220 Practice Questions (Got Wrong)
Small Business Boiler Form "business interruption" includes extra expense and covers on an "________" basis
Actual loss sustained
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?
Additional Coverages under Section II Liability of the Homeowners policy will cover up to $1,000 for damage to the property of others
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...
Animal Liability is excluded in the personal lines Citizens policy form.
This unit reviews and approves company applications to sell insurance:
Applications Coordination Unit
Aircraft Liability provides coverage for bodily injury, property damage, and _________. A)Personal Injury B)Passenger Liability C)Airport Liability D)None of these apply
B
Bodily Injury and Property Damage are EXCLUDED by all BUT which of the following under the BOP policy? A)Defects and Delays B)Ordinary Negligence C)Pollution D)Employee injuries
B
Ocean Marine Freight Coverage... A)Is not normally part of the Hull coverage B)Covers financial loss by vessel owner if freight charges are not paid C)Both A & B D)Neither A or B
B
The BAP's Section II Liability coverage does not apply to: A)Negligence B)Employee injuries C)Both A & B D)Neither A or B
B
The BOP provides a $ _____ coverage limit for off premises loss not including money and securities, valuable papers, and accounts receivable. A)$500 B)$5,000 C)$50,000 D)No limit for off premises loss
B
The Boiler and Machinery Policy has a $______ limit for expediting expenses. A)$10,000 B)$25,000 C)$50,000 D)Not specified in the policy
B
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
B
Insurance contracts are considered contracts of adhesion which means the contracts are:
Between parties of unequal bargaining power
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
C
How are benefits payable in the Hospital Indemnity Insurance policy? A)Benefits are payable on a reimbursable basis B)Medical expenses of guest are payable C)A flat amount per day for hospitalization is payable regardless of expenses or other insurance D)All of the above
C
The BAP insures which of the following exposures? A)Private Passenger type autos B)Livery conveyances C)Both A & B D)Neither A or B
C
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
C
Which is true? A)"Aggregate" means the total limit for the entire policy term B)"Occurrence" means the total limit per "incident" or "occurrence" of loss C)Both A and B D)Neither A or B
C
Which of the following can be increased under the Optional Coverages of the Businessowners Policy? A)Accounts Receivable B)Valuable Papers and Records C)Forgery and Alteration D)All of the Above
D
True or False: An insurer has 20 days from receiving formal notice from an insured to return the insured's pro-rata premium.
False
This Homeowners policy form covers Section I Property on a "all risk" basis:
HO-3
A bailee is:
The custodian of another's property
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 other boat to the tune of $10,000.
Zero dollars and zero cents will be paid as watercraft liability is excluded under Section II of the Homeowners policy for an owned watercraft with an inboard/outboard motor.
An insured's legal liability for the usage of a golf cart is covered:
covered at the residence premises; on a golf course while being used for golfing activities; and within a residential community where the insured residence is located.
An insured's legal liability for the usage of a golf cart is covered:
on a golf course while being used for golfing activities; and within a residential community where the insured residence is located.
Part E of the PAP requires an insured to:
submit to an examination under oath and file a proof of loss if requested
Your insured has suffered a loss compensable by the Crime policy form. The insured has a "Discovery" form and is reporting a loss which occurred prior to the inception of the current policy. There has been continuous coverage by the insured. Will his claim be paid?
yes, because the "Discovery" Crime coverage form will cover a loss which occurred prior to its inception if reported during the policy term
Which of the following are duties of the Bureau of Life & Health Insurer Solvency?
(a) solvency oversight and (b) analyzing policies and rates
In the Dwelling Program Coverage D reimburses the insured for a tenant occupied property for __________ of the insured property.
Fair rental value
True or False: Employee action against negligent third parties is extinguished by Workers Compensation.
False
True or False: There are no elimination periods in the Disability Income policy
False
True or False: The Permit Bond is used to protect the general public against unlicensed contractors and unfair business practices.
False. A Permit Bond is used to protect the general public against injury or property damage caused by the Principal for activities or operations that are events and not continuous operations.
True or False: A Supply Contract Bond guarantees the Principal's installation of contracted streets, sidewalks, sewers, streetlights and other infrastructure in a subdivision.
False. A Supply Contract Bond guarantees the Principal's delivery of goods at an agreed upon price.
True of False: A loan officer may solicit or sell insurance in connection with a loan or she may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.
False. A loan officer of a financial institution who is involved in the application, solicitation, or closing of a loan transaction may not solicit or sell insurance in connection with the same loan, but such loan officer 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 or False. Radar detectors are covered under Part D of the PAP if they are scheduled
False. Radar detectors are specifically excluded under Part D of the PAP.
Symbol 31 showing Specified Causes of Loss would cover fire damaged to an insured's tow truck.
