220 flashcard

Which of the following is not a qualification for obtaining a general line license?

Six months all liens experience as a full-time employee

All of the following are duties and functions of the department of financial services except

Approve and review forms, rules, rates

Which of the following is the best definition of risk as related to insurance?

Chance of financial loss

All of the following describe a binder except

Cannot be cancelled

Insurance is a contract of indemnity. Which of the following vest illustrates the concept of indemnity?

Paying the actual cash value of a television that is three years old

All of the following describe insurable interest except

Shows a similarity between insurance and wagering

An insured is carrying a policy for “fire only“ on a dwelling and its contents. A small fire starts in the kitchen and in the process of putting out the fire, some of the contents of the dwelling are damaged by the water from the fire hoses. The damage to the contents would be covered by the policy because:

Fire was the proximate cause

All of the following are loss settlement valuations except

Actual cost sustained

Coinsurance requires the insured to carry a minimum amount of insurance based on a percentage of the value of the building or contents. All of the following are percentages available except

75%

Which of the following best describes a franchise deductible?

No payments is made until the loss equals or exceeds the deductible amount, the the loss is paid in full

All of the following can be expressed as liability limits except

Statutory limits

Which of the following best illustrates negligence as it applies to insurance?

An insured looks down to change the radio station and hits another vehicle in the rear

All of the following are duties of the insured after a loss EXCEPT

Disclose information to the other party’s attorney

When the insured transfers his rights against the other party to his insurer, it is known as

Subrogation

The policy condition that says that coverage applies equally to each insured as if the other insureds did not exist is called

Severability

Coverages required in order to comply with the Florida financial responsibility law are

Bodily injury liability and property damage liability

Which of the following does not trigger the Florida financial responsibility law

An accident where the policy are called

All of the following are penalties for non-compliance with the Florida financial responsibility law except

Having your car impounded

Which of the following is a “defined motor vehicle“ under the Florida No-Fault law?

18 Wheel tractor-trailer rig

Which of the following situations requires nonresidents to comply with the Florida No-Fault Law?

Have a vehicle in Florida more than 90 days of the preceding 365 days

Which of the following is not a benefit under personal injury protection?

Replacement services paid at 90%

All of the following are penalties for not complying with the No-Fault law except:

Confiscation of auto

Which statement below best describes the insured’s position under the Florida No-Fault law when the total medical and work loss bills exceeds the pip benefits without exceeding a threshold?

Insured can sue for the economic loss not paid or payable under PIP: no suit for intangible damages such as pain & suffering

Extended PIP does which of the following

Provides payment for lost wages at 80%

Rob has PIP with a $1,000 deductible. He has an auto accident causing $5,000 in medical bills. How much will his PIP pay?

$3,200

Which of the following best describes how PIP relates to other coverages?

Pip is primary to all coverages EXCEPT Workers’ Comp

Which of the following is not considered an owner of a “defined motor vehicle“ under the No-Fault Law?

Lessee of a vehicle for 3 months

All of the following types of ownerships are eligible for a personal auto policy EXCEPT

Owned jointly by unrelated persons whether or not they are living together

Robin has a personal auto policy covering her Chevrolet Camaro which has liability, PIP, Collision, and other than collision coverages. Robin trades in the Camaro on July 2nd and replaces it with a new Mitsubishi eclipse . Just 12 days later robin is in a wreck where she is at fault and damages both her car and another car. Robin never called to tell her agent about the trade. Which is true?

Both cars are covered by robin’s policy

Kim has a personal auto policy and is towing a rented trailer. The trailer comes loose and damages property and injured people. Which of the following best describes how the PAP would apply?

Bodily injury and property damage are covered plus any damage to the non-owned trailer up to $1,500

All of the following are supplementary payments under the personal auto policy except:

$300 on bail bonds

Part B Medical Payments coverage applies to medical services rendered after an accident up to how many years?

3 Years

Uninsured motorist coverage under the personal auto policy pays for which of the following?

Bodily injury caused by a hit and run driver

Linda has $100,000 non-stacked Uninsured Motorist with 3 cars. She flips her car after being hit by a car that leaves the scene of the accident. What is the most she can collect from her Uninsured Motorist coverage?

$100,000

Which of the following is not a way to purchase Uninsured Motorist Coverage?

More than your Bodily Injury limits

Part D - Damage to your auto applies to all of the following except:

A vehicle furnished to you by your employer

Sarah has a Toyota Celica covered on her Personal Auto Policy with a $100 deductible for Other Than Collision, and a $500 deductible for Collision. One day while on her way to work she runs in to a pipe sticking out back of a truck and it damages her windshield. It will cost $300 to replace damaged glass, How much will her policy pay?

$300

One night while driving home from a business trip David hits a cow on a dark stretch of road. He is carrying Part D, Damage to your Auto, on his vehicle with a $250 deductible for other than collision coverage and $500 for collision. The damage to his vehicle is $3,250. How much will his policy pay?

$3,000

Larry has a personal auto policy. His employer also gives him a vehicle to drive, which he is able to use personally as well. Larry wants to make sure that his PAP covers him while he is driving the furnished car. What endorsement would you add to his PAP?

Extended non-owned coverage

If Rita did not own a vehicle but wanted to purchase a policy to cover her for liability, medical payments, and uninsured motorist while she drove someone else’s car, what coverage would she purchase?

