wage loss", being the difference between post-injury (if any) and pre-injury wages. c. Means incapacity because of the injury to earn in the same or any other employment the wages that the employee was receiving. d. None of the answers are correct --...

A

Describe medical expenses under the worker's compensation law. Choose one answer. a. All of the answers are correct b. Expenses such as medicines, crutches, artificial members and other apparatus. c. The employer is to furnish any required medical treatment d. The employer is to furnish care and attendance under a qualified physician or surgeon or other recognized practitioner, nurse or hospital --...

B

Describe one goal of ERISA. Choose one answer. a. To allow employers to provide a more affordable health insurance plan. b. To encourage individual employers to establish employee health plans for that employer's employees and dependents c. To allow employers to self-insure without being subject to state regulation. d. To encourage employers to fund and bear the financial responsibility for the covered health claims of its own participating employees

What are the coverage extensions under Part A?

Expediting Expenses, Automatic Coverage, Defense, and Supplementary Payments.

B

Describe section II, liability coverage in a homeowner's policy. Choose one answer. a. Neither answer is correct b. Both answers are correct c. Coverage F - Medical Payments to Others pays for medical and other related expenses for members of the public. d. Coverage E - Liability protects the insured from legal liability for bodily injury or property damage to others.

B

Describe the "Need for Adequate Insurance" clause in the builder's risk coverage form. Choose one answer. a. Is similar to a 100% coinsurance requirement b. All of the answers are correct c. Loss x Limit of insurance divided by completed value. d. Provides the insurer is only responsible for the proportion of any loss which the limit of insurance bears to the value at completion

A

Describe the Condominium Association Form. Choose one answer. a. Both of the answers are correct b. It insures a condominium association against direct physical loss of damage to buildings c. None of the answers are correct d. It insures a condominium association against direct physical loss of damage to business personal property of others in the care, custody or control of the association

B

Describe the Condominium Unit-Owners Form. Choose one answer. a. It covers the unit-owner's business personal property and the personal property of others in the insured's care, custody or control. b. All of the answers are correct c. It is designed for the owner of a condominium. d. It is used only for commercial, not residential, condominiums.

D

Describe the Coverage B subsection of coverages in a homeowner's insurance policy. Choose one answer. a. "Personal property" covers personal property, wherever it is located, that is owned or used by the named insured, the named insured's relatives, and any other person under 21 who resides in the named insured's household. b. All of the answers are correct c. Dwelling covers the dwelling building and structures attached; also construction materials and supplies on or adjacent to the premises. d. "Other structures" covers private structures on the residence premises that are not attached to the main dwelling, such as a detached garage, guest house, fence, tennis court or storage building.

B

Describe the Legal Liability Coverage Form. Choose one answer. a. Covers the insured for negligently damaging property owned by others b. All of the answers are correct c. Previous forms referred to this coverage as Fire Legal Liability. d. Other's property must be in the insured's care, custody or control.

D

Describe the coverage C subsection of coverages in a homeowner's insurance policy. Choose one answer. a. All of the answers are correct b. Dwelling covers the dwelling building and structures attached; also construction materials and supplies on or adjacent to the premises. c. "Other structures" covers private structures on the residence premises that are not attached to the main dwelling, such as a detached garage, guest house, fence, tennis court or storage building. d. "Personal property" covers personal property, wherever it is located, that is owned or used by the named insured, the named insured's relatives, and any other person under 21 who resides in the named insured's household.

D

Describe the coverage D subsection of coverages in a homeowner's insurance policy. Choose one answer. a. "Other structures" covers private structures on the residence premises that are not attached to the main dwelling, such as a detached garage, guest house, fence, tennis court or storage building. b. "Personal property" covers personal property, wherever it is located, that is owned or used by the named insured, the named insured's relatives, and any other person under 21 who resides in the named insured's household. c. Dwelling covers the dwelling building and structures attached; also construction materials and supplies on or adjacent to the premises. d. "Loss of Use" covers increases over normal living costs if damage from a covered peril make the residence unfit for occupancy.

A

Describe the deductible in a Boiler and Machinery Insurance Policy. Choose one answer. a. All of the answers are correct b. The deductible is deducted from the amount, which would otherwise be paid for each accident c. If more than one object is involved in a single accident, the highest deductible applies. d. The standard deductible is $500; higher deductibles are optional

B

Describe the effect of the "Known Loss Rule" on the CGL policy. Choose one answer. a. If the insured knew that BI or PD had occurred before the CGL effective date, then any known or unknown continuation of that BI or PD during or after the CGL policy period would be considered a know loss and excluded b. Both of the answers are correct c. None of the answers are correct d. Insuring agreements now impose coverage restrictions with respect to known injury or damage

A

Describe the mortgage holder's condition. Choose one answer. a. All of the answers are correct b. The mortgage holder will receive advance notice of cancellation or nonrenewal of the policy c. The mortgage holder must pay premiums and prompt submits proof of loss for any claim if the insured fails to do so d. The protection of the mortgage holders will not be impaired by acts or omissions of the insured

C

Describe the vacancy condition. Choose one answer. a. Any covered loss not excluded is reduced by 15% if the building was vacant for more than 60 consecutive days prior to a loss b. Coverage for vandalism, sprinkler leakage, building glass breakage, water damage, and theft or attempted theft are not covered if the building was vacant for more than 60 consecutive days prior to a loss c. Both of the answers are correct d. None of the answers are correct

A

Describe the valuation condition. Choose one answer. a. All of the answers are correct b. Payment is made on an actual cash value basis c. If the replacement value of a building loss is $2,500 or les, full replacement cost is paid if the insured is in compliance with the coinsurance clause d. Tenant's improvements and betterments, if not promptly repaired after loss, are covered without regard to their tangible value based on a formula

Insured

Describes what parties are insured. The person named in the Declarations and relatives by blood or marriage residing in the same household.

A beautiful parlor burns to the ground, what type of loss is this to the owner?

Direct

What term includes damages where the insured peril was the proximate cause of loss?

Direct loss

A waiver of premium provision may be included with which kind of health insurance policy?

Disability income

B

Does Citizens provide coverage for any commercial properties? Choose one answer. a. Both of the answers are correct b. Citizens provides a commercial property market for condominium associations, apartment buildings, common elements of homeowner's associations and other commercial coverages for residences. c. Eligible risks may be covered using standard homeowner forms (HO-2, 3, 4 and 6) and dwelling forms (DP-1, 2 and 3). Not all coverages or endorsements are available. d. None of the answers are correct

What are some other exclusions found under the basic Workers Compensation policy?

Does not cover the insured's liability under federal laws/acts, but may be endorsed to provide such coverage, and in general, the policy does not cover benefits that are provided under another policy, or that are self-insured.

D

Does the commercial property policy contain a subrogation clause? Choose one answer. a. Yes, anyone who receives payment under the policy transfers to the insurer any rights against others to the extent of the payment b. Such waiver must be in writing and prior to the loss, except it may be after the loss if the waiver is given to another insured, a related business firm, or a tenant of the insured c. The insured is granted permission to waive rights against other under certain conditions d. All of the answers are correct

Alien

Domiciled in another country.

Foreign

Domiciled in another state or US territory (not country).

A policy which covers medical costs related to a specific conditions is called a

Dread disease policy

When must a occurrence take place under the CGL occurrence form?

During the policy period

The coverages provided in the Dwelling Form are: A - D______ B - Other S_________ C - P_______ P_______ D - F___ R_____ Value E - Additional L_____ E_______

Dwelling Structures Personal Property Fair Rental Living Expenses

C

Dwelling Fire's Coverage B "Other Structures" provides coverage for which correct exposure? Choose one answer. a. An apartment over the garage is rented to a seasonal tenant for 3 months a year b. A garage is rented to a small printing business making funny money c. A private garage rented to a neighbor for storage of his 1957 Chevy year around d. A greenhouse used to grow vegetables sold at a flea market

A

Dwelling fire policies exclude all the following types of losses except? Choose one answer. a. Backing up of sewers and drains b. Building ordinance & law enforcement c. Power interruption due to off premises damage d. All of the answers are excluded

D

Dwelling fire's Coverage C "Personal Property" excludes which items specifically? Choose one answer. a. All of the answers are correct b. A riding lawnmower over 25 horsepower with anti-lock brakes c. Prerecorded computer programs d. Valuable papers

What are the 7 areas of eligibility for the Businessowners policy?

Each with its own restriction: 1) Apartment houses and residential condo association buildings; 2) Office and office condo associations; 3) Mercantile, wholesaler, service, or processing risks; 4) Trade contractors; 5) Limited cooking and fast food restaurants; 6) Convenience food store; 7) Self-storage facilities.

Directors and officers liability insurance defendants actions against a corporation or its officers and directors alleging wrongful acts. With regard to the coverage provided, wrongful acts include any of the following EXCEPT

Embezzlement

What are the optional coverages under the Businessowners policy?

Employee dishonesty, Accounts receivable, Valuable papers and records, Forgery and alteration, Outdoor signs, Mechanical Breakdown, Money and securities.

How are employees and non-employees considered insureds?

Employees are insureds for their acts as employees- subject to limitations; Non-employees who acts as a real estate manager for the named insured is an insured.

Building ordinance

Endorsement necessary to cover the demolition of the undamaged part of a building

Which of the following would modify the original insurance contract by either adding or removing coverage?

Endorsements

The provision in a health insurance policy that ensures that insurer cannot refer to any document that is not contained in the contract is the

Entire contract clause

The claim-made policy is ______ over any other policy that is not claims-made.

Excess

Both Commercial General Liability forms are _______ over property insured that applies to the insured's completed work or to premises rented to the insured.

Excess.

B

Explain the "Computer Fraud" agreement of a Crime Insurance Policy. Choose one answer. a. Covers all types of property, when surrendered away from the premises as result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. b. Insuring agreement will pay for the loss of or damage to money, securities and other property resulting from using a computer to fraudulently transport property from inside the insured's premises (or its banking premises) to a person or place outside. c. Pays for loss resulting from having accepted counterfeit currency or money orders in good faith in exchange for merchandise, money or securities, including money orders and counterfeit paper currency from any country. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

D

Explain the "Money Orders And Counterfeit Paper Currency" agreement of the Crime Insurance Policy. Choose one answer. a. Covers all types of property, when surrendered away from the premises as result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. b. Insuring agreement will pay for the loss of or damage to money, securities and other property resulting from using a computer to fraudulently transport property from inside the insured's premises (or its banking premises) to a person or place outside. c. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Pays for loss resulting from having accepted counterfeit currency or money orders in good faith in exchange for merchandise, money or securities, including money orders and counterfeit paper currency from any country.

D

Explain the "Other Insurance Provision" of a Crime Insurance Policy. Choose one answer. a. All of the answers are correct b. Policy is pro rata with any other recoverable insurance c. Policy is primary over any other recoverable insurance d. Policy is excess over any other recoverable insurance

D

Explain the endorsement for "Clients' Property" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities, and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

B

Explain the endorsement for "Extortion" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers all types of property, when surrendered away from the premises as result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. c. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

C

Explain the endorsement for "Funds Transfer Fraud" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities, and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

D

Explain the endorsement for "Lessees of Safe Deposit Boxes" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Loss of damage to money, securities, and other property resulting from theft committed by an employee, or the unlawful taking of money, securities or other property to the deprivation of the insured. c. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client. d. Covers theft, disappearance, or destruction of securities, and burglary or robbery of property other than money or securities, all from within designated places of such depository.

C

Explain the insuring agreement for "Employee Theft" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities; and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Loss or damage to money, securities, and other property resulting from theft committed by an employee or the unlawful taking of money, securities or other property to the deprivation of the insured. d. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client.

A

Explain the insuring agreement for "Forgery Or Alteration" in the Crime Insurance Policy. Choose one answer. a. Coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. b. Covers theft, disappearance, or destruction of securities; and burglary or robbery of property other than money or securities, all from within designated places of such depository. c. Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insured's client. d. Designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine.

No insurance policy can be issued, delivered, or used in this state unless it has been

Filed with and approved by the office of insurance Regulation

No insurance policy form can be issued, delivered or used in this state unless it has been

Filed with and approved by the office of insurance regulation

B

Florida Statutes establish standards, which must be met by Medicare Supplement insurance. Which of the following is not a standard? Choose one answer. a. Policies must be written in understandable language b. The policy is returnable within one year for full premium refund c. The policy must be accompanied by an outline of coverage and a Medicare Supplement Buyer's Guide d. The policy may not limit coverage for more than 6 months because of a pre-existing health condition

A

Florida's homeowner's policy cancellation conditions include all the following except? Choose one answer. a. 60 day notice for cancellation b. 10 day notice of nonpayment c. 100 day notice for nonrenewal d. 20 day notice if within the first 90 days of the policy

What is the benefit of the Liquor Liability Coverage Form?

For those who are in the business of manufacturing, distributing, etc. alcohol, this for covers what a typical General Liability policy would exclude. Namely, liability for having caused or contributed to a person's intoxication, or furnishing to minors or in violation of statute.

G.I. - Symbol 27

G.I. - Specifically described autos. Any coverage. Acquired auto during the policy period if the insured notifies within 30 days of acquisition either 1) The insured already insures on this policy all autos they own. OR 2) The auto replaces a covered auto.

What are the two primary roof shapes?

Gable and Hip

Name some additional ways to receive mitigation credits?

Gable end-wall bracing and Secondary Water Resistance.

There are over 200 different crops that may be insured under crop insurance policies: however , the eligibility list varies

Geographically

Under the professional liability loss settlement provision, what must an insurer do before offering to pay a claimant to settle a claim?

Get the insured's consent

When an insurer plans to non renew a commercial property insurance policy, it must

Give at least 45 days advance written notice of its intent and state the reason(s) why the policy not to be renewed

When two occupants jointly own a 2-family dwelling, a H0-_/_/5/_ may be issued in the name of one of the co-owners and a HO-_ may be issued to the other co-owner. Each Form has two main divisisions: Section I P_______ and Section II L________. Section _ is all of the forms is identical. The main difference are found in the p______ covered in Section I.

HO-2/3/5/8 H0-4 Property Liability II perils

The main difference between an HO-4 and HO-6 is

HO-6 provides limited dwelling coverage as well as contents coverage

B

Health insurance policies, under Florida Law, require which of the following number of days cancellation notice (if there is a cancellation clause in the policy)? Choose one answer. a. 10 days b. 20 days c. 45 days d. 30 days

A. 20 days

Health insurance policies, under Florida Law, require which of the following number of days cancellation notice (if there is a cancellation clause in the policy)? Select one: A. 20 days B. 30 days C. 10 days D. 45 days

Which type of roof could receive the discount?

Hip roof for sure, although some insurers will provide credit for modified hip roofs, such as Boston Hip or Dutch Hip.

B

Homeowner's Coverage C "Personal Property" exclusions include which of these items? Choose one answer. a. Tape decks, CB radios and equipment exclusive to an automobile b. All of the answers are correct c. Personal property of a non- related border d. Jewelry coverage on an inland marine jewelry floater

D. The property of a guest anywhere in the world

Homeowner's Coverage C - Personal Property covers each of the following situations except? Select one: A. The property of others while located at the insured's dwelling at the insured's request B. A resident employee's contents at the insured's dwelling C. The insured's personal property while in Mexico at a secondary dwelling D. The property of a guest anywhere in the world

C

How are agents appointed? Choose one answer. a. An agent or agency appoints its agents. b. All of the answers are correct c. An insurer appoints a general lines agent to transact insurance or adjust claims on their behalf. d. Agents are appointed by the Florida Department of Financial Services.

C

How are benefits for "permanent total" disabilities paid? Choose one answer. a. All of the answers are correct b. At 66 2/3% of the employee's average weekly wage for a period not to exceed 104 weeks, except the employee may receive as high as 80% of average weekly wage up to $700 per week for up to six months during a period of retraining and rehabilitation. c. At 66 2/3% of the employee's average weekly wage during the period of disability without limit of time. d. It is compensated under the "wage loss" formula, for a period of 104 weeks of impaired earnings. This benefit is computed weekly. --...

B

How are benefits for "temporary total" disability paid? Choose one answer. a. At 66 2/3% of the employee's average weekly wage during the period of disability without limit of time b. At 66 2/3% of the employee's average weekly wage for a period not to exceed 104 weeks, except the employee may receive as high as 80% of average weekly wage up to $700 per week for up to six months during a period of retraining and rehabilitation. c. These benefits are based upon a medical impairment rating schedule approved by the Division of Worker`s Compensation and are in two parts, "impairment and "wage-loss". d. It is compensated under the "wage loss" formula, for a period of 104 weeks of impaired earnings. This benefit is computed weekly. --...

A

How are benefits of a "Permanent Total" classification "paid" under the Worker's Compensation law? Choose one answer. a. At 66 2/3% of the employee's average weekly wage during the period of disability without limit of time. b. At 66 2/3% of the employee's average weekly wage for a period not to exceed 104 weeks, except the employee may receive as high as 80% of average weekly wage up to $700 per week for up to six months during a period of retraining and rehabilitation. c. It is compensated under the "wage loss" formula, for a period of 104 weeks of impaired earnings. This benefit is computed weekly. d. These benefits are based upon a medical impairment rating schedule approved by the Division of Worker`s Compensation and are in two parts, "impairment and "wage-loss". --...

A

How are claim disputes resolved under the worker's compensation law? Choose one answer. a. Disagreements over claims are resolved through hearings by appointed deputy commissioners. A prescribed form of notice must be filed if an employer wishes to contest a claim of an employee within 21 days after knowledge of the injury. b. All of the answers are correct c. The employer may request arbitration d. In a court of law --...

D

How are dwellings defined under Property Insurance? Choose one answer. a. Household personal property in any apartment, cooperative or condominium used as living quarters or rented to others b. Single family either owner occupied or leased by the owner c. 1 to a maximum 4 apartment or family units d. All of the answers are correct

B

How are losses under Part D of the PAP paid? Choose one answer. a. None of the answers are correct b. Part D pays losses on the lesser of actual cash value (less depreciation) or the cost to repair or replace damages to the vehicle c. Part D pays losses on a replacement basis if the insured carries a limit equal to the value of the vehicle d. Part D pays losses on the cost to repair or replace damages to the vehicle

A

How are occupational diseases treated under the worker's compensation law? Choose one answer. a. All of the answers are correct b. If there is a particular hazard in the occupation that distinguishes it from the other occupations, the disease is considered as from the nature of the employment c. Only diseases resulting from the nature of the employment are covered d. They are treated as an injury by accident --...

C

How are rates for worker's compensation determined? Choose one answer. a. Both of the answers are correct b. Rates are per $1,000 of payroll c. Premiums for overtime may be excluded d. None of the answers are correct --...

D

How are the benefits paid for "temporary partial disability"? Choose one answer. a. At 66 2/3% of the employee's average weekly wage during the period of disability without limit of time. b. For as long as earnings are impaired, the employee receives 80% of the difference between 80% of the pre-injury less post-injury monthly earnings, for up to 104 weeks subject to a maximum of 66 2/3% of the average monthly wage at the time of injury. c. These benefits are based upon a medical impairment rating schedule approved by the Division of Worker`s Compensation and are in two parts, "impairment and "wage-loss". d. It is compensated under the "wage loss" formula, for a period of 104 weeks of impaired earnings. This benefit is computed weekly. --...

C

How do agents use residual markets on behalf of their clients? Choose one answer. a. All of the answers are correct b. Applications are forwarded to any carrier along with required premiums and underwriting information; policies are issued. c. It is a similar process to procuring coverage through any voluntary insurance company; applications are forwarded to the designated servicing entity along with required premiums and underwriting information; policies are issued. d. Applications are forwarded to the Department of Financial Services along with required premiums and underwriting information; policies are issued.

B

How do the 6 homeowner forms apply in a homeowner's insurance policy? Choose one answer. a. HO-4 applies for renters, or those who occupy a residence in an ineligible building b. All of the answers are correct c. HO-6 is for condominium unit-owners and cooperative apartment dwellers d. Forms HO-2, 3, 5 and 8 apply only for owner-occupants of one to four family dwellings

D

How do the two coverages apply in the P, S&D insurance policy? Choose one answer. a. Both of the answers are correct b. Generally each of the forms applies to "medical incidents" defined as an act of omission in furnishing of professional services specific to each of the professionals' forms. c. None of the answers are correct d. Individual coverage applies to each person named in the Declarations. Partnership coverage applies to the organization, as well as a member, partner, or employee or others acting under the direction, control or supervision of the insured.

C

How does the coverage for bodily injuries work under the Uninsured Motorist provision? Choose one answer. a. Generally states will want to be sure it is not intended to duplicate payments otherwise available under disability benefits, medical payments coverage, or liability coverage b. Generally it is only available in conjunction with auto liability insurance. c. It is a form of coverage to pay compensatory damages for BI under one's own policy, for amounts, which would otherwise have been recovered from the liability insurance of another, either an uninsured motorist or one who has lower limits. d. Limits are offered in the same way as liability coverage. There may be a single limit; the minimum usually is $20,000 per accident or there may be split limits with a minimum being $10,000 per person and $20,000 per accident (10/20).

C

How does the liability coverage in a BOP differ from that in a commercial general liability policy? Choose one answer. a. Generally the coverages parallel however, coverage is per occurrence with no a claims-made option. b. Druggist's professional liability is included if the insured is a drugstore c. All of the answers are correct d. Coverage for hired and non-owned autos can be purchased if the insured does not have a business auto policy

D

How is damage to your auto covered in the PAP? Choose one answer. a. The company agrees to pay for direct and accidental loss to any "non-owned auto" b. The company agrees to pay for direct and accidental loss to a "your covered auto" c. The company agrees to pay for direct and accidental loss to any equipment with "your covered auto" or any "non-owned auto" d. All of the answers are correct, normally referred to as physical damage coverage

C

How is mobile equipment handled on the Business Auto Policy? Choose one answer. a. Normally general liability insurance covers mobile equipment b. Mobile equipment may be endorsed onto the auto policy when no CGL insurance is available c. Both of the above d. Neither of the above

B

How is occupancy defined under the homeowner's program? Choose one answer. a. The insured may have not more than three roomers or boarders per family occupancy b. For private residential purposes c. All of the answers are correct d. Incidental non-dwelling occupancy (such as office, studio or professional) is not permitted.

C

How is physical damage rated? Choose one answer. a. Pickup trucks and vans are rated based on their original costs new b. The age of the vehicle is also considered in the rating with rates declining for older vehicles c. Both of the answers are correct d. None of the answers are correct

D

How is physical damage rated? Choose one answer. a. Pickup trucks and vans are rated based on their original costs new b. The age of the vehicle is also considered in the rating with rates declining for older vehicles c. ISO has assigned a symbol recognizing both the value of the car and its damageability in accidents; a separate symbol is given for all makes and models of automobiles d. All of the answers are correct

C

How is the "wage-loss" benefits portion of the "permanent impairment" disability paid? Choose one answer. a. At 66 2/3% of the employee's average weekly wage during the period of disability without limit of time b. For as long as earnings are impaired, the employee receives 80% of the difference between 80% of the pre-injury less post-injury monthly earnings, for up to 104 weeks subject to a maximum of 66 2/3% of the average monthly wage at the time of injury. c. These benefits are based upon a medical impairment rating schedule approved by the Division of Worker`s Compensation and are in two parts, "impairment and "wage-loss". d. It is compensated under the "wage loss" formula, for a period of 104 weeks of impaired earnings. This benefit is computed weekly. --...

