Florida Insurance 20-44 Exam Study

severability

"________________ of Interest" means insurance applies separately to each insured.

sliding

An agent has charged an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. This is known as....?

churning

An agent has sold an insured a replacement policy with the sole purpose of earning an additional commission with little to no benefit for the insured. This is known as.....?

indirect

An example of an ______________ loss is the loss of use of tangible property.

$1,550

An insured has a $250 Collision deductible on her auto policy - the insured hit a large oak tree in a single vehicle accident resulting in $1,800 in damages - how much will the insurance company pay the insured?

hand write

An insured who rejects windstorm coverage must ___________ ___________ a specific statement and sign the statement.

technical

A component of ethics is having the ______________ knowledge to facilitate transactions on behalf of the insuring public.

unpaid

A consequence for acting as an insurer without proper licensure include the liability for any ____________ claims.

physical hazard

A physical characteristic which increase the probability and severity of loss is a....

Law of Large Numbers

A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss.

$200,000

A private passenger automobile policy has a single bodily injury liability limit of $500,000 - the insured is involved in an at-fault accident and four individuals in the other car have injuries of $50,000 each - how much will the policy pay in total?

inducement

Agents are not permitted to pay, allow, give, or offer to pay to an insured directly or indirectly any ___________________ to purchase any policy of insurance.

minimum

In Florida the HO-6 Condo policy is required to have a ___________________ of $2,000 for the Coverage of Loss Assessment.

Coininsurance

In Florida, insured must insure property to 80% of total value or higher or suffer a penalty of loss.

Loans and Leases

Lender Interest Insurance also protects the collateral of creditors who have provided ________ ___ ________ to an insured such as car loans, mortgages, etc.

visible

Catastrophic ground cover collapse is the geological activity resulting in a depression or whole to the ground which is clearly ________________ to the naked eye.

abrupt

Catastrophic ground cover collapse is the geological activity resulting in an __________________ collapse of the ground.

60

No notice of cancellation or non-renewal of a binder is required unless a binder exceeds how many days?

negligence

Ready Ralph Reiger, your insured, has not exercised the degree of care to protect his neighbor from injury on his property; this is commonly referred to as _______________.

Subrogation

Sally's car has been damaged by fault of Paul, her damages total 250,000. Sally files a claim with her own insurance with a split limit of 200/300, while Paul has a single limit of $100,000. Sally gains $200,000 and nothing from Paul, this is called _____________.

conditional

Property and liability insurance policies are said to be ___________ contracts because the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions.

proximate cause

What is the fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.

franchise

Which type of deductible specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full.

safeguard

The Gramm-Leach-Bliley Act requires insurance companies to _____________ customer's personal information.

10,000 : 20,000 : 50,000

Typical Fungi limits are $__________ for each loss and $__________ for the annual policy period. And there is a $____________ limit for Section 2 Coverage E for Liability

promptly

Unfair claim settlement practices include failing to acknowledge and act _______________ upon communications with respect to claims.

facts

Unfair claim settlement practices include misrepresenting pertinent _______________ or relating to claims coverage issues.

restore

TRIA was enacted after the events of 9/11 to _____________ the US economy and society at large.

Pure Risk

only a chance of loss

policy

A _________ is a written contract of or a written agreement for or affecting insurance.

Moral

A ____________ Hazard is a conscious mental attitude which increase the probability or severity of loss.

terminated

A Personal Lines Agent can have their license ________________ if he or she materially misrepresented themselves in their insurance license application.

trustworthiness

A Personal Lines Agent can have their licensed terminated if have demonstrated a lack of ____________________ in the insurance business dealings.

willfully

A Personal Lines Agent can have their licensed terminated if they _______________ deceive an insured or insurance company.

30

A Personal Lines Agent has _______ days to notify the Department of Financial Services of a name or address change?

records

A Personal Lines Agent transacting insurance must maintain _______________ of all transacted policies.

Pro-Rata

A ____-________ are when two insurances happen to cover the same occurrence and ,must split the coverage for the shared Insured.

$40,000

A homeowner with a Homeowners policy with $500,000 of coverage and a 2% windstorm deductible suffers a windstorm loss of $50,000 - how much will the insured collect on their claim?

18

According to F.S. 626.731(1)(a) an applicant must be ___ years old to be eligible for a Personal Lines insurance license.

dollar

Any insurance policy with a percentage hurricane deductible must compute and display on the Declarations Page the hurricane deductible in _______________ terms.

writing

Any person offering the sale of insurance at the time of and in connection with an application or extension of credit must disclose so in ______________.

best-effort

As regards property insurance claims, insurers are permitted on a ____________ __________ basis to match quality, color, or size in the replacement of "adjoining areas".

concealment

Bill Williams, your insured, has failed to reveal some relevant facts when he is applying for insurance. What is this is considered?

oral or written

Binders enable immediate change and can be ___________ __ ___________

Speculative Risk

Chance of loss or gain

60 days

Company does not have to give notice of cancellation or non-renewal unless Binder exceeds __________

appointed

Florida Law requires all license holders to be duly ________________ by an "appropriate entity or person".

deceptive

Florida statutes preclude _______________ acts, competition, and practices.

endorsement ; remove ; tear out ; testing air

Fungi coverage typically covers *Total of losses paid under ______________ Including... *Cost to __________ fungi *Cost to ______ _____ and replace parts of the building to access to Fungi *Cost of ____________ _____ or property to confirm presence of Fungi

annual

Hurricane deductibles apply on an ___________ basis; not a per occurrence basis.

sales tax

If an insured is paid for a total loss on an insured vehicle the claims payment must be for the cost to replace the totaled vehicle plus the applicable ________ ________.

economic interest

Insurable Interest must exist before a policy will pay for a loss and is the __________________ in the preservation of the subject.

