20-44 Personal Lines Agent PreXam Flashcards ALL SETS

regulation, compliance, and enforcement of statutes related to the business of insurance and the monitoring of industry markets (regulatory oversight of company solvency, policy forms and rates, market conduct performance, and new company entrants in the FL market

Office of Insurance Regulation

$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.

$500.

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.

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.

Reduced Rates.

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

14 days.

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.

$250, $500, $1,000.

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.

Gain, loss or staying even, gambling and invest on stock market are examples.

Speculative Risk

policy limits that apply one limit to each person injured, another for BI claims of all persons insured in a single accident, and a separate limit for all property damage arising out of a single accident (i.e. 15/30/10)

Split Limits

$250,000.

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.

Coverage limits for two or more vehicles are added together.

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.

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.

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.

Mexico.

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

Primary and Excess.

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.

A newly acquired auto.

"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.

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

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.

The Loss Payee's collateral is protected.

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.

$240,000.

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.

Liability Coverage is predicated upon the negligence of an insured.

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.

Coverage D.

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.

Yes, with a Business Pursuits endorsement the exposure can be covered.

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.

$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.

$200.

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.

$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.

$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.

$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 trailers not used with watercraft. You advise $____ is covered. (a) $500. (b)$1,500. (c) $5,000. (d) $10,000.

$1,500.

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.

No coverage as her ownership exceeds the 30 days of automatic coverage.

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.

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

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.

$25, $50, or $75.

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.

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.

Steering Assemblies and Front Suspensions.

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.

Towing and Labor.

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.

Named Non-Owner Coverage.

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.

Collision.

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

Personal Injury Liability endorsement.

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.

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.

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

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.

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.

True.

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

False.

True or False? An insurer has 20 days from receiving formal notice from an insured to return the insured's pro-rata premium.

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.

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.

True.

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

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.

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? 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.

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?

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.

False.

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

False.

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

True.

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

False.

True or False? Flood insurance policies NEVER utilize Replacement Cost as a valuation method.

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.

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.

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.

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.

True.

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

False.

True or False? Florida law requires General Lines Agents to be licensed but not agencies.

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.

False.

True or False? Florida statute encourage rebating and no conditions apply.

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? 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.

Radar Detection Unit.

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.

First Aid Expenses.

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.

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.

Residing individuals living under a life estate arrangement.

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.

Insurance applies separately to each insured.

"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.

Owned.

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.

60 days.

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.

All of the above.

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.

The materially misrepresented themselves in their licensing application.

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.

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.

60 days.

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.

20 CE Hours.

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.

$6,500.

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.

$31,250.

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.

Insurance.

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.

You recommend to the insured an endorsement for Personal Injury Liability to protect the insured against claims for libel and slander.

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.

$25,000.

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.

The claim will be paid (less her deductible) as there is $1,500 per occurrence for theft of watches in the basic policy form.

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.

Demutualization.

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.

45 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.

Foreign.

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.

Additional Coverages under Section II Liability of the Homeowners policy will cover up to $1,000 for damage to the property of others.

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.

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.

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.

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

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.

Both A & B.

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.

$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 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.

Both B & 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 and 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.

Pro-Rata. (Pro-rata shares provisions provide that each policy pays only the limits each bears to all of the limits.)

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.

Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance".

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.

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.

Physical Hazard. (A Physical Hazard is a physical characteristic which increases the probability and severity of loss.)

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 characteristics which increase the probability and severity of loss is? (a) Morale hazard. (b) Moral hazard. (c) Physical hazard. (d) None of the above.

This loss will be covered on an open perils basis for the Dwelling and Personal Property.

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.

No, they law requires they have two declinations.

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, the quote from the authorized insurer is a bar to obtaining a Citizen's policy.

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.

Advise the proposed insured an endorsement is available to insure the home in the name of the trust.

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.

$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.)

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.

An Attorney-in Fact.

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

18 years of age.

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.

the cost to replace an item or property at the time of loss, minus depreciation

Actual Cash Value (ACV)

Loss assessment.

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.

Increases the basic PIP benefit of $10,000 per person for additional amounts.