C

How is the rating for the premium accomplished for a homeowner's policy? Choose one answer. a. It is based on two elements, the fire protection available, and the location in the state. b. None of the above c. It is based on three elements, the fire protection available, the construction of the dwelling, and the location in the state. d. It is based on one element, the location in the state.

C

How may an owner or operator show financial responsibility following an accident? Choose one answer. a. The owner or operator may apply to be a qualified self-insured b. All of the answers are correct c. The owner or operator may post a bond or cash guaranteeing responsibility for 10/20/10 limits d. The owner may purchase automobile liability with minimum limits of 25/50/10

A

Identify the three different legal theories of recovery that CGL insurance may protect an insured against. Choose one answer. a. All of the answers are correct b. Direct c. Contractual d. Indirect or contingent

A

Identify which homeowner' additional coverages limit is incorrect? Choose one answer. a. All of the answers are correct b. Unlimited defense costs for claim expense c. Loss assessment with a $1,000 limit d. Unlimited first aid expense

C

Identify which items are available options under the homeowner's policy. Choose one answer. a. Replacement cost settlement on contents b. Theft coverage for an occasionally rented residence property c. All of the answers are correct d. No deductible scheduled floater for golf equipment

B. Comes under the emergency program

If a community is not approved for Flood Coverage but has applied for admittance, it: A. Is an eligible community B. Comes under the emergency program C. Comes under the regular program D. Has flood insurance rate maps

When must nonresidents comply with the FL no fault law?

If a defined motor vehicle has been in FL for 90 of the preceding 365 days

B

If a flood is confined to a single premise, how many acres does it have to cover? Choose one answer. a. 1 acre b. 2 acres c. 3 acres d. 4 acres

B

If an insured had a personal articles floater, including basic coverage with no options for all available classes of property, how much (if any) would be payable in the following described loss: "A ring, scheduled for $1,500, was stolen from the glove compartment of the insured's unlocked car. The ring could be replaced for $1,200." Choose one answer. a. $1,500 payable - Loss is not excluded and coverage is the limit specified for coverage. b. $1,200 payable - Loss in not excluded and coverage is for the lesser of ACV or cost to repair or replace. c. $2,000 payable - Silverware does not include automatic coverage for acquired property. d. $4,000 payable - Scheduled limit applies as not exceeding ACV, loss not excluded.

C

If an insured had a personal articles floater, including basic coverage with no options for all available classes of property, how much (if any) would be payable in the following described loss: "For silverware, the insured had a sterling silver service scheduled for $2,000 coverage. The insured purchased some silver place settings at a cost of $700. Two weeks later, both the scheduled item and the new place settings were stolen?" Choose one answer. a. $1,700 payable; Loss is not excluded and coverage is for ACV. b. $2,700 payable; Silverware does not include automatic coverage for acquired property c. $2,000 payable; Silverware does not include automatic coverage for newly acquired property. d. $4,000 payable; Scheduled limit applies as not exceeding ACV, loss not excluded.

D

If an insured had a personal articles floater, including basic coverage with no options for all available classes of property, how much (if any) would be payable in the following described loss: A camera was included in the blanket coverage for $500. While in the insured's car, it was caught in a flash flood and was a total loss. The company found it could be replaced for $350?" Choose one answer. a. $500 payable; Loss is not excluded and coverage is the limit specified for coverage. b. $350 payable; Loss is not excluded and coverage is for ACV. c. $850 payable; Loss is not excluded and coverage is the limit specified for coverage. d. $350 payable; Loss is not excluded and coverage is for the lesser of ACV, cost to repair or replace or the limit specified for coverage.

D

If an insured had a personal articles floater, including basic coverage with no options for all available classes of property, how much (if any) would be payable in the following described loss:" 'The insured had a large home electric organ scheduled for $4,000. It had been removed to a shop for repairs, and the repair shop burned down. The lowest cost for a reasonable replacement was $5,000'" Choose one answer. a. $5,000 payable; Loss is not excluded and coverage is the limit specified for coverage. b. $2,000 payable; Loss is not excluded and coverage is the limit specified for coverage. c. $3,500 payable; Loss is not excluded and coverage is for ACV. d. $4,000 payable; Loss is not excluded and coverage is for the lesser of ACV or cost to repair or replace.

A. Money loss

If an insured has Building Coverage only, under the Building and Personal Property Coverage Form, which of the following items located within the building would not be covered? A. Money loss B. Carpeting C. Refrigerator D. Fire Extinguishers

B

If an owner or operator does not have automobile liability coverage at the time of an accident, what must the owner or operator do? Choose one answer. a. Purchase automobile liability coverage for future accidents b. Satisfy or pay claims of others up to 10/20/10 limits and provide an SR22 filing c. Satisfy or pay claims of others up to 10/20/10 limits d. All of the answers are correct

Under the Business Income Coverage form, what is the difference when the form is 'with' or 'without' extra expense?

If coverage is 'with', the policy pays extra expenses to avoid the suspension of business regardless if it results in a loss of business income. If coverage is 'without', the policy pays extra expenses only if they reduce the loss.

When are the death benefits under a disability policy payable?

If death is within 1 year of the accident, or follows continuous disability within 5 years after the accident.

What are the duties of the employer under part four of the Workers Compensation policy?

If injury occurs, the insured is required to notify the insurer at once, and make sure the injured employee is given immediate medical services.

When would a misrepresentation on the insurance application be considered fraud

If it is intentional and material

Insurable Interest

If something happened to the subject economic loss would be suffered

When is liquor liability not excluded?

If the insured is not in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.

Liberalization

If the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period (usually 60 days) the insured receives the benefit of such broadened coverage

When is an officer considered an employee?

If the officer performs services for the corporation for pay.

When is mobile equipment considered autos?

If the vehicle is subject to a compulsory or financial responsibility law, or other motor vehicle insurance law, it is considered an auto while in transit to and from job sites.

Surplus Lines Insurance

If you cannot write a policy after asking 3 admitted carriers, you can fill out a diligent effort form and write the business with a licensed surplus lines agent. the insured must sign an acknowledgement that they are not protected under the Florida Insurance Guaranty Act - FIGA

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances

Which of the following limitations would NOT apply to a hospital and surgical expense policy?

Illness basis

Explain the background for the loss mitigation discounts?

In 2005, Florida Legislature enacted a law requiring all residential property insurance companies to file with the Office of Insurance Regulation a range of premium discounts they propose to offer.

Protection and Indemnity.

In Ocean Marine insurance, a form of liability insurance.

Object

In an equipment breakdown policy a boiler is defined as the?

Object

In an equipment breakdown policy, a boiler is defined as the?

Physical Damage

In auto insurance, damage or loss to the insured own auto or autos int he insureds care, custody or control.

When did ERISA begin?

In earnest in or about 1974

What are the exclusions under the Farm Liability coverage form?

In general, there is no coverage for bodily injury and property damage liability arising out of the insured's performance or failure to perform custom farming operations for others, except to the extent of the insured's first $5,000 in receipts in any 12-month period. Additionally, damage resulting from aircraft spraying is excluded, as is damage to the insured's own products.

Occurence

In liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

What property is included under the Building and Personal Property Coverage form?

Includes furniture, fixtures, machinery, equipment, stock, other owned personal property used in the business; value of labor, materials or services on personal property of others; if the insured is a tenant, improvements and betterments. All such property is covered while it is in the building or within 100 feet of the premises if it is in the open or in a vehicle.

Under the Building and Personal Property Coverage form, what does Personal Property of Others include?

Includes property owned by others but in the insured's care, custody, or control, while it is located as described for 'Your Business Personal Property'.

What is the coverage territory for the Commercial General Liability policy?

Includes the U.S. and its territories or possessions, Puerto Rico, and Canada. It also includes international waters and airspace between these spaces. This definition expands to the entire world when BI and PD is cause by products made or sold by the insured and activities while away for a short time on business.

The time of limitation on certain defenses provision in health policies deals with which of the following?

Incontestability of statements on the application

Under the Business Income Coverage form, what does "Extended Period of Indemnity" do?

Increases the Period of Indemnity form 30 days to up to 730 days.

Home Owner Policy Endorsements (Customizing Policies): 1. I______ G_____ permits specifying a percentage by which the limit for each Section I coverage will be increased annually, prorated thtoughout the policy term 2. While Coverage B is limited to __% of Coverage A, additional specified insurance may be issued on detached private structures to supplement Coverage B. 3. Most of the special limits applicable to certain types of personal properties may be increased: 1) money, etc. from $200 to $1,000; 2) securities from $1,500 to $2,000; 3) jewelry and furs from $1,500 to $5,000 (subject to $1,000 on any one item); 4) silverware, etc. from $2,500 to $10,000; 5) firearms from $2,500 to $6,500; 6) business property from $2,500 to $10,000; and 7) electronic apparatus from $1,500 to $6,000. 4. the limit of $___ on credit cards, foregery, or counterfeit money may be increased as much as $10,000 5. The limit of 10% of Coverage _, which applies to property usually located at scondary residents, may be increased to any higher amount. 6. The basic $____ limit for loss assessments may be increased to any higher amount , and may be extended to cover assessments arising from other locations 7. The limit of __% of Coverage A (can be increased to 50%) applying to losses arising from building ordinances or laws may be increased.

Inflation Guard 10% $500 C $1,000 25%

Basic Form Other Coverages: Other Coverages included on form DP-1 are: 1. Up to 10% of the Coverage A limit may be applied to "Other Structures" as defined in Coverage B. 2. The cost of removal of debris after a covered property loss is included. 3. The insured may apply up to 10 percent of the Coverage C limit to cover damage to improvements, alterations and additions made or acquired by the tenant to property owned by others. 4. The insured may apply up to 10 percent of the Coverage C limit to property away from the premises, anywhere in the world. 5. Up to 20 percent of the Coverage A limit may be applied to the fair rental value of the property as described in Coverage D. Coverage is limited to 1/12th of the 20 percent per month. 6. The insurer will pay reasonable cost for necessary repairs to protect the property from further loss after a covered loss has occurred. 7. Coverage is provided for up to five days at a temporary location for property when removed from the premises after being endangered by a coverage peril. 8. The insurer will pay up to an additional $500 for fire department service charges for property owners in unincorporated areas who have a contract with a fire department that requires a service charge. Except for the Fire Department Service Charge coverage, which is additional insurance, these Other Coverages do not increase the limits of insurance.

Informational note

I_____ M______ insurance was first developed as an extension of Ocean Marine coverage, to provide coverage for cargo traveling over land, instead of by s__

Inland Marine sea

Under the Builders Risk Coverage form, what is the purpose of the "Need for Adequate Insurance" clause?

Instead of a coinsurance clause, this clause provides that the company is responsible only for the proportion of any loss that the limit bears to the value at completion by using a formula.

Which of the following entities protects policy owners, insurers and beneficiaries under insurance contracts when insurer fail to perform contractual obligations due to financial impairment?

Insurance Guaranty Association

Separate Statute: Insurance Policy

Insurance is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies

Health Insurance

Insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto.

Contract of Adhesion

Insurance policies are said to be contracts of adhesion wherein the parties are of unequal bargaining power, and one party the insured cannot negotiate the terms having to take the offer of the other party the insurer as made

A

Is a legitimate ERISA Self-Insurance plan necessarily an insurance plan subject to state regulation? Choose one answer. a. A genuine single-employer ERISA plan is not subject to direct state insurance regulation b. None of the answers are correct c. A legitimate ERISA Self-Insurance plan is always deemed to be insurance d. A legitimate ERISA Self-Insurance plan is never deemed to be insurance

A

Is coverage in the FAJUA available to everyone in Florida? Choose one answer. a. All of the answers are correct b. The FAJUA is available to Florida residents. c. The FAJUA is available to nonresidents for automobiles registered in Florida or if subject to the Florida no-fault law. d. The FAJUA is available to military nonresidents stationed in Florida.

What is "Business Income", as it pertains to a Commercial Property policy?

Is net profit or loss, before taxes, which would have resulted through a period of restoration.

C

Is there a waiting period before disability benefits are paid under the worker's compensation law? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. None are paid for the first seven (7) days of a disability; if, however, the disability lasts more than twenty-one (21) days, benefits are payable from the first day of injury. d. None are paid for the first ten (10) days of a disability; if, however, the disability lasts more than twenty-one (21) days, benefits are payable from the first day of injury. --...

Which of the following NOT an indication a company is an unauthorized insurance entity?

It has many underwriting guidelines

Hazard

It increases the probability of severity of loss from peril

Which of the following is true regarding a risk retention group?

It is a liability insurance company owned by its members

What is the general aggregate limit under a Businessowners policy?

It is equal to twice the Liability and Medical Expenses limit. (Does not apply to liability arising out of the products/completed operations hazard or fire legal liability)

What is the Products and Completed Operations Liability aggregate limit?

It is equal to two times the Liability and Medical Expenses per occurrence limit.

All of the following statements describe the concept of strict liability EXCEPT

It is imposed on defendants engaged in hazardous activities

Which of the following is NOT true regarding a Certificate if Authority

It is issued to group insurance participants

Under the Leasehold Interest Coverage form, what does "remaining values" mean?

It is the unamortized portion of values that remains from the date of loss to the end of the lease period.

Which is correct about GCL supplemental extended reporting period (SERP)

It reinstated full general and products/ completed operations aggregate

D

Joe Brown is awarded a contract to install an air conditioning system at the premises of a local bar owned by Jim Smith. During the time work is being done, a major fire occurs overnight and destroys $50,000 worth of the Joe Brown's property located at Jim Smith's bar. This loss is best covered by a [[no]]: Choose one answer. a. Commercial Property Building and Personal Property Form b. Contract Bond c. Some form of Crime Insurance d. Installation Floater

D

Jill has a golf cart, which she wishes to cover under her PAP; what endorsement should she add to the PAP? Choose one answer. a. Customizing Equipment Coverage b. Increased Limits Transportation Expenses Coverage c. Covered Property Coverage d. Miscellaneous Type Vehicle Coverage

C

Jim rents a vehicle while on vacation. Jim does not own a car of his own since the company he works for PUT Corp. supplies a vehicle for his use. Which endorsement would Jim ask PUT Corp. to add to their Business Auto Policy? Choose one answer. a. Named Individuals - Broadened PIP b. Individual Named Insured c. Drive Other Car Coverage d. A separate Personal Auto Policy

C

Joe carries $2,000 Medical Payments coverage on his automobile. Joe's daughter used a friend's automobile and was involved in an accident resulting in $3,500 in medical bills. The friend carries Medical Payments coverage in the amount of $3,000. How much will Joe's policy pay, if any? (Ignore Personal Injury Protection coverage) Choose one answer. a. $1,500 b. $3,000 c. $500 d. None

D. $500

Joe carries $2,000 Medical Payments coverage on his automobile. Joe's daughter used a friend's automobile and was involved in an accident resulting in $3,500 in medical bills. The friend carries Medical Payments coverage in the amount of $3,000. How much will Joe's policy pay, if any? (Ignore Personal Injury Protection coverage) Select one: A. None B. $1,500 C. $3,000 D. $500

B

Joe owns his own business, Joe's as a sole proprietor. Joe has his only owned vehicle, a 2004 Toyota, insured on his Business Auto Policy.' Which endorsement would Joe add to his Business Auto Policy? Choose one answer. a. Named Individuals - Broadened PIP b. Individual Named Insured c. Drive Other Car Coverage d. A separate Personal Auto Policy

A

John and his wife, Mary, have a PAP with John being the named insured. John moved out of their house 120 days ago in contemplation of divorce. During this period of separation, Mary normally drives a Buick insured under John's PAP. Which of the following claims could be covered by John's PAP? Choose one answer. a. Mary lets her unlicensed brother borrow the covered Buick, and he has an at-fault accident b. All of the answers are correct c. Mary borrows her sister's pickup truck to move furniture, and has an at-fault accident d. Mary borrows her brother's pickup to move furniture, and has an at-fault accident

A

John does not own a car, what endorsement should he add to the PAP? Choose one answer. a. Named Non-Owner Coverage b. Extended Non-Owned Coverage c. Joint Ownership Coverage d. Towing and Labor

C

John does not own a vehicle but wishes to have liability, medical payments and UM coverages when he drives his mother's vehicle. Which optional endorsement should John purchase? Choose one answer. a. Joint Ownership b. Additional Personal Injury Protection c. Named Nonowner coverage d. Extended Personal Injury Protection

C

John has a PAP policy but drives a car for his employer. John frequently picks up his employer's passengers and drives them to events for a fee. Which optional endorsement should John add to his PAP? Choose one answer. a. Joint Ownership b. Additional Personal Injury Protection c. Extended Nonowned Coverage d. Named Nonowner coverage

A

John is allowed use of a company car; what endorsement should he add to the PAP? Choose one answer. a. Extended Non-Owned Coverage b. Towing and Labor c. Joint Ownership Coverage d. Named Non-Owner Coverage

According to the Nationwide Marine definitions, risks that may be the subject of inland marine insurance include all of the following EXCEPT

Large pleasure boats

Which law is the foundation of the statistical prediction of loss upon which for insurance are calculated?

Law of large numbers

Section II contains two coverages: E L_____ and F: M______ P______ to others.

Liability Medical Payments

Personal and advertising injury in CGL policy covers all of the following EXCEPT

Liability assumed under contract

PAP is divide in 6 pars, Mamés all of them

Liability coverage Medical payments coverage UM Coverage to Your Auto Duties after an Accident or loss General provisions

Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?

Liability coverage Include expenses incurred $200 per day

What is section C of the Boiler and Machinery Coverage form?

Limits of Insurance

Section II has four (4) "Additional Coverages": 4) L___ A_________: Up to $____ applies to a________ against the insured by an association of property owners, as a result of loss to the assocaition from: 1) an o________ at the residence premise to which Section II of the policy would apply; or 2) the acts of properly elected but unpaid d_____, o______ or trustees of the condominium.

Loss Assesment $1,000 assesment occurance directors officers

Conditions for Section I Property Coverage: Most important condiditon is the "L____ S________" condition. A_____ c___ value adjustments apply to Section 1 losses. Coverages A and B may be adjusted on a replacement cost basis if the limit of insurance at the time of loss is equal to __ percent or more of the replacement value of the building. If the __ percent requirement is not met, the insurer will pay the proportion of the replacement cost, which the limit bears to 80 percent of the replacement value (coinsurance clause), but not less than actual cash value. Some limitations on Replacement Cost are: (1) ACV valuation applies to awnings, carpeting, appliances, outdoor antennas and outdoor equipment; (2) in order to receive replacement cost, the insured must notify the insurer of intent to replace within 180 days; (3) the insured may take an ACV adjustment and later claim the difference between the ACV and replacement cost, if within 180 days after the loss.

Loss Settlement Actual cash 80%

An insured is driving her auto and strikes a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?

Loss is not covered. A flat tire that ocurra from. A cause other than vandalism is considered a road hazard.

What exposures does the Leasehold Interest Coverage Form cover?

Loss of: 1) Favorable lease; 2) favorable sublease; 3) bonus to acquire lease; 4) value of improvements and betterments; 5) remaining value of prepaid rents.

An insured's home is mortgaged by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

Losses will be paid to the mortgagee and mortgagee as their interest appears

In group insurance, what is the policy called?

Master policy

A

May a commercial property policy be transferred to another? Choose one answer. a. Both of the answers are correct b. Rights and duties are automatically transferred if the insured dies, first to one who has legal temporary custody of the property and then to the legal representative c. None of the answers are correct d. No the insured may not transfer any rights or duties except with written consent of the insurer

C

May a person who does not own an auto be covered under the FAJUA rules? Choose one answer. a. All of the answers are correct b. The only coverages available are Liability, Personal Injury Protection and Uninsured Motorist. Liability limits to 100/300/50. c. Eligible persons who do not own an automobile may secure named non-owner policies. d. Private passenger auto applications are eligible for Liability coverage with limits up to 10/20/10 and Personal Injury Protection.

C

May anyone avail himself or herself of insurance offered under Citizens? Choose one answer. a. All of the answers are correct b. The risk must be entitled to, but unable to procure, commercial property coverage in the voluntary market. There are several specifically ineligible risks. c. To be eligible, the homeowner's or dwelling risk must have been unsuccessful in obtaining coverage through an admitted carrier. In addition the Citizens underwriting committee must deem the risk insurable. d. Anyone may place their homeowner's coverage with Citizens.

Under the eligibility guidelines for a Businessowners policy, what does 'Limited Cooking' and 'Fast Food' mean?

Means cooking normally done with microwaves, toasters, pizza ovens, etc.; Fast Food adds ability to utilize grilling, enclosed broiling, deep-fat fryers, and roasting and barbecuing.

What is the definition of employee?

Means every person engaged in any employment under any appointment or contract of hire, including aliens and minors.

What is a "hard market"?

Means higher premiums, stricter underwriting guidelines, and less competition among insurers.

What is a "soft market"?

Means lower premiums, reduced underwriting criteria, and increased competition among insurers.

What is the definition of "accident"?

Means only an unexpected or unusual event or result happening suddenly.

What is the definition of "disability"?

Means the incapacity because of the injury to earn in the same or any other employment the wages that the employee was receiving at the time of the injury.

In a POS, benefits for covered services when self-referring ( without having your primary care physician arrange for the service) generally

More expensive

C

Mr. Smith lives in New Jersey but visits Florida each year. When does he come under the Florida No-Fault system, in any 365-day period? Choose one answer. a. After 60 days in Florida b. After 30 days in Florida c. After 90 days in Florida d. After 14 days in Florida

D

Name 3 ways in which employee theft coverage may be written. Choose one answer. a. "Named perils", basic coverage, limited perils b. "All risk", special coverage, or open perils c. All of the answers are correct d. Scheduled persons coverage, scheduled position coverage, blanket coverage

An owner and operator of a commercial business has included a business income coverage form which his commercial package policy. When the business is severely damaged by fire, the business income coverage will pay for?

Net income plus continuing expenses of the business

When are sole proprietors and partners considered employees?

Never. A sole proprietor or partner is considered to be the employer, not an employee. However, they may elect to be covered under the WC law by filing the proper election form with the Division.

Under the Building and Personal Property Coverage form, how long can a building be vacant before coverage is suspended?

No longer than 60 consecutive days.

What two coverage forms does the Commercial General Liability come in?

Occurrence and Claims-made

What is the definition of employer?

One who must secure benefits for employees, including the state, political subdivisions, public and quasi-public corporation, employment agencies, and employee leasing companies.

When is an injury considered "arising out of" employment?

Only if the work performed is the MAJOR contributing cause of the injury (or death). Occupational diseases are treated as injuries.

