2-20 General Lines Agent PreXam Flashcards: ALL SETS

True or False? There are some times a sales agent may need to use coercion to "move" the sales process along; this is referred to as a hard sell.

False.

True or False? There is no difference between ethics and law.

False.

This PAP definition means: in, upon, getting in, on, out or off. (a) Bodily Injury. (b) Property Damage. (c) Occupying. (d) Medical Payments.

Occupying.

Wind, waves, collision, stranding, sinking, and other water related accidents describes? (a) Perils of the Seas. (b) War. (c) Fire. (d) Enemies.

Perils of the Seas.

In Suretyship the surety has recourse against the non-performer also know as the ___________. (a) Obligee. (b) Principal. (c) Surety. (d) None of the above.

Principal.

Unstacked uninsured motorists differs from stacked uninsured motorists coverage in which of the following ways? (a) Unstacked coverage limits are limited to the vehicle involved in the accident. (b) Unstacked insurance is more expensive. (c) Unstacked coverage is broader. (d) All of the above.

Unstacked coverage limits are limited to the vehicle involved in the accident.

The BOP's Additional Coverages provides $___ for Forgery or Alteration. (a) $500. (b) $1,000. (c) $2,500. (d) $5,000.

$2,500.

True or False? The Definition section of the PAP defines "you" and "your" as relatives, wards and foster children in the household of the named insured.

False.

True or False? The FWCJUA was created by the Florida Association of Independent Insurance Agents.

False.

True or False? The HO-3 is the Homeowners policy with the broadest coverage.

False.

True or False? The HO-8 can be taken out by a condo owner for either their own occupancy or tenant occupancy of the condominium

False.

Which of the following perils are covered in the BAP's Specified Causes of Loss coverage: (a) Wear and Tear. (b) Mechanical Breakdown. (c) Electrical Breakdown. (d) None of the above.

None of the above.

The Commercial Property Insurance "Vacancy" condition suspends coverage if the insured building is vacant for ___ or more consecutive days prior to loss. (a) 10. (b) 60. (c) 90. (d) 120.

60 days.

Under Florida's Workers' Compensation laws permanent total loss is compensated at ___% of the employee's average weekly wage. (a) 33 2/3%. (b) 66 2/3%. (c) 5 3/4%. (d) 100%.

66 2/3%.

Under Florida's Workers' Compensation laws there is a ____ day "waiting period" required before benefits begin - benefits are payable from injury day one if disabilities exceed twenty-one days in duration. (a) 0. (b) 7. (c) 14. (d) 20.

7.

For a convenience store to be eligible for a BOP gasoline sales must be less than ___% of total annual gross sales. (a) 10%. (b) 25%. (c) 50%. (d) 75%.

75%.

Contract Bond

A category of Surety bonds, which guarantees the fulfillment of contractual obligations; includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds and Supply Contract bonds.

General Liability

A category of insurance, which includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability.

The insured has a Crime policy form and has suffered a loss by an act committed by an insured partner. Is this loss covered? (a) Covered. (b) Not Covered.

Not Covered.

The insured has a Crime policy form and has suffered a loss by governmental action. Is this loss covered? (a) Covered. (b) Not Covered.

Not Covered.

Defamation includes: (a) Disseminating information. (b) Dissemination information which is false. (c) Dissemination of information which is calculated to injure a third party. (d) Both B & C.

Both B & C.

Hip roofs: (a) Have two roof lines which basically form an A. (b) Have roof lines continuously on all sides of the building. (c) Are eligible for discounts. (d) Both B & C.

Both B & C.

In the BAP Comprehensive covered perils include: (a) War. (b) Civil Commotion. (c) Vandalism. (d) Both B & C.

Both B & C.

Other Than Collision covered perils include? (a) War. (b) Civil Commotion. (c) Vandalism. (d) Both B & C.

Both B & C.

Which bond is used to guarantee the Principal's acts in his/her capacity as a public official? (a) Public Official Bond. (b) Self-Insurance Bond. (c) Blue Sky Bond. (d) Customs Bond.

Public Official Bond.

Ocean Marine Liability is apportioned on a ________ basis? (a) Pure comparative negligence. (b) Contributory negligence . (c) Modified comparative negligence. (d) All of the above.

Pure comparative negligence.

MEWAs are: (a) Considered insurers by Florida Statute. (b) Not considered insurers by Florida Statute. (c) Not address in the Florida Statutes. (d) None of the above.

Considered insurers by Florida Statute.

Which of the following is considered a required classification of employment to be covered by Florida Workers Compensation? (a) Domestic servants in private homes. (b) State and county prisoners. (c) Construction workers. (d) Professional athletes.

Construction workers.

In the Dwelling Program Open Perils covers all direct physical loss but for which things are _________. (a) Included. (b) Excluded. (c) Related. (d) None of the above.

Excluded.

Other Than Collision coverage covers all loss not considered a Collision except that which is? (a) Excluded. (b) Included. (c) Defined. (d) None of the above.

Excluded.

This Boiler and Machinery coverage extension provides reimbursement for expenses necessary to mitigate loss and expedite repairs: (a) Expediting Expenses. (b) Automatic Coverage. (c) Defense. (d) Supplementary Payments.

Expediting Expenses.

True or False? Employment Related Practices Liability includes a single limit of insurance which includes damages and excludes defense expenses.

False.

True or False? Excess liability and Umbrella coverage are for large organizations only.

False.

True or False? F.S. 627.7288 mandates a $50 deductible in the adjustment of all glass claims.

False.

True or False? Residential property insurers may file loss mitigation credits with the OIR at the insurers discretion.

False.

True or False? Specified Causes of Loss provides the insured broader coverage than Comprehensive coverage in the BAP.

False.

True or False? The BAP includes $30 per day/$900 maximum Transportation Expense.

False.

True or False? The Crime form is primary over any other recoverable insurance.

False.

True or False? Vehicles on the Business Auto Policy are designated using an "alphabetical" nomenclature.

False.

True or False? Workers Compensation rating is based on an employer's gross revenue.

False.

True or False? You as a general agent may hire and license a customer representative who shall be a salaried employee. You may pay the customer representative commissions primarily based on the production of applications, insurance, or premiums.

False.

True or False? You may require a customer representative to engage in the transacting of insurance outside of your office.

False.

True or False? In the Homeowners policy "Additional Coverages" Fire Department Service charges are covered up to $50,000:

False?

Group health insurance plans are sponsored by all BUT which of the following: (a) Employer. (b) Association. (c) Family or Individual. (d) Organization.

Family or Individual.

Probate Bond

Fiduciary bond dealing with those who administer estates of a deceased person.

Conservation Bond

Fiduciary bond for those appointed to manage and preserve property other than estates of descendants.

Insolvency Bond

Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors.

Your insured is inquiring to purchase a policy for a condo unit they are planning to lease to a third party. Which policy form should the policy be written on? (a) HO3. (b) HO4. (c) HO6. (d) HO8.

HO6.

Barratry

Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement of the cargo.

Motor Truck Cargo Policy

Inland Marine transportation insurance, which protects the carrier against its liability for damage to domestic shipments in its custody.

The Small Business Boiler and Machinery Broad Form: (a) Spoilage Coverage can be endorsed. (b) Spoilage Coverage cannot be endorsed. (c) Spoilage Coverage is included in the base policy. (d) Is not address in the policy or by endorsement.

Spoilage Coverage can be endorsed.

The Crime policy values: (a) Money at its face value. (b) Securities at their face value. (c) Other property at its face value. (d) All of the above.

Money at its face value.

The standard rating plan is provided by? (a) Department of Insurance. (b) Insurance Services Office. (c) Insurance Rating Board. (d) Board of Insurance and Rating Regulation.

Insurance Services Office.

Which if any of the following are required to have a Certificate of Authority? (a) Agency. (b) Agent. (c) Insurance Company. (d) All of the above.

Insurance Company.

"Severability of Interest" means: (a) Several options of interest. (b) Policy cannot be cancelled. (c) Insurance applies to all or none. (d) Insurance applies separately to each insured.

Insurance applies separately to each insured.

Which of the following are exclusions in the Commercial General Liability policy? (a) Negligence. (b) Insured Contracts. (c) Intentional Injuries. (d) All of the above.

Intentional Injuries.

Construction elements must be documented by whom for wind mitigation credits to apply? (a) The insured. (b) Insurance Agent. (c) Licensed construction professional. (d) Any disinterested third party.

Licensed construction professional.

Lightning strikes Joe's building and a fire ensues, with resulting fire, smoke, and water (to put out the fire) damage to the property. Which peril would be considered the proximate cause of the loss? (a) Fire. (b) Lightning. (c) Water. (d) All of the above.

Ligtning. (The doctrine of proximate cause states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the originating occurrence.)

Which of the following is NOT an insured under Part A Liability of the PAP? (a) Non-permissive user. (b) Permissive user. (c) Family member. (d) Anyone legally responsible for "your covered auto".

Non-permissive user.

An insured's legal liability for the usage of a golf cart is covered: (a) Anywhere in the world. (b) On a golf course. (c) In any golfing community. (d) On any roadway leading to a golf course.

On a golf course.

This Form is written in specific coverage limit combinations in flood zones B, C, and X: (a) Dwelling Form. (b) Preferred Risk Policy. (c) General Property Form. (d) Residential Condominium building Association Policy Form.

Preferred Risk Policy.

Under the ISO BOP policy Liability and Medical Payments coverages are written on a ___________ basis. (a) Per person. (b) Per occurrence. (c) Per insured. (d) Replacement.

Per occurrence.

Hurricane deductibles apply: (a) Per occurrence. (b) Per year. (c) Deductibles do not apply to the Dwelling Program. (d) None of the above.

Per year.

Wind, waves, collision, stranding, sinking, and other water related accidents describes... (a) Jettison. (b) Barratry. (c) All Other Like Perils. (d) Perils of the Seas.

Perils of the Seas.

Improvements and Betterments

Permanent alterations which a tenant makes to the rented property, which will not be removed when the tenant leaves.

Which bond is used to permit the Principal to undertake events which are not continuous activities? (a) License Bond. (b) Indemnity Bond. (c) Permit Bond. (d) Franchise Bond.

Permit Bond.

Unauthorized entities present a regulatory concern because: (a) They foster good faith and fair dealing. (b) Comprehensive federal oversight. (c) Potential for unpaid claims. (d) All of the above.

Potential for unpaid claims.

ERISA's language states that the federally mandated ERISA laws supersedes state laws, this is known as: (a) Deemer clause. (b) Savings clause. (c) Preemption. (d) None of the above.

Preemption.

PRP stands for: (a) Property Risk Policy. (b) Preferred Renters Policy. (c) Preferred Risk Policy. (d) Property Reward Program.

Preferred Risk Policy.

Hospitalization Expense Insurance pays for all BUT which of the following? (a) Room and board in the hospital. (b) Nursing care. (c) Prescription Drugs. (d) Operating room.

Prescription Drugs.

Health Maintenance Organizations focus on: (a) The bottom line. (b) Preventative activity. (c) Both A & B. (d) Neither A or B.

Preventative activity.

The PAP's Medical Payments coverage is ______ when occupying owned automobile and when occupying non-owned autos. (a) Excess and Primary. (b) Primary and Excess. (c) Split and Single. (d) None of the above.

Primary and Excess.

Suretyship's three parties are: (a) Principals, Responsiblees, Surety. (b) Pinnacles, Responsiblees, Surety. (c) Principals, Obligees, Surety. (d) Principals, Responsiblees, Surety.

Principals, Obligees, Surety.

All BUT one of the following is an underlying reason for the creation of residual markets: (a) Uninsurable exposures. (b) Undesirable underwriting characteristic. (c) Catastrophic nature of exposure. (d) Redlining.

Redlining.

Physicians Coverage: (a) Reimburses an insured for non-surgical care provided by a physician. (b) Services in the physician's office, insured's home, or hospital are typically not covered. (c) Both A & B. (d) Neither A or B.

Reimburses an insured for non-surgical care provided by a physician.

This Health insurance provision states how a lapsed policy may be reactivated: (a) Double Indemnity. (b) Reinstatement. (c) Waiver of Premium. (d) Elimination Period.

Reinstatement.

A co-employee advises you to do something which is legal but unethical. How will you respond? (a) Take the co-employee's advice. (b) Reject the co-employee's advice and explain to them that lawfulness is the most basic level of treatment to be extended to an insured. (c) Take the co-employee's advice but document everything you did to avoid an E&O claim. (d) None of the above.

Reject the co-employee's advice and explain to them that lawfulness is the most basic level of treatment to be extended to an insured.

Your insured advises you they wish to have liability coverage for the use of any auto. Which symbol do you use for this blanket coverage? (a) Symbol 1. (b) Symbol 2. (c) Symbol 3. (d) Symbol 7.

Symbol 1.

Your insured advises you they wish to have liability coverage for all autos they own and they tell you that they change vehicles frequently throughout the year. Which symbol do you use for this flexible coverage? (a) Symbol 1. (b) Symbol 2. (c) Symbol 3. (d) Symbol 7.

Symbol 2.

Taylor Rental and Repair advises you they wish to have liability coverage for "any auto". Which symbol do you use for this blanket coverage? (a) Symbol 21. (b) Symbol 22. (c) Symbol 23. (d) Symbol 27.

Symbol 21.

Acme Garage advises you they wish to have liability coverage for all autos they own and they tell you that they change vehicles frequently throughout the year. Which symbol do you use for this flexible coverage? (a) Symbol 21. (b) Symbol 22. (c) Symbol 23. (d) Symbol 27.

Symbol 22.

Your insured advises you they wish to have liability coverage for all autos they own. The insured tells you that all insured vehicles will be of the private passenger type (they also advise vehicles are changed frequently throughout the year). Which symbol do you use for this flexible coverage? (a) Symbol 21. (b) Symbol 22. (c) Symbol 23. (d) Symbol 27.

Symbol 23.

Your insured advises you they wish to have liability coverage for all autos they own. The insured tells you that all insured vehicles will be of the private passenger type (they also advise vehicles are changed frequently throughout the year). Which symbol do you use for this flexible coverage? (a) Symbol 1. (b) Symbol 2. (c) Symbol 3. (d) Symbol 7.

Symbol 3.

Which symbol is used in Section III Garagekeepers of the Garage Policy declarations for comprehensive, collision, or specified causes of loss? (a) Symbol 21. (b) Symbol 23. (c) Symbol 25. (d) Symbol 30.

Symbol 30.

Which Symbol in the Truckers policy form covers "owned autos only"? (a) Symbol 41. (b) Symbol 42. (c) Symbol 48. (d) Symbol 49.

Symbol 42.

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, sewing or furnishing alcoholic beverages.

Legal Liability Coverage Form

This form belongs to the Commercial Property Coverage part of the Commercial Package Policy. It covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control.

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.

True or False? Indirect loss means economic loss which flows as a consequence of direct loss.

True. (Direct loss means physical harm to tangible property and Indirect loss means economic loss which flows as a consequence of direct loss.)

True or False? Insurance is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

True. (Insurance is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies)

True or False? The Applications Coordination Unit reviews and approves company applications to sell insurance.

True. The Applications Coordination Unit reviews and approves company applications to sell insurance in the state of Florida.

Automobile insurance rates are highest when the primary operator is? (a) Youthful unmarried male. (b) Youthful unmarried female. (c) Mature unmarried male. (d) Mature unmarried female.

Youthful unmarried male.

True or False? The Homeowners policy covers Renters in any type of building.

True.

Aggregate Limit

"limit for total amount of any and all claims that can be made within the policy period"

Agreed Value

"valuation method based upon appraisals, bills of sale, or a stated amount which sets the property value(s) in an insurance policy"

Accident

"a sudden fortuitous event"

Your insured in involved in a multi-vehicle accident. The policy has Other Than Collision coverage with a $500 deductible and Collision coverage with a $1,000 deductible. The insured vehicle has $7,500 in damages. How much will the insured collect after applying the correct coverage and deductible? (a) $6,000. (b) $6,500. (c) $7,000. (d) $7,500.

$6,500.

Under Florida's Workers' Compensation laws the WC death benefit pays up to $____ for actual funeral expenses. (a) $1,000. (b) $7,500. (c) $15,000. (d) $100,000.

$7,500.

Representation

Statements an applicant for insurance believes to be true. Does not carry as much force as warranty.

Proof of Loss

(1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy.

The Commercial Property Insurance policy requires a ___ day notice for non-payment of premium. (a) 0. (b) 30. (c) 60. (d) 90.

10 day.

Under Florida's Workers' Compensation laws casual labor is work that is to be completed in not over ___ days for less than $____. (a) 3 days and $100. (b) 10 days and $500. (c) 10 days and $2,400. (d) 15 days and $2,400.

10 days and $500.

An insurer is required to provide an insured with ___ days notice of cancellation for non-payment of premium. (a) 10. (b) 20. (c) 30. (d) 45.

10 days.

The FWCJUA was created to provide coverage for employers unable to obtain Workers Compensation in the voluntary market from at least ___ carriers. (a) 3. (b) 2. (c) 1. (d) None of the above.

2 carriers.

The NFIP defines Flood as "a general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land areas OR ___ or more properties (including the insured property). (a) 2. (b) 3. (c) 5. (d) 10.

2 or more acres.

The NFIP defines Flood as "a general and temporary condition of partial or complete inundation of ___ or more acres of normally dry land areas. (a) 2. (b) 3. (c) 5. (d) 10.

2 or more acres.

FIGA assessments are capped at ___% of a company's net direct premium and an additional ___% for emergency assessments for hurricanes. (a) 2%. (b) 10%. (c) 25%. (d) there is no cap for FIGA assessments.

2%.

An insured may not have more than ___ roomers or boarders. (a) 1. (b) 2. (c) 3. (d) 4.

2.

Employers can contest a Florida WC claim by filing notice within ___ days after injury. (a) 21. (b) 90. (c) 180. (d) 365.

21 days after injury.

Employment Related Practices Liability offers ___ years of extended reporting period by endorsement. (a) 1. (b) 3. (c) 5. (d) 7.

3 years.

Employment Related Practices Liability offers a ___ years extended reporting period by endorsement. (a) 1. (b) 3. (c) 5. (d) 7.

3 years.

PAP Medical Payments are payments for necessary medical and funeral expenses rendered within ____ years from the date of accident? (a) 1. (b) 2. (c) 3. (d) None of the above.

3 years.

Under Florida's Workers' Compensation laws corporations in the construction industry can exempt no more than ______ officers and those officers must own a minimum of 10% of the corporation. (a) 1. (b) 2. (c) 3. (d) 20.

3.

Florida Statutes (F.S. 627.67 1-675) requires Medicare Supplement Insurance to be returnable within ___days of purchase for full premium refund. (a) 3. (b) 10. (c) 30. (d) 45.

30 days.

Herman Hornblower, your insured, has cancelled his PAP policy. How many days does the insurer have to return Herman's premium payments? (a) 10. (b) 20. (c) 30. (d) 40.

30 days.

Tom Jones, your PAP insured, has cancelled his policy. How many days does the PAP insurer have to return the pro-rata unearned premium to the insured? (a) 30. (b) 45. (c) 60. (d) 75.

30 days.

How many days does the insured have to put the insurer on notice when a substitute vehicle has been purchased which requires Collision coverage if the policy does not have any vehicles with Collision coverage prior to the substitution? (a) 4. (b) 14. (c) 30. (d) No time limit.

4 days.

A PAP insurer has called your office advising that a Non-renewal Notice will be sent to your PAP insured. How many days notice are required for the Non-renewal Notice? (a) 30. (b) 45. (c) 60. (d) 75.

45 days.

An insurer is required to provide an insured with ___ days notice of cancellation for underwriting reasons. (a) 10. (b) 20. (c) 30. (d) 45.

45 days.

Self-Insurance Bond

A Surety bond that can be provided as evidence of compliance for an insurance requirement.

Mail Coverage Form

A part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It provides "aII risks" coverage for valuable contents of mail.

Accident

A sudden fortuitous event.

Conditionally Renewable

A type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy.

Property Damage

A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.

Collision

A type of physical damage insurance, which covers loss due to the insured object striking another object. Collision may also include upset of the insured object.

Aggregate Limit

A type of policy limit found in liability policies, which limits coverage to a specified total amount for all losses occurring within the policy period.

Jettison

A voluntary action to rid the ship of cargo in order to prevent further damage or peril.

The Preferred Risk Flood Policy is available to all BUT which of the following flood zones: (a) A. (b) B. (c) C. (d) X.

A.

The insuring agreement for Garage Liability states: "We will pay all sums an 'insured' legally must pay as damages because of 'bodily injury' or 'property damage' to which this insurance applies caused by an _________ and resulting from 'garage operations'. (a) Lawsuit. (b) Crime. (c) Accident. (d) Tortfeasor.

Accident.

Which of the following is NOT a trigger of the financial responsibility law? (a) Accident involving bodily injury. (b) Accumulation of driving points. (c) Property damage rendering vehicle inoperable. (d) Certain traffic offenses.

Accumulation of driving points.

Which of the following perils are covered in the BAP's Specified Causes of Loss coverage: (a) Theft and Vandalism. (b) Fire and Explosion. (c) Windstorm and Hail. (d) All of the above.

All of the above.

Installment Sales Floater

An Inland Marine form, which covers property sold on an installment basis.

This Boiler and Machinery coverage extension providers 90 days automatic coverage at a newly acquired location for like kind objects. (a) Expediting Expenses. (b) Automatic Coverage. (c) Defense. (d) Supplementary Payments.

Automatic Coverage.

Your insured has "triggered" Florida Financial Responsibility law which of the following may be that trigger? (a) Parking Ticket. (b) Invalid Registration. (c) Automobile accident involving bodily injury. (d) All of the above.

Automobile accident involving bodily injury.

Uninsured Motorist Coverage

Automobile coverage designed to provide protection for the insured should he or she be in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.

Earthquake Coverage

Available under the Commercial Package Policy. Requires the Causes of Loss form - Earthquake.

Aircraft Liability Insurance

Aviation coverage for liability to the public, passengers and third party property damage

Admitted Aircraft Liability Coverage

Aviation coverage providing death or dismemberment coverage irrespective of legal liability; sometimes written along side Aircraft Passenger Liability

Physical Damage coverage that applies to a non-owned auto is the ________ coverage applicable to any "your covered auto" in the Declarations and is excess over any other collectible insurance. (a) Broadest. (b) Most limited. (c) Excess. (d) No coverage in the PAP for non-owned autos.

Broadest.

This Homeowners policy endorsement covers losses incurred by the enforcement of a Building Ordinance or Law to otherwise undamaged property. (a) Inflation Guard. (b) Building Ordinance or Law. (c) Personal Property Replacement Cost. (d) Extended Replacement Cost.

Building Ordinance or Law.

Which unit protect the public from unethical insurance practices: (a) Bureau of Specialty Insurers. (b) Applications Coordination Unit. (c) Division of Agents and Agencies Services. (d) Bureau of Life and Health Forms and Rates.

Bureau of Market Conduct.

Flood or Flooding is defined as the partial or complete inundation of two or more acres of normally dry land or of two or more properties from all BUT which of the following: (a) Overflow of inland or tidal waters. (b) Burst water pipe. (c) Runoff of surface waters. (d) Mudflow.

Burst water pipe.

Obligee

In bonds, the one who is to be guaranteed that the principal will perform.

The most common roof decking material is: (a) Concrete. (b) Aluminum. (c) Plywood. (d) None of the above.

Plywood.

This PAP definition means: physical injury to or loss of use of tangible property. (a) Bodily Injury. (b) Property Damage. (c) Personal Injury. (d) Tangible Property.

Property Damage.

Legal Liability

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

Exclusions

Section of the insurance policy, which lists property, perils, persons, or situations, which are not covered under the policy.

Blue Sky Bond

Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public.

Vacancy

The absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.

Claim

The assertion of a legal right against an insurer that carries with it a demand for appropriate relief.

Peril

The cause of loss. Examples include fire, windstorm or explosion.

Declarations

The section of an insurance contract which shows, who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies.

Insuring Agreement

The section of an insurance policy, which states which losses will be indemnified, what property is covered, which perils are insured against.

Which of the following is NOT a "type" of a General Lines License? (a) Personal Lines Agent. (b) Limited Customer Service Representative. (c) Title Agent. (d) Customer Representative.

Title Agent.

True of False? An insurance company owned by stockholders is a Stock Insurance Company.

True.

True or False? The PAP's Declarations identifies the named insured and any loss payees.

True.

Other Coverages in the DP1 policy provides coverage for "property away from the premises" in the amount of: (a) Up to 10% of Coverage C. (b) Up to 20% of Coverage C. (c) Up to 25% of Coverage C. (d) Up to 50% of Coverage C.

Up to 10% of Coverage C.

The insurer may inspect books and records during the policy period and for ___ year(s) thereafter. (a) 1. (b) 2. (c) 3. (d) 4.

Up to 3 years.

Primary Insurance

When two or more coverages or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less. See Excess insurance.

All Risk Insurance

a.k.a. "open perils" covers any and all perils unless specifically excluded

A General Lines Agent has how many days to notify the Department of Financial Services of name and address changes? (a) 30. (b) 60. (c) 90. (d) 120.

60 days.

The Small Business Broad Form includes a $_____ per accident limits for hazardous substances other than ammonia/ammonia contamination. (a) $10,000. (b) 25,000. (c) $50,000. (d) No limit is specified.

$25,000.

The Commercial Property policy coverage extension, Property Off-Premises, pays up to $____ for business personal property while temporarily at a location not owned, leased or operated by the insured. (a) $1,000. (b) $2,500. (c) $5,000. (d) $10,000.

$10,000.

Physical Damage deductibles in the FAJUA policy include? (a) $250, $500, $1,000. (b) $500, 2%, 5%, 10%. (c) $250, 2%, $1000. (d) None of the above.

$250, $500, $1,000.

Under Florida's Workers' Compensation laws the WC death benefit is payable if death results within __ year(s) of injury. (a) 1. (b) 2. (c) 3. (d) 4.

1 year of injury.

The CGL's Coverage C Medical Payments requires the claim to be incurred and reported within ___ year of the date of accident. (a) 1. (b) 3. (c) 5. (d) No time limit.

1 year.

Florida law requires ___ days of notice for cancellation due to non-payment of premium. (a) 10. (b) 20. (c) 60. (d) 100.

10 days.

Florida law requires an insurer to provide ___ days notice for non-payment of premium. (a) 10. (b) 30. (c) 60. (d) 100.

10 days.

In the DP-1 policy ___% of the Coverage A limit may be applied to Other Structures: (a) 10%. (b) 25%. (c) 50%. (d) 75%.

10%.

In the Flood Insurance Dwelling policy detached garages are covered up to ___% of the dwelling limit. (a) 10%. (b) 20%. (c) 25%. (d) 0.

10%.

Under Florida's Workers' Compensation laws temporary total disability is compensated for a period not to exceed ____ weeks. (a) 26. (b) 104. (c) 156. (d) No stated limit.

104.

Florida law requires ___ days of notice of renewal for a Homeowners policy. (a) 10. (b) 30. (c) 45. (d) 100.

45 days.

Mechanical Breakdown Insurance policy terms typically cover used cars up to _____ miles or ___ year(s). (a) 12,000 miles and one year. (b) 24,000 miles and two years. (c) 36,000 miles and three years. (d) None of the above.

12,000 miles and one year.

How many days does the insured have to put the insurer on notice when a substitute vehicle has been purchased which requires Comprehensive coverage if the policy has Comprehensive coverage on at least one vehicle prior to the substitution? (a) 4. (b) 14. (c) 30. (d) No time limit.

14 days.

According to F.S. 626.731(1)(a) an applicant must be ___ years old to be eligible for a General Lines insurance license. (a) 18. (b) 21. (c) 25. (d) No age requirement is listed in the Florida Statutes.

18 years of age.

In the Homeowners Insurance policy an insured must put the insurer on notice within ____ days to collect on a Replacement Cost Basis if the property that is damaged is subject to depreciation. (a) 30. (b) 60. (c) 180. (d) 365.

180 days.

The Homeowners policy is for private residential exposures but the policy will cover not more than ___ roomers or boarders per family occupancy. (a) 1. (b) 2. (c) 3. (d) None of the above.

2.

A General Lines Agent licensed 6 or more years is required to obtain ___ hours of continuing education every two years. (a) 10. (b) 20. (c) 30. (d) 40.

20 CE Hours.

Mitigation credits are available for roof coverings if the roof is installed per the ____ Florida Building Code. (a) 1995. (b) 2000. (c) 2001. (d) There are no credits for roof coverings.

2001.

Under Florida's Workers' Compensation laws there is a seven day "waiting period" required before benefits begin - benefits are payable from injury day one if disabilities exceed _____ days in duration. (a) 8. (b) 14. (c) 21. (d) 30.

21.

A General Lines Agent licensed LESS THAN 6 YEARS is required to obtain ___ hours of continuing education every two years. (a) 14. (b) 24. (c) 34. (d) 44.

24 CE Hours.

Transportation Expense coverage begins ___ hours after a loss (excluding Theft losses). (a) 0. (b) 24. (c) 48. (d) 72.

24 hours.

Your insured has suffered a compensable Collision loss and is in need of a rental car for use while the insured vehicle is being repaired. You advise the insured that their Transportation Expense coverage begins ___ hours after the loss. (a) 0. (b) 24. (c) 48. (d) 72.

24 hours.

Florida law requires each Homeowners insurer to offer higher than the basic 10% Ordinance and Law coverage to their insureds in the following amounts___% and ___%. (a) 11% and 12%. (b) 20% and 50%. (c) 25% and 50%. (d) 33 1/3% and 66 2/3%.

25% and 50%.

Additional Coverages in the BOP include ____% for debris removal. (a) 10%. (b) 25%. (c) 50%. (d) 75%.

25%.

In the Commercial Property policy "Debris Removal" is covered up to ___% of the amount of the covered loss for debris removal. (a) 5%. (b) 25%. (c) 75%. (d) None of the above.

25%.

The Citizens commercial property policy will cover a commercial building if the mercantile occupancy does not exceed ___%. (a) 10%. (b) 25%. (c) 50%. (d) 75%.

25%.

Under Florida's Workers' Compensation laws there is a ___% reduction for employee recovery for willful refusal to utilize safety equipment or obey safety rules. (a) 33 1/3%. (b) 25%. (c) 66 2/3%. (d) None of the above.

25%.

Florida law recalls how many days notice of non-renewal. (a) 30. (b) 45. (c) 60. (d) 75.

45 days.

Transportation Expense coverage begins ___ hours after a Theft loss. (a) 0. (b) 24. (c) 48. (d) 72.

48 hours.

Your insured has suffered a compensable Other Than Collision Theft loss and is in need of a rental car. You advise the insured that their Transportation Expense coverage begins ___ hours after a Theft loss. (a) 0. (b) 24. (c) 48. (d) 72.

48 hours.

The DP-2 "Other Coverages" adds ___% for loss to trees, shrubs and plants. (a) 5%. (b) 10%. (c) 20%. (d) 50%.

5%.

Rates in Tier Two are set at ___% above comparable voluntary markets. (a) 10%. (b) 25%. (c) 50%. (d) 75%.

50%.

An "eligible building" in the NFIP must have at least ___% of its value above ground level. (a) 25. (b) 50. (c) 75. (d) 100.

50.

The BOP will cover an office or office condo association if the buildings are not over ____ stories high and does not exceed _____ square feet. (a) 6 stories and 100,000 square feet. (c) 20 stories and 500,000 square feet. (c) There are no story/square feet limitations in the BOP.

6 stories and 100,000 square feet.

A Citizens policy may be replaced with a policy from an authorized insurer within the first ____ days that the policy has been written. (a) 30. (b) 60. (c) 90. (d) 180.

60 days.

Small Business Boiler And Machinery Coverage

A Boiler and Machinery Coverage form designed specifically for small businesses. Does not require attachment of Objects Definition form, since definitions are built in.

Small Business Boiler And Machinery Broad Form

A Boiler and Machinery Coverage form for small a business that provides somewhat broader coverage than the standard Small Business Boiler and Machinery.

Expediting Expenses

A Boiler and Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs, i.e., overtime, or express transportation charges.

Robbery And Safe Burglary Coverage

A Commercial Crime Coverage form that covers loss to property other than money or securities from robbery of a custodian, robbery outside the premises and safe burglary.

Theft, Disappearance and Destruction Coverage Form

A Commercial Crime Coverage form which covers money and securities for loss by theft, disappearance or destruction, both inside and outside of the premises.

Forgery or Alteration Coverage Form

A Commercial Crime form that covers loss from forgery or alteration of checks, drafts, promissory notes or similar instruments.

Occurrence Form

A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage which occur during the policy period, regardless of when claim is made.

Signs Coverage Form

A Commercial Inland Marine Coverage form that provides "all risk" coverage for neon, fluorescent, automatic or mechanical electrical signs.

Unfair Insurance Trade Practices Act

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

Public Official Bonds

A category of Surety bonds furnished by principals who are elected or appointed to till positions of trust, guaranteeing their faithful and honest performance in office.

Dread Disease Policy

A Health insurance policy, which provides benefits for a single illness.

Double Indemnity

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

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. See Judicial bond.

Indemnity Bond

A License bond, which holds the government harmless from injuries or damages caused by the principal's activities.

Franchise Bond

A Surety bond that may be required by a public body when it awards a franchise.

Instrumentalities Of Transportation And Communication

A category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, etc.

Sue and Labor Clause

A clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss or to minimize a loss which has occurred.

Abandonment Clause

A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value.

Coinsurance Clause

A clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss.

Assignment Clause

A condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents to it in writing.

Garage Coverage Form

A coverage form that is part of the Commercial Auto Coverage Part and which provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc). Includes coverage for liability, physical damage and garagekeepers losses arising out of owned, non-owned and hired autos.

Personal Injury Protection

A coverage provided in Auto policies in the state of Florida that provides coverage for the insured's own injuries on a first—party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in Florida.

Debris Removal

A coverage provided in many property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.

Admitted Aircraft Liability Coverage

A coverage sometimes written in conjunction with Aircraft Passenger Liability which can provide reimbursement for death or dismemberment without requiring legal action

Straight Deductible

A deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss.

Endorsement

A document, which is attached to the policy and modifies or changes the original policy in some way.

Fraud

A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.

Proximate Cause

A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.

Contract

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

Trailer Interchange Insurance

A legal liability coverage provided under the Trucker's 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.

CIaims—Made Form

A liability form, which is part of the Commercial General Liability part of the Commercial Package Policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.

Extended Reporting Period

A period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage with insurance that has a retroactive date later than the date shown in the Declarations, or with an Occurrence form. The Basic Extended Reporting Period runs five years. The Supplemental Extended Reporting Period has unlimited duration but is available only by endorsement for an extra charge.

Commercial Package Policy

A simplified, easy-to-read Commercial Package Policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime/Employee Dishonesty, Boiler and Machinery, Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and Employment—Related Practices Liability. Forms may be used in the package policy or may be used to issue monoline policies.

Unscheduled Coverage

A single coverage amount, which applies generally to personal property. Also called blanket insurance.

Warranty

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

Severability Clause

A standard Liability insurance clause that means that insurance applies separately to each insured.

Valued Policy Law

A statute, which states that if there is a total loss by a covered peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid.

This Boiler and Machinery endorsement is available to change loss settlement conditions from a replacement cost to an ACV basis. (a) Limited Coverage Endorsement. (b) Actual Cash Endorsement. (c) Additional Expediting Expense Endorsement. (d) Water Damage Endorsement.

Actual Cash Endorsement.

Which term is defined by property that is damaged beyond repair? (a) General Average Clause. (b) Free of Particular Average. (c) Sue and Labor. (d) Actual Total Loss.

Actual Total Loss.

Small Business Boiler Form "business interruption" includes extra expense and covers on an "________" basis. (a) Triple-net. (b) Double-indemnity. (c) Actual loss sustained. (d) None of the above.

Actual loss sustained.

Theatrical Property Coverage Form

All Risks Commercial Inland Marine Coverage form that covers scenery, costumes and theatrical property for either a single production or blanket for all productions.

This coverage is written an adjunct to Passenger Liability, not applicable to passengers carried for hire providing a remedy for injuries without requiring guest to file legal action for injuries is.... (a) Non-Admitted Aircraft Liability Coverage. (b) Foreign Aircraft Liability Coverage. (c) Admitted Aircraft Liability Coverage. (d) None of the above.

Admitted Aircraft Liability Coverage.

Mr. Kettle is purchasing an automobile policy. He advises he does not wish to carry liability insurance but wants uninsured motorists liability. How do you respond? (a) Sell him the policy with UM and no liability insurance. (b) Advise him that a policy must have liability insurance coverage if UM coverage is to be taken. (c) Sell him extended PIP. (d) Place the No Liability Endorsement on his policy.

Advise him that a policy must have liability insurance coverage if UM coverage is to be taken.

Your HO-3 insured has contacted you to add the hovercraft he has just purchased to his Homeowners policy. How will you advise him? (a) Ask for a copy of the bill of sale and increase Coverage C by that amount. (b) Advise the insured that the Homeowners policy specifically excludes coverage for hovercrafts. (c) Advise the client that the Homeowners policy only insures up to $1,000 for hovercrafts. (d) None of the above.

Advise the insured that the Homeowners policy specifically excludes coverage for hovercrafts.

Collision covers losses for upset or impact with another vehicle or object AND Other Than Collision covers? (a) The PAP does not have an "Other Than Collision" coverage. (b) All direct and accidental loss not covered by Collision coverage. (c) The perils of Fire and Theft only. (d) Loss of use of the vehicle for $30 per day.

All direct and accidental loss not covered by Collision coverage.

Which of the following are triggers of the financial responsibility law? (a) Accident involving bodily injury. (b) Certain traffic offenses. (c) Property damage rendering vehicle inoperable. (d) All of the above.

All of the above.

Which of the following can be found on a PAP declarations page? (a) Coverages and Premiums. (b) Insured Name and Mailing Address. (c) Loss Payee or Lienholder. (d) All of the above.

All of the above.

Which of the following increase the probability and/or severity of loss? (a) Physical hazard. (b) Moral hazard. (c) Morale hazard. (d) All of the above.

All of the above.

Which of the following is/are an Additional Coverage under Section II of the Homeowners policy: (a) First Aid Expenses. (b) Damage to Property of Others. (c) Loss Assessment. (d) All of the above.

All of the above.

The appraisal condition is used to resolve issues of? (a) Coverage. (b) Who is an insured. (c) Amount of Loss. (d) Territory.

Amount of Loss.

Camera and Musical Instrument Dealers Form

An "all risk" Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an employee's custody or elsewhere.

Jewelers Block

An "all risk" Inland Marine form for retail jewelers that covers the insured's stock in trade and the property of others, while at the insured's premises, in transit and elsewhere.

A reciprocal exchange is legally controlled by: (a) An Attorney-in Fact. (b) Board of Directors. (c) Stockholders. (d) Policyholders.

An Attorney-in Fact.

Safe Driver Insurance Plan

An Automobile insurance rating program, which applies the lowest rates to operators with the best driving records. Points are assigned for accidents and traffic violations, with higher rates resulting as points increase.

Film Coverage Form

An Inland Marine Coverage form that provides "all risk" coverage for exposed motion picture film, including sound recordings and magnetic or video tapes that have been properly recorded until the first full quota of positive prints or film have been made.

Equipment Dealers Coverage Form

An Inland Marine form, which provides "all risk" coverage for mobile agricultural and construction equipment owned by or in the care of an equipment dealer.