Personal contracts

Insurance contracts are ________ _________ that cover losses sustained by the person(s), focus is on the person(s).

insured

Insurance contracts are considered Contracts of Adhesion. Ambiguities in the contract are resolved in favor of the ___________________________.

indemnify

Insurance is a contract whereby one undertakes to _________ another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

Contract of Adhesion

Insured cannot negotiate the terms or language of the contract in a _______ __ ________.

Conditional Contracts

Insured has to satisfy certain conditions in order for the Insurer to preform duties

depreciation

Insurers are required to pay for repair or replacement with no allowance for ______________ or unless specifically excluded or limited in the policy.

excludes

Liability coverage in the Homeowners policy specifically ______________ owned inboard or inboard-outboard watercraft.

sailboats

Liability coverage in the Homeowners policy specifically excludes owned or rented ______________ if they are 26 feet or longer.

unconscious

Morale Hazard is the ________________ mental attitude which increase the probability or severity of loss

condemned

One of the required elements of a Catastrophic Ground Cover Collapse is that the insured building/dwelling be __________ by an authorized governmental agency.

Direct Loss

Physical harm to tangible property is _________ _____.

probability

Physical, Moral, and Morale Hazards increase the ________________and/or severity of loss?

loss

Risk means the chance of financial _____________.

4 years

Statute of limitation is ___________ for Tort

5 years

Statute of limitation is ___________ for a breach of contract

2 years

Statute of limitation is ___________ for a wrongful death claim

3 years

Statute of limitation is ___________ for an Insurance claim against Insurance company

pro-rata

The "Other Policy" provision which apportions responsibility with each company paying in proportion to the limit it bears in relation to all limits.

mold

The "fungi" peril is most commonly referred to as _____________.

dispute

The Fair Credit Reporting Act allows the insured to _______________ incomplete or inaccurate information.

consent

The Fair Credit Reporting Act requires ___________ from an insured before reports can be requested which will be used in the underwriting of an insurance policy.

excess

The Loss Assessment coverage in the HO-6 policy is statutorily __________ over any other applicable/collectible insurance.

72

The National Weather Service (NWS) categorizes storms through its National Hurricane Center as a hurricane which includes the time of a warning/watch all the way through to ____ hours after the NWS terminates the warning.

depreciation

The basic definition of Actual Cash Value is "current cost to replace" less an allowance for _____________________.

liberalization

The ______________ provision broadens an insured's coverage without an increase in premium when the insurer has adopted a generic global policy revision.

amount of loss

The appraisal condition is only used to resolve issues of?

third

The consequences for acting as an insurer without proper licensure include a __________ degree felony.

arbitration

The insured or the insurer may use the _____________ provision to resolve a claim's dispute.

revocation

Transacting insurance business for lines an agent does not hold a valid licensed for may result in either a suspension, termination, or license __________________.

$250,000

What amount will be paid to an insured who has an insurance policy with separate limits of $250,000 per building on two buildings and a $275,000 loss occurs to one of the buildings?

September 11, 2001

What event triggered the Terrorism Risk Insurance Act.

renewal

When can a Hurricane Deductible be changed in an existing policy?

clear

When settling a claim with a third party claimant an Insurer may not recommend to a third party claimant to make a claim under their own policy when liability is ____________.

estimates

When settling a claim, insurers are required to provide copies of _______________ relied upon in payment of the claim.

Terrorism Risk Insurance Act

Which federal Act created a federal "backstop" for insurance claims related to acts of terrorism.

Fair Credit Reporting Act

Which federal Act promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

Gramm-Leach-Bliley Act

Which federal Act requires financial institutions like insurance companies to explain their information-sharing practices to their customers and to safeguard sensitive data.

Indirect

________ Loss is the economic loss which flows as a consequence of Direct loss.

Binders

_________ Precede Policy Issuance; coverage is "put into effect" PRIOR to issuance of policy.

fraud

_____________ is any "false statement" intended to deceive an insurer and induce it to part with something of value or surrender a legal right.

casualty

______________ insurance is insurance which pays on behalf of the insured's legal liability.

ethics

______________ is the study of moral behavior and is the cornerstone of professionalism in the insurance industry.

controlled business

_______________ _________________ transactions are those for which an agent has a business, family, or pecuniary interest in or for which the agent is associate or bears an interest in.

endorsement

_______________ is the modification of original policy, usually adds coverage or conforms to State requirement.

defamation

________________ includes the dissemination of false information calculated to injure a third party.

insurance

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

twisting

________________ is knowingly making any misleading representations as an inducement to a sale to bring an insured from another insurance company to theirs for their own personal gain of commission.

transacting

_________________ insurance includes solicitations, inducements, and negotiations of insurance sales.