FLORIDA

Which of the following statements is most accurate?

Anti-money laundering is a term to describe the legal controls that require regulated entities to prevent or report money laundering activities.

Which of the following is a definition of an annuity contract under the rule?

Any agreement between the insurer and the contract owner whereby the insurer promises to pay out a fixed or variable income stream for a period of time.

Which of the following is within the definition of an insurance company under the AML Rule?

Any person engaged within the United States as a business in the issuing or underwriting of any covered product.

The Commercial Property Conditions

Apply to all coverage forms in a commercial property coverage part, unless a coverage form contains a contrary condition

The CPCU Society provides a wide variety of courses covering the topics of Ethics and business decision making. All of the following appear on CPCU's list of commonly identified possible Ethical Decision Making Issues EXCEPT:

Arriving first on the scene of disaster

A leader location is a location that

Attracts customers to the insured's business

The Silver Rule only asks the individual to do one thing. What is that?

Do no harm

Rent paid to use a temporary warehouse after a loss is an example of:

Extra expenses

An insured's office building is damaged by fire, and the insured must rent temporary office space at twice the cost of maintaining its usual office space. This financial consequence of the property loss is called

Extra expenses.

Which one of the following describes grounds for COMPULSORY refusal, suspension, or revocation of a license or appointment?

Failure to pass an examination required by law

Which one of the following lists represents coverages that are only included in either the Causes of Loss—Basic Form or the Causes of Loss—Broad Form?

Falling objects; weight of ice, snow, or sleet; and water damage

The money laundering process has been described as having three phases. Integration means which of the following?

Putting the proceeds back into circulation in the economy, with the appearance of legality.

Which one of the following is not considered rebating?

Readjustment of rates for a group insurance policy based on the loss or expense incurred at the end of the first or any subsequent policy year of insurance

Which of the following is most likely NOT a red flag?

When a person wants to pay with a credit card

Which of the following is within the definition of insurance agent from the AML Rule?

A sales and/or service representative of an insurance company.

What is the effective date of regulations that require insurance companies to have AML programs in place and operational.

2-May-06

Payroll is an example of:

Continuing expenses

BSA stands for which of the following?

The Bank Secrecy Act

The common characteristic of business income and extra expense exposures involving dependent property exposures, interruption of utility services, acts of civil authorities, and adverse weather in the general area of the business premises is

Damage to property away from the organization's own premises

During a recent sale, Nicole was notified that she potentially violated the state regulations regarding fee disclosures. Violations of state insurance regulations and laws are punishable in all of the following ways EXCEPT:

Death penalty

Knowingly making, publishing, disseminating, or circulating any statement that is false or maliciously critical of a person and intended to injure that person describes the offense of

Defamation.

The Moral Rights approach to ethics is based upon which one of the following?

Developing an understanding of and healthy respect for the rights of others as individuals

It is said that the individual has to make a conscious effort to make an ethical decision and then prepare themselves to be able to identify the characters, issues, and alternatives to improve one's ability to make consistent ethical decisions. Given this belief, some philosophers believe that the consequences themselves ______________________.

Dictate which ethical principle to follow

It's not enough that we discern the ethical and effective course; we must follow it. This often takes will-power or moral courage and the willingness to do the right thing even when it is _______________.

Difficult

Insureds who collaborate with their producers to create business income plans find that such collaboration stimulates additional planning in

Disaster planning and long-range financial planning

Marge is comparing the various types of philosophies used to examine one's own ethical value system. Moral Rights is most often associated with which one of the following?

Each individual is endowed with the right to think for him or herself and to make decisions as free thinking human beings

Which one of the following is the minimum age requirement to be licensed as an agent in Florida?

Eighteen

Which one of the following statements accurately describes the use of each Business Income Coverage (BIC) form and the applicable causes of loss forms?

Either BIC form can be included in a commercial property coverage part with or without another commercial property coverage form, and any causes of loss form may be used with the BIC coverage

The Appraisal Loss Condition allows

Either the insured or the insurer to demand an appraisal of a loss if the parties disagree on the amount, but not extent, of coverage.

Some of the exclusions under both the Causes of Loss—Basic Form and Causes of Loss—Broad Form that are not subject to the anti-concurrent causation wording eliminate coverage for loss or damage caused by

Electrical, magnetic, or electromagnetic energy that damages or otherwise interferes with any electrical wires or devices and loss resulting from neglect of the insured to use all reasonable means to save and preserve property at and after the time of loss.