Form HO-5 provides "o__ p_____" for Coverages A, B, and C. "O__ p_____" are essentially the same as "all risk" coverage provided in the HO-3 form. The difference between HO-5 and HO-3 is that the HO-5 form provides "all risk" coverage for Coverage C where the HO-3 form provides "named perils" coverage for Coverage C

Open Perils

What are the exclusions under Part B?

Ordinance/Law; War & Nuclear hazard; Fires and Explosions; Windstorm, Hail, or Freezing; Lightning, aircraft, vehicles, sinkhole collapse, smoke, sprinkler leakage or weight of ice, snow or sleet, if coverage is otherwise provided; Flood, with exception; Object while testing; Earth Movement; Lack of power, light, heat, steam, or refrigeration; Indirect Loss.

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written in the same risk?

Other insurance

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto apply to all coverage EXCEPT

Physical Damage

What is the "Automatic Coverage" extension

Part-A coverage extension that provides 90 days automatic coverage for an accident to an object at a newly acquired location, subject to the highest limit and deductible as stated in the Declarations for the same type object.

What is Expediting Expenses? and what is the applicable deductible?

Part-A coverage extension that provides reimbursement will be provided for the cost of temporary repairs and to expedite permanent repairs or replacement. -Subject to a $250 deductible.

What does Medical Payments cover?

Payment is for medical, dental, hospital and funeral services incurred within one year from the date of the accident to persons who suffer bodily injury by accident 1) on or next to the insured's owned or rented premises; or 2) because of the insured's operations.

Under a Commercial General Liability policy, what does Coverage A pay for?

Pays for those sums that the insured becomes legally obligated to pay for Bodily Injury and Property Damage.

For how much can an agent be fined for not licensing his or her agency?

Penalty up to $10,000

Cyber liability insurance

Pending...

Where would a contractors equipment floater cover property?

Pending...

According to FL state law, before demanding litigation, parties may demand mediation for all of the following EXCEPT

Personal injury claims filed for $15,000 or more

To what policies does the basic extended reporting period apply?

Policies that are 1) Cancelled or not renewed; 2) Is renewed with a retroactive date later than the date stated in the Declarations; or 3) Is renewed by a policy on other than a claims-made basis.

Which of the following statements is INCORRECT with regard to surplus lines insurance?

Policies written by a surplus lines insurer typically contain standard coverages and forms

Annual transit policy

Policy covers all shipments of goods in transit that may occur during the policy year to protect either the shipper or receiver

Who might receive dividends from a mutual insurer?

Policyholders

What type of autos we can have for business auto?

Private passenger type autos including station wagons, jeeps, pickups, panel trucks, vans and utility trailers designed to be pulled by private passenger autos

Coverage B: "Other Structures" covers p______ s_______ on the residence that are not attached to the main dwelling. Other s_______ can be a detached g______, g_______, f______, t_____ c______ or s_______ building. Other structures do not include structures that are used for b______ purposes or structures held for r_____ to anyone who is not a tenant of the main house, unless the rental is solely for p_____ g_____ purposes. There is no Coverage B in from HO-_ or HO-_

Private structures structures garage guesthouse fence tennis court storage business rental pruivate garage HO-4 & 6

Pertaining to insurance, what is the definition of a fiduciary responsibility

Promptly forwarding premiums to the insurance company

Pertaining to insurance, what is the definition of a fiduciary responsibility?

Promptly forwarding premiums to the insurance company

Pertinent to insurance , what is the definition of a fiduciary responsibility?

Promptly forwarding premiums to the insurance company

Contract of Adhesion

Property and liability insurance policies when one party (the insured) cannot negotiate the terms. They cannot negotiate with the insurer.

Limited fungi, wet/dry rot, or bacteria coverage endorsement in HO policies applies to

Property and liability losses

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?

Property damage liability

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

Vandalism and Malicious Mischief

Protects property against damage caused by vandals. Many property forms contain Vandalism and Malicious Mischief coverage.

When an insurer terminates an agent's appointment, the insurer must do all of the following EXCEPT

Provide a 30-day advance notice to the commissioner

Under the Business Income Coverage form, how does the optional coverage 'Monthly Limit of Indemnity' handle coinsurance?

Provides another way to avoid the coinsurance condition. Limits the amount of recovery to fraction coverage during each consecutive 30 days during the restoration period. Fraction available are 1/3, 1/4, and 1/6.

What does the Businessowners policies' optional coverage, Employee dishonesty do?

Provides blanket coverage subject to a limit of $5k, $10k, $25k, $50k, or $100k per occurrence.

US Territories

Puerto Rico, Guam, US Virgin Islands.

A. If a rebate schedule is prominently displayed in public view at the agent's place of business

Rebating of a portion of an agent's commission is permitted: A. If a rebate schedule is prominently displayed in public view at the agent's place of business B. If insurance is provided by an insurer that allows its agents to rebate commission C. If based on age, sex, place of residence or occupation of the insured D. If granted only upon the insured's purchase of collateral insurance

A

Rebating of a portion of an agent's commission is permitted: Choose one answer. a. If a rebate schedule is prominently displayed in public view at the agent's place of business b. If granted only upon the insured's purchase of collateral insurance c. If based on age, sex, place of residence or occupation of the insured d. If insurance is provided by an insurer that allows its agents to rebate commission

What must the agent make available to the policyholder and the Department of Financial Services?

Records of policies.

How does the mobilehome endorsement affect the other coverage of law or ordinance in a HO policy?

Removes the other coverage

An insured wants to cancel her health insurance policy. Which portion of her contract can she consult for her cancellation rights?

Renewability clause

A great proportion of property insurance today is issued subject to r___________________, rather than acv

Replacement Cost Valuation

In a property insurance, actual cash value is defined as which of the following?

Replacement cost at the time of the loss, less depreciation

What does the Businessowners policies' optional coverage, Mechanical Breakdown do?

Replacement cost coverage may be provided for boilers and air conditioning units.

Under the Business Income Coverage form, how does the optional coverage 'Maximum Period of Indemnity' handle coinsurance?

Replaces the coinsurance condition, but limits the period of indemnity to 120 days following the 72 hour deductible. Applies to both business income and extra expense.

D

Residual markets are created: Choose one answer. a. Appear to the public to be similar to insurance carriers b. By the Legislature c. With the ultimate responsibility for operating results falling upon all licensed carriers in Florida d. All of the answers are correct

In cases of a loss, the indemnity provisions in insurance policies

Restores an insured person to the same financial state as before the loss

How is the disability class 'Temporary Total' compensated?

Same as 'Permanent Total' except only up to 104 weeks. However, an employee may receive up to 80% of the average weekly wage up to $842 per week for up to 6 months during the retraining and rehabilitation period.

What are the different sections of a Businessowners policy?

Section 1: Property; Section 2: Liability; Section 3: Common Policy Conditions.

Named the sections on the policy format for commercial auto

Section I - covered autos Section II - liability coverage Section III - Physical Damage Section IV - Business Auto Section V - Definitions

A

Section II personal liability of the homeowner's policy covers all of the following locations except? Choose one answer. a. Vacant land upon which the insured grows grain b. Cemetery plots c. A newly acquired location during the policy period d. Worldwide personal, nonbusiness activities

C

Self-insurance is: Choose one answer. a. Any plan administered by or for the Federal Government b. Any plan covering fewer than 10 employees c. Any plan established for the purpose of providing for employees or their beneficiaries, accident, disability or death benefits d. Any plan, which provides for continuing employees regular compensation during illness or disability

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention (Casualty insurance) In property insurance is called deductible

An insurance agent X has been found guilty of a felony and was sentence to 3 years in prison. What would be the appropriate plan if action?

Send a written notification to the department of insurance

What are the typical roof coverings?

Shingles, tiles, and metal panels.

Under the Building and Personal Property Coverage form, what is the limit on sign coverage?

Signs, whether attached or not, are covered up to $2,500 per sign in any one occurrence.

How many sections is the Boiler and Machinery Coverage Form divided to?

Six; A through F

A

Smith, Inc. provides an automobile for an employee who has no automobile of his own. What additional coverages, of the following, could be added to protect the employee? Choose one answer. a. Drive Other Car Endorsement b. Extended Non-Owner c. Additional Personal Injury Protection d. Miscellaneous Type Vehicles

Coverage C (Personal Property) Exclusions: 1) S______ insured articles (personal property named on a personal property floater) 2) A_____, birds or fish 3) M_______ v______ except those used to service a residence or designated for handicapped 4) Tap decks, CB radios, tapes and similar equipment designed to be operated soley by the power from the electrical system of a m______ v______ but only while the equipment is (in or not in) the vehicle. 5) A______ and parts (except model or hobby a_____) 6) H_____ and parts 7) Proeprty of r______, boarders or other tenants unless such persons are r______ to the insured 8) Property in an apartment tht is regularly r_____ or available for r_____ to others 9) Property away from the residence that is rented or held for rental to others 10) B______ data, whether contained in books and paper or electronic software media (except the cost of b_____ records or media and of p__-r______ retail computer programs are covered). 11) Damage from water or steam

Specifically Animals Motorized Vehicles motorized vehicle in Aircraft aircraft Hovercraft renters rental rented rent Business business pre-recorded

Events in which a persons has both the chance of winning or losing are classified as

Speculative risk

C

Stan is driving his yacht when he runs into another boat doing $30,000 of damage to the other boat. Where would Stan have coverage for the other boat under his ocean marine policy? Choose one answer. a. Free of Particular Average clause b. General Average clause c. Running Down clause d. Sue & Labor clause

Financial Responsibility Law

State law that requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.

Representation

Statements an applicant for insurance believes to be true. Does not carry as much force as warranty.

Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting?

Stock

Sliding

Telling the insured that an optional coverage is either 1. required by law or 2. included in the policy and no charge or 3. adding coverage to a policy without disclosing the coverage was adding for additional premium. (Unfair and Deceptive practices)

Which of the following may NOT be included in an insurance company' s advertisement?

That it's policies are covered by a state Guaranty Association

D

The Condominium Association Coverage form covers all the following property exposures except? Choose one answer. a. Buildings b. Business personal property c. Outdoor fixtures and permanently installed fixtures or equipment d. Personal property of others located in a unit

Between the two Condominium Coverage forms, which form is primary?

The Condominium Association form.

D

The Dane Company finds a defect in one of its products. 100 units must be destroyed, valued at $700 each. The recall of units on the market will cost an additional amount of $5,000 to replace. How much will the Commercial General Liability policy will pay? Choose one answer. a. $70,000 b. $75,000 c. $5,000 d. Nothing

D. Nothing

The Dane Company finds a defect in one of its products. 100 units must be destroyed, valued at $700 each. The recall of units on the market will cost an additional amount of $5,000 to replace. How much will the Commercial General Liability policy will pay? Select one: A. $70,000 B. $75,000 C. $5,000 D. Nothing

B

The Debris Removal, under a Commercial Property Policy, what is the additional limit automatically provided? Choose one answer. a. $1,000. b. $10,000. c. $5,000. d. $2,500.

Virtually all property and liability insurance contracts are comprised of four fundamental parts

The Declarations, the Insuring Agreement, Exclusions, and Conditions

A

The Department of Financial Services may, at its discretion, issue a temporary license: Choose one answer. a. All of the answers are correct b. To a licensed agent's employee, family member, business associate, or personal representative c. In the event of death, disability, or absence of a general lines agent d. Only if no other person connected with the agent's business is licensed as a general lines agent

B

The Department of Financial Services of Florida may, upon written application and payment of fees, issue a nonresident license: Choose one answer. a. If a general lines agent only lives in Florida 8 months a year b. If a nonresident does not have a place of business in Florida, or does not have a direct or indirect interest in any insurance agency in Florida c. If a general lines agent's own state does not issue nonresident licenses in a like manner d. To a customer representative who is otherwise qualified and who is a resident of a state that does not share a common boundary with Florida

B

The Farm's Basic Cause of Loss form adds the additional peril of collision, but it applies only to? Choose one answer. a. All of the answers are correct b. Coverage E Scheduled Farm Personal Property c. Coverage C Household Private Property d. Coverage G Other Farm Structures

Glass Steagal Act

The Glass Steagal Act forced a separation between savings banks, investment banks, insurance companies and other financial institutions. The idea was to prevent mergers and acquisitions that may lead to bad things in the financial markets if giant companies failed.

C. 90 days

The Homeowner's, HO3 policy will provide coverage for a student away at college as long as the student's premises was not unoccupied more than how many days prior to the loss? Select one: A. 45 days B. 60 days C. 90 days D. 30 days

D

The Leasehold Interest Coverage Form covers all of the following exposures except? Choose one answer. a. Loss of the remaining value of improvements and betterments b. Loss of the remaining value of a bonus paid c. Loss of the remaining value of prepaid rents d. Tenant gain from an unfavorable sublease

D

The Maximum Period of Indemnity under the Business Income Coverage form provides how many days of indemnity? Choose one answer. a. 110 b. 100 c. 150 d. None of the above

What are the 2 offices of the Financial Services Commission

The Office of Financial Regulation and the Office of Insurance Regulation

What is the Dealers Drive-Away Collision endorsement?

The Physical Damage coverage exclusion regarding autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart. This endorsement eliminates this exclusion.

Which of the following is NOT a consideration in a policy?

The application given to a prospective insured

What happens if a non- member physician is utilized under the point-of-service plan?

The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount or percentage for privilege

What are the basic limits for the Physicians, Surgeons and Dentists liability form?

The basic limits are $250k per claim, $750k aggregate

What are the basic limits for the Hospital Professional Liability form?

The basic limits are $250k per incident, $750k aggregate

What are the basic limits for the Lawyers Professional Liability form?

The basic limits are $25k per incident, $75k aggregate

B

The builder's risk limit should be what percentage of the expected building's value at completion in order to satisfy the 'Need for Adequate Insurance' clause? Choose one answer. a. 80% b. 100% c. 75% d. 90%

Coverage trigger

The event, which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage, which occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is BI or PD, which occurs on or after the retroactive date and for which claim is made during the policy period.

When an umbrella policy is broader that underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

The excess over the self-insurer retention

If a person accumulated more continuing education hours than is necessary to fulfill the requirements for a 2-year period, which of the following will occur?

The extra hours may be continued into the next period

Negligence

The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.

A

The insured has a Commercial General Liability policy written on a Claims Made basis. During the policy term an incident occurred and was reported to the agent. No claim was made until two years after the expiration of the policy and after coverage had been renewed by another insurer. Which of the following describes how the insurer will respond? Choose one answer. a. The claim is covered by the carrier at the time of the incident, since the incident was reported during the policy period and the claim was made within five years of expiration of the claims made policy b. The claim will be denied because the Statute of Limitations has expired c. The claim will be denied because the claim was not presented during the policy period d. The claim will be paid by the current insurance company

A. All of these answers are correct

The insured has a Homeowner's, HO3 policy. A tree was struck by lightning, hit a power line, and damaged the roof of the dwelling, swimming pool and caused spoilage of food. Which items are covered? Select one: A. All of these answers are correct B. The tree C. The food spoilage D. The pool

A. Radio Antenna

The insured has purchased Mechanical Breakdown coverage. Which of the following are not covered? A. Radio Antenna B. Transmission C. Engine D. Air Conditioning

C. $100,000

The insured has the building covered under the Building and Personal Property Coverage Form in the amount of $100,000. The Replacement Cost Value of the building is $125,000. The policy contains a $5,000 deductible clause. Assuming no other coverage, which of the following is payable in the event of a $120,000 loss Select one: A. $125,000 B. $80,000 C. $100,000 D. $95,000

Under the Building and Personal Property Coverage form and Value Reporting coverage, what are the requirements for reporting?

The insured is required to submit value reports timely and accurately, and they must be filed within 30 days of the end of the month.

A. $500 any one item with a $2,500 maximum

The insured owns an apartment building, which is covered by a Businessowner's Policy. Which limits apply to covered losses to outdoor trees, shrubs, and plants? Select one: A. $500 any one item with a $2,500 maximum B. $250 any one item with a $5,000 maximum C. $250 any one item with a $2,500 maximum D. $500 any one item with a $5,000 maximum

B

The insured purchased $25,000 Extortion coverage. Which of the following losses will the insurer pay? Choose one answer. a. A customer is being held captive b. All of the answers are correct c. An employee is being held captive d. The company's president`s son is being held captive

D

The insured purchased a Commercial General Liability policy. The insured, suspecting illegal activities by a tenant, checked the tenant's apartment while the tenant was absent. The tenant sued for damages claiming wrongful entry. Which coverage under the Commercial General Liability policy applies? Choose one answer. a. Advertising Injury b. Bodily Injury c. Property Damage d. Personal Injury

B

The insured under a Commercial General Liability policy rents an additional warehouse. He would be covered without notice to the agent or the insurer for which of the following? Choose one answer. a. 60 days b. 90 days c. 30 days d. Remainder of the policy term

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

The insured would be responsible for the amount required as underlying limits in the event of a claim

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy ?

The insured would be responsible for the amount required as underlying limits in the vent of a claim

D

The insured's covered building, with a value of $125,000, insured for $100,000, was a total loss from a covered cause of loss. Cost of removing debris, after loss, was $7,000. The policy deductible is $5,000. With no other coverage issues, how much is payable to the insured? Choose one answer. a. $100,000 b. $125,000 c. $102,000 d. 107,000. The deductible applies to the loss, not to the amount of insurance.

C

The insured, a contractor, built a condominium building. Six months after completion, the roof of the lobby fell in due to faulty plumbing. Pipes in the wall were not connected properly, causing the loss. The Completed Operations coverage will pay? Choose one answer. a. No coverage because the loss occurred after the contractor had completed the job and relinquished possession of the premises b. Replacement of ceiling damage but no coverage for debris removal c. Coverage for damage caused by defective construction, but no coverage for repair or replacement of pipes d. The entire loss

Under a BOP, the inspections and surveys condition specifies all of the following EXCEPT

The insurer does not have the right to inspect the insured's property and operations

What will happen if a house covered by standard mortgage clause is a TL?

The insurer pays the mortgagee according to the mortgagee's interest in the property

Condition Contract

The insurer's responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss.

Law of large numbers

The more date you have, the more accurate your measurements and predictions will be when using that data. Law of large numbers is used to predict the frequency of losses and to accurately set rates. Risk can be measured on a large scale but is unpredictable on an individual scale.

Who is insured under section II?

The named insured for any covered auto. Permissive users- anyone with permission from the name insured.

Hospital indemnity/ hospital confinement indemnity policy will provide payment based on

The number of days confined in a hospital

A

The optional business income coverage which applies for loss caused by damage to property of others is known as what? Choose one answer. a. Dependent Properties b. Extended Period of Indemnity c. Maximum Period of Indemnity d. Monthly Limit of Indemnity

How much coverage does the insured get when the supplemental extended reporting period is purchased?

The original policy aggregate limits are reinstated for the extended period.

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary address

What types of perils are covered under a Businessowners policy?

The policy is written on an "open perils" basis.

Under the Building and Personal Property Coverage form, what is the maximum limit the Pollution cleanup and Removal coverage will pay?

The policy will pay a maximum of $10,000 as long as a covered loss is reported within 180 days of the date of the covered loss.

Risk

The possibility of losing goods and/or money

Explain the waiting period for disability benefits?

The waiting period is 7 days. However, if the disability lasts longer than 21 days, then the benefits are payable from day 1.

In accordance with the code of ethics agents must provide a completed application to

The prospective insured and the insurer

When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be

The proximate cause

When a strict chain of events resulting from a negligent act causes injury or damage, that act is considered to be

The proximate cause

On a DP-3 special form, the coverage provided for personal property is

The same as provided in the DP-2 Broad Form

Insuring Agreement

The section of an insurance policy, which states which losses will be indemnified, what property is covered, which perils are insured against.

Who is insured when the insured's legal status is an 'Individual'?

The spouse is an insured as to conduct of a business of which the named insured is sole owner, as are legal successors if the insured die.

Subrogation

The transfer to the insurance company of the insured's right to collect for damages.

Which is the following is an example of a producer's fiduciary fury?

The trust that a client in the producer in regard to handprint premiums

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

Under the Business Income Coverage form, how does the optional coverage 'Agreed Value' handle coinsurance?

The way to avoid the coinsurance penalty by having the insured agree to percentages of the total profit and expenses.

What business auto coverage form is used for?

To insure the automobile exposures of all business other than garage and trucking business.

What are the additional coverage under the Businessowners policy?

They are similar to those found in the Commercial Property coverage form.

What is the False Pretense endorsement?

This adds Physical Damage coverage for dealers to insure against loss from voluntarily parting with a covered auto by trick or scheme or from acquiring an auto from someone who does not have legal title.

Describe the Valuation clause under Part E

This clause provides for replacement cost coverage on all covered property, except if repair or replacement is not made within 18 months of the date of accident-in which case, actual cash value applies.

Describe the Suspension condition under Part E?

This condition states that whenever an object is found to be in, or exposed to a dangerous condition, any of our representatives may immediately suspend the insurance against loss from an accident to that object.

What is an Actual Cash Value endorsement?

This endorsement changes the loss settlement conditions from Replacement Cost to Actual Cash Value.

What does the Actual Loss Sustained Business Interruption endorsement cover?

This endorsement covers actual lost profits necessary for continuing expenses through the interruption period. The deductible can be expressed in days, or as a dollar amount.

What does the Consequential Damage endorsement cover?

This endorsement covers loss due to spoilage from lack of power, light, heat, steam, or refrigeration, when caused by an accident to a covered object.

What is the Drive Other Car Coverage endorsement?

This endorsement covers persons named therein, including spouses, for use of autos that are not covered autos under the BAP, and that they do not own.

What is the Broad Form Products endorsement?

This endorsement deletes the Liability coverage exclusion that states that coverage for products liability does not apply for damage to the insured's own products. The broadened coverage is subject to a deductible of $250 per accident.

What does the Valued Business Interruption endorsement pay for?

This endorsement pays an agreed dollar limit for each day of total interruption, or a proportionate part of that limit for partial interruption. The deductible can be expressed in days, or as a dollar amount.

What does an Extra Expense form pay for?

This endorsement pays for extraordinary expenses incurred to maintain ongoing operations, over and above normal operating expenses. The deductible is expressed in dollars.

What does a Bodily Injury Liability endorsement provide?

This endorsement provides EXCESS BI liability coverage over any other liability insurance.

Under the Building and Personal Property Coverage form, what is 'Peak Season' coverage?

This endorsement provides for stating additional amounts of insurance that apply during specific periods of the policy.

What is the Named Individuals-Broadened PIP endorsement?

This endorsement provides that persons named therein, spouse, and resident family members are treated as named insureds for PIP coverage. It is appropriate for attachment when the named insured furnishes an automobile to another person, such as an employee, who does not own an automobile and thus has no basis to secure family PIP coverage.

Liquor Liability Coverage

This form belongs to the Commercial General Liability coverage part of the Commercial Package Policy. It covers liquor liability, which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.

Jettison

Throwing overboard of parts of the ship or cargo to save the vessel from sinking of further damage

What was an important goal of ERISA related to employers?

To encourage individual employers to establish employee health plans. Whether self-insured or purchased.

