GUARANTOR EXAMFX MISSED QUESTIONS PART 1

In order to start coverage before a policy is issued, insurers can issue a(n)

Binder

Upon payment for a loss, the insured is obligated to surrender to the insurer the right to sue a negligent third party. This is called

Subrogation

An insured and his spouse were traveling down an icy road and hit a sign, accumulating $1.350 damage to their car. They have a $250 deductible. They already collected on a $1,500 claim earlier this year. How much will they collect on this claim?

$1,100

An insured has an automobile policy with limits of 100/300/50 and a deductible of $1000. He is involved in an auto accident and crashes into another driver's auto. The other driver is awarded $125,000 for his injuries and $25,000 for the damaged to his car. The insured's vehicle has damage in the amount of $1,200. The total payment made under the insured's policy is

$125,200

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of Coverage C anywhere in the world

Instead of charging service charges for premium financing, an insurance agent may charge, on any unpaid balance, an annual rate of up to

18%

How long does the law require agents to maintain records of transactions pertaining to premium payments?

3 years

An insurer is going to cancel an insured's policy that has been in effect for 6 months for an allowable reason, other than nonpayment of premium. How many days in advance must the insurer notify the insured of cancellation?

45 days

In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT

A van used in the delivery business

What sublime in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident?

Aggregate

Which of the following is indicated on a certificate of insurance?

Amounts and types of insurance

An insured owns an automobile liability policy with bodily injury limits of $200,000 and an umbrella liability policy with a limit of $1,000,000 The insured is involved in an automobile accident and is found liable for injuries totaling $900,000. Which of the the following examples best describes how the benefits will be paid?

Auto liability policy= $200,000; umbrella liability policy= $700,000

In a DP-1, if the insured elects to apply for Coverage B to a detached garage, Coverage A will

Be reduced by 10%

An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?

Conditions

Which of the following conditions allows insurer to examine the insured's records at the end of a policy to make sure an adequate fee is being collected for the exposure?

Deposit Premium Audit

To determine the actual cash value of an insured property, what must be deducted from the current replacement cost?

Depreciated Value

If a fire erupts in the kitchen and spreads to the upstairs bedroom, resulting in the destruction of furniture, what type of loss has occured?

Direct

The purpose of purchasing an umbrella liability policy is to provide

Excess insurance over the primary liability policy

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all the of the following requirements EXCEPT

Is entirely over water

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation

An insurance policy form that lists specific covered perils provides

Named peril coverage

Which of the following terms means termination policy at its expiration date by not offering a policy continuation or replacement?

Nonrenewal

The extended nonowned coverage provides protection to

Only the person(s) named on the policy

All of the following statements about mutual insurance companies are correct EXCEPT

Policy dividends issued by mutual companies are guaranteed not taxable

In Florida, when mediation is requested as part of the claim settlement dispute resolution procedure, mediators are

Randomly selected by the Department of Insurance

An insured was having a new home built. While digging the footings for the foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbor's home several blocks away. Who pays for this damage?

The contractor

When must an insurer provide forms of proof of loss to an insured?

Upon receiving a written request from a person who wants to submit a claim

What perils does the Citizens Property Insurance Corporation provide coverage for?

Windstorm and hail only