The authority to administer the Bank Secrecy Act has been delegated to the Director FinCEN. What does this stand for?

Financial Crimes Enforcement Network

The key to properly estimating an organization's business income loss exposure is

Financial planning

New York Attorney General Spitzer launched an investigation into non-traditional insurance products. Which one of the following is an example of the policies investigated?

Finite Risk Insurance

The cause of loss to buildings and personal property that poses the greatest risk of a large or even total property loss for insureds and insurers is

Fire

Some coverages that are provided under both the Causes of Loss—Basic Form and Causes of Loss—Broad Form are

Fire, lightning, riot or civil commotion, and sprinkler leakage.

Consistent ethical decision making is critical for operating a successful businesses. Which of the following questions did NOT make the list of questions to ask when making ethical decisions in your professional life?

How can I increase the commission I am making in this transaction?

To account for seasonal fluctuations when planning for business income and extra expense loss exposures, an organization should

Identify any seasonal patterns of earnings fluctuations by analyzing the business's past seasonal figures or a similar business's typical seasonal patterns and plan for an interruption during the peak season

Title III of the PATRIOT Act, also known as the International Money Laundering Abatement and Financial Anti-Terrorism Act was adopted in which year?

2001

The ACA requires insurers to offer coverage for dependent children up to age

26

A normal Florida legislative session is not longer than

60 calendar days.

Which of the following is within the definition of insurance agent from the AML Rule?

A bank or broker-dealer in securities that sells any covered product of an insurance company.

A situation in which relatively little physical damage can cause a long interruption and, therefore, a large business income loss, and that can occur when work from several assembly lines or processes must flow through (or depend on the continued operation at) a single job or position is called

A bottleneck.

Which of the following is NOT an accurate statement?

A compliance officer need not know all the rules of the AML because the rules allow him or her to rely upon an outside trainer to educate staff.

The department may deny applications of prospective navigators, or suspend or revoke a navigator's registration, for any of these reasons, EXCEPT:

A lack of shareholders and applicants.

With respect to licensing, an agent licensed to sell both health insurance and life insurance is deemed to be what type of agent?

A life agent

Covered products include which of the following?

A permanent life insurance policy or annuity contract, other than a group policies or contracts, and any other insurance product with features of cash value or investment.

Sam, a home healthcare provider with Highlife Healthcare, was convicted of elder abuse. All of the following are included in activities that fall under the definition of elder abuse EXCEPT:

A person envies real property of an elder

Following an investigation conducted by the Pennsylvania state police, it was determined that several employees for Malvern Insurance Company were knowingly committing elder abuse. All of the following are included in activities that fall under the definition of elder abuse EXCEPT:

A person takes personal property of an elder with an intent preserve

A disaster plan should be developed to prevent or reduce business income and extra expense losses. For the most effective disaster plan, it should account for losses of net income resulting from

All forms of losses that can and cannot be managed by business income and extra expense, life, and disability insurance

According to the Commercial Lines Manual (CLM), to be eligible for blanket business income insurance,

All premises must be substantially owned, managed, or controlled by the insured.

Which one of the following was NOT identified as a current ethical dilemma in the insurance industry?

Inadequate cell coverage resulting in dropped calls

Lauren is considering several options to solve an ethical dilemma. It is dishonest to do all of the following EXCEPT:

Inadvertently misleading because of incomplete information

With regard to additional time that might be required to repair or reconstruct the building in order to comply with any building code or law, the unendorsed Business Income Coverage (BIC)

Includes neither additional time required nor any time required to assess or respond to the effects of pollutants.

When talking recently with a client, Karen used the phrase "it's not the harness but the horses that pull the wagon"; what does this phrase mean?

Individual actions create the ethical climate in a company.

In the Consent Agreement with Liberty Bank, which of the following information is included?

Liberty Bank is an insured federal chartered non-member bank.

Which of the following would most likely NOT be part of an AML Compliance Committee's responsibilities?

Management of day to day activities of staff.

A reasonable and uncomplicated alternative to business income coverage (BIC) coinsurance that is suited for organizations that are unlikely to sustain a business interruption of more than four months is

Maximum Period of Indemnity

Retailers and wholesalers are examples of:

Mercantile accounts

Kohlberg's theory of moral development has several stages. What best describes Kohlberg's Stage 1, Punishment-Obedience Orientation?