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.

a type of policy limit which limits coverage to a specified total amount for all losses occuring w/in the policy period

Aggregate Limit

conviction of a 3rd degree felony, liability for all unpaid claims, suspencion or revocation of all insurance licenses

Aiding and Abetting an unathorized insurer

insurer other than a domestic or foreign insurer

Alien

Redlining.

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.

Insured is required to retain an attorney.

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.

"open perils" insurance - protecting the insured from loss arising from any peril other than those perils specifically excluded by name

All Risk Insurance

Set insurance rates.

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.

Appoint physical location of insurers.

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.

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.

Authorized.

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.

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.

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 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.

Insurer.

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.

Alien.

An _______ insurer is an insurer other than a domestic or foreign insurer. (a) Domestic. (b) Foreign. (c) Alien. (d) None of the above.

Sliding.

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.

Twisting.

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.

Churning.

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.

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.

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

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.

Loss of Use. (An indirect loss is the economic loss which flows as a consequence of direct loss.)

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 Settlement on the DP-1 is Actual Cash Value.

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.

2.

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

Misrepresentation.

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.

Zero.

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.

the authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer

Appointment

in the event the insured and the insurer cannot agree on amount of claim settlement, each appoints an appraiser

Appraisal Clause

No coverage as property on exhibition away from the insured premises is specifically excluded.

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.

policy transfer from one insured to another

Assignment

Youthful unmarried male.

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.

Rural/Farm.

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

Symbol.

Automobiles are assigned a _________ which recognizes the value of a vehicle and its "damageability". (a) Status. (b) Recognition. (c) Symbol. (d) Letter.

$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.

Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance".

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.

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 & B.

Binders may be? (a) Oral. (b) In Writing. (c) Both A & B. (d) Neither A or B.

single amount of coverage applies to ANY loss of injury up to the single amount

Blanket Insurance

a method of determing the true insurable worth of a structure or vehicle according to any measure that will prvoide the most accurate analysis of that property's value

Broad Evidence Rule

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.

an originating general lines agent placing business w/ a company w/ which he/she is not appointed

Brokering Agent

$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.

Coverage D - Damage to Your Auto.

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.

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.

Neither A or B.

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.

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

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.

insurer may cancel only for non payment of premium, material misrepresentation or fraud, or suspension or revocation of the DL or registration of vehicle.

Cancellation after 60 days of new policy or renewal

F.S states an insurer can cancel for any reason except discrimination with respect to race, color, national origin, creed, marital status or sex.

Cancellation during the first 60 Days of a new policy

a company that provides risk mitigation services for its parent company

Captive Insurance Company

specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to special.

Causes of Loss Form

- act as an insurer - transact insurance (directly or indirectly) - solicit insurance applications If does so w/out certificate, commits 3rd degree felony

Certificate of Authority

the head of the department of financial services, also known as the treasurer.

Chief Financial Officer

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.

$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.

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.

Merged together in 2001 from FRPCJUA and FWUA to provide a market for those residential Properties unable to obtain Coverage in Voluntary market

Citizens

If the dwelling will be occupied by the named insured.

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.

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.

$150,000.

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.

Are eligible for mitigation credits.

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

lower rates for insureds who insure a high percentage of the value of the subject property

Coinsurance

requires insured to pay part of loss if coverage is less than the specified percentage of the value of the property at the time of loss FORMULA: Loss x (Limit of Insurance/Value of Property x Coinsurance %) = Loss Settlement

Coinsurance Clause

Loss X Limits of insurance/value of property x coinsurance percentage = Loss Settlement

Coinsurance Formula

All direct and accidental loss not covered by Collision coverage.

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.

For name insured and family members only, this increases PIP medical payments from 80% to 100% and work loss from 60% to 80%. Limit remains $10,000

Extended Personal Injury Protection

- foreign or alien insurer authorized to do business in this state - during 3 fiscal years - written avg 25%+ direct premiums in this state than in state of domicile - direct premiums are 55%+ of its total premiums written in U.S. during 3 fiscal years

Commercially Domiciled Insurer

reduces a plaintiff's damages by the plaintiff's degree of negligence

Comparative Negligence Rule

Property and liability insurance Policies are said to be conditional contracts because the obligation OR the insurer to perform may be condition Upon the insured satisfying Certain conditions.