All of the following types of property are covered by standard builders risk form EXCEPT

Tools 50 feet away from the building

B

Trucks which operate within a 50 mile to 200 mile radius would be rated? Choose one answer. a. Local b. Intermediate c. Long Distance All of these are correct

A Policy may be standard, statutory, or both

True

True or False: Section I states the causes of loss that are covered. Generalizing, HO-2 states named perils for all Section I coverages; HO-3 provides "all-risk" coverage for Coverages A and B and the named perils of HO-2 for Coverage C; HO-5 provides "all risk" or "open perils" coverage for Coverages A, B, and C; HO-4 and HO-6 include the HO-2 perils for Coverage C; HO-8 covers for named perils narrower than those in HO-2.

True

True or False: Dwelling units are single family either owner occupied or leased by the owner to a maximum 4 apartment or family units, mobile homes having not more than one apartment and household personal property in any apartment, cooperative or condominium units used as living quarters or rented to others.

True

Which is correct about eligibility rules for WCJUA?

Two companies reject , does not owe WC premium, FL agents writes

Proximate Clause

Unbroken connection b/w occurrence and damage. Ex: Water damage from firemen's water hose

D. $100,000/$300,000 Bodily Injury and $50,000 Property Damage

Under FAJUA, the maximum limits for Bodily Injury and Property Damage are: A. No Maximum B. $100,000/$300,000 Bodily Injury and $25,000 Property Damage C. $250,000/$500,000 Bodily Injury and $100,000 Property Damage D. $100,000/$300,000 Bodily Injury and $50,000 Property Damage

C

Under FAJUA, the maximum limits for Bodily Injury and Property Damage for commercial vehicles not required by law or regulation are: Choose one answer. a. $100,000/$300,000 Bodily Injury and $25,000 Property Damage b. $250,000/$500,000 Bodily Injury and $100,000 Property Damage c. $100,000/$300,000 Bodily Injury and $50,000 Property Damage d. No Maximum

B

Under FAJUA, the maximum limits for Bodily Injury and Property Damage for private passenger vehicles are: Choose one answer. a. $100,000/$300,000 Bodily Injury and $25,000 Property Damage b. $100,000/$300,000 Bodily Injury and $50,000 Property Damage c. No Maximum d. $250,000/$500,000 Bodily Injury and $100,000 Property Damage

B. Owned by the insured

Under a Commercial Property Policy, the Legal Liability coverage does not provide coverage for the insured against damage to which type of property? A. Customer's goods B. Owned by the insured C. Leased equipment D. In the care, custody, and control of the insured

D

Under a Commercial Property Policy, which Cancellation/Nonrenewal day limit is incorrect? Choose one answer. a. 10 days for nonpayment of premium b. 20 days for cancellation within the first 90 days the policy is in force c. 45 days advance written notice of nonrenewal d. 30 days for cancellation within the first 90 days the policy is in force

C. The Insurer would pay $10,000 (25% of the current coverage, maximum of $10,000)

Under a Personal Articles Floater a man and his wife had an individually scheduled ring covered for $75,000. They later purchased a ring for $150,000 and did not report the purchase to the insurer for two days. Before the purchase was reported, the $150,000 ring was stolen. How would the claim be settled? Select one: A. The Insurer would pay $150,000 B. The Insurer would pay 25% of $150,000 C. The Insurer would pay $10,000 D. The Insurer would pay $75,000

C. Collateral

Under a Surety Bond, valuable property held by Surety for the life of the bond is called: A. Capital B. Joint Venture C. Collateral D. Principal

A

Under a Surety Bond, valuable property held by Surety for the life of the bond is called? Choose one answer. a. Collateral b. Principal c. Joint Venture d. Capital

D

Under a basic Boiler and Machinery Form, with no special endorsements, which of the following losses would be covered? Choose one answer. a. During an accident involving a covered object, a visitor on the insured's premises suffers injuries and sued the insured b. During testing, after some repairs, a boiler had a sudden breakdown c. The insured suffers loss of income following an accident to a covered object d. Property owned by another in the care of the insured was damaged in an accident to an insured object, resulting in a claim by the owner of the property

D

Under a personal articles floater a man and his wife had an individually scheduled ring covered for $75,000. They later purchased a ring for $150,000 and did not report the purchase to the insurer for two days. Before the purchase was reported, the $150,000 ring was stolen. How would the claim be settled? Choose one answer. a. The insurer would pay $75,000 b. The insurer would pay $150,000 c. The insurer would pay 25% of $150,000 d. The insurer would pay $10,000 (25% of the current coverage, maximum of $10,000)

C

Under a policy with the Boiler and Machinery form, with no endorsements, state "covered" or "not covered" for the following incidents, and explain. If not covered, state how (if at all) it could have been covered under Boiler and Machinery insurance: "Following some repairs, a boiler had a sudden and accidental breakdown while being tested"? Choose one answer. a. Covered (subject to a limit of $25,000) - covered property b. Not covered - breakdown is an optional coverage, which must be added by endorsement, if desired. c. Not covered - exclusions delete coverage during testing. d. Covered - included in definition of covered property

A

Under a policy with the Boiler and Machinery form, with no endorsements, state "covered" or "not covered" for the following incidents, and explain. If not covered, state how (if at all) it could have been covered under Boiler and Machinery insurance: "Personal property owned by another, in the insured's care, was damaged in an accident involving a covered object, resulting in a liability claim by the owner"? Choose one answer. a. Covered - included in definition of covered property. b. Not covered - property damage liability is an optional coverage, which must be added by endorsement, if desired. c. Covered (subject to a limit of $25,000) - covered property d. Not covered - exclusions delete coverage

A

Under a policy with the Boiler and Machinery form, with no endorsements, state "covered" or "not covered" for the following incidents, and explain. If not covered, state how (if at all) it could have been covered under Boiler and Machinery insurance: "The insured suffered water damage to carpeting and floor when an accident occurred to the air conditioning unit, a covered object"? Choose one answer. a. Covered (subject to a limit of $25,000) - covered property. b. Not covered - water damage is an optional coverage, which must be added by endorsement, if desired. c. Not covered - exclusions delete coverage. d. Covered (subject to a limit of $50,000) - covered property.

C

Under a policy with the Boiler and Machinery form, with no endorsements, state "covered" or "not covered" for the following incidents, and explain. If not covered, state how (if at all) it could have been covered under Boiler and Machinery insurance: "The insured suffered windstorm damage water the air conditioning unit, a covered object"? Choose one answer. a. Covered (subject to a limit of $25,000) - covered property. b. Not covered - windstorm is an optional coverage, which must be added by endorsement, if desired. c. Not covered - exclusions delete coverage. d. Covered (subject to a limit of $50,000) - covered property.

D. None of these answers are correct.

Under the Building and Personal Property coverage form, which of the following items would be covered for damage by windstorm? Select one: A. Outdoor TV antenna B. Fences C. Shrubbery D. None of these answers are correct.

A

Under the Business Income Coverage Form, to be in compliance with the Coinsurance condition, the amount of insurance must be equal to the coinsurance percentage times the total of what? Choose one answer. a. Pre tax profit/loss and all operating expenses b. Post tax profit/loss and all operating expenses c. Pre tax profit/loss and only continuing normal operating expenses d. Post tax profit/loss and only continuing normal operating expenses

A

Under the Commercial Property Policy, Property Not Covered includes all items except? Choose one answer. a. Employee's personal effects b. Detached outdoor signs c. Money d. Wharves & Docks

A

Under the Commercial Property Policy, the Preservation of Property provision imposes a maximum time limit of how many days? Choose one answer. a. 30 days b. 10 days c. 60 days d. 45 days

C

Under the Commercial Property Policy, the Valuable Papers & Records coverage pays cost of research subject to a maximum of how much? Choose one answer. a. $1,000. b. $5,000. c. $2,500. d. $10,000.

B

Under the Commercial Property Policy, the property off-premises coverage is limited to a maximum of how much? Choose one answer. a. $1,000. b. $10,000. c. $2,500. d. $5,000.

C

Under the Commercial Property Policy, the value reporting form limits a settlement to which percentage if the first report is not filed in time? Choose one answer. a. 50% b. 90% c. 75% d. 80%

B

Under the Commercial Property policy the Special Cause of Loss form provides coverage for direct physical loss on an 'all risk' basis unless the loss is from which one of the following perils? Choose one answer. a. Prolonged leakage or seepage of water b. All of the answers are correct c. Employee dishonesty d. Zoning & Planning errors

D. All of these answers are correct

Under the Commercial Property policy, the Special Causes of Loss Form provides coverage for direct physical loss unless the loss is from which one of the following perils? A. Employee dishonesty B. Wear and tear C. Zoning and planning errors D. All of these answers are correct

D

Under the Flood Program, an eligible building must meet which of the following criteria? Choose one answer. a. Have walls and a roof b. Be principally above ground by at least 50% c. Be located within an eligible community d. All of the answers are correct

C

Under the Garagekeepers coverage, Section III of the Garage policy, the insured suffers a single vandalism loss to nine (9) vehicles belonging to customers. Damage is $100 per vehicle. How much will the policy pay? Choose one answer. a. $900 b. $500 c. $400 d. Nothing

C. All of these answers are correct

Under the Trucker's Bodily Injury and Property Damage coverage form, which of the following is covered? A. A tractor cab with a semi-trailer attached jackknifed and the trailer caused damage B. The insured borrows a truck, which causes an at-fault accident C. All of these answers are correct D. The insured was operating their truck, which caused an accident

D

Under the Trucker's Bodily Injury and Property Damage coverage form, which of the following is covered? Choose one answer. a. The insured borrows a truck, which causes an at-fault accident b. The insured was operating his own truck, which caused an accident c. A tractor with a semi-trailer attached jackknifed and the trailer caused damage d. All of these are correct

D

Under the commercial property policy, automatic coverage is provided for 30 days for newly acquired buildings and locations subject to which maximum amount collectible? Choose one answer. a. 25%, $250,000 Building & 10%, $100,000 Contents b. $50,000 Building & $50,000 Contents c. $100,000 Building & $25,000 Contents d. $250,000 Building & $100,000 Contents

B

Under the dwelling fire program, extended coverage does not include which peril? Choose one answer. a. Riot or civil commotion b. Theft c. Windstorm d. Volcanic eruption

A. Other property is valued at Replacement Cost at the time the loss is discovered

Under the general provisions of the Crime Policy, which of the following valuations is incorrect? A. Other property is valued at Replacement Cost at the time the loss is discovered B. Money is valued at Face Value C. Other property is valued at the lesser of actual replacement cost or the cost to repair D. Securities are valued at the time the loss is discovered

A

Under the general provisions of the Crime Policy, which of the following valuations is incorrect? Choose one answer. a. Other property is valued at Replacement Cost at the time the loss is discovered b. Money is valued at Face Value c. Securities are valued at the time the loss is discovered d. Other property is valued at the lesser of actual replacement cost or the cost to repair

D

Under the homeowner's program which person does not qualify as an insured under the policy? Choose one answer. a. Spouse b. Residing relative staying for only two weeks c. An 18 year old nephew under the dwelling owner's responsibility d. All of these qualify

C

Under what conditions would the bonding company usually require an indemnitor? Choose one answer. a. Collateral; if the bond contains a financial guarantee (a given amount at some date or on the happening of some contingency etc.) the surety may require that the bond be collateralized by deposit of cash or other valuable property. b. The greatest emphasis in surety ship is to provide a guarantee for the fulfillment of a contractual obligation, particularly, agreement for construction and for supplying goods. c. The surety satisfying itself that the principal has the capabilities to perform the obligation, but is lacking the necessary financial resources to carry it safely through to completion. d. The Surety will wish to satisfy itself on (1) the character of the principal (dependable reputation to warrant the surety's trust) (2) the principal's financial resources (capital) and (3) the experience or capabilities of the principal to perform.

B

Uninsured Motorist coverage may be issued on either a stacked limit or unstacked limit. Which of the following is true of UM coverage? Choose one answer. a. 'Non stacked' coverage is offered at a reduced rate b. All of the answers are correct c. 'Non stacked' limits mean that uninsured motorists coverage only applies to the limit of the applicable motor vehicle covered on the policy. d. 'Stacked' limits mean that if uninsured motorist coverage applies to more than one insured vehicle, the limits may be added together to cover injuries to any person in an accident.

Describe the difference between a Businessowners Policy and a Commercial Package Policy?

Unlike a Commercial Package policy, where coverages are elective, the essence of a Businessowners policy is to provide an indivisible package of basically required coverages designed to meet the ordinary needs of certain classes of business.

Under the Building and Personal Property Coverage form, what is the limit for Outdoor Property?

Up to $1,000, but not more than $250 on any one tree, shrub or plant.

Under the Building and Personal Property Coverage form, what is the limit for Property Off-Premises?

Up to $10,000

Which is correct regarding max. PIP benefits?

Up to $10,000 max. For each person in the accident plus $5,000 funeral expenses

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

Up to $100 for the cost to secure the release of a vehicle from an impoundment Lot following a covered accident

Under the Building and Personal Property Coverage form, what is the limit for Valuable Papers and Records?

Up to $2,500 coverage at each premises.

Under the Building and Personal Property Coverage form, what is the limit for Personal Effects and Property of Others?

Up to $2,500 is available at each premises

Which is most correct regarding transportation expense limitation for a total theft

Up to $20 daily and $600 max. - 48 hrs waiting period

A building is insured, but not one lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered

Vacant

C

Vehicles used for other uses not qualifying as retail or service would be rated? Choose one answer. a. Retail b. Service c. Commercial d. All of these are correct

B

Vehicles used to go from job site to job site are rated? Choose one answer. a. Retail b. Service c. Commercial d. All of these are correct

Liability imposed on one party as a result of the actions of another person known as

Vicarious liability

C

W & P Enterprises ships ceramic tile in cartons on the deck of a commercial ship from the manufacturer in Spain to their distribution plant in Ft. Lauderdale. During a shipment, the ship starts to sink. Rather than try to off load the ceramic tile to another ship standing by, W & P Enterprises allows the tile cartons to sink knowing their insurance will cover their loss. Which clause would their insurer use to deny the claim? Choose one answer. a. Free of Particular Average clause b. General Average clause c. Sue & Labor clause d. Running Down clause

Both broad and limited theft endorsements on the dwelling program exclude all of the following types of property EXCEPT

Watercraft

A

What are "unfair claim settlement practices"? Choose one answer. a. Attempting to settle claims on the basis of an application or material document which was altered without notice to or knowledge or consent of the insured or a material misrepresentation for the purpose of settlement of a claim on less favorable terms. b. Knowingly making a false or fraudulent written or oral statement or representation on or relative to any application or negotiation for insurance policy for the purpose of obtaining a fee, commission, or any other benefit. c. Knowingly making any misleading representations of any insurance policy for the purpose of inducing a person to lapse, forfeit, surrender etc. any insurance policy or to take out a policy of insurance with another insurer. d. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person.

D

What are "unlawful rebates"? Choose one answer. a. Knowingly making, issuing, circulating any estimate, illustration, circular, statement, sales representation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy etc. b. Knowingly making or permitting any unfair discrimination of the rates charged for any life insurance or annuity contract or knowingly making or permitting any unfair discrimination between individuals of the same actuarial class in the amount of premium. c. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person. d. Permitting or offering to make any rebate unless plainly expressed in the insurance contract.

B

What are Florida's continuing educations requirements for customer representatives and limited customer representative? Choose one answer. a. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 12 hours of continuing education courses every two years. b. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 10 hours of continuing education courses every two years. c. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 15 hours of continuing education courses every two years. d. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 24 hours of continuing education courses every two years.

B

What are Florida's continuing educations requirements? Choose one answer. a. Each licensee must complete a minimum of 20 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 20 hours every two years in intermediate or advanced level courses. b. Each licensee must complete a minimum of 24 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 20 hours every two years in intermediate or advanced level courses. c. Each licensee must complete a minimum of 25 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 24 hours every two years in intermediate or advanced level courses. d. Each licensee must complete a minimum of 24 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 10 hours every two years in intermediate or advanced level courses.

A

What are a customer representative's powers? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. A customer representative's license may not cover any kind of insurance for which the appointing agent or appointing agency is not licensed. d. A customer representative's license may not cover life insurance

A

What are conditions under which a licensee can rebate a license? Choose one answer. a. Both of the answers are correct b. The rebate must be in accordance with the filed rebating schedule. c. The rebate must be available to all insured in the same actuarial class, uniformly applied and not subject to discrimination. d. None of the answers are correct

B

What are conditions under which the Department has a mandatory obligation to deny an application or suspended, revoke, or refused to renew or continue the license or appointment of any applicant or licensee? Choose one answer. a. Lack of one or more qualifications for the license or appointment b. Any of the answers are correct c. Failure to pass the licensed exam d. Material misstatement, misrepresentation, or fraud in obtaining the license or appointment

A

What are possible consequences for acting as an insurer without proper license? Choose one answer. a. All of the answers are correct b. Any person acting as an insurer without a Certificate of Authority may be convicted of a third-degree felony c. Subject to suspension or revocation of all insurance licenses d. Any person acting as an insurer without a Certificate of Authority may be subject to suspension or revocation of all insurance licenses

A

What are possible consequences for aiding and abetting an unauthorized insurer? Choose one answer. a. All of the answers are correct b. Liability for all unpaid claims of the unauthorized insurer c. Subject to suspension or revocation of all insurance licenses d. Conviction of a third-party felony

C

What are some of the features of the building coverage under the property form in the BOP? Choose one answer. a. Coverage is unconditionally on a replacement cost basis. There is no coinsurance clause. b. If the limit of insurance equals less than 90% of the covered property replacement cost, a loss will be valued at actual cash value c. Coverage is on a replacement cost basis as long as the limit of insurance equals at least 80% of the covered property replacement d. All of the answers are correct

D

What are some of the features of the building coverage under the property form in the BOP? Choose one answer. a. There is a built-in inflation guard protection wherein the amount of building coverage automatically increases by 8% annually unless a higher or lower percentage is purchased b. Outdoor property is covered up to $2,500 but no more than $500 for any one tree, shrub or plant c. Coverage on a main building includes appurtenant structures on the same premises d. All of the answers are correct

C

What are some of the optional coverages of the business owner`s policy? Choose one answer. a. Accounts receivable with limits increased above the standard $10,000 on premises b. Employee dishonesty c. All of the answers are correct d. Valuable papers and records with limits increased above the standard above the standard $10,000 on premises

B. All of these answers are correct

What are some perils unique to farm coverage? A. Electrocution, drowning, or accidental shooting of covered livestock B. All of these answers are correct C. Attacks on covered livestock by dogs or wild animals D. Loading/unloading accidents

C

What are standard deductibles in a commercial property policy? Choose one answer. a. The standard deductible is $500 for all loss or damage in any one occurrence for all perils other than hurricanes. For hurricanes, a minimum of $500/maximum 3% of policy limits deductible applies. b. The standard deductible is $1,000 for all loss or damage in any one occurrence for all perils other than hurricanes. For hurricanes, a minimum of $1,000/maximum 10% of policy limits deductible applies. c. The standard deductible is $500 for all loss or damage in any one occurrence for all perils other than hurricanes. For hurricanes, a minimum of $500/maximum 10% of policy limits deductible applies. d. The standard deductible is $500 for all loss or damage in any one occurrence for all perils other than hurricanes. For hurricanes, a minimum of $500/maximum 5% of policy limits deductible applies.

B

What are the PIP benefits? Choose one answer. a. Loss of time from work and replacement services b. All of the answers are correct c. Medical d. Death

A

What are the categories of "benefits" under the worker's compensation law? Choose one answer. a. All of the answers are correct. b. Death benefits c. Payment of medical expenses d. Compensation for disability --...

C

What are the characteristics, which make coverages eligible for Inland Marine Insurance? Choose one answer. a. A wide variety of seemingly unrelated risks such as an element of portability b. None of the answers are correct c. Both of the answers are correct d. Inland Marine forms do not cover such stationary property as real estate, furniture, fixtures, or merchandise.

D

What are the coverages and limits for commercial vehicles under the FAJUA? Choose one answer. a. All of the answers are correct b. Commercial auto applications are eligible for Liability coverage with limits up to 10/20/10 and Personal Injury Protection. c. The only coverages available are Liability, Personal Injury Protection and Uninsured Motorist. Liability limits to 100/300/50. d. The only coverages available are Liability, Personal Injury Protection and Uninsured Motorist. Liability limits to 100/300/50. The FAJUA is required however, to provide any higher limits required by any law or regulation.

D

What are the exceptions to the exclusion for liability assumed under a contract? Choose one answer. a. Some contracts are an exception such as leases, sidetrack agreements, easement agreements and certain other agreements so long as they are entered into prior to the injury or damage b. None of the answers are correct c. If the insured would have been legally liable, regardless of the contractual assumption d. Both of the answers are correct

D

What are the exceptions to the exclusion for liability for aircraft, automobiles or watercraft? Choose one answer. a. Liability for aircraft and watercraft, assumed under a contract even if excluded by the contractual exclusion b. Watercraft ashore on the insured's premises, or if less than 30 feet long and not owned by the insured and not being used to carry persons or property for a charge c. All of the answers are correct d. Parking of others autos on or next to the insured's premises

D

What are the exclusions in section II of a homeowner's policy? Choose one answer. a. The policy limits coverage as to watercraft b. The policy limits coverage as to motorized land conveyances c. The policy limits coverage as to business or professional activities d. All of the answers are correct

C

What are the general conditions in section II of a homeowner's policy? Choose one answer. a. They provide for various details such as assignments b. They provide for various details such as subrogation and death of the insured c. All of the answers are correct d. They provide for various details such as changes

C

What are the insured's responsibilities after a loss described under Part E of a PAP? Choose one answer. a. Reports to the police if it is a UM hit-and-run claim or theft claim b. Prompt notice of any claim and forwarding of any legal papers c. All of the answers are correct d. Cooperation and submission to physical exams and to examination under oath if requested

B

What are the limits available in Uninsured Motorist coverage? Choose one answer. a. There may be split limits with a minimum being $10,000 per person and $20,000 per accident (10/20) b. All of the answers are correct. c. There may be a single limit; minimum usually is $20,000 per accident d. Limits are offered in the same way as liability coverage

D

What are the limits of coverage under the Florida Automobile Underwriting Association for private passenger autos? Choose one answer. a. Private passenger auto applications are eligible for Liability coverage with limits up to 10/20/10 and Personal Injury Protection. b. The FAJUA is required to provide any higher limits required by any law or regulation. c. The only coverages available are Liability, Personal Injury Protection and Uninsured Motorist. Liability limits to 100/300/50. d. Private passenger auto applications are eligible for Liability coverage with limits up to 100/300/50, Personal Injury Protection, Uninsured Motorist coverage. Medical Payments coverage with $500, $1,000 or $2,000 limit, and Physical Damage coverage.