Morality is determined by self-interest regardless of the moral consequences or value

Which one of the following accurately describes damage for which coverage is eliminated by the Water exclusion?

Mudslide or mudflow and backing up of sewers, drains, or sumps

Which one of the following is not found in the Policyholder Bill of Rights?

Policyholders have the right to choose alternative limits and coverages.

As a rule, values have little to do with ethics. Individuals often place high value on all of the following, EXCEPT:

Political party affiliation

In a civilized society, many people form their opinion about what is right and wrong based on each of the following, EXCEPT:

Power

Under the Maximum Period of Indemnity option,

Premium rates are substantially higher, but lower limits of insurance may be chosen to cover the estimated maximum loss of business income and extra expense with a 120-day limit, which creates lower premiums for organizations whose estimated maximum loss is much lower than the amount required by coinsurance.

Which of the following is NOT correct?

State insurance regulators are prohibited from making inquiries about companies' anti-money laundering programs.

Which one of the following best describes fiduciary duty?

The fiduciary duty requires the agent to act with the highest standard of care in the best interests of the company.

Which one of the following describes the effect on the insurer's loss payment for a business income loss if the insured does not resume operations as quickly as possible?

The insurer pays the loss based on the length of time it would have taken the insured to do so.

Helen works in the compliance unit of Highpoint Insurance Company responsible for SOX compliance. Sarbanes-Oxley requires corporations to disclose that ___________________.

Their code of ethics promotes honest and ethical conduct

Individuals are almost always able to distinguish between right and wrong; we can honestly decide what is right from wrong where __________.

There are no competing rights

Licensees must report any change of contact information within how may days of the change?

Thirty

The Extended Business Income (EBI) additional coverage adds

Thirty days for which the insured will be reimbursed for loss of business income, beginning on the date when the property is actually restored and operations are resumed.

The Limited Coverage for Fungus, Wet Rot, Dry Rot and Bacteria additional coverage under the Insurance Services Office, Inc. (ISO) causes of loss forms provides

Thirty nonconsecutive days of coverage, beginning when a covered peril causes fungus, wet rot, dry rot, or bacteria damage that results in a suspension of operations as applied to the period of restoration that is increased by the fungus, wet rot, dry rot, or bacteria damage.

Kohlberg's Level 3 Stage 5 is focused on a Social Contract orientation. What best describes Kohlberg's Stage 5, Social Contract Orientation?

Understanding that social utility and public interest are served by rules rather than the rules being served by the public

What best describes Kohlberg's Stage 6, Universal Ethical Principle Orientation?

Understanding that the motivation for your actions goes beyond what someone else has codified for you to do and makes you responsible for your own decisions

When considering the Payroll Limitation or Exclusion endorsement, which one of the following is a variable that deserves consideration for post-loss handling of payroll?

Union or other contracts might require salary continuation.

In addition to loss of licensure, the penalty for representing an unauthorized insurer may include

Up to five years' imprisonment and a fine up to $5,000.

Which of the following is part of the AML rule?

Policies, procedures, and internal controls based on the company's assessment of money laundering and terrorist financing risks associated with its covered products must be incorporated.

The Causes of Loss—Basic Form and Causes of Loss—Broad Form differ from the Causes of Loss—Special Form in that the Basic and Broad forms provide

"Named perils" coverage, whereas the Special Form provides "open perils" coverage, or coverage for losses not specifically noted as excluded.

How long are agents required to maintain records of policy transactions such as applications and other documents related to policies?

. A minimum of five years following expiration of the policy

James is a broker selling life insurance products to various individuals. Suggesting the same life coverage for each person between 20 and 25 or the same annuity products for each person between 30 and 35 may be an example of which common pattern of reaction?

. Habit

Agents owe a fiduciary duty to

. Insurance companies they represent.

The International Money Laundering Abatement and Financial Anti-Terrorism Act made amendments to which of the following?

. The BSA

Which one of the following entities should an agent contact for assistance with licensing issues?

. The Division of Agent and Agency Service

Home Healthcare Providers have had several members of their traveling staff accused of elder abuse. Elder Abuse is commonly defined as financial abuse of an elder or dependent adult that occurs for the following reason: a person who assists in defrauding an elder or __________________.

A person who takes, secretes, appropriates, or retains real or personal property of an elder to a wrongful use or with the intent to defraud

Which of the following is within the definition of an insurance broker under the AML Rule?

