2044 test questions
After a storm, ABC Bakery suffers the following losses: $500 in damage to a free-standing sign, $500 in damage to an attached sign, $500 in damage to a fence, and $1,500 in damage to a decorative Japanese maple tree. How much will ABC Bakery's BOP pay for these losses if the insured had purchased an Outdoor Property extension?
$2,000
What is the maximum a BAP will pay per day for loss of use of a hired auto?
$20
Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay If a detached garage burns down?
$26,250
L owns a home covered under an HO-3 for $200,000. Under Coverage D, how much coverage does L have for lost income if his basement apartment becomes uninhabitable due to a fire loss?
$60,000
Under the PAP, after a collision the insured is entitled to Transportation expenses up to:
$600
Under the Earthquake Endorsement to the BOP, if an earthquake begins before the policy expiration, coverage continues for up to how many hours?
168
How many credit hours of continuing education must a new agent complete every 2 years?
24 (including a 5-hour law and ethics course)
A new agent must complete ______ hours of continuing education every ______ year(s).
24 hours/2 years
Under the BOP, if coverage for business property equals 100% of the average monthly values for the preceding 12 months, an automatic increase of what amount is provided to offset seasonal variations in stock values?
25%
A hurricane warning is issued _______ hours before the anticipated onset of tropical storm force winds of 74 mph or higher, and will stay in effect when dangerously high water or a combination of dangerously high water and waves continue.
36
Residential dwellings with no more than _____ residential units and _____ roomers or boarders per family are eligible under a Homeowners Policy.
4 residential units and 2 roomers or boarders
An applicant must complete ______ hours of prelicensing life and health insurance education in order to be licensed.
40
A proof of loss must be provided to the insurer within _____ days of a homeowner loss.
90
Which of the following statements is false with regard to payment of claims?
A dual endorsement from any mortgage holder or lienholder is required for amounts payable under the policy for personal property and contents
Which of the following statements is incorrect with respect to cancellation and nonrenewal of a personal auto policy?
A policy may be cancelled for nonpayment of premium within the first 60 days
Which of the following residents in the insured's dwelling is eligible to receive medical payments under Section II of a Homeowners Policy?
A residence employee
Which statement is true of Section I of a Homeowners Policy?
A special limit of $1,500 limit applies to watercraft
Under the BOP. which of the following is debris removal coverage?
Additional Coverages
Which of the following is covered under Coverage E of the Dwelling Policy?
Additional living expenses incurred after a covered direct loss.
The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by:
Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle
Which of the following is true about an insurance agency?
An agency must have a licensed and appointed full-time agent in charge
Which of the following scenarios would be covered by E&O insurance?
An agent neglects to renew a customer's policy after they paid the premium
Which of the following conditions would not be found in Section IV of the CGL?
An insured's insolvency relieves the insurer of any obligations under the policy
Which of the following statements is false regarding Certificates of Authority?
Any person who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in this state without a Certificate of Authority commits a misdemeanor
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is correct?
Business auto coverage for a vehicle the insured rents is added to the coverage
Which of the following is not covered under the Limited Pollution Liability coverage and Pollution Extension endorsement?
Clean up costs
Which of the following is not a duty of the Florida Surplus Lines Service Office?
Collect a service fee of up to 3.0% of the total gross premium of each surplus lines policy for the cost of operation of the service office
Which of the following is not covered under Comprehensive Coverage under the Business Auto Coverage Form?
Collision
The Collision or Running Down Clause in Ocean Marine Insurance covers:
Collision damage to another vessel when the shipper is liable
Which of the following describes the policy liability limits that may be applied to either bodily injury or property damage, in any combination?
Combined Single Limits
Which of the following defenses against negligence prevents recovery for injuries caused by a negligent party if the claimant was also negligent?