Running Down Clause

An Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damaging another ship.

Freight Coverage

An Ocean Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid.

Replacement Cost Endorsement

An endorsement that can be added to an HO-3 form to provide replacement cost coverage on personal property (with limitations).

Equal Shares Clause

An insurance clause, which states that when the insured has other insurance, the loss payment made by the company will be based on the number of applicable policies, not on their limits.

Policy

An insurance contract.

Insurable Interest

Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment. A claim may be paid only when an insurable interest exists.

Your Homeowners Insured leases her garage out as a private residence. Which Homeowners coverage applies? (a) Coverage A - Dwelling. (b) Coverage B - Other Structures. (c) Coverage C - Personal Property. (d) An insured's garage rented to another party as a residence is not covered under the Homeowners policy.

An insured's garage rented to another party as a residence is not covered under the Homeowners policy.

Waiver of Premium

An optional provision in Health insurance policies that states that if the insured becomes totally disabled, premiums are waived and coverage remains in force.

Binder

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

Residual Market

An organization created by the Legislature to provide Florida residents with crucial or required coverages generally unavailable in the voluntary market.

Insurance Service Office (ISO)

An organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and tiles standard rates for many lines of insurance. Also develops standardized forms.

Installation Form

An uncontrolled Inland Marine form that covers property in transit and at premises where an installation is to be made.

An insured has made application for a Homeowners policy with Citizens. The insured has a dog and has inquired into the liability coverage in the Citizen's HO-3 policy. You advise... (a) Animal Liability is included up to the Liability limits in the policy. (b) Animal Liability is excluded in the personal lines Citizen's policy form. (c) Animal Liability is covered under the Animal Malpractice Endorsement. (d) Animal Liability is covered up to the full Coverage A amount.

Animal Liability is excluded in the personal lines Citizen's policy form.

Clip roof connectors: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.

Are eligible for mitigation credits.

Roof Decks attached with 8d common nails at six inch intervals along the panel edges and 12 inch intervals in the field: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.

Are eligible for mitigation credits.

Roof Decks attached with 8d common nails at six inch intervals along the panel edges and six inch intervals in the field: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.

Are eligible for mitigation credits.

Strap roof connectors: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.

Are eligible for mitigation credits.

FWCJUA Tier Three eligible insureds: (a) Must have modification factors below 1.00. (b) No lost time claims. (c) Are those that do not meet the requirements for Tier One or Tier Two. (d) None of the above.

Are those that do not meet the requirements for Tier One or Tier Two.

Burglary

As it is defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit.

A customer representative may only perform customer representative duties: (a) As to the specific general lines insurance products which their supervising, General Lines Agent is actually then appointed by an insurer to handle. (b) To any lines of insurance . (c) A customer representative does not have a "supervising agent". (d) None of the above.

As to the specific general lines insurance products which their supervising, General Lines Agent is actually then appointed by an insurer to handle.

The final step in the bonding process is the execution of the bond by the surety's ________. (a) Obligee. (b) Principal. (c) Attorney-in-fact (normally the surety's agent). (d) None of the above.

Attorney-in-fact (normally the surety's agent).

According to Florida Statute 624.09 an "_______" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Authorized.

You have just learned that a new insurance company in Florida has a certificate of authority issued by the department to transact insurance in this state. According to Florida Statute 624.09 this new company is an _________ company. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Authorized.

You have just learned that a new insurance company in Florida has a certificate of authority issued by the department to transact insurance in this state. This new company is an _________ company. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Authorized.

Airport and Air Meet Liability

Aviation coverage which covers airports for bodiliy injury and property damage to third parties

Other Than Collision covered perils include? (a) Theft. (b) Hail. (c) Both A & B. (d) Neither A or B.

Both A and B.

Under Florida's Workers' Compensation laws illegal drug use, intoxication, or intentional acts to injure or kill: (a) Bar an employee's claim. (b) Do not bar an employee's claim. (c) The law does not address: Illegal drug use, intoxication, or intentional acts. (d) None of the above.

Bar an employee's claim.

Covers the loss by fraud or deliberate act by the master or the crew with the intention of reaping gains at the expense of the ship's owner describes? (a) Jettison. (b) Barratry. (c) All Other Like Perils. (d) Perils of the Seas.

Barratry.

Covers the loss of voluntarily throwing overboard parts of the ship or cargo to save the ship describes? (a) Jettison. (b) Barratry. (c) All Other Like Perils. (d) Perils of the Seas.

Barratry.

Insurance contracts are considered contracts of adhesion which means the contracts are? (a) Conditional. (b) Personal. (c) Binding. (d) Between parties of unequal bargaining power.

Between parties of unequal bargaining power. (Contracts of adhesion refer to the unequal bargaining power of the insured as the insured cannot negotiate the terms or language of the contract, having to take the offer of the insurer as written by the insurance company.)

A bond attached to an initial bid of the Principal guarantees Obligee if bid is awarded and the Principal will obtain a Performance Bond and complete the work as bid is called a: (a) Performance Bond. (b) Bid Bond. (c) Payment Bond. (d) None of the above.

Bid Bond.

In the Farm Policy, Coverage F - unscheduled farm personal property, covers farm personal property on a ______ basis. (a) Blanket. (b) Scheduled. (c) Agreed Value. (d) All of the above.

Blanket.

Your insured has rejected Uninsured Motorists coverage because she has "great" health insurance. What is your response? (a) You agree with your insured. (b) You advise your insured that UM covers non-economic damages such as pain and suffering. (c) You advise your insured that UM covers lost wages. (d) Both B & C.

Both B & C.

How may the insured Transfer their CGL policy to another party? (a) Transfers are not permitted. (b) Transfers must be done in writing. (c) Transfers must be agreed to by the insurance company. (d) Both B and C.

Both B and C.

The FAJUA offers: (a) Business Auto coverage. (b) Wind coverage of structures. (c) Residential Property Insurance. (d) Workers Compensation.

Business Auto coverage.

Your insured operates his consulting business from home. Several clients come to his house on a daily basis. Which Homeowners endorsement can be applied to his policy to cover this exposure? (a) Incidental Farming endorsement. (b) Incidental Business endorsement. (c) usiness Pursuit endorsement. (d) Personal Injury Liability endorsement.

Business Pursuit endorsement.

Under Florida's Workers' Compensation laws penalties for non-compliance include: (a) Business is guilty of first-degree misdemeanor. (b) Business is guilty of second-degree misdemeanor. (c) Business is guilty of third-degree misdemeanor. (d) Business is guilty of a felony.

Business is guilty of second-degree misdemeanour.

Under Florida's Workers' Compensation laws penalties for non-compliance include: (a) Business is guilty of first-degree misdemeanour. (b) Business is guilty of second-degree misdemeanour. (c) Business is guilty of third-degree misdemeanour. (d) Business is guilty of a felony.

Business is guilty of second-degree misdemeanour.

This PAP definition means: trade, profession, or occupation. (a) Avocation. (b) Business. (c) Recreation. (d) Association.

Business.

Stands for Cost and Freight, assignment of responsibility of buyer to obtain insurance. (a) F.O.B. (b) C.I.F. (c) C.F. (d) F.A.S.

C.F.

You have an insured who has been told that he could obtain a cheaper rate through the FAJUA. You advise him that the FAJUA is a residual market for individuals who: (a) Can obtain automobile insurance in the private - competitive market but seek a lower premium. (b) Cannot obtain automobile insurance in the private - competitive market. (c) Can obtain automobile insurance in the private - competitive market but seek broader coverage. (d) None of the above.

Cannot obtain automobile insurance in the private - competitive market.

This coverage protects the legal liability of the insured for claims for damaged baggage or cargo: (a) Airport and Air Meet Liability. (b) Product Liability. (c) Medical Payments. (d) Cargo Liability.

Cargo Liability.

The Florida Financial Responsibility Law can be satisfied by all BUT which of the following? (a) Auto liability limits of 10/20/10. (b) Qualified self-insurer for 10/20/10 limits. (c) Carrying PIP/PD. (d) Cash bond guaranteeing 10/20/10 limits.

Carrying PIP/PD.

______________ insurance is insurance which pays on behalf of the insured's legal liability. (a) Property. (b) Casualty. (c) Health. (d) Both A & C.

Casualty. (Casualty insurance is insurance where payment will be made on behalf of the insured to "a third party", based upon the insured's liability to the third party ...i.e. the policyholder is responsible for an automobile accident and the insured's insurance company pays the party whose vehicle or property was damaged.)

Part Two Employers Liability pays for: (a) Claims by employees for injuries subject to a workers compensation law. (b) Claims by others for the liabilities to insured's employees. (c) Both A & B. (d) Neither A or B.

Claims by others for the liabilities to insured's employees.

On the PAP declarations page there is no premium amount showing besides the coverages of Comprehensive and Collision. What does this mean? (a) Comprehensive and Collision are free when Liability coverages are elected. (b) Comprehensive and Collision premiums are included in the total premium even if they are not listed on the declarations page. (c) Comprehensive and Collision have not been purchased by the insured and are not included in the policy. (d) None of the above.

Comprehensive and Collision have not been purchased by the insured and are not included in the policy.

Performance Bonds

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

You are explaining CGL coverages with your insured, Becky Johnson. You tell Becky that Coverage C covers: (a) Coverage C covers Bodily Injury and Property Damage. (b) Coverage C covers Personal and Advertising Injury. (c) Coverage C covers Medical Payments. (d) None of the above.

Coverage C covers Medical Payments.

Insurable "objects" include all BUT which of the following? (a) Refrigerating Equipment. (b) Engines. (c) Crops. (d) Air Conditioning Equipment.

Crops.

The CGL considers an insured to be all BUT which of the following? (a) Employees. (b) Customers. (c) Stockholders. (d) Executive Officers.

Customers.

Which bond is used to guarantee the Principal's activities associated with importing and exporting? (a) Public Official Bond. (b) Self-Insurance Bond. (c) Blue Sky Bond. (d) Customs Bond.

Customs Bond.

A Mutual Company becomes a Stock Company through the process of? (a) Disintermediation. (b) Demutualization. (c) Ratification. (d) Mutual Companies are not permitted to become Stock Companies.

Demutualization.

True or False? Employment Related Practices Liability includes a single limit of insurance which includes damages and excludes defense expenses

False.

The solicitation of insurance by a General Lines Agent include(s): (a) Describing the benefits or terms of insurance coverage, including premiums or rates of return. (b) Distributing an invitation to a party to a customer. (c) Both A & B. (d) Neither A or B.

Describing the benefits or terms of insurance coverage, including premiums or rates of return.

Under the Part D insuring agreement, the company agrees to pay for ______ and _______ loss. (a) Indirect and Intentional. (b) Direct and Accident. (c) Obvious and Overture. (d) None of the Above.

Direct and Accident.

Under the Section III of the BAP insuring agreement, the company agrees to pay for ______ and _______ loss. (a) Indirect and Intentional. (b) Direct and Accident. (c) Obvious and Overture. (d) None of the Above.

Direct and Accident.

Towing and Labor covers the cost of towing and labor at the place of ______________. (a) Ennoblement. (b) Disablement. (c) Permanent. (d) None of the above.

Disablement.

In the DP-1 "Other Coverages": (a) Increase the limits of insurance for each coverage. (b) Do not increase the limits of insurance for each coverage. (c) The policy does not have any "Other Coverages". (d) None of the above.

Do not increase the limits of insurance for each coverage.

This Flood Form is written for 1-4 family dwellings and includes up to 10% of the dwelling amount for detached garages: (a) Dwelling Form. (b) Preferred Risk Policy. (c) General Property Form. (d) Residential Condominium building Association Policy Form.

Dwelling Form.

Personal Auto Policy

Easy-to-read auto policy that provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.

PAP rating usage categories includes all BUT which of the following? (a) Pleasure. (b) Business. (c) Commuting. (d) Educational.

Educational.

Flood insurance is available only for _______ buildings, or _______contents within _______ buildings, and only if the building or contents is located within an ______ community. (a) Permanent. (b) Regular. (c) Eligible. (d) All of the above.

Eligible.

The Business Income coverage option "Agreed Value": (a) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13). (b) Eliminates coinsurance by agreeing to stated value of net income/loss and operating expense. (c) Up to 365 days of Additional Coverage beyond the 30-day extended period. (d) Eliminates coinsurance but limits the coverage to 100 days (applies to extra expense and business income).

Eliminates coinsurance by agreeing to stated value of net income/loss and operating expense.

This PAP endorsement Provides Liability coverage for a non-owned automobile furnished or available for the regular use of the insured. (a) Extended Non-owned Coverage. (b) Miscellaneous Type Vehicle. (c) Drive Other Car. (d) Outdoor vehicle coverage endorsement.

Extended Non-owned Coverage.

This Homeowners policy endorsement provides an additional amount of insurance over and above the stated Coverage A Dwelling amount. (a) Inflation Guard. (b) Building Ordinance or Law. (c) Personal Property Replacement Cost . (d) Extended Replacement Cost.

Extended Replacement Cost.

True of False? The Extra Expense Coverage Form has a 96 hour waiting period.

False, the Extra Expense Coverage Form does not have a waiting period.

Which Commercial Inland Marine policy covers loss to exposed motion picture film, including sound track and properly recorded tapes until production is complete and positive prints are made? (a) Contractors Equipment Floater. (b) Physicians and Surgeons Equipment. (c) Film. (d) Commercial Articles.

Film.

In the BAP Comprehensive covered perils include: (a) Intentional Acts. (b) Nuclear. (c) War. (d) Fire.

Fire.

In the Dwelling Program Coverage A exclusions do NOT include: (a) War. (b) Intentional loss. (c) Fire. (d) Governmental action.

Fire.

Other Than Collision covered perils include? (a) Intentional Acts. (b) Nuclear. (c) War. (d) Fire.

Fire.

The Extended Coverages (EC) do not include: (a) Windstorm. (b) Vehicles. (c) Fire. (d) Smoke.

Fire.

Which of the following is/are an Additional Coverage under Section II of the Homeowners policy: (a) First Aid Expenses . (b) Damage to Property of Brothers. (c) Loss Easement. (d) All of the above.

First Aid Expenses.

Hospital Indemnity Insurance pays a _____ amount per day for hospitalization regardless of expenses or other insurance. (a) Percentage. (b) Flat. (c) Prorated. (d) Deductible.

Flat.

Preferred Provider Organizations (PPO): (a) Provide the insured with comprehensive health services with a focus on managed cost. (b) Care containment. (c) Flexibility. (d) All of the above.

Flexibility.

Peter Preston suffered a permanent total loss in an accident at the theme park he worked for. How will he be compensated for his loss of wages? (a) Florida's Workers' Compensation laws require a permanent total loss to be compensated at 33 1/3% of the employee's average weekly wage. (b) Florida's Workers' Compensation laws require a permanent total loss to be compensated at 66 2/3% of the employee's average weekly wage. (c) Florida's Workers' Compensation laws require a permanent total loss to be compensated at 75 1/2% of the employee's average weekly wage. (d) Florida's Workers' Compensation laws require a permanent total loss to be compensated at 100% of the employee's average weekly wage.

Florida's Workers' Compensation laws require a permanent total loss to be compensated at 66 2/3% of the employee's average weekly wage.

Under Florida's Workers' Compensation laws the definition of an employee requiring coverage includes: (a) Full time, part time and day labor. (b) Full time only. (c) Full time and part time only. (d) None of the above.

Full time, part time and day labor.

This Crime coverage endorsement covers loss due to fraudulent transfer of funds: (a) Extortion. (b) Funds Transfer Fraud. (c) Safe Depository. (d) Guest Property.

Funds Transfer Fraud.

The insuring agreement for Garage Liability states: "We will pay all sums an 'insured' legally must pay as damages because of 'bodily injury' or 'property damage' to which this insurance applies caused by an 'accident' and resulting from '__________'. (a) Commercial General Liability. (b) Business Auto Liability. (c) Employers' Legal Liability. (d) Garage Operations.

Garage Operations.

The Ocean Marine clause which requires ALL parties to share in the proportional loss is? (a) General Average Clause. (b) Free of Particular Average. (c) Sue and Labor. (d) Actual Total Loss.

General Average Clause.

This Flood Form is written for all buildings and/or contents not eligible to be insured under the Dwelling Form: (a) Homeowners Flood Form. (b) Preferred Risk Policy. (c) General Property Form. (d) Residential Condominium building Association Policy Form.

General Property Form.

This Homeowners policy form covers Section I Property on an "open perils" basis: (a) HO-2. (b) HO-3. (c) HO-5. (d) HO-64.

HO-5.

This Health insurance provision provides a period of time after a premium is due and not paid that an insurer must keep the policy in force and accept a late payment: (a) Grace Period. (b) Reinstatement. (c) Waiver of Premium. (d) Elimination Period.

Grace Period.

This Health Insurance coverage continuation provision states the policy is renewable to a stated attained age of the insured (i.e. 65) - premiums can be increased by age or class. (a) Cancellation Clause. (b) Optionally Renewable. (c) Conditionally Renewable. (d) Guaranteed Renewable.

Guaranteed Renewable.

This Crime coverage endorsement covers the named insured's legal liability as custodian of guest property: (a) Extortion. (b) Funds Transfer Fraud. (c) Safe Depository. (d) Guest Property.

Guest Property.

Which type of provider employs medical care providers as direct employees; has small if any deductibles; coinsurance provisions; minimal exclusions; and offers broad coverage? (a) PPO. (b) PIP. (c) HMO. (d) None of the above.

HMO.

Which type of provider is organized by a sponsor who hires physicians and contracts with hospitals to provide care to its members? (a) PPO. (b) PIP. (c) HMO. (d) None of the above.

HMO.

This Homeowners policy form covers Section I Property on a named perils basis: (a) HO-2. (b) HO-3. (c) HO-5. (d) HO-64.

HO-2.

This Homeowners policy form provides "broad" form of coverages: (a) HO-2. (b) HO-3. (c) HO-4. (d) HO-6.

HO-2.

This Homeowners policy form covers Section I Property on a "all risk" basis: (a) HO-2. (b) HO-3. (c) HO-5. (d) HO-64.

HO-3.

This Homeowners policy form insures the Dwelling and Other Structure on with a "special" form cause of loss. (a) HO-2. (b) HO-3. (c) HO-4. (d) HO-6.

HO-3.

This Homeowners policy form insures Renters: (a) HO-2. (b) HO-3. (c) HO-4. (d) HO-6.

HO-4.

The Bureau of Specialty Insurers monitors all BUT which of the following? (a) Hours of operation. (b) Quality of company assets. (c) Market conduct. (d) Licensing.

Hours of operation.

Betty Bloom, your insured, is not a Florida resident; under what circumstances will she be eligible for a FAJUA policy? (a) FAJUA policies are only available to Florida residents. (b) If a non-resident she must have a vehicle registered in Florida. (c) Both A & B. (d) Neither A or B.

If a non-resident she must have a vehicle registered in Florida.

Citizens offers coverage for buildings under construction if: (a) They are of masonry construction. (b) They are three stories or less. (c) If the dwelling will be occupied by the named insured. (d) All of the above.

If the dwelling will be occupied by the named insured.

Medical Payments coverage in the PAP is excluded by all BUT which of the following? (a) If the insured is struck as a pedestrian. (b) Racing or speed contest. (c) Vehicles used as residence. (d) If workers compensation benefits are payable.

If the insured is struck as a pedestrian.

Medical Payments is excluded by all BUT which of the following for injuries while occupying or using? (a) If the insured is struck as a pedestrian. (b) Motorized vehicle with less than four wheels. (c) If workers compensation benefits are payable. (d) Non-permissive use of a vehicle.

If the insured is struck as a pedestrian.

An insured's employee was injured at work while under the influence of illegal drugs. How will the employee's Workers Compensation claim be handled? (a) Illegal drug use is a bar to an employee's claim for Workers Compensation benefits. (b) The claim will be handled as any other claim as long as the employee was on the insured employer's premises. (c) The law does not address: Illegal drug use, intoxication, or intentional acts. (d) The claim will be handled as any other claim as long as the employee was in the course and scope of the employer's business.

Illegal drug use is a bar to an employee's claim for Workers Compensation benefits.

Split Limits

In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims ofall persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits.

Theft

In Crime insurance, a broad term encompassing any unlawful taking of property, but usually meant to exclude employee dishonesty and mysterious disappearance.

Robbery

In Crime insurance, the taking or attempted taking of property by one who has caused or threatened to cause bodily harm or committed and witnessed an obviously unlawful act.

Waiting Period

In Disability or Health insurance, a period of time between issuance and acceptance before sickness benefits begin.

Grace Period

In Health insurance, a period during which the policy will remain in force, if unpaid by the premium due date. Florida law specifies the required length of the grace period. Guaranteed Renewable: A Health insurance policy provision that states that the insurer must renew the policy to a certain age. While the company cannot fail to renew the policy until the specified age, it can increase the premium.

Occurrence

In Liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

Hull Insurance

In Ocean Marine and Aviation insurance, insurance against physical damage to plane or ship.

Protection and indemnity

In Ocean Marine insurance, a form of liability insurance.

Constructive Total Loss

In Ocean Marine insurance, a loss, which occurs when property is not completely destroyed but the cost to salvage or repair the property, would exceed its value.

Physical Damage

In auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody or control.

Comprehensive Coverage

In automobile insurance, a broad physical damage coverage, which covers all property losses except collision and those perils or property, which are specifically excluded.

Principal

In bonds, the party who promises to do (or not to do) a specific thing.

Where can't a Personal Lines Agent transact personal lines property and casualty business? (a) In the personal lines agent's office. (b) Outside of the personal line's agent office. (c) Over the phone to a customer calling from out of state. (d) In person outside of the state of Florida.

In person outside of the state of Florida.

This Crime primary insuring agreement covers loss of money and securities resulting from theft, disappearance, or destruction: (a) Inside The Premises- Theft of Money and Securities. (b) Computer Fraud. (c) Money Orders And Counterfeit Paper Currency. (d) Forgery or Alteration.

Inside The Premises- Theft of Money and Securities.

Which Commercial Inland Marine policy covers loss to property sold on an installment basis? (a) Installment Sales Floater. (b) Signs Form. (c) Electronic Data Processing Insurance. (d) Floor Plan Form.

Installment Sales Floater.

The insuring agreement in a liability policy states that the insurer agrees to pay on behalf of the insured "all sums the insured": (a) Is legally obligated to pay. (b) Has voluntarily paid. (c) Is required by state law to pay. (d) None of the above.

Is legally obligated to pay. (The insuring agreement in a liability policy basically states that the insurer agrees "to pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages.)

You have asked your customer representative to transact insurance business outside of your agency's office. Is this permissible? (a) It is permissible as long as you, the appointing agent, are aware of the outside activities. (b) It is not permissible per F.S. 626.7354. (c) It is permissible as long as the business corresponds to the types of business you, the appointing agent, are licensed to sell. (d) None of the above.

It is not permissible per F.S. 626.7354.

Jean has demonstrated both a lack of technical knowledge and lack of trustworthiness in her dealings as a General Lines Agent. (a) Jean could have her licensed terminated. (b) Jean could not have her licensed terminated for the stated reasons. (c) Lack of technical knowledge does not qualify as a terminating reason. (d) Lack of trustworthiness does not qualify as a terminating reason.

Jean could have her licensed terminated.

___________ is another tool the surety can use to protect itself from loss wherein the surety exercises joint control over assets with the principal. (a) Suretyship. (b) Obligatory. (c) Joint Control. (d) Actualization.

Joint Control.

Twisting is: (a) The failure to maintain proper complaint handling procedures. (b) Knowingly making any misleading representations as an inducement. (c) Both A & B. (d) Neither A or B.

Knowingly making any misleading representations as an inducement.

Unfair discrimination includes: (a) Knowingly making or permitting any unfair discrimination between individuals of the same actuarially supportable class. (b) Knowingly making or permitting any actuarially supportable distinctions between individuals. (c) Knowingly charging more for any actuarially supportable distinctions between individuals. (d) Knowingly precluding coverage for any actuarially supportable distinctions between individuals.

Knowingly making or permitting any unfair discrimination between individuals of the same actuarially supportable class.

Under the No Fault law all BUT which of the following are defined as an owner? (a) Debtor in possession. (b) Lessee. (c) Non-permissive user. (d) Holder of legal title.

Lessee.

The Crime policy Discovery Form covers: (a) Losses that both occurred and were discovered during the policy period, or within four years of its expiration. (b) Losses discovered during the policy period or within 60 days after its expiration are covered regardless of when the loss occurred. (c) Both A & B. (d) Neither A or B.

Losses discovered during the policy period or within 60 days after its expiration are covered regardless of when the loss occurred.

What does "limited cooking" mean regarding BOP eligibility? (a) Means that food preparation does not require the installation of exhaust or dry-chemical extinguishing systems. (b) Means food preparation requires a limited dry-chemical extinguishing systems. (c) Means food is not prepared on a full time basis. (d) Means the restaurants is take-out only.

Means that food preparation does not require the installation of exhaust or dry-chemical extinguishing systems.

Your insured has asked what Mechanical Breakdown Insurance covers. You advise... (a) Mechanical Breakdown provides labor from the point of disablement. (b) Mechanical Breakdown provides Towing from the point of disablement. (c) Mechanical Breakdown provides coverage against the failure of an original part. (d) Both A & B.

Mechanical Breakdown provides coverage against the failure of an original part.

The PAP policy territory includes all but which of the following? (a) United States. (b) Mexico. (c) Puerto Rico. (d) Canada.

Mexico.

Mrs. Beckley, your Homeowners insured, has contacted you to file a liability claim as an invitee to her home tripped over an extension cord and hit their head on a table. She also has advised you that she spent $100 of first aid for Mrs. Beckley. How will you respond? (a) Mrs. Beckley that is very nice of you but there is no coverage for reimbursement of those expenses. (b) Mrs. Beckley you should not have done that as you may have prejudiced the insurance company in its investigation. (c) Mrs. Beckley, First Aid Expenses are reimbursable please submit copies of any receipts to the insurance company.

Mrs. Beckley, First Aid Expenses are reimbursable please submit copies of any receipts to the insurance company.

Toe Nail roof connectors: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.

Not eligible for mitigation credits.

Bailee

One who has temporary custody of property belonging to another. (Example: dry cleaners.)

Bodily Injury and Property Damage are EXCLUDED by all BUT which of the following under the BOP policy? (a) Defects and Delays. (b) Ordinary Negligence. (c) Pollution. (d) Employee injuries.

Ordinary Negligence.

Personal Property Floater

Personal Inland Marine Floater, which provides "all risk" coverage on unscheduled personal property.

Specific Insurance

Property specifically listed and covered for a specific amount. Also called Scheduled coverage.

The Crime form's valuation is: (a) RCV only. (b) ACV. (c) RCV or the Cost to repair. (d) None of the above.

RCV or the Cost to repair.

The Valuation Clause condition states coverage is? (a) On an object can be suspended if the object is "in" or "exposed to" a dangerous condition. (b) RCV unless repair or replacement is not made within 18 months of the date of accident. (c) Both A & B. (d) Neither A or B.

RCV unless repair or replacement is not made within 18 months of the date of accident.

Which of the following is not typically a "credit" or "discount" in the PAP? (a) Good Student. (b) Multi-car. (c) Radar Detection Unit. (d) Anti-theft Device.

Radar Detection Unit.

Unstacked Uninsured Motorists must be offered at? (a) Increased Rates. (b) Reduced Rates. (c) Excess Rates. (d) Primary Rates.

Reduced Rates.

Actual Cash Value - ACV

Replacement Cost less applicable depreciation

The Citizens HO-3 policy has endorsements for: (a) Home day care. (b) Personal injury. (c) Scheduled personal property. (d) Replacement cost on contents.

Replacement cost on contents.

Exclusions in the Boiler and Machinery include all BUT which of the following? (a) Depletion and Deterioration. (b) Corrosion and Erosion. (c) Rupture and Collapse. (d) Wear and Tear.

Rupture and Collapse.

Automobile insurance rates are lowest when the territory class is? (a) Urban. (b) Suburban. (c) Rural/Farm. (d) International

Rural/Farm.

The insured has borrowed her neighbor's lawnmower to cut her grass. She has accidentally run over two sprinkler heads destroying the heads and breaking her neighbor's lawn mower. How will Section II of the Homeowners policy respond? (a) Section II will pay for the sprinkler heads and the lawn mower. (b) Section II will pay up to $1,000 for property damaged while in the care, custody, and control of the insured. (c) Section II excludes all property of others in the insured's care, custody, and control. (d) Section II will pay up to $2,500 for property damaged while in the care, custody, and control of the insured.

Section II will pay up to $1,000 for property damaged while in the care, custody, and control of the insured.

Which bond is used to guarantee the Principal's compliance with an insurance requirement? (a) Public Official Bond. (b) Self-Insurance Bond. (c) Blue Sky Bond. (d) Customs Bond.

Self-Insurance Bond.

Which Commercial Inland Marine policy covers loss to fluorescent, automatic or mechanical electrical signs? (a) Installment Sales Floater. (b) Signs Form. (c) Electronic Data Processing Insurance. (d) Floor Plan Form.

Signs Form.

Ocean Marine Cargo coverage is written on... (a) Single Risk Form. (b) Multiple Form. (c) Both A & B. (d) Neither A or B.

Single Risk Form.

Which bond guarantees the Principal's installation of contracted streets, sidewalks, sewers, streetlights and other infrastructure in a subdivision? (a) Payment Bond. (b) Maintenance Bond. (c) Subdivision Bond. (d) None of the above.

Subdivision Bond.

Hospital Indemnity Insurance is a ________ to other insurance. (a) Competitor. (b) Supplement. (c) Liability. (d) All of the above.

Supplement.

Greg's Garage and Auto Emporium customarily services, repairs, stores, parks, and otherwise attends customer's automobiles in the normal course and scope of their operations. What symbol must be used to ensure the insurance company will "pay those sums that the insured legally must pay"? (a) Symbol 21. (b) Symbol 23. (c) Symbol 25. (d) Symbol 30.

Symbol 30.

Which Symbol in the Truckers policy form covers "any owned auto"? (a) Symbol 41. (b) Symbol 42. (c) Symbol 48. (d) Symbol 49.

Symbol 41.

Mrs. Brown has contacted to ask how much coverage her Homeowner's policy has for theft of firearms as she is considering purchasing a gun collection. How will you advise her? (a) Tell Mrs. Brown that firearms are excluded on the policy. (b) Tell Mrs. Brown that the policy covers up to $1,000 for theft of firearms. (c) Tell Mrs. Brown that the basic policy covers up to $2,500 for theft of firearms. (d) Tell Mrs. Brown that the policy covers up to $10,000 for theft of firearms.

Tell Mrs. Brown that the basic policy covers up to $2,500 for theft of firearms.

Prime Printing Plus, your Workers Compensation insured, has called you to ask how much coverage is afforded under their policy for an employees funeral expenses for a compensable Workers Compensation claim. How will you advise your client? (a) Tell the client that the Workers Compensation claim terminates at the death of an employee. (b) Tell the client that there is no maximum amount as long as funeral expenses are usual, customary, and reasonable. (c) Tell the client that there is a maximum of $7,500 for actual funeral expenses. (d) Tell the client that there is a maximum of $15,000 for actual funeral expenses.

Tell the client that there is a maximum of $7,500 for actual funeral expenses.

What Farm Policy coverage protects a Farmer for injuries sustained by farm employees? (a) The Farm Employers' Liability/Medical Payments coverage. (b) Workers Compensation. (c) Commercial General Liability. (d) Farm Employee Injury Fund.

The Farm Employers' Liability/Medical Payments coverage.

By listing the Loss Payee on the PAP's Declarations page. (a) The Loss Payee is solely paid for losses incurred under Coverage D. (b) The Loss Payee's collateral is protected. (c) Both A & B. (d) Neither A or B.

The Loss Payee's collateral is protected.

In the CGL who must pay premiums and is also the party who receives any return or refundable premium? (a) Any Named Insured. (b) Any Loss Payee or Mortgagee. (c) The First Named Insured. (d) The Lessor if the policy is subject to a lease.

The First Named Insured.

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.

Your insured has borrowed his brother's golf clubs. While the insured is enjoying a cold beverage after his round of golf at the clubhouse his brother's golf clubs are stolen. How will the Homeowners policy respond to this loss? (a) No coverage for the stolen clubs as they were away from the residence premises. (b) No coverage for the stolen clubs as they were not owned by the insured. (c) The clubs are covered but up to the maximum limit of $1,000 for "sporting equipment, musical equipment, and competition equipment". (d) The clubs are covered as they were in the care custody and control of the insured.

The clubs are covered as they were in the care custody and control of the insured.

Replacement Cost

The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.

Mr. Whiskers, your Homeowners insured, has a student at college that does not meet the age requirement to be insured under the Homeowners policy. What can you suggest to help Mr. Whiskers? (a) The insured can endorse the student as an insured onto the policy. (b) There is no remedy for this situation. (c) There is no age maximum for consideration as an insured for a student away at college. (d) None of the above.

The insured can endorse the student as an insured onto the policy?

How can an insured cover their liquor liability as part of their ongoing operations (i.e. a bar)? (a) The CGL already covers liquor liability in the policy form. (b) The insured can take out a Liquor Liability Coverage form/policy. (c) There is no available insurance coverage for the exposure to liquor liability. (d) The insured can take out a Beer, Wine, and Distilled Spirits endorsement to the CGL.

The insured can take out a Liquor Liability Coverage form/policy.

Limits of Liability

The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.

Michele Spicer suffered a lightning strike at her residence damaging most of her electronic equipment. She has a Homeowners policy with the Replacement Cost Endorsement on Personal Property. Michele was paid the Replacement Cost for all of her electronics less the applicable depreciation. Four months later Michele replaced all of the equipment and placed the insurance company on notice of the replacement. How will the insurer respond? (a) The insurer will pay Michele the amount previously deducted for depreciation. (b) The insurer will pay Michele nothing as an insured has only 60 days after the notice of loss to submit receipts for replacement as a valuation method to apply. (c) The insurer will pay Michele nothing as an insured has only 90 days after the notice of loss to submit receipts for replacement as a valuation method to apply. (d) Replacement cost by definition is cost of replacement less applicable depreciation.

The insurer will pay Michele the amount previously deducted for depreciation.

Surety

The party (often the insurance company), which agrees to be responsible for loss, which may result if the principal does not keep his promise.

Under Florida's Workers' Compensation laws medical maximum improvement is: (a) The starting point of recovery. (b) The middle point of recovery. (c) he total process of recovery. (d) The point of recovery or rehabilitation beyond which no further improvement is expected to be realized by the injured employee.

The point of recovery or rehabilitation beyond which no further improvement is expected to be realized by the injured employee.

Subrogation

The transfer to the insurance company of the insured's right to collect for damages.

Waiver

The voluntary or intentional relinquishment of a known right. A waiver may be expressed or implied.

Concealment

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

Your insured has asked which coverage they can obtain to cover the cost of towing or labor if their vehicle becomes incapacitated. Your recommendation is? (a) Transportation Expense. (b) Miscellaneous Type Vehicle Endorsement. (c) Extended Non-owned Coverage. (d) Towing and Labor.

Towing and Labor.

True of False: In the CGL if the named insured is a limited liability company, the members and managers are insureds in the status as such.

True.

True or False? According to Florida Statute 624.09 an "authorized" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.

True.

True or False? The Loss Sustain Crime coverage form will cover a loss which occurred prior to its inception if: (a) reported during the policy term; and (b) there was no interruption between the previous policy term and the current policy.

True.

True or False? The PAP excludes Part D coverage if the covered auto is destroyed or confiscated by governmental or civil authorities.

True.

True or False? The Personal Inland Marine policy covers Golfer's Equipment on a blanket basis.

True.

Kennedy Johnson was injured in an accident that was Fred Berry's fault. Fred did not carry any insurance on his vehicle. Kennedy was in the course and scope of his employment at the time of the accident. He has collected against his employer's Workers Compensation carrier, which of the following apply? (a) Kennedy can collect against his UM coverage. (b) Kennedy can collect against his PIP and UM. (c) Kennedy can collect against his PIP, Medical Payments, and UM. (d) UM is not available to Kennedy if he has collected for his injuries with his employer's Workers Compensation.

UM is not available to Kennedy if he has collected for his injuries with his employer's Workers Compensation.

Definition(s) of total disability in a DI policy include: (a) Complete ability to do any work. (b) Ability to work in an occupation for which the insured is qualified by reason of education, training or experience. (c) Unable to perform the duties of his or her own occupation. (d) All of the above.

Unable to perform the duties of his or her own occupation.

According to Florida Statute 624.09 an "_______" insurer is one which does not have a certificate of authority issued by the department to transact insurance in this state. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Unauthorized.

An "_______" insurer is one which DOES NOT have a certificate of authority issued by the department to transact insurance in this state. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Unauthorized.

Loss of Use Coverage

Under the Homeowner's policy, covers the insured's increased cost of living after loss and rental value of any portion of the dwelling, which is rented out.

Perils Of The Sea

Unique perils to which property in transit by water is exposed. Includes unusual action of wind or waves, stranding, lightning, collision and sinking.

Under Florida's Workers' Compensation laws the obligation of the employer is to furnish any and all usual, customary, and reasonable medical care with ____________ dollar limitation for medical expenses. (a) $1,000,000. (b) $2,000,000. (c) $5,000,000. (d) Unlimited for medical expenses.

Unlimited for medical expenses.

Bodily Injury

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

Deductible

Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. See also Franchise, Percentage and Straight Deductibles.

This Health insurance provision waives premiums if the insured becomes totally disabled but the policy remains in force: (a) Double Indemnity. (b) Reinstatement. (c) Waiver of Premium. (d) Elimination Period.

Waiver of Premium.

The Commercial Property policy's Optional Coverage "Agreed Value": (a) Increases coverage throughout policy term on a pro-rata basis . (b) Waives the Coinsurance condition . (c) States policy will pay for replacement of new building. (d) None of the above.

Waives the Coinsurance condition.

The insured has asked if Nuclear and War losses are covered in the Crime policy form as the policy is written on an "all risks" basis. Your response is? (a) War and Nuclear are covered as the policy is written on an "all risk" basis. (b) War and Nuclear are covered as primary insuring agreements in the Crime policy form. (c) No coverage in the Crime policy form as Nuclear and War are specifically excluded. (d) None of the above.

War and Nuclear are covered as primary insuring agreements in the Crime policy form.

This Boiler and Machinery endorsement increases the Water Damage limit from $25,000 to a defined higher limit: (a) Limited Coverage Endorsement. (b) Actual Cash Endorsement. (c) Additional Expediting Expense Endorsement. (d) Water Damage Endorsement.

Water Damage Endorsement.

Accidents in the Boiler and Machinery policy include all BUT which of the following? (a) Overheating and Burning. (b) Cracking and Bulging. (c) Wear and Tear. (d) Rupture and Collapse.

Wear and Tear.

On the PAP's declarations page what does the inception date tell us? (a) When a policy begins. (b) When a policy ends. (c) The number of days in the policy. (d) The number of months in the policy.

When a policy begins.

Medical Payments coverage provides payment? (a) Based upon negligence. (b) If the insured is legally liable. (c) Without regard to fault or legal liability. (d) All of the above.

Without regard to fault or legal liability.

Crime coverage "Computer Fraud" covers: (a) Loss of money and securities resulting from theft, disappearance, or destruction. (b) Worldwide coverage of loss of money, securities and other property by use of a computer to fraudulently convert assets. (c) Loss resulting from receiving payment with counterfeit currency or money orders. (d) None of the above.