A person who, by acting as the customer's representative, arranges and/or services covered products on behalf of the customer

The filed rate doctrine

A. Describes an exception from antitrust laws for rates that are filed with, and approved by, the department of insurance.

To earn her Chartered Property Casualty Underwriter CPCU designation, Kimberly had to pass an ethics exam. All of the following appear on CPCU's list of commonly identified possible Ethical Decision Making Issues EXCEPT:

Abusive advertising icons

In the article "The Seven Deadly Sins and Seven Virtues in Advertising" Robert Harris points out that traditional values seem to have been transformed into simple indulgences. Which one of the following is NOT one of the Seven Deadly Sins?

Advertising

New York Attorney General Eliot Spitzer's investigation has also broadened into other areas of the insurance industry, including life, health, disability, and employee benefits. Which, among the following was NOT included in the investigation?

Almost everything was included in the Attorney General's investigation

Which one of these expenses is an indirect loss that would continue if a manufacturer suffered damage to its property from a direct loss and required full suspension its business operations for an extended time period?

An advertising contract

Which one of the following is true about indirect loss?

An indirect loss is a consequence of a direct loss

Which of the following is accurate with respect to testing the effectiveness of an anti-money laundering program?

An insurance company must conduct testing of its program.

Which of the following statements is most accurate?

An insurance company should determine if new customers are anti-money laundering risks, in addition to taking a look at current customers.

Which one of the following best defines an unauthorized insurer?

An insurer that has not been approved to sell insurance in Florida

Debra was explaining the concept of common patterns in ethical decision making to a colleague. All of the following are common patterns of reaction, EXCEPT:

Aversion

Which one of these accurately describes theft-related coverage and/or exclusions under the Causes of Loss—Special Form?

Because the Special Form does not contain an absolute exclusion of theft, it covers any theft of covered property that is not specifically excluded. However, several theft-related exclusions and limitations define the scope of the theft coverage

The insured under a Business Income Coverage (BIC) form leases its medical office space on the sixth floor of a ten-story building. A fire in the lobby and first floor stairwell of the building causes damage that forces the insured to suspend its medical practice until access to the upper floors is restored, even though no damage occurred on any of the upper floors. Which one of the these statements accurately explains whether the insured's BIC would cover its income loss?

Because the definition of "premises" is expanded to any area that is used to gain access to the described premises, the BIC will pay the insured's business income loss during its suspension for the building's restoration period or until it relocates to a new permanent location.

As we grow, mature, and experience the world, each of us develops our own ethical value system. In many instances our ethical value system is, to a great degree, developed based upon all of the following, EXCEPT:

Being born in a hospital

Acting on her mentor's suggestion, Nicole routinely cross sells certain forms of insurance to her clients without questioning whether the insurance is actually required by the client. This may be an example of which of the following common patterns of reaction?

Blind faith

Which of the following is one of our common patterns of reaction?

Blind faith

According to Newman, which of the following are the key elements of a compliance program?

Building a secure foundation, picking a compliance committee and officer, avoiding problems by keeping it under control, and training.

In addition to new buildings or structures or alterations or additions to existing buildings or structures at the described premises, the Alterations and New Buildings additional coverage insures loss of business income resulting from damage to

Building materials and supplies, machinery, and equipment located on or within 100 feet of the described premises and used in the construction or incidental to the occupancy of new buildings

What comment followed this remark by Alexander Solzhenitsyn, a famous Russian dissident? "I've lived my life in a society where there was no rule of law and that's a terrible existence."

But a society where the rule of law is the only standard of ethical behavior is equally bad."

Which one of the following was NOT identified as a major ethical dilemma in the 1960s?

Cyber crime

Any risk control measure taken to reduce the frequency or severity of direct losses affecting the organization

Can also reduce the frequency or severity of business income and extra expense losses.

Under some circumstances, an insured's income may change as a result of business from the conditions caused by the covered cause of loss, such as that of a hotel that has a change in room rentals after a hurricane. The current Business Income Coverage (BIC) policy wording makes it clear that the business resulting from a catastrophe

Can increase and will not be included when estimating the likely net income

A business income loss:

Can occur at a location where no physical damage occurred

Which one of the following statements is true when considering continuing and noncontinuing expenses in planning for a business income and extra expense loss?