Conditional Contract

Licensed construction professional.

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.

Parties are of un equal bargain power. and one party (the insured) cannot negotiate the terms. having to take the offer of the other party (the insurer) as made

Contract of Adhesion

if one contributed to their own injuries in any way, they could not recover a dime from others

Contributory Negligence Rule

when the majority of insurance written is for family members

Controlled Business

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.

Private structures on the residence premises that are not attached to the main dwelling.

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.

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.

Coverage C in the Homeowners policy covers: (a) Dwelling. (b) Other Structures. (c) Personal Property. (d) Loss of Use.

Loss of Use.

Coverage D in the Homeowners policy covers: (a) Dwelling. (b) ther Structures. (c) Personal Property. (d) Loss of Use.

Anywhere.

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

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.

Legal Liability.

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.

Written by agents with appointments.

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.

money amount w/ which liability insurance is concerned.

Damages

$230,500.

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.

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

Declarations

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.

Both B & C.

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 A & B.

Defamation includes: (a) Libel. (b) Slander. (c) Both A & B. (d) Neither A or B.

physical harm to property due to peril

Direct Loss

physical loss to tangible property

Direct Loss

A and B are correct.

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.

insurance formed under the laws of this state

Domestic Insurance Company

the state/country/providence under the laws of which the insurer was formed

Domicile

contribution based on the amount of policies regardless of their limits

Equal Shares

Both A & B.

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.

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.

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.

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.

Employee Retirement Income Security Act

ERISA

Savings clause.

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.

Deemer clause.

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.

Preemption.

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.

a document which is attached to the policy and modifies or changes the original policy in some way

Endorsement

An endorsement that extends liability coverage, (and optionally Medical payments) to name individuals for a nonowned automobile which is furnished for their regular use.

Extended Nonowned Coverage

Greek word "Ethos", personal respect, ideals of service to others in an unselfish manner

Ethics

all other insurances exhausted before the policy will apply

Excess

Camper bodies shown on the Declarations Page.

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.

Both A & B.

FAJUA servicing carriers undertake all: (a) Underwriting. (b) Servicing. (c) Both A & B. (d) Neither A or B.

Florida insurance guaranty association - is a statutorily created association that pays certain outstanding claims of insolvent insurance companies. maximum amount FIGA will pay is 300,000 all claims are subject to 100 ded

FIGA

2%.

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.

insolvent.

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

Florida residential Property and Casualty Underwriting Association

FRPCJUA

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.

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

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.

No lost time claims.

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.

Pro-rata.

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.

Florida Windstorm Underwriting Association

FWUA

one should not Profit From the response provided by the Policy

Principal of Indemnity

45 days.

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

insurance formed under laws of any state, district, territory, or commonwealth of the U.S. other than this state

Foreign Insurance Company

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

Franchise Deductibles

reimbursement for damages that do not readily have quantitative measurement

General Damages

F.S. 627.7288 prohibits application of any deductible in adjustment of breakage of windshield glass

Glass Breakage - Deductibles

something that increases the probability that a loss will occur

Hazard

Per year.

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

4 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.

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.

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.

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.

10%.

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

Yes, you can bind coverage either orally or in writing.

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.

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.)

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.

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.

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.

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 occured, no better, no worse

Indemnity

Both A and C.

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.

a property insurance option which provides that policy limits will increase a certain percentage at regular intervals (i.e. annually)

Inflation Guard

F.S. 627.7137 requires a liability insurer to disclose full policy information to a claimant within 30 days, upon written request. If requested in writing by the claimant or claimants attorney, an agent is also required to disclose the "name and coverage of each insurer" and to forward the request to all affected insurers

Information Disclosure to claimants

any insurance wherein payment by the insurer will be paid directly to the insured or other specific named interest.

Property insurance

an extension of Ocean Marine coverage to insure transportation of goods over land. Also covers a variety of portable property

Inland Marine Insurance

Insured's Behalf.

