Insurance License Exam
An insured has an auto liability policy with limits of 25/50/15. The insured is involved in an accident caused by her negligence and is held legally liable for bodily injuries of three persons in the other auto as follows. A $15,000, B $30,000, and C $35,000. How much will her insure pay in total for all injuries?
$50,000
How many hours of continuing education are general lines agents required to complete every year on the subject of hurricane mitigation options?
1 hour
Under special circumstances continuing education requirements may be extended beyond the two-year period for a maximum period of?
12 months
In dwelling policies within how many years of a lost man insured bring a lawsuit against the insure?
2 years
For cancellation of a commercial property policy during the first 90 days, for a reason other than nonpayment of premium, the insurer must give the insured advance written notice of at least how many days?
20 days
In the event of theft a covered vehicle transportation expenses coverages in a personal auto policy will cover the expenses starting how many hours after theft?
48 hours
An automobile that is owned by multiple individuals who are not spouses or otherwise in the same household may be insured under a personal auto policy if?
A joint ownership coverage endorsement is added
With respect to auto insurance, the term owned autos includes all of the following EXCEPT?
A pick up or van title two and use in the named insurance business
What is material misrepresentation?
A statement by the applicant that upon discovery would affect the underwriting decision of the insurance company
With respect to the personal auto policy, which of the following vehicles could be classified as a non-owned auto?
A vehicle that is titled to another person, but is being used with permission by an insured
What type of liability would a person who owns wild animals have?
Absolute
Which part of an insurance policy covers claims related expenses reasonable expenses incurred by an insured to protect the damaged property from further losses or defense expenses?
Additional coverage
DP3 is an open payroll form. What does that mean?
All perils are insured unless specifically excluded
First aid costs for others injured on the insurance premises?
Are paid in addition to the liability limit
Insurable interest in a property policy must be proven
At the time of loss
In return for premium and insurance company must?
Be fair and underwriting and pay covered losses
A policy that ensures all property at multiple locations for a single amount is referred to as?
Blanket
The crime of forced entry into the premises of another by a person with felonious intent is defined as?
Burglary
Home owners policies provide coverage for?
Business property while on the residence premises
What is a statutory defense?
Comparative negligence
An applicant for an insurance agents license must?
Complete a prelicensing education course
Because an insurance policy is a legal contract, it must confirm to the state laws governing contracts which require all of the following elements except?
Conditions
And insured neglect to pay a legitimate claim that is covered under the terms of the policy. which of the following insurance principles has ensure violated?
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium it is known as which of the following?
Consideration
What are major coverages included in a homeowners policy?
Coverage A-dwelling, coverage B-other structures, coverage C- personal property, coverage D -loss of use
Which of the 3 DP forms provides the most limited coverage?
DP - 1 Basic
Which dwelling form is called the broad form?
DP-2
Which is a mandatory part of an insurance policy that varies for each individual policy?
Declarations
In what area is coverage available through the citizens property insurance corporation?
Defined areas
In Florida the financial responsibility law is administered by?
Department of Highway safety and motor vehicles
Which of the following authorities grants and revokes licenses?
Department of financial services
What term includes damage where the insured peril was approximate cause of loss?
Direct loss
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
Which of the following would modify the original insurance contract by either adding or removing coverage?
Endorsements
The section of an insurance policy that details up what perils are not insured against and what persons are not insured is known as a
Exclusions
All of the following are exclusions that apply and all three types of dwelling policies EXCEPT for what?
Fire or lightning
Where can national flood insurance be issued?
Flood prone areas
The homeowners policy covers Collabs caused by all the following EXCEPT
Foundation cracks
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
What HO form covers a historic home with replacement cost more than the market value?
HO-8 modified home owners
The policy conditions define what?
How parties to the contract must act following a loss
Under what conditions can brought that coverage be added to a dwelling policy?
If the insured is the owner occupant of the dwelling
The proof of loss statement must be?
In writing
The pro rata liability clause is designed to protect the principle of?
Indemnity
All of the following are factors in the determination of actual cash value EXCEPT
Insurance premium paid
Persons covered under an insurance policy whether named or not are known as the?
Insureds
The part of the insurance contract that describes a covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called what?
Insuring agreement
What is NOT commonly found in the insurance policy?
Insuring agreement
Which of the following would NOT be covered by HO liability insurance?
Intentional tort
A basic dwelling policy automatically provides coverage against fire, lightning, and?
Internal explosion
All of the following are true regarding deposit premium EXCEPT?
It is 50% of the actual premium
Which of the following is a type of property NOT covered by the homeowners policy?