B

What are the limits of insurance in a CGL Policy? Choose one answer. a. A fire damage limit of $200,000 applies with respect to damages for each fire to a premises rented to the insured b. Limits apply to each occurrence for BI, PD and Medical Payments. (1) The basic limit is $100,000. Lower limits of $25,000 or $50,000 are available. Higher limits such as $200,000, $300,000, $500,000 or $1,000,000 are commonly written. c. Normally the personal and advertising injury limit is twice the BI and PD limit d. All of the answers are correct

C

What are the limits of liability in section II of a homeowner's policy? Choose one answer. a. Basic limits of liability are $300,000 per occurrence for Coverage E and $3,000 per person for Coverage F. These limits may be increased. b. Basic limits of liability are $500,000 per occurrence for Coverage E and $5,000 per person for Coverage F. These limits may be increased. c. Basic limits of liability are $100,000 per occurrence for Coverage E and $1,000 per person for Coverage F. These limits may be increased. d. Basic limits of liability are $1,000,000 per occurrence for Coverage E and $1,000 per person for Coverage F. These limits may be increased.

A

What are the limits on lines and products the Customer Representative may handle? Choose one answer. a. A customer representative may handle insurance business the specific supervising insurance agent is appointed to handle. b. Any automobile policy c. Any property or liability policy d. Any of answers are correct

B

What are the options usually available for Uninsured Motorists coverage? Choose one answer. a. The Business Auto policy insures the automobile exposure of businesses verses individuals and families b. UM (stacked or unstacked), equal to liability limits, or by election (stacked or unstacked) at lower limits, or rejection of the coverage if permitted by State Law. c. One is used to insure the automobile exposures of individuals and families; the other insures the automobile exposures of businesses d. The last. Coverage applies "without" regard to fault.

A

What are the penalties for diverting or misappropriating "trust funds"? Choose one answer. a. The penalties range from first-degree misdemeanor to first-degree felony. b. There is no set penalty for diverting or misappropriating "trust funds"; any judgment is left to the courts c. The penalty is a first-degree felony d. The penalty is a first-degree misdemeanor

B

What are the penalties for employers who are required to carry worker's compensation benefits for employees but fail to do so? Choose one answer. a. A fine of $5,000 plus $100 for each day of non-compliance may be levied b. The employer may be prevented from employing persons or conducting business until compliance is accomplished c. All of the answers are correct d. Such failure is a first-degree misdemeanor --...

A

What are the requirements for a customer representative's license? Choose one answer. a. All of the answers are correct b. The applicant must be qualified as to knowledge, experience or instruction in the business of insurance, must have passed any required examination or license, etc. c. The applicant must be a natural person at least 18 years at age d. The applicant must be a bona fide resident at this state

C

What are the requirements for a general lines agent's license? Choose one answer. a. The applicant must be a bona fide resident at this state b. The applicant must be a natural person at least 18 years at age c. All of the answers are correct d. The applicant must be qualified as to knowledge, experience or instruction in the business of insurance, must have passed any required examination or license, etc.

A

What are the requirements for a licensee who changes his or her name, residence address, principal business street address, or mailing address? Choose one answer. a. Each licensee must notify the department in writing within 30 days of any change of name, residence address, principal business street address, or mailing address. b. Each licensee must notify the department in writing within 60 days of any change of name, residence address, principal business street address, or mailing address. c. There is no requirement d. Each licensee must notify the department in writing within 90 days of any change of name, residence address, principal business street address, or mailing address.

A. All of these answers are correct.

What are the rules that allow for state regulation of MEWAs? A. All of these answers are correct. B. If not fully insured, the MEWA is subject to all state insurance laws not inconsistent with ERISA C. A MEWA that is not an employee benefit plan is subject to state insurance regulation. D. If fully insured, the MEWA remains subject to state regulation

D

What are the rules that allow for state regulation of MEWAs? Choose one answer. a. A MEWA that is not an employee benefit plan is subject to state insurance regulation. b. If fully insured, the MEWA remains subject to state regulation. c. If not fully insured, the MEWA is subject to all state insurance laws not inconsistent with ERISA. d. All of the answers are correct

A

What are the three underwriting characteristics for bonds? Choose one answer. a. Character, capital, and capability b. Indemnitor, collateral, and joint control c. Indemnitor, financial ability, and capability d. Reputation, financial ability and Indemnitor

B

What circumstances could cause a refusal of coverage under the worker's compensation law? Choose one answer. a. An employee is not entitled to compensation if the injury is caused by that employee's intoxication (.08% or more blood alcohol) b. All of the answers are correct. c. An employee is not entitled to compensation if the injury is caused by that employee's willful intention to injure or kill oneself or another. d. An employee is not entitled to compensation if the injury is caused by that employee's wrongful use of drugs --...

C

What classes of risk are eligible for a CPP? Choose one answer. a. All commercial or business classes b. All classes c. All classes are, except those that are eligible for homeowners insurance. d. Apartment houses and residential condominiums; offices and office condominium associations

C

What type of property is covered under the Boiler and Machinery form? Choose one answer. a. All forms of property not just boiler or other objects b. Property in the care, custody or control of the insured for which the insured is legally liable c. All of the answers are correct d. Property owned by the insured

C

What constitutes a CPP? Choose one answer. a. Any two or more of the following "coverage parts": Commercial Property; Commercial General Liability; Commercial Auto (includes Business Auto, Garage and Truckers b. Any two or more of the following "coverage parts": Commercial Property; Commercial General Liability; Commercial Crime/Employee Dishonesty; Commercial Inland Marine; Boiler and Machinery; Commercial Auto (includes Business Auto, Garage and Truckers) c. Any two or more of the following "coverage parts": Commercial Inland Marine; Boiler and Machinery; Commercial Auto (includes Business Auto, Garage and Truckers d. Any two coverage parts

D. Legal Liability coverage

What coverage form applies for one who leases a building from another, as to the possibility of being responsible to the owner for damage to the building caused by fire due to negligence of the tenant? A. Agreed Value coverage B. Builders Risk coverage C. Replacement Cost coverage D. Legal Liability coverage

B

What coverage is provided by Coverage A of the CGL form? Choose one answer. a. There must be a legal obligation to pay and that obligation must be for damages. b. All of the answers are correct c. The form states: "We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" (BI) or "property damage"" (PD) to which this insurance applies". d. The claim must be against someone who has the status of "insured"

A

What coverages are automatically provided as an extension of Part A? Choose one answer. a. All of the answers are correct b. Expediting expenses c. Defense cost for claims or suits arising out of covered occurrences d. Automatic coverage for 90 days

A

What coverages are available under Citizens? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. The risk must be entitled to, but unable to procure, commercial property coverage in the voluntary market. There are several specifically ineligible risks. d. Citizens provides a commercial property market for condominium associations, apartment buildings, common elements of homeowner's associations and other commercial coverages for residences.

A

What coverages are included in the Electronic Data Processing coverage? Choose one answer. a. All of the answers are correct b. Data and media or software c. Extra expense to cover abnormal expenses of operating following covered damage d. Equipment or hardware

A

What coverages are provided by the Leasehold Interest Form? Choose one answer. a. All of the answers are correct b. Loss of the remaining value of a bonus paid to acquire a lease c. Tenant loss of a favorable sublease d. Tenant loss of a favorable lease

A

What death benefits are paid under the worker's compensation law? Choose one answer. a. All of the answers are correct b. Actual funeral expenses not to exceed $7,500, are payable. c. Then benefits to dependent relatives are payable based on a maximum of 66 2/3% of the average weekly wage (not exceeding the statewide average wage), up to a maximum of $150,000 for all dependents d. Spouses, children, parents and other relatives are eligible dependents for various rates of compensation --...

D

What determines the rates for automobile policies? Choose one answer. a. Where the vehicle is garaged b. The age, sex and marital status of the persons operating the vehicle c. How the vehicle is used and the prior driving records of the persons operating the vehicle d. All of the answers are correct

A

What does Symbol 1 in the Business Auto Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

B

What does Symbol 2 in the Business Auto Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles. d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

A

What does Symbol 21 in the Garage Insurance Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

B

What does Symbol 22 in the Garage Insurance Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles. d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

C

What does Symbol 23 in the Garage Insurance Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles. d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

D

What types of equipment are included in the definition of mobile equipment in the CGL? Choose one answer. a. Bulldozers, farm machinery, forklifts and other vehicles designed primarily for road use b. Transportation of mobile equipment by automobile c. All of the answers are correct d. Vehicles maintained solely for use on or next to the premises the insured owns or rents.

D

What does Symbol 24 in the Garage Insurance Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles. d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

A

What does Symbol 25 in the Garage Insurance Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically described autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

B

What does Symbol 27 in the Garage Insurance Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically described autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

C

What does Symbol 28 in the Garage Insurance Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically described autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

D

What does Symbol 29 in the Garage Insurance Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically described autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

C

What does Symbol 3 in the Business Auto Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles. d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

A

What does Symbol 30 in the Garage Insurance Policy mean? Choose one answer. a. Autos left with you for service, repair, storage and safekeeping. b. "Specifically described autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

B

What does Symbol 31 in the Garage Insurance Policy mean? Choose one answer. a. Autos left with you for service, repair, storage and safekeeping. b. Dealers autos and autos held for sale by non-dealers or trailer dealers (physical damage). c. "Specifically described autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. d. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households.

D

What does Symbol 4 in the Business Auto Policy mean? Choose one answer. a. 'Any Auto.' This means the policy covers any auto owned, hired, or non-owned by the insured. b. 'Owned Autos Only.' This symbol covers all automobiles owned by the insured throughout the policy period. c. 'Owned Private Passenger Autos Only.' Coverage applies only to owned private passenger automobiles d. 'Owned Autos Other Than Private Passenger Autos Only.' Does not apply to private passenger autos.

A

What does Symbol 5 in the Business Auto Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically Described Autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households d. "Nonowned Autos Only". Coverage applies to autos which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

B

What does Symbol 7 in the Business Auto Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically Described Autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

Negligence

failure to give the care that the law requires is needed to protect others from harm

C

What does Symbol 8 in the Business Auto Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically Described Autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit. c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households. d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

D

What does Symbol 9 in the Business Auto Policy mean? Choose one answer. a. "Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law. b. "Specifically Described Autos". Coverage applies to only specific autos identified in the declarations including non-owned trailers while attached to any such unit c. "Hired Autos only". Coverage applies to autos the named insured hires, rents, leases or borrows from persons other than employees of members of their households d. "Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

B

What does the Inside The Premises-Robbery Or Safe Burglary Of Other Property coverage include? Choose one answer. a. Loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction, as well as robbery of other property under the same circumstances. b. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees) c. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage d. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker

D

What does the Inside The Premises-Theft of Money and Securities coverage include? Choose one answer. a. Loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction, as well as robbery of other property under the same circumstances. b. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees. c. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker. d. Loss of money and securities resulting from theft, disappearance, or destruction as well as damage to the premises if the insured is the owner or liable for the damage.

A

What does the Outside The Premises agreement include? Choose one answer. a. Loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction, as well as robbery of other property under the same circumstances. b. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees.) c. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage. d. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker.

D

What does the endorsement Safe Depository include? Choose one answer. a. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees). b. Named insured's legal liability for guest's property while in a safe deposit box or while the property is inside the premises or in the named insured's possession. c. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker d. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage

C

What does the endorsement Securities Deposited With Others include? Choose one answer. a. Loss of or damage to property other than money and securities from inside the premises resulting from an actual or attempted robbery of a "custodian" (defined to mean you, your partners or an "employee", but does not include leased employees). b. Named insured's legal liability for guest's property while in a safe deposit box or while the property is inside the premises or in the named insured's possession. c. Theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a banker or stockbroker d. Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage

A

What exclusions are in a Boiler and Machinery Coverage Form? Choose one answer. a. All of the answers are correct b. Any increase in loss from enforcement of law regulating repair, alteration, use, operation, construction or installation c. Flood d. Lightning

B

What extensions of coverage are available under the Boiler and Machinery policy? Choose one answer. a. Automatic Coverage (90 days automatic coverage) b. All of the answers are correct c. Defense (defend the insured against claims or suits) d. Expediting Expenses (cost of temporary repairs etc)

D

What form will be issued in a homeowner's insurance policy if the two owner occupants jointly own a two family dwelling? Choose one answer. a. Neither answer is correct b. HO-4 may be issued to the other co-owner. c. HO-2, HO-3, HO-5 or HO-8 may be issued in the name of one co-owner (with the interest of the other co-owner in the dwelling included) d. Both answers are correct

D

What is Florida's cancellation/non-renewal requirement for commercial property? Choose one answer. a. 10 days notice for nonpayment b. 20 days including the reason for such except for nonpayment within the first 90 days. c. 45 days including the reason for such other than for nonpayment after the first 90 days d. All of the answers are correct

D

What is Freight coverage in Ocean Marine Insurance? Choose one answer. a. Coverage for loss of or damage to the vessel for perils of fire, lightning, earthquake, assailing thieves, "perils of the seas", jettisons, barratry of the master or mariners and "all other like perils." b. The coverage for loss or damage to goods. c. Covers the risk that the ship will collide with another vessel. d. Provides protection for the vessel owner in the event freight charges are not paid.

A

What is Hull coverage in Ocean Marine Insurance? Choose one answer. a. Coverage for loss of or damage to the vessel for perils of fire, lightning, earthquake, assailing thieves, "perils of the seas", jettisons, barratry of the master or mariners and "all other like perils." b. Covers the risk that the ship will collide with another vessel. c. The coverage for loss or damage to goods. d. Provides protection for the vessel owner in the event freight charges are not paid.

B

What is Personal and Advertising Injury-Coverage B of the CGL Policy? Choose one answer. a. Excludes coverage for any offense committed by an insured whose business is advertising, broadcasting, publishing or telecasting. b. Both of the answers are correct c. Personal Injury covers claims against the insured for false arrest, detention or imprisonment, malicious prosecution; wrongful entry or eviction; and oral or written publications that libel, or violate rights of private occupancy. d. None of the answers are correct

D

What is a Business owner`s Policy (BOP)? Choose one answer. a. It is an indivisible package of basically required coverages b. This policy is conceptually similar to the homeowner's policy. c. It is designed to meet the ordinary needs of certain classes of business d. All of the answers are correct

Local

What is a vehicle driven up to 50 miles in radius called

B

What is agreed value coverage? Choose one answer. a. All of the answers are correct b. Is based on the insured having 80% insured value to waive the coinsurance clause c. May only be applied to buildings d. Is based on the insured and insurer having agreed to the values of the property

C

What is an example of a business's liability being assumed under a contract? Choose one answer. a. A person being injured by an allegedly unsafe condition in premises owned or occupied by the insured. b. All of the answers are correct c. The business being held liable for liability ordinarily belonging to another, but the business agreed by contract to indemnify or hold harmless one whose direct actions produced the claim. d. The business being held liable for actions of an independent contractor to whom the insured has subcontracted a part of the general contract work.

B

What is an example of a business's liability for the existence of "indirect" hazards? Choose one answer. a. A person being injured by an allegedly unsafe condition in premises owned or occupied by the insured. b. The business being held liable for actions of an independent contractor to whom the insured has subcontracted a part of the general contract work. c. The business being held liable for liability ordinarily belonging to another, but the business agreed by contract to indemnify or hold harmless one whose direct actions produced the claim. d. All of the answers are correct

D

What is building ordinance coverage? Choose one answer. a. Covers changes in building ordinances requiring newer construction following a loss b. Requires 80% or higher coinsurance and replacement cost coverage c. Includes required demolition of undamaged portions of buildings d. All of the answers are correct

B

What is considered compliance with the Coinsurance condition in the Business Income form? Choose one answer. a. The amount of insurance must be equal to the coinsurance percentage times the total of net after-tax profit or loss and all operating expenses that would have been earned for the 12 months following the loss. b. The amount of insurance must be equal to the coinsurance percentage times the total of net pre-tax profit or loss and all operating expenses that would have been earned for the 12 months following inception or the last anniversary date of the policy. c. The amount of insurance must be equal to the coinsurance percentage times the total of net after-tax profit or loss and all operating expenses that would have been earned for the 12 months following inception or the last anniversary date of the policy. d. The amount of insurance must be equal to the coinsurance percentage times the total of net pre-tax profit or loss and all operating expenses that would have been earned for the 12 months following the loss.

A

What is covered under the term "Personal Property of others"? Choose one answer. a. All of the answers are correct b. Required to be shown as covered in the declarations page c. While in the building or within 100 feet of the premises if it in the open or in a vehicle d. Property owned by others but in the insured's care, custody or control

D

What is covered under the term "Your Personal Property"? Choose one answer. a. Personal property is covered while in the building or within 100 feet of the premises if it in the open or in a vehicle b. Tenant's improvements and betterments c. The value of labor, materials or services on personal property of others d. All of the answers are correct

C

What is meant by the term "misrepresentation and false advertising of insurance policies"? Choose one answer. a. Knowingly making or permitting any unfair discrimination of the rates charged for any life insurance or annuity contract or knowingly making or permitting any unfair discrimination between individuals of the same actuarial class in the amount of premium. b. Permitting or offering to make any rebate unless plainly expressed in the insurance contract. c. Knowingly making, issuing, circulating any estimate, illustration, circular, statement, sales representation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy etc. d. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person.

D

What is included in "misrepresentation of insurance applications?" Choose one answer. a. Attempting to settle claims on the basis of an application or material document which was altered without notice to or knowledge or consent of the insured or a material misrepresentation for the purpose of settlement of a claim on less favorable terms. b. Knowingly making any misleading representations of any insurance policy for the purpose of inducing a person to lapse, forfeit, surrender etc. any insurance policy or to take out a policy of insurance with another insurer. c. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person. d. Knowingly making a false or fraudulent written or oral statement or representation on or relative to any application or negotiation for insurance policy for the purpose of obtaining a fee, commission, or any other benefit.

A

What is included in the additional coverage for increased cost of construction? Choose one answer. a. All of the answers are correct b. Paid only if the ordinance or law was in effect at the time the loss occurs c. Paid only if the replacement cost option is selected d. Paid if there is an increase due to the application of a building ordinance law that affects the repairs

A

What is included in the extension of coverage for automatic coverage? Choose one answer. a. 30 days automatic coverage for new buildings under construction at the insured's premises or at newly acquired premises b. 20 days automatic coverage for new buildings under construction at the insured premises c. Limited to $50,000 for personal property d. Limited to $100,000 per building

B

What is included in the extension of coverage for outdoor property? Choose one answer. a. All of the answers are correct b. Coverage for any one tree, shrub or plant is not more than $250 c. Windstorm coverage can be provided on outdoor property d. Fences, radio/TV antennas, detached signs and trees, shrubs and plants are covered up to $250.

C

What is included in the extension of coverage for property off-premises? Choose one answer. a. Business personal property while temporarily at another owned location b. The limit of coverage is up to $100,000 c. The location cannot be owned, leased or operated by the insured d. Property in the custody of salespersons can be included

C

What is meant by "Controlled" coverages? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. One wherein a standard provisions form is promulgated by a bureau and filed for uniform use. d. One wherein the individual company may use its own form and vary it for the individual risk.

B

What is meant by the term "Exchange of Business"? Choose one answer. a. All of the answers are correct b. An agent may place business with an insurer for which he or she is not appointed as an agent as long as he or she is appointed for such business by another insurer. c. An originating general agent placing business with the company with which he or she is not appointed. d. An agent may divide or share in commissions with his or her employed solicitors and with other agents appointed and licensed to write the same kind or kinds of insurance.

C

What is meant by the term "alien insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One who formed their company within the state of Florida. c. One who formed outside of the United States or an insurer who is not domestic or foreign. d. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions.

A

What is meant by the term "authorized insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions. c. One who formed their company within the state of Florida. d. One form outside of the United States or an insurer who is not domestic or foreign.

C

What is meant by the term "domestic insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One form outside of the United States or an insurer who is not domestic or foreign. c. One who formed their company within the state of Florida. d. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions.

C

What is meant by the term "foreign insurer"? Choose one answer. a. One form outside of the United States or an insurer who is not domestic or foreign. b. One who formed their company within the state of Florida. c. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions. d. Any insurer who has received a certificate of authority from the state of Florida.

C

What is meant by the term "unauthorized insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions. c. Any insurer who is not authorized by the state of Florida. d. One form outside of the United States or an insurer who is not domestic or foreign.

C

What is meant by the term "unfair discrimination"? Choose one answer. a. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person. b. Permitting or offering to make any rebate unless plainly expressed in the insurance contract. c. Knowingly making or permitting any unfair discrimination of the rates charged for any life insurance or annuity contract or knowingly making or permitting any unfair discrimination between individuals of the same actuarial class in the amount of premium. d. Knowingly making, issuing, circulating any estimate, illustration, circular, statement, sales representation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy etc.

C

What is the FAJUA? Choose one answer. a. A market source for companies who are unable to purchase health insurance through normal channels. b. A market source for companies who are unable to purchase worker's compensation insurance through normal channels. c. A market source for persons who are unable to purchase auto insurance through normal channels. d. A market source for persons who are unable to purchase homeowner's insurance through normal channels.

C

What is the Florida law on cancellation of a personal automobile policy? Choose one answer. a. When cancellation is permitted, the insurer is required to give 45 days written notice to the insured. Ten days notice is permitted for nonpayment of premium. b. After the first 60 days, an insurer may only cancel for nonpayment of the premium, material misrepresentation or fraud, or suspension or revocation of the driver's license or registration of an operator. c. All of the answers are correct d. During the first 60 days of a new policy, an insurer may cancel the policy for any reason other than discrimination.