Worldwide coverage of loss of money, securities and other property by use of a computer to fraudulently convert assets.

Coverage through the FAJUA is: (a) Brokered by agents. (b) Written by agents with appointments. (c) Written by exclusive career FAJUA agents. (d) None of the above.

Written by agents with appointments.

Your insured has suffered a cracked windshield and is concerned that his $1000 Comprehensive deductible exceeds the cost of replacing the windshield. How will you advise your client? (a) You advise your client that windshield glass is paid first dollar and no deductible applies. (b) You agree with your client but advise them that the $1000 Comprehensive deductible is per year and the windshield loss will count towards meeting the deductible. (c) You advise that glass losses are paid under the Collision coverage and you refer your client to their Collision deductible. (d) None of the above.

You advise your client that windshield glass is paid first dollar and no deductible applies.

You advise an insured that their PAP provides supplementary payments such as bail bonds and pre-trial interest... (a) You have incorrectly advised your client concerning these supplementary payments. (b) You have correctly advised you client as the PAP does provide supplementary payments for bail bonds and pre-trial interest. (c) There are no supplementary payments in the PAP. (d) None of the above.

You have correctly advised you client as the PAP does provide supplementary payments for bail bonds and pre-trial interest.

FIGA is a statutorily created association that pays certain outstanding claims of __________ insurance companies. (a) insolvent. (b) domestic. (c) alien. (d) excess and surplus.

insolvent.

True of False? Workers Compensation is rated per $1,000 of payroll per class.

False.

Exclusions under Part D Physical Damage include all BUT which of the following? (a) Awnings or cabanas used for additional living facilities. (b) Radar detectors. (c) Camper bodies shown on the Declarations Page. (d) Trailers not shown on the Declarations Page.

Camper bodies shown on the Declarations Page.

This Health Insurance coverage continuation provision provides 20 days written notice to the named insured is required by Florida: (a) Cancellation Clause. (b) Optionally Renewable. (c) Conditionally Renewable. (d) Guaranteed Renewable.

Cancellation Clause.

In the CGL BERP covers gaps caused by: (a) Cancelled or non-renewed policies. (b) Policies renewed with retroactive dates earlier than the date stated in the prior year's Declarations. (c) Policy renewed with a claims made policy. (d) None of the above.

Cancelled or non-renewed policies.

The FAJUA is a residual market for individuals who: (a) Can obtain automobile insurance in the private - competitive market but seek a lower premium. (b) Cannot obtain automobile insurance in the private - competitive market. (c) Can obtain automobile insurance in the private - competitive market but seek broader coverage. (d) None of the above.

Cannot obtain automobile insurance in the private - competitive market.

Major Medical Insurance is constructed to cover what types of losses? (a) Routine loss. (b) Catastrophic loss. (c) Smaller loss. (d) Intentional injury.

Catastrophic loss.

Your insured wants to make a change to her CGL policy you advise her that: (a) Changes cannot be made during the policy term. (b) Changes cannot be made ever and she will have to take out another policy. (c) Changes can be made by endorsement and must be agreed to by the insurance company. (d) None of the above.

Changes can be made by endorsement and must be agreed to by the insurance company.

The 4 Cs of surety underwriting are: (a) Character, capital, capacity, and collateral. (b) Character, corporate, capacity, and collateral. (c) Character, capital, chartered, and collateral. (d) None of the above.

Character, capital, capacity, and collateral.

An agent has sold an insured a replacement policy with the sole purpose of earning an additional commission. This is known as: (a) Rebating. (b) Premiuming. (c) Churning. (d) All of the above apply.

Churning.

An insured's ability to maintain their agent of choice was enacted into law by which of the following? (a) Agent Choice statute. (b) Insurer Choice statute. (c) Citizens Choice statute. (d) Consumer Choice statute.

Citizens Choice statute.

The naming of a Loss Payee on the PAP Declarations ensures? (a) Problems for the insured. (b) Problems for the Loss Payee. (c) Claims payments under Coverage D will be paid jointly to both named insured and Loss Payee. (d) Claims payments under Coverage D will only be paid to the named insured.

Claims payments under Coverage D will be paid jointly to both named insured and Loss Payee.

Controlled Lines

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

Appraisal Clause

Clause, which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose appraisers, who, failing to agree, select an umpire. Agreement of any two of the three will be decisive.

The Employment Related Practices Liability policy form includes a: (a) Franchise Deductible. (b) Co-payment provision. (c) Self Insured Retention. (d) None of the above.

Co-payment provision.

Ocean Marine Liability covers... (a) Collision with another ship. (b) Property damage to any other property. (c) Both A & B. (d) Neither A or B.

Collision with another ship.

This coverage covers upset and/or overturn with another vehicle or object: (a) Other Than Collision. (b) Specified Perils. (c) Open Perils. (d) Collision.

Collision.

Your insured has had a one vehicle accident with a tree. Which coverage is the physical damage to the insured's vehicle covered by? (a) Other Than Collision. (b) Specified Perils. (c) Collision. (d) None of the above.

Collision.

Your insured has had a one vehicle accident with the roadbed. Which coverage is the physical damage to the insured's vehicle covered by? (a) Other Than Collision. (b) Specified Perils. (c) Collision. (d) None of the above.

Collision.

Your insured in involved in a multi-vehicle accident. Which coverage is the physical damage to the insured's vehicle covered by? (a) Other Than Collision. (b) Specified Perils. (c) Collision. (d) None of the above.

Collision.

Uncontrolled Lines

Commercial Inland Marine coverages, which are not standardized.

What are the two standard forms for packaged policies? (a) Commercial Package Policy and the Business Owners Policy. (b) Commercial Package Policy and the Monoline Business Policy. (c) Consolidated Package and Simplified Package. (d) Business Package and Multi-Package Business.

Commercial Package Policy and the Business Owners Policy.

True or False? Radar detectors are covered under Part D of the PAP if they are scheduled.

False.

True or False? Replacement Cost is the valuation method on the building dwelling in the DP-1, DP-2, and DP-3.

False.

True or False? The CGL has different claims triggers for Coverage A Bodily Injury and Property Damage AND Coverage B Personal and Advertising Injury.

False.

True or False? The CGL's Supplemental Payments provide up to $300 per day for loss of earning for time taken off of work in the investigation or defense of an insured's claim.

False.

True or False? The Claims Made CGL policy form applies only to Bodily Injury or Property Damage claims which occur on or before the "retroactive date ".

False.

True or False? The Crime Policy Forms include a Severability of Insureds Clause which permits recovery by all insureds not responsible for the loss.

False.

True or False? The Custom Farming Endorsement covers Liability and Medical Payments coverages to injuries to farm employees.

False.

True or False? The Homeowners program is suitable for insuring a working farm.

False.

True or False? The Permit Bond is used to protect the general public against unlicensed contractors and unfair business practices.

False.

True or False? The Personal Articles Floater is used to insure only one class of scheduled property.

False.

True or False? The Preferred Risk Flood Policy is available in the Emergency Program.

False.

True or False? The Small Business forms limit coverage to 90% of building replacement cost

False.

True or False? The Special Form Cause of Loss form insures on a "stated perils" basis.

False.

True or False? The garaging territory is not a rating factor in the BAP.

False.

True or False? The gross vehicle weight eligible under the PAP is 20,000 pounds?

False.

True or False? The naming of a Loss Payee on the PAP Declarations ensures: claims payments under Coverage D will be paid to the named insured only.

False.

True or False? There are no elimination periods in the Disability Income policy.

False.

True or False? Towing and Labor is an included coverage for all policies which carry Other Than Collision and Collision coverage.

False.

True or False? Transportation Expense (TE) coverage does not require Other Than Collision or Collision coverage to be provided by an insured's policy for the TE coverage to be in effect.

False.

True or False? Vehicles in the Garage Policy are designated using an "alphabetical" nomenclature.

False.

True or False? Forbearance is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

False. (Insurance is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.)

True or False? An insurance policy can be assigned to another party if the insured decides to do so?

False. (Insurance policies are "personal contracts" and cannot be assigned to another party without specific written agreement with the insurance company. In nearly all instances policies are not as a practical matter assignable.)

True of False? The "change of financial loss" refers to the concept of Adhesion.

False. (The "change of financial loss" refers to the concept of Risk.)

True or False? The rule of law is that contracts of adhesion are subject to having any ambiguities resolved in favor of the insurance company.

False. (The rule of law is that contracts of adhesion are subject to having any ambiguities resolved in favor of the insured.)

Can the Homeowners policy cover farm or farming exposures? (a) No, farm and farming exposures are explicitly excluded. (b) Farm exposures are excluded BUT the Homeowners policy can be used to cover incidental non-commercial farming. (c) Yes, the Homeowners policy explicitly covers commercial and incidental farming. (d) Farm exposures are not address in the Homeowners policy.

Farm exposures are excluded BUT the Homeowners policy can be used to cover incidental non-commercial farming.

Annual Transit Policy

Inland Marine policy which protects the insured (property owner) for goods being transported

True of False? The Farm Liability coverage form covers personal and advertising injury.

True.

True of False? The HO-3 loss settlement provision for personal property can be endorsed to replacement cost.

True.

True of False? The PAP's Liability coverage requires the insurer to provide a defense for the insured up to the policy limits.

True.

True of False? The Public Official Bond is used to guarantee the Principal's acts in his/her capacity as a public official.

True.

True of False? The Special Form DP-3 covers building structures on an "open peril" basis.

True.

True of False? Under Florida's Workers' Compensation laws a sole proprietor or partner may elect to be covered by filing the proper election form with the Division.

True.

True of False? Under Florida's Workers' Compensation laws the obligation of the employer is to furnish any and all usual, customary, and reasonable medical care without dollar limitation to the injured employee.

True.

True of False? Uninsured Motorist coverage applies if the at fault parties insurer is SOLVENT.

True.

True of False? Uninsured Motorist coverage applies if the insured is hit by a hit and run motorists.

True.

True of False?: The Indemnity Bond is used to indemnify a governmental body for liability imputed to it by the negligence of the Principal.

True.

True or False: Supplemental Payments are payable in addition to the CGL's policy limits.

True.

True or False? "Who Is An Insured" as defined by the CGL is determined by the legal structure of the insured's organization?

True.

True or False? A Loss Payee on the PAP's Declarations is one who has an economic interest in an insured vehicle.

True.

True or False? A component of ethics is having the technical knowledge to facilitate transactions on behalf of the insuring public.

True.

True or False? A customer representative can, under the supervision of the supervising General Lines Agent, and ONLY at that Agent's principal place of business, conduct customer representative work that assists or supports other agents.

True.

True or False? A customer representative may only perform customer representative duties as to the specific general lines insurance products which their supervising, General Lines Agent, is actually then appointed by an insurer to handle.

True.

True or False? A trailer interchange agreement among common carriers is an arrangement whereby one trucker will transfer a trailer containing a shipment to a second trucker to transport the trailer to its destination (which is sometimes delivery of the trailer to yet another trucker).

True.

True or False? All business transacted by a customer representative under his or her license shall be in the name of your agent or agency license by which the customer representative is appointed.

True.

True or False? All classes of commercial risk are eligible for a CPP.

True.

True or False? An "alien" insurer is an insurer other than a domestic or foreign insurer.

True.

True or False? An "authorized" insurer is one with an authorized CERTIFICATE OF AUTHORITY issued by the department to transact insurance in this state.

True.

True or False? An insured injured by an uninsured motorists is entitled to the broadest coverage for any insured vehicle of his auto policy's UM coverages.

True.

True or False? An insured's Collision coverage covers loss from the collision, upset, or overturn of an insured vehicle.

True.

True or False? An insurer has 30 days from receiving formal notice from an insured to return the insured's pro-rata premium.

True.

True or False? Animal Liability is EXCLUDED in the personal lines Citizens policy form.

True.

True or False? Broad Form DP-2 includes all the available coverages of DP-1 (Fire, EC and VMM) and adds additional perils.

True.

True or False? Building ordinance or law may be increased beyond the 10% limit on DP-2 or DP-3.

True.

True or False? Business income provides coverage to offset the business income loss associated with damage to the insured's business due to a covered

True.

True or False? Certification of financial responsibility is filed on behalf of an insured's by his/her insurance company using Form SR-22 certifying that coverage is in effect.

True.

True or False? Claims expenses are part of the liability limits in the Lawyers Professional Liability coverage form not in addition to them.

True.

True or False? Commercial Excess Liability does not include broadened coverage.

True.

True or False? Comprehensive coverage provides the insured broader coverage than Specified Causes of Loss coverage in the BAP.

True.

True or False? Crime coverage on a Discovery basis will cover a loss which occurred prior to its inception if reported during the policy term.

True.

True or False? Ethics is the study of moral behavior and is the cornerstone of professionalism in the insurance industry.

True.

True or False? Every General Lines Agent transacting any insurance policy must maintain in his or her office, or have readily accessible by electronic or photographic means, such records of policies transacted by him or her.

True.

True or False? Excess Liability requires an underlying policy or coverage but an Umbrella does not.

True.

True or False? First Aid Expenses are reimbursable under Section II Liability of the Homeowners insurance policy.

True.

True or False? Florida Statute requires policies which provide RCV to pay the full RCV without holdback for depreciation notwithstanding the repair or replacement of damaged property.

True.

True or False? Florida Statutes prohibit PEOs from sponsoring self-insured health plans.

True.

True or False? Florida Statutes requires Homeowners Insurance Companies to pay full replacement cost regardless of repair or replacement if the policy has replacement cost as the valuation method.

True.

True or False? Florida law mandates first dollar coverage in the adjustment of windshield glass claims.

True.

True or False? Florida law requires General Lines Agents to be licensed.

True.

True or False? Florida law requires a liability insurer to disclose full policy information to a claimant upon written request.

True.

True or False? Florida statute prohibits rebating except as otherwise expressly provided by law, or in an applicable filing with the office of insurance.

True.

True or False? General Lines Agents with 6 YEARS OR MORE EXPERIENCE are required to obtain 20 hours of continuing education every two years

True.

True or False? General Lines Agents with LESS THAN 6 YEARS are required to obtain 24 hours of continuing education every two years

True.

True or False? In a Health Insurance policy the written application becomes part of the policy?

True.

True or False? In the BAP damage from a falling object or missile to an insured vehicle is treated under Comprehensive coverage.

True.

True or False? In the Business Auto Policy PIP, UM, and Medical Payments must be added by endorsement.

True.

True or False? In the CGL "Advertising Injury" covers injury for oral or written libel, slander, or defamation; publication resulting in an invasion of privacy; misappropriation of advertising ideas or style; and infringement of copyright, title, or slogan.

True.

True or False? In the CGL "Personal Injury" covers injury other than bodily injury for oral or written libel, slander, or defamation; publication resulting in an invasion of privacy; misappropriation of advertising ideas or style; and infringement of copyright, title, or slogan..

True.

True or False? In the Commercial Property Insurance coverage form Building coverage includes materials, equipment, and supplies within 100 feet of the premises.

True.

True or False? In the Commercial Property coverage form "Debris Removal" is covered up to 25% of the amount of the covered loss for debris removal.

True.

True or False? In the Commercial Property policy Subrogation can be waived?

True.

True or False? In the Homeowners policy "Additional Coverages" Trees, shrubs, and plants are covered up to 5% of Coverage A.

True.

True or False? In the Homeowners policy hurricane deductibles apply on an annual basis rather than a per occurrence basis.

True.

True or False? In the Homeowners policy permitted incidental business pursuits can be covered by endorsement.

True.

True or False? In the Homeowners policy the "Additional Coverages" Association Loss Assessment coverage is $1,000.

True.

True or False? Indemnity is the principle of insurance 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.

True.

True or False? Insurance may be placed into effect, or "bound," prior to issuance of a policy contract.

True.

True or False? Limited Form Theft may be written on an owner occupied or tenant occupied exposure.

True.

True or False? Mechanical Breakdown coverage is conditioned upon proper cleaning, servicing, and notice of loss.

True.

True or False? Medical Payments coverage is issued on an excess basis to coordinate with PIP?

True.

True or False? Medicare Supplement Insurance provides coverage for the gaps, deductibles, exclusions, and coinsurance in Federal Medicare.

True.

True or False? Most insurance related needs are met by private insurance companies offering insurance products in a competitive insurance marketplace commonly referred to as the "voluntary market".

True.

True or False? Non-residents who are not required to register their vehicles in Florida ARE subject to the No-Fault law if they have a motor vehicle physically present in Florida for more than 90 of the preceding 365 days.

True.

True or False? Not-In Motion Coverage: covers while the aircraft is not in motion.

True.

True or False? Other Than Collision coverage can be taken out without purchasing Collision coverage BUT Collision coverage cannot be taken out without purchasing Other Than Collision coverage.

True.

True or False? PPOs provide the insured with comprehensive health services with a focus on managed care, cost containment, and flexibility.

True.

True or False? Part E of the PAP requires the insured to cooperate and to protect against any further loss.

True.

True or False? Personal Liability can be written on a stand alone policy or as part of a Dwelling Policy.

True.

True or False? Physicians Coverage reimburses an insured for non-surgical care provided by a physician.

True.

True or False? Specific classes of property can be covered in an Inland Marine policy or scheduled in a Homeowners policy.

True.

True or False? The BOP covers property in the care, custody, and control of the insured for which the insured is legally liable.

True.

True or False? The BOP's liability coverage applies on a per occurrence basis.

True.

True or False? The Broad Form Causes of Loss includes coverage for water damage from accidental discharge or leakage of water or steam.

True.

True or False? The CGL Occurrence Form does not require that a claim be made during the policy term in which the bodily injury or property damage took place.

True.

True or False? The CGL has the same claims triggers for Coverage A Bodily Injury and Property Damage AND Coverage B Personal and Advertising Injury.

True.

True or False? The Commercial Property Insurance Mortgagee Clause states that acts of an insured are not bars to recovery by the Mortgagee.

True.

True or False? The Commercial Property Insurance policy requires a 10 day notice for non-payment of premium.

True.

True or False? The Crime policy is excess over any other insurance.

True.

True or False? The Custom Farming Endorsement covers liability for the insured's paid farming operations for another farm's operation.

True.

True or False? The Dwelling policy's Coverage A Dwelling includes additions in contact with the dwelling building.

True.

True or False? The Farm Employers' Liability/Medical Payments Endorsement covers Liability and Medical Payments coverages to injuries to farm employees.

True.

True or False? The Florida statutory definition of Health insurance includes Disability insurance.

True.

True or False? The HO-6 can be taken out by a condo owner for either their own occupancy or tenant occupancy of the condominium.

True.

True or False? The commercial auto manual defines a "trucker" as a person, firm or corporation in the business of transporting goods, materials or commodities for another.

True.

True or False? The farm exposure has both individual and business exposure.

True.

True or False? The naming of a Loss Payee on the PAP Declarations ensures: claims payments under Coverage D will be paid jointly to both named insured and Loss Payee.

True.

True or False? The workers' compensation system in Florida is based on a mutual renunciation of common-law rights and defenses.

True.

True or False? There are elimination periods in the Disability Income policy.

True.

True or False? Transportation Expense coverage applies only if Other Than Collision and Collision coverage is provided by an insured's policy.

True.

True or False? Under Florida's Workers' Compensation laws an independent contractors must meet stated criteria to be classified as independent contractors.

True.

True or False? Under Florida's Workers' Compensation laws once an officer's exemption is approved, that person is no longer counted as an employee in determining whether a firm must carry compensation.

True.

True or False? Under Florida's Workers' Compensation laws permanent impairment is paid based upon a medical impairment rating schedule.

True.

True or False? Under the No Fault law a motor vehicle is defined as a self-propelled vehicle with four or more wheels which are of a type both designed and required to be licensed for use on Florida highways.

True.

True or False? Uninsured Motorists (UM) coverage pays compensatory damages for bodily injuries for amounts which otherwise should have been recovered from the liability insurance of another.

True.

True or False? Uninsured Motorists coverage does not apply towards punitive or exemplary damages.

True.

True or False? When compensating a customer representative their salary shall not include commissions and shall not be primarily based on the production of applications, insurance, or premiums.

True.

True or False? Willfully over insuring a health or property policy can be grounds for terminating an insurance license.

True.

True or False? Workers Compensation rating is based on the classification of the employment by class code.

True.

True or False?: The Running Down Clause is the insuring agreement for liability to other ship-owners.

True.

True of False? A single policy may provide both property and liability insurance coverages.

True. (A single policy may provide both property and liability insurance coverages.)

True or False: The Bureau of Market Conduct protects the public from unethical insurance practices.

True. The Bureau of Market Conduct protects the public from unethical insurance practices.

True or False? Florida's Valued Policy Law (F.S.627.720) states: If there is a total loss by a covered peril to a structure, the insurer must pay the amount stated in the policy for which premium has been paid.

True. The Florida's Valued Policy Law F.S.627.720 states: If there is a total loss by a covered peril to a structure, the insurer must pay the amount stated in the policy for which premium has been paid.)

In the Commercial Property Insurance policy form Building coverage includes materials, equipment, and supplies within ____ feet of the premises. (a) 50. (b) 100. (c) 500. (d) 1000.

100 feet.

Florida law requires ___ days of notice for non-renewal of a Homeowners policy. (a) 10. (b) 30. (c) 45. (d) 100.

100.

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage she will have for jewelry. You tell her she will have $____ coverage. (a) $500. (b) $1,500. (c) $5,000. (d) $10,000.

$1,500.

The HO-2 named perils include: (a) Vehicles, Smoke, Vandalism, and Theft. (b) Windstorm, Hail, Riot, and Aircraft. (c) Both A & B. (d) Neither A or B.

Both A & B.

True of False? FWCJUA policies have a grace period for renewal payments.

False.

True of False? Farm Liability includes liability for pollutants and injury to farm employees.

False.

True of False? Florida employees are NOT covered while injured out of state.

False.

Position Schedule Coverage

A form of Employee Dishonesty insurance which covers only people who fill positions named in the policy.

True of False? Florida statutes are silent regarding unfair competition; unfair or deceptive acts; and unfair practices.

False.

True of False? Hangarkeeper's Liability coverage is written on a "stated perils" basis.

False.

True of False? It is ethical to engage in unfair competition; unfair or deceptive acts; or unfair practices as long as it results in a sale.

False.

True of False? Liability limits include "defense cost" in the policy limits.

False.

Inflation Guard

A property insurance option, which provides that the policy limits will increase a certain percentage at regular intervals, for instance, annually.

True of False? Ocean Marine Liability covers injuries onboard the insured ship

False.

Annual Transit Policy

Inland Marine transportation insurance, which insures a property owner for goods being transported.

In the Farm Policy the Mobile Agricultural Machinery and Equipment coverage from covers: (a) Mobile Equipment. (b) Coverage is on a monoline basis. (c) Both A & B. (d) Neither A or B.

Both A and B.

The Special Form Cause of Loss form EXCLUDES: (a) Dishonesty of insured or employees. (b) Rust, decay, and deterioration. (c) Loss to property in the open from rain, snow, ice, or sleet. (d) All of the above.

All of the above.

The Special Form Cause of Loss form EXCLUDES: (a) Wear and Tear. (b) Acts or decisions of a governmental body. (c) Temperature changes. (d) All of the above.

All of the above.

Boiler and Machinery limits are: (a) Per Accident. (b) Per Policy Year. (c) Double Indemnity. (d) None of the above.

Per Accident.

Misrepresentation

Statement of something that is known to be untrue.

In the Homeowners policy Section II Liability includes the following as insureds: (a) Named Insured. (b) Residing spouse of named insured. (c) Both A and B. (d) Neither A or B.

Both A and B.

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage he will have for trailers not used with watercraft. You advise $____ is covered. (a) $500. (b)$1,500. (c) $5,000. (d) $10,000.

$1,500.

The HO-3 policy has $____ of coverage for trailers not used with watercraft. (a) 0. (b) $500. (c) $1,000. (d) $1,500.

$1,500.

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage he will have for securities. What amount is covered? (a) $500. (b) $1,500. (c) $5,000. (d) $10,000.

$1,500.

Absolute Liability

"liability that does not require proving negligence"

Abandonment Clause

"the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value"

Ineligible risk exposures for a Citizens policy include: (a) Properties in disrepair. (b) Properties over 50 years of age. (c) Properties over 50 years of age without upgrades. (d) Both A and C.

Both A and C.

An insured has the following limits: General Aggregate Limit $1,000,000 Products-Completed Operations Limit $ 500,000 Personal and Advertising Injury Limit $ 500,000 Per Occurrence Limit $ 500,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $5,000 due to an injury suffered by a tenant who has tripped over his own shoelace. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? (a) $300,000 (b) $500,000 (c) $1,000,000 (d) $0

$0.

An insured has the following limits: General Aggregate Limit $1,000,000 Products-Completed Operations Limit $ 500,000 Personal and Advertising Injury Limit $ 500,000 Per Occurrence Limit $ 500,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A medical payments claim was filed two years after the date of accident in the amount of $4,500. What is the maximum amount the policy would pay the injured party for? (a) $500,000. (b) $300,000. (c) $5,000. (d) $0.

$0.

An insured has the following limits: General Aggregate Limit $2,000,000 Products-Completed Operations Limit $1,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $10,000 due to an intentional and malicious publication made by your insured. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? (a) $300,000. (b) $500,000. (c) $1,000,000. (d) 0.

$0.

The standard deductibles for a Citizens Homeowners policy is? (a) $1,000 All Perils and 2% Hurricane. (b) $1,000 All Perils and 1% Hurricane. (c) $500, All Perils and 2% Hurricane. (d) $1,000 All Perils and 2% Hurricane.

$1,000 All Perils and 2% Hurricane.

Under Florida's Workers' Compensation laws what is the maximum daily fine as a penalty for non-compliance? (a) $1,000 fine each day of non-compliance. (b) $2,500 fine each day of non-compliance. (c) $5,000 fine each day of non-compliance. (d) Any of the above as there is no set limit.

$1,000 fine each day of non-compliance.

Additional Coverages in the BOP includes Fire Department Service Charge with a $____ limit. (a) $1,000. (b) $5,000. (c) $10,000. (d) $50,000.

$1,000.

In the Commercial Property policy form "Theft of Furs and Jewelry" is limited to: $_____. (a) $1,000. (b) $2,500. (c) $5,000. (d) $10,000.

$1,000.

In the Commercial Property policy the additional coverage, Fire Department Service Charge, pays up to $___. (a) $1,000. (b) $10,000. (c) $100,000. (d) None of the above.

$1,000.

In the Commercial Property policy's Additional Coverage Extensions there is $____ coverage for property in transit. (a) $1,000. (b) $2,500. (c) $5,000. (d) $10,000.

$1,000.

In the Personal Inland Marine policy there is a ____ limit for unscheduled coin collections. (a) $500. (b) $1,000. (c) $10,000. (d) $100,000.

$1,000.

Penny Pennypincher is a coin collector who wishes to purchase a Personal Inland Marine policy. She does not want to schedule her collection. What is the maximum amount she can insure on an unscheduled basis? (a) $500 (b) $1,000 (c) $10,000 (d) $100,000

$1,000.

Penny Pennypincher is a coin collector who wishes to purchase a Personal Inland Marine policy. She does not want to schedule her collection. What is the maximum amount she can insure on an unscheduled basis? (a) $500. (b) $1,000. (c) $10,000. (d) $100,000.

$1,000.

The BOP's Additional Coverages provides $___ for Fire Department Service Charges. (a) $500. (b) $1,000. (c) $2,500. (d) $5,000.

$1,000.

The BOP's Additional Coverages provides $___ for Money Orders and Counterfeit Paper Currency. (a) $500. (b) $1,000. (c) $2,500. (d) $5,000.

$1,000.

The Commercial Property coverage extension, Outdoor Property, pays up to $___ for fences, radio/TV antennas, detached signs, trees, shrubs and plants. (a) $1,000. (b) $2,500. (c) $5,000. (d) $10,000.

$1,000.

You insure Accurate Accounting & Bookkeeping an S Corporation with $200,000 in payroll. The class code for all staff members is 8810 which has a fifty-five cent per hundred Workers Compensation cost. Excluding expense constants, what is the cost of the Workers Compensation for Accurate Accounting & Bookkeeping? (a) $1,100. (b) $5,500. (c) $7,500.

$1,100.

Additional Coverages in the BOP include a $____ limit for Pollutant Clean Up and Removal. (a) $1,000. (b) $5,000. (c) $10,000. (d) None of the above.

$10,000.

Statutory imposed vicarious liability is capped under the Homeowners policy at: __________. (a) $1,000. (b) $5,000. (c) $10,000. (d) $100,000.

$10,000.

The BOP provides a $ _____ coverage limit for Valuable Papers and Records. (a) $100. (b) $1,000. (c) $10,000. (d) No limit for Valuable Papers and Records.

$10,000.

The BOP's Additional Coverages provides $___ for Pollutant Clean Up and Removal. (a) $1,000. (b) $2,500. (c) $5,000. (d) $10,000

$10,000.

Zoe was injured in an auto accident by the negligence of a hit and run driver. Zoe's injuries are valued at $50,000. She has PIP with a $0 deductible and has recovered $10,000 from her PIP. She has UM coverage of $10,000/$20,000. How much is Zoe's UM recovery? (a) $10,000. (b) $20,000. (c) $50,000. (d) none of the above.

$10,000.

What amount will the insurer pay if an insured has a $40,000 policy with an 80% coinsurance provision, a $45,000 building value and a $10,000 loss? (a) $10,000. (b) $ 8,000. (c) $ 5,000. (d) None of the above.

$10,000. ($10,000 as the insured is not subject to a coinsurance penalty due to the policy amount and building value.)

Section II of a Homeowners or Dwelling Fire policy - Liability, provides minimum liability limits of: (a) $100,000 Liability and $10,000 Medical Payments. (b) $100,000 Liability and $1,000 Medical Payments. (c) $300,000 Liability and $10,000 Medical Payments. (d) $300,000 Liability and $1,000 Medical Payments.

$100,000 Liability and $1,000 Medical Payments.

The basic limits for Section II of the Homeowners policy are: (a) $100,000 Liability and $1,000 Medical Payments. (b) $300,000 Liability and $3,000 Medical Payments. (c) $500,000 Liability and $5,000 Medical Payments. (d) $1,000,000 Liability and $10,000 Medical Payments.

$100,000 Liability and $1,000 Medical Payments.

An example of "split" liability limits on the PAP's Declaration page is? (a) $300,000 CSL. (b) $5,000 Medical Payments. (c) $100,000 CSL. (d) $100,000 per person and $300,000 per occurrence.

$100,000 per person and $300,000 per occurrence.

An insured has the following limits: General Aggregate Limit $600,000 Products-Completed Operations Limit $300,000 Personal and Advertising Injury Limit $300,000 Per Occurrence Limit $300,000 Fire Damage/Fire Legal $100,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $200,000 and the insurance company has incurred $200,000 in legal defense of the insured. How much coverage is available to pay the damaged third party if a verdict is rendered against the named insured and the insured has already incurred $500,000 of paid liability claims in the policy period? (a) $100,00. (b) $300,000. (c) $400,000. (d) $600,000.

$100,000.

Autumn Scarletti, your Homeowners insured, has a policy with $300,000 of Dwelling Coverage. She has suffered a $100,000 loss. At the time of loss her home's value was $350,000. If an 80% coinsurance clause applies what dollar amount will Janet recover for her loss? (a) $100,000. (b) $300,000. (c) $350,000. (d) 0.

$100,000.

Bruce was permanently injured in an auto accident by the negligence of Rhonda. Bruce's injuries are valued at $1,000,000. Bruce has PIP and has recovered his full $10,000 limit, and he has $100,000 per person and $300,000 per occurrence UM coverage. Rhonda has a liability insurance policy with limits of 50,000/100,000/$50,000. How much is Bruce's UM recovery? (a) $10,000. (b) $40,000. (c) $100,000. (d) $300,000.

$100,000.

Chris was permanently injured in an auto accident by the negligence of Melanie. Chris's injuries are valued at $1,000,000. Chris has PIP and has recovered his full $10,000 limit, and he has $100,000 per person and $300,000 per occurrence UM coverage. Melanie has a liability insurance policy with limits of 50,000/100,000/$50,000. How much is Chris's UM recovery? (a) $10,000. (b) $40,000. (c) $100,000. (d) $300,000.

$100,000.

The maximum amount FIGA will cover a claim for is $300,000. If there has been damage to a covered structure and contents on a homeowner's claim then FIGA will pay an additional $200,000. All claims are subject to a $___ deductible. (a) $100. (b) $250. (c) $1,000. (d) there is no deductible.

$100.

Under the Garage Policy Section II provides liability coverage less a _____ deductible for work performed by the insured. (a) $100. (b) $250. (c) $500. (d) $1,000.

$100.

Workers Compensation rating is based on the cost per $___ of payroll per class code. (a) $100. (b) $1,000. (c) $10,000. (d) None of the above.

$100.

What amount will the insurer pay if an insured has a $25,000 policy with an 80% coinsurance provision, a $50,000 building value and a $20,000 loss? (a) $10,000. (b) $12,500. (c) $15,000. (d) None of the above.

$12,500. ($12,500, as the insured is only carrying 62.5% insurance to value the 80% coinsurance provision is applicable.)

In the Commercial Property policy's Additional Coverage Extensions there is an annual limit of $____ coverage for Fungus, Wet Rot, Dry Rot, and Bacteria. (a) $1,500. (b) $15,000. (c) $150,000. (d) No stated limit.

$15,000.

Your Homeowners insured has suffered a fire loss to their residence. The Coverage A Dwelling amount on the policy is $300,000. How much coverage would the insured have for debris removal? (a) $15,000. (b) $30,000. (c) 0. (d) $45,000.

$15,000.

Clark Civic, your Homeowners insured, has a policy with $250,000 of Dwelling Coverage. He has suffered a $150,000 loss. At the time of loss his home's value was $300,000. If an 80% coinsurance clause applies what dollar amount will Clark recover for his loss? (a) $150,000. (b) $250,000. (c) $300,000. (d) $400,000.

$150,000.

An insured has the following limits: General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $1,500,000 due to a roof collapsing on a structure your insured built. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? (a) $300,000. (b) $1,000,000. (c) $2,000,000. (d) $3,000,000.

$2,000,000.

Your insured has had a one vehicle accident with a tree. The policy has Other Than Collision coverage with a $250 deductible and Collision coverage with a $500 deductible. The insured vehicle has $2,500 in damages how much will the insured collect after applying the correct coverage and deductible? (a) $1,750. (b) $2,000. (c) $2,250. (d) $2,500.

$2,000.

Outdoor property is covered up to $___ in the BOP. (a) $500. (b) $1,000. (c) $2,500. (d) $5,000.

$2,500.

The Commercial Property policy coverage extension, Personal Effects and Property of Others, pays up to $____ for the personal effects of the named insured, partners, employees, and personal property of others in the care, custody or control of the insured. (a) $2,500. (b) $25,000. (c) $50,000. (d) $100,000.

$2,500.

The Commercial Property policy coverage extension, Valuable Papers and Records, pays up to $____ for the cost to research, replace or restore lost information from papers and records. (a) $1,000. (b) $2,500. (c) $5,000. (d) $10,000.

$2,500.

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage he will have for firearms. What amount will you advise your client is covered? (a) $500. (b) $1,000. (c) $2,500. (d) $5,000.

$2,500.

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage he will have for silverware, goldware, and pewterware. How much is covered? (a) $500. (b) $1,000. (c) $2,500. (d) $5,000.

$2,500.

Your insured has a Surgical Expense policy with $2,500 listed as the maximum indemnification for any one surgical procedure. If your insured has had her gall bladder removed with $3,500 in surgical fees how much will the policy pay for the claim? (a) $3,500. (b) $2,500. (c) $1,500. (d) $1,500.

$2,500.

The maximum amount FIGA will cover a claim for is $300,000. If there has been damage to a covered structure and contents on a homeowner's claim then FIGA will pay an additional $______. (a) $100,000. (b) $200,000. (c) $300,000. (d) there is not limit.

$200,000.

What amount will be paid to an insured who has an insurance policy with separate limits of $200,000 per building on three buildings and $250,000 loss occurs to one of the buildings? (a) The policy will pay to $750,000 for any one loss. (b) The policy will pay $250,000. (c) The policy will pay $200,000. (d) None of the above.

$200,000.

A private passenger automobile policy has split liability limits of 100/300. The insured is involved in an at-fault accident and two individuals in the other car have injuries of $100,000 each. How much will the policy pay in total? (a) $100,000. (b) $200,000. (c) $300,000. (d) None of the above.

$200,000. (Policies with split limits of liability are expressed by two limits: 1. the first represents a per-person limit; and 2. the second represents a per occurrence limit.)

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage he will have for money. What amount is covered? (a) $100. (b) $200. (c) $500. (d) $1,000.

$200.

Dan was permanently injured in an auto accident by the negligence of Cynthia. Dan's injuries are valued at $250,000. Dan has PIP with a $500 deductible and has recovered $9,500 from PIP. He has UM coverage of $50,000/$100,000. Cynthia has a liability insurance policy with limits of 10,000/20,000/$10,000. How much is Dan's UM recovery? (a) $9,500. (b) $10,000. (c) $230,500. (d) 250,000.

$230,500.

Jerry was permanently injured in an auto accident by the negligence of George. Jerry's injuries are valued at $250,000. David has PIP with a $500 deductible and has recovered $9,500 from PIP. He has UM coverage of $50,000/$100,000. George has a liability insurance policy with limits of 10,000/20,000/$10,000. How much is Jerry's UM recovery? (a) $9,500. (b) $10,000. (c) $230,500. (d) $250,000.

$230,500.

David was permanently injured in an auto accident by the negligence of Goliath. David's injuries are valued at $300,000. David has PIP and has recovered his full $10,000 limit, and he has $300,000 of single limit UM coverage. Goliath has a liability insurance policy with limits of 50,000/100,000/$50,000. How much is David's UM recovery? (a) $10,000. (b) $50,000. (c) $240,000. (d) $300,000.

$240,000.

Kathy was permanently injured in an auto accident by the negligence of Paul. Kathy's injuries are valued at $300,000. Kathy has PIP and has recovered her full $10,000 limit, and she has $300,000 of single limit UM coverage. Paul has a liability insurance policy with limits of 50,000/100,000/$50,000. How much is Kathy's UM recovery? (a) $10,000. (b) $50,000. (c) $240,000. (d) $300,000.

$240,000.

Your insured has asked what amounts of coverage are normally available for Towing and Labor coverage you advise? (a) $10, $20, or $30. (b) $25, $50, or $75. (c) $100, $200, or $300. (d) $500, $1,000, or $2,500.

$25, $50, or $75.

A Homeowners insured has suffered a fire loss to their residence with $500,000 of coverage on the Dwelling. What amount of "Additional Coverage" would they have for Trees, Shrubs, and Plants? (a) 0. (b) $5,000. (c) $10,000. (d) $25,000.

$25,000.

Janet Swift, your Homeowners insured, has a policy with $250,000 of Dwelling Coverage. She has suffered a $50,000 loss. At the time of loss her home's value was $500,000. If an 80% coinsurance clause applies what dollar amount will Janet recover for her loss? (a) $50,000. (b) $40,000. (c) $25,000. (d) $10,000.

$25,000.

The Boiler and Machinery Policy has a $______ limit for damage by water from refrigerating or air conditioning vessels and piping. (a) $10,000. (b) $25,000. (c) $50,000. (d) No limit is listed in the policy.

$25,000.