Land on which the property is located
Extended non-owned coverage endorsements in a PAP broadens which of the following coverages?
Liability and medical payments
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Liability coverage
Under the dwelling policy coverage C -personal property is?
Limited to covering a servants property while at the insured location
Which of the following is the basis for a claim against an insurance policy?
Loss
According to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss?
Mortgagee
Which of the following does the term proximate cause refer to?
Negligence that leads to an injury
What insurance policy provisions define how the policy will respond if there is more than one insurance policy written on the same risks?
Other insurance
The insurance car was hit and damaged by a deer. Under which of the following coverages and a personal auto policy would this loss be paid?
Other-than-collision
Which of the following personal auto coverages would apply for damage caused by a bird hitting the windshield?
Other-than-collision coverage
Under a dwelling policy, which of the following clauses applies if an insured has lost one of two matching silver candlesticks?
Pair or set
The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insured bears to all the insurance covering the property is called?
Pro rata liability
Limited fungi wet or dry rot or bacteria endorsement in HO policies applies to what?
Property and liability losses
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution
The federal fair credit reporting act
Regulates consumer reports
What type of information would be found in a policies in sharing agreement?
Renewal dates
What type of information would be found in a policies insuring agreement
Renewal dates
A certificate of insurance is a written document that?
Shows the type and amount of insurance issued to the insured
Payment for medical expenses lost wages funeral expenses or the cost to repair or replace damage property are known as what type of compensatory damages?
Special
And agents appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request
What act created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry?
TRIA
What is the deductible of a personal liability umbrella policy called?
The SIR
What does form H0-5 cover?
The dwelling and other structures as well as contents and personal property
Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?
The insured damages a rented garage when he fell to stop
Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?
The insured damages a run to the garage when he failed to stop
Which of the following entities is responsible for agent licensing and administrative supervision?
The office of insurance regulation
When a direct chain of events resulting from a negligent act causes injury or damage that acts is considered to be what?
The proximate cause
On a DP3 dwelling property special form policy, the coverage provided for a personal property is?
The same as provided on the DP2 broad form
What is the purpose of the miscellaneous type vehicle endorsement and personal auto policies?
To expand the definition of a covered auto to include various motorized vehicles
Which of the following best expresses the purpose of a stated value contract?
To pre-establish the amount of coverage available for property items that are difficult to value
Which type of misrepresentation persuades an insured, to their detriment to cancel, lapse, or switch policies from one to another?
Twisting
Which of the following best describes the amount of loss assessment coverage included under a home owners policy liability coverage section?
Up to $1000 per occurrence
Informing an insurance contract when does acceptance usually occur?
When and ensures underwriter approves coverages
What type of property can be covered under the inland marine insurance?
any type of property that is portable on land as well as means of transportation and communication
An insured's home is mortgage by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril which of the following is true?
losses will be paid to the mortgagee and the mortgagor as their interest appears
What type of coverage is coverage E in home owners policies?
personal liability
What are two types of compensatory damages
special and general
Which of the following coverages and dwelling and homeowners policies is for indirect losses?
Loss of use
In the event of the left of a covered vehicle transportation expenses coverages and a personal auto policy will cover the expenses starting how many hours after theft?
48 hours
Insurable interest in a property policy must be proven?
At the time of loss
In a dwelling policy, which of the following provides coverage for additional living expenses incurred by a owner occupant in the event of a covered peril makes the premises in uninhabitable due to a covered loss?
Coverage E
And insured's house is damaged by fire and is uninhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expenses of renting the apartment. Which type of broad or special form coverage does the insured have?
Coverage E- additional living expense
What is the basic limit for a cost incurred at the place a vehicle is disabled provided by the towing and labor costs endorsements?
$25
What is the basic limit for cost and cured at the place a vehicle is disabled provided by the towing and labor costs endorsement?
$25
What is the maximum service charge a general liens agent may charge per year for financial insurance premiums on policies issued by the agent?
$36
All of the following are special personal property limits under a homeowners policy except
$500 for business personal property on the insured premises
If an insured is in the process of moving to a new location is personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for?
30 days
The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
The provision which states that both the printed contract and a copy of the application for the contract between the policy owner and the insure is called?
Entire contract
The process of determining the premium charge and how much insurance is required for a particular loss is called?
Loss valuation
Under the dwelling policy form, what is the maximum time limit during which multiple volcanic activities would be considered part of one occurrence?
72 hours
What is NOT considered part of the policy structure?
Provisions
What are extended covered perils on a basic dwelling policy?
Windstorm, hail, explosion, volcanic eruption, aircraft/vehicle, riot or vandalism