B

What is the cancellation clause in Florida for the general liability policy? Choose one answer. a. Cancellation during the first 90 days the policy is in force requires 30 days notice, except for material misrepresentation, misstatement of failure to comply with underwriting standards b. After 90 days, 45 days written notice of cancellation or nonrenewal is required c. Any of the above may apply d. The insurer must give 30 days notice; 10 days for nonpayment of premium

A

What is the correct policy territory for a commercial property contract? Choose one answer. a. US, Puerto Rico & Canada b. US & Canada c. US, Mexico, Puerto Rico & Canada d. US only

C

What is the coverage of the "basic extended reporting period" in a claims-made policy? Choose one answer. a. Claims received within 30 days after policy expiration or within 5 years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration are covered by the claims-made policy b. Claims received within 60 days after policy expiration or within 5 years after policy expiration, if the occurrence was reported not later than 30 days after policy expiration are covered by the claims-made policy c. Claims received within 60 days after policy expiration or within 5 years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration are covered by the claims-made policy d. Claims received within 60 days after policy expiration or within 2 years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration are covered by the claims-made policy

C

What is the coverage of the "supplemental extended reporting period "in a claims-made policy? Choose one answer. a. The effect of this option is to extend the basic period to unlimited duration b. The aggregate limits of the policy are reinstated for the supplemental reporting period c. All of the answers are correct d. Unlike the basic extended reporting period, the supplemental extended reporting period, requires an endorsement and additional premium payment

A

What is the coverage territory of the CGL policy? Choose one answer. a. Both of the answers are correct b. The entire world if the product was made or sold by the insured in the defined territory and if the suit or claim is filed in the defined territory c. The U.S. and its territories or possessions, Puerto Rico and Canada including international waters and airspace between these places d. None of the answers are correct

B

What is the covered "Territory" of the PAP? Choose one answer. a. The U.S., its territories or possessions, Mexico or Canada b. The U.S., its territories or possessions, Puerto Rico or Canada c. The U.S., its territories or possessions, Puerto Rico or Mexico d. Only the U.S., its territories or possessions

A

What is the deductible for each accident resulting from property damage to an auto as a result of work performed by or on behalf of the insured? Choose one answer. a. $100 b. $500 c. $1,000 d. The insured may choose a deducible

B

What role does state regulation play in a legitimate ERISA plan? Choose one answer. a. The state regulates any ERISA plan in the same way it regulates any authorized insurer. b. State insurance regulation does still apply to an insurer that may be financially responsible for the payment of claims and any forms utilized in an insured ERISA plan. c. There is no regulation over ERISA plans. d. All of the answers are correct

D

What is the difference between surety ship vs. insurance? Choose one answer. a. A surety bond, or surety ship, is one wherein the fulfilling of an obligation by one party to another is guaranteed by a third party, a three-party contract, rather than two parties (insurer and insured). b. Insurance policies are cancelable and nonrenewable; a surety bond is non-cancelable c. Insurance pays to or on behalf of insured; in surety ship the one making the guarantee is called upon to pay because of the default by the party who was performing the obligation. d. All of the answers are correct

C

What is the difference between the "Occurrence" and the "Claims-Made" versions of the BI and PD coverage in a CGL Policy? Choose one answer. a. Claims-made applies to claims which occur on or after the "retroactive date" and if the claim is received or recorded during the policy period. b. It deals with how the policy will apply to occurrences and claims-made policies c. All of the answers are correct d. Occurrence applies to claims, which occur during the policy period, regardless of when a claim is made

A

What is the difference between the two Business Income Coverage forms? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. Business Income (and extra expense) pays extra expenses incurred in a reduction to business income loss. d. Business Income (without extra expense) covers extra expenses only to the extent they reduce the loss.

B

What is the difference between the two property forms in the business owner`s policy? Choose one answer. a. All of the answers are correct b. There is only one form. Property coverage is written on an "open perils" ("all risk") form like the commercial property causes loss-special form but can be endorsed to be on a named perils basis like the causes of loss - basic form c. The perils insured against for property. The Standard form is an "all-risk" form; The Special form is "named perils" like the Commercial Property Causes Loss-Basic form. d. The perils insured against for property. The Standard form is a named perils form; The Special form is "all-risk" like the Commercial Property Causes Loss-Special form.

D

What is the limitation on advertising gifts? Choose one answer. a. Advertising gifts are permitted so long as the value is not more than $10. b. Advertising gifts are permitted so long as the value is not more than $100. c. Advertising gifts are permitted so long as the value is not more than $250. d. Advertising gifts are permitted so long as the value is not more than $25.

B

What is the market source for persons who are unable to purchase automobile insurance through licensed insurers? Choose one answer. a. All of the answers are correct b. Florida Automobile Joint Underwriting Association (FAJUA) c. Citizens Property Insurance Corporation (Citizens) d. Florida Worker's Compensation Joint Underwriting Association (FWCJUA)

D

What is the market source for persons who are unable to purchase residential insurance through licensed insurers? Choose one answer. a. All of the answers are correct b. Florida Automobile Joint Underwriting Association (FAJUA) c. Florida Worker's Compensation Joint Underwriting Association (FWCJUA) d. Citizens Property Insurance Corporation (Citizens)

B

What is the market source for persons who are unable to purchase windstorm insurance through licensed insurers? Choose one answer. a. All of the answers are correct b. Citizens Property Insurance Corporation (Citizens) c. Florida Automobile Joint Underwriting Association (FAJUA) d. Florida Worker's Compensation Joint Underwriting Association (FWCJUA)

D

What is the maximum medical benefit under worker's compensation? Choose one answer. a. $5,000 b. 80% of medical costs c. 85 - 95% of loss of wages d. Unlimited --...

D

What is the maximum paid under the death benefit alone for PIP? Choose one answer. a. $1,000 b. $2,000 c. $10,000 d. $5,000

C

What is the medical payments coverage of a Garage policy? Choose one answer. a. Automobile Medical Payments applied to autos covered for liability b. Premises medical payments apply for medical reimbursement to customers and others who are injured at the garage premises but not involving autos c. Both of these are correct d. None of these are correct

D

What is the range of benefits under the worker's compensation law? Choose one answer. a. From a minimum of $10 per week (full weekly benefits if the employee's weekly wages are less than $10) to a maximum of the "statewide average weekly wage" That figure is revised annually based on state records for unemployment compensation. b. From a minimum of $50 per week (full weekly benefits if the employee's weekly wages are less than $50) to a maximum of the "statewide average weekly wage" That figure is revised annually based on state records for unemployment compensation. c. From a minimum of $40 per week (full weekly benefits if the employee's weekly wages are less than $40) to a maximum of the "statewide average weekly wage" That figure is revised annually based on state records for unemployment compensation. d. From a minimum of $20 per week (full weekly benefits if the employee's weekly wages are less than $20) to a maximum of the "statewide average weekly wage" That figure is revised annually based on state records for unemployment compensation. --...

B

What is the requirement for changes in commercial property? Choose one answer. a. Any named insured can agree to a change b. The policy may be changed only by endorsement c. No agreement from the insurer is required d. All of the answers are correct

D

What is the standard deductible for coverage with Citizens? Choose one answer. a. 1% hurricane; $1,000 all other perils b. 2% hurricane; $500 all other perils c. 1% hurricane; $500 all other perils d. 2% hurricane; $1,000 all other perils

B

What is the standard deductible of section I-property coverage of a homeowner's insurance policy? Choose one answer. a. Any of the answers may be a standard deductible b. A section I standard deductible which applies to the insured's loss in each occurrence is $500 for all perils other than hurricane. c. A section I standard deductible which applies to the insured's loss in each occurrence is $1,000 for all perils other than hurricane. d. A section I standard deductible which applies to the insured's loss in each occurrence is $100 for all perils other than hurricane.

D

What is the suspension condition of the Boiler and Machinery form? Choose one answer. a. Allows the insurer to cancel the policy without notice to the insured b. Provides for replacement cost coverage on all covered property c. States that the deductible will be subtracted from the amount otherwise payable for the accident d. Whenever an object is found to be in or exposes to a dangerous condition, an insurer may immediately suspend the insurance against loss from an accident to that object

A

What is the transfer condition in the general liability policy? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. The insured may not transfer any rights or duties under the policy except with the written consent of the insurer d. Rights and duties are automatically transferred if the insured dies, first to one who has temporary custody of the property and then to the legal representative

C

What lines of insurance are customer representatives qualified to write? Choose one answer. a. All classes of health insurance business b. All classes of life insurance business c. Any classes of insurance that his or her appointing general lines agent or agency is currently authorized to transact d. Except for limited lines licenses, all property, marine, casualty, and surety lines except bail bonds

A

What lines of insurance are general lines agents qualified to write? Choose one answer. a. Except for limited lines licenses, all property, marine, casualty, and surety lines except bail bonds. b. Any classes of insurance that his or her appointing general lines agent or agency is currently authorized to transact. c. All classes of health insurance business. d. All classes of life insurance business.

A

What must a homeowner or dwelling owner certify in order to be eligible for coverage with Citizens? Choose one answer. a. All of the answers are correct b. The homeowner must not have received an offer that is less than 15% higher than Citizens c. The owner is unable to obtain a mortgage unless coverage is written by the Citizens d. The property to be insured is not vacant or in a state of disrepair

A

What notice is required in the cancellation clause? Choose one answer. a. Any of the above may be found in the cancellation clause b. Most individual health policies prohibit mid-term cancellation c. Florida law requires not less than 20 days notice d. Some forms reserve to the insurer the right to cancel the policy by giving specific notice, during the policy term.

A

What part, if any, of the following statement is incorrect? Auto physical damage insurance, in general, usually covers a vehicle for its actual cash value, is usually issued as two or more separate coverages, is subject to a deductible, and applies only when the other party to an accident is at fault? Choose one answer. a. Coverage applies "without" regard to fault. b. The Business Auto policy insures the automobile exposure of businesses verses individuals and families. c. One is used to insure the automobile exposures of individuals and families; the other insures the automobile exposures of businesses d. UM (stacked or unstacked), equal to liability limits, or by election (stacked or unstacked) at lower limits, or rejection of the coverage if permitted by State Law.

C

What property is generally excluded under the commercial property policy? Choose one answer. a. Accounts, bills, currency and deeds b. Property below the basement or ground c. All of the answers are correct d. Fences, outdoor radio or TV antennas (including satellite dishes)

A

What types of properties are not insurable properties under Citizens? Choose one answer. a. All of the answers are correct b. Property in disrepair c. Properties over fifty (50) years old unless the wiring, heating and roof have been updated d. Vacant or unoccupied properties

D

What types of vehicles may be covered under the PAP? Choose one answer. a. Private passenger automobiles not used to deliver or transport goods or materials, except for those incidentals to the insured's business of furniture or equipment installation, maintenance or repair, or for farming or ranching b. Private passenger automobiles, pickups or vans with a gross vehicle weight of less than 10,000 pounds c. Private passenger vehicles owned by individuals, related persons, or unrelated persons who reside in the same household d. All of the answers are correct

C

When are death benefits payable under the worker's compensation law? Choose at least one answer. a. Compensation for death is payable if the death results within five years of an accident. b. Compensation for death is payable if the death results within five years of an accident or, if it follows continuous disability, within five years after the accident. c. Compensation for death is payable if the death results within one year of an accident or, if it follows continuous disability, within five years after the accident. d. Compensation for death is payable if the death results within two years of an accident or, if it follows continuous disability, within five years after the accident. --...

A

When does collision and other than collision coverage for a 'newly acquired auto' begin? Choose one answer. a. Either of these coverages will apply to a new auto if the insurer is notified within 14 days if the existing autos on the policy have coverage b. Either of these coverages will apply to a new auto if the insurer is notified within 4 days if the existing autos on the policy do not have coverage c. All of the answers are correct d. If either coverage is not provided for an existing auto and the insurer is notified of the new auto within the 4 days, automatic coverage will apply within the first four days

C

When does coverage for a "newly acquired auto" begin? Choose one answer. a. Coverage for Damage to your Auto begins for an additional new auto when you purchase the new auto as long as you notify the insured within 14 days; the new additional auto has the same coverage as an auto already insured b. Coverage for a 'newly acquired auto' either begins when the insurer is notified or when the PAP gives automatic coverage c. All of the answers are correct d. If you are replacing an existing insured auto with a new auto, coverage is automatically provided on the new auto

B

When is a "Union Plan" exempt from state regulation? Choose one answer. a. "Union Plans" are all exempt from state regulation. b. A "Union Plan", may receive an express finding (in writing) from the U.S. Department of Labor that the collective bargaining agreements between that union and the employers are bona fide and be exempt from state regulation. c. Only legitimate "Union Plans" are all exempt from state regulation. d. "Union Plans" are all subject to state regulation.

When does the duty to defend end?

When limits of coverage have been exhausted in payment of settlements.

A

When may an agent share commission? Choose one answer. a. An agent may divide or share in commissions with his or her employed solicitors and with other agents appointed and licensed to write the same kind or kinds of insurance. b. All of the answers are correct c. An originating general agent placing business with the company with which he or she is not appointed. d. An agent may place business with an insurer for which he or she is not appointed as an agent as long as he or she is appointed for such business by another insurer.

Specific Insurance

When separate limits for each building are given.

What is the Individual Named Insured endorsement?

When the BAP named insured is an individual and the 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.

Valued Policy

When the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value. (ACV is hard to establish)

In forming an insurance contract, when does acceptance usually occur?

When the insurer's underwriter approves coverage

When would uninsured motorist coverage apply?

When the other party is legally liable, but has no insurance

B

Which bond guarantees that all labor and materials for the project will be paid by the contractor upon the completion of the work, which also guarantees there will be no mechanic's liens or similar problems after completion? Choose one answer. a. Maintenance Bond b. Payment Bond c. Bid Bond d. Performance Bond

A

Which bond is required to accompany a bid for a contract which will require that the successful bidder furnish a further bond if awarded the job, and the bidder will enter into the contract and will satisfy further bonding requirements for the job? Choose one answer. a. Bid Bond b. Payment Bond c. Maintenance Bond d. Performance Bond

C

Which coverage continuation provision reserve the insurer's right to cancel the policy by giving specific notice, during the policy term? Choose one answer. a. All of the answers are correct b. The non-cancelable provision c. The cancellation clause provision disablement, or death by accident or accidental means or the expense thereof. d. The optionally renewable provision

A

Which coverage continuation provision states that the insurer can refuse to renew the policy only under certain conditions and that the policy must state the conditions under which the policy will not be renewed? Choose one answer. a. Conditionally Renewable b. Non-cancelable c. Optionally Renewable d. Guaranteed Renewable

C

Which coverage continuation provision states that the insurer may not cancel during the policy term, but reserves the right to not renew the policy upon its expiration? Choose one answer. a. Conditionally Renewable b. Guaranteed Renewable c. Optionally Renewable d. Non-cancelable

D

Which dwelling fire underwriting guideline is true? Choose one answer. a. DP2 dwelling's minimum amount acceptable is $14,000. b. All of the answers are correct c. DP3 dwelling's minimum amount acceptable is $25,000. d. The insured may select any limit for the dwelling coverages

D

Which forms are available for coverage for a loss caused by an accident to an insured object causing interruption of the insured's operations? Choose one answer. a. Named objects or blanket coverage on all objects b. Replacement cost or actual cash value c. Standard deductible or percentage deductible d. Valued or actual loss sustained

D

Which insured are not protected (excluded) from the PAP policy? Choose one answer. a. Those who have a reasonable belief or permission to use the vehicle b. If a domestic employee and in the course of employment and not covered by worker's compensation c. Those who use the vehicle as a public conveyance such as a share-the-expense car pool d. Those who intentionally cause bodily harm and or physical damage to other persons or property

A

Which of the 'additional coverages' internal limit is incorrect under the homeowner's program? Choose one answer. a. $2,000 for landlord furnishings b. $1,000 for loss assessments c. Trees, shrubs and plants for 5% of Coverage 'a' subject to a $500 per item maximum d. 10% of Coverage A Dwelling for Ordinance and Law

D

Which of the following apply to the aggregate limits in a CGL policy? Choose one answer. a. All of the answers are correct b. A basic limit of $500,000 applies to all claims during each annual policy period for all policy coverage except for products and completed operations c. A basic limit of $500,000 applies to all claims during each annual policy period for products and completed operations coverages d. If an insured purchases "supplemental extended reporting period" coverage under a claims-made policy, the original policy aggregate limits are reinstated for the extended period.

C

Which of the following apply to the other insurance condition of the CGL policy? Choose one answer. a. In the claims-made CGL form, the policy is excess over any other policy that is not claims-made b. Both CGL forms are excess over property insured that applies to the insured's completed work or to premises rented to the insured c. All of the answers are correct d. Except as otherwise provided, the policy is primary insurance.

D

Which of the following apply to the separation of insured condition of the CGL policy? Choose one answer. a. All of the answers are correct b. Coverage applies separately if there are separate policies for each insured c. Coverage only applies to the first named insured on the policy d. Coverage applies separately to each insured as if that interest were the only insured

C

Which of the following are a "covered cause of loss" in a Boiler and Machinery Insurance Policy? Choose one answer. a. Burn out b. Explosions, overheating, burning, cracking, bulging, rupture, collapse c. All of the answers are correct d. Short circuit in machinery

A

Which of the following are considered employees? Choose one answer. a. Aliens and minors b. Commissioned real estate agents c. Volunteers d. Independent contractors --...

B

Which of the following are covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability Policy? Choose one answer. a. Contingent Liability caused by a subcontractor of the insured b. All of the answers are correct c. Liability assumed under a lease contract d. Liability due to one's products injuring others

A. All of these answers are correct

Which of the following are covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability policy? A. All of these answers are correct B. Contingent Liability caused by a subcontractor of the insured C. Liability due to one's products injuring others D. Liability assumed under a lease contract

B

Which of the following are covered in the Garage Insurance Policy? Choose one answer. a. Autos leased or rented to others. b. Autos rented to a customer while the customer's auto is left for service or repair. c. Any auto while used or being prepared for use in any professional or organized racing or demolition contest or stunt activity. d. None of the above are covered

D

Which of the following are exclusions in the Garage Insurance Policy? Choose one answer. a. Property damage to the insured's own products or to work performed by or on behalf of the insured if the damage is caused by defects existing when the product was sold or results from the work itself. b. Loss of use of property not physically damaged caused by the insured's delay or failure to perform an agreement of contract. c. Claims for product or work recall. d. All of these are correct are exclusions.

D

Which of the following are exclusions under Section II of the Business Auto Policy? Choose one answer. a. Liability assumed under any contract or agreement b. Employee injuries or employer's liability under a worker's compensation law c. Damage to property owned or transported by or in the care, custody or control of the insured d. All of these are correct

D

Which of the following are exclusions under the dealer's blanket physical damage coverage? Choose one answer. a. Expected profits b. Loss at a newly acquired, unreported location, if the loss occurs more than 45 days after acquisition of the location c. Collision damage to autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart d. All of these are correct

D

Which of the following are included in the definition of a suit as covered by the EPL? Choose one answer. a. Arbitration, alternative dispute resolutions b. A civil proceeding alleging damages c. Administrative hearings conducted by a government agency. d. All of the answers are correct

D

Which of the following are not Unfair Methods of Competition or Unfair or Deceptive Acts? Choose one answer. a. Refusal to insure solely because of race, color, creed, marital status, sex, or national origin. b. Misrepresentation or false advertising of benefits, advantages, conditions or terms of an insurance policy. c. Twisting or Churning. d. Giving to an insured, for advertising purposes, an article of merchandise having a value of $25. or less.

C

Which of the following are not covered under the Inside The Premises-Robbery Or Safe Burglary Of Other Property coverage? Choose one answer. a. Accounting errors b. Giving of surrendering of property in any exchange or purchase, or voluntarily parting with title to or possession of any property c. None of the above are covered d. Fire or vandalism damage to the premises

C

Which of the following are not covered under the Inside The Premises-Theft of Money and Securities coverage? Choose one answer. a. Accounting errors b. Giving of surrendering of property in any exchange or purchase, or voluntarily parting with title to or possession of any property c. None of the above are covered d. Fire damage to the premises

D

Which of the following are not covered under the Outside The Premises agreement? Choose one answer. a. Accounting errors b. Fire or vandalism damage to the premises c. Giving of surrendering of property in any exchange or purchase, or voluntarily parting with title to or possession of any property d. None of the above are covered

A

Which of the following describe the coverage of a major medical policy? Choose one answer. a. All of the answers are correct b. Others intend to provide both basic and catastrophic illness coverage c. Some forms are designed to supplement basic hospital/surgical policies d. Coverage is intended to afford protection against catastrophic losses

B

Which of the following are not covered under the employee theft coverage? Choose one answer. a. Loss caused by any employee after discovery by the named insured of any dishonest act committed by the employee, whether before or after employment by the insured b. None of the above are covered c. Loss caused by any employee for whom similar prior insurance has been canceled and not later reinstated. d. There is no coverage for a loss if the proof is dependent upon inventory shortage or a profit and loss computation

D. A fine for a misdemeanor

Which of the following are not grounds for compulsory refusal, suspension or revocation of the license of a general lines agent or customer representative? A. Willful over-insurance of any property or health insurance risk B. Cheating on an examination required for licensing C. Demonstration of a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license D. A fine for a misdemeanor

A

Which of the following are specifically excluded from the "accident" definition in a Boiler and Machinery Insurance Policy? Choose one answer. a. All of the answers are correct b. Breakdown of any vacuum tube, electronic computer or data processing equipment c. Depletion, deterioration, corrosion, wear and tear d. Leakage at any valve, fitting, joint or connection

A

Which of the following best describes the Basic Extended Reporting period provision? Choose one answer. a. All of the answers are correct b. The basic extended reporting period provision is automatic, cannot be canceled, and is free of charge c. The provision allows claims to be made within five years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration d. The provision allows claims to be made within sixty days after policy expiration

C

Which of the following best describes the Owner's and Contractor's Protective Liability (OCP) Form? Choose one answer. a. Coverage for products-completed operations liability b. All of the answers are correct c. Designed to cover the insured for liability arising from the operations of an independent or subcontractor d. This form provides coverage for those in the business of selling etc. alcoholic beverages

D

Which of the following best describes the supplemental extended reporting period provision? Choose one answer. a. This coverage must be requested by the insured in writing within sixty days after policy expiration b. The supplemental provides a limit equal to the expiring policies general aggregate and products-completed operations aggregate c. This option extends the basic extended reporting period provision to unlimited duration d. All of the answers are correct

B

Which of the following can collect medical payments coverage under a PAP? Choose one answer. a. The named insured while riding in a taxicab b. All of the answers are correct c. A resident child of the named insured while getting off a school bus d. A fellow employee of the named insured while occupying a 'covered auto'

D

Which of the following categories of business are specifically excluded for eligibility to the business owner`s program? Choose one answer. a. Condominium associations other than office or residential condominiums b. Bars and pubs c. Automobile repair or service shops d. All of the answers are ineligible

D

Which of the following categories of business are specifically excluded for eligibility to the business owner`s program? Choose one answer. a. Places of amusement b. Banks, building and loan associations, savings and loan associations c. Household personal property d. All of the answers are ineligible

C

Which of the following coverage parts is not eligible for a commercial package policy? Choose one answer. a. Commercial Inland Marine b. Boiler and Machinery c. Commercial Surety d. Commercial Crime

A

Which of the following criteria would allow an independent contractor to be considered a non-employee under the worker's compensation law? Choose one answer. a. All of the answers are correct b. The compensation received by the independent contractor is paid to a business rather than an individual c. The independent contractor maintains a separate business d. The independent contractors holds or has applied for a federal employer identification number --...

D

Which of the following defines sexual harassment as covered by the EPL? Choose one answer. a. None of the answers are correct b. Verbal, visual or physical conduct of a sexual nature if that conduct affects or interferes with another's employment or job performance, or creates an intimidating, hostile or offensive working environment c. Unwelcome sexual advances d. Both of the answers are correct

D

Which of the following describe the "retroactive date" in a claims-made policy? Choose one answer. a. The claims-made form applies only to a BI or PD, which occurs on or after the "retroactive date". b. All of the answers are correct c. The claim-made form also requires the claim to be received and recorded during the policy period d. Stated in the declarations and will normally be the same date of the effective date of the issuing company's first claims-made policy for the insured.