False. The Garage policy utilizes Symbol 31 to cover the Physical Damage to a Dealers Lot or to cover vehicles for sale for non-dealers
PRP stands for
Preferred Risk Policy
True of False: Hangarkeeper's Liability coverage is bailee coverage.
True
True of False: In the CGL if the named insured is a limited liability company, the members and managers are insureds in the status as such.
True
True of False: Under Florida's Workers' Compensation laws the obligation of the employer is to furnish any and all usual, customary, and reasonable medical care without dollar limitation to the injured employee.
True
True or False: In the Homeowners policy "Additional Coverages" Trees, shrubs, and plants are covered up to 5% of Coverage A.
True
True or False: The Crime Form is written on an "all risk" cause of loss form.
True
The standard deductibles for a Citizens Homeowners policy is:
$1,000 All Perils and 2% Hurricane
In the Commercial Property policy's Additional Coverage Extensions there is an annual limit of $____ coverage for Fungus, Wet Rot, Dry Rot, and Bacteria.
$15,000
The Commercial Property policy coverage extension, Personal Effects and Property of Others, pays up to $____ for the personal effects of the named insured, partners, employees, and personal property of others in the care, custody or control of the insured.
$2,500
The CGL's Supplemental Extended Reporting Period must be requested in writing with ___ days after policy expiration:
60 days
The Products/Completed Operations Coverage Form: A)Provides a monoline form solely for the Products/Completed Operation's exposure B)Provides a workers compensation type coverage C)Provides coverage for those who are in the business of manufacturing, distributing,selling, serving or furnishing alcoholic beverages D)None of the above
A
Twisting is
A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage.
In the Commercial Property policy the additional coverage, Increased Cost of Construction, covers increased building cost due to an enforced ordinance or law which affects repairs up to __% of the limit of insurance or $______ (whichever is less).
Covers up to 5% of the limit of insurance or $10,000 (whichever is less)
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
D
True or False: An insured with unstacked UM coverage is injured by an uninsured motorists. The insured is only entitled to the UMBI coverage for the vehicle she was occupying.
False. An insured injured by an uninsured motorists is entitled to the broadest coverage for any insured vehicle of her auto policy's UM coverages.
True or False? The BAP includes $30 per day/$900 maximum Transportation Expense.
False. The BAP includes $20 per day/$600 maximum Transportation Expense
The Basic Form Cause of Loss perils include:
Fire and removal, Lightning, Explosion, Windstorm or Hail, Smoke, Aircraft and Vehicles, Riot or Civil Commotion, Vandalism, Sprinkler Leakage, Sinkhole Collapse, and Volcanic Action.
This Health Insurance coverage continuation provision states the policy is renewable to a stated attained age of the insured (i.e. 65) - premiums can be increased by age or class.
Guaranteed Renewable
Randall Rusty has suffered a temporary total disability in the course and scope of his employment at Tarzan's Toy Emporium when a shelving unit containing toy trains fell on him. How will he be compensated for his loss of wages?
He will paid 66 2/3% of his average weekly wages for up to 104 weeks
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?
No coverage as her ownership exceeds the 30 days of automatic coverage
Shirley Sterling has obtained her insurance license for the sole purposes of selling insurance exclusively for her family. Is this permissible under Florida law?
No, Shirley cannot obtain a license to solely sell insurance to "controlled business"
All BUT one of the following is an underlying reason for the creation of residual markets: A)Uninsurable exposures B)Undesirable underwriting characteristic C)Catastrophic nature of exposure D)Redlining
Redlining
An insured has the following limits: General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $ 300,000 Medical Payments Limit $ 5,000 A claim has been filed against your insured for $1,500,000 due to a roof collapsing on a structure your insured built. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim?
The $1,000,000 per Occurrence limit would apply per isolated incident or occurrence of loss
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?
The Broad Form Theft endorsement provides $1,500 coverage for securities.
Josephine's Garage is replacing all four tires on a customer's truck. The customer has tripped over an air hose in garage parking lot and broken his nose. How will the Garage Policy respond?
The Garage Policy will respond to liability associated with garage operations (no deductible applies)
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?
The HO-5 is the most comprehensive of the Homeowners policy forms. The loss will be covered on an open perils and replacement cost basis.
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?
The Homeowners policy will pay up to the policy limits for the legal liability of the insured operating a non-owned RV anywhere in the world.
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?
The insured can endorse the student as an insured onto the policy
You insure Accurate Accounting & Bookkeeping an S Corporation with $200,000 in payroll. The class code for all staff members is 8810 which has a fifty-five cent per hundred Workers Compensation cost. Excluding expense constants, what is the cost of the Workers Compensation for Accurate Accounting & Bookkeeping?
$200,000 of Payroll calculated at .55 per $100 of Payroll = $200,000/$100 X .55 = $1,100
The Homeowners Additional Coverage for Trees, Shrubs, and Plants has a $___ maximum for any one tree, shrub, or plant.
