Online Final

What is the minimum amount of coverage for Loss Assessment in a Florida HO-6 Condominium policy?

$2000

What is the required number of days an insurance company is required to put the insured on formal written Notice of Cancellation for the reason of "non-payment of premium"?

10 days

Craig Gorney has suffered a compensable Theft loss and is in need of a temporary substitute vehicle while his claim is being resolved. You advise Craig that the Transportation Expense coverage begins ___ hours after a Theft loss.

48 hours after a theft loss

All of the following are benefits under the Florida Workers Compensation law except? A)legal expenses B)medical expenses C)disability expenses D)death benefits

A

All of the following are penalties for non-compliance with Florida's compulsory insurance requirements EXCEPT: A)repossession of the registered vehicle B)suspension of driver's license and vehicle registration of the registered owner C)personal liable for payment of PIP benefits to those entitled to receive such benefits D)no "immunities" from legal liabilities which are granted to those who do comply

A

How old must an applicant be to be eligible to earn an insurance license? A)18 B)21 C)no age requirement BUT must be a U.S. citizen or lawfully permitted to work in the U.S. D)no age requirement BUT must pass a required state exam and a back ground check by the department

A

The Insuring Agreement states all but which of the following? A)the Insuring Agreement list the general overarching description of what is covered B)the Insuring Agreement states that policy contains all agreements and responsibilities between insurer and insured C)the Insuring Agreement states the policy premium D)the Insuring Agreement states that compliance with conditions exists

A

Ricky Racoon has driven his sports car into a lake. The vehicle is considered a total loss valued at $19,000. Ricky rented a substitute vehicle for 20 days at $30 per day for a total of $600 prior to the claim settlement.

A direct loss is the physical harm to tangible property. An indirect loss means the economic loss which flows as a consequence of a direct loss.

Which of the following, if any, of the following statements are true? (pick as many as apply) A)fraternals are considered insurance companies B)unauthorized insurers have been issued a certificate of authority by the department C)a domestic insurer is one formed under the laws of "this state" D)an alien insurer is one formed under the laws of any jurisdiction of the United States other than the "this state"

A, B

As regards "the purpose of an insurance license", which if any of the following are true? (choose all that apply) A)rebating is generally unlawful B)the license is not to be issued for the sole purpose of selling "controlled business" C)a license holder shall engage in good faith and fair dealing with the insuring public D)an agent's best sales techniques include churning, twisting, and bundling

A, B, C

Which of the following are typical exclusions in property policies? (choose as many as apply) A)war B)nuclear hazard C)intentional losses by the insured D)power failure

A, B, C, D

All of the following are exposures covered by Commercial General Liability policy? A)premises and operations B)automobile liability C)products and completed operations D)workers' compensation

A, C

Which of the following are true regarding the "cancellation" of insurance policies? (choose all that apply)? A)an insurance company must provide some specific number of days to cancel a policy B)cancellation conditions in general allow the insurance company to cancel at any time C)cancellation conditions in general allow the insured to cancel at any time D)cancellation can only take place if mutually agreed to and in writing

A, C

The DP-2 policy form covers which of the following perils? (choose all that apply) A)damage by burglars B)earthquake C)falling objects D)flood E)weight of ice, snow, or sleet F)nuclear

A, C, E

Exceptions to the rule of indemnity include which of the following? (choose all that apply) A)direct payments to a claimant in a liability claim B)stated value C)actual cash value D)replacement cost endorsements

A, D

A ________________ license enables the holder to solicit, sale, and service only Personal Lines of insurance. A)6-20 Personal Adjuster Agent License B)20-44 Personal Lines Agent License C)20-44 Personal Lines Agency License D)4-40 Personal Lines Agent License

B

All of the following are elements of a valid contract EXCEPT: A)an offer made by one party to another or others B)something of value exchanged between the parties C)an equivocal acceptance of the offer D)the agreement must have a legal intent

B

Richie, a licensed insurance agent in Georgia, has referred a client to you; which of the following is in support of the law F.S. 626.112(8)? A)you can pay Richie a referral fee conditioned upon the sale to the referred client B)you can pay Richie a "nominal" referral fee not conditioned upon any sale to the referred client C)out of state referrals are not lawful; you must reject the referral to comply with the law D)you can pay Richie a referral fee conditioned upon a sale BUT only if Richie has a non-resident's license

B

The HO-6 Condo policy is required to have a minimum of $2,000 for the Coverage of Loss Assessment; and the coverage is statutorily ______ over any other insurance. A)"primary" B)"excess" C)"pro-rata" D)"equal shares"