Careful analysis of continuing and noncontinuing expenses can help develop a more accurate estimate of potential loss severity in a business income and extra expense loss

Listed on the commercial property declarations page with the kinds and amounts of coverage provided are the applicable

Causes of loss (basic, broad, or special).

Which one of the following statements is true regarding additional coverage for collapse?

Collapse, which is only provided in the Causes of Loss—Broad Form, is specifically and narrowly defined to mean an abrupt falling down or caving in of a building or part of a building that, as a result, can no longer be occupied for its intended purpose.

Buildings under construction, condominium association property, and condominium commercial unit owners have special insurance needs for which types of

Commercial property coverage forms are available.

The elimination of a firm's backup facilities caused by outsourcing; the reduction of raw material and component part inventories through "just-in-time" inventory management and production; large networks of suppliers or contractors leading to unavailability of a critical part in the process; decreased loss controls applied to those operations; and loss or damage to a customer, supplier, or other dependent property exposure might result in an income or extra expense loss. These types of dependent property exposures are sometimes referred to as

Contingent business income exposures

The Ordinance or Law—Increased Period of Restoration endorsement modifies the business income and/or extra expense forms to

Cover losses resulting from the enforcement of building laws or ordinances.

Recently, Adam found himself in a potential ethical dilemma. When it comes to ethics, we have the opportunity to _____________.

Create our own perception and process

Malvern Nursing home has been accused of elder abuse by a number of their patients. Elder Abuse is commonly defined as financial abuse of an elder or dependent adult that occurs for the following reasons: a person takes, secretes, appropriates, or retains real or personal property of an elder to a wrongful use or with the intent to defraud or __________________________.

Engages in any of those aforementioned activities

Which one of the following was NOT identified as a current ethical dilemma in the insurance industry?

Entertaining television ads

While the majority of ethical dilemma's remain relatively consistent, there are some ethical dilemmas that arise and develop over time. Which, among the following, was NOT identified as a current major ethical dilemma?

Escalation of drug use

The safest approach to estimating the potential severity of business income losses is to determine the

Estimated maximum loss (EML) with modifications for noncontinuing expenses, but not taxes because business income loss payments will be subject to income tax

Frank is an attorney handling SOX compliance for Malvern Insurance Company. The Sarbanes-Oxley Act addresses which of the following?

Ethical standards

If the failure of a city's fire department to take necessary measures to contain a fire that burned down several vacant buildings and resulted in the insured's warehouse and contents burning to the ground, which one of these explains how the coverages and exclusions under the Causes of Loss—Special Form would apply, noting that a governmental body's failure to act or decide is an excluded cause of loss?

Even though the fire department's failure to act contributed to the destruction of the insured's warehouse and contents, they were destroyed by fire, which is a covered cause of loss. Therefore, coverage would be provided.

In the absence of compelling justification, in the pursuit of ethical decision-making, we _________________________.

Expect respect and must be willing to extend respect for others' goals and activities

The money laundering process has been described as having three phases. Placement means which of the following?

Getting illegal proceeds, including cash, into the financial system through transactions such as bank deposits or the purchase of certain insurance products

Individualism is one of the philosophies that an individual can use to re-examine one's own ethical value system. Individualism is most often associated with which one of the following?

Greatest good for the individual over the long term

Lauren was selling a variable annuity product to a senior. This is an example of which common pattern of reaction?

Impulse

During a recent performance review, Jackie was been told that she was being inconsistent in her application of ethical decision making. Inconsistent approaches to ethical decisions typically reflect _______________________.

Individual values as opposed to universal standards

Which of the following statements is true regarding the regulation of insurance companies by the BSA?

Insurance companies, for the purposes of the requirement that all financial institutions establish anti-money laundering programs, are now defined by the nature of the product that the companies offer.

Consistency between values and ethics is a matter of integrity. This means our values are _________.

Integrated into the universal ethical standard

Which one of these is a required element of a fraudulent insurance act?

Intent

Which of the following amended the BSA to require record keeping and report filing for AML activities?

International Money Laundering Abatement and Financial Anti-Terrorism Act

When faced with an ethical dilemma, Jeff typically follows his gut instincts. Which one of the following terms is used to describe a gut feeling?

Intuition

The extra cost of complying with building and zoning codes that can cause considerable delays in rebuilding or repairing damage to a business premises

Is not considered part of the business income and extra expense loss exposure; but the cost of delays that result from complying with building and zoning codes must be taken into account when estimating maximum business income and extra expense losses.