The Boiler and Machinery Policy has a $______ limit for damage caused by ammonia contamination. (a) $10,000. (b) $25,000. (c) $50,000. (d) No limit is listed in the policy.

$25,000.

The Boiler and Machinery Policy has a $______ limit for expediting expenses. (a) $10,000. (b) $25,000. (c) $50,000. (d) Not specified in the policy.

$25,000.

The Boiler and Machinery Policy has a $______ limit for hazardous material cleanup, repair, replacement or disposal of the property damaged. (a) $10,000. (b) $25,000. (c) $50,000. (d) No limit is listed in the policy.

$25,000.

The BOP provides a 30 day automatic coverage limit of $____ per Buildings/$____ Business Personal Property at newly acquired: (a) No limit for newly acquired property. (b) $250,000 and $100,000. (c) $250,000 and $250,000. (d) $1,000,000 and $1,000,000.

$250,000 and $100,000.

Staci was permanently injured in an auto accident by the negligence of Jan. Staci's injuries are valued at $1,000,000. Staci has PIP with a $0 deductible and has recovered $10,000 from PIP. She has UM coverage of $250,000/$500,000. Jan has a liability insurance policy with limits of 100,000/300,000/$50,000. How much is Dan's UM recovery? (a) $100,000. (b) $250,000. (c) $500,000. (d) $1,000,000.

$250,000.

The Commercial Property coverage extension "Automatic Coverage" pays: up to $___ for new buildings under construction at the insured premises or buildings acquired at another premises. (a) $100,000. (b) $200,000. (c) $250,000. (d) None of the above.

$250,000.

The CGL's Supplemental Payments provide up to $___ per day for loss of earning for time taken off of work in the investigation or defense of an insured's claim. (a) $100. (b) $250. (c) $500. (d) $1,000.

$250.

An insured has the following limits: General Aggregate Limit $600,000 Products-Completed Operations Limit $300,000 Personal and Advertising Injury Limit $300,000 Per Occurrence Limit $300,000 Fire Damage/Fire Legal $100,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $200,000 and the insurance company has incurred $200,000 in legal defense of the insured. How much coverage is available to pay the damaged third party if a verdict is rendered against the named insured? (a) $100,000 (the per occurrence limit less defense cost. (b) $300,000 (the per occurrence limit). (c) $400,000 (the aggregate limit less defense cost). (d) $600,000 (the aggregate limit).

$300,000 (the per occurrence limit).

The maximum amount FIGA will cover a claim for is $______. (a) $100,000. (b) $200,000. (c) $300,000. (d) there is not maximum limit.

$300,000.

A private passenger automobile policy has a single bodily injury liability limit of $300,000. The insured is involved in an at-fault accident and five individuals in the other car have injuries of $100,000 each. How much will the policy pay in total? (a) $100,000. (b) $300,000. (c) $500,000. (d) $1,500,000.

$300,000. (Policies with a single limit of liability state a single amount that is the maximum liability the insurer will pay for any one accident or occurrence.)

An insured has a $500 collision deductible on her auto policy. The insured lightly backed into a wall scratching the rear bumper cover resulting in $800 in damages. How much will the insurance company pay the insured? (a) 0. (b) $800. (c) $300.

$300. ($300 is correct; $800 in damage less the $500 deductible.)

A Homeowners Declarations page lists a $1,000 All Peril and a 5% Hurricane Deductible. The policy has$625,000 Coverage A limit. What is the Hurricane Deductible dollar amount required to be listed on the Declarations Page? (a) $1,000. (b) $5,000. (c) $6,250. (d) $31,250.

$31,250.

You insure High Water Realty who has $80,000 in office payroll and another $1,000,000 in compensation paid to realtors classified as independent contractors. The class code for all off staff members is 8810 which has a fifty-five cent per hundred Workers Compensation cost. Excluding expense constants, what is the cost of the Workers Compensation for High Water Realty? (a) $440. (b) $880. (c) $1,100. (d) $8,800

$440.

The consequences for acting as an insurer without proper licensure include: (a) Third degree felony. (b) Liability of unpaid claims. (c) Suspension or revocation of all insurance licenses. (d) All of the above.

All of the above.

The maximum exposure for the Small Business Forms is? (a) $1,000,000. (b) $5,000,000. (c) $10,000,000. (d) No limit.

$5,000,000.

The BOP provides a $ _____ coverage limit for off premises loss not including money and securities, valuable papers, and accounts receivable. (a) $500. (b) $5,000. (c) $50,000. (d) No limit for off premises loss.

$5,000.

The Commercial Property coverage extension, Non-Owned Detached Trailers, pays on an excess basis up to $____ for non-owned trailers used in the insured's business at the insured location. (a) $500. (b) $5,000. (c) $50,000. (d) No stated limit.

$5,000.

Keith was permanently injured in an auto accident by the negligence of Shelby. Keith's injuries are valued at $150,000. Keith has PIP with a $500 deductible and has recovered $9,500 from PIP. He has UM coverage of $50,000/$100,000. Shelby has a liability insurance policy with limits of 10,000/20,000/$10,000. How much is Keith's UM recovery? (a) $10,000. (b) $19,500. (c) $50,000. (d) None of the above.

$50,000.

What amount will the insurer pay if an insured has a policy with $200,000 of building coverage, an 80% coinsurance provision; a $225,000 building value and the building suffers a $50,000 loss? (a) $50,000. (b) $40,000. (c) $30,000. (d) None of the above.

$50,000. ($50,000 as the insured is not subject to a coinsurance penalty due to the policy amount and building value.)

Homeowners insureds must be offered the option to purchase hurricane deductibles of: (a) $500, $1,000, $2,500. (b) $500, 2%, 5%, 10% or higher. (c) $5,000, $10,000, $20,000. (d) There is no required option for hurricane deductibles.

$500, 2%, 5%, 10% or higher.

The standard deductibles for a Citizens Mobile Homeowners policy are? (a) $1,000 All Perils and 2% Hurricane. (b) $1,000 All Perils and 1% Hurricane. (c) $500, All Perils and 2% Hurricane. (d) $1,000 All Perils and 2% Hurricane.

$500, All Perils and 2% Hurricane.

An insured has the following limits: General Aggregate Limit $1,000,000 Products-Completed Operations Limit $ 500,000 Personal and Advertising Injury Limit $ 500,000 Per Occurrence Limit $ 500,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $1,500,000 due to a roof collapsing on a structure your insured built. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? (a) $300,000. (b) $500,000. (c) $1,000,000. (d) $1,500,000.

$500,000.

The Homeowners Additional Coverage for Trees, Shrubs, and Plants has a $___ maximum for any one tree, shrub, or plant. (a) $50. (b) $100. (c) $250. (d) $500.

$500.

A homeowner with a Homeowners policy with $200,000 of coverage and a 2% windstorm deductible suffers a windstorm loss of $60,000. How much will the insured collect on their claim? (a) $60,000. (b) $56,000. (c) $46,000. (d) $36,000.

$56,000. ($56,000: $60,000 of loss less a deductible calculated as 2% x $200,000 of the policy limit...which equals $4,000.)

A Homeowners Declarations page lists a $1,000 All Peril and a 2% Hurricane Deductible. The policy has$325,000 Coverage A limit. What is the Hurricane Deductible dollar amount required to be listed on the Declarations Page? (a) $1,000. (b) $2,000. (c) $3,250. (d) $6,500.

$6,500.

The coverage territory for Aircraft Liability coverage is: (a) United States. (b) Canada. (c) Mexico. (d) All of the above.

All of the above.

The coverage territory for the EPL policy is: (a) United States. (b) Puerto Rico. (c) All parts of the World if suit is brought in the U.S. (d) All of the above.

All of the above.

The coverage territory for the EPL policy is? (a) United States. (b) Puerto Rico. (c) All parts of the World if suit is brought in the U.S. (d) All of the above

All of the above.

The FAJUA offers Physical Damage coverage to Business Autos under: (a) 5,000 pounds. (b) 10,000 pounds. (c) 20,000 pounds. (d) No weight maximum.

10,000 pounds.

Other Coverages in the DP1 policy provides Other Structures coverage up to ____ of Coverage A. (a) 10%. (b) 20%. (c) 30%. (d) 40%.

10%.

The basic limit for Ordinance and Law is ___%. (a) 10%. (b) 20%. (c) 50%. (d) None of the above.

10%.

What amount of Ordinance and Law coverages is required in the Florida Homeowners policy. (a) 10%. (b) 20%. (c) 30%. (d) 40%.

10%.

Florida law requires an insurer to provide ___ days notice for non-renewal of a policy. (a) 10. (b) 30. (c) 60. (d) 100.

100 days.

The CGL's Supplemental Extended Reporting Period must be requested in writing with ___ days after policy expiration: (a) 60 days. (b) 90 days. (c) 80 days. (d) 365 days.

60 days.

Binders: No notice of cancellation or non-renewal is required unless a binder exceeds ___ days. (a) 30. (b) 60. (c) 90. (d) None of the above.

60 days.

During the first ___ days of a new policy an insurer may cancel for any reason EXCEPT discrimination. (a) 10. (b) 20. (c) 45. (d) 60.

60 days.

The CGL's Supplemental Extended Reporting Period must be requested in writing with ___ days after policy expiration: (a) 10 days. (b) 50 days. (c) 60 days. (d) 150 days

60 days.

Peak Season Endorsement

A Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak.

Subdivision Bond

A Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other required improvements will be installed.

Extended Non—owned Coverage Endorsement

A Personal Auto Policy endorsement that extends liability coverage to named individuals for a non owned automobile, which is furnished for their regular use.

U.S. Internal Revenue Bond

A Surety bond required of those who collect and must report taxes for certain controlled commodities, such as liquor or tobacco.

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.

Division of Agents & Agencies Services issue licenses to General Lines Agents, which of the following apply: (a) General Lines Agents represent companies directly. (b) A General Lines Agent can be the Agent in Charge of only ONE physical agency location. (c) A and B are correct. (d) Neither A or B are correct.

A and B are correct.

The BOP's Optional Coverages include: (a) Outdoor Signage. (b) Employee Dishonesty. (c) Employee Injury. (d) A and B.

A and B.

The Broad Form Cause of Loss perils include: (a) Falling Objects. (b) Weight of ice, snow or sleet. (c) Fungus, Wet Rot, Dry Rot, and Bacteria. (d) A & B.

A and B.

The Basic Form Cause of Loss perils include: (a) Fire. (b) Flood. (c) Explosion. (d) A & C.

A and C.

The Basic Form Cause of Loss perils include: (a) Windstorm AND Hail. (b) Flood AND Earth Movement. (c) Smoke AND Vandalism. (d) A & C.

A and C.

License and Permit Bonds

A category of Surety bond which covers a wide variety of occupations and operations, and which are often required as a condition of doing business.

Lost Instrument Bonds

A category of Surety bonds issued in situations where a principal loses valuable securities or other papers and requests issuance of duplicates. Should the lost instruments turn up and be redeemed by the holder, the issuer of the instrument would be reimbursed.

Court Bond

A category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeals, etc. (Includes Bail bonds, Litigation bonds)

Fidelity Bond

A class of bonds, which insurers against an emp|oyee's dishonesty. Today this coverage is generally provided through Employee Dishonesty insurance.

Insurance

A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

Business Income Form

A coverage which reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package Policy.

Dealers Drive—Away Collision

A coverage, which can be added to the Garage policy by endorsement. It eliminates the Physical Damage exclusion regarding coverage for autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart.

Garagekeepers Liability

A coverage, which is part of the Garage coverage form. Covers a garage risk's legal liability for customer's autos in the care, custody or control of the garage. At the insured's option, can also apply without regard to fault, for an additional premium.

Retroactive Date

A date stated in the Declarations of a CGL Coverage form which is normally the same date as the date of the issuing company's first Claims-Made policy for the insured. No coverage is provided under the Claims-Made form for bodily injury or property damage that occurs prior to the retroactive date.

Franchise Deductible

A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full.

Percentage Deductible

A deductible, which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy, limits.

Hospital Indemnity Insurance pays? (a) On a reimbursable basis. (b) Medical expenses of guest. (c) A flat amount per day for hospitalization regardless of expenses or other insurance. (d) All of the above.

A flat amount per day for hospitalization regardless of expenses or other insurance.

Common Policy Conditions

A form containing conditions that apply to all coverages issued under the Commercial Package Policy program.

Supply Contract Bond

A form of Contract bond, which guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation. See Contract bond.

Owners and Contractor's Protective Liability

A form of Liability insurance which protects an owner or general contractor against liability arising out of the acts of independent contractors or subcontractors. May be issued to the independent contractor or subcontractor, or may be issued directly to the owner or general contractor.

Hangarkeeper's Liability

A form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping.

Inland Marine Insurance

A form of insurance originally designed as an extension of Ocean Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.

Marine Insurance

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

Products and Completed Operations

A form of insurance, which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately.

Pollution Liability Coverage

A form of liability insurance that can be added to the CGL section of the Commercial Package policy to provide limited coverage for pollution.

Farm Liability Coverage Form

A form that is a part of the Farm Coverage Part and is designed to provide liability coverage for farm operations.

Trucker's Coverage Form

A form that is part of the Commercial Auto Coverage Part and is designed specifically for the trucking industry. Includes Trailer Interchange insurance.

Farm Property Coverage Form

A form that is part of the Farm Coverage Part and provides seven separate property coverages designed specifically for farms.

SR-22 Filing

A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.

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.

Computer Fraud Coverage Form

A form, which is a part of the Commercial Computer Crime Coverage part of the Commercial Package Policy. It covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premise.

Causes of Loss Form

A form, which is a part of the Commercial Property Coverage Part of the Commercial Package Policy. It specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to Special. An earthquake form is also available.

Casualty Insurance

A line of insurance, which historically has included a wide variety of unrelated coverages other than Life and Health. An important coverage in the casualty line is Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Worker's Compensation and Surety Bonds.

Nuclear Energy Liability Exclusion Endorsement

A mandatory endorsement, which must be, included with the Commercial General Liability coverage part of the Commercial Package Policy. In general, it excludes all hazards related to nuclear energy.

Florida Automobile Joint Underwriting Association

A market source for persons who are unable to purchase Auto insurance through normal channels. It is a syndicate of all licensed companies in Florida that write Auto insurance, with direct operations performed in their behalf by a group of servicing carriers.

Reporting Form

A method of collecting premiums for exposures, which are difficult to evaluate "before the fact." Instead of paying a flat premium, the insured pays a deposit, then submits periodic reports to the insurer, showing the status of the factors on which premium is based. From these status reports, premiums are calculated and charged against the deposit.

Businessowner's Policy

A multi—peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.

"Your covered auto" in the PAP includes? (a) Only vehicles shown on the declarations page. (b) A newly acquired auto. (c) Any tractor the insured owns. (d) All of the above.

A newly acquired auto.

Health Maintenance Organization

A non-insurance alternative to dealing with the risks of health care costs. An HMO provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium.

Condominium Association Coverage Form

A part of the Commercial Property Coverage part of the Commercial Package Policy, which covers the buildings in a condominium complex (not the unit-owner's personal property).

Condominium Commercial Unit Owners Coverage Form:

A part of the Commercial Property Coverage part of the Commercial Package Policy, which covers the unit-owner's business personal property.

Discovery Period

A period of time, in Crime insurance, during which losses that occurred during the policy period but are discovered within one year of expiration will be covered.

Fiduciary

A person or institution, which has responsibility for the money, property or financial affairs of another.

Homeowner's Policy

A personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degrees of protection.

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 such broadened coverage.

Valued Policy

A policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value.

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.

Indemnity

A principle of insurance, 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.

Payment Bond

A type of Contract bond, which guarantees that the contractor upon completion of the work will pay bills for labor and materials. Also called Labor and Materials bond. See Contract bonds.

Bid Bonds

A type of Contract bond, which guarantees the obligee that if a contractors bid is accepted, the contractor will provide the required Performance bond. See also Contract bond.

Name Schedule Coverage

A type of Employee Dishonesty insurance that covers loss only from named employees.

Medicare Supplement Insurance

A type of Health insurance designed to cover medical costs not payable under the Federal Medicare program.

Major Medical Insurance

A type of Health insurance intended to provide protection against catastrophic losses. Some forms are designed to complement or supplement basic hospital/surgical insurance; others provide both basic and catastrophic illness coverage.

Non-cancelable

A type of Health insurance policy which the company may not cancel, but must renew to a certain age with no change in premium. Affords the greatest degree of continuation protection to the insured.

Optionally Renewable

A type of Health insurance that cannot be canceled during the policy term, but for which the company reserves the right to non renew the policy at expiration.

Surgical Expense Insurance

A type of Health insurance that covers fees of physicians for performing surgery, with a maximum amount payable for each procedure.

Physicians Coverage

A type of Health insurance that reimburses the insured for non—surgical care provided by a physician.

The covered sources of flooding include: (a) Overflow of inland or tidal waters. (b) Unusual and rapid accumulation of runoff of surface waters from any source. (c) Mudflow. (d) ll of the above.

All of the above.

The FAJUA operates on behalf of: (a) All licensed Florida automobile insurance companies. (b) Select licensed Florida automobile insurance companies. (c) The Office of Insurance Regulation. (d) The Department of Financial Services.

All licensed Florida automobile insurance companies.

Towing and Labor Endorsement

An endorsement that can be added to an auto policy to cover towing and the costs of labor performed at the site of the disablement.

Named Non-owner Coverage

An endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto.

Business Pursuits Endorsement

An endorsement to a Homeowners policy, which provides coverage against occupational liabilities for those who are employed by others.

Which of the following can be increased under the Optional Coverages of the Businessowners Policy? (a) Accounts Receivable. (b) Valuable Papers and Records. (c) Forgery and Alteration. (d) All of the Above.

All of the Above.

Section II Liability of the Garage Policy does not apply to: (a) Expected or Intended Injury. (b) Employee Injuries. (c) Property in the Insureds Care, Custody, or Control. (d) All of the above.

All of the above

Hull policies are written on a _________ basis. (a) Stated Value. (b) ACV. (c) RCV. (d) All of the above are available.

All of the above are available.

Liability exclusions under the Homeowners policy INCLUDE all but which of the following: (a) Damage to Property Owned by an Insured. (b) Injury to any insured. (c) Business or professional activities. (d) All of the above are covered.

All of the above are covered.

Greg Grumble, your PAP insured, has suffered a loss. Which of the following may be required of him to settle his claim? (a) Provide any requested proof of loss. (b) Prompt notice. (c) Examination under oath. (d) All of the above.

All of the above.

In the BAP Comprehensive covered perils include: (a) Water Damage. (b) Glass Breakage. (c) Wind Damage. (d) All of the above.

All of the above.

____________ is an omnibus clause to provide coverage for "all other like perils, losses, and misfortunes," -- this is not an open perils clause. (a) Jettison. (b) Barratry. (c) All Other Like Perils. (d) Perils of the Seas.

All Other Like Perils.

A claimant has filed a claim against your Homeowners insured for $800 of damage to their property. Your insured has contacted you and advised you that they were legally responsible for the damage. Is there coverage for this claim? (a) No coverage for property of others in the insureds care, custody, or control. (b) Additional Coverages under Section II Liability of the Homeowners policy will cover up to $500 for damage to the property of others. (c) Additional Coverages under Section II Liability of the Homeowners policy will cover up to $1,000 for damage to the property of others. (d) Additional Coverages under Section II Liability of the Homeowners policy will cover up to $5,000 for damage to the property of others.

Additional Coverages under Section II Liability of the Homeowners policy will cover up to $1,000 for damage to the property of others.

This Boiler and Machinery endorsement increases the $25,000 limit of Expediting Expense to a defined higher limit. (a) Limited Coverage Endorsement. (b) Actual Cash Endorsement. (c) Additional Expediting Expense Endorsement. (d) Water Damage Endorsement.

Additional Expediting Expense Endorsement.

An insured has curiously called you to ask if his burial plot is insured for Liability under his Homeowners policy. How will you respond? (a) Advise the insured that cemetery plots and burial vaults are covered as insured locations. (b) Advise the insured that cemetery plots and burial vaults are excluded as insured locations. (c) Advise the insured that cemetery plots and burial vaults are not addressed in the Homeowners policy. (d) Advise the insured that only the residence premises is considered an insured location for Section II of the Homeowners policy.

Advise the insured that cemetery plots and burial vaults are covered as insured locations.

You have bound a Citizen's Wind-only policy for your insured. She has suffered flooding at her home. How will her Citizen's Wind only policy respond? (a) Advise the insured that her Citizen's Wind-only policy covers losses from Windstorm and Flooding so she will be covered for the flood loss. (b) Advise the insured that her Citizen's Wind-only policy covers losses from Windstorm and Hail so she will not be covered for the flood loss. (c) Advise the insured that her Citizen's Wind-only policy covers losses from Windstorm and Sinkhole so she will not be covered for the flood loss. (d) Advise the insured that her Citizen's Wind-only policy covers losses from Windstorm and Lightning so she will not be covered for the flood loss.

Advise the insured that her Citizen's Wind-only policy covers losses from Windstorm and Hail so she will not be covered for the flood loss.

Billy Driver, your insured, wishes to purchase a Personal Inland Marine policy to cover his Golfer's Equipment. His intention is not to itemize his equipment. How do you respond? (a) Advise the insured that you can write golfer's equipment on a blanket basis just as he request. (b) Advise the insured that you cannot write golfer's equipment on a blanket basis. (c) Advise the insured that golfer's equipment is not an eligible class to be written on a Personal IM policy. (d) None of the above.

Advise the insured that you can write golfer's equipment on a blanket basis just as he request.

A potential insured has put his residence in the name of a trust for asset protection purposes. He has been told by his automobile agent that he is not eligible now for a homeowner's policy. What can you suggest to help him with this situation? (a) Agree with the auto agent because the residence is in the name of a trust. (b) Encourage the proposed insured to change the ownership and sell him a Homeowners policy. (c) Advise the proposed insured an endorsement is available to insure the home in the name of the trust. (d) None of the above.

Advise the proposed insured an endorsement is available to insure the home in the name of the trust.

Insurable "objects" include all BUT which of the following: (a) Boilers. (b) Turbines. (c) Air Conditioning Equipment. (d) Aircraft.

Aircraft.

This coverage provides coverage for bodily injury and property damage liability for the premises and operations of an airport: (a) Medical Payments. (b) Aircraft Liability. (c) Airport and Air Meet Liability. (d) Admitted Aircraft Liability Coverage.

Airport and Air Meet Liability.

An _______ insurer is an insurer other than a domestic or foreign insurer. (a) Domestic. (b) Foreign. (c) Alien. (d) None of the above.

Alien.

A General Lines Agent can have their licensed terminated if: (a) Determined to have converted or misappropriated insured or agency funds. (b) Willfully deceived an insured or insurance company. (c) Consistently demonstrated a lack of technical knowledge and/or competency to fulfill the requirements of a license representative. (d) All of the above.

All of the above.

A General Lines Agent can have their licensed terminated if: (a) The materially misrepresented themselves in their licensing application. (b) Willfully deceived an insured or insurance company. (c) Have demonstrated a lack of trustworthiness in the insurance business dealings. (d) All of the above.

All of the above.

A notice of cancellation requires the insurer to state? (a) Reason for the cancellation. (b) Right to an Insurance Department hearing. (c) JUA eligibility. (d) All of the above.

All of the above.

A private residential occupancy includes: (a) Dwellings under construction. (b) Residences with up to two roomers or boarders. (c) Mobile homes. (d) All of the above.

All of the above.

A prospective insured has come to your office for a consultation. During the consultation you determine that the prospective insured has monoline policies for their commercial property, general liability, and workers compensation. What reasons might you provide for packaging these insurance under one Commercial Package policy? (a) One policy might be easier to administer. (b) A package might eliminate gaps and overlapping coverage. (c) The insured might receive a savings in the aggregate premium. (d) All of the above.

All of the above.

A restaurant's BOP eligibility may pertain to: (a) Seating capacity. (b) Types of food and drinks served. (c) Methods of cooking. (d) All of the above.

All of the above.

Accident Insurance: (a) Has a special schedule of limits for dismemberment and death. (b) May include provisions for hospital, physician, and nursing expenses. (c) May include provision for lost wages. (d) ll of the above.

All of the above.

Accident Insurance: (a) Protects specifically for injury from accidents. (b) May include provisions for hospital, physician, and nursing expenses. (c) May include provision for lost wages. (d) All of the above.

All of the above.

An insurer MAY not have to perform if the insured? (a) Breaches a warranty. (b) Is guilty of a misrepresentation. (c) Is guilty of a concealment. (d) All of the above.

All of the above.

Basic, Broad, and Special Forms Causes of Loss EXCLUDE which of the following? (a) Building Ordinance or Law. (b) Fungus, Wet Rot, Dry Rot, and Bacteria . (c) Damage to Wiring or Devices caused by Artificially Generated Electrical. (d) All of the above.

All of the above.

Churning: (a) Is considered unfair and deceptive. (b) Involves the sale or replacement of a policy or policies to generate commissions to the insurer or its agent. (c) Does not benefit the insured. (d) All of the above.

All of the above.

Claims Expenses in Section II of the Homeowners policy pay for: (a) Cost of defense. (b) Premium on appeal bonds. (c) Interest on judgements. (d) All of the above.

All of the above.

Dealers Policies... (a) Cover the merchandise of merchants. (b) Cover on an all risk basis. (c) Cover on premises and off premises. (d) All of the above.

All of the above.

Defamation includes: (a) Libel and Slander. (b) Dissemination information which is false. (c) Dissemination of information which is calculated to injure a third party. (d) All of the above.

All of the above.

Definitions of total disability in a DI policy include: (a) Complete inability to do any work. (b) Inability to work in an occupation for which the insured is qualified by reason of education, training or experience. (c) Unable to perform the duties of his or her own occupation. (d) All of the above.

All of the above.

During the first 60 days of a new policy F.S. 627.7295 prohibits an insured from cancelling a policy providing PIP and Property Damage liability unless? (a) The insured vehicle is totally destroyed. (b) The insured vehicle is sold. (c) Replacement coverage has been purchased. (d) All of the above.

All of the above.

Florida Statutes (F.S. 627.67 1-675) requires Medicare Supplement Insurance to: (a) Have easy read policy language. (b) Be returnable within 30 days of purchase for full premium refund. (c) Provide an outline of coverage with a Medical Supplement Buyers' Guide. (d) All of the above.

All of the above.

Florida law requires stacked UM with limits equal to the policy's liability limits unless the? (a) Insured rejects UM coverage. (b) Insured elects non-stacked UM. (c) Insured elects UM coverage lower than liability limits. (d) All of the above.

All of the above.

Florida law requires stacked UM with limits equal to the policy's liability limits unless? (a) Insured rejects UM coverage. (b) Insured elects non-stacked UM. (c) Insured elects UM coverage lower than liability limits. (d) All of the above.

All of the above.

Florida statutes preclude: (a) Unfair competition. (b) Unfair or deceptive acts. (c) Unfair practices. (d) All of the above.

All of the above.

In the Dwelling Program Coverage A Dwelling includes: (a) Dwellings on the Declarations Page. (b) Building equipment on premises in service of the building. (c) Building materials on premises used for repairs. (d) All of the above.

All of the above.

In the Homeowners policy Section II Liability includes the following as insureds: (a) Named Insured. (b) Residing spouse of named insured. (c) Residing relatives of named insured. (d) All of the above.

All of the above.

John Tater purchased a PIP/PD policy from your agency 30 days ago. He now wants to cancel the policy. Under what conditions can he cancel the policy? (a) The insured vehicle is totally destroyed. (b) The insured vehicle is sold. (c) He has purchased replacement coverage. (d) All of the above.

All of the above.

Liability for Watercraft under the Homeowners policy excludes: (a) Owned inboard or inboard-outboard watercraft. (b) Rented watercraft exceeding 50 horsepower. (c) Owned or rented sailboats if 26 feet or longer. (d) All of the above.

All of the above.

Major Medical Insurance typically covers: (a) Hospital room and board. (b) Operating room. (c) X-rays, anesthetics, nursing services. (d) All of the above.

All of the above.

Major Medical Insurance typically excludes: (a) Injury or disease payable under Workers Compensation. (b) Treatment in a VA or government hospital. (c) Intentionally self-inflicted injury. (d) All of the above.

All of the above.

Mechanical Breakdown insurance extends to? (a) Parts. (b) Labor. (c) Rental Reimbursement. (d) All of the above.

All of the above.

Medical Payments Coverage provides coverage for medical, surgical, ambulance, hospital, and related expenses for injuries sustained: (a) In an aircraft. (b) Entering an aircraft. (c) Alighting from an aircraft. (d) All of the above.

All of the above.

Medical Payments coverage through the FAJUA are available with which of the following limits? (a) $500. (b) $1,000. (c) $2,000. (d) All of the above.

All of the above.

Medicare Supplement Insurance provides coverage for what in Federal Medicare. (a) Gaps. (b) Deductibles. (c) Exclusions. (d) All of the above.

All of the above.

Misrepresentations, omissions, concealment of facts, and incorrect statements shall not prevent a recovery under the policy or contract unless? (a) They are fraudulent. (b) They are material . (c) The insurer in good faith would either not have issued the policy. (d) All of the above.

All of the above.

Mr. Jones, your auto insured has "triggered" Florida's Financial Responsibility law which of the following may be that trigger? (a) Automobile accident involving bodily injury. (b) Automobile accident where a vehicle was rendered as inoperative bodily . (c) Conviction of Driving Under the Influence of Alcohol. (d) All of the above.

All of the above.

Other Than Collision covered perils include? (a) Water Damage. (b) Glass Breakage. (c) Wind Damage. (d) All of the above.

All of the above.

PAP Declarations identify which of the following? (a) Named insured. (b) Loss Payees. (c) Coverages and Premiums. (d) All of the above.

All of the above.

PAP rating usage categories includes which if any of the following? (a) Pleasure. (b) Business. (c) Commuting. (d) All of the above.

All of the above.

Part Four in the Workers Compensation policy "Your Duties if Injury Occurs": (a) Requires immediate notice. (b) Requires immediate necessary medical treatment. (c) Requires insured not to prejudice insurer. (d) All of the above.

All of the above.

Part Three Other States provides: (a) Automatic coverage in states not listed for Part One coverage. (b) Requires each state be listed under Part Three Other States. (c) Insured is required to notify the insurer if work begins in any state listed in Part Three. (d) All of the above.

All of the above.

Part Two Employers Liability of a Florida Workers Compensation policy covers: (a) Claims by employees for injuries not subject to workers compensation law. (b) Claims by other for the liabilities to insured's employees. (c) Claims by relatives of injured employees for consequential damages. (d) All of the above.

All of the above.

Pattie's Pattys the local burger joint has three different types of workers: managerial staff who work full time; high school kids who work part-time; and maintenance workers who work as day labor once a week. Which if any of these workers must be covered under Florida's Workers Compensation? (a) Full time management staff. (b) Part time high school employees. (c) Maintenance workers who work as day laborers. (d) All of the above.

All of the above.

Preferred Provider Organizations (PPO): (a) Provide the insured with comprehensive health services with a focus on managed care. (b) Cost containment. (c) Flexibility. (d) All of the above.

All of the above.

Rebba Roadhouse, your PAP insured, has just purchased a policy. What are her options for Uninsured Motorists on the policy? (a) Exclude UM. (b) Endorse UM to limits lower than BI limits. (c) Endorse UM to non-stacked. (d) All of the above.

All of the above.

Residual Markets are created due to? (a) Uninsurable exposures. (b) Undesirable underwriting characteristic. (c) Catastrophic nature of exposure. (d) All of the above.

All of the above.

Retroactive dates in the "claims-made" CGL policy form are: (a) Can be the same as inception. (b) Can be a specified earlier date. (c) May be listed as "open, none, or blank". (d) All of the above.

All of the above.

Sarah Saddle purchased a PIP/PD policy from your agency 20 days ago. She now wants to cancel the policy. Under what conditions can she cancel the policy? (a) The insured vehicle is totally destroyed. (b) The insured vehicle is sold. (c) He has purchased replacement coverage. (d) All of the above.

All of the above.

Section II of the Garage Policy excludes: (a) Liability assumed under contract. (b) Employee Injuries. (c) Liability for pollution or contamination. (d) All of the above.

All of the above.

Sliding is the act or practice of: (a) Representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required. (b) Representing to the applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required. (c) Charging an applicant for a specific ancillary cover-age or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. (d) All of the above.

All of the above.

The "other insurance" condition in the CGL: (a) States all policies not defined as Excess are Primary. (b) States that claims made forms are excess over any policy that is not claims-made. (c) If permitted by "each" policy is on an equal shares basis. (d) All of the above.

All of the above.

The Actual Loss Sustained Business Interruption Endorsement: (a) Covers actual lost profits. (b) Is subject to 100% coinsurance. (c) Insurance coverage amount is based upon net profit plus fixed operating expenses. (d) All of the above.

All of the above.

The BAP's Section II Liability coverage does not apply to: (a) Insured property. (b) Employee injuries. (c) Mobile equipment. (d) All of the above.

All of the above.

The BAP's Section II does not apply to: (a) Liability assumed under contract. (b) Employee Injuries. (c) Liability for pollution or contamination. (d) All of the above.

All of the above.

The Basic Form Cause of Loss perils include: (a) Fire. (b) Smoke. (c) Riot or Civil Commotion. (d) All of the above.

All of the above.

The Broad Form Causes of Loss perils include: (a) Collapse. (b) Falling Objects. (c) Weight of ice, snow or sleet. (d) All of the above.

All of the above.

The CGL's Coverage C Medical Payments covers members of the public who are injured: (a) On or next to the insured's owned or rented premises. (b) Because of the insured's operations. (c) Irrespective of legal liability . (d) All of the above.

All of the above.

The Commercial Builders Risk Coverage Form insures buildings in the course of construction including: (a) Foundations; fixtures and machinery. (b) Equipment to service the building. (c) Owned materials and supplies used for construction. (d) All of the above.

All of the above.

The Commercial Builders Risk Coverage Form terminates: (a) 90 days after construction is completed. (b) when the property is sold, abandoned or ownership is transferred. (c) 60 days after the building is occupied or put to its intended use. (d) All of the above.

All of the above.

The Commercial Package Policy can be formed by combining which of the following: (a) Commercial Property. (b) Boiler and Machinery. (c) Farm. (d) All of the above.

All of the above.

The Commercial Package Policy can be formed by combining which of the following: (a) Commercial Property. (b) Commercial General Liability. (c) Liquor Liability. (d) All of the above.

All of the above.

The Commercial Package Policy can be formed by combining which of the following: (a) Professional Liability. (b) Employment-Related Practices Liability. (c) Commercial Crime/Employee Dishonesty. (d) All of the above.

All of the above.

The Commercial Property Insurance "Vacancy " condition suspends coverage for the perils of: (a) Vandalism & Sprinkler Leakage. (b) Building Glass Breakage & Water Damage. (c) Theft & Attempted Theft . (d) All of the above.

All of the above.

The Commercial Property Insurance Valuation condition is on an ACV basis unless: (a) RCV has been endorsed on the policy. (b) Loss is to buildings whose value is under $2,500. (c) Stock sold but not delivered is valued at its net sales price. (d) All of the above.

All of the above.

The Crime policy covers: (a) Property of the named insured. (b) Property in the custody of the named insured. (c) Property for which the named insured is legally liable. (d) All of the above.

All of the above.

The Dwelling program insures which of the following: (a) One to four unit family dwellings. (b) Dwellings rented to others by the owner. (c) Dwellings owned by corporations. (d) All of the above.

All of the above.

The FAJUA operates on behalf of all licensed Florida automobile insurance companies through a number of servicing carriers who carry-out which company operations? (a) Underwriting. (b) Servicing. (c) Claims. (d) All of the above.

All of the above.

The Floating or Open Form of Ocean Marine Insurance... (a) Does not have an expiration date. (b) Insurer or insured may cancel with a 30 day notice. (c) Insured uses a reporting form to declare exposure to insurer. (d) All of the above.

All of the above.

The Florida law permits secured payments of compensation by: (a) Purchase of insurance. (b) Self-insurance. (c) Pooled liabilities. (d) All of the above.

All of the above.

The Garage Insurance Policy covers Business Auto and Commercial General Liability coverage for: (a) Exposures of repairing. (b) Exposures of servicing. (c) Exposures of selling. (d) All of the above.

All of the above.

The Garage Policy's Garage Liability EXCLUDES: (a) Watercraft and aircraft. (b) Defective workmanship. (c) Product recall. (d) ll of the above.

All of the above.

The Homeowners program is designed for the personal non-business risk including: (a) Owner occupied dwellings. (b) Residential renters. (c) Condominium unit owners. (d) All of the above.

All of the above.

The PAP defines "your covered auto" as: (a) Any vehicle shown in the Declarations. (b) A newly acquired auto. (c) Any trailer you own. (d) All of the above.

All of the above.

The PAP defines a "your covered auto" to include temporary substitutes if an insured vehicle is unavailable due to? (a) Breakdown or Repair. (b) Servicing. (c) Loss or Destruction. (d) All of the above.

All of the above.

The solicitation of insurance by a General Lines Agent include(s): (a) Describing the benefits or terms of insurance coverage, including premiums or rates of return. (b) Distributing an invitation to contract to prospective purchasers. (c) Completing orders or applications for insurance products. (d) All of the above.

All of the above.

Tom Jones, your Mechanical Breakdown insured, has asked you which if any of the following are typically covered by Mechanical Breakdown Insurance? (a) Engine. (b) Air Conditioner. (c) Drive Axle. (d) All of the above.

All of the above.

Towing and Labor limits usually include? (a) $25. (b) $50. (c) $75. (d) All of the above.

All of the above.

Transacting insurance includes: (a) Solicitation or inducement. (b) Negotiations. (c) Effectuation of a contract of insurance. (d) All of the above.

All of the above.

Under Florida's Workers' Compensation laws disability benefits: (a) Pay for the replacement of an employee's wages. (b) Are calculated based upon the difference between "pre-loss" and post-loss wages. (c) Are calculated on the "average weekly wage". (d) All of the above.

All of the above.

Under Florida's Workers' Compensation laws employee status does not include: (a) Independent contractors. (b) Volunteers. (c) Commissioned real estate agents. (d) All of the above.

All of the above.

Under Florida's Workers' Compensation laws penalties for non-compliance include: (a) Business is guilty of second-degree misdemeanor. (b) Business can be shut down. (c) $1,000 fine and for each day of non-compliance. (d) All of the above.

All of the above.

Under the No Fault law which of the following are defined as an owner? (a) Debtor in possession. (b) Lessee. (c) Holder of legal title. (d) All of the above.

All of the above.

Unfair claim settlement practices include: (a) Failing to acknowledge and act promptly upon communications with respect to claims. (b) Failing to promptly notify the insured of any additional information necessary for the processing of a claim. (c) Failing to promptly provide a reasonable explanation in writing as to the reasons for the denial of a claim. (d) All of the above.

All of the above.

Unfair claim settlement practices include: (a) Failing to adopt and implement standards for the proper investigation of claims. (b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue. (c) Failing to acknowledge and act promptly upon communications with respect to claims. (d) All of the above.

All of the above.

What type of information is located on the PAP's Declarations Page? (a) Coverage amounts. (b) Insured name and mailing address. (c) Premium amounts. (d) All of the above.

All of the above.

Which if any of the following are considered an Insured Location for Section II - Liability coverage in the Homeowners policy? (a) Newly acquired residences during the policy period. (b) Temporary residences used for non-business use. (c) Vacant land owned by the insured. (d) All of the above.