B

The surplus lines markets expose the insuring public to all but which of the following? A)inadequate - non-standard coverage B)inadequate surplus and capitalization - surplus lines company expose the insured to insolvency C)disruption in markets - default of niche surplus lines insurer may have a destabilizing effect D)competition- surplus lines increase competition and encourage more competitive pricing in admitted markets

B

Which of the following would not be covered by the CGL's Personal and Advertising Injury coverage? A)false arrest B)wrong price descriptions C)libel or slander D)misappropriation of advertising ideas

B

You have just written a personal auto policy for a new insured. The county where the insured resides in requires a pre-insurance inspection. Who can perform this inspection?(choose all that apply) A)the named insured can perform a self-inspection B)you, the insurance agent can perform the inspection C)the insurer's authorized representative D)any third party that is not a member of the insured's immediate family

B, C

The Preferred Risk Flood Policy is available in which Flood Zones? (choose all that apply) A)Flood Zone A B)Flood Zone B C)Flood Zone C D)Flood Zone X

B, C, D

Billy Sanders was driving to Burger King with his childhood friend, Robbie Hamwind. Robbie lives in the Florida Keys and does not own an automobile. An accident occurred en route to Burger King and both Billy and Robbie suffered minor soft tissue injures in the accident.How will Billy's policy respond? A)Billy's PIP will pay for Billy's injuries B)Billy's PIP will respond for Robbie's injuries C)Both A and B are correct D)Neither A or B are correct

C

Burt has PIP coverage and his neighbor Ernie has PIP coverage. Burt and Ernie are involved in a car accident; Burt was driving and was "at fault" in an accident. Ernie's medical cost were $5,000 and were paid under his PIP and Medical Payments coverage;Ernie was not permanently injured. A)Ernie can make a claim against Burt's PIP coverage B)Ernie can sue Burt in court to recover the $5,000 C)Burt is exempt from any claim or suit

C

Hospitalization Expense Insurance pays for all BUT which of the following? A)Room and Board in a hospital B)Nursing care expenses C)Prescription Drugs D)Operating room expenses

C

Off A Duck's Back's website has been hacked and the company's entire order processing has been shut down. The company has received a demand from a third party for $250,000 to "release" the site back to Duck's Back. Which insurance policy would cover such a risk? A)World Wide Web Coverage B)Kidnap & Ransom Coverage C)Cyber Liability Insurance D)Data & Financial Security Protection Coverage

C

Subrogation upholds the principle of ________________. A)responsibility B)recovery C)indemnity D)transfer-ability

C

Surety bonds are premised upon the fidelity of the principal along all but which of the following? A)character of the principal B)the principal's financial resources C)the principal's underlying insurance a.k.a. "other insurance" D)the experience or capabilities of the principal to perform

C

Surplus lines policies are "exportable" if they meet all BUT which of the following features? A)surplus lines coverage cannot be greater that admitted policy offerings B)surplus lines coverage cannot have more favorable deductible options C)surplus lines coverage cannot be available in the admitted markets D)surplus lines coverage premiums must be less than the majority of admitted products

C

The 1996 Health Insurance Portability and Accountability Act (HIPAA) requires, Long Term Care policies to be ________________. A)optionally renewable B)conditionally renewable C)guaranteed renewable D)noncancelable

C

The National Weather Service (NWS) categorizes storms as a hurricane which includes the time of a warning/watch all the way through to ___ hours after the NWS terminates the warning. A)24 B)48 C)72 D)96

C

The number one source of underwriting information is: A)third party reports B)inspections and reconstruction estimates C)the application of insurance D)the internet

C

These policy sections qualify and place limitations on the insurer's responsibility to perform and/or pay. A)Insuring Agreement B)Definitions C)Conditions D)Perils Insured Against

C

What is the key distinction between an insurer and a reinsurer? A)insurance companies protect against fortuitous events and reinsurers do not B)insurance companies are domestic and reinsurers are alien C)insurers primarily engage in the direct protection of individuals and businessand reinsurers insure insurers D)insurers are organized as mutuals and reinsurers are organized as stock companies

C

Which professional liability insurance or E&O policy covers doctors and dentist for legal liability resulting from a medical incident? A)Doctor-Dentist Errors and Omissions (DDEO) B)Medical Malfeasance E&O (MMEO) C)Physicians, Surgeons, and Dentists (PS&D) D)Physicians Commercial General Liability (DR-CGL)

C

The EPL policy provides employers with claims-made coverage for liability arising out of claims for injury to an employee because of which of the following? (choose all that apply) A)intentional or intended injury to an employee B)retaliatory actions against a whistle-blower C)refusal to employ based upon race, color, or national origin D)work-related sexual harassment

C, D

Accidents in the Boiler and Machinery policy include all BUT which of the following? A)overheating and burning B)rupture and collapse C)cracking and bulging D)wear and tear

D

In the Personal Auto Policy (PAP), Bodily Injury Liability coverage pays for: A)Injuries to third parties negligently caused by "an insured' B)A legal defense for the insured C)Supplemental payments such as bail bonds D)All of the above

D

What must be added to the DP-1 policy form before the Vandalism peril can be added to the policy.