Contributory Negligence
Under all the Dwelling Forms, the dwelling described in the declarations is covered under:
Coverage A
Damaged household and personal property in transit between the insured's old and new residences is covered by the Dwelling Policy under:
Coverage C
All of the following statements is correct about a Homeowners Policy, except:
Coverage D of a Homeowners Policy includes loss of income from an incidental business
Which of the following is not true about medical payments under the Personal Auto Policy?
Coverage applies only for medical expenses incurred within one year of the accident
Which of the following statements about the National Flood Insurance Program is false?
Coverage becomes effective after a 24-hour waiting period
Choose the correct statement regarding Extra Expense Coverage under a BOP.
Coverage is for 12 months after the direct loss
The Named Non-owner endorsement:
Covers only the person named on the endorsement
Of the Dwelling Policy forms, which one would cover an owned mobile home permanently affixed to a foundation?
DP-1
Under which form is the Coverage B limit included in the overall policy limit represented by Coverage A?
DP-1
Property damage covered by a liability policy includes which of the following?
Damage to tangible property, including loss of use of that property caused by the insured's negligence
Collision Coverage under Part D of the Personal Auto Policy would cover which of the following?
Damage to the insured auto's bumper sustained when the auto crashed into a tree
Which Federal entity administers the Terrorism Risk Insurance Program Reauthorization Act?
Department of the Treasury-
Which of the following are eligible to be insured under a Dwelling Policy?
Dwellings used for incidental business
Which of the following would not be covered under the Building and Personal Property Coverage Form?
Electronic data
If cancelation or nonrenewal of a homeowners policy is to be effective during the duration of a hurricane, the effective date of cancellation or nonrenewal is:
Extended until the end of the duration of the hurricane
Which of the following is correct regarding coverage under the Farm Property Coverage Form?
For coverage to apply, there must be a limit shown in the Declarations
With respect to marine policies, the term uncontrolled means:
Forms that are not standardized by any rating bureau
Which of the following is false regarding hurricane losses?
If there are hurricane losses in a calendar year on more than one policy issued by the same insurer, the hurricane deductible will be the lowest amount stated in any one of the policies
Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy?
If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits
Which of the following coverages is not provided by the Personal Liability endorsement?
Injury caused to a regular resident of the dwelling
Which of the following statements is false regarding prohibited exclusions under auto insurance?
Interfamily exclusions are prohibited with regard to a person that dies as a result of an accident regardless of whether the insured is at fault
Which description of the Personal Articles Floater is incorrect?
It covers claims on a replacement cost basis
Which of the following statements is correct regarding the Commercial Articles Coverage floater?
It covers property used for business purposes
Which statement is false regarding the National Flood Insurance Program (NFIP)?
It provides coverage for direct and indirect loss to covered property as the result of flooding
Which of the following is not true about the FAIR plan?
It provides property coverage to both residential and farm dwellings
All of the following are true of the Equipment Breakdown Protection Coverage Form, except:
Malfunction is included in the definition of breakdown
The Commercial Property Basic Causes of Loss Form insures against all of the following perils, except:
Mechanical breakdown
Construction material having a fire-resistance rating between one and two hours for walls, floors and roofs, is classified as:
Modified fire-resistive
Which type of construction material has a fire-resistance rating between one and two hours for walls, floors and roofs?
Modified fire-resistive
The Personal Inland Marine Insurance covers which of the following?
Moveable property against direct loss
The part of the Workers' Compensation Policy that defines how coverage applies in other states is:
Part Three
Which of the following is not an additional coverage under the Building and Personal Property coverage form?
Peak season
The insuring agreement of a policy describes:
Perils that are covered
The Workers' Compensation Insurance Schedule of Benefits applies to:
Permanent Partial disabilities
Choose the property that is not settled on a replacement cost basis under the Building and Personal Property Coverage Form.
Personal property of others
Which of the following is NOT a type of coverage provided under a farm liability policy?
Professional liability
The Division of Financial Services also has the power to do the following, except:
Regulate the state Medicaid program
Which of the following is correct with regard to surplus lines?