All of the above.

Which if any of the following are typically covered by Mechanical Breakdown Insurance? (a) Engine. (b) Air Conditioner. (c) Drive Axle. (d) All of the above.

All of the above.

Which of the following "litigation" related expenses are covered under the CGL's Supplementary Payments? (a) Court Cost. (b) Interest on Judgements. (c) Prejudgement Interest. (d) All of the above.

All of the above.

Which of the following ARE duties of the Bureau of Property & Casualty Insurer Solvency? (a) Receipt and review of periodic financial statements. (b) Periodic on-site financial examinations. (c) Review of all new insurers. (d) All of the above.

All of the above.

Which of the following apply to the Division of Agents & Agencies Services? (a) Investigate charges of unethical conduct. (b) Issue agent licenses. (c) Supervision of insurance claims activity. (d) All of the above.

All of the above.

Which of the following are always in a DP-1? (a) Fire and Lightning. (b) Internal Explosion. (c) Sinkhole. (d) All of the above.

All of the above.

Which of the following are duties of the Office of Insurance Regulation? (a) Company solvency. (b) Market conduct performance. (c) Policy forms and rates. (d) All of the above.

All of the above.

Which of the following are eligible for a Citizen's Property Insurance policy? (a) Single family homes. (b) Condo unit owners. (c) Mobile Homes. (d) All of the above.

All of the above.

Which of the following are rating factor for the PAP? (a) Age, sex, and marital status. (b) Driving records of operators. (c) Usage. (d) All of the above.

All of the above.

Which of the following are required of the insured following a loss? (a) Prompt notice of loss. (b) Allow inspection and appraisal if the insured vehicle is damaged. (c) File a police report if the insured vehicle is stolen. (d) All of the above.

All of the above.

Which of the following may result in either a suspension, termination, or license revocation: (a) Failure of appointing companies to re-appoint at the two year renewal date. (b) Transacting insurance business for lines the agent does not hold a valid licensed for. (c) Failure to account for funds held in trust for an insurer or insured. (d) All of the above.

All of the above.

Who is a licensed insurance representative responsible to? (a) Agency. (b) Insurance Company. (c) Insured. (d) All of the above.

All of the above.

Why is it important to know the definition of an "insurance transaction"? (a) Florida law prescribes which types of companies a licensed representative can do business with (i.e. admitted vs. excess and surplus lines). (b) Florida law prescribes where an insurance transaction can take place (i.e. in the licensed representatives office vs. the insured's location). (c) Florida law prescribes which certain type(s) of licenses must be held to transact certain lines of insurance business (i.e. life, health, or property and casualty). (d) All of the above.

All of the above.

You currently insure Susie's Sock Emporium on a BOP. When you inquire as to her Workers Compensation you reveal that Susie has fourteen employees but does not carry Workers Compensation. You advise Susie that she may be subject to ALL but which of the following penalties for not complying with Florida's Workers Compensation requirements? (a) Her business may be found guilty of a second-degree misdemeanor. (b) Susie's Sock Emporium can be shut down. (c) Susie's Sock Emporium may be subject to a $1,000 per day fine for everyday the company operates in violation of the law. (d) All of the above.

All of the above.

Your PAP insured has received a cancellation notice from the PAP carrier. What must be included in the cancellation notice? (a) Reasons for cancellation. (b) Date of cancellation. (c) Eligibility for Insurance Department hearing to contest the cancellation. (d) All of the above.

All of the above.

Your PAP insured has received a cancellation notice from the PAP carrier. What must be included in the cancellation notice? (a) Reasons for cancellation. (b) Eligibility of a replacement Joint Underwriting Association policy. (c) Eligibility for Insurance Department hearing to contest the cancellation. (d) All of the above.

All of the above.

Floor Plan Coverage Form

An Inland Marine Coverage form that provides "all risk" coverage for merchandise for sale that has been financed.

Accounts Receivable Coverage Form

An Inland Marine Coverage form, which insures against loss the insured suffers because of an inability to collect from customers when accounts receivable records are damaged.

General Average

An Ocean Marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison). Each party shares in the loss in proportion to their total interest in property being transported.

Settlement

An adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.

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.

Watercraft Endorsement

An endorsement to the Homeowner's contract, which provides coverage for watercraft, which is excluded under the HO policy itself.

Scheduled Personal Property Endorsement

An endorsement to the Homeowner's policy that schedules specific amounts of coverage for one or more of several categories of personal property on an "all risks" basis.

Miscellaneous Type Vehicle Endorsement

An endorsement, which may be added to the Personal Auto Policy to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.

This Miscellaneous Medical Professions coverage form is defined as an act or omission related to blood donations: (a) Blood Banks. (b) Medical or X-Ray Laboratories. (c) Optometrists. (d) Veterinarians.

Blood Banks.

True of False? The CGL includes a common policy condition to audit an insured's books during the policy period and for a period up to ten years.

False.

True of False? The Crime Form is written on an "stated perils" cause of loss form

False.

True of False? The Crime policy is primary over any other recoverable insurance.

False.

Which bond is used to guarantee the Principal's representations as an investment company against defrauding the general public? (a) Public Official Bond. (b) Self-Insurance Bond. (c) Blue Sky Bond. (d) Customs Bond.

Blue Sky Bond.

All of the following are duties of the Office of Insurance Regulation EXCEPT? (a) Company solvency. (b) Appoint physical location of insurers. (d) Policy forms and rates. (d) Market conduct performance.

Appoint physical location of insurers.

Defamation includes: (a) Libel. (b) Slander. (c) Both A & B. (d) Neither A or B.

Both A & B.

True of False? The Farm Liability coverage form EXCLUDES personal and advertising injury.

False.

The Florida Financial Responsibility Law can be satisfied by which of the following? (a) Auto liability limits of 10/20/10. (b) Qualified self-insurer for 10/20/10 limits. (c) Both A & B. (d) Neither A or B.

Both A & B.

Under the PAP definitions "your covered auto" includes all BUT which of the following? (a) Any vehicle you own. (b) Vehicles shown on the Declarations Page. (c) Newly Acquired Autos. Any trailer you own.

Any vehicle you own.

Coverage E - Liability of the Homeowners policy indemnifies the insured from legal liability from personal activities ___________. (a) At work only. (b) Anywhere. (c) Personal activities are not covered. (d) None of the above

Anywhere.

The Citizens commercial policy will insure: (a) Hotels. (b) Boarding houses. (c) Apartment buildings. (d) Rooming houses.

Apartment buildings.

Which of the following is an eligible exposure for a Business Owners Policy? (a) Condos and offices up to thirty stories. (b) Commercial general contractors. (c) Apartment houses and residential condominium association buildings. (d) None of the above.

Apartment houses and residential condominium association buildings.

An insurer wishes to change its application to sell insurance in Florida, which unit must review and approve the application for use? (a) Bureau of Specialty Insurers. (b) Applications Coordination Unit. (c) Division of Agents and Agencies Services. (d) Bureau of Life and Health Forms and Rates.

Applications Coordination Unit.

Which unit reviews and approves company applications to sell insurance? (a) Bureau of Specialty Insurers. (b) Applications Coordination Unit. (c) Division of Agents and Agencies Services. (d) Bureau of Life and Health Forms and Rates.

Applications Coordination Unit.

An "_______" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Authorized.

During the first 60 days of a new policy F.S. 627.7295 prohibits an insured from cancelling a policy providing PIP and Property Damage liability unless? (a) The insured vehicle is totally destroyed. (b) The insured vehicle is sold. (c) Both A & B. (d) Neither A or B.

Both A & B.

Wacko Drycleaners has taken receipt of Mrs. Johnsons laundry for dry cleaning. In the above example Wacko Drycleaners is the: (a) Bailor. (b) Bailee. (c) Lessor. (d) Mortgagor.

Bailee.

Wacko Drycleaners has taken receipt of Mrs. Johnsons laundry for dry cleaning. In the above example Mrs. Johnson is the: (a) Bailor. (b) Bailee. (c) Lessor. (d) Mortgagor.

Bailor.

Your Trucking insured, Bob's Trucks, has hired a truck out to Henry's Heavenly Haulers to deliver a load of hay to a Purdeu Chicken farm. After the delivery Bob has headed back to his ranch to take a few days of R&R. Which term describes Bob's travels back to his residence? (a) Bobcating. (b) Deadheading. (c) Travel-back and Travel-forward. (d) Streetcarting.

Bobcating.

This Boiler and Machinery endorsement provides excess coverage over any other liability available insurance: (a) Limited Coverage Endorsement. (b) Ammonia Contamination Endorsements. (c) Bodily Injury Liability Endorsement. (d) Consequential Damage Endorsement.

Bodily Injury Liability Endorsement.

Your Homeowners insured has rented an off-road recreation vehicle at Cape May to drive up and down the beach. Unfortunately she ran over two sunbathers who sustained $100,000 of injuries each. How will the Homeowners policy respond if the Section II limit is $100,000? (a) Bodily Injury for the injured parties will be covered up to the policy limits on a pro-rata basis for each party. (b) The Homeowners policy will not pay anything as owned RVs are not covered for Liability off the residence premises. (c) The policy will pay for the damages as long at the length of the recreational vehicle does not exceed 150 horsepower. (d) The Homeowners Section II coverage has a double indemnity provision so both injured parties will receive $100,000 to compensate them for their injuries.

Bodily Injury for the injured parties will be covered up to the policy limits on a pro-rata basis for each party.

Your Homeowners insured has rented an off-road recreation vehicle at Cape May to drive up and down the beach. Unfortunately she ran over two sunbathers. How will the Homeowners policy respond? (a) Bodily Injury for the injured parties will be covered up to the policy limits. (b) The Homeowners policy will not pay anything as owned RVs are not covered for Liability off the residence premises. (c) The policy will pay for the damages as long at the length of the recreational vehicle does not exceed 200 horsepower. (d) The policy will pay for the damages as long at the length of the recreational vehicle does not exceed 350 horsepower.

Bodily Injury for the injured parties will be covered up to the policy limits.

The insuring agreement for Garage Liability states: "We will pay all sums an 'insured' legally must pay as damages because of ________ or ________ to which this insurance applies caused by an 'accident' and resulting from 'garage operations'. (a) Products or Completed Operations. (b) Bodily Injury or Property Damage. (c) Premises or Fire Legal Liability. (d) Personal or Advertising Injury.

Bodily Injury or Property Damage.

Surety Bonds

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.

A fraudulent act may take place: (a) At the time of application of insurance. (b) At the time of making an insurance claim. (c) Both A & B. (d) Neither A or B.

Both A & B.

Admitted Aircraft Liability Coverage pays for death or dismemberment if: (a) Requested by named insured. (b) Company is released from further liability. (c) Both A & B. (d) Neither A or B.

Both A & B.

Aircraft Hull Insurance (a) Provide options for Named Perils in flight and All Risk on ground. (b Provide options for All Risk on ground or in fligh (c) Both A & B. (d) Neither A or B.

Both A & B.

An Inland Marine policy covering Furs covers newly acquired property with: (a) 30 days automatic coverage. (b) 25% of the coverage limit up to $10,000. (c) Both A & B. (d) Neither A or B.

Both A & B.

An eligible building is a structure: (a) Affixed to a permanent site. (b) With two or more outside walls and secured roof. (c) 25% or more of the value above ground level. (d) Both A & B.

Both A & B.

An individual determined to be guilty of driving under the influence of alcohol has pierced Florida's Financial Responsibility law. What must the individual do to satisfy Florida's Financial Responsibility law? (a) Carry liability limits of $100,000/$300,000/$50,000. (b) Post a bond in the amount of $350,000. (c) Both A & B. (d) Neither A or B.

Both A & B.

An insured's legal liability for the usage of a golf cart is covered: (a) At the insured's residence. (b) On a golf course. (c) Both A & B. (d) Neither A or B.

Both A & B.

Basic, Broad, and Special Form Causes of Loss EXCLUDE? (a) Loss from Utility Service Failure. (b) Flood, Rising Waters, Mudslides, Back-up of Water through Sewers or Drains. (c) Both A & B. (d) Neither A or B.

Both A & B.

Binders may be? (a) Oral. (b) In Writing. (c) Both A & B. (d) Neither A or B.

Both A & B.

Bob's Radio and TV Repair shop has called in a claim for a customer who has broken their nose when the customer tripped over their own shoe laces. How will the BOP respond? (a) The BOP will pay for the first aid to the customer for injuries sustained on or next to the insured's owned or rented premises. (b) The BOP will pay for the first aid to the customer for injuries sustained at the insured's operations irrespective of legal liability. (c) Both A & B. (d) Neither A or B.

Both A & B.

Broad Form DP-2 includes the DP-1 coverages (Fire, EC and VMM) and adds which of the following perils: (a) Falling objects and Weight of ice, snow or sleet. (b) Volcanic eruption and Damage by burglars. (c) Both A & B. (d) Neither A or B.

Both A & B.

By listing the Loss Payee on the PAP's Declarations page. (a) The Loss Payee is jointly paid with the insured for losses incurred under Coverage D. (b) The Loss Payee's collateral is protected. (c) Both A & B. (d) Neither A or B.

Both A & B.

Childcare is not excluded under Section II- Liability of the Homeowners policy if: (a) No compensation is involved. (b) If undertaken for a family member. (c) Both A & B. (d) Neither A or B.

Both A & B.

Coverage A Dwelling in the Homeowners policy covers: (a) Building and structures. (b) Construction materials adjacent to the premises. (b) Both A & B. (c) Neither A or B.

Both A & B.

Coverage E of the Homeowners policy protects the insured from legal liability for: (a) Bodily Injury to others. (b) Property Damage to others. (c) Both A & B. (d) Neither A or B.

Both A & B.

During the first 60 days of a new policy F.S. 627.7295 prohibits an insurer from cancelling a policy providing PIP and Property Damage liability unless? (a) The insureds initial payment was a dishonored check. (b) The insured did not pay an additional premium due. (c) Both A & B. (d) Neither A or B.

Both A & B.

FAJUA servicing carriers undertake all: (a) Underwriting. (b) Servicing. (c) Both A & B. (d) Neither A or B.

Both A & B.

FWCJUA Tier One eligible insureds: (a) Must have modification factors below 1.00. (b) No lost time claims. (c) Both A & B. (d) Neither A or B.

Both A & B.

Florida statutes preclude: Unfair competition. Unfair or deceptive acts. Both A & B. Neither A or B .

Both A & B.

Florida statutes prohibit: (a) Unfair competition. (b) Unfair or deceptive acts. (c) Both A & B. (d) Neither A or B.

Both A & B.

If financial responsibility did not exist at the time of an accident what must happen to avoid penalties? (a) Satisfy legal claims of others. (b) Owner must carry SR-22. (c) Both A & B. (d) Neither A or B.

Both A & B.

In the BAP Comprehensive covered perils include: (a) Theft. (b) Hail. (c) Both A & B. (d) Neither A or B.

Both A & B.

In the Commercial Property policy subrogation can be waived if: (a) Written waiver is exercised prior to loss. (b) After loss if given to another insured. (c) Both A & B. (d) Neither A or B.

Both A & B.

In the Personal Inland Marine policy coverage for Fine Arts excludes: (a) Property on exhibition away from the insured premises. (b) Repairing, restoring, or retouching damage. (c) Paintings, etchings, statuary, or marble. (d) Both A & B.

Both A & B.

Insurable Interest is the insured's: (a) Exposure to loss. (b) Economic interest. (c) Both A & B. (d) Neither A or B.

Both A & B.

Major Medical Insurance typically covers: (a) Transfusions, drugs, and other medicines. (b) X-rays, anesthetics, nursing services. (c) Injury or disease payable under Workers Compensation. (d) Both A & B.

Both A & B.

Misrepresentations, omissions, concealment of facts, and incorrect statements shall not prevent a recovery under the policy or contract unless? (a) They are fraudulent. (b) They are material. (c) Both A & B. (d) Neither A or B.

Both A & B.

Mr. Jones, your auto insured has "triggered" Florida's Financial Responsibility law which of the following may be that trigger? (a) Automobile accident involving bodily injury. (b) Automobile accident where a vehicle was rendered as inoperative bodily. (c) Both A & B. (d) Neither A or B.

Both A & B.

Ocean Marine deductibles include: (a) Franchise. (b) Average. (c) Wholesale. (d) Both A & B.

Both A & B.

Part E requires an insured to? (a) Submit to examination under oath if requested. (b) File a proof of loss if requested. (c) Both A & B. (d) Neither A or B.

Both A & B.

Part One Workers Compensation: (a) Covers the cost of defending the employer against a claim for these benefits. (b) Requires the employer to be responsible for any payments in excess of those regularly provided by the applicable workers compensation laws. (c) Both A & B. (d) Neither A or B.

Both A & B.

Section II Liability of the Garage Policy does not apply to: (a) Organized racing. (b) Property in the insureds care, custody, or control. (c) Negligence. (d) Both A & B.

Both A & B.

Section III Garagekeepers covers damage to a customers car in the care, custody, and control of the named insured: (a) If the insured is legally liable. (b) Optionally available irrespective of legal liability. (c) Both A & B. (d) Neither A or B.

Both A & B.

Section III Physical Damage in the BAP covers: (a) Collision. (b) Comprehensive or Specified Perils. (c) Both A & B. (d) Neither A or B.

Both A & B.

Surgical Expense coverage: (a) Covers fees of physicians for performing surgery. (b) Lists covered surgical procedures in a schedule with applicable dollar amounts of coverage. (c) Both A & B. (d) Neither A or B.

Both A & B.

The BAP's Section II Liability coverage does not apply to: (a) Organized racing. (b) Property in the insureds care, custody, or control. (c) Negligence. (d) Both A & B.

Both A & B.

The BOP's Medical Payments coverage covers members of the public who are injured: (a) On or next to the insured's owned or rented. (b) Because of the insured's operations. (c) Both A & B. (d) Neither A or B.

Both A & B.

The Boiler and Machinery policy covers: (a) Other property owned by the insured affected by an accident. (b) Non-owned property in the care, custody or control of the insured and for which the insured is legally liable. (c) Both A & B. (d) either A or B.

Both A & B.

The Citizen's Wind-only policy covers: (a) Windstorm. (b) Hail. (c) Both A & B. (d) Windstorm and Flood.

Both A & B.

The Commercial Inland Marine Installation Coverage Form covers loss to equipment and machinery, building materials and supplies. (a) In transit. (b) Used in the course of installation, testing, building, renovating or repair. (c) Both A & B. (d) Neither A or B.

Both A & B.

The Commercial Property Coverage Form applies to: (a) Condominium Associations. (b) Condominium Unit-Owners. (c) Both A & B. (d) Neither A or B.

Both A & B.

The Extra Expense Form: (a) Pays extraordinary expenses incurred to maintain ongoing operations over and above normal expenses (b) Has a schedule which prorates the insured's recovery over time and against the policy limit on a percentage basis over time (c) Both A & B (d) Neither A or B

Both A & B.

The FAJUA offers: (a) Personal Auto coverage. (b) Business Auto coverage. (c) Commercial General Liability. (d) Both A & B

Both A & B.

The Loss Sustain Crime coverage form will cover a loss which occurred prior to its inception if: (a) Reported during the policy term. (b) There was no interruption between the previous policy term and the current policy. (c) Both A & B. (d) Neither A or B.

Both A & B.

The PAP defines "your covered auto" as: (a) Any vehicle shown in the Declarations. (b) Any trailer you own. (c) Both A & B. (d) Neither A or B.

Both A & B.

The Valued Business Interruption Endorsement: (a) Expresses deductibles as either days or dollars. (b) States an agreed dollar limit for each day of total interruption. (c) Both A & B. (d) Neither A or B.

Both A & B.

The insured must file a police report if? (a) An insured vehicle is stolen. (b) An insured vehicle has been hit by a hit-and-run operator. (c) Both A & B. (d) Neither A or B.

Both A & B.

To be eligible for a FAJUA policy you must: (a) Be a Florida resident. (b) Have a vehicle registered in Florida if a non-resident. (c) Both A & B. (d) Neither A or B.

Both A & B.

Under the BAP's Section II Liability who is defined as an insured? (a) Named insured for any covered auto. (b) Permissive users of covered autos owned, hired or borrowed by the named insured. (c) Both A & B. (d) Neither A or B.

Both A & B.

What style of limits are available on the PAP? (a) Single. (b) Split. (c) Fractional. (d) Both A & B.

Both A & B.

What types of loss require the insured to file a police report to satisfy the conditions of his policy when making a claim under the PAP? (a) Stolen vehicle. (b) Damage to vehicle and/or injuries to insured driver/occupant/pedestrian hit by a hit-and-run operator. (c) Both A & B. (d) Neither A or B.

Both A & B.

Which of the following are required of the insured following a loss? (a) Prompt notice of loss. (b) Allow inspection and appraisal if the insured vehicle is damaged. (c) Both A & B. (d) Neither A or B.

Both A & B.

Which of the following are required to be on an application of insurance? (a) Insurer name. (b) Agent name and licensed number. (c) Both A & B. (d) Neither A or B.

Both A & B.

You have counseled with Barry Borits a proposed insured who personally owns two private passenger automobiles and a van in his company's name. Barry has been unable to obtain insurance in the private market. What type of policies will he be eligible for with the FAJUA? (a) Personal Auto coverage. (b) Business Auto coverage. (c) Commercial General Liability. (d) Both A & B.

Both A & B.

Petey's automobile incurs $1,000 of physical damage in an accident caused by Spanky. Petey receives a claims payment of $800 from her own insurer, because of a $200 deductible clause. What subrogation right does the insurance company have? (a) The insurance company is now subrogated to Petey's right to collect from Spanky. (b) Spanky's insurance company will owe $800 to Petey's insurance company. (c) Both A & B. (d) Neither A nor B.

Both A & B. (An insurer is subrogated to the claims the insured had against a responsible third party for which the insured has made a claims payment to the insured.)

Negligence is failure to... (a) Exercise care to protect others from harm. (b) Act as a prudent person would. (c) Both A & B. (d) Neither A or B.

Both A & B. (Negligence is the failure to exercise that degree of care that the law requires to protect others from an unrea¬sonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.)

Which of the following are duties of the Bureau of Life & Health Insurer Solvency? (a) Solvency oversight. (b) Analyze policies and rates. (c) Both A and B. (d) Neither A or B.

Both A and B are correct as the Bureau of Life & Health Insurer Solvency duties include: (a) solvency oversight and (b) analyzing policies and rates.

Which of the following are duties of the Bureau of Property & Casualty Insurer Solvency? (a) Receipt and review of periodic financial statements. (b) Periodic on-site financial examinations. (c) Both A and B. (d) Neither A or B.

Both A and B is the correct answer as the Bureau of Property & Casualty Insurer Solvency has the following duties: (a) receipt and review of periodic financial statements; (b) periodic on-site financial examinations; and (c) review of all new insurers.

Which of the following apply to the Division of Agents & Agencies Services? (a) Investigate charges of unethical conduct. (b) Issue agent licenses. (c) Both A and B. (d) Neither A or B.

Both A and B is the correct answer as the The Division of Agents & Agencies Services: (a) investigate charges of unethical conduct; (b) issue agent licenses; and (c) supervise insurance claims activity.

An insured has the following limits: General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 (a) "Aggregate" means the total limit for the entire policy term. (b) "Occurrence" means the total limit per isolated incident or occurrence of loss. (c) Both A and B. (d) Neither A or B.

Both A and B.

Betty Bigelow, your PAP insured, has suffered a loss. Which of the following may be required of her? (a) Provide any requested proof of loss. (b) Examination under oath. (c) Both A and B. (d) Neither A or B.

Both A and B.

Employment Related Practices Liability excludes: (a) Sexual harassment by the perpetrator. (b) Does cover those who are vicariously liable. (c) Both A & B. (d) Neither A or B.

Both A and B.

Employment Related Practices Liability excludes: (a) Sexual harassment. (b) Retaliatory action against whistle blowers. (c) Both A & B. (d) Neither A or B.

Both A and B.

Employment Related Practices Liability excludes? (a) Sexual harassment by the perpetrator. (b) Does cover those who are vicariously liable. (c) Both A & B. (d) Neither A or B.

Both A and B.

In the Farm Policy the Livestock Coverage form covers: (a) Livestock. (b) Coverage is on a monoline basis. (c) Both A & B. (d) Neither A or B.

Both A and B.

Kennedy Johnson, your PAP insured, has selected Uninsured Motorists coverage with 10/20 limits even though her BI limits are 250/500. He has advised you that he has "great" health insurance and really doesn't need UM coverage. What is your response? (a) You advise your insured that UM covers non-economic damages such as pain and suffering. (b) You advise your insured that UM covers lost wages. (c) Both A and B. (d) Neither A or B.

Both A and B.

Mechanical Breakdown Insurance policy deductibles. (a) Apply to each breakdown or part or assembly. (b) One deductible applies if the same breakdown involves multiple parts. (c) Both A and B. (d) Neither A or B.

Both A and B.

Mechanical Breakdown coverage is conditioned upon? (a) Proper cleaning. (b) Proper servicing. (c) Both A and B. (d) Neither A or B.

Both A and B.

Mechanical Breakdown covers the failure of? (a) Original parts. (b) Replacement parts. (c) Both A and B. (d) Neither A or B.

Both A and B.

Mechanical Breakdown insurance is compensable up to? (a) Specific dollar limit. (b) Not to exceed the ACV of the insured vehicle. (c) Both A and B. (d) Neither A or B.

Both A and B.

Part Two Employers Liability of a Florida Workers Compensation policy covers: (a) Claims by employees for injuries not subject to workers compensation law. (b) Claims by other for the liabilities to insured's (c) Both A and B. (d) Neither A or B.

Both A and B.

Personal non business activities are covered in Section II Liability of the Homeowners policy: (a) At the insured residence. (b) Anywhere in the world. (c) U.S., Puerto Rico, and Canada. (d) Both A and B.

Both A and B.

Randy's Rulers, Erasers, and Paper your CGL insured has filed a liability claim under their CGL based upon liability assumed in a contract. Will the CGL pay the insured's claim? (a) Yes, if Randy would be legally liable anyway. (b) Yes, if the contract meets the criteria for acceptable leases not subject to exclusion. (c) No, the CGL excludes BI and PD claims based on contractual liability. (d) Both A and B.

Both A and B.

Residual Markets are created to address? (a) Uninsurable exposures. (b) Undesirable underwriting characteristic. (c) Both A and B. (d) Neither A or B.

Both A and B.

Retroactive dates in the "claims-made" CGL policy form are: (a) Can be the same as inception. (b) Can be a specified earlier date. (c) May be listed as "forward, middle, or back". (d) Both A and B.

Both A and B.

The CGL coverage is limited to: (a) "Occurrences" define as accidents. (b) Exposure to harmful conditions. (c) Both A & B. (d) Neither A or B.

Both A and B.

The CGL states that the policy coverage is primary unless? (a) The insured has other available liability insurance which also states it is primary. (b) The policy is a claims made policy and any and all other available policies are on an occurrence basis. (c) Both A and B. (d) Neither A or B.

Both A and B.

The CGL's Coverage B covers: (a) Personal Injury. (b) Advertising Injury. (c) Completed Operations. (d) Both A & B.

Both A and B.

The CGL's Coverage C Medical Payments covers members of the public who are injured: (a) On or next to the insured's owned or rented premises. (b) Because of the insured's operations. (c) Both A & B. (d) Neither A or B.

Both A and B.

The Crime policy covers: (a) Property of the named insured. (b) Property in the custody of the named insured. (c) Both A and B. (d) Neither A or B.

Both A and B.

The Crime policy values: (a) Money at its face value. (b) Securities at their value the day any loss is discovered. (c) Both A and B. (d) Neither A or B

Both A and B.

The Florida law permits secured payments of compensation by: (a) Purchase of insurance. (b) Self-insurance. (c) Both A and B. (d) Neither A or B.

Both A and B.

Transacting insurance includes: (a) Solicitation or inducement. (b) Negotiations. (c) Both A and B. (d) Neither A or B.

Both A and B.

Under Coverage A of the CGL the insuring agreement states the insurer will pay damages for: (a) Property Damage. (b) Bodily Injury. (c) Both A & B. (d) Neither A or B.

Both A and B.

Under Florida's Workers' Compensation laws penalties for non-compliance include: (a) Business is guilty of second-degree misdemeanor. (b) Business can be shut down. (c) Both A and B. (d) Neither A or B.

Both A and B.

Unfair claim settlement practices include: (a) Failing to adopt and implement standards for the proper investigation of claims. (b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue. (c) Both A and B. (d) Neither A or B.

Both A and B.

Which of the following "litigation" related expenses are covered under the CGL's Supplementary Payments? (a) Court Cost and Prejudgment Interest. (b) Interest on Judgments and Cost of Bonds to Release Judgments. (c) Both A and B. (d) Neither A or B.

Both A and B.

Which of the following are EXCLUSIONS to Part Two Employers Liability in the Florida Workers Compensation policy? (a) Injuries intentionally caused by the insured. (b) Liability assumed under contract. (c) Both A and B. (d) Neither A or B.

Both A and B.

Which of the following are duties of the Office of Insurance Regulation? (a) Company solvency. (b) Market conduct performance. (c) Both A and B. (d) Neither A or B.

Both A and B.

Your CGL insured has filed a CGL claim and the claims investigation has revealed that the claim is based upon an assumed contract. Will the CGL pay the insured's claim? (a) Yes, if the insured would be legally liable anyway. (b) Yes, if the contract meets the criteria for acceptable leases not subject to exclusion. (c) No, the CGL excludes BI and PD claims based on contractual liability. (d) Both A and B.

Both A and B.

Your insured has asked what major parts are covered by Mechanical Breakdown insurance. How will you respond? (a) Engines and Transmissions. (b) Drive Axles and Steering Assemblies. (c) Both A and B. (d) Neither A or B.

Both A and B.

Which of the following are not reasons to seek coverage in the Florida Auto JUA? (a) Insured can obtain automobile insurance in the private - competitive market but seek a lower premium. (b) Insured cannot obtain automobile insurance in the private - competitive market. (c) Insurance can obtain automobile insurance in the private - competitive market but seek broader coverage. (d) Both A and C.

Both A and C.

A licensed customer representative may: (a) Solicit business outside of the supervising General Lines Agent's office. (b) Take insurance applications. (c) Bind insurance coverages. (d) Both B & C.

Both B & C.

An Inland Marine policy covering Jewelry covers newly acquired property with: (a) No coverage. (b) 30 days automatic coverage. (c) 25% of the coverage limit up to $10,000. (d) Both B & C.

Both B & C.

An insured under a residential property form includes? (a) Mortgagee. (b) Named insured and residing spouse. (c) Residing relatives of the named insured. (d) Both B & C.

Both B & C.

The PAP insuring agreement states the policy pays on behalf of the insured money damage for which the insured is legally liable to others for? (a) Personal injury. (b) Bodily injury. (c) Property Damage. (d) Both B & C.

Both B & C.

The consequences for aiding and abetting an unauthorized insurer include: (a) Misdemeanor. (b) Third degree felony. (c) Liability of unpaid claims. (d) Both B & C.

Both B & C.

Which of the following perils are covered in the BAP's Specified Causes of Loss coverage: (a) Wear and Tear. (b) Fire. (c) Theft. (d) Both B & C.

Both B & C.

A loan or application of credit: (a) Can be made condition precedent on the procurement of insurance by a required insuring party. (b) Can be made condition precedent on the procurement of insurance. (c) Cannot be made condition precedent on the procurement of insurance by a required insuring party. (d) Both B and C.

Both B and C.

In the Dwelling Fire policy the difference between Coverage D Fair Rental Value and Coverage E Additional Living Expense is: (a) Coverage D pays for the insured's additional expenses to maintain the insured's living standards if the property is uninhabitable. (b) Coverage E pays for the insured's additional expenses to maintain the insured's living standards if the property is uninhabitable. (c) Coverage D pays for the fair rental value if the property become uninhabitable. (d) Both B and C.

Both B and C.

The BAP's Individual Named Insured endorsement: (a) Extends coverage to customers vehicles. (b) Broadens BAP coverages for PAP style protection when the named insured is an individual. (c) Is necessary if an employee has their own vehicle and insurance. (d) None of the above.

Broadens BAP coverages for PAP style protection when the named insured is an individual.

If someone believes they have or are suffering from any type of unethical insurance practice you should refer them to which department? (a) Bureau of Specialty Insurers. (b) Bureau of Market Conduct. (c) Division of Agents and Agencies Services. (d) Applications Coordination Unit.

Bureau of Market Conduct. You would refer them to the Bureau of Market Conduct whose function is to protect the public from unethical insurance practices.

Stands for: Cost, Insurance and Freight: assignment of responsibility of seller to obtain all necessary insurances. (a) F.O.B. (b) C.I.F. (c) C.F. (d) F.A.S.

C.I.F.

Your commercial insured has struck a dog in a one vehicle accident which resulted in several thousand dollars of damage to her vehicle. What type of physical damage claim will she be filing? (a) Special. (b) Comprehensive. (c) Collision. (d) Cruelty to Animals.

Comprehensive.

Your commercial insured has struck a light pole in a one vehicle accident which resulted in a broken windshield. What type of physical damage claim will he be filing? (a) Special. (b) Comprehensive. (c) Collision. (d) Mailbox.

Comprehensive.

This Crime primary coverage covers worldwide loss of money, securities and other property by use of a computer to fraudulently convert assets: (a) Inside The Premises- Theft of Money and Securities. (b) Computer Fraud. (c) Money Orders And Counterfeit Paper Currency. (d) Forgery or Alteration.

Computer Fraud.

Bill Williams, your insured, has failed to reveal some relevant facts when he is applying for insurance; this is considered? (a) Concealment. (b) Misrepresentation. (c) Fraud. (d) Both B & C.

Concealment.

The failure of the insured to reveal relevant facts known to the insured in applying for insurance is? (a) Concealment. (b) Misrepresentation. (c) Fraud. (d) Both B & C.

Concealment. (Concealment is the failure of the insured to reveal relevant facts known to the insured in applying for insurance.)

Property and liability insurance policies are said to be ___________ contracts because the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions. (a) Personal. (b) Adhesions. (c) Written. (d) Conditional.

Conditional. (Property and liability insurance policies are said to be conditional contracts because the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions.)

This Health Insurance coverage continuation provision permits non-renewal for reasons specifically stated; no other reasons can apply: (a) Cancellation Clause. (b) Optionally Renewable. (c) Conditionally Renewable. (d) Guaranteed Renewable.

Conditionally Renewable.

This Boiler and Machinery endorsement covers spoilage loss from lack of power, light, heat, steam or refrigeration, caused by an accident to a covered object: (a) Limited Coverage Endorsement. (b) Ammonia Contamination Endorsements. (c) Bodily Injury Liability Endorsement. (d) Consequential Damage Endorsement.

Consequential Damage Endorsement.

Which bond guarantees the Principal's undertakings as trustee in preservation of property other than estates of decedents? (a) Probate Bond. (b) Conservation Bond. (c) Insolvency Bond. (d) Court Bonds.

Conservation Bond.

Which bond is used to secure the actions of receivers and trustees in their conservation of assets and protection of creditors? (a) Probate Bond. (b) Conservation Bond. (c) Insolvency Bond. (d) Court Bonds.

Conservation Bond.

Which Commercial Inland Marine policy covers owned, rented, or borrowed heavy machinery, equipment and contractor's tools on job sites, in transit to and from job sites, and in temporary storage? (a) Contractors Equipment Floater. (b) Physicians and Surgeons Equipment. (c) Film. (d) Commercial Articles.

Contractors Equipment Floater.

It would be unethical for an applicant for an insurance license to obtain a license solely to write which type of business? (a) Property. (b) Casualty. (c) Controlled. (d) All of the above.

Controlled.

All BUT which of the following are specifically EXCLUDED from BOP eligibility? (a) Household personal property. (b) Auto repair or service station. (c) Convenience store. (d) Banks.

Convenience store.

Which bond is furnished by 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? (a) Probate Bond. (b) Conservation Bond. (c) Insolvency Bond. (d) Court Bonds.

Court Bonds.

You are explaining CGL coverages with your insured. Beginning with Coverage A you tell him that the policy covers: (a) Coverage A covers Bodily Injury and Property Damage. (b) Coverage A covers Personal and Advertising Injury. (c) Coverage A covers Medical Payments. (d) None of the above.

Coverage A covers Bodily Injury and Property Damage.

You are explaining CGL coverages with your insured. You tell her that Coverage B covers: (a) Coverage B covers Bodily Injury and Property Damage. (b) Coverage B covers Personal and Advertising Injury. (c) Coverage B covers Medical Payments. (d) None of the above.

Coverage B covers Bodily Injury and Property Damage.

Your Homeowners insured's fence has been blown down. Which coverage is the fence covered under? (a) Coverage A. (b) Coverage B. (c) Coverage C. (d) Coverage D.

Coverage B.

By listing the Loss Payee on the PAP's Declarations page the Loss Payee is jointly paid with the insured for losses incurred under Coverage? (a) Coverage A. (b) Coverage B. (c) Coverage C. (d) Coverage D.

Coverage D - Damage to Your Auto.

Your Homeowners insured has had a fire at her home which has rendered the home unfit for living in. Which coverage will provide temporary housing expense and ancillary cost coverage? (a) Coverage A. (b) Coverage B. (c) Coverage C. (d) Coverage D.

Coverage D.

Section II of the Homeowners policy covers: (a) Coverage E Liability. (b) Coverage F Mental Payments. (c) Both A and B. (d) Neither A or B.

Coverage E Liability.

Automobile Mechanical Breakdown Insurance

Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturers warranty.

Stacked UM coverage means? (a) Coverage limits for two or more vehicles are added together. (b) UM deductibles are waived. (c) Both A & B. (d) None of the above.

Coverage limits for two or more vehicles are added together.

Personal and Advertising injury

Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan.

Employers' Liability Coverage

Coverage provided under a Worker's Compensation policy to cover the employers' liability arising out of employee's work-related injuries.

False Pretense Coverage

Coverage that can be added to a Garage policy by endorsement to insure a dealer 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.

Airport and Air Meet Liability

Coverage that provides protection to airports for bodily injury and property damage liability.

Aircraft Liability Insurance

Coverage written to cover public and passenger liability and property damage liability.

Excess Coverage

Coverage, which applies only after limits of primary insurance have been exhausted. See Primary Insurance.

The insured has a Crime policy form and has suffered a forgery loss. Is this loss covered? (a) Covered. (b) Not Covered.

Covered.

The insured has a Crime policy form and has suffered a loss by an act committed by an employee. Is this loss covered? (a) Covered. (b) Not Covered.

Covered.

The insured has a Crime policy form and has suffered a theft of money at the insured premises. Is this loss covered? (a) Covered. (b) Not Covered.

Covered.

Extra Expense Coverage Form

Covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package Policy.

The "open perils" cause of loss in the Personal Articles Floater: (a) Covers the "basic" form perils. (b) Covers the "broad" form perils. (c) Covers direct physical damage unless excluded. (d) All of the above.

Covers direct physical damage unless excluded.

Ocean Marine Freight Coverage... (a) Is not normally part of the Hull coverage. (b) Covers financial loss by vessel owner if freight charges are not paid. (c) Both A & B. (d) Neither A or B.

Covers financial loss by vessel owner if freight charges are not paid.

Ocean Marine Hull Coverage... (a) Covers for loss of or damage to the vessel by: fire, lightning, earthquake, assailing thieves, "perils of the seas," jettisons, barratry of the master or mariners and "all other like perils". (b) Coverage is not limited by geographical territory. (c) Both A & B. (d) Neither A or B.