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.

any actual and substantial economic interest in tle safety Or Preservation of the subject OR the insurance free from Loss, destruction. or Pecuniary damage or impairment

Insurable Interest

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.

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

Insurance

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.)

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.

Indemnify.

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.

prompt notice must be given, insured must cooperate with insurer, insured must act in a way to preserve the insurer's rights

Insured's duties following loss

every person engaed as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity

Insurer

Controlled.

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.

Other Party.

Liability insurance responds on behalf of an Insured's liability to an ___________. (a) Insured. (b) Other Party. (c) Insurer. (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.)

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.

customer representative appointed by a general lines agent/agency to assit that agent/agency in transacting only the business of private passenger motor vehicle insurance

Limited Customer Representative

a kind, line, or class of insurance an agent is authorized to transact

Line of Authority

You advise Little Richard that non-windshield glass claims are compensable under the Other Than Collision coverage subject to his $1,000 deductible.

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.

Multiple-employer Welfare Arrangement

MEWA

Considered insurers by Florida Statute.

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.

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.

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.

12,000 miles and one year.

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.

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.

None of the above. (Mechanical Breakdown covers mechanical breakdown and excludes collision and specified perils.)

Mechanical Breakdown covers the failure of? (a) Comprehensive. (b) Collision. (c) Specified Perils. (d) None of the above.

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.

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.

an untrue statement by the insured, made in an application but does not become a part of the policy

Misrepresentation

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.

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.

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.

Yes, as she carries liability limits greater than or equal to 10/20/10.

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.

an endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto while the insured is operating autos owned by others

Named Nonowner Coverage

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.)

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.

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

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.

When a policy begins.

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.

10%.

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

Up to 10% of Coverage C.

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.

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.

Educational.

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

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.

Professional Employer Organization

PEO

Preferred Risk Policy.

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

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.

$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.

percentage of the property value of percentage or percentage of the policy limits

Percentage Deductible

a Contingency that may cause a loss (such as fire or Windstorm)

Peril

provides broad coverage for both owned and non-owned autos, used maintained or operated by the insured and family

Personal Auto Policy (PAP)

coverage provided in auto policies in FL that covers the insured's own injuries on a 1st part basis w/out regard to fault **required & must be carried by all owners of motor vehicles in FL

Personal Injury Protection (PIP)

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 & 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.)

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.

Broadest.

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.

written contract of or written agreement for or effecting insurance or certificate

Policy

applies 1st up to its limit

Primary

ordinary cars, station wagons, jeeps, utility autos (pickups, panel trucks, and delivery vans 1,5000 lbs or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto

Private Passenger Autos

pay the proportion (limit: all limits) (i.e.$25,000/$100,000 =1/4)

Pro Rata

stablished in 2013 will help Floridians Find Coveragein the Private market

Property Insurance Clearinghouse

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.)

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.

an unbroken connection between an occurence and damage that grows out of the occurence

Proximate Cause

unbroken connection between an occurrence and damage that grows out of the occurrence. example, fire, further damage is cased by smoke, water used to extinguish the fire, moving property out of the path of fire.

Proximate Cause

due to negligence by defendent

Punitive Damages

Also known as absolute risk, is insurable

Pure Risk

Tier Three rates are required to be actually sound with any shortfalls assessed to Tier Three participants.

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.

50%.

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

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.)

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.

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.

the cost to replace a damaged or destroyed item of property, w/out deducting depreciation

Replacement Cost

an endorsement that can be added to an HO3 form to provide replacement cost coverage on personal property (with limitations)

Replacement Cost Endorsement

statement an applicant for insurance believes to be true

Representations

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.

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.

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.

Markets of last resort.

Residual Markets are intended to be: (a) Markets of first resort. (b) Markets of last resort. (c) Buyers markets. (d) Sellers markets.

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.

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.

the chance of financial loss

Risk

Loss.

Risk means the chance of financial: (a) Gain. (b) Loss. (c) Gain and loss. (d) Neither gain or loss.

Not eligible for mitigation credits.

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.

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 provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility

SR-22 Filing

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.