D

Which of the following describe when the "basic extended reporting period" in a claims-made policy may be used? Choose one answer. a. If the policy is cancelled or not renewed b. If the policy is renewed on an occurrence policy c. If the policy is renewed with a retroactive date later that the date stated in the declarations d. All of the answers are correct

A

Which of the following describe when the "supplemental reporting period" in a claims-made policy may be used? Choose one answer. a. All of the answers are correct b. The insured makes a request in writing within 60 days after policy expiration for the supplemental reporting coverage c. The insured pays for the supplemental reporting coverage d. After the basic extended reporting period takes effect

A

Which of the following describes Coverage C Medical Payments? Choose one answer. a. All of the answers are correct b. Payments are made for medical, dental, hospital and funeral services incurred within one year from the date of accident c. Payments are made on a voluntary basis without admitting liability d. The claimant must suffer bodily injury by accident (1) on or next to the insured's premises (2) because of the insured's operation.

B

Which of the following describes the EPL form? Choose one answer. a. The EPL policy provides employers with claims-made coverage for liability arising out of claims for injury to an employee because of an employment-related offense b. All of the answers are correct c. Unlike policies with a deductible, the EPL policy has a co-payment provision. Under this provision, the insured shares payment for claims subject to a maximum amount. d. The EPL policy has several exclusions

A

Which of the following describes the Farm Liability form? Choose one answer. a. All of the answers are correct b. The form also covers personal injury and advertising injury liability c. Provides coverage for both bodily injury and property damage arising out of farm operations or personal activities d. The form covers medical payments

A

Which of the following describes the Individual Professional coverage of the Physicians, Surgeons and Dentists (PS&D) form? Choose one answer. a. All of the answers are correct b. Applies to each person named in the declarations page as an insured as well as the insured's employees, or anyone else under the personal direction, control or supervision of the insured, including services by the insured on any professional board c. Coverage excludes any liability incurred as a member, partner, officer, director or stockholder of any professional partnership, association or corporation d. Claims are paid for legal liability resulting from any 'medical incident' defined as the furnishing a medical or dental services.

C

Which of the following describes who is covered under PIP? Choose one answer. a. If the injured person does not own a vehicle or is not a member of a household who owns a vehicle, and if the accident occurs in Florida, the vehicle owner's PIP benefits will pay for the injured person. b. If the accident occurs outside of Florida, the insured is covered for PIP only while in the insured vehicle or a vehicle owned by a resident relative, both of whom are required to have PIP coverage. c. All of the answers are correct d. PIP benefits are payable to the insured named and members of the insured's household if the accident occurs in Florida and if the insured or members of the household are occupying any defined motor vehicle.

B

Which of the following does a PAP with no special endorsements or notification made to the insurer exclude? Choose one answer. a. Bus fare incurred for transportation expense in the amount of $5 per day for 50 days due to the total theft of a covered auto b. None are excluded c. Hail damage to a custom paint job d. A stolen car stereo valued at $500 which was bolted under the dash of a covered auto

A

Which of the following does not define mobile equipment? Choose one answer. a. Off-road licensed vehicles b. Vehicle traveling on crawler treads c. Those used solely on the insured's or adjacent premises d. Those that simply provide mobility to permanently attached specialized equipment

A

Which of the following is a general exclusion under the Commercial Crime? Choose one answer. a. Acts committed by the named insured or its partners and members, or by its employees, directors, trustees, or representatives (except under employee theft coverage) b. Both of the answers are correct c. Loss from voluntary parting of property through trick and device d. None of the answers are correct

A

Which of the following is a true statement concerning corporate officers under the worker's compensation law? Choose one answer. a. All of the answers are correct b. An officer of the corporation is an employee if the officer performs services for the corporation for pay c. Corporations in the construction industry can exempt no more that three officers who must own a minimum of 10% of the corporation d. The law allows the option to exempt officers from coverage by filing the proper notice --...

B

Which type of risks would qualify for the dwelling program? Choose one answer. a. An owner occupied condominium b. All of the answers are correct c. A condominium rented to others d. A single family dwelling

C

Which of the following is a true statement concerning sole proprietors under the worker's compensation law? Choose one answer. a. All of the answers are correct b. A sole proprietor may elect to be exempt from coverage under the law c. All partners are considered to be employers and may exempt themselves under the law d. Sole proprietors and partners in the construction industry may not exempt themselves from coverage --...

D

Which of the following is a true statement? Choose one answer. a. A contractor has no worker's compensation liability for independent contractors b. A contractor is liable for injuries to a subcontractor's employees if the subcontractor does not carry worker's compensation coverage c. None of the answers are correct d. Both of the answers are correct --...

A

Which of the following is excluded in the basic cause of loss form? Choose one answer. a. Damage caused by vehicles owned or operated by the insured b. Explosion c. Smoke, sudden and accidental d. Looting and acts of striking employees while occupying the insured's premises

C

Which of the following is excluded on all cause of loss forms? Choose one answer. a. Sinkhole collapse b. Destruction to prevent spread of fire by governmental authority c. Loss from utility service failure, which occurs anywhere outside the building d. All of the answers are correct

C

Which of the following is excluded under Part D of the PAP? Choose one answer. a. An automobile confiscated or destroyed by the government or civil authority b. A camper body or trailer not listed on the policy or acquired during the policy period if not reported to the insurer within 14 days of purchase c. All of the answers are correct d. Tape, records, discs, or other media used in any accessory

D

Which of the following is included in the definition of injury in the EPL form? Choose one answer. a. Work related sexual harassment; other work-related verbal, physical, mental or emotional abuse because of race, color, national origin, gender, marital status, age, sexual orientation or preference, physical or mental condition etc. b. Refusal to employ, termination, demotion, or failure to promote, negative evaluation, reassignment, discipline an employee c. Defamation or humiliation based on discrimination; coercing the person to commit an unlawful act or omission within the scope of their employment d. All of the answers are correct

A

Which of the following is not a named insured under a homeowner's policy? Choose one answer. a. Corporation b. Occupant c. Trust d. Individual with life tenancy by contract

D

Which of the following is not an available endorsement under the homeowner' policy? Choose one answer. a. Increased loss assessment option b. Inflation guard c. Losses arising from building ordinances or laws d. Jewelry $6,000 aggregate/per item option

C

Which of the following is not an eligibility guideline imposed by the business owner`s policy for "limited cooking and fast-food restaurants? Choose one answer. a. Food preparation does not emit enough smoke or grease vapors to require installation of exhaust systems or dry-chemical extinguishing systems b. Cooking normally done with microwaves, toasters, pizza ovens, infrared snack warmers and similar appliances c. All of the answers are eligible d. Fast-food are also allowed to utilize grilling, enclosed broiling, deep-fat fryers, roasting and barbecuing

B

Which of the following is not an eligibility guideline imposed by the business owner`s policy for offices and office condominium associations? Choose one answer. a. Offices must be occupied principally for office purposes with eligible occupancies b. All of the answers are eligible c. Buildings not over six stories high and containing not over 100,000 square feet of area d. Office tenants who occupy not over 25,000 square feet in a single building

A

Which of the following is not an eligibility guideline imposed by the business owner`s policy for trade contractors? Choose one answer. a. All of the answers are correct are eligible b. The trade contractor may not have more than $300,000 of annual payroll c. Trade contractors whose work is primarily a single specialty (plumbing) if the building or tenant does not exceed 25,000 square feet and gross sales do not exceed $3,000,000 d. The trade contractor may not work on building over 3 stories

C

Which of the following is not grounds for discretionary refusal, suspension or revocation of the license of a general lines agent or customer representative? Choose one answer. a. Been found guilty of a felony b. Cheating on an examination required for licensing c. Demonstration of a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license d. Willful over insurance of any property of health insurance risk

A

Which of the following is one of the six categories of risks in the Nationwide Definition of Inland Marine Insurance? Choose one answer. a. All of the answers are correct b. Instrumentalities of Transportation or Communication c. Imports, Exports and Domestic Shipments d. Personal Property Floater Risks and Commercial Property Floater Risks

D. Farm Property Coverage covers household personal property

Which of the following is true regarding Farm Property Coverage? A. Farm Property Coverage does not cover animals B. Farm Property Coverage covers growing crops C. Farm Property Coverage does not cover barns and silos D. Farm Property Coverage covers household personal property

D

Which of the following may be included as physical damage coverage? Choose one answer. a. Comprehensive - covers any loss not excluded other than collision or overturn b. Specified Causes of Loss - covers specified perils of fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism or the sinking, burning, collision or derailment of a conveying transport c. Collision - covers collision with another object or overturn d. All of these are correct

A

Which of the following perils is excluded in all cause of loss forms? Choose one answer. a. All of the answers are correct are excluded b. Power failure from an off premises loss c. Flood d. Artificially generated electrical current starts a fire

C

Which of the following perils is excluded in all cause of loss forms? Choose one answer. a. Flood b. Artificially generated electrical current starts a fire c. All of the answers are excluded d. Power failure from an off premises loss

A

Which of the following perils is not covered under the Basic Cause of Loss form? Choose one answer. a. Falling objects except falling objects from an aircraft b. Sinkhole collapse c. Fire d. Vandalism

D

Which of the following policies would cover medical costs not payable under the Federal Medicare Program? Choose one answer. a. Any of the above would provide coverage b. Disability income insurance c. Major medical insurance d. Medicare supplement insurance

B

Which of the following policies would provide periodic income payments when the insured is unable to work because of sickness or injury? Choose one answer. a. Any of the above would provide coverage b. Disability income insurance c. Medical supplement insurance d. Major medical insurance

A

Which of the following property or injury are not covered in the CGL policy? Choose one answer. a. All of the answers are correct b. Claims based on defect, deficiency, inadequacy or dangerous condition in the insured's work or products c. Injury or damage, which is expected or intended by the insured d. Liability or expense related to recall of the insured's product or work

C

Which of the following statements about homeowner's coverage A is false? Choose one answer. a. Coverage A may not be extended to cover a detached garage b. Coverage A covers the building & any attached structures including materials or supplies on premises c. Coverage A may be endorsed to Form 4 Tenant's coverage for betterments and alterations coverage only d. Coverage A is included for a limited base amount in the HO6 form

D

Which of the following statements is false? Choose one answer. a. All of the answers are correct b. DP1 policy covers both Dwelling & Contents at Actual Cash Value c. DP3 policy covers the building on an 'all risk' basis d. DP2 policy covers both building and contents at replacement cost

A

Which of the following statements is true about the loss settlement clause of the homeowner's policy? Choose one answer. a. All of the answers are correct b. Section I property is usually subject to a ACV settlement c. The insured must notify the insurer of the intent to replace the property to receive replacement cost coverage d. If the dwelling is insured for 80% then replacement cost may apply

D

Which of the following would be covered by the premises and operation exposure of the CGL? Choose one answer. a. A claimant falls on a banana peel left on the floor at the insured's premises b. None of the answers are correct c. A falling brick at a construction site of the insured hits a claimant d. Both of the answers are correct

D

Which of the following would be covered by the products and completed operations exposure of the CGL? Choose one answer. a. A claimant spills hot coffee on himself or herself after driving through the drive through at the fast food restaurant b. None of the answers are correct c. A weed eater purchased by the claimant and being used to trim weeds at their home damages the claimant's pants d. Both of the answers are correct

C

Which of the following would describe a "bailment"? Choose one answer. a. A dry cleaner b. A warehouse storage facility c. All of the answers are correct d. A fur storage facility

B

Which of the following would exclude PIP benefits? Choose one answer. a. Persons who intentionally inflict self-injury or who are injured during the commission of a felony b. All of the answers are correct c. Persons operating the vehicle without the owner's consent (stolen vehicle) are not covered d. If the insured owns two or more vehicles and does not carry PIP coverage on all vehicles, the named insured and members of the household would not have PIP coverage while riding in a vehicle not insured.

B

Which of the following would not be a named insured? Choose one answer. a. The named insured for any covered auto b. Permissive users of covered autos including the owner or anyone else from whom the covered car is hired or borrowed c. An employee, if the covered auto is not owned by that employee or a member of his or her household d. Anyone liable for the conduct of an insured described above

A

Which of the following would not be considered an "employment" under the worker's compensation law? Choose one answer. a. Domestic servants in private homes b. One or more employees in the construction industry c. Governmental employments regardless of the number of employees d. Private employments with four or more employees except in the construction industry --...

A. They are known as a program that offers insureds the broadest choices of doctors and specialty care

Which one of the following features is not true about a Health Maintenance Organization (HMO)? A. They are known as a program that offers insureds the broadest choices of doctors and specialty care B. They have few exclusions and a small deductible and co-payment C. Their goal is to practice preventive medical care D. They have separate physical facilities to treat patients

B

Which one of the following features is not true about a Health Maintenance Organization (HMO)? Choose one answer. a. Their goal is to practice preventive medical care b. They are known as a program that offers insured the broadest choices of doctors and specialty care c. They have few exclusions and a small deductible and co-payment d. They have separate physical facilities to treat patients

C

Which one of the following is not an eligibility guideline imposed by the business owner`s policy for an apartment house or residential condominium association building? Choose one answer. a. Contractors, which do not occupy more than 7,500 square feet or more that 15% of the total floor area b. Permitted incidental occupancies include: eligible offices; eligible wholesalers, mercantile, processing and service occupancies not exceeding 25,000 square feet c. Permitted incidental occupancies include: eligible offices; eligible wholesalers, mercantile, processing and service occupancies not exceeding 20,000 square feet d. All of the answers are eligible

B

Which one of the following is not an eligibility guideline imposed by the business owner`s policy for convenience food stores? Choose one answer. a. No car wash operations b. Limited propane or kerosene tank filling operations c. No service or repair operations on automobiles d. Gasoline sales must be less than 75% of total annual gross sales

C

Which one of the following is not an eligibility guideline imposed by the business owner`s policy for mercantile, wholesaler, service or processing risk? Choose one answer. a. Buildings or individual tenants with not over 25,000 square feet of area and occupied by eligible mercantile, wholesaler, service and/or processing risks b. Tenants may not exceed $3,000,000 in gross sales at any insured location c. Buildings or individual tenants with not over 50,000 square feet of area d. Tenant may not have more than 25% of annual gross sales derived from off-premises operations

C

Which one of the following is not an eligibility guideline imposed by the business owner`s policy for self-storage facilities? Choose one answer. a. The facility may not exceed two stories in height b. All of the answers are eligible c. Facilities that permit cold storage or storage of industrial materials, chemicals, pollutants and waste. d. Facilities that do not permit cold storage or storage of industrial materials, chemicals, pollutants and waste.

B

Which one of the following limitations is covered under the homeowner's theft peril? Choose one answer. a. Theft committed by the son of an insured in the household b. Student's contents away at school subject to a 45 day prior occupancy condition c. Watercraft away from the residence premises d. Theft in a room of the residence rented to another

D

Which one of the special coverage internal limits is incorrect? Choose one answer. a. $2,500 for firearms by theft b. $2,500 for silverware by theft c. $200 for money d. $1,000 for jewelry by theft

A

Which one of these watercraft exposures is not covered by Section II personal liability? Choose one answer. a. 26 HP outboard motorboat owned by the insured at inception of the policy b. 25 foot sailboat with a 40 HP motor rented by the insured c. 51 HP speedboat 24 feet in length in storage at the residence premises d. 25 HP outboard motorboat owned by the insured at inception of the policy

A

Which optional coverages are available with dwelling fire policies? Choose one answer. a. All of the answers are correct b. Condominium loss assessments c. Business personal property d. Building ordinance and law

D

Which optional policy provision states that if the insured becomes totally disables, premiums are waived but the coverage remains in force? Choose one answer. a. Double indemnity b. Waiting or elimination period c. Grace period d. Waiver of premium

ALLIEN

our of the country

A

Which perils are frequently included in Ocean Marine Insurance? Choose one answer. a. All of the answers are correct b. Fire (either direct or consequential losses) c. War (to include war, an endorsement referred to as "free capture and seizure clause) d. Perils of the Sea (interpreted to include wind, waves, collision, stranding, sinking and other such accidents)

C

Which policy provision doubles the death benefit for an accident under certain circumstances? Choose one answer. a. Grace period b. Waiting or elimination period c. Double indemnity d. Waiver of premium

C

Which policy provision states a time between issuance and acceptance before sickness benefits begin? Choose one answer. a. Double indemnity b. Waiver of premium c. Waiting or elimination period d. Grace period

C

Which shipping term describes a buyer assuming responsibility for the cargo after the goods reach the designated point? Choose one answer. a. C.F. - Cost and Freight b. F.A.S. - Free Along side c. F.O.B - Free on Board d. C.I.F - Cost, Insurance and Freight

A

Which shipping term describes a buyer purchasing his own insurance? Choose one answer. a. C.F. - Cost and Freight b. F.A.S. - Free Along side c. C.I.F - Cost, Insurance and Freight d. F.O.B - Free on Board

D

Which shipping term describes a seller assuming cost and risk until the goods are delivered along side an overseas vessel and within reach of its loading tackle? Choose one answer. a. C.F. - Cost and Freight b. C.I.F - Cost, Insurance and Freight c. F.O.B - Free on Board d. F.A.S. - Free Along side

B

Which shipping term describes a seller assuming responsibility for securing all necessary insurance? Choose one answer. a. C.F. - Cost and Freight b. C.I.F - Cost, Insurance and Freight c. F.A.S. - Free Along side d. F.O.B - Free on Board

D

Which statement about DP1 Basic Form is not true? Choose one answer. a. Coverage C provides up to 10% for tenants betterments and alterations b. Up to 10% of Coverage A is applied to "other structures" c. Cost of removal of debris after a covered loss is covered d. All of the answers are true

C

Which statement best describes one's position under the Florida No-Fault Law, when total economic loss exceeds Personal Injury Protection benefits, without exceeding a threshold? Choose one answer. a. Suit for intangible damages permitted b. No recovery after Personal Injury Protection is exhausted c. No suit for intangible damages permitted; however, suit for economic loss not paid (or payable) under Personal Injury Protection is permitted d. Suit for intangible damages after Personal Injury Protection is exhausted

A

Which statement does not fall within the flood definition? Choose one answer. a. A property in areas that are normally flooded on a continuous basis b. Temporary condition of partial or complete inundation of normally dry areas c. Flood from overflow of inland or tidal waters d. Rapid and unusual accumulation or runoff from any source

C

Which type of bond is provided to the Department as evidence of compliance with state law and guaranteeing financial responsibility to respond to obligations? Choose one answer. a. Blue Sky Bond b. Customs Bond c. Self-Insurance Bond d. Public Official Bond

D

Which type of bond may be required by a public body for guaranteeing the licensee will operate in conformity with general laws or for the purpose of protecting the public against harm from unfair business? Choose one answer. a. Indemnity Bond b. Franchise Bond c. Permit Bond d. License Bond

A

Which type of bond may be required by a public body when it awards a franchise? Choose one answer. a. Franchise Bond b. Indemnity Bond c. License Bond d. Permit Bond

D

Which type of bond may be required by a public official for their term of office? Choose one answer. a. Blue Sky Bond b. Lost Instrument Bond c. Customs Bond d. Public Official Bond

D

Which type of bond meets the requirement to get a permit for a specific function? Choose one answer. a. Indemnity Bond b. Franchise Bond c. License Bond d. Permit Bond

B

Which type of court bond would be required of a defendant to guarantee their appearance in court? Choose one answer. a. Conservation Bond b. Bail Bond c. Probate Bond d. Court Bond

D

Which type of fiduciary bond is designed for those who administer estates of deceased persons? Choose one answer. a. Bail Bond b. Court Bond c. Fiduciary Bond d. Probate Bond

A

Which type of fiduciary bond is designed for those who are appointed to manage and preserve property other than estates of decedents, such as those appointed as guardians of minors or incompetents? Choose one answer. a. Conservation Bond b. Court Bond c. Probate Bond d. Fiduciary Bond

B

Which type of fiduciary bond is required by persons appointed to conserve remaining assets and protect creditors? Choose one answer. a. Conservation Bond b. Insolvency Bond c. Probate Bond d. Court Bond

D

Which type of license bond holds a governmental body harmless from any injuries or damage caused by the principal's activities? Choose one answer. a. Franchise Bond b. Permit Bond c. License Bond d. Indemnity Bond

D

Which type of policy only reimburses the insured for non-surgical care provided by a physician? Choose one answer. a. Accident insurance b. Hospital indemnity insurance c. Hospitalization expense insurance d. Physician's coverage

D

Which type of policy pays a flat amount per day of hospitalization, regardless of expenses or other insurance? Choose one answer. a. Accident insurance b. Hospitalization expense insurance c. Surgical expense insurance d. Hospital indemnity insurance

A

Which type of policy provides coverage for expenses, including loss of income, arising from accidents? Choose one answer. a. Accident insurance b. Hospitalization expense insurance c. Surgical expense insurance d. Hospital indemnity insurance

B

Which type of structure would not qualify for coverage under Farm Coverage 'G' Other Farm Structures? Choose one answer. a. Fences and outdoor radio and equipment b. Living quarters for seasonal farm workers c. Barn d. Silo to store grain

C

Which type of structures does not qualify for the flood program dwelling form? Choose one answer. a. Storage Sheds b. Garage Apartments c. Five Unit Apartment d. Triplexes

D

Which types of vehicles are covered by the business auto policy? Choose one answer. a. Private passenger types including pickups and vans b. Commercial autos including trucks, truck tractors, semi trailers and trailers c. Public autos including vehicles used as public or livery conveyances d. All of these are correct; all businesses other than garage or trucking businesses

D

Which vehicles are eligible under the Personal Auto Policy? Choose one answer. a. A pickup or van that has a gross vehicle weight of less than 10,000 pounds and is not used to deliver or transport goods or materials b. None of the answers are correct c. Private passenger autos d. Both answers are correct

A

Which vehicles are not covered (excluded) from the PAP policy? Choose one answer. a. All of the answers are correct b. Any vehicle located inside a facility designed for racing, for the purpose of competing in or practicing for any prearranged or organized racing or speed contest c. Any vehicle with less than four wheels or designed mainly for use off public roads d. Those vehicles, which do not meet the status of the term "covered auto"

A

Who are the covered persons under medical payments of a PAP? Choose one answer. a. All of the answers are correct b. As a pedestrian if struck by any motor vehicle designed for use mainly on public roads or any type of trailer c. The named insured and family members while occupying any motor vehicle designed for use mainly on public roads or any type of trailer d. Any other persons occupying your covered auto

C

Who are the three parties to the surety ship? Choose one answer. a. Indemnitor, Principal, and Surety b. Contractor, Obligee, and Insured c. Principal, Obligee, and Surety d. Insured, Contractor, and Insurer

D

Who has liability coverage under the parent's PAP, when they are operating a vehicle solely owned by a resident child, but not insured under either the parent's or any other PAP? Choose one answer. a. None of the answers are correct b. Any family member as defined in the parent's PAP c. Any family member except the child owning the uninsured vehicle d. 'You' as defined in the parent's PAP

B

Who is an insured under the CGL policy? Choose one answer. a. If the named insured is a corporation, executive officers, directors and stockholders are insured in their status as such. b. All of the answers are correct c. If the named insured is an individual, the spouse is also an insured while conducting business d. If the named insured is a partnership or joint venture, the partners and their spouses are insureds while conducting business

C

Who is eligible for coverage under the Florida Worker's Compensation Joint Underwriting Association - FWCJUA? Choose one answer. a. All of the answers are correct b. An employer who is unable to obtain coverage from a commercial property carrier. c. An employer who is unable to obtain coverage from at least two other carriers, and must not be indebted for any previous unpaid WC premiums. d. An employer who was non-renewed by their current carrier.