Covers for loss of or damage to the vessel by: fire, lightning, earthquake, assailing thieves, "perils of the seas," jettisons, barratry of the master or mariners and "all other like perils".

The Commercial Property policy's Optional Endorsement, "Building Ordinance Coverage": (a) Covers loss due to ordinance or law requirement to demolish undamaged portions of an affected structure to bring the building up to the current building code. (b) Covers fluctuating business personal property by setting a maximum provisional amount of insurance. (c) Covers peak season spikes in inventory levels as a stated amount. (d) None of the above.

Covers loss due to ordinance or law requirement to demolish undamaged portions of an affected structure to bring the building up to the current building code.

The Commercial Property policy's Optional Endorsement, "Peak Season": (a) Covers loss due to ordinance or law requirement to demolish undamaged portions of an affected structure to bring the building up to the current building code. (b) Covers fluctuating business personal property by setting a maximum provisional amount of insurance. (c) Covers peak season spikes in inventory levels as a stated amount. (d) None of the above.

Covers peak season spikes in inventory levels as a stated amount.

The Commercial Inland Marine Motor Truck Cargo coverage: (a) Covers the shipper's truck. (b) Covers the shipper of singular shipments of goods against loss to goods in transit. (c) Covers the carrier for loss to domestic shipments in transit. (d) Covers the shipper for all risks against loss to property sent by registered mail, first class mail, certified mail or express mail.

Covers the carrier for loss to domestic shipments in transit.

The Commercial Inland Marine Mail Coverage form: (a) Covers the shipper or receiver of goods against loss to goods in transit. (b) Covers the shipper of singular shipments of goods against loss to goods in transit. (c) Covers the carrier for loss to domestic shipments in transit. (d) Covers the shipper for all risks against loss to property sent by registered mail, first class mail, certified mail or express mail.

Covers the shipper for all risks against loss to property sent by registered mail, first class mail, certified mail or express mail.

The Commercial Inland Marine Annual Transit coverage: (a) Covers the shipper or receiver of goods against loss to goods in transit. (b) Covers the shipper of singular shipments of goods against loss to goods in transit. (c) Covers the carrier for loss to domestic shipments in transit. (d) Covers the shipper for all risks against loss to property sent by registered mail, first class mail, certified mail or express mail.

Covers the shipper or receiver of goods against loss to goods in transit.

True of False? The death benefit in a Florida Workers Compensation policy pays up to $75,000 for actual funeral expenses.

False.

True of False? The three parties to Suretyship are: Pinnacles, Responsiblees, and Surety.

False.

The Dwelling Policy with the least amount of coverage is the: (a) DP-1. (b) DP-2. (c) DP-3. (d) DP-4.

DP-1.

Which of the following concerning the Dwelling Fire program are correct? (a) DP-1 covers for limited named perils and ACV as loss settlement. (b) DP-2 covers the DP-1 perils with broadened other coverages. (c) DP-3 covers buildings on an "all-risk" basis. (d) All of the above.

DP-2 covers the DP-1 perils with broadened other coverages.

The Dwelling Policy with the greatest amount of coverage is the: (a) DP-1. (b) DP-2. (c) DP-3. (d) DP-4.

DP-3.

The BOP's Fire Legal Liability coverage covers: (a) Damage caused by an insured to a premises rented to the insured. (b) Damage caused by an insured to a premises rented by the insured to a tenant. (c) The BOP does not include Fire Legal coverage. (d) Up to $5,000 for property in the care custody and control of the insured.

Damage caused by an insured to a premises rented to the insured.

Consequential Damage

Damage which occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, etc. Not generally covered under property policies unless specified.

Salvage

Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss.

Exemplary Damages

Damages awarded to make an example of the wrongdoer.

Punitive Damages

Damages that punish the wrongdoer for anti-social actions, rather than compensating for loss.

Mechanical Breakdown insurance covers: (a) Radios, CBs, Phones, and other AV devices. (b) Interior components of an automobile. (c) Engines and Transmission. (d) All of the above.

Engines and Transmission.

You have the following insureds in your agency: Magnificent Maids: maid services in private homes. Jessup State Prison: state prisoners manufacturing license plates. The Dallas Cowboys football team. Dan's Drywall and Paint: artisan contractor doing renovation. Which, if any, of the following are required to carry Workers Compensation? (a) Magnificent Maids. (b) Jessup State Prison. (c) Dallas Cowboys. (d) Dan's Drywall and Paint.

Dan's Drywall and Paint.

Your Trucking insured, Bob's Truck and Trailer, has hired a truck and trailer out to Henry's Heavenly Haulers to deliver a load of hay to a Purdeu Chicken farm. After the delivery Bob has headed back to his ranch to take a few days of R&R. Which term describes Bob's travels back to his residence? (a) Bobcating. (b) Deadheading. (c) Travel-back and Travel-forward. (d) Streetcarting.

Deadheading.

ERISA's language includes a "_______ clause" which deems that employee plans and trusts are not to be construed as insurance companies or insurance. (a) Deemer clause. (b) Savings clause. (c) Preemption. (d) None of the above.

Deemer clause.

This Boiler and Machinery coverage extension provides a defense for the insured by the insurer for claims or suits arising out of covered occurrences. (a) Expediting Expenses. (b) Automatic Coverage. (c) Defense. (d) Supplementary Payments.

Defense.

A _______ insurer is one formed under the laws of the state the agent resides in. (a) Domestic. (b) Foreign. (c) Alien. (d) None of the above.

Domestic.

This Health insurance provision increases policy payout to double the death benefit for a stated number of fortuitous events: (a) Double Indemnity. (b) Reinstatement. (c) Waiver of Premium. (d) Elimination Period.

Double Indemnity.

Which Commercial Inland Marine policy covers loss to Electronic Data Processing equipment, and media including liability to third parties for the handling and storage of data? (a) Installment Sales Floater. (b) Signs Form. (c) Electronic Data Processing Insurance. (d) Floor Plan Form.

Electronic Data Processing Insurance.

True of False? Twisting is permitted by law but Sliding is considered an unfair practice.

False.

The Business Income coverage option "Maximum Period of Indemnity": (a) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13). (b) Enforces coinsurance by agreeing to stated value of net income/loss and operating expense. (c) Up to 690 days of Additional Coverage beyond the 30-day extended period. (d) Eliminates coinsurance but limits the coverage to 120 days (applies to extra expense and business income).

Eliminates coinsurance but limits the coverage to 120 days (applies to extra expense and business income).

The Business Income coverage option "Monthly Limit of Indemnity": (a) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/6, 1/4, 1/3). (b) Enforces coinsurance by agreeing to stated value of net income/loss and operating expense. (c) Up to 700 days of Additional Coverage beyond the 30-day extended period. (d) Eliminates coinsurance but limits the coverage to 100 days (applies to extra expense and business income).

Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/6, 1/4, 1/3).

Advantages of the Commercial Package Policy include all BUT which of the following: (a) Simplifies insured's administration of many. (b) Eliminates policy conditions. (c) Reduces coverage gaps and overlapping coverage. (d) Provides a premium savings.

Eliminates policy conditions.

Section II Liability of the Garage Policy does not apply to: (a) Negligence. (b) Employee injuries. (c) Both A & B. (d) Neither A or B.

Employee injuries.

The BAP's Section II Liability coverage does not apply to: (a) Negligence. (b) Employee injuries. (c) Both A & B. (d) Neither A or B.

Employee injuries.

Greg Dello, the manager of Green Eggs and Ham, has concluded that one of his employees has staged an injury to file a Workers Compensation claim. What is the time frame for the employer to contest a Workers Compensation claim under Florida law? Employers can contest a Florida WC claim by filing notice within ___ days after injury. (a) Employers can contest a Florida WC claim by filing a notice within 21 days after the date of injury. (b) Employers can contest a Florida WC claim by filing a notice within 30 days after the date of injury. (c) Employers can contest a Florida WC claim by filing a notice within 60 days after the date of injury. (d) Employers can contest a Florida WC claim by filing a notice within 365 days after the date of injury.

Employers can contest a Florida WC claim by filing a notice within 21 days after the date of injury.

The Florida law defines an employer as one who must secure benefits for employees as every person carrying on any: (a) Employment. (b) Team. (c) Industrial. (d) None of the above.

Employment.

Loss by force is described by which peril? (a) Perils of the Seas. (b) War. (c) Fire. (d) Enemies.

Enemies.

Comprehensive coverage covers all losses not considered a Collision except that which is: (a) Excluded. (b) Included. (c) Defined . (d) one of the above.

Excluded.

The Business Income coverage option "Extended Period of Indemnity": (a) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13). (b) Eliminates coinsurance by agreeing to stated value of net income/loss and operating expense. (c) Extends coverage up to 730 days of Additional Coverage beyond the 30-day extended period. (d) Eliminates coinsurance but limits the coverage to 100 days (applies to extra expense and business income).

Extends coverage up to 730 days of Additional Coverage beyond the 30-day extended period.

This Crime coverage endorsement covers all types of property when surrendered due to threat of bodily harm: (a) Extortion. (b) Funds Transfer Fraud. (c) Safe Depository. (d) Guest Property.

Extortion.

Stands for "Free Along Side"; assignment of responsibility to seller for all cost and risk until delivery along side and within reach of the loading tackle of an overseas vessel. (a) F.O.B. (b) C.I.F. (c) C.F. (d) F.A.S.

F.A.S.

Stands for Free on Board assignment of responsibility for cargo to buyer once cargo reach the designated contracted point of delivery: (a) F.O.B. (b) C.I.F. (c) C.F. (d) F.A.S.

F.O.B.

Which of the following may result in either a suspension, termination, or license revocation: (a) Failure of appointing companies to re-appoint at the five year renewal date. (b) Transacting insurance business for lines the agent holds a valid licensed for. (c) Failure to account for funds held in trust for an insurer or insured. (d) All of the above.

Failure to account for funds held in trust for an insurer or insured.

In the Dwelling Program Coverage D reimburses the insured for __________ of the insured property. (a) Additional living expenses. (b) Fair rental value. (c) Liability. (d) Medical payments .

Fair rental value.

True of False? "Bodily Injury" means physical injury to or loss of use of tangible property.

False.

True of False? A "domestic" insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.

False.

True of False? Business data is covered under the Homeowners policy form.

False.

True of False? Changes to hurricane deductibles can be made at any time during the Homeowners insurance policy term.

False.

True of False?: A loan officer may solicit or sell insurance in connection with a loan or she may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.

False.

True or False: Suretyship and Insurance are identical in every way as regards "securitization".

False.

True or False? A "foreign" insurer is one formed under the laws of the state the agent resides in.

False.

True or False? A Customer Representative does not need to clarify to the insuring public whether or not he or she is a General Lines Agent or a Customer Representative.

False.

True or False? A Supply Contract Bond guarantees the Principal's installation of contracted streets, sidewalks, sewers, streetlights and other infrastructure in a subdivision.

False.

True or False? A loan or application of credit can be made condition precedent on the procurement of insurance by a required insuring party.

False.

True or False? A moral hazard is an unconscious mental attitude which increase the probability and severity of loss.

False.

True or False? An insurance company owned by its policyholders is a Stock Insurance Company.

False.

True or False? An insured with unstacked UM coverage is injured by an uninsured motorists. The insured is only entitled to the UMBI coverage for the vehicle she was occupying.

False.

True or False? An insurer has 20 days from receiving formal notice from an insured to return the insured's pro-rata premium.

False.

True or False? Animal Liability is included in the personal lines Citizens policy form.

False.

True or False? Because the NFIP is a government program all communities are automatically eligible for the NFIP.

False.

True or False? Broad Form Theft may be written on an owner occupied or tenant occupied exposure.

False.

True or False? Building Ordinance and Law is automatically included in the DP-1, DP-2, and DP-3.

False.

True or False? Certification of financial responsibility is filed on behalf of an insured's by the state using Form SR-22 certifying coverage.

False.

True or False? Collision coverage can be taken out without purchasing Other Than Collision coverage BUT Other Than Collision coverage cannot be taken out without purchasing Collision coverage.

False.

True or False? Eligible insureds under the PAP include corporations and partnerships?

False.

True or False? Employee action against negligent third parties is extinguished by Workers Compensation.

False.

True or False? F.S. 627.7288 mandates a $50 deductible in the adjustment of all windshield glass claims.

False.

True or False? Flood insurance policies NEVER utilize Replacement Cost as a valuation method.

False.

True or False? Florida Statutes requires Homeowners Insurance Companies to pay full replacement cost less depreciation if the insured has suffered a loss and not repaired or replaced the damaged property.

False.

True or False? Florida law does not address Unfair Trade Practices or Acts.

False.

True or False? Florida law mandates first dollar coverage in the adjustment of all glass claims.

False.

True or False? Florida law requires General Lines Agents to be licensed but not agencies.

False.

True or False? Florida statute encourage rebating and no conditions apply.

False.

True or False? Fraud only applies to the filing of insurance claims.

False.

True or False? In Ocean Marine insurance a constructive total loss occurs when property value is less than the cost of the salvage .

False.

True or False? In the CGL "Personal Injury" covers bodily injury for oral or written libel, slander, or defamation; publication resulting in an invasion of privacy; misappropriation of advertising ideas or style; and infringement of copyright, title, or slogan.

False.

True or False? In the Commercial Property policy Subrogation can never be waived?

False.

True or False? In the Homeowners policy form Ordinance and Law cannot be increased from the 10% basic limit.

False.

True or False? Loss Settlement on the DP-1 is on a Replacement Cost basis.

False.

True or False? Mechanical Breakdown Insurance policy terms typically cover new cars up to 100,000 miles or three years.

False.

True or False? Medicare Supplement Insurance provides coverage for the gaps, deductibles, exclusions, and coinsurance in Federal Medicaid.

False.

True or False? Mercantile, wholesalers, service, and processing risks are INELIGIBLE for the BOP

False.

True or False? Most insurance related needs are met by private insurance companies offering insurance products in a competitive insurance marketplace commonly referred to as the "residual market".

False.

True or False? On average rates in rural areas are higher than rates in urban areas.

False.

True or False? Part E of the PAP requires the insured to retain legal council and precludes the insured from having any future losses.

False.

True or False? Property & Casualty policies have "grace periods" but Health policies do not.

False.

In the Federal Flood Insurance Program FIRM stands for: (a) Federal Insurance Rating Member. (b) Flood Insurance Rate Map. (c) Flood Insurance Rating Membership. (d) Flood Insurance Rules Membership.

Flood Insurance Rate Map.

Which Commercial Inland Marine policy covers loss to financed merchandise held for sale? (a) Installment Floater. (b) Signs Form. (c) Electronic Data Processing Insurance. (d) Floor Plan Form.

Floor Plan Form.

What does FIGA stand for? (a) Florida Insurance Golf Association. (b) Florida Insurance Grant Administration. (c) Florida Insurance Guaranty Association. (d) Florida Industry Golf Administration.

Florida Insurance Guaranty Association.

This type of excess liability provides coverage in excess of underlying limits applying the exact same coverages, conditions, provisions, and exclusions as the underlying policy. (a) Stand alone. (b) Follow form. (c) Both A & B. (d) Neither A or B.

Follow form.

A _______ insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state. (a) Domestic. (b) Foreign. (c) Alien. (d) None of the above.

Foreign.

This Crime primary insuring agreement covers loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments drawn by or drawn upon the named insured: (a) Inside The Premises- Theft of Money and Securities. (b) Computer Fraud. (c) Money Orders And Counterfeit Paper Currency. (d) Forgery or Alteration.

Forgery or Alteration.

Supplementary Payments

Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc.

Which bond is used like a license or permit bond when a governmental body awards a franchise to a utility? (a) License Bond. (b) Indemnity Bond. (c) Permit Bond. (d) Franchise Bond.

Franchise Bond.

The Ocean Marine clause which states that the parties with damaged property must bear 100% of the loss for accidental losses caused by stated perils is: (a) General Average Clause. (b) Free of Particular Average. (c) Sue and Labor. (d) Actual Total Loss.

Free of Particular Average.

This Homeowners policy form insures condominium owners? (a) HO-2. (b) HO-3. (c) HO-4. (d) HO-6

HO-6.

Which Homeowners policy form does not apply to an owner occupant? (a) HO2. (b) HO3. (c) HO4. (d) HO6.

HO-6.

Which Homeowners policy form does not apply to an owner occupant? (a) HO2. (b) HO3. (c) HO4. (d) HO6.

HO4.

This coverage covers the insured's liability for damage to aircraft in the care, custody, and control "stored for safekeeping or repair": (a) Medical Payments. (b) Admitted Aircraft Liability Coverage. (c) Aircraft Liability. (d) Hangarkeeper's Liability.

Hangarkeeper's Liability.

The Extra Expense Form: (a) Pays only ordinary expenses incurred to maintain ongoing operations. (b) Has a schedule which prorates the insured's recovery over time and against the policy limit on a percentage basis over time. (c) Both A & B. (d) Neither A or B.

Has a schedule which prorates the insured's recovery over time and against the policy limit on a percentage basis over time.

Your Homeowners insurance policyholder has asked if his 25 year old son is covered for liability while away as a full time student. (a) He is covered under Section II if he is a full time student. (b) He is covered under Section II if he is 25 or younger and a full time student. (c) He is not covered, the Homeowners policy provides Liability coverage for a student away at school if aged 24 or younger. (d) he Homeowners policy does not cover students away at school under Section II.

He is not covered, the Homeowners policy provides Liability coverage for a student away at school if aged 24 or younger.

Randall Rusty has suffered a temporary total disability in the course and scope of his employment at Tarzan's Toy Emporium when a shelving unit containing toy trains fell on him. How will he be compensated for his loss of wages? (a) He will paid 33 1/3% of his average weekly wages for up to 52 weeks. (b) He will paid 33 1/3% of his average weekly wages for up to 104 weeks. (c) He will paid 66 2/3% of his average weekly wages for up to 52 weeks. (d) He will paid 66 2/3% of his average weekly wages for up to 104 weeks.

He will paid 66 2/3% of his average weekly wages for up to 104 weeks.

Hospitalization Expense Insurance

Health insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies and related items.

Hospital Indemnity Insurance

Health insurance that pays a flat amount per day of hospitalization, regardless of expenses or other insurance. Its primary purpose is to supplement other coverage, which may be inadequate due to rising costs.

Particular Average

In Ocean Marine insurance, a partial loss that is not part of a general sacrifice of property (general average).

Indemnitor

In a Surety agreement, one who agrees to reimburse the surety for any loss it may suffer from having bonded the principal.

Bailees Policy

Inland Marine insurance obtained by a bailee, to cover loss or damage to customer's property in the baiIee's custody, without regard to liability.

Additional Personal Injury Protection. (a) Extends PIP medical benefits to 100% and work loss benefits to 80% - applicable to the named insured and family members only. (b) Increases the basic PIP benefit of $10,000 per person for additional amounts. (c) Both A and B. (d) Neither A or B.

Increases the basic PIP benefit of $10,000 per person for additional amounts.

Insurance is a contract whereby one undertakes to _________ another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. (a) Indemnify. (b) Liquidate. (c) Subrogate. (d) Litigate.

Indemnify.

Surety may require an _________, a party who agrees to reimburse on behalf of the Principal if a loss occurs. (a) Issuance. (b) Indemnitor. (c) Obliquee. (d) Assuree.

Indemnitor.

Which bond is used to indemnify a governmental body for liability imputed to it by the negligence of the Principal? (a) License Bond. (b) Indemnity Bond. (c) Permit Bond. (d) Franchise Bond.

Indemnity Bond.

This Homeowners policy endorsement specifies a percentage increase in Section I coverage based upon increases in values. (a) Inflation Guard. (b) Building Ordinance or Law. (c) Personal Property Replacement Cost. (d) Extended Replacement Cost.

Inflation Guard.

Terrance Thomas, your Mechanical Breakdown insured, has read his policy and is concerned that only original parts are covered. How will you respond? (a) Agree with him as only original parts are covered. (b) Inform him that original and replacement parts are covered. (c) Disagree with him and advise that only replacement parts are covered. (d) None of the above.

Inform him that original and replacement parts are covered.

Accounts Receivable Coverage Form

Inland Marine Coverage form insuring against the loss of uncollectable receivable when accounts receivable records are damaged

Electronic Data Processing Coverage

Inland Marine insurance designed to cover computer hardware and software.

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.

AII Risk Insurance

Insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with "Named Perils" insurance, which names the peril or perils insured against.

Builder's Risk Coverage Form

Insurance that provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package Policy.

Blanket Insurance

Insurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Blanket insurance also refers to a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.

Boiler and Machinery Coverage Form

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

Worker's Compensation 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 EmpIoyers' Liability.

Aviation Insurance

Insurance, which provides both liability and physical damage (also called Aircraft Hull insurance) coverage for aircraft. Liability coverage is available separately for hangar keepers and airport owners or operators.

A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies is the definition of? (a) Assurance. (b) Subrogation. (c) Insurance. (d) Reciprocal Exchange.

Insurance.

___________ is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. (a) Insurance. (b) Adhesion. (c) Subrogation. (d) Agency-Principal.

Insurance.

________ is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. (a) Forbearance. (b) Insurance. (c) Reduction. (d) Federalism.

Insurance. (Insurance is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.)

Which of the following is a reason to seek coverage in the Florida Auto JUA : (a) Insured can obtain automobile insurance in the private - competitive market but seeks a lower premium. (b) Insured cannot obtain automobile insurance in the private - competitive market. (c) Insured can obtain automobile insurance in the private - competitive market but seek broader coverage. (d) Both A and C.

Insured cannot obtain automobile insurance in the private - competitive market.

All BUT which of the following are duties of the insured after a loss? (a) Insured is required to retain an attorney. (b) Prompt notice. (c) Examination under oath. (d) Provide any requested proof of loss.

Insured is required to retain an attorney.

Liability insurance responds on behalf of an _______ liability to a third party. (a) Insured's. (b) Other Party's. (c) Plaintiff's. (d) All of the above.

Insured's Behalf.

The PAP affords liability coverage to those that have the status of? (a) Claimant. (b) Plaintiff. (c) Insured. (d) All of the above.

Insured.

An _______ includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity. (a) Bailee. (b) Obligee. (c) Insurer. (d) Bailor.

Insurer.

Liability Insurance

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

Under Florida's Workers' Compensation laws a sole proprietor or partner: (a) Is considered to be the employer and not an employee. (b) Is considered to be the employer and an employee. (c) There is no ruling concerning sole proprietors or partners. (d) None of the above.

Is considered to be the employer and not an employee.

Coverage F - Medical Payments to Others of the Homeowners policy pays for medical and other related expenses for third party injuries incurred through the insured's personal activities without regard to ______________. (a) Policy Limits. (b) Policy Territory. (c) Legal Liability. (d) None of the above.

Legal Liability.

The "Premises and Operations" liability exposure covered under the CGL covers: (a) Legal liabilities associated with the ownership, use, occupancy, possession, and control of the insured premises and operations. (b) Legal liability associated with the sale of dangerous products. (c) Legal liabilities associated with completed work of the insured. (d) None of the above.

Legal liabilities associated with the ownership, use, occupancy, possession, and control of the insured premises and operations.

The "Completed Operations" liability exposure covered under the CGL covers: (a) Legal liabilities associated with the use of the insured location. (b) Legal liability associated with the sale of dangerous products. (c) Legal liabilities associated with work performed by the insured and after completion of the work. (d) None of the above.

Legal liabilities associated with work performed by the insured and after completion of the work.

The "Products Liability" liability exposure covered under the CGL covers: (a) Legal liabilities associated with the use of the insured location. (b) Legal liability associated with the sale, distribution, and manufacture of unsafe and dangerous products. (c) Legal liabilities associated with completed work of the insured. (d) None of the above.

Legal liability associated with the sale, distribution, and manufacture of unsafe and dangerous products.

The basic definition of Actual Cash Value is "current cost to replace": (a) With no allowance for depreciation. (b) Less depreciation. (c) Per stated or agreed value. (d) None of the above.

Less depreciation. (Actual Cash Value as a valuation method is generally defined as the current costs to replace the item, less an allowance for depreciation.)

Which of the following is/are true concerning Section II - Liability of the Homeowners Insurance policy? (a) Liability Coverage is predicated upon the negligence of an insured. (b) Medical Payments Coverage is predicated upon the negligence of an insured. (c) Both A & B. (d) either A or B.

Liability Coverage is predicated upon the negligence of an insured.

Professional Liability

Liability arising out of the rendering or failure to render services of a professional nature.

Your Homeowners Insured's teenager was fooling around with the insured's motorized wheelchair. The teen unfortunately ran into the side of a BMW doing several thousand dollars of damage. How will Section II of the Homeowners policy respond? (a) Liability stemming from the use of a motorized vehicle owned by the insured to which normally is used to assist a handicapped family member is covered. (b) Liability coverage for motorized vehicles used to assist the handicapped is limited to its usage while actually being used to assist a handicapped person. (c) All motorized vehicles are excluded for Liability coverage under the Homeowners policy. (d) Florida Statute requires the Homeowners Insurer to pay for property damaging stemming from liability involving motorized equipment.

Liability coverage for motorized vehicles used to assist the handicapped is limited to its usage while actually being used to assist a handicapped person.

Contingent Liability

Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.

Which of the following coverages appear on the PAP declaration page? (a) Liability, Medical Payments, Uninsured Motorists, Comprehensive, and Collision. (b) Dwelling, Other Structures, Personal Property, Loss of Use, Liability, Medical Payments. (c) Dwelling, Other Structures, Personal Property, Fair Rental Value, and Additional Living Expenses. (d) None of the above.

Liability, Medical Payments, Uninsured Motorists, Comprehensive, and Collision.

In the Homeowners policy Section II provides _______ coverage at the insured residence and for the personal activities of the insured. (a) Property. (b) Additional living expenses. (c) Liability. (d) None of the above.

Liability.

______________ is a policy provision which broadens coverage without additional premium. (a) Subrogation. (b) Cancellation. (c) Liberalization. (d) None of the above.

Liberalization. (Liberalization is a policy provision which states that if the insurer adopts a revision to the insurance policy which would broaden coverage without additional premium.)

Which bond is used to protect the general public against unlicensed contractors and unfair business practices? (a) License Bond. (b) Indemnity Bond. (c) Permit Bond. (d) Franchise Bond.

License Bond.

This Boiler and Machinery endorsement redefines "accident" to cover only "sudden and accidental tearing asunder" of the object. (a) Limited Coverage Endorsement. (b) Actual Cash Endorsement. (c) Additional Expediting Expense Endorsement. (d) Water Damage Endorsement.

Limited Coverage Endorsement.

Disability Insurance

Line of insurance, which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.

This CGL form provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages for having caused or contributed to a person's intoxication? (a) Owners and Contractors Protective Liability Form (OCP). (b) Products/Completed Operations Coverage Form. (c) Liquor Liability Coverage Form. (d) Pollution Liability Coverage Form.

Liquor Liability Coverage Form.

Which of the following IS NOT a "usage" used by ISO in the promulgation of PAP rates? (a) Pleasure. (b) Commuting. (c) Business. (d) Livery.

Livery.

In the Farm Policy the Livestock Coverage form covers: (a) Livestock. (b) Mobile Equipment. (c) Both A & B. (d) Neither A or B.

Livestock.

Underwriting radius of operation includes all BUT which of the following? (a) Local = within 50 miles. (b) Local = within 25 miles. (c) Intermediate = 50 to 200 miles. (d) Long distance = over 200 miles.

Local = within 25 miles.

The BAP policy includes all BUT which of the following "usage" categories: (a) Retail. (b) Long-haul. (c) Commercial. (d) Service.

Long-haul.

An insured has just purchased a DP-1 policy for a dwelling she owns and has asked what the Loss Settlement basis is, you advise her: (a) Loss Settlement on the DP-1 is Agreed Value. (b) Loss Settlement on the DP-1 is Actual Cash Value. (c) Loss Settlement on the DP-1 is Replacement Cost Value. (d) Loss Settlement on the DP-1 is on a Stated Value.

Loss Settlement on the DP-1 is Actual Cash Value.

Additional Coverages under Section II Liability in the Homeowners policy include: (a) claims expense, (b) first aid expenses, (c) damage to property of others, and _____________. (a) Employment practices liability. (b) Professional liability. (c) Loss assessment. (d) None of the above.

Loss assessment.

Crime coverage Forgery or Alteration covers: (a) Loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments drawn by or drawn upon the named insured. (b) Loss of or damage to money, securities, and other property resulting from theft committed by an employee. (c) Loss of money, securities, and property outside the premises in the care, custody and control of a messenger or armored car. (d) None of the above.

Loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments drawn by or drawn upon the named insured.

Coverage D in the Homeowners policy covers: (a) Dwelling. (b) ther Structures. (c) Personal Property. (d) Loss of Use.

Loss of Use.

An example of an indirect loss is? (a) Physical damage after a collision. (b) Loss of use. (c) Both A & B. (d) Neither A or B.

Loss of Use. (An indirect loss is the economic loss which flows as a consequence of direct loss.)

Crime coverage "Inside The Premises- Theft of Money and Securities" covers: (a) Loss of money and securities resulting from theft, disappearance, or destruction. (b) Worldwide coverage of loss of money, securities and other property by use of a computer to fraudulently convert assets. (c) Loss resulting from receiving payment with counterfeit currency or money orders. (d) None of the above.

Loss of money and securities resulting from theft, disappearance, or destruction.

Crime coverage "Outside The Premises" covers: (a) Loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments drawn by or drawn upon the named insured. (b) Loss of or damage to money, securities, and other property resulting from theft committed by an employee. (c) Loss of money, securities, and property outside the premises in the care, custody and control of a messenger or armored car. (d) None of the above.

Loss of money, securities, and property outside the premises in the care, custody and control of a messenger or armored car.

Crime coverage "Employee Theft" covers: (a) Loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments drawn by or drawn upon the named insured. (b) Loss of or damage to money, securities, and other property resulting from theft committed by an employee. (c) Loss of money, securities, and property outside the premises in the care, custody and control of a messenger or armored car. (d) None of the above.

Loss of or damage to money, securities, and other property resulting from theft committed by an employee.

The PAP defines a "your covered auto" to include temporary substitutes if an insured vehicle is unavailable due to? (a) Vacation. (b) Business Travel. (c) Loss or Destruction. (d) All of the above.

Loss or Destruction.

Crime coverage "Money Orders And Counterfeit Paper Currency" covers: (a) Loss of money and securities resulting from theft, disappearance, or destruction. (b) Worldwide coverage of loss of money, securities and other property by use of a computer to fraudulently convert assets. (c) Loss resulting from receiving payment with counterfeit currency or money orders. (d) None of the above.

Loss resulting from receiving payment with counterfeit currency or money orders.

The Broad Form Cause of Loss EXCLUDES Collapse if caused by or to: (a) Hidden Decay. (b) Insect or Vermin. (c) Weight of people, property, or rain that collects on a roof. (d) Loss to outdoor and exterior property.

Loss to outdoor and exterior property.

Direct Loss

Loss, which is a direct result of a peril. Also includes loss due to efforts to end the peril or unavoidable exposure following a peril.

Indirect Loss

Loss, which is a result or consequence of a direct loss.

Risk means the chance of financial: (a) Gain. (b) Loss. (c) Gain and loss. (d) Neither gain or loss.

Loss.

The Crime policy Loss Sustained Form covers: (a) Losses that both occurred and were discovered during the policy period, or within one year of its expiration. (b) Losses discovered during the policy period or within four years after its expiration are covered regardless of when the loss occurred. (c) Both A & B. (d) Neither A or B.

Losses that both occurred and were discovered during the policy period, or within one year of its expiration.

Which bond guarantees the Principal's maintenance of faulty work and replacement of defective materials if required by law or contract? (a) Payment Bond. (b) Maintenance Bond. (c) Subdivision Bond. (d) None of the above.

Maintenance Bond.

Ocean Marine Insurance

Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, Freight and Liability coverage (Protection and Indemnity).

Residual Markets are intended to be: (a) Markets of first resort. (b) Markets of last resort. (c) Buyers markets. (d) Sellers markets.

Markets of last resort.

In the Commercial Property Insurance coverage form EXCLUDED property includes all BUT which of the following? (a) Crops. (b) Wharves or Docks, (c) Outdoor trees, shrubs, and plants. (d) Materials, equipment, and supplies on the insured premises used to alter or repair the insured building.

Materials, equipment, and supplies on the insured premises used to alter or repair the insured building.

Your insured has suffered a mechanical breakdown to his transmission. To be compensated he must do all BUT which of the following? (a) Cooperate with the insurer. (b) Submit a proof of loss. (c) Mitigate inspection prior to loss. (d) Permit inspection by the insurer.

Mitigate inspection prior to loss.

In the Farm Policy the Mobile Agricultural Machinery and Equipment coverage from covers: (a) Livestock. (b) Mobile Equipment. (c) Both A & B. (d) Neither A or B.

Mobile Equipment.

An insured has the following limits: General Aggregate Limit $1,000,000 Products-Completed Operations Limit $ 500,000 Personal and Advertising Injury Limit $ 500,000 Per Occurrence Limit $ 500,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A business invitee has come to the inured location to transact business. As the invitee walked across the insured's parking lot she tripped. No obstructions were found to contribute to the fall and the injured party has conceded that she tripped due to her lack of attention. Her medical expenses have eclipsed $10,000. Under what coverage is she likely to receive compensation? (a) Medical Payments only due to the lack of legal responsibility for the fall. (b) Products - Completed Operations. (c) Personal and Advertising Injury. (d) Fire Legal.

Medical Payments only due to the lack of legal responsibility for the fall.

This coverage provides medical expenses for bodily injuries by accident irrespective of legal liability: (a) Admitted Aircraft Liability Coverage. (b) Medical Payments. (c) Aircraft Liability. (d) None of the above.

Medical Payments.

Under Florida's Workers' Compensation laws the three categories of benefits are: (a) Medical expenses, disability, and death benefits. (b) Medical expenses, legal expenses, filing expenses. (c) Municipal expenses, disability, and filing expenses. (d) None of the above.

Medical expenses, disability, and death benefits.

Hospital Professional Liability insurance covers legal liability resulting from: (a) Automobile accident. (b) Employee injury. (c) Medical incidents. (d) All of the above.

Medical incidents.

Physicians, Surgeons and Dentist professional liability insurance covers legal liability resulting from? (a) Automobile accident. (b) Employee injury. (c) Medical incidents. (d) All of the above.

Medical incidents.

This Miscellaneous Medical Professions professional liability coverage form is defined as an act or omission related to clinical-pathological exams and X-ray services? (a) Blood Banks. (b) Medical or X-Ray Laboratories. (c) Optometrists. (d) Veterinarians.

Medical or X-Ray Laboratories.

This PAP endorsement covers equipment such as motor homes, motorcycles, golf carts and all-terrain vehicles. (a) Named Non-Owner Coverage. (b) Miscellaneous Type Vehicle. (c) Drive Other Car. (d) Outdoor vehicle coverage endorsement.

Miscellaneous Type Vehicle.

This PAP endorsement covers equipment such as mo¬tor homes, motorcycles, golf carts and all-terrain vehicles: (a) Named Non-Owner Coverage. (b) Miscellaneous Type Vehicle. (c) Drive Other Car. (d) Outdoor vehicle coverage endorsement.

Miscellaneous Type Vehicle.

An untrue statement made by the insured in an application which does not become part of the policy is: (a) Concealment. (b) Misrepresentation. (c) Fraud. (d) Both B & C.

Misrepresentation.

Which of the following is not a fair method of competition: (a) Comparisons between product pricing. (b) Comparisons between policy features. (c) Comparisons between policy benefits. (d) Misrepresentations and false advertising of insurance policies.

Misrepresentations and false advertising of insurance policies

Unfair methods of competition and/or deceptive acts include which of the following: (a) Comparisons between product pricing. (b) Comparisons between policy features. (c) Comparisons between policy benefits. (d) Misrepresentations and false advertising of insurance policies.

Misrepresentations and false advertising of insurance policies.

This Crime primary insuring agreement covers loss resulting from receiving payment with counterfeit currency or money orders: (a) Inside The Premises- Theft of Money and Securities. (b) Computer Fraud. (c) Money Orders And Counterfeit Paper Currency. (d) Forgery or Alteration.

Money Orders And Counterfeit Paper Currency.

Carter Ken has been injured in the course and scope of his employment while operating a motor vehicle. The other motorists has been determined to be responsible for Mr. Ken's injuries. Is Mr. Ken's only remedy the Workers Compensation provided by his employer? (a) Mr. Ken's sole remedy is his company's Workers Compensation insurance. (b) Mr. Ken can collect under his company's Workers Compensation OR he can make a claim against the responsible motorists. (c) Mr. Ken must make a claim against his own automobile insurance company under his PIP. (d) Mr. Ken can collect against both his company's Workers Compensation and the responsible motorists.

Mr. Ken can collect under his company's Workers Compensation OR he can make a claim against the responsible motorists.

An insurance company owned by its policyholders is a? (a) Mutual Insurer. (b) Reciprocal Exchange. (c) Stock Insurance Company. (d) Lloyds of London.

Mutual Insurer.

Your agency has a company appointment with an insurance company owned by its policyholders, this type of insurance company is a? (a) Mutual Insurer. (b) Reciprocal Exchange. (c) Stock Insurance Company. (d) Lloyds of London.

Mutual Insurer.

Write Your Own Flood programs are backed 100% by: (a) NFPI. (b) NFIP. (c) PFP. (d) FAIA.

NFIP.

This PAP endorsement provides Liability, Medical Payments and UM coverages for a named individual who does not own an automobile, to cover for operation of autos owned by others? (a) Named Non-Owner Coverage. (b) Miscellaneous Type Vehicle. (c) Drive Other Car. (d) Outdoor vehicle coverage endorsement.

Named Non-Owner Coverage.

The BAP's Named Individuals Broadened PIP: (a) Covers person named in the endorsement for use of automobiles which are not covered autos under the BAP and which they do not own. (b) Broadens BAP coverages for PAP style protection . (c) Named parties (spouse and resident family members) are treated as named insureds for PIP coverage. (d) None of the above.

Named parties (spouse and resident family members) are treated as named insureds for PIP coverage.

Vicarious Liability

Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability.

Ready Ralph Reiger, your insured, has not exercised the degree of care to protect his neighbor from injury on his property; this is know as? (a) Breach of Contract. (b) Strict Liability. (c) Negligence. (d) Res Ipsa Loquitor.

Negligence. (Negligence is the failure to exercise that degree of care that the law requires to protect others from an unrea¬sonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.)

By listing the Loss Payee on the PAP's Declarations page. (a) The Loss Payee is solely paid for losses incurred under Coverage D. (b) The Loss Payee's collateral is not protected. (c) Both A & B. (d) Neither A or B.

Neither A or B.

In the BAP Comprehensive covered perils include: (a) Wear and Tear. (b) Inherent Vice. (c) Both A & B. (d) Neither A or B.

Neither A or B.

Mechanical Breakdown insurance is compensable up to? (a) Replacement dollar value. (b) Not to exceed the RCV of the insured vehicle. (c) Both A and B. (d) Neither A or B.

Neither A or B.

Other Than Collision covered perils include? (a) Wear and Tear. (b) Inherent Vice. (c) Both A & B. (d) Neither A or B.

Neither A or B.

Residual Markets are created to address? (a) Insurable exposures. (b) Desirable underwriting characteristic. (c) Both A and B. (d) Neither A or B.