Seals cannot collect against his UM coverage.

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.

insurance established by or on behalf of any individual, partnership, association, corporation, trustee, governmental unit, employer, or employee organization, or any other organized group (covering more than 10 employees)

Self-Insurance

charging an applicant for a specific ancillary coverage in addition to the cost of the auto insurance coverage applied for without his consent

Sliding

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.

reimbursement for out of pocket expenses

Special Damages

each property named and covered for a separate amount

Specific Insurance

coverage limits for 2 or more vehicles are added together in determining the limit of insurance coverage available to an injured person in any one accident.

Stacked

a jurisdiction other than the state of Florida (any state, district, territory, or commonwealth in the U.S.)

State

a flat amount from a loss payment, regardless of the size of the loss.

Straight Deductibles

insured has the right to collect damages from another party but elects to claim the damages from her own insurance policy

Subrogation

Inform him that original and replacement parts are covered.

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.

Risk.

The "change of financial loss" refers to the concept of: (a) Subrogation. (b) Adhesion. (c) Risk. (d) All of the above.

Hours of operation.

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.

Both A & B.

The Citizen's Wind-only policy covers: (a) Windstorm. (b) Hail. (c) Both A & B. (d) Windstorm and Flood.

5%.

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

DP-3.

The Dwelling Policy with the greatest amount of coverage is the: (a) DP-1. (b) DP-2. (c) DP-3. (d) DP-4.

Both A & B.

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.

Sinkhole.

The Homeowners policy's General Exclusions include all BUT which of the following? (a) Flood. (b) War. (c) Sinkhole. (d) Government Action.

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.

Loss or Destruction.

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.

A.

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

Occupying.

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

Amount of Loss.

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

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.)

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.

10%.

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

$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.

All of the above.

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.

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.

All of the above.

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.

Ownership and control.

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.

Concealment. (Concealment is the failure of the insured to reveal relevant facts known to the insured in applying for insurance.)

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.

Plywood.

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

You tell him that Medical Payments does cover injury sustained if struck as a pedestrian.

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.

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

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.

Provide coverage against the failure of an original part.

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.

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

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.

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.

False.

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.

Dwelling Form.

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.

General Property Form.

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.

Residential Condominium building Association Policy Form.

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.

Extended Non-owned Coverage.

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.

Miscellaneous Type Vehicle.

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.

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.

Not eligible for mitigation credits.

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

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.

Disablement.

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.

All of the above.

Towing and Labor limits usually include? (a) $25. (b) $50. (c) $75. (d) All of the above.

Both A and B.

Transacting insurance includes: (a) Solicitation or inducement. (b) Negotiations. (c) Both A and B. (d) Neither A or B.

48 hours.

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

24 hours.

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

True.

True of False? "Bodily Injury" means bodily harm, sickness or disease and resulting death.

False.

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.

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

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

True.

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

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.

False.

True of False? Business data is covered under the Homeowners policy form.

True.

True of False? Cancellation conditions in general allow the insured to cancel at any time.

False.

True of False? Changes to hurricane deductibles can be made at any time during the Homeowners insurance policy term.

False.

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

True.

True of False? Florida law prohibits discrimination based upon the factors of race, color, creed and marital status.

False.

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

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.

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.

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.

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.

knowingly using an incomplete comparison of insurance policies in order to the get the insured to buy a policy from you

Twisting

Knowingly making any misleading representations as an inducement.

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.

Direct and Accident.

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.

one not authorized by the department to transact insurance in this state

Unauthorized Insurer

Potential for unpaid claims.

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.

Residence premises not described in the Declarations.

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.

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.

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.

Lessee.

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.

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.

if 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 the premium has been paid

Valued Policy Law

policy condition, either based on information in the insured's application or inserted by the insurer

Warranty

10%.

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

$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.

Both A & B.

What style of limits are available on the PAP? (a) Single. (b) Split. (c) Fractional. (d) Both A & B.

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.

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.

In person outside of the state of Florida.

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.

HO-6.

Which Homeowners policy form does not apply to an owner occupant? (a) HO2. (b) HO3. (c) HO4. (d) HO6.