$500
Part Three Other States provides
(a) Other States provides automatic coverage in states not listed for Part One coverage (b) each covered state must be listed under Part Three Other States (c) insured is required to notify the insurer if work begins in any state listed in Part Three.
What amount of Ordinance and Law coverages is required in the Florida Homeowners policy?
10%
The NFIP defines Flood as "a general and temporary condition of partial or complete inundation of ___ or more acres of normally dry land areas.
2 or more acres
Transportation Expense coverage begins ___ hours after a loss (excluding Theft losses).
24 hours
Basic, Broad, and Special Forms Causes of Loss EXCLUDE which of the following: A)Building Ordinance or Law B)Fungus, Wet Rot, Dry Rot, and Bacteria C)Damage to Wiring or Devices caused by Artificially Generated Electrical D)Each of these are correct
D
The CGL's Coverage B covers: A)Personal Injury B)Advertising Injury C)Completed Operations D)Both A & B
D
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?
The clubs are covered as they were in the care custody and control of the insured
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. 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.
You have received a phone call from an amusement park owner asking for a quote on a BOP.
You advise the potential insured that amusement parks are ineligible for BOP coverage and recommend a CPP
In the Personal Inland Marine policy there is a ____ limit for unscheduled coin collections.
$1,000 limit for unscheduled coin collection and $250 for any one stamp, coin or individual article.
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?
$10,000 as the insured is not subject to a coinsurance penalty due to the policy amount and building value.
Definition(s) of total disability in a DI policy include
(a) complete inability to do any work (b) inability to work in an occupation for which the insured is qualified by reason of education, training or experience (c) unable to perform the duties of his or her own occupation.
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 or other business entities; and (d) owner-occupied dwellings not eligible for Homeowners insurance.
Liability for motorized land conveyances under the Homeowners policy form applies to:
(a) vehicles in dead storage (b) golf carts at the insured location, golf course, private residentialcommunity containing the Residence Premises (c) owned off-road recreational vehicles (RV) at the residence premises and Worldwide coverage for Non-owned RVs (d) vehicles to assist the handicapped covered worldwide.
Herman Hornblower, your insured, has cancelled his PAP policy. How many days does the insurer have to return Herman's premium payments?.
30
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?
4
Binders: No notice of cancellation or non-renewal is required unless a binder exceeds ___ days.
60
In Section III of the BAP, Specified Causes of Loss is: A)More limited in coverage than Comprehensive coverage B)Broader in coverage than Comprehensive coverage C)The same as Comprehensive coverage D)Another name for Collision coverage
A
In the BAP Comprehensive covered perils include: A)Wear and Tear B)Inherent Vice C)Both A & B D)Neither A or B
D
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
D
Section II Liability of the Garage Policy DOES NOT apply to: A)Organized racing B)Property in the insureds care, custody, or control C)Negligence D)Both A & B
D
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 now 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 $350,000 bond if she does not carry the prescribed liability limits D)both A and C
D
True or False: The Claims Made CGL policy form applies only to Bodily Injury or Property Damage claims which occur on or before the "retroactive date".
False. The Claims Made policy form applies only to Bodily Injury or Property Damage claims which occur on or after the "retroactive date".
True or False. Transportation Expense (TE) coverage does not require Other Than Collision or Collision coverage to be provided by an insured's policy for the TE coverage to be in effect.
False. Transportation Expense coverage applies only if Other Than Collision and Collision coverage is provided by an insured's policy
Your Garage policyholder has suffered a loss to several vehicles when they were damaged being transported by a vehicular conveyance. Symbol 31 is on the insured's Declarations page with Specified Causes of Loss listed as the sole Physical Damage coverage. Is this compensable?
No, the Garage policy specifically excludes loss under the Specified Causes of loss for collision, upset, or overturn of a transporting conveyance
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?
No, the Limited Theft endorsement excludes loss caused by tenant
Which type of provider is organized by physicians and hospitals who contract with an insurance company who offers their services via a negotiated scheduled contract:
PPO
Under the ISO BOP policy Liability and Medical Payments coverages are written on a ___________ basis
Per occurrence
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 Fasle. Florida Statutes prohibit PEOs from sponsoring self-insured health plans
True
True or False. In the Business Auto Policy PIP, UM, and Medical Payments must be added by endorsement.
True. In the Business Auto Policy PIP, UM, and Medical Payments must be added by endorsement.
True of False: Farm Liability excludes liability for pollutants and injury to farm employees
True. Liability for pollutants and injury to farm employees is excluded in the Farm Liability form.
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?
Vacant land owned by the insured is considered an "insured location" and the policy would respond up to its limits
Your insured has a BAP and wants to know if Section II Liability provides coverage for damage to property the insured owns...
You advise your client that no liability can result from an act by the insured to an insured'sown property (i.e. they can't be liable to themselves) and therefore no coverage exist