Extended Coverages (EC)

__________ damages award money for the intangible losses such as pain and suffering, and mental anguish.

General

The Sleepless in Seattle pillow company has suffered a fire loss in their factory. The insured has $100,000 of Extra Expense coverage with a 50%-75%-100 Limits on Loss payment condition. If it takes 120 days for Sleepless to repair the factory; how much of Sleepless in Seattle's $60,000 of incurred Extra Expenses will the policy pay?

In this example, the policy will pay up to 50% of the loss if the period of restoration is 30 days or less;up to 75% of the loss if the period of restoration is 60 days or less; and 100% of the loss for periods of restoration that exceed 60 days. The period of restoration for Sleepless in Seattle was 120 days and the entire amount of the loss would be paid.

Jack was injured in an automobile accident and has a PIP Claim with $8,000 in injuries and a $500 PIP deductible.How much will Jack receive as a claim payment from his insurance company? A)$6,000 B)$7,500 C)$8,000 D)$8,500

Jack will receive $6,000 ($8,000 - $500) X 80%

Carol Keene, your PAP insured, was injured in his best friend's car when he tripped over his shoelace while exiting the friend's car at an airport terminal. How will Carol's Medical Payments coverage provide for this loss?

Medical Payments coverage is Primary in the insured's vehicle and Excess in other vehicles.Medical Payments coverage pays for first party losses and is irrespective of any legal liability.

Nancy Drew has purchased a homeowners insurance policy with $200,000 of dwelling coverage on Ellery Queen's house. Nancy does not have any ownership in the house and is speculating on the house catching fire as Ellery stores old tires, flammable materials, and his winter fire wood by his propane tank. Ellery's house burns to the ground; how much will Nancy collect?

Nancy will not collect a dime as she did not have any insurable interest in Ellery Queen's home.Insurable interest must exist before an insurance company will pay for a loss.

The CGL will pay for the insured's legal liability for bodily injury or property damage that is caused by an occurrence. How does the CGL define an occurrence?

Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. An accident is a sudden, unexpected event.

Struthers, your insured, has purchased a brand new vehicle which will be a replacement vehicle for her old broken down pickup truck. The finance company is requiring Comprehensive and Collision coverage to be placed on the vehicle. How many days does Lucille have to add the vehicle to her policy?

Replacement vehicles require notice to the insurance company within 14 days.

__________ damages are the tangible and calculable losses such as: medical bills, repair invoices, and lost wages.

Special

The Basic Form Causes of Loss include which of the following specified perils?

The Basic Form causes of loss include the following specified perils: fire and removal,lightning, explosion, windstorm or hail, smoke, aircraft and vehicles,riot or civil commotion, vandalism, sprinkler leakage, and volcanic action.

The Farm Coverage Form covers direct physical loss to which of the following?

The Farm Coverage Form covers direct physical loss to Coverage A - Dwellings, Coverage B - Other Private Structures,Coverage C - Household Personal Property, Coverage E - Scheduled Farm Personal Property,Coverage F - Unscheduled Farm Personal Property, and Coverage G - Other Farm Structures.

Tood Hoover, a sole proprietor brick layer, has a Business Auto policy and has three vehicles on the policy: (1) truck used in business, (2) sedan used by Mrs. Hoover, and (3) a coupe used by their 16 year old daughter. Which endorsement should be added to the Hoover BAP to broaden the coverages on the private passenger vehicles to broaden coverage for those vehicles similar to that of PAP coverages?

The Individual Named Insured endorsement is used when the BAP named insured is an individual and the policy includes one or more covered autos that are eligible for the PAP, this endorsement broadens coverage on such autos to be similar to that in a PAP.

Jason was injured in a work related accident and can no longer contribute to his family and household for any of his prior activities of cutting the grass, general house maintenance, and household chores. Additionally, he is not able to fully participate in family activities or relations with his wife. Jason's spouse has sued Jason's employer for loss of consortium. How will the Worker's Compensation policy apply?

any possible remedy for Jason's wife would come under Part Two - Employers Liability

The CGL ______________ coverage for personal property in the insured's care, custody or control.

excludes