HO4.

Which Homeowners policy form does not apply to an owner occupant? (a) HO2. (b) HO3. (c) HO4. (d) HO6.

Non-permissive user.

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".

Insured cannot obtain automobile insurance in the private - competitive market.

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.

Misrepresentations and false advertising of insurance policies

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.

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.

NFIP.

Write Your Own Flood programs are backed 100% by: (a) NFPI. (b) NFIP. (c) PFP. (d) FAIA.

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

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.

Cannot obtain automobile insurance in the private - competitive market.

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.

It is not permissible per F.S. 626.7354.

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.

No, the Homeowners policy permits up to two roomers and boarders.

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.

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.

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.

Coverage B.

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.

You advise her she is in need of Joint Ownership Coverage.

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.

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.

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.

$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.

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.

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.

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.

False.

True or False? An insurance company owned by its policyholders is a Stock Insurance Company.

False.

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.

True.

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

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.

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.

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

True.

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

False.

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

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 PAP's Declarations identifies the named insured and any loss payees.

False.

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

True.

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

False.

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

False.

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

Other Than Collision.

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.

24 CE Hours.

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.

Domestic.

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.

Policy.

A _________means a written contract of or a written agreement for or affecting insurance. (a) Contract. (b) Insurer. (c) Policy. (d) Legal Proceedings.

Solicit new customers at the supervising General Lines Agent's office or by telephone from that office.

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.

Yes, because any solicitation 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.

$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.)

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.

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.

Unauthorized.

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.

Authorized.

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.

Repossession of auto.

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.

None of the above.

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.

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.

Mutual Insurer.

An insurance company owned by its policyholders is a? (a) Mutual Insurer. (b) Reciprocal Exchange. (c) Stock Insurance Company. (d) Lloyds of London.

Stock Insurance Company.

An insurance company owned by stockholders is a? (a) Mutual Insurer. (b) Reciprocal Exchange. (c) Stock Insurance Company. (d) Lloyds of London.

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.)

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.

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.

Not to worry because the PAP's liability coverage includes a defense for her up to her policy limits.

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.

Advise the insured that cemetery plots and burial vaults are covered as insured locations.

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.

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

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.

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.

Person's in the custody of Answers A and B aged 24 and under.

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.

The policy will not pay for the loss as all three classes of property are excluded.

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.

No, the Limited Theft endorsement excludes loss caused by tenant.

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.

Citizens Choice statute.

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.

On a golf course.

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.

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.

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.

Non-payment of premium.

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.

10 days.

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.

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.

Applications Coordination Unit.

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.

one authorized by a subsisting certificate of authority issued by the department to transact insurance in this state

Authorized insurer

monitors the conduct of insurers as it realtes to policyholder treatment

Bureau of Market Conduct

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

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.

Place the insurer on formal written notice of his intention 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.

Concealment.

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.

Advise the insured that you can write golfer's equipment on a blanket basis just as he request.

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.

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

Binder

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.

Eligible.

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.

Burst water pipe.

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.

If there is a total loss by a cover Peril to building structure, mobilehome, or manufacture housing Unit the insurer must pay the amount Provided in the policy for which Premium has been paid.

Florida ''Value Policy Law"

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.

10 days.

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

100.

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

45 days.

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

100 days.

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

25% and 50%.

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%.

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.

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.

All of the above.

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.

No, it is over 10,000 pounds.

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.

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.

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.

the District of Columbia and any state or territory of the U.S. in which an insurance agent maintains his/her principle place of residence or principal place of business and is licensed to act as an insurance agent

Home State

Number of occupants.

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.

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

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.

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.

No, the General Lines Agent license requires the agent to be domiciled in the state of Florida.

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.

Do not increase the limits of insurance for each coverage.

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.

Fire.

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

Fair rental value.

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 .

Excluded.

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.

Flood Insurance Rate Map.

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.

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.

180 days.

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.

Both A and B.

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.

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.

Liability.

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.

One who has an economic interest in an insured vehicle.

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.

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.

$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.

economic loss which is a result of direct loss

Indirect Loss

$50,000.