When the Causes of Loss—Special Form does not contain an exclusion or a limitation equivalent to those contained in the Basic Form and Broad Form,

It automatically provides broader coverage than the other two forms

Under the Monthly Limit of Indemnity option, disadvantages of using the rule-of-thumb method for selecting the fraction and amount of insurance are

It ignores extra expense and extended business income (EBI) exposures and may overstate the amount of insurance needed

Which of the following is the most accurate statement?

It is a red flag if a person identifies a false source of funds.

Which of the following statements is most accurate?

It is important for compliance officers to understand the impacts and consequences of anti-money laundering protections.

The Causes of Loss—Basic Form differs from the Causes of Loss—Broad Form in that

It is slightly less expensive than the Broad Form; however, because it covers three less perils than the Broad Form, it is selected less often by insureds

When everyone determines his or her own standards, there are no standards. What human tendency magnifies this dilemma?

Judging oneself according to one's own GOOD INTENTIONS while judging others by their WORST ACTIONS

While meeting with his team, Robert stressed the importance of ethics when dealing with their clients. Ethics refers to principles that define behavior as all of the following EXCEPT:

Left

A package modification factor is

Multiplied by the combined premium for certain coverage parts to determine the discounted premium.

An agent wishing to submit an address change to the department may do so through which one of the following conduits?

MyProfile

The Business Income Coverage (BIC) form defines business income as the

Net profit or loss that would have been earned or incurred if the suspension had not occurred, plus the normal operating expenses, including payroll, that continue during the suspension

Two additional business income coverages that are payable subject to their own limits are the Interruption of Computer Operations additional coverage and the

Newly Acquired Locations coverage extension

The No Coinsurance option, as specified in the Insurance Services Office, Inc. (ISO) Commercial Lines Manual (CLM), provides that

No coinsurance penalty applies under any circumstances, no business income worksheets must be filed with the insurer, no restrictions are imposed on the period of restoration, and no fractional limit of recovery is imposed in any one month.

Reasoning critically involves much more than just an overt, animal instinct reaction to the external events around us. Reasoning critically requires that we use our mind's ability to process information in a logical, organized way to reach conclusions that will allow us to make thought-based, rather than reaction-based, decisions. This involves which one of the following?

Objectively judging the facts of a particular situation

Which one of the following is not an example of rebating?

Offering a disability insurance policy at a reduced rate for policies paid via a payroll deduction where the reduction represents the insurer's saving realized by the payment method

Many federal agencies are involved when it comes to money laundering. Which of the following federal agencies are involved?

Office of Terrorism and Financial Intelligence, IRS

Under the Alterations and New Buildings additional coverage, if the physical loss or damage delays the start of operations, the period of restoration for business income coverage (BIC) begins

On the date operations would have begun if the direct physical loss or damage had not occurred

What best describes Kohlberg's Stage 4, Law and Order Orientation?

One's obligation to the law overrides obligations of loyalty to sub groups because the law is the law and no one is above the law

Special sessions in Florida may be called Select one:

Only to deal with specific legislation.

Municipalities enact and regularly upgrade the building codes that set the standards for new construction or significant remodeling to promote public welfare and safety. One exclusion described in the Causes of Loss—Basic Form and Causes of Loss—Broad Form that prevents consequential losses that result when municipalities enforce these codes is the

Ordinance or Law exclusion.

There are contractual agreements that provide compensation to intermediaries over and above commission payments. They are known by various names, including each of the following EXCEPT:

Payola

The money laundering process has been described as having three phases. What are the three phases?

Placement, layering, and integration

The purpose of passing elder legislation is to protect seniors from being ______________________.

Pressured into purchasing a life insurance or annuity product without the benefit of time to respond to buyer's regret

Special legislative sessions may be called by which one of the following?

Proclamation of the governor

Carla testified against her company during a potential Sarbanes-Oxley Act investigation. Whistle blowers are protected by Sarbanes-Oxley for which one of following actions?

Providing information or assistance to the investigation of violations

Which of the following is a NOT a red flag for identifying suspicious transactions?

Providing more information than is needed

Reasoning critically involves much more than just an overt, animal instinct reaction to the external events around us. Reasoning critically requires that we use our mind's ability to process information in a logical, organized way to reach conclusions that will allow us to make thought-based, rather than reaction-based, decisions. This involves which one of the following?