Neither A or B.

The Crime policy values: (a) Securities at their face value. (b) Other property at its face value. (c) Both A and B. (d) Neither A or B.

Neither A or B.

The Florida Financial Responsibility Law can be satisfied by which of the following? (a) Auto liability limits of $10,000 PIP and $10,000 PD. (b) Qualified self-insurer for $10,000 PIP and $10,000 PD. (c) Both A & B. (d) Neither A or B.

Neither A or B.

Under Florida's Workers' Compensation laws penalties for non-compliance include: (a) Business is guilty of third-degree misdemeanor. (b) Business can be put on probation. (c) Both A and B. (d) Neither A or B.

Neither A or B.

FWCJUA Tier Two eligible insureds: (a) Must have modification factors below 1.00. (b) No lost time claims. (c) Both A & B. (d) Neither A or B.

No lost time claims.

You are taking an application for a restaurant which meets the requirement for "limited cooking" are they eligible for BOP coverage? (a) No because restaurants are ineligible. (b) No because "limited cooking" restaurants are ineligible. (c) Yes, because "limited cooking" restaurants are eligible. (d) None of the above.

No because restaurants are ineligible.

Your insured has an Inland Marine policy covering Furs. She inherited several pieces six months ago and never added them to her policy. She has just suffered a theft of those same furs. How will the policy respond? (a) No coverage as her ownership exceeds the 30 days of automatic coverage. (b) Covered if under the loss is the lesser of 25% of the coverage limit or $10,000. (c) Both A & B. (d) Neither A or B.

No coverage as her ownership exceeds the 30 days of automatic coverage.

Art Brown, your Personal Inland Marine insured, has suffered a theft loss to an insured painting at an art exhibit away from the insured premises. How will the policy respond? (a) No coverage as property on exhibition away from the insured premises is specifically excluded. (b) The policy will pay less the "exhibit" deductible. (c) The policy will not pay more than the exhibit amount listed in schedule D. (d) None of the above.

No coverage as property on exhibition away from the insured premises is specifically excluded.

The insured has asked if Legal Expenses are covered in the Crime policy form. Your response is? (a) Legal Expenses are covered as the policy is written on an "all risk" basis. (b) Legal Expenses are covered as primary insuring agreements in the Crime policy form. (c) No coverage in the Crime policy form as Legal Expenses are specifically excluded. (d) None of the above.

No coverage in the Crime policy form as Legal Expenses are specifically excluded.

An insured has a $500 Franchise deductible and suffers a loss of $400, how much will the insured be paid on their claim? (a) $400. (b) No payment will be paid. (c) $500. (d) None of the above.

No payment will be made. (No payment will be paid as the loss amount did not exceed the franchise deductible. If the franchise deductible had been exceeded then 100% of the loss would be paid.)

You, a General Agent, have hired a Customer Representative with an understanding that the Customer Representative's compensation will be predominately commission based. Is commission based compensation permitted for Customer Representatives? (a) Any agreement between a Customer Representative and the agency-employer is permitted. (b) Compensation based solely upon premium or other production is permissible per F.S. 626.7354. (c) No, 100% production based compensation (i.e. commission based) is not permitted per 626.7354. (d) None of the above.

No, 100% production based compensation (i.e. commission based) is not permitted per 626.7354

Mr. Wilson while applying for an insurance policy has unknowingly advised his insurance agent that no operator in his household has had any tickets or accidents. Unknown to Mr. Wilson, a residing family member was involved in an accident while committing a crime. Is Mr. Wilson guilty of fraud? (a) No, as he has unknowingly provided inaccurate information of a material nature. (b) Yes, as he has concealed a material fact. (c) Yes, as he has purposefully attempted to procure insurance with misinformation. (d) None of the above.

No, as he has unknowingly provided inaccurate information of a material nature.

Mrs. Byrd was involved in an auto accident three years ago and never reported the claim. A judgement has been rendered against her finding her civilly responsible for $10,000 of property damage. She has just reported the claim; has she met the conditions of her auto policy? (a) Yes, she reported the claim when she received the verdict. (b) Yes, she reported the claim within three years. (c) No, as her policy requires her to provide "prompt notice of loss". (d) Her policy does not address "notice of loss".

No, as her policy requires her to provide "prompt notice of loss".

The insured has incurred extraordinary expenses with the use of a public adjuster and seeks compensation for those expenses in their Crime claim. Will the Crime policy form pay for those expenses? (a) Yes, if they are reasonable. (b) Yes, they are specifically covered by the Crime policy form. (c) No, as the Crime policy form specifically excludes cost incurred to establish the amount of loss. (d) None of the above.

No, as the Crime policy form specifically excludes cost incurred to establish the amount of loss.

An accident has occurred at an insured business. The accident was significant and was the proximate cause of death of the injured employee. The death took place three years after the accident. Is there a death benefit due the decedent's family? (a) Yes, because the death occurred within 3 years of accident. (b) Yes, because the death occurred within 5 years of accident. (c) No, because the death occurred after 1 year of the accident date. (d) There is no time element associated with the compensable death benefit in the Workers; Compensation policy as long as the accident occurred within the course and scope of the employment

No, because the death occurred after 1 year of the accident date.

Klassic Kars, your Garage Policy insured, has filed a claim under Section III Garagekeeps, in which the insured has agreed to a "contractual liability"; is this exposure covered? (a) Yes, all liability exposures are covered under Section III. (b) No, contractual liability exposures are excluded. (c) Yes, but subject to a $100 liability deductible. (d) Yes, but subject to a $500 liability deductible.

No, contractual liability exposures are excluded.

You insured's guest has tripped over her own shoe laces at the insured's residence. The insured has agreed in writing to pay all medical bills, lost wages, and pain and suffering to the guest. Has the insured met the conditions of his policy? (a) Yes, he has merely started the claim for the insurer. (b) No, he has prejudiced the insurer's rights. (c) Yes, first aid and ancillary damages are always covered. (d) No, because he is not a licensed claims adjuster.

No, he has prejudiced the insurer's rights. (The insured has prejudiced the insurer's rights by agreeing in writing to be responsible for the guest's damages. An insured is required to preserve the insurance company's rights at all times.)

Greg Zimmer has a commercial vehicle which weighs 10,001 pounds. Is the vehicle FAJUA eligible for Physical Damage coverage? (a) Yes, it is over 5,000 pounds. (b) Yes, it is over 10,000 pounds. (c) Yes it is under 20,000 pounds. (d) No, it is over 10,000 pounds.

No, it is over 10,000 pounds.

Liability in the BAP is extended to all BUT which of the following: (a) Non-owned autos on a primary basis. (b) Trailers with a load capacity at or under 2,000 pounds. (c) "Mobile equipment" while it is being carried or towed by a covered auto. (d) Any temporary substitute auto.

Non-owned autos on a primary basis.

An insurer can put an insured on notice of cancellation within 10 days for which reason? (a) Sex. (b) Occupation. (c) Marital Status. (d) Non-payment of premium.

Non-payment of premium.

Cindy of Cindy's Salads, Soups and Sandwiches is the sole officer of her company and she has exempted herself from Workers Compensation with Florida's Department of Labor. Cindy was driving to the bank when she was severely injured in an automobile accident. Can she file a compensable claim with her company's Workers Compensation policy? (a) Yes, if she pays herself income in the form of wages. (b) Yes, if the company has more than three employees. (c) No, she has exempted herself from the Workers Compensation system.Additional Expediting Expense Endorsement. (d) No, she was injured in an auto accident which is compensable under a commercial auto policy.

No, she has exempted herself from the Workers Compensation system.

If a General Lines Agent moves from the state of Florida to another state can he or she keep their General Lines Agent license and continue to transact personal lines insurance business in Florida? (a) No, the General Lines Agent license requires the agent to be domiciled in the state of Florida. (b) Yes, but the licensed can only be used to transact Florida business and not the new state of residency. (c) No, but commercial lines business could be transacted. (d) Yes, but only if placed through an agency domiciled in Florida.

No, the General Lines Agent license requires the agent to be domiciled in the state of Florida.

You have been contacted by Jane Smith who is inquiring into a Homeowners policy for the duplex she just purchased. Jane has taken on three boarders to help make her mortgage payment. Is she eligible for a Homeowners policy? (a) Yes, roomers and boarders are permissible under the Homeowners policy. (b) Yes, but not if she has more than four roomers or boarders. (c) No, the Homeowners policy permits up to two roomers and boarders. (d) No, the Homeowners policy does not permit any roomers or boarders.

No, the Homeowners policy permits up to two roomers and boarders.

An insured with a Dwelling policy has filed a claim for theft by their tenant. The policy has the Limited Theft endorsement will the claim be paid? (a) Yes, Limited Theft endorsement covers loss caused by tenant. (b) No, the Limited Theft endorsement excludes loss caused by tenant. (c) There is no endorsement in the Dwelling policy to cover theft. (d) None of the above.

No, the Limited Theft endorsement excludes loss caused by tenant.

A potential customer has contacted you to purchase a Homeowners policy. She advises you she has a quote from an authorized insurer. Can you writer her a Citizens policy? (a) Yes, the quote from the authorized insurer is not a bar to obtaining a Citizen's policy. (b) Yes, the quote from the authorized insurer is required before you can write a Citizen's policy. (c) No, the quote from the authorized insurer is a bar to obtaining a Citizen's policy. (d) None of the above.

No, the quote from the authorized insurer is a bar to obtaining a Citizen's policy.

Your agency has provided an unconditional quote from an authorized insurer to a potential customer; can you write her a policy with Citizens? (a) Yes, the quote from the authorized insurer is not a bar to obtaining a Citizen's policy. (b) Yes, the quote from the authorized insurer is required before you can write a Citizen's policy. (c) No, the quote from the authorized insurer is a bar to obtaining a Citizen's policy. (d) None of the above.

No, the quote from the authorized insurer is a bar to obtaining a Citizen's policy.

Klassic Kars, your Garage Policy insured, has filed a claim under Section III Garagekeeps, for a loss in which the insured's employees have been found to be responsible for the theft of a customers 1968 Ford Shelby Mustang; is this exposure covered? (a) Yes, all liability exposures are covered under Section III. (b) No, theft or conversion by the insured, the insured's employees or shareholders is specifically excluded. (c) Yes, but subject to a $100 liability deductible. (d) Yes, but subject to a $500 liability deductible.

No, theft or conversion by the insured, the insured's employees or shareholders is specifically excluded.

A potential FWCJUA insured has contacted you to obtain coverage. The proposed insured has received a declination for coverage from one insurer are they eligible for a FWCJUA policy? (a) Yes, they have received a declination from an authorized insurer. (b) Yes, but they must also not be indebted for their previous WC policy. (c) No, they law requires they have two declinations. (d) None of the above.

No, they law requires they have two declinations.

Kardio Kids is a non-profit organization whose mission is to reach kids with the message of "fitness for life". Kardio's founder Karen Kelly utilizes a network of volunteers to deliver Kardio's message (Kardio has no employees). Is Kardio required to carry Workers Compensation insurance to cover the volunteers? (a) Yes, the Florida Workers' Compensation laws consider volunteers to be employees. (b) Yes, but the law requires three or more volunteers. (c) Yes, but the law requires the volunteers to be engaged in the organization for more than 30 hours per week. (d) No, volunteers are excluded from consideration of Workers Compensation.

No, volunteers are excluded from consideration of Workers Compensation.

Your insured owns a boat with an inboard/outboard motor which is 25 feet long. Will Section II - Liability of the Homeowners policy provide coverage for the insured's legal liability while operating the watercraft? (a) Yes, as it is under 26 feet. (b) Yes, as it is under 30 feet. (c) Yes, as it is under 45 feet. (d) No, watercraft liability is excluded under Section II of the Homeowners policy for an owned watercraft with an inboard/outboard motor.

No, watercraft liability is excluded under Section II of the Homeowners policy for an owned watercraft with an inboard/outboard motor.

Salon Salon is a hip and chic salon owned by Jimmy, Janey, and Joey Jackson. Salon Salon is a new salon which has only been opened for six months. The salon employees two full-time stylist in addition to the owners. The owners have exempted themselves for the purposes of Workers Compensation. Is Salon Salon required to carry Workers Compensation? (a) Yes, there are a total of five employees exceeding the states requirement of four or more employees. (b) Yes, the owners may be exempt but Salon Salon employees more than two employees. (c) No, there remains a total of two employees after excluding the three owners. (d) No, employees of salons are exempt from inclusion in the Workers Compensation law.

No. There remains a total of two employees after excluding the three owners.

This Health Insurance coverage continuation provision states the policy is renewable to a stated attained age of the insured (i.e. 65) - premiums cannot be increased by age or class: (a) Cancellation Clause. (b) Optionally Renewable. (c) Conditionally Renewable. (d) Non-Cancellable.

Non-Cancellable.

Which of the following are true of Disability Income policies: (a) Lump sum payments are not common for loss of sight/hands/feet. (b) Occupation of insured is not significant in underwriting . (c) Non-prorating policies do not increase if occupation increases. (d) All of the above.

Non-prorating policies do not increase if occupation increases.

An applicant has advised you that their 56 year old house has not been upgraded. What is your response? (a) No problem as long as the properties is not in disrepair. (b) No problem as long as the properties is not over 75 years of age. (c) Properties over 50 years of age without upgrades are ineligible for a policy with Citizens. (d) None of the above.

None of the above.

Basic, Broad, and Special Form Causes of Loss EXCLUDE? (a) Fire. (b) Lightning. (c) Explosion. (d) None of the above.

None of the above.

Florida law recalls how many days notice of non-renewal? (a) 30. (b) 60. (c) 90. (d) None of the above.

None of the above.

In the Commercial Property policy the additional coverage, Increased Cost of Construction, covers increased building cost due to an enforced ordinance or law which affects repairs up to __% of the limit of insurance or $______ (whichever is less). (a) 10% and $20,000. (b) 30% and $40,000. (c) 50% and $50,000. (d) None of the above.

None of the above.

Major Medical Insurance is characterized by which of the following? (a) High maximum policy limits. (b) Treatment in a VA or government hospital. (c) Intentionally self-inflicted injury. (d) None of the above.

None of the above.

Major Medical Insurance typically covers: (a) Injury or disease payable under Workers Compensation. (b) Treatment in a VA or government hospital. (c) Intentionally self-inflicted injury. (d) None of the above.

None of the above.

Mary Mowinski has requested her FAJUA policy have Medical Payments coverage with a $5,000 limit. You advise her... (a) Medical Payments max is $500 in the FAJUA policy. (b) Medical Payments max is $1,000 in the FAJUA policy. (c) Medical Payments is not available in the FAJUA policy. (d) None of the above.

None of the above.

Which if any of the following are typically covered by Mechanical Breakdown Insurance? (a) Seats. (b) Windshield. (c) Tires. (d) None of the above.

None of the above.

Mechanical Breakdown covers the failure of? (a) Comprehensive. (b) Collision. (c) Specified Perils. (d) None of the above.

None of the above. (Mechanical Breakdown covers mechanical breakdown and excludes collision and specified perils.)

Your insured had suffered a mechanical breakdown compensable under the policy. She has already replaced the damaged drive axle to her vehicle. How will the policy respond? (a) Covered because drive axles are covered. (b) Not covered because the insurer could not inspect the damaged part. (c) Not covered because drive axles are normally excluded.

Not covered because the insurer could not inspect the damaged part.

Roof Decks attached with 6d common nails at six inch intervals along the panel edges and 12 inch intervals in the field: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.

Not eligible for mitigation credits.

An insured has come to the office to file a claim. She expresses concern that the legal fees defending her will probably consume all of her policy limits. You tell her... (a) She is right and her limit will probably be consumed by defense cost. (b) Not to worry because the PAP's liability coverage includes a defense for her up to her policy limits. (c) If her defense cost consumer her auto policy limits she can file a liability claim under her Homeowners policy also. (d) None of the above.

Not to worry because the PAP's liability coverage includes a defense for her up to her policy limits.

Homeowners insurance is rated on all BUT which of the following: (a) Fire protection. (b) Number of occupants. (c) Mode of construction (frame, masonry...). (d) Geographic location.

Number of occupants.

Boiler and Machinery covers the direct and indirect losses to insured? (a) Incidents. (b) Objects. (c) Articles. (d) None of the above.

Objects.

The Suspension Condition states coverage: (a) On an object can be suspended if the object is "in" or "exposed to" a dangerous condition. (b) RCV unless repair or replacement is not made within 18 months of the date of accident. (c) Both A & B. (d) Neither A or B.

On an object can be suspended if the object is "in" or "exposed to" a dangerous condition.

Premises Theft and Robbery Outside the Premises Coverage

One of the Commercial Crime Coverage forms, which are a part of the Commercial Package policy. Covers property other than money and securities against any act of stealing from within the premises and robbery outside the premises.

Premises Burglary Coverage Form

One of the Commercial Crime Coverage forms, which are a part of the Commercial Package policy. Provides coverage for property other than money and securities if caused by burglary or attempted burglary or robbery of a watchperson.

In the PAP's Declarations a Loss Payee is? (a) One who has an academic interest in an insured vehicle. (b) One who has employment interest with the insured. (c) The Loss Payee is a claimant against the PAP's liability coverages. (d) One who has an economic interest in an insured vehicle.

One who has an economic interest in an insured vehicle.

In the Commercial Property policy personal property of others is covered? (a) Only at the insured location. (b) Anywhere in the world. (c) Both A & B. (d) Neither A or B.

Only at the insured location.

The BOP is written on an __________ perils basis. (a) Simple (b) Expanded (c) Open (d) None of the above

Open.

This Health Insurance coverage continuation provision states the policy is not cancellable during the term but can be non-renewed at expiration: (a) Cancellation Clause. (b) Optionally Renewable. (c) Conditionally Renewable. (d) Guaranteed Renewable.

Optionally Renewable.

This Miscellaneous Medical Professions coverage form is defined as an act or omission in the rendering of optometric services? (a) Blood Banks. (b) Medical or X-Ray Laboratories. (c) Optometrists. (d) Veterinarians.

Optometrists.

All of the following are EXCLUDED for BI and PD claims in the CGL EXCEPT: (a) Recall. (b) Delay. (c) Pollution. (d) Ordinary Negligence.

Ordinary Negligence.

Bodily Injury and Property Damage are EXCLUDED by all BUT which of the following in the CGL: (a) Defects and Delays. (b) Ordinary Negligence. (c) Pollution. (d) Employee injuries.

Ordinary Negligence.

Bodily Injury and Property Damage are EXCLUDED by all BUT which of the following in the CGL: (a) Intentional injury. (b) Ordinary Negligence. (c) Contractual. (d) Product Recall.

Ordinary Negligence.

Bodily Injury and Property Damage are EXCLUDED in the CGL by all BUT which of the following: (a) Mobile equipment. (b) Ordinary Negligence. (c) Electronic data. (d) Intentional injury.

Ordinary Negligence.

Private Passenger Autos

Ordinary cars, station wagons and jeeps, utility autos and utility trailers designed to be pulled by a private passenger auto.

In the Farm Policy, silos, barns, and fences are covered by coverage: (a) Coverage A Dwelling. (b) Coverage C Household private property. (c) Coverage D Loss of Use. (d) Coverage G Other Farm Structures.

Other Farm Structures.

Liability insurance responds on behalf of an Insured's liability to an ___________. (a) Insured. (b) Other Party. (c) Insurer. (d) All of the above.

Other Party.

A collision with a falling object is normally covered by the following Physical Damage coverage? (a) Other Than Collision. (b) Open Perils. (c) Comprehensive. (d) None of the above.

Other Than Collision.

A collision with an animal is normally covered by the following Physical Damage coverage? (a) Other Than Collision. (b) Open Perils. (c) Comprehensive. (d) None of the above.

Other Than Collision.

Your insured has struck a mailbox in a one vehicle accident which resulted in a broken windshield. What type of physical damage claim will he be filing? (a) Special. (b) Other Than Collision. (c) Collision. (d) Mailbox.

Other Than Collision.

A "non-owned auto" is defined as a private passenger auto, pickup, van or trailer not ______ by or furnished or available for the regular use of the named insured or a family member, while being operated or in the care of the named insured or a family member. (a) Owned. (b) Driven. (c) Sold. (d) All of the above.

Owned.

This CGL coverage form protects owners and contractors against claims for bodily injury and property damage arising out of work performed by an independent contractor on the insured's behalf? (a) Owners and Contractors Protective Liability Form (OCP). (b) Products/Completed Operations Coverage Form. (c) Liquor Liability Coverage Form. (d) Pollution Liability Coverage Form.

Owners and Contractors Protective Liability Form (OCP).

The difference between a Stock Insurance Company and a Mutual Insurance Company is? (a) The size of the companies. (b) State of licensure. (c) One is authorized and the other is not. (d) Ownership and control.

Ownership and control.

Which type of provider is organized by physicians and hospitals who contract with an insurance company who offers their services via a negotiated scheduled contract: (a) PPO. (b) PIP. (c) HMO. (d) None of the above.

PPO.

Objects Definition Form

Part of the Boiler and Machinery Coverage part of the Commercial Package Policy. Defines the objects covered by the Boiler and Machinery Coverage form in great detail.

Employee Dishonesty Coverage Form

Part of the Commercial Crime Coverage part of the Commercial Package Policy, it covers loss resulting from dishonest acts of employees. This coverage is excluded under other Crime insurance forms.

Physician's and Surgeon's Equipment Coverage Form

Part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It covers insureds in the medical and dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments.

Farm Coverage Part

Part of the Commercial Package policy, the Farm Coverage Part provides both property and liability forms that can be used to provide farm coverage on either a monoline or package basis.

Contractor's Equipment Coverage Form

Part of the Inland Marine Coverage part of the Commercial Package Policy. It covers various types of contractors mobile equipment needed to conduct business.

Commercial Articles Coverage Form

Part of the Inland Marine Coverage part of the Commercial Package Policy. Provides "all risk" coverage for photographic equipment and musical instruments on either a scheduled or blanket basis or both.

Aircraft Liability provides coverage for bodily injury, property damage, and _________. (a) Personal Injury. (b) Passenger Liability. (c) Airport Liability. (d) None of the above.

Passenger Liability.

Which of the following violates the concept of indemnity? (a) Paying for intentional loss. (b) Replacement Cost Endorsements. (c) Agreed Value Policies. (d) All of the above.

Paying for intentional loss.

Which bond guarantees all labor and materials used on the job will be paid for by the Principal at or before the completion of the job? (a) Payment Bond. (b) Maintenance Bond. (c) Subdivision Bond. (d) None of the above.

Payment Bond.

An insured under the Homeowners policy is considered by definition to include all BUT which of the following? (a) Named insured and spouse. (b) Residing family members of the named insured or spouse. (c) Person's in the custody of Answers A and B aged 24 and under. (d) All of the above are considered insured's in the Homeowners.

Person's in the custody of Answers A and B aged 24 and under.

The FAJUA offers: (a) Personal Auto coverage. (b) Wind coverage of structures. (c) Residential Property Insurance. (d) Workers Compensation.

Personal Auto coverage.

This endorsement protects the insured's legal liability for libel, slander, and defamation? (a) Incidental Injury endorsement. (b) Personal Injury Liability endorsement. (c) Libel, Slander, and Defamation endorsement. (d) This exposure is not available under the ISO HO-3.

Personal Injury Liability endorsement.

Personal Articles Floater

Personal Inland Marine insurance which provides "all risk" coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.

This Homeowners policy endorsement changes Coverage C's loss provision to Replacement Cost Value. (a) Inflation Guard. (b) Building Ordinance or Law. (c) Personal Property Replacement Cost. (d) Extended Replacement Cost.

Personal Property Replacement Cost.

Coverage C in the Homeowners policy covers: (a) Dwelling. (b) Other Structures. (c) Personal Property. (d) Loss of Use.

Personal Property.

Coverage C Personal Property in the Homeowners policy covers: (a) Personal property. (b) Additional living expenses. (c) Other structures. (d) None of the above.

Personal property.

A physical characteristics which increase the probability and severity of loss is? (a) Morale hazard. (b) Moral hazard. (c) Physical hazard. (d) None of the above.

Physical Hazard.

A physical characteristics which increase the probability and severity of loss is? (a) Morale hazard. (b) Moral hazard. (c) Physical hazard. (d) All of the above.

Physical Hazard. (A Physical Hazard is a physical characteristic which increases the probability and severity of loss.)

Aircraft Hull Insurance

Physical damage coverage for an aircraft (can be for in motion and/or not in motion coverage)

Aircraft Hull Insurance

Physical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both.

Which of the following increase the probability and/or severity of loss? (a) Physical, Moral, and Operational Hazard. (b) Fiscal, Moral, and Operational Hazard. (c) Fiscal, Morale and Operational Hazard. (d) Physical, Moral, and Morale Hazard.

Physical, Moral, and Morale Hazard.

Which Commercial Inland Marine policy covers medical, surgical and dental instruments on and off the premises, as well as furniture and fixtures at the doctor's office? (a) Contractors Equipment Floater. (b) Physicians and Surgeons Equipment. (c) Film. (d) Commercial Articles.

Physicians and Surgeons Equipment.

Shirley Timple purchased a PIP/PD policy from your agency 61 days ago. She now wants to cancel the policy. Under what conditions can she cancel the policy? (a) The insured vehicle is totally destroyed. (b) The insured vehicle is sold. (c) He has purchased replacement coverage. (d) Place the insurer on formal written notice of her intention to cancel.

Place the insurer on formal written notice of herintention to cancel.

Bill Bird purchased a PIP/PD policy from your agency 90 days ago. He now wants to cancel the policy. Under what conditions can he cancel the policy? (a) The insured vehicle is totally destroyed. (b) The insured vehicle is sold. (c) He has purchased replacement coverage. (d) Place the insurer on formal written notice of his intention to cancel.

Place the insurer on formal written notice of his intention to cancel.

Single Limits

Policy limits that apply to all bodily injury and property damage arising from a single accident.

Dwelling Policy

Policy which provides coverage for the dwellings and personal property of individuals and families against fire and additional perils.

A _________means a written contract of or a written agreement for or affecting insurance. (a) Contract. (b) Insurer. (c) Policy. (d) Legal Proceedings.

Policy.

You have given Mrs. Brown, your insured, a written contract and/or agreement for insurance. What have you given Mrs. Brown? (a) Contract. (b) Policy. (c) Bylaws. (d) Legal Proceedings.

Policy.

Your insured, Otis, has been found guilty of driving under the influence of alcohol and has pierced Florida's Financial Responsibility law. What can Otis do to satisfy Florida's Financial Responsibility law? (a) Post a bond in the amount of $150,000. (b) Post a bond in the amount of $250,000. (c) Post a bond in the amount of $350,000. (d) None of the above.

Post a bond in the amount of $350,000.

In general insurance policies require the insured to undertake certain duties following a loss including all BUT which of the following: (a) Provide prompt notice. (b) Cooperate with the insurer. (c) Preserve the insurer's rights. (d) Post the loss on a blog.

Post the loss on a blog. (The insured must provide prompt notice of loss; the insured must cooperate with the insurer; and the insured must act in a way to preserve the insurer's rights.)

Coverage B Other Structures in the Homeowners policy covers: (a) Private structures on the residence premises that are attached to the main dwelling. (b) Loss of use. (c) Private structures on the residence premises that are not attached to the main dwelling. (d) None of the above.

Private structures on the residence premises that are not attached to the main dwelling.

A loss has occurred and two liabilities polices are determined to apply to the same loss. The first policy has a $500,000 limit and the second a $1,000,000 limit. The first policy is responsible for: $500,000/$1,500,000 and the second policy is responsible for $1,000,000/$1,500,000. What type of "Other Policy" provision is this? (a) Excess. (b) Primary. (c) Equal Shares. (d) Pro-Rata.

Pro-Rata. (Pro-rata shares provisions provide that each policy pays only the limits each bears to all of the limits.)

FWCJUA insureds are entitled to a _____ refund if they obtain coverage from an authorized insurer. (a) Short-rate. (b) Cancel-rate. (c) Pro-rata. (d) Short-rata.

Pro-rata.

Which bond is designed for those who administer estates of deceased persons? (a) Probate Bond. (b) Conservation Bond. (c) Insolvency Bond. (d) Court Bonds.

Probate Bond.

This coverage protects the legal liability of the insured claims against manufacturers, sales, or repair organizations attributable to defective work or products: (a) Airport and Air Meet Liability. (b) Product Liability. (c) Medical Payments. (d) Cargo Liability.

Product Liability.

This CGL coverage form provides a monoline form solely for the Products/Completed Operation's exposure? (a) Owners and Contractors Protective Liability Form (OCP). (b) Products/Completed Operations Coverage Form. (c) Liquor Liability Coverage Form. (d) Pollution Liability Coverage Form.

Products/Completed Operations Coverage Form.

Allied Lines

Property coverages which are closely associated and frequently sold with tire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, etc.

Legal Liability Coverage Form indemnifies the insured for their legal liability for? (a) Property damage to the insured's property. (b) Property damage to an other's property. (c) Both A & B. (d) Neither A or B.

Property damage to an other's property.

In the Extra Expense Coverage Form the "Limits on Loss Payment" condition: (a) Prorates the insured's recovery over time and against the policy limit on a percentage basis over time. (b) Short-rates the insured's recovery over time and against the policy limit on a percentage basis over time. (c) There is no "Limits on Loss Payment" condition in the Extra Expense Form. (d) None of the above.

Prorates the insured's recovery over time and against the policy limit on a percentage basis over time.

Cargo Liability Coverage

Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy.

The BAP's Drive Other Car Coverage: (a) Is necessary if an employee has their own vehicle and insurance. (b) Protects employees who don't personally own a vehicle. (c) Extends coverage to customers vehicles. (d) None of the above.

Protects employees who don't personally own a vehicle.

The Owners and Contractors Protective Liability Form (OCP): (a) Provides a workers compensation type coverage. (b) Protects owners and contractors against claims for bodily injury and property damage arising out of work performed by an independent contractor on the insured's behalf. (c) Provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. (d) None of the above.

Protects owners and contractors against claims for bodily injury and property damage arising out of work performed by an independent contractor on the insured's behalf.

Vandalism And Malicious Mischief (VMM)

Protects property against damage caused by vandals. Many property forms contain Vandalism and Malicious Mischief coverage.

The purpose of Mechanical Breakdown Coverage is to? (a) Provide coverage against the failure of an original part. (b) Provide Towing from the point of disablement. (c) Provide Labor from the point of disablement. (d) Both B & C.

Provide coverage against the failure of an original part.

Personal Effects Floater

Provides "all risk" coverage for individuals and families who desire to insure their personal belongings (baggage) while traveling or vacationing.

The Products/Completed Operations Coverage Form: (a) Provides a monoline form solely for the Products/Completed Operation's exposure. (b) Provides a workers compensation type coverage. (c) Provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. (d) None of the above.

Provides a monoline form solely for the Products/Completed Operation's exposure.

The Commercial Property policy's Optional Coverage, "Inflation Guard": (a) Provides an annual percentage increase in coverage applied on a pro-rata basis throughout the policy term. (b) Waives the Coinsurance condition . (c) Policy will pay for replacement of new building . (d) None of the above.

Provides an annual percentage increase in coverage applied on a pro-rata basis throughout the policy term.

Personal Liability Policy

Provides broad coverage for an individuaI's or famiIy's liability exposure for bodily injury or property damage. Similar to coverage included in Homeowner's contract.

Contractual Liability

Provides coverage against liability rising out of an insured's contractual obligations. Generally excluded in the Commercial General Liability Policy, subject to several exceptions.

The Liquor Liability Coverage Form: (a) Provides a workers compensation type coverage. (b) Protects the insured against work performed by an independent contractor. (c) Provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages for having caused or contributed to a person's intoxication. (d) None of the above.

Provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages for having caused or contributed to a person's intoxication.

The Discovery basis Crime coverage form will cover a loss which occurred prior to its inception if: (a) Reported during the policy term. (b) If the retro date on the policy precedes the date of loss. (c) Both A & B. (d) Neither A or B.

Reported during the policy term.

All of the following are penalties for non-compliance with the compulsory No Fault law except? (a) Repossession of auto. (b) Suspension of driver's license . (c) Personal liability for payment of PIP benefits. (d) No immunity from legal liabilities.

Repossession of auto.

Under Section II of the Homeowners Insurance policy all BUT which of the following is an "insured location"? (a) Newly acquired residences. (b) Cemetery plots. (c) Owned vacant land. (d) Residence premises not described in the Declarations.

Residence premises not described in the Declarations.

This Flood Form is written for condominium associations: (a) Dwelling Form. (b) Preferred Risk Policy. (c) General Property Form. (d) Residential Condominium building Association Policy Form.

Residential Condominium building Association Policy Form.

Which of the following is/are not eligible as insured Homeowners policy holders? (a) Corporations. (b) Partnerships. (c) Trusts. (d) Residing individuals living under a life estate arrangement.

Residing individuals living under a life estate arrangement.

Which of the following does NOT apply to the Mortgagee Clause? (a) Right to cancel the policy. (b) Advance notice of any cancellation. (c) Coverage even if the insured actions prevent recovery by the insured. (d) Right to pay a policy premium.

Right to cancel the policy.

Mortgagee Rights

Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.

The Basic Form Cause of Loss perils include: (a) Riot or Civil Commotion. (b) Earth Movement. (c) Both A & B. (d) Neither A or B.

Riot or Civil Commotion.

The "change of financial loss" refers to the concept of: (a) Subrogation. (b) Adhesion. (c) Risk. (d) All of the above.

Risk.

This Crime coverage endorsement covers the named insured's legal liability as a safe depository for others property: (a) Extortion. (b) Funds Transfer Fraud. (c) Safe Depository. (d) Guest Property.

Safe Depository.

Under this "plan" lowest rates apply if all family operators have had no accidents or serious traffic violations during a prior three year period. (a) Family Plan. (b) Safe Family Plan. (c) Safe Driver Insurance Plan. (d) Family Driver Safety Plan.

Safe Driver Insurance Plan.

ERISA has a "_______ clause" which sets apart for the states all rights not reserved under ERISA. (a) Deemer clause. (b) Savings clause. (c) Preemption. (d) None of the above.

Savings clause.

In the Farm Policy Coverage E covers: (a) Dwellings. (b) Household private property. (c) Scheduled farm personal property. (d) None of the above.

Scheduled farm personal property.

The Valued Business Interruption Endorsement: (a) Schedules daily limit and also total aggregate limit. (b) Provides no coverage for partial interruption. (c) Both A & B. (d) Neither A or B.

Schedules daily limit and also total aggregate limit.

Seals Croft suffered $12,000 of non permanent injuries in an accident that was Madonna Sinatra's fault. Madonna did not carry any insurance on her vehicle. Seals has recovered for his medical expenses and lost wages under his PIP and Medical Payments coverages and has stacked UM coverage. (a) Seals can collect against his UM coverage. (b) Seals cannot collect against his UM coverage. (c) The PAP and Florida Statutes are silent on this issue. (d) Seals can file a stacked UMBI claim against his carrier.

Seals cannot collect against his UM coverage.

Under the No Fault law a motor vehicle is defined as? (a) Mobile Homes. (b) Public school buses. (c) Taxicabs. (d) Self-propelled vehicles with four or more wheels which are of a type both designed and required to be licensed for use on Florida highways.

Self-propelled vehicles with four or more wheels which are of a type both designed and required to be licensed for use on Florida highways.

The CGL condition which treats each insured independently and separate from all other insureds is? (a) Individual Insured condition. (b) Separation of Insureds condition. (c) Coverage of Insureds condition. (d) None of the above.

Separation of Insureds.

All of the following apply to the Division of Agents & Agencies Services EXCEPT? (a) Investigate charges of unethical conduct. (b) Issue agent licenses. (c) Set insurance rates. (d) Supervision of insurance claims activity.

Set insurance rates.

Employment Related Practices Liability excludes: (a) Sexual harassment of perpetrator (b) Covers retaliatory action against whistle blowers (c) Both A & B (d) Neither A or B

Sexual harassment of perpetrator.

Employment Related Practices Liability excludes? (a) Sexual harassment of perpetrator. (b) Covers retaliatory action against whistle blowers. (c) Both A & B. (d) Neither A or B.

Sexual harassment of perpetrator.

Which of the following are eligible for a Citizen's Property Insurance policy: (a) Hotels and motels. (b) Condemned risk. (c) Vacant or unoccupied properties. (d) Single family homes.

Single family homes.

The Homeowners policy's General Exclusions include all BUT which of the following? (a) Flood. (b) War. (c) Sinkhole. (d) Government Action.

Sinkhole.

An agent has charged an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. This is known as: (a) Rebating. (b) Premiuming. (c) Sliding. (c) None of the above.

Sliding.

A licensed customer representative may: (a) Solicit new customers at the supervising General Lines Agent's office or by telephone from that office. (b) Solicit business outside of the General Lines Agent's office. (c) Both A & B. (d) Neither A or B.

Solicit new customers at the supervising General Lines Agent's office or by telephone from that office.

Hazard

Something that increases the chance of loss. For instance, faulty wiring is a hazard because it increases the chance of a fire loss.

Symbol 27 is used in the Garage Policy to cover: (a) Owned Autos Only. (b) Specifically Described Autos. (c) Owned Private Passenger Vehicles Only. (d) Any Auto.

Specifically Described Autos.

This type of excess liability provides coverage in excess of underlying limits but does not apply the same conditions, provisions, or exclusions as the underlying policy? (a) Stand alone. (b) Follow form. (c) Both A & B. (d) Neither A or B.

Stand alone.

Controlled lines are: (a) Standardized forms have been prepared for specified classes which can be insured under the Commercial Package Policy. (b) Commercial Inland Marine coverages which are not standardized. (c) Both A & B. (d) Neither A or B.

Standardized forms have been prepared for specified classes which can be insured under the Commercial Package Policy.

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.

The "other insurance" condition in the CGL: (a) States all policies not defined as Excess are Primary. (b) States that claims made forms are primary over any policy that is not claims-made. (c) Both A & B. (d) Neither A or B.

States all policies not defined as Excess are Primary.

The Commercial Property policy's Optional Coverage, "Replacement Cost": (a) Provides an annual percentage increase in coverage. (b) Waives the Coinsurance condition . (c) States the policy will pay for replacement of new building and personal property. Insured has 180 to replace and notify insurer of replacement. (d) None of the above.

States the policy will pay for replacement of new building and personal property. Insured has 180 to replace and notify insurer of replacement.

Your insured has asked what major parts are covered by Mechanical Breakdown insurance. How will you respond? (a) Steering Assemblies and Front Suspensions. (b) Radios, TVs, CBs, and other AV equipment. (c) Both A and B. (d) Neither A or B.

Steering Assemblies and Front Suspensions.

An insurance company owned by stockholders is a? (a) Mutual Insurer. (b) Reciprocal Exchange. (c) Stock Insurance Company. (d) Lloyds of London.

Stock Insurance Company.

Your agency has a company appointment with an insurance company owned by its stockholders, this type of insurance company is a? (a) Mutual Insurer. (b) Reciprocal Exchange. (c) Stock Insurance Company. (d) Lloyds of London.

Stock Insurance Company.

The Ocean Marine clause which states the insured must mitigate loss at all cost (cost are reimbursable) or be barred from any recovery is: (a) General Average Clause. (b) Free of Particular Average. (c) Sue and Labor. (d) Actual Total Loss.

Sue and Labor.

This Boiler and Machinery coverage extension agrees to pay all litigation costs for liability claims: (a) Expediting Expenses. (b) Automatic Coverage. (c) Defense. (d) Supplementary Payments.