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.

$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.

Jean could have her licensed terminated.

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.

$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.

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.

$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.

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.

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

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.

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.

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

Liability Insurance

All of the above are covered.

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.

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.

Vehicles in dead storage.

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.

if insurer broadens coverage w/out additional premium w/in some period of time prior to the policy period (60 days) or during the policy period, the insured receives the benefit

Liberalization

the person designated on an insurance policy as the one to be paid in case the property is damaged/destroyed

Loss Payee

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

Loss of Use Coverage

Engines and Transmission.

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.

All of the above.

Mechanical Breakdown insurance extends to? (a) Parts. (b) Labor. (c) Rental Reimbursement. (d) All of the above.

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.

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.

If the insured is struck as a pedestrian.

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.

Without regard to fault or legal liability.

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.

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.

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

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.

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.

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.

2001.

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.

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.

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.

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.

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

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.

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

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.

No, as he has unknowingly provided inaccurate information of a material nature.

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.

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

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.

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

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.

No, as her policy requires her to provide "prompt notice of loss".

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".

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.

Fire.

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

Both A and B.

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

Both B & C.

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

All of the above.

Other Than Collision covered perils include? (a) Water Damage. (b) Glass Breakage. (c) Wind Damage. (d) All of the above.

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.

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.

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.

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

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.

Coverage E Liability.

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.

insurance applies separately to each insureds

Severability

Place the insurer on formal written notice of herintention to cancel.

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.

policy limits that apply to all BI and property damage arising from a single accident

Single Limits

$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.

Are eligible for mitigation credits.

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

Carrying PIP/PD.

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.

Yes and she may post a bond if she does not carry the prescribed liability limits.

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.

- not to exceed 6 months - issued for the purpose of continuing or winding up the business affairs of the agent/agency in the event the licensed agent has died or is unable to perform his/her duties b/c of military service or illness, or other physical/mental disability

Temporary License

Covers direct physical damage unless excluded.

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.

Replacement cost on contents.

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

Apartment buildings.

The Citizens commercial policy will insure: (a) Hotels. (b) Boarding houses. (c) Apartment buildings. (d) Rooming houses.

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%.

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.

Both A & B.

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.

DP-1.

The Dwelling Policy with the least amount of coverage is the: (a) DP-1. (b) DP-2. (c) DP-3. (d) DP-4.

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.

Fire.

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

Cannot obtain automobile insurance in the private - competitive market.

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.

10,000 pounds.

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.

Business Auto coverage.

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

Both A & B.

The FAJUA offers: (a) Personal Auto coverage. (b) Business Auto coverage. (c) Commercial General Liability. (d) Both A & B

Personal Auto coverage.

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

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 licensed Florida automobile insurance companies.

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.

2 carriers.

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.

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 or more acres.

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.

Insured.

The PAP affords liability coverage to those that have the status of? (a) Claimant. (b) Plaintiff. (c) Insured. (d) All of the above.

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

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.

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.

Yes, and the Mechanical Breakdown Insurer has subrogable rights against the responsible party.

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.

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.)

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.

$100.

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.

$200,000.

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 $______. (a) $100,000. (b) $200,000. (c) $300,000. (d) there is not limit.

$300,000.

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.

$1,000 All Perils and 2% Hurricane.

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.

$500, All Perils and 2% Hurricane.

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.

Insurance Services Office.

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.

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

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.

Preferred Risk Policy.

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.

Personal Property Replacement Cost.

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.

Building Ordinance or Law.

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.

Extended Replacement Cost.

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.

Inflation Guard.

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.

HO-3.

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-2.

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-5.

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-4.

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

HO-6.

This Homeowners policy form insures condominium owners? (a) HO-2. (b) HO-3. (c) HO-4. (d) HO-6

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-2.

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

Property Damage.

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.

Business.

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

False.

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

True.

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

You advise your client that non-windshield glass claims are compensable under the Other Than Collision coverage subject to a deductible.

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.

- solicitation or inducement - preliminary negotiations - effecutuation of a contract of insurance - transaction of matters subsequent to effectuation of a contract of insurance and arising out of it

Transacting Insurance

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.