Questioning, rather than simply accepting

Property such as buildings, driveways, sidewalks, underground piping, radio transmission towers, built-in appliances, paneling, plumbing, wiring, heating and air-conditioning equipment, elevators, and platforms with hoists and tracks for window washers are types of

Real property.

After attending an ethics workshop, James was explaining Kohlberg's theory of moral reasoning to a colleague. What best describes Kohlberg's Stage 2, Instrumental Relativist Orientation?

Reasoning calls for determining the "right" action according to self interest first

SOX also deals with several other related issues associated with the core law and regulation. Which one of the following statements does NOT describe related party transactions addressed in SOX?

Related party transactions typically occur during the holiday season

Which of the following is most accurate?

Requesting a product that is not suitable for a customer?s needs may be a red flag.

Mike strongly agrees with the Moral Rights philosophy. The Moral Rights philosophy argues each human being is born with all of the following rights, EXCEPT:

Right to Universal Health Care

Ethical dilemmas are situations that set ethical principles, rules or objectives in opposition. Quite often, however, if ______________ is removed from the discussion, the ethical decision is more apparent.

Self interest

The shutdown of a business for restoration of the building, equipment, and stock after a covered loss can lead to loss of customer goodwill and market share, so delays in restoring customers and their loyalty should be considered part of the business income and extra expense loss exposure. Some types of businesses that are more susceptible to this delay are

Self-storage facilities, schools, beauty salons, and office equipment or supply firms

Valerie works to establish a high level of trust with each of her clients. An insurance professional gains trust by doing each of following EXCEPT:

Selling the cheapest product

The money laundering process has been described as having three phases. Layering means which of the following?

Separating illicit proceeds from the criminal source through complex financial transactions is the second phase.

Which one of the following statements would most accurately reflect a corporation's mission in best servicing a customer's interests. "We meet our responsibilities to customers by ___________________".

Serving the customer's best interest

During an ethics workshop, Jamie explained that ethical dilemmas are situations that ____________________.

Set ethical principles, rules or objectives in opposition

Which one of the following statements is true regarding the concurrent causation doctrine and the Insurance Services Office, Inc. (ISO) anti-concurrent causation language in the Causes of Loss—Basic Form and Causes of Loss—Broad Form?

Some of the exclusions in the Basic and Broad forms include anti-concurrent causation language, meaning that if the loss is the result of both a covered peril and at least one excluded peril—that occur at the same time—the policy will not cover the loss, regardless of which peril occurred first; other exclusions are subject to the concurrent causation doctrine, which covers such a loss, regardless of which peril occurred first.

As a licensed insurance broker, Becky works hard to honor her commitments. An insurance professional honors their commitments by doing all of the following EXCEPT:

Telling the client to refer your agency to their friends, family and neighbors

The duties of the insured after a loss under the Business Income Coverage (BIC) forms are the same as those provided under the Building and Personal Property Coverage Form, also known as the BPP, with one exception

The BIC adds a duty for the insured to resume operations, in whole or in part, as quickly as possible

Which of the following is a correct statement?

The BSA and the PATRIOT Act cover financial services entities and require them to have anti-money laundering programs and customer identification programs in place.

Which of the following is NOT a correct statement?

The BSA authorizes the Secretary of State to issue regulations requiring financial institutions to keep records useful to the conduct of counter-intelligence.

Which of the following statements is most accurate?

The BSA requires that names be checked against a federal registry of known or suspected terrorists.

Which one of the following statements regarding commercial causes of loss forms is true?

The Basic, Broad, and Special causes of loss forms allow the underwriter to offer a range of covered perils that best suits the insured's needs.

Which one of the following descriptions accurately explains the location of the Business Income and Extra Expense insuring agreements in both Insurance Services Office, Inc. (ISO) business income coverage (BIC) forms?

The Business Income insuring agreement is found in both BIC forms, whereas the Extra Expense insuring agreement is found only in the Business Income (and Extra Expense) Coverage Form.

"Insurance Insights" is best described as:

The Department's monthly newsletter for insurance professionals.

The Florida Cabinet and the governor make up which one of the following entities?

The Financial Services Commission

Which one of these statements regarding the Causes of Loss—Special Form Glass extension is correct?

The Glass extension covers the cost to clear obstructions (besides window displays) that prevent replacement of the glass.

Which one of the following laws did Congress enact in 1945 to place regulation of insurance under state oversight as a matter of public interest?