Supplementary Payments.

Bail Bond

Surety bond that guarantees that the principal will appear in a criminal proceeding. See Court bond.

Automobiles are assigned a _________ which recognizes the value of a vehicle and its "damageability". (a) Status. (b) Recognition. (c) Symbol. (d) Letter.

Symbol.

What do you call a BOP written on a claims made form? (a) C1-BOP. (b) BOP-Claims Made. (c) The BOP is never written on a claims made form. (d) The BOP is only written on a claims made form, it is referred to simply as an ISO conforming BOP.

The BOP is never written on a claims made form.

Your insured has the following CGL limits: General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 10,000 (a) The CGL's "basic" limits are higher than your insured's limits. (b) The CGL's "basic" limits are lower than your insured's limits. (c) There is no such thing as "basic" limits. (d) None of the above.

The CGL's "basic" limits are lower than your insured's limits.

Mr. Brown, your CGL insured, is a sole proprietor and wants to know how the CGL policy's language addresses coverage for his spouse. You advise Mr. Brown... (a) The CGL's language excludes her if she is not named on the Declaration's page. (b) The CGL's language includes her as an insured. (c) The CGL does not address this issue and you advise your client to form a corporation. (d) None of the above.

The CGL's language includes her as an insured.

Shelby Tassitino, your CGL insured, is a sole proprietor and wants to know how the CGL policy's language addresses coverage for her estate if she were to fortuitously expire. You advise Shelby... (a) The CGL does not address this issue and you advise her to form a corporation. (b) The CGL expires when a sole proprietor expires. (c) The CGL's language provides that the legal custodian of the business becomes the insured for the purposes of winding down the business. (d) None of the above.

The CGL's language provides that the legal custodian of the business becomes the insured for the purposes of winding down the business.

Josephine's Garage is replacing all four tires on a customer's truck. The customer has tripped over an air hose in garage parking lot and broken his nose. How will the Garage Policy respond? (a) The Garage Policy will respond to liability associated with garage operations less a $100 deductible. (b) The Garage Policy will respond to liability associated with garage operations less a $250 deductible. (c) The Garage Policy will respond to liability associated with garage operations less a $500 deductible. (d) The Garage Policy will respond to liability associated with garage operations (no deductible applies).

The Garage Policy will respond to liability associated with garage operations less a $100 deductible.

Josephine's Garage has replaced all four tires on a customer's truck. The truck's rear right wheel flew off when the customer left the garage striking a pedestrian. How will the Garage Policy respond? (a) The Garage Policy will respond to liability associated with the work performed by the insured less a $100 deductible. (b) The Garage Policy will respond to liability associated with the work performed by the insured less a $250 deductible. (c) The Garage Policy will respond to liability associated with the work performed by the insured less a $500 deductible. (d) The Garage Policy will respond to liability associated with the work performed by the insured less a $1,000 deductible.

The Garage Policy will respond to liability associated with the work performed by the insured less a $100 deductible.

Klassic Kars, your Garage Policy insured, has Section III Garagekeeps on a Direct Coverage - Primary Basis. A Klassic Kars customer had their windshield and windows smashed out while being stored on the Klassic Kar's premises. How will the policy respond? (a) The Garage policy will pay for 100% of the loss on a first party basis less any applicable deductible on a primary basis without regard to the insured's legal liability or the owners physical damage coverage. (b) The Garage policy excludes property in the insured's care, custody, or control. (c) The Garage policy will pay less a $100 liability deductible for work performed by the insured. (d) The Garage policy will pay for 100% of the loss on an excess basis after the owner's insurance has been applied and exhausted.

The Garage policy will pay for 100% of the loss on a first party basis less any applicable deductible on a primary basis without regard to the insured's legal liability or the owners physical damage coverage.

Klassic Kars, your Garage Policy insured, has Section III Garagekeeps on a Direct Coverage - Excess Basis. A Klassic Kars customer had their windshield and windows smashed out while being stored on the Klassic Kar's premises. How will the policy respond? (a) The Garage policy will pay for 100% of the loss on a first party basis less any applicable deductible on a primary basis without regard to the insured's legal liability or the owners physical damage coverage. (b) The Garage policy excludes property in the insured's care, custody, or control. (c) The Garage policy will pay less a $100 liability deductible for work performed by the insured. (d) The Garage policy will pay for the loss on an excess basis after the owner's insurance has been applied and exhausted.

The Garage policy will pay for the loss on an excess basis after the owner's insurance has been applied and exhausted.

Your Homeowners insured has taken his off-road recreation vehicle to the Utah Salt Flats to see how fast it can really go. Unfortunately he hit another off-road recreational vehicle enthusiast while he was testing his maximum speed. How will the Homeowners policy respond? (a) Property Damage and Bodily Injury for the other party will be covered 100% up to the policy limits. (b) The Homeowners policy will not pay anything as owned RVs are not covered for Liability off the residence premises. (c) The policy will pay for the damages as long at the length of the recreational vehicle does not exceed 16 feet. (d) The policy will pay for the damages as long at the length of the recreational vehicle does not exceed 350 horsepower.

The Homeowners policy will not pay anything as owned RVs are not covered for Liability off the residence premises.

An insured has the following limits with the "basic" limits for Fire Damage/Fire Legal coverage. What is the basic limit for Fire Damage/Fire Legal coverage? General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ ______ Medical Payments Limit $ 5,000 (a) The basic limit for Fire Damage is $1,000. (b) The basic limit for Medical Payments is $5,000. (c) The basic limit for Medical Payments is $100,000. (d) The basic limit for Medical Payments is $1,000,000.

The basic limit for Medical Payments is $100,000.

An insured has the following limits with the "basic" limits for Medical Payments coverage. What is the basic limit for Medical Payments coverage? General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ ____ (a) The basic limit for Medical Payments is $1,000. (b) The basic limit for Medical Payments is $5,000. (c) The basic limit for Medical Payments is $300,000. (d) The basic limit for Medical Payments is $1,000,000.

The basic limit for Medical Payments is $5,000.

Your CGL insured has filed a CGL claim and it has been discovered that the loss was caused intentionally by the insured will the CGL pay the insured's claim? (a) Yes, intentional acts to injure or damage property will not preclude a recovery. (b) Unknown, as the CGL does not address intentional acts. (c) The claim will be denied as the CGL excludes BI and PD losses when the injury or damage is expected and intended by the insured. (d) None of the above.

The claim will be denied as the CGL excludes BI and PD losses when the injury or damage is expected and intended by the insured.

True of False? The "change of financial loss" refers to the concept of Risk.

True.

A Homeowners policyholder has come to the office to file a theft claim for the loss of an expensive watch. She tells you that the value of the watch is $1,200. How would you advise her regarding the coverage in the HO policy? (a) No coverage for jewelry. (b) No theft coverage for jewelry. (c) The claim will be paid (less her deductible) as there is $1,500 per occurrence for theft of watches in the basic policy form. (d) The claim will be paid less her deductible as there is $15,000 per occurrence for theft of watches.

The claim will be paid (less her deductible) as there is $1,500 per occurrence for theft of watches in the basic policy form.

Your insured owns a boat with an inboard/outboard motor which is 25 feet long. The insured has collided with another boater damaging the hull of the boat to the tune of $10,000. How will the Homeowners policy respond? (a) The $10,000 claim will be paid as the occurrence is compensable given the length of the boat. (b) The $10,000 claim will not be paid as the occurrence is not compensable given the ownership and use of an inboard/outboard watercraft. (c) The claim will be paid less the watercraft liability deductible (standard $500 in Florida). (d) Florida Statutes require all watercraft liabilities to be paid under the Homeowners policy up to the Section II limit.

The claim will be paid less the watercraft liability deductible (standard $500 in Florida).

Your Homeowners insured has been put on notice of an injury which took place at some vacant land the insured owns. How will the Homeowners policy respond to this claim? (a) The claim will be paid up to the Liability limits of the policy. (b) The claim will be denied as vacant land is excluded in Section II of the Homeowners policy. (c) The claim will be paid less the "vacant land deductible". (d) The Homeowners policy does not address Section II- Liability and vacant land.

The claim will be paid up to the Liability limits of the policy.

Actual Cash Value (ACV)

The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss Replacement Cost -Depreciation).

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 Bl or PD, which occurs on or after the retroactive date and for which claim is made during the policy period.

True of False? The Basic Extended Reporting Period (BERP) provides an extension beyond the policy term for the reporting of a claim.

True.

Zoe Kenney's hot water tank developed a leak while she was on vacation. As a result her home suffered some mild water damage to the flooring but substantial damage to several expensive pieces of furniture. Her Homeowners policy has the Replacement Cost Endorsement for Coverage C Personal Property. Zoe replaced her flooring immediately and was paid the full replacement cost. She did not immediately replace the furniture and was compensated at its depreciated replacement value. Seven months later Zoe has found the perfect replacements and she has purchased them and placed the insurer on formal notice of her replacement. How will the insurer respond? (a) The insurer will pay Zoe the amount previously deducted for depreciation. (b) The insurer will pay Zoe nothing as an insured has only 30 days after the notice of loss to submit receipts for replacement as a valuation method to apply. (c) The insurer will pay Zoe nothing in addition as an insured has only 90 days after the notice of loss to submit receipts for replacement as a valuation method to apply. (d) The insurer will pay Zoe nothing as an insured has only 180 days after the notice of loss to submit receipts for replacement as a valuation method to apply.

The insurer will pay Zoe nothing in addition as an insured has only 180 days after the notice of loss to submit receipts for replacement as a valuation method to apply.

A General Lines Agent can have their licensed terminated if: (a) The materially misrepresented themselves in their licensing application. (b) Deceived an insured or insurance company. (c) Have demonstrated a lack of punctuality in the insurance business dealings. (d) All of the above.

The materially misrepresented themselves in their licensing application.

True of False? The CGL includes a common policy condition for inspection and surveys at the company's discretion.

True.

An insured with a Dwelling Fire policy has come to the office to file a claim with the following property damaged: (a) valuable papers, (b) stamps, and (c) money - how will the policy respond? (a) The policy will pay for the loss less a deductible. (b) The policy will not pay for the loss as all three classes of property are excluded. (c) The policy will pay for the loss and there is no deductible for these classes of property. (d) None of the above.

The policy will not pay for the loss as all three classes of property are excluded.

Your Homeowners insured has been put on formal notice by his Homeowners Association that a $2,500 assessment has been levied against all association members to resurface the parking lot by the community playground. How will Section II of the Homeowners policy respond? (a) The policy will pay the entire $2,500. (b) The policy will pay up to $1,000. (c) The policy will pay $0 under Section II. (d) None of the above.

The policy will pay $0 under Section II.

What amount will be paid to an insured who has an insurance policy with a combined single limit of $600,000 on three $200,000 individual buildings if a $250,000 loss occurs to one of the buildings? (a) The policy will pay to $600,000. (b) The policy will pay $250,000. (c) The policy will pay $200,000. (d) None of the above.

The policy will pay $250,000. (The policy will pay up to $600,000 for any one or combination of buildings.)

Your insured has suffered a compensable Crime loss with the cost to repair less than the replacement cost of the stolen property. How will the policy respond? (a) The policy will pay Actual Cash Value. (b) The policy will pay Replacement Cost Value. (c) The policy will pay the lesser of Replacement Cost Value or the cost to repair. (d) None of the above.

The policy will pay the lesser of Replacement Cost Value or the cost to repair.

Conditions

The portion of an insurance contract, which sets forth the rights and duties of the insured and the insurance company.

Building and Personal Property Coverage Form

The primary coverage form of the Commercial Package policy's Commercial Property Coverage part. Covers a business's buildings, business personal property and the personal property of others.

Under Florida's Workers' Compensation laws a contractor is liable for injuries to a subcontractor's employees if: (a) The subcontractor does not carry WC. (b) Included in the basic policy language. (c) Never required as a matter of contract or law. (d) None of the above.

The subcontractor does not carry WC.

Your insured is three days late with their FWCJUA renewal premium can the insured make their payment late and keep their policy in force? (a) They CAN make the payment and the policy will remain in force. (b_ They CANNOT make a late payment if the renewal premium is not received by the date of expiration the policy ceases. (c) The payment CAN be made late but there will be a three day lapse in coverage, (d) None of the above,

They CANNOT make a late payment if the renewal premium is not received by the date of expiration the policy ceases.

True of False? The Crime Form is written on an "all risk" cause of loss form.

True.

A pipe has burst in your insured's home, damaging the dwelling and contents. The insured has an HO-5; how will the policy cover this loss? (a) Flooding and water damage are excluded. (b) This loss will be covered for damage to the Dwelling only. (c) This loss will be covered on an open perils basis for the Dwelling and Personal Property. (d) The loss will be settled on an Actual Cash Value basis.

This loss will be covered on an open perils basis for the Dwelling and Personal Property.

Third—Party Insurance Coverage

Those coverages under which the insured obtains protection against a legal obligation to pay damages to others because of injuries to persons or damage to property.

Rates in Tier Three are set at ___% above comparable voluntary markets. (a) 10%. (b) 25%. (c) 50%. (d) Tier Three rates are required to be actually sound with any shortfalls assessed to Tier Three participants.

Tier Three rates are required to be actually sound with any shortfalls assessed to Tier Three participants.

The Leasehold Interest Coverage Form covers the "remaining" financial loss(es) associated with the destruction of the insured location which results in all BUT which of the following? (a) Loss of the remaining value of improvements and betterments made by a tenant. (b) Total and entire cost of improvements and betterments made by a tenant. (c) Loss of the remaining value of a bonus paid to acquire a lease. (d) Loss of the remaining value of prepaid rents.

Total and entire cost of improvements and betterments made by a tenant.

The BOP will cover: (a) Trade contractors. (b) Residential general contractors. (c) Commercial general contractors. (d) All of the above.

Trade contractors.

Which of the following coverages is NOT available under both the Business Auto Policy and the Truckers Policy form? (a) Personal Injury Protection. (b) Medical Payments. (c) Uninsured Motorists. (d) Trailer Interchange - Fire and Theft.

Trailer Interchange - Fire and Theft.

Major Medical Insurance typically EXCLUDES: (a) Physicians and surgeons fees. (b) Operating room. (c) Treatment in a VA or government hospital. (d) Medical expenses including lab work.

Treatment in a VA or government hospital.

Which endorsement is used to insure a trucker who has delivered his/her load and is no longer covered under the policy afforded by the company which hired them? (a) No load - No Luck endorsement. (b) Truckers - insurance for non-trucking use. (c) Personal Auto Policy non-use endorsement. (d) Delivery and Non-Delivery endorsement for truckers.

Truckers - insurance for non-trucking use.

In the Truckers Coverage Form, which endorsement is used to cover the bobtailing and deadheading exposure? (a) BT and DH exposure endorsement. (b) Truckers Insurance for Non-trucking Use. (c) Undercover over-the-road endorsement. (d) Truckers Towing & Labor endorsement.

Truckers Insurance for Non-trucking Use.

True of False? "Bodily Injury" means bodily harm, sickness or disease and resulting death.

True.

True of False? A loan officer may not solicit or sell insurance in connection with a loan but she may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.

True.

True of False? Any person offering the sale of insurance at the time of and in connection with an application or extension of credit must disclose so in writing.

True.

True of False? Cancellation conditions in general allow the insured to cancel at any time.

True.

True of False? Farm Liability excludes liability for pollutants and injury to farm employees.

True.

True of False? Florida law prohibits discrimination based upon the factors of race, color, creed and marital status.

True.

True of False? Hangarkeeper's Liability coverage is bailee coverage.

True.

True of False? In the Commercial Property coverage Form Building coverage includes: refrigerating, ventilating, cooking, dish-washing, and laundering appliances.

True.

True of False? In-Motion covers the aircraft while it is under its own power.

True.

True of False? Ocean Marine Insurance is the oldest form of insurance.

True.

True of False? Section II- Liability of the Homeowners policy excludes liability coverage for damage caused by a motorized vehicle which is normally used to assist a handicapped family member if the vehicle damages property or injures third parties while not being used in it's "assistance" capacity at the time of loss.

True.

True or False? You as a General Agent may hire and license Customer Representatives. The Customer Representative eligible to receive compensation as commission? Eligible to receive commission as compensation if the performance based compensation (commission) is not greater than half of the total compensation.

True. The Customer Representative is ELIGIBLE to receive commission as compensation if the performance based compensation (commission) is not greater than half of the total compensation.

An agent has knowingly made some misleading representations to sell an insurance policy. This is known as: (a) Salesmanship. (b) Twisting. (c) Premiuming. (d) Rebating.

Twisting.

You have just learned that a new insurance company in Florida does not have a certificate of authority issued by the department to transact insurance in this state. According to Florida Statute 624.09 this new company is an _________ company. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Unauthorized.

You have just learned that a new insurance company in Florida does not have a certificate of authority issued by the department to transact insurance in this state. This new company is an _________ company. (a) Authorized. (b) Unauthorized. (c) Stock. (d) Mutual.

Unauthorized.

Unfair methods of competition and/or deceptive acts include which of the following: (a) Using an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading. (b) Comparisons between policy features. (c) Comparisons between policy benefits. (d) Comparisons between product pricing.

Using an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading.

Crime Coverage Plans

Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.

Liability for motorized land conveyances under the Homeowners policy form applies to: (a) Vehicles anywhere. (b) Vehicles in dead storage. (c) Golf carts anywhere. (d) All of the above.

Vehicles in dead storage.

This Miscellaneous Medical Professions coverage form is defined as an act or omission related to the furnishing of veterinarian services: (a) Blood Banks. (b) Medical or X-Ray Laboratories. (c) Optometrists. (d) Veterinarians.

Veterinarians.

Hospitalization Expense Insurance pays for all BUT which of the following? (a) Room and board in the hospital. (b) Nursing care. (c) Laboratory fees. (d) Vision and Dental.

Vision and Dental.

The CGL's Coverage C Medical Payments coverage is a _____ or nonlegal liability coverage. (a) Voluntary. (b) Involuntary. (c) Necessary. (d) Liability.

Voluntary.

Susan Studip has been convicted of driving under the influence of alcohol. Has she pierced Florida's Financial Responsibility law? (a) Yes and she must carry liability limits of $100,000/$300,000/$50,000. (b) Alcohol related offenses do not trigger Florida's Financial Responsibility . (c) Yes and she may post a bond if she does not carry the prescribed liability limits. (d) Both A and C.

Yes and she may post a bond if she does not carry the prescribed liability limits.

Jackie Joomer is employed by Florida's Best Jellies and Jams. She has been trained to wear protective eye gear and has signed an affidavit in the company's employee handbook stating she understands, agrees, and will comply with all safety rules and regulations. While operating on the line Jackie has been blinded by a peach seed which has been projected out of a pitting machine. Can Jackie file a compensable claim under Florida's Workers' Compensation laws? (a) Yes but there may be a 10% reduction for her recovery for willful refusal to utilize safety equipment or obey safety rules. (b) Yes but there may be a 25% reduction for her recovery for willful refusal to utilize safety equipment or obey safety rules. (c) Yes but there may be a 33 1/3% reduction for her recovery for willful refusal to utilize safety equipment or obey safety rules. (d) Yes but there may be a 50% reduction for her recovery for willful refusal to utilize safety equipment or obey safety rules.

Yes but there may be a 25% reduction for her recovery for willful refusal to utilize safety equipment or obey safety rules.

Greg Billingsworth a salesman for Granger Electric has been injured in an automobile accident while on a sales call just over the Georgia state line. Are his injuries compensable under Florida's Workers Compensation laws? (a) Yes, Florida employees are covered if injured outside of the state of Florida. (b) No, Florida Workers Compensation policies only cover injures incurred in the state of Florida. (c) No, Mr. Billingsworth's injures are compensable under the companies Business Auto policy solely. (d) No, Mr. Billingsworth's injures are compensable under his own PIP coverage solely.

Yes, Florida employees are covered if injured outside of the state of Florida.

Your insured, Paint, Paint & More Paint, has two owners, Dan and Doug Moore. Dan and Doug have exempted themselves from Workers Compensation with a filing with Florida's Department of Labor. Both Dan and Doug own 50% of the company. Is this permissible under Florida's Workers Compensation Laws? (a) Yes, Florida law permits a construction exposure to exempt up to three officers who own a minimum of 10% of the corporation. (b) Yes, Florida law permits a construction exposure to exempt up to three officers who own a minimum of 20% of the corporation. (c) Yes, Florida law permits a construction exposure to exempt up to three officers who own a minimum of 30% of the corporation. (d) Yes, Florida law permits a construction exposure to exempt up to three officers who own a minimum of 50% of the corporation.

Yes, Florida law permits a construction exposure to exempt up to three officers who own a minimum of 10% of the corporation.

The insured's dealer changed the oil in your insured's auto did not tighten the oil filter sufficiently. Thereafter your insured's engine blew as a result of overheating after the oil leaked out of the lose filter. Can the insured make a compensable Mechanical Breakdown claim? (a) Yes, and the Mechanical Breakdown Insurer has subrogable rights against the responsible party. (b) Yes, but the Mechanical Breakdown Insurer does not have subrogable rights against the responsible party. (c) Yes, but the Mechanical Breakdown carrier will only pay its pro-rata share of loss with the insurer of the dealer. (d) No, oil leakage is specifically excluded.

Yes, and the Mechanical Breakdown Insurer has subrogable rights against the responsible party.

Your insured, Mr. Vickers, has been involved in an at fault auto accident in which another party was injured. He carries 50/100/50 limits. Has your insured satisfied Florida's Financial Responsibility law? (a) No, he has injured another party in an automobile accident. (b) Yes, as he carries liability limits greater than or equal to 10/20/10. (c) No, he will have to settle the matter in a court of law. (d) None of the above.

Yes, as he carries liability limits greater than or equal to 10/20/10.

Your insured owns a sailboat which is 25 feet long. Will Section II - Liability of the Homeowners policy provide coverage for the insured's legal liability while operating the watercraft? (a) Yes, as it is under 26 feet. (b) Yes, as it is under 30 feet. (c) Yes, as it is under 45 feet. (d) No, watercraft liability is excluded under Section II of the Homeowners policy.

Yes, as it is under 26 feet.

Mrs. Tyler, your automobile insured, has been involved in an auto accident in which a vehicle was rendered inoperable. She carries 100/300/50 limits. Has she satisfied Florida's Financial Responsibility law? (a) No, she has rendered another auto inoperable in an accident. (b) Yes, as she carries liability limits greater than or equal to 10/20/10. (c) No, she will have to settle the matter in a court of law. (d) None of the above.

Yes, as she carries liability limits greater than or equal to 10/20/10.

Your insured, Betty Goodgirl, has been involved in an at fault auto accident in which another party was injured. She carries 10/20/10 limits. Has your insured satisfied Florida's Financial Responsibility law? (a) No, she has injured another party in an automobile accident. (b) Yes, as she carries liability limits greater than or equal to 10/20/10. (c) No, she will have to settle the matter in a court of law. (d) None of the above.

Yes, as she carries liability limits greater than or equal to 10/20/10.

A non licensed member of your office staff entered preliminary negotiations with a potential insured for an insurance policy is this considered "transacting insurance"? (a) No, because the staff member is unlicensed. (b) Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance". (c) No, it is only considered "transacting insurance" if the person were to purchase the policy. (d) Both A and C.

Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance".

In a phone conversation you have told Mrs. Toppings she has insurance coverage with a company your agency represents. Can you orally bind this coverage? (a) No, coverage can only be bound in writing. (b) No, coverage can be bound orally or in writing but you cannot use the telephone to bind coverage. (c) Yes, you can bind coverage either orally or in writing. (d) None of the above.

Yes, you can bind coverage either orally or in writing.

Betty Bigalow, an unlicensed member of your office staff has entered into preliminary negotiations with an insured for an insurance policy is this considered "transacting insurance"? (a) No, because the staff member is unlicensed. (b) Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance". (c) No, it is only considered "transacting insurance" if the person were to purchase the policy. (d) Both A and C.

Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance".

A non licensed member of your office staff has solicited a potential insured for an insurance policy is this considered "transacting insurance"? (a) No, because the staff member is unlicensed. (b) Yes, because any solicitation of an insurance policy is considered "transacting insurance". (c) No, it is only considered "transacting insurance" if the person were to purchase the policy. (d) Both A and C.

Yes, because any solicitation of an insurance policy is considered "transacting insurance".

Richard Robbins, an unlicensed member of your agency's office staff, has solicited an insured for an insurance policy is this considered "transacting insurance"? (a) No, because the staff member is unlicensed. (b) Yes, because any solicitation of an insurance policy is considered "transacting insurance". (c) No, it is only considered "transacting insurance" if the person were to purchase the policy. (d) Both A and C.

Yes, because any solicitation of an insurance policy is considered "transacting insurance".

Your insured has suffered a loss compensable by the Crime policy form. The insured has a "Discovery" form and is reporting a loss which occurred prior to the inception of the current policy. There has been continuous coverage by the insured. Will his claim be paid? Yes, because the "Discovery" Crime coverage form will cover a loss which occurred prior to its inception if reported during the policy term. No, because the "Discovery" coverage form only covers losses that occur during the policy period. Yes, because the "Discovery" Crime coverage form will cover a loss which occurred prior to its inception if reported during the policy term; and (b) there was no interruption between the previous policy term and the current policy. None of the above.

Yes, because the "Discovery" Crime coverage form will cover a loss which occurred prior to its inception if reported during the policy term.

Your insured has suffered a loss compensable by the Crime policy form. The insured has a "Loss Sustained" form and is reporting a loss which occurred prior to the inception of the current policy. There has been continuous coverage by the insured. Will his claim be paid? (a) Yes, because the "Loss Sustained" Crime coverage form will cover a loss which occurred prior to its inception if: (a) reported during the policy term; and (b) there was no interruption between the previous policy term and the current policy. (b) No, because the "Loss Sustained" coverage form only covers losses that occur during the policy period. (c) Yes, because the "Loss Sustained" coverage form covers any loss whenever it occurred and/or was reported. (d) None of the above

Yes, because the "Loss Sustained" Crime coverage form will cover a loss which occurred prior to its inception if: (a) reported during the policy term; and (b) there was no interruption between the previous policy term and the current policy.

Your insured has suffered a loss of her luggage at a condo she owns by the beach. She pays the Condo Association monthly and was told she was "insured". Will her Homeowners policy afford her any coverage for this loss? (a) No, a Personal Property loss at a location owned by the insured but not insured is excluded. (b) Yes, but there is a limit to loss of personal property at a secondary residence of 10% of Coverage C. (c) Yes, but there is a limit to loss of personal property at a secondary residence of 20% of Coverage C. (d) Yes, but there is a limit to loss of personal property at a secondary residence of 5% of Coverage C.

Yes, but there is a limit to loss of personal property at a secondary residence of 10% of Coverage C.

Your BAP insured has his truck damaged in an earthquake. He has Specified Causes of Loss coverage on the vehicle. Is the earthquake damage covered? (a) Yes, earthquake is a specified cause of loss. (b) No, only specified causes of loss are covered. (c) No, earthquake damage is covered only under Comprehensive coverage. (d) None of the above.

Yes, earthquake is a specified cause of loss.

Your BAP insured has suffered hail damage to his truck. He has Specified Causes of Loss coverage on the vehicle. Is the hail damage covered? (a) No, only specified causes of loss are covered. (b) Yes, hail is a specified cause of loss. (c) No, hail damage is covered only under Comprehensive coverage. (d) No hail damage is covered only under collision coverage.

Yes, hail is a specified cause of loss.

Mr. Jackson, a loan officer, has offered insurance to Betty, an application for credit. He did not disclose in writing that the choice of an insurance provider will not affect the decision regarding the extension of credit. Is Mr. Jackson violated Florida's Unfair Trade Practices laws? (a) No, Betty is free to obtain her loan anywhere. (b) No, Betty has only been offered insurance. (c) Yes, the law requires Mr. Jackson to disclose in writing that the choice of an insurance provider will not affect the decision regarding Betty's application for credit. (d) None of the above.

Yes, the law requires Mr. Jackson to disclose in writing that the choice of an insurance provider will not affect the decision regarding Betty's application for credit.

Mrs. Murser, your BAP insured has suffered a theft loss to two vehicles in her fleet. She has Specified Causes of Loss coverage on the vehicles. Are these losses covered? (a) No, only specified causes of loss are covered. (b) Yes, theft is a specified cause of loss. (c) No, the theft peril is covered only under Comprehensive coverage. (d) None of the above.

Yes, theft is a specified cause of loss.

Your Homeowners insured has just started a business and intends to operate a home office to "run the business". Can this exposure be insured under the homeowner's policy? (a) No, as business exposures are specifically excluded. (b) Yes, with a Business Pursuits endorsement the exposure can be covered. (c) The homeowner's policy already covers business exposures so the insured is already covered. (d) None of the above.

Yes, with a Business Pursuits endorsement the exposure can be covered.

Your Homeowners insured has a motor vehicle in dead storage at the insured residence. Do they have liability coverage for that vehicle? (a) Yes. (b) No. (c) Not addressed by Section II of the Homeowners policy. (d) No but liability can be endorsed.

Yes.

Little Richard, your auto insured has suffered a cracked driver's side window. He has a $1,000 Other Than Collision deductible but he was told that glass claims are not subject to a deductible. How will you advise your client? (a) You advise Little Richard that non-windshield glass claims are compensable under the Other Than Collision coverage subject to his $1,000 deductible. (b) You agree with your client but advise them that the $1,000 Other Than Collision deductible is per year and the side glass loss will count towards meeting the deductible. (c) You advise your client that all glass damage is paid first dollar and no deductible applies. (d) None of the above.

You advise Little Richard that non-windshield glass claims are compensable under the Other Than Collision coverage subject to his $1,000 deductible.

Your insured has advised you that she lives with her fiancé and wants to make sure that her policy will cover a vehicle which she and her fiancé own. (a) You advise her she is in need of Joint Ownership Coverage. (b) You advise her she is in need of Unrelated Custodian Coverage. (c) You advise her she is in need of Co-Owner Protection Endorsement. (d) None of the above.

You advise her she is in need of Joint Ownership Coverage.

Timothy Goodman, your BOP insured, has called to add a $20,000 sign to his BOP. He is very concerned about the sign being damaged from any number of perils. (a) You advise him not to work as Sign Coverage under the Optional Coverages of the BOP cover signage on an open perils basis. (b) You advise him not to work as Sign Coverage under the Optional Coverages of the BOP cover signage on a basic perils cause of loss basis. (c) You advise him not to work as Sign Coverage under the Optional Coverages of the BOP cover signage on a broad form perils cause of loss basis. (d) Signage cannot be covered under the BOP policy.

You advise him not to work as Sign Coverage under the Optional Coverages of the BOP cover signage on an open perils basis.

Your insured has advised you that an employee tripped over their own shoe laces and broke there nose. The insured would like to file a Medical Payments claim under their CGL. How will you advise the insured? (a) You file the claim and acknowledge that Medical Payments coverage under the CGL will pay the claim. (b) You advise the insured that the Medical Payments coverage excludes injury to employees . (c) You advise the insured that the Medical Payments deductible is probably higher that the amount of loss and dissuade the insured from filing the claim. (d) None of the above.

You advise the insured that the Medical Payments coverage excludes injury to employees.

You have received a phone call from the president of the local Savings and Loan asking for a quote on a BOP: (a) You advise the potential insured that you would be happy to provide a BOP quote for the Savings and Loan. (b) You advise the potential insured that Savings and Loans are ineligible for BOP coverage and recommend a CPP. (c) Savings and Loans can only be written on the BOP form if their offices do not exceed six stories. (d) None of the above.

You advise the potential insured that Savings and Loans are ineligible for BOP coverage and recommend a CPP.

You have received a phone call from an amusement park owner asking for a quote on a BOP: (a) You advise the potential insured that you would be happy to provide a BOP quote for their amusement park. (b) You advise the potential insured that amusement parks are ineligible for BOP coverage and recommend a CPP. (c) You advise the potential insured that you would be happy to provide a BOP quote for their amusement park as long as they do not exceed 75% of their gross sales in gasoline sales.

You advise the potential insured that amusement parks are ineligible for BOP coverage and recommend a CPP.

Betty Blander of Blander's Auto Beauties has asked if her Garage Policy provides coverage for completed operation? (a) You advise your client that completed operations are covered. (b) You advise your client that completed operations are not covered. (c) You advise your client that the policy does not address completed operations in any manner. (d) None of the above.

You advise your client that completed operations are covered.

Your insured has a BAP and wants to know if Section II Liability provides coverage for completed operations... (a) You advise your client that completed operations are covered. (b) You advise your client that completed operations are not covered. (c) You advise your client that the policy does not address completed operations in any manner. (d) None of the above.

You advise your client that completed operations are not covered.

Your insured has a BAP and wants to know if Section II Liability provides coverage for damage to property the insured owns... (a) You advise your client that this type of exposure is covered. (b) You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist. (c) You advise your client that the policy does not address an insured being liable to themselves in any manner. (d) All of the above.

You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist.

Your insured has a Garage Policy and wants to know if Section II Liability provides coverage for damage to property the insured owns? (a) You advise your client that this type of exposure is covered. (b) You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist. (c) You advise your client that the policy does not address an insured being liable to themselves in any manner. (d) All of the above.

You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist.

Mrs. Green, your PAP insured, has had her vehicle stolen in Mexico when she crossed the border on a California vacation to do a little shopping, which of the following apply? (a) You will advise Mrs. Green to obtain a Mexico Police Report to file her Comprehensive claim. (b) You will advise Mrs. Green that Mexico is not a covered territory in her policy and that her loss is not covered by her policy. (c) You will advise Mrs. Green that losses in Mexico come with a "double indemnity" penalty clause. (d) None of the above.

You will advise Mrs. Green that Mexico is not a covered territory in her policy and that her loss is not covered by her policy.

Tom Smitt, your auto insured has suffered a cracked driver's side window and is concerned that his $500 Other Than Collision deductible exceeds the cost of replacing the side window. How will you advise your client? (a) You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to a deductible . (b) You agree with your client but advise them that the $500 Other Than Collision deductible is per year and the side glass loss will count towards meeting the deductible. (c) You advise your client that all glass damage is paid first dollar and no deductible applies. (d) None of the above.

You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to a deductible.

Your auto insured has suffered a cracked driver's side window. She has a $250 Other Than Collision deductible but she was told that glass claims are not subject to a deductible. How will you advise your client? (a) You advise your client that all glass damage is paid first dollar and no deductible applies. (b) You agree with your client but advise them that the $250 Other Than Collision deductible is per year and the side glass loss will count towards meeting the deductible. (c) You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to her $250 deductible. (d) None of the above.

You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to her $250 deductible.

Your auto insured has suffered a loss to his back glass. He has a $500 Other Than Collision deductible but he was told that glass claims are not subject to a deductible. How will you advise your client? (a) You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to his $500 deductible. (b) You agree with your client but advise them that the $500 Other Than Collision deductible is per year and the back glass loss will count towards meeting the annual deductible. (c) You advise your client that all glass damage is paid first dollar and no deductible applies. (d) You advise your client that damaged Glass is not compensable under Other Than Collision Coverage.

You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to his $500 deductible.

Your Garage Policy insured wants to know if Section II Liability provides coverage for liability for movement of property by a mechanical device such as a hand-truck? (a) You advise your client that this type of exposure is covered. (b) You advise your client that this type of exposure is specifically not covered. (c) You advise your client that the policy does not address movement of property by a mechanical not attached to the covered auto in any manner. (d) None of the above.

You advise your client that this type of exposure is covered.

Your insured has a BAP and wants to know if Section II Liability provides coverage for liability for movement of property by a mechanical device such as a hand-truck... (a) You advise your client that this type of exposure is covered. (b) You advise your client that this type of exposure is specifically not covered. (c) You advise your client that the policy does not address movement of property by a mechanical not attached to the covered auto in any manner. (d) None of the above.

You advise your client that this type of exposure is specifically not covered.

Your insured has suffered a cracked windshield and is concerned that her $500 Comprehensive deductible exceeds the cost of replacing the windshield. How will you advise your client? (a) You agree with your client and offer your condolences. (b) You agree with your client but advise them that the $500 Comprehensive deductible is per year and the windshield loss will count towards meeting the deductible. (c) You advise your client that windshield glass is paid first dollar and no deductible applies. (d) None of the above.

You advise your client that windshield glass is paid first dollar and no deductible applies.

You have written a BOP for your agency's CPA. The insured does not have any commercial vehicles but does have an exposure to automobile related losses to employees driving to the post office and office supply store. How can you cover this exposure under the BOP? (a) You can't, the insured should purchase a non-owners business auto policy. (b) You can endorse the insured's BOP policy with Hired and Non-owned automobile liability coverage. (c) The BOP has a Business Auto section to cover an insured's automobile exposures. (d) None of the above.

You can endorse the insured's BOP policy with Hired and Non-owned automobile liability coverage.

You have an insured farmer who wants to cover his employees if injured. You endorse his policy with the Farm Employers' Liability/Medical Payments Endorsement... (a) You have properly insured the exposure. (b) The Custom Farming endorsement is the correct endorsement for this exposure. (c) There is no endorsement to cover Farm Employees. (d) None of the above.

You have properly insured the exposure.

A Homeowners insured has asked you how they can protect themselves against claims for libel and slander. You advise them... (a) You tell the insured to be careful what they say or write. (b) You tell the insured that there is nothing that can be done under the Homeowners policy to protect them against claims for libel and slander. (c) You recommend to the insured an endorsement for Personal Injury Liability to protect the insured against claims for libel and slander. (d) None of the above.

You recommend to the insured an endorsement for Personal Injury Liability to protect the insured against claims for libel and slander.

Your insured has asked how much coverage the BOP affords for Valuable Papers and Records on premises: (a) You tell her that the BOP provides $1,000. (b) You tell her that the BOP provides $5,000. (c) You tell her that the BOP provides $10,000. (d) You tell her that the BOP provides $100,000.

You tell her that the BOP provides $10,000.

The named insured has asked you if his Medical Payments coverage will apply as he was hit by a motor vehicle as a pedestrian. (a) You tell him that Medical Payments does cover injury sustained if struck as a pedestrian. (b) You tell him that Medical Payments does not cover injury if struck as a pedestrian. (c) You advise him to file a claim against his Homeowners insurance. (d) None of the above.

You tell him that Medical Payments does cover injury sustained if struck as a pedestrian.

Angie was permanently injured in an auto accident by the negligence of Ruthie. Angie's injuries are valued at $20,000. Angie has PIP and has recovered her full $10,000 limit, and she has $100,000 of single limit UM coverage. Ruthie has a liability insurance policy with limits of 50,000/100,000/$50,000. How much is Angie's UM recovery? (a) $10,000. (b) $20,000. (c) $100,000. (d) 0.

Zero.

Keith was permanently injured in an auto accident by the negligence of Nora. Keith's injuries are valued at $20,000. Keith has PIP and has recovered his full $10,000 limit, and he has $100,000 of single limit UM coverage. Nora has a liability insurance policy with limits of 50,000/100,000/$50,000. How much is Keith's UM recovery? (a) $10,000. (b) $20,000. (c) $100,000. (d) 0.

Zero.

Your insured has had a one vehicle accident with the roadbed. The policy has Other Than Collision coverage with a $250 deductible and no Collision coverage. The insured vehicle has $1,500 in damages how much will the insured collect after applying the correct coverage and deductible? (a) 0. (b) $250. (c) $1,250. (d) $1,500.

Zero.