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.

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

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

True.

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

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 Special Form DP-3 covers building structures on an "open peril" basis.

False.

True of False? Twisting is permitted by law but Sliding is considered an unfair practice.

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.

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.

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

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

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.

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.

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.

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? 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. 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.)

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.

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? 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.

True or False? Fraud only applies to the filing of insurance claims.

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

False?

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

True.

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

False.

True or False? In the Homeowners policy form Ordinance and Law cannot be increased from the 10% basic limit.

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. (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? Indirect loss means economic loss which flows as a consequence of direct loss.

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? 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.

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.

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.

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?

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".

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.

False.

True or False? On average rates in rural areas are higher than rates in urban areas.

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

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.

True.

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

False.

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

True.

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

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

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

Any vehicle you own.

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.

Safe Driver Insurance Plan.

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.

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.

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.

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.

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

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.

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.

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.

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.

the uniform application of the National Association of Insurance Commissioners for nonresident agent licensing, effective Jan 15, 2001, or susequent versions adopted by rule by the department

Uniform Application

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

Uninsured Motorist

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

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.

Workers Comp, PIP, Med Pay, Liability, Uninsured Motorists

WPMLU

The policy will pay $250,000. (The policy will pay up to $600,000 for any one or combination of buildings.)

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.

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

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.

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

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.

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

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.

Florida Insurance Guaranty Association.

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.

45 days notice to the insured is requited, except 10 days notice for nonpayment of premium.

When Cancellation is permitted

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.

Insurance Company.

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.

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.

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.

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.

Livery.

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.

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.

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.

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.

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 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 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 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.

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.

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.

Single family homes.

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.

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.

Both A and C.

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.

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.

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.

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.

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.

All of the above.

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.

DP-2 covers the DP-1 perils with broadened other coverages.

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.

Liability, Medical Payments, Uninsured Motorists, Comprehensive, and Collision.

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.

Right to cancel the policy.

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.

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.

Physical, Moral, and Morale Hazard.

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.

Title Agent.

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.

Accumulation of driving points.

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.

Failure to account for funds held in trust for an insurer or insured.

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.

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.

Paying for intentional loss.

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.

Bureau of Market Conduct.

Which unit protects 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 Market Conduct

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.

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.

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.

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. 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.

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.

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.)

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, 100% production based compensation (i.e. commission based) is not permitted per 626.7354

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.

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

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.

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

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.

Liability coverage for motorized vehicles used to assist the handicapped is limited to its usage while actually being used to assist a handicapped person.

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.

He is not covered, the Homeowners policy provides Liability coverage for a student away at school if aged 24 or younger.

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.

Yes.

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.

The policy will pay $0 under Section II.

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 claim will be paid up to the Liability limits of the policy.

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.

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 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.

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.

$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.

The Homeowners policy will not pay anything as owned RVs are not covered for Liability off the residence premises.

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.

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.

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.

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.

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.

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 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 his $500 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.

Not covered because the insurer could not inspect the damaged part.

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.

Automobile accident involving bodily injury.

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.

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

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.

$2,000.

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.

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.

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.

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.

Both B & C.

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.

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.

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.

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.

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

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.

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.

Yes, but there is a limit to loss of personal property at a secondary residence of 10% of Coverage C.

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.

Mitigate inspection prior to loss.

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.

$6,500.

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.

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.

HO6.

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.

They CANNOT make a late payment if the renewal premium is not received by the date of expiration the policy ceases.

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,

Business Pursuit endorsement.

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.

The claim will be paid less the watercraft liability deductible (standard $500 in Florida).

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.

No, watercraft liability is excluded under Section II of the Homeowners policy for an owned watercraft with an inboard/outboard motor.

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.

Yes, as it is under 26 feet.

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 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 he carries liability limits greater than or equal to 10/20/10.

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.

Post a bond in the amount of $350,000.

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.

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.)

________ 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.

___________ 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.

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.)

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

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.)

______________ is a policy provision which broadens coverage without additional premium. (a) Subrogation. (b) Cancellation. (c) Liberalization. (d) None of the above.