B

Who is eligible for the homeowner's program? Choose one answer. a. Eligibility is limited to owner-occupants of 1-4 family dwellings b. Both answers are correct c. The program is designed for the personal non-business risk d. Neither answer is correct

A

Who may appoint a Customer Representative? Choose one answer. a. A general lines agent or a general lines insurance agency b. An adjuster c. An insurance company d. A surplus lines agent holding a general lines license and a surplus lines license

A

Why are "Association Plans" not exempt from state regulation? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. The "association plan" must be fully insured so the insurer is subject to state regulation. d. There is no employer-employee relationship (usually the relationship is a member and the association)

A

Why are Professional Employer Organizations (PEO) or Employee Leasing Companies not exempt from state regulation? Choose one answer. a. Both of the answers are correct b. Florida Statute 468.529 prohibits PEOs from sponsoring self-insured health plans. c. None of the answers are correct d. Even though a purported "co-employer" relationship exist, the state does not recognize an employee/employer relationship with the employee and the PEO since the PEO does not control the hiring and firing of employees, etc.

B

Will an insured be permitted to cover their home while it is under construction under the homeowner's program? Choose one answer. a. Both answers are correct b. Yes they may c. Neither answer is correct d. Yes, including a mobile home or trailer

the bankruptcy provisions found in the personal auto policy states that bankruptcy of the insured

Will not relieve the insurer of its policy obligations

A

With respect to Uninsured Motorist coverage, the insured has several choices. Which of the following is correct? Choose one answer. a. All of the answers are correct b. Reject Uninsured Motorist Coverage c. Reject the 'stacking' form of coverage d. Apply for limits lower than the Bodily Injury limits provided by the policy

A. All of these answers are correct

With respect to Uninsured Motorist coverage, the insured has several choices. Which one is correct? A. All of these answers are correct B. Reject Uninsured Motorist Coverage C. Reject the "stacking" form of coverage D. Apply for limits lower than the Bodily Injury limits provided by the policy

How long does an agent have to notify the Department of Financial Services when their contact information has changed?

Within 30 days.

When does the supplemental extended reporting period have to be purchased?

Within 60 days after the policy expiration.

Where can a customer representative transact business?

Within the office of his or her agency.

When an officer considered an employee, can he or she be exempted from Workers Compensation coverage?

Yes, by filing the proper notice with the Division of Corporations. However, for corporations in the construction industry up to (<=) 3 officers may be exempted, so long as they own at least 10% of the corporation. No limit for non-construction corporations.

If a health insurance policy is guaranteed renewable, is the insurer allowed to increase premiums?

Yes, on a class basis only

PERCENTAGE

a % amount is deducted from the loss (% of property value OR % of the policy limits)

What type of cycle has recently spawned more fraudulent activity?

a Hard Market.

PHYSICAL HAZARD

a characteritstic of an object that increases the severity of loss by covered peril

VACANCY

absence of people and personal property from a building, coverage may be restricted after a period of vacancy

MORALE

accident proneness - unconscious mental attitude of the insured

Loss Settlement for DP-01: Losses are adjusted at the a_____ c___ v____ of property

actual cash value

Under form HO-6, Coverage A covers building a_______ and a________, other real property a t the condominium premises, and property for which the insured has i_______ responsibility under an association agreemetn.

additions alterations insurance

REBATING

agent places additional items on the premium w/o explaining them to the inured / charging less premium / accepting less commission / giving something of value ($) to encourage people to buy from you

The following options are available for Section I to broaden coverage: (1) Loss settlements for personal property may be changed from actual cash value to replacement costs excepting certain properties such as a________, f___ a___, and obsolete stored articles. (2) A "special coverage" endorsement can be added to the HO-3 and HO-6 forms to extend the "all risk" coverage provided for buildings to include personal property. (3) Certain classes of property may be scheduled with specific amounts of insurance on an "all risk" basis and not subject to the basic policy deductibles. These classes are j_____, furs, cameras, m______ i_________, silverware, golfer's equipment, f___ a___, and stamp and coin collections. (4) Theft coverage can be extended to cover when the residence is occasionally rented to o_____. (5) Structures not covered under Coverage B (for example, a rented guest house for personal property located away from the residents premises) may be specifically included. (6) A student away at school may be covered by endorsement even if the student does not fit the definition of "an insured." (7) A relative of an insured in an assisted living care facility may be covered by endorsement even if the relative was not a member of the household previously. (8) The HO-4 may be endorsed to provide "open peril" or "all risk" coverage on personal property. (9) If the title to the residence is in the name of a trust, the name of the trust may be covered by endorsement. (10) The insured may purchase "open peril" as well as the optional coverage of collision on an actual cash value basis and subject to a deductible of $500 for certain owned golf carts. This is physical damage coverage on the golf cart itself. (11) HO-8 may be broadened to include off-premises theft losses subject to a limit of $1,000.

antiques, fine arts jewerly musical instruments fine arts others

Exclusions

are necessary to eliminate coverages which would 1. duplicate those in other policies which may be available to the insured 2 be uninsurable perils 3. be coverages of a specialized nature that the insurer is not qualified or prepared to offer or that require special underwriting and rating

SURPLUS LINES

are not regulated by the state so they do not need to have a contract

Rule of Law on Contract of Adhesion

are subject to having any ambiguities resolved in favor of the insured

The tests of materiality

are whether the insurer would have 1 sought to cancel the contract 2 requested a signifcantly higher premium had the true characteristics of the exposure been known

Insurance policies may be place into effect or _______ prior to issuance of a policy contract

bound, binder

INSURANCE COMMISSIONER

can audit insurance companies every 3 years - TO: 1. protection of consumers 2. make sure the consumers are not being taking advantage / ripped off 3. regulate companies

CPCU (Charter Property and Casualty Underwriter)

care value, do what is best for the consumer, place public interest above your own, maintain professional standards and knowledge, honor the integrity of your profession

PERIL

cause of loss (ex: fire, windstorm, vandalism)

Risk

chance of financial loss

The homeowner's policy conditions provide for various details such as c_____, a_________, s_______ and d_____ of the insured

changes assignments subrogation death

All dwelling forms contain the following exclusions: (1) loss from enforcement of any law regulating use, c_______, d_______ or repair of property. (2) Earth movement (3) water damage from f_____, rising w_____, backing up of sewers or drains, o_______ from a sump pump or subsurface water (4) damage caused by power i___________ if the damaged power source is off the insured p_______ (5) neglect of the insured in protecting property from damage (6) War (7) Nuclear hazards (8) Intentional loss (9) Governmental Action **Outside lawns, trees, shrubs or plants are excluded from coverage on form DP-1**

construction, demolition flood water overflow interuption premise

A homeowner's policy consists of a d_______ page, one of s__ homeowner's forms, and mandatory and optional e___________

declerations six endorsements

STRAIGHT DEDUCTABLE

deduct flat amount from loss payment

Insuring Agreements

define broadly the coverages given under the policy. Basically, the insuring agreement is the cloth from which the final coverage is cut. Exclusions and conditions may modify what the insuring agreements provides

Mortgage Clause

designed to protect the mortgagee's insurable interest

Dwelling Program: Coverage B - Other Structures: When Coverage B is included it covers d_______ structures on the dwelling premises not used for c________, m__________ or f______ purposes and further not r_____ or held for rental to others. There is a policy exception for the storage of commercial farming or manufacturing equipment if it is solely owned by the insured and does not contain gaseous or liquid fuel (other than that contained in a permanently installed fuel tank on the vehicle or craft stored or parked in the structure).

detached commercial, manufacturing or farming rented

Special form DP-3 provides coverage on an "all risk" basis insuring for all risk of d_____ l___ not e_____. The form contains a lengthy list of exclusions but is b_____ than the DP-2 form covering miscellaneous, undefined incidents.

direct loss excluded broader

Some insurance policies only cover direct loss, indirect loss or both. Please define

direct loss means physical harm to tangible property. indirect loss means economic loss that flows as a consequence of direct loss

Coverage A (does or does not) appear in form HO-4, as the building structure is (never or always) cvoered under that form. A limited amount of building additions and alterations coverage is provided under "Additional Coverages".

does not never

CFO (CHIEF FINANCIAL OFFICER) / OIR (OFFICE OF INSURANCE REGULATIONS) / DFS (DEPT OF FINANCIAL SERVICES)

does not pass the laws - they set the rules to explain the laws - they enforce the law THEIR MISSION: public protection

General Exclusions for Section I Property Coverage: 1. Loss resluting from e____ movement other than s______ 2. Water damage from f____, backing up of sewers or drains or underground seepage 3. Power f______ that occurs away from the residence 4. Neglect to use r______ m_____ to save and protect property at and after a loss 5. War 6 Nuclear Hazards 7. I_______ loss created by or at the direction of an insured.

earth sinkhole flood failure reasonable means Intentional

Waiver of Subrogation

endorsement on a property-casualty insurance policy. The Waiver of Subrogation prohibits the insurer from attempting to seek restitution from a third party who causes any kind of loss to the insured.

INSURANCE COMMISSIONER

enforces state laws relating to insurance

INSURANCE COMMISSIONER

enforces the state laws relating to insurance

SPECIFIC vs BLANKET

example below based on coverage amount of $1,2000,000. SPECIFIC LIMIT loss $300,000. -------pays $300,000. loss $500,000. -------pays $500,000. loss $400,000. -------pays $400,000. BLANKET LIMIT $1,200,000. (paid per occurrence)

Covered items: The HO-2 provides Section I coverage on a stated name basis, many of which are subject to certain limitiations; the perils names are: f___, l_______, windstorm, h___, explosion, r____ or civil commotion, aircraft, v_____, s____, vandalism or malicious m______, falling o_____, wieght of i___/s__/or s____, accidental discharge or overflow of water or steam from within a plumbing, a__-c______, s_____ system or household appliacnces, sudden and accidental damage from artifically genereated e_______ c____, volcanic eruption, and ground cover collapse (as mandated in FL).

firs lightning hail riot vehicles miscief objects ice/snow/sleet air-conditionaing sprinkler electric current

Section II exclusions: Motorized land vehicles (except motor vehicles in dead storage at the insured's residence, g___ c____while being used to play golf on a golf course or used in a private residential community where the insured lives and where golf carts are permitted on the roadway of the community, off-road recreational vehicles while on an insured location or elsewhere if not owned by the insured, or vehicles designed to aid the handicapped (these vehicles (are or are not) covered anywhere in the world so long as they are being used to aid the handicapped);

golf carts are

A flood "eligible" building must be a structure with two or more outside rigid walls and a fully secured roof; be affixed to a permanent site (mobile homes must meet anchoring requirments); be prinicpally above g_____ (50% or more of value) and be located within a eligible c_______. Eligable contents must be located w_____ an enclosed buildong or s_____ to prevent flotation out of the buildong. Certain specific property in basements and under elevated foors of building are e_____ from coverage

ground community secured excluded

EXPIRATION OF LICENSE/APPOINTMENT

if the agent fails to maintain an appointment with an agency (carrier/sponsoring entity) for a period of more than 48 months - then your 220 license losses the qualifications - you will have to start from scratch, like you never had a 220 license before - you have to start over and take the 200 hours / get tested again, etc.

OIR (OFFICE OF INSURANCE REGULATIONS)

in general - responsible for all activities of companies / carriers / risk bearing entities

DOMESTIC

in the state od FLORIDA

Dwelling Program: Coverage C - Personal Property: When Coverage C is included it covers household and personal property i________ to dwelling occupancy, both in the dwelling or elsewhere on the premises, belonging to the insured, family members, guests and servants are covered. Properties specifically excluded from coverage includes m____, tickets, s_____, certain valuable p______, precious m______, animals, birds, fish, aircraft and parts, motor vehicles (except equipment only used for premises maintenance), b____ (except rowboats and canoes), books of account, electronic data p_________ equipment and its software (except blank discs or purchased prerecorded computer programs), water, steam, gravemarkers, and credit and other fund transfer cards.

incidental money stamps papers metals book processing

The Declarations

includes descriptive material relating to the subjects covered, persons insured, the premium to be paid, period of coverage, and policy limits or amounts of insurance.

Loss of use covers i______ living costs over normal living costs if the damage to the residence is caused by a covered p_____ and renders the dwelling unfit for the occupanacy.

increased peril

For homeowner policies, the named insured must be an i________( c_________, p________ and estates are note eligible). The named insured must be bothe the o_______ and o_____ of the dwelling or the tenant if renting, or be a purchaser by contract or have a l___ e____ arrangement.

individual corporation partnership occupant owner life estate

The PAF contains a declarations with the listed types of properties shown as covered by inserting an amount of i_______ and p______. Therefore, a separate schedule listings specific articles with separate amounts of insurance may be attached. "O____ P_____" or "A__ R___" coverage applies to property covered under a PAF form. Common exclusions are for wear and tear, deterioration, inherent vice, government action and loss caused by i______ or v_____. "Inherent vice" is a quality within an object that results in the object tending to damage or destroy itself.

insurance and premium Open Perils All Risk inscests or vermin

Physical Hazard

is a condition stemming from the physical characteristics of an object that increases the probability and severity of loss from given perils

Hazard

is a condition that introduces or increases the likelihood of loss from a peril

DUE DILIGENT FORM

is filled out and processed by the insurance agent

DFS / (DEPT OF FINANCIAL SERVICES)

is headed by the CFO / (chief financial officer)

Standard Policies

is substantially like the policies written by all or a majority of companies in the field

DIRECTOR OF OIR (OFFICE OF INSURANCE REGULATIONS)

is the commissioner of insurance regulations

OIR (OFFICE OF INSURANCE REGULATIONS)

issues certificate of authority / enforces penalties / concentrates more on the companies / does not write the rates (the ins company does) but has to approve the increase

Section II contains two coverages: E: Liability and F: Medical Payments to others. Coverage E protects the insured form l____ liability for b_____ injury or property damage to others. Coverage F pays for medical and other related expenses for memebers of the p_____ injured through the insured's personal activities (with or without) regard to the insured's legal liability.

legal bodily public without

Dwelling Program: Coverage E - Additional Living Expenses: Coverage E covers the additional expenses incurred to maintain the insured's normal l______ s_________ if the property is uninhabitable after damage by an insurer peril. Coverage E pays the additional expenses until the property is restored to livable conditions. This coverage is not automatically included on Form DP-1, but it may be added by e_________.

living standards endorsement

Binders

may be made orally or in writing and shall be deemed to include all the usual terms of the policy as to which the binder was given together with such applicable endorsements as are designated in the binder, except as the superseded by the clear and express terms of the binder. No notice of cancellation or notice of nonrenewal otherwise required by this unit shall be required unless the duration of the binder exceeds 60 days. However, for purposes of F.S. 627.728 AND 627.7281 an insurer shall give a 5-day prior notice of cancellation of a binder unless the binder is replaced by a policy or another binder in the same or another company

CYCLICAL - HARD MARKET

more fraudulent activities -

REPLACEMENT COST

new for old, required to replace

Abandonment

no dumping damaged property on the insurer and demanding its full value.

The Section I deductible, which aplies to each o_______, is $___ for all perils other than hurricane. For Hurricane a minimum $__ deductible applies with the maximum deductible varying from _ percent of the buildong coverage amount to u______ amount. The policy limit applies to all losses in addition to the deductible.

occurance $500 $500 2% unlimited

PRINCIPAL OF INDEMNITY

one should not profit. A principle which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.

Section II has four (4) "Additional Coverages": 3) Damage to Property of O______: Up to $_____ coverage is provided for damaged property of others that is caused by an insured without regard to l_____ l______

others $1,000 legal liability

Section II exclusions: Watercraft and stored watercraft The exclusion only applies to inboard or inboard/outboard boats o____ by an insured of more than 50 horsepower and rented to an insured; s________ owned by or rented to an insured which are 26 feet or longer; both powered by outboard motors up over 25 horsepower owned by the insured at policy inception (but not if acquired during the policy term).

owned sailboats

Forms HO-2, HO-3, HO-5 and HO-8 apply only for o____ o______ one-four family dwellings. HO-_ applies for renters or those who occupy a residence in an ineligible building (such as an apartment in commercial building which the insured owns). HO-6 is for c__________ unit owners and c_________ apartment dwellers (can or can't) be written even if the unit is held for rental

owner occupied HO-4 condominium cooperative can

Coverage C: "Personal Property" covers p______ p______ wherever located that is owned or used by 'an i______'. The insured may choose to cover p______ p_______ of others while such property is located at the residence premises occupied by the i_____ and listed in the policy d________. Property of the guest or an employee of the insured (is or is not) covered while at

personal property insured personal property insured declerations is

Consideration Valid Insurance Contract

premium payment and agreement

AGENT SHOULD ALWAYS

put the interest of the public first

ERISA (Employee Retirement Income Security Act)

regulated by the Federal Government - department of labor - exempt from state laws

MEWA (Multiple-Employer Welfare Arrangement)

regulated by the state

Section II exclusions: Business pursuits Some examples would include occasional r_____ to others as a residence, the p_____ rental of the residence, use in part of the residence as an o____, s____, s_____ or private garage, activities where the insured recieved less than $____ in compensation, providing childcare services for __ compensation or for a relative of the insured, or liability coverage for an insured under the age of 21 engaged in a part time, self-employed business with no employees (i.e., babysitting or cutting grass) are not excluded).

renting partial office school studio $2,000 no

ACTUAL CASH VALUE - ACV

replacement cost minus depreciation

DEPOSIT PREMIUM

required by the insurer on forms of insurance subject to periodic premium adjustments

LICENSED AND APPOINTED

requirements to be able to: 1. advertise as an insurance agent 2. offer insurance / write an insurance contract is licensed (only products the sponsoring agency is licensed and appointed to transact) 3. must for a licensed agency - renewable every 3 years 4. $10,000.00 is the penalty for no agency licence 5. $5,000.00 is the penalty for no agency registration

Personal, non-business activities which arise from the insured locations (the r_______ premises described in the declarations, n____ acquired residences, locations where an insured is t________ residing or has rented a location for non business use, vacant land owned by for rented to an insured (not including farmland), land owned by the insured upon which a one to four family dwelling is being constructed for the insured, and cemetery plots or burial vaults) are covered anywhere.

residence newly temporarily

BLANKET INSURANCE

single limit of two or more covered items - full limit applies to any one of item

Insureds under the policy insclude the person named in the policy, a residing s_____, residing r______ of either, and any person under the age of __ in the care at any such person. A full-time student under the age of __ who is related to the named insured is considered an insured whiel away at school. Additinally, for Section II only, any person who is legally liable for a_______ or w_______ owned by an insured is covered.

spouse relative 21 24 animal watercraft

Moral Hazard

stems from the conscious mental attitude of the insured

Morale Hazard

stems from the unconscious mental attitude of the insured

WHO IS QUALIFIED TO TAKE THE STATE EXAM 220 PERSONAL AND COMMERCIAL LINES AGENT 2044 PERSONAL LINES AGENT

to qualify you must: 1. be 18 years or older 2. must reside and have you business in Florida 3. not handling controlled business must have at least one of the following and pass the examination: 1. must complete 220 agent/200 hour course 2044 agent/52 hour course 2. one year of experience in another state 3. 220 - 6 months / 2044 - 3 months experience with correspondence course 4. 4 year degree in insurance plus 15 semester hours in insurance course at an accredited college within those 4 years

An insured may not have more than ___ roomers or boarders per family occupancy and incidential business use such as an office or studio is permitted. A f___ premises is not eligable for the homeowner's program although i________ f______ is permitted. A policy may be issued to cover a dwelling under c____________ if the dewlling will be eligbale for the program when completed. A m_____ or t_____ home is not eligible for coverage unless the m_____ or t_____ home is rented and then only the tenant is eligible for coverage.

two farm incidental farm construction mobile ot trailer mobile ot trailer

UNFAIR TRADE PRACTICE

untimely explanation of a claim penalties for unfair methods of compensation: AGENTS: unwillful $5,000.00 - willful $40,000.00 COMPANIES: unwillful $20,000.00 - willful $200,000.00 ** misrepresentation: knowingly (willful) making misleading statements, lying on an insurance application, misleading the insured, etc. ** false statement: knowingly (willful) making false entry or material facts ** defamation: knowingly (willful) disseminating info false (oral or written) information about a person or an organization or their products, misrepresenting facts of another company through advertising ** unfair discrimination: making/permitting unfair rate changes or other benefits to an individual/individuals within the same actuarially suppotable calss

Pro Rata (Other Insurance)

used to describe a proportionate distribution. means that claims are only paid out in proportion to the insurance interest in the asset; this is also known as the first condition of average.

The following endorsements are available to broaden Section II: (1) Coverage may be included for w_______, which is normally excluded. (2) A "B______ Pursuits" endorsement is available to cover occupational liabilities for those who are employed by others. (3) Coverage may be included for structures at the residence premises or for 1- 4 family dwellings at other locations, which are rented to others. (4) Although farms are not eligible under the homeowner's program i_________ farming operations at the residence premises including liability for farm premises at other locations may be added. (5) "Personal Injury Liability" may be added covering claims against the insured for false a_____, detention or imprisonment, malicious p________, libel, slander, invasion of privacy, wrongful eviction and wrongful entry.

watercraft Business incidential arrest proescution

Percentage Deductibles

when a deduction is required from the loss of a percentage of the value of the property or a percentage of the policy limits

CHURNING

when the agent cancels the current policy and re-writes a new policy within the same agency to benefit and make more commission

TWISTING

when the agent convinces the client to cancel his/her current policy (with another agency) and writes a new policy with the agents agency

If the declerations page of the policy form DP-1 states "exteneded Coverage" or "EC" coverage is provided in the policy, the perils of w_______, hail, e________, riot or c____ c_________, aircraft, v_______, smoke and volcanic eruption are covered. A policy may not be issued covering extended coverage only; coverage for fire must be included. The extended coverahe perils are subject to various limitations; for example, windstorm and hail coverage does not cover a loss to awnings, outside antenna equipment, signs or boats. Damage to the building interior or contents of the building are not covered unless there is first damage to the exterior building roof or walls by windstorm or hail

windstorm explosion civil comotion vehicles

Except as otherwise noted, the PAF's territory of coverage is "w____-w____." Coverage is for the lesser of ACV, the cost to r____ or r______, or the limits specified for coverage. An option for agreed value is available. A special condition applies to "p____, s__ and p____." If there is loss to a pair or set, the company may elect to repair or replace in a way that restores the pair or set to original value, or to pay the difference between ACV before and after the loss. For the loss of a part of cover property made up of parts, the insurer's responsibility is only for the value of the part lost or damaged. Under the standard policy, (a or no) deductible applies to losses under a PAF.

world-wide repair or replace pairs, sets and parts no

Insurance policy must be ________ to constitute a policy

written

BEING APPOINTED MEANS

you're registered - good for 24 months (you have to renew after 24 months) or until canceled by the sponsoring company