The McCarran-Ferguson Act

Which of the following statements is most accurate?

The Secretary of the Treasury is responsible for overseeing the BSA.

Which one of the following is often cited as an advantage of the insurance industry's limited exemption from federal antitrust laws?

The ability to share loss cost data

During an ethic training session, Desmond was describing the characteristics of the ability to reason critically. The ability to reason critically includes all of the following, EXCEPT___________.

The ability to use judgment of facts and reach logical conclusions EXCEPT WHEN those conclusions differ significantly from our own basic beliefs

Which one of these statements is a requirement for coverage to apply under the Business Income (and Extra Expense) Coverage Form Civil Authority additional coverage

The action of civil authority must have been taken either in response to dangerous physical conditions resulting from the damage or continuation of the covered cause of loss that caused the damage, or to allow the civil authority unimpeded access to the damaged property.

Which one of the following describes a risk that an agent may face if he or she sells insurance for an unauthorized insurer?

The agent may be responsible for paying any claims if the insurer fails to pay.

The No Coinsurance option could be useful to an insured for which

The estimated maximum loss (EML) is a small percentage of the amount needed to satisfy even a 50% coinsurance requirement.

Which of the following is most accurate?

The authority of the Secretary to administer the BSA has been delegated to the Director of the Financial Crimes Enforcement Network, known as FinCEN.

Which one of these components of the Insurance Services Office, Inc. (ISO) commercial package policy (CPP) program states what is and is not covered under the policy?

The commercial property coverage part

When a company appoints an agent, which of the following is the company certifying to the department?

The company is willing to be bound by the acts of the agent within the scope of the appointment.

Which of the following is most correct?

The compliance officer should be empowered with full responsibility and authority to enforce appropriate policies and procedures.

Business personal property, which may or may not be fully insured under a commercial package policy (CPP), may include

The contents of a commercial building; the insured's oil that flows through a pipeline to another location; personal property of others that is in the insured's care, custody, or control; and property in the possession of others

Considering social norms, many people form their opinion about what is right and wrong based on all of the following, EXCEPT:

The instruction manual that comes at birth

The severity of a business income loss is directly related to

The length of time required to restore the damaged property

The purpose of the Discretionary Payroll Expense endorsement is

To allow the insured to cover payroll on a discretionary basis for humanitarian reasons or to ensure continued employment of key employees until operations resume.

Which one of these is the reason that a commercial firm acquires property?

To generate or facilitate income

Which one of the following best describes the intent of the Baker Act?

To protect persons of all ages who are suffering from serious mental illnesses

Which one of the following is the primary purpose of informational memoranda?

To provide guidance and information to insurers

What does the term money laundering mean?

Transactions undertaken to hide the true source of the money

The Federal Insurance Office is a division within the

Treasury Department.

There are several traits of ethical behavior. Which one of the following is one of the core traits of ethical behavior?

Trust

Licensees are required to complete a minimum of twenty-four hours of state-approved continuing education courses every

Two years.

Which one of the following accurately describes the burden of proof under the Causes of Loss—Special Form?

Under the Special Form, the burden of proof shifts to the insurer; an accidental loss is presumed to be covered unless the insurer can prove that it was caused by an excluded peril

Reasoning critically involves much more than just an overt, animal instinct reaction to the external events around us. Reasoning critically requires that we use our mind's ability to process information in a logical, organized way to reach conclusions that will allow us to make thought-based, rather than reaction-based, decisions. This involves which one of the following?

Using our judgment to reach logical conclusions, EVEN IF those conclusions differ significantly from our own basic beliefs

If electrical power to the insured's described premises is interrupted because a windstorm damaged a power plant three miles away from the premises, which of the following exclusions described in both the Basic Form and Broad Form eliminates coverage for any loss caused by the resulting power failure?

Utility Services

Kimberly found herself facing a difficult, ethical dilemma. Which of the following is a TRUE statement?

What is considered unethical may have nothing to do with what we define as a legal or illegal

After a recent business transaction, Mark reviewed the list of questions he asked to determine if he covered everything the client requested. Which one of the following did NOT make the list of questions to ask when making ethical decisions in your professional life?

Will this sale qualify me for profit sharing?

Jane Doe has been a victim of identity theft and is reluctant to provide an identity number on the annuity application, is this a red flag?

Yes, certain identification verification information is necessary