Residential and multi-peril residential policies are subject to the diligent effort requirements
The Personal Articles Floater is similar to which Homeowners endorsement?
Scheduled Personal Property
A manufacturer is held liable if a product caused an injury whether the product was or was not defective. This describes what type of liability?
Strict
When a claimant can prove that a product caused an injury, the fact that the manufacturer will be held liable regardless of whether the product was defective or not, is considered which of the following?
Strict Liability
Which Business Auto Symbol is the most broad of all Symbols?
Symbol 1
A disability that prevents an employee from doing any work, and from which the employee is expected to recover is known as a:
Temporary total disability
Choose the false statement about the Building and Personal Property Coverage Form.
Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage
Which statement is false regarding inland marine policies?
The Bailees' Customers Form covers the insured's property when he/she has property of others in his/her care, custody and control
Which of the following is NOT correct with regard to the Chief Financial Officer?
The Chief Financial Officer is appointed by the Governor
With regard to agent and adjuster licensing and investigations:
The Department of Financial Services may interrogate an applicant or agent on any matter is deemed necessary for the protection of the public
Which of the following statements is false regarding the Florida Automobile Joint Underwriting Association (FAJUA)?
The FAJUA provides automobile liability insurance when an insurer becomes insolvent
All of the following are true of the HO-2, except:
The HO-2 pays for losses on an open peril basis
All of the following are true of a Homeowners Policy, except:
The HO-2 provides open perils coverage on the dwelling
Which of the following conditions would not be found in a CGL policy written on the occurrence form?
The Insured's Right to Claim Information
Which Cause of Loss form for the Commercial Property Coverage Part will cover loss of sales merchandise due to a burglary?
The Special Form
Which of the following is false about the Businessowners Policy?
The Supplementary Payments limit is a maximum of $2,500 for all expenses incurred by the insurer
Which of the following statements is false with respect to the Citizens Property Insurance Corporation (Citizens)?
The association must reject a commercial lines residential risk with limits above $10 million or a personal lines residential risk with limits above $1 million
Which of the following is true regarding Completed Operations coverage?
The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but not for the cost of replacing the work that caused the loss
A manager started receiving anonymous messages threatening damage to the company's facilities unless it changed its hiring practices. The manager chose not to report the threats to the insurer to minimize publicity and dealt the problem privately until the threats escalated to an incident of vandalism that caused significant damage to the company premises. How would the insurer respond to this loss?
The damage would be excluded because the insured did not report the extortionist's demands
The following are all found on the Declarations Page, except:
The exclusions
Which of the following would not be found in the Common Policy Declarations page of a Commercial Package Policy?
The first named insured
Which of the following statements is true regarding loss settlements?
The insurer must pay according to the terms of the agreement within 20 days after the settlement is reached
Which of the following statements is correct concerning the required time periods under loss payments?
The insurer must pay or deny the entire portion of the claim within 90 days after receipt of notice of a property insurance claim
Which of the following is not included in the Declarations of a Property Policy?
The perils that are not insured against
Choose the false statement about Medical Payments coverage under the Personal Auto Policy.
The policy limit is applied on a per occurrence basis, not per person
All of the following are true of the extended reporting period, except:
The supplemental extended reporting period must be purchased at the beginning of the policy period
Homeowners policies cover:
Theft of furs and jewelry up to $1,500
Which section of the BAP provides coverage for autos in the care, custody and control of the insured?
This coverage is not provided under the Business Auto Coverage Form
Which of the following is NOT a purpose of licensing?
To authorize the agent to insure risks
The spouse of which named insured is not eligible as an insured under the BOP?
Trustee
All of the following are true of a Homeowners Policy, Coverage F, except:
Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year
In the event of the total loss of a building, the insurer's liability under the policy if caused by a covered peril will be the amount of money for which the property was insured. This describes which of the following?
Valued Policy Law
Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?
Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?