Named Non-Owned Coverage

In a business Auto Coverage form, if you wanted to apply coverage to specifically described vehicles, which symbol would you use?

Symbol 7

All of the following are rating elements for the business auto coverage form EXCEPT:

Age of the Driver

Craig does not own a vehicle, but he drives a car that is furnished by his company. He wants to have liability coverage in case he rents a vehicle while on vacation. What coverage would his employer add to their business auto policy to extend coverage to Craig?

Drive other car coverage

Which of the following is true of the garage coverage form?

Garage keepers coverage can be added

The garage coverage form is a combination of 2 different coverage forms. What are they?

Business auto and general liability

Garage insurance section II liability does not apply to all of the following except:

Watercraft while on the premises

During the first 60 days that an auto policy is in effect the company can cancel for any reason EXCEPT non-payment of premium with how many days notice?

45 Days

All of the following are covered by a mechanical breakdown policy EXCEPT:

Radiator damaged in an accident

The typical coverage for rental reimbursement in a mechanical breakdown policy is:

$15 per day / $75 maximum

If an insurer wanted to non-renew a commercial property policy how many days notice must they give the insured?

45 days

What are the two ways a carrier can offer the deductible to commercial residential properties?

Per event or an annual basis

In a commercial condominium situation where the building form and the unit owner’s form both cover the same property in a loss, which of the following applies?

The association form is primary and the unit owners is excess

In the building and personal property coverage form, all of the following are considered building items, EXCEPT:

Free standing display cases

In order for business personal property to be covered under the building and personal property coverage form, it must be

Located on or within 100 feet of the premises

In the building and personal property coverage form, the most an insured can collect for removal of debris after a loss is:

25% of the loss paid plus 10,000

In the building and personal property coverage form there is coverage for newly acquired buildings up to $250,000 and personal property up to $100,000 for how many days?

30 Days

The building and personal property coverage form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. How many days must the building be vacant for the provision to apply?

60 Days

If a loss occurs under the building and personal property coverage form with the optional replacement cost provision, how long does the insured have to give intent to replace the damaged item in order to receive the replacement cost adjustment?

180 Days

All of the following are optional coverages under the building and personal property coverage form except

Business income coverage

The builders risk coverage form contains a provision requiring the insured to carry an amount of insurance that equals the completed value of the building. This is known as:

Need for adequate insurance clause

The builders risk coverage form terminates for all of the following reasons EXCEPT

30 days after occupancy in whore or in part

All of the following are coinsurance options under the business income coverage form except

75%

In the business income coverage form, the maximum period of indemnity option gives coverage for how many days?

120 Days

What is the purpose of the extended period of indemnity option in the business income coverage form?

Increases the 30-day period of indemnity grant up to 730 days

All of the following are exclusions common to all three causes of loss forms EXCEPT:

Theft

All of the following are covered causes of loss in the loss-basic form except

Earthquake

The causes of loss-broad form includes all of the basic perils plus some additional perils. Which of the following is one of those additional perils?

Falling objects

Which of the following coverages is found in a DP-3 but not in a DP-1?

Additional living expenses

All of the following are true of a DP-1 EXCEPT:

Building losses are covered on an “all risk“ basis

Which of the following is not a valid deductible for hurricane in the dwelling program?

$250

In the farm property policy, coverage for barns would be found in:

Coverage G

The farm property form Coverage C provides coverage for:

Household private property

Under the dwelling program forms, vandalism is not covered after the building has been vacant for how many days?

60 Days

All of the following can be written under a single flood policy except

Detached Shed

Under the flood policy, which of the following is the loss settlement provision for building damage to single family, owner occupied, primary residence dwellings?

Replacement Cost

Which of the following is not an eligibility requirement for the RCBAP flood policy?

25% mercantile floor area

Which of the following best describes an insured’s position regarding coverage under the CGL policy when a product is manufactured in the U.S. and a claim occurs in Japan?

Covered if the suit is brought in the U.S., Canada, or Puerto Rico

The commercial general liability claims made coverage form covers:

Accidents occurs on and after the retroactive date and is received during the policy period

All of the following are considered to be examples of when work is complete EXCEPT

Part of the work is complete and turned over to another contractor

What is the function of the retroactive date?

Establishes the date when claims made coverage begins

Which of the following is not true of the basic extended reporting period in a claims made policy?

Extends the policy period 60 Days

All of the following are covered under personal and advertising injury except

Bodily injury

What is the limit for medical payments coverage in the CGL?

$5,000 per person

All of the following are defined as insureds in the CGL except:

Spouse of a corporate officer

Which of the following is not true of the supplemental extended reporting period?

Provides for one new aggregate limit

Mega Sales INC, has a party celebrating the end of a banner year. As part of the celebration, Mega sponsors an open bar. One of Mega’s employees has a little too much to drink and, after leaving the party, is involved in a traffic accident where a third party is seriously injured. Which of the following best described how the CGL will respond?

CGL pays since Mega is not in the business of selling alcohol

Which of the following is not a basic limit under the CGL?

$50,000 fire damage limit

If a client wanted to buy a policy to cover liability arising out of a specific construction project by a specific contractor, they would purchase which of the following?

Owners and contractors protective liability

An excess liability policy that provides the same coverages, provisions, and exclusions as the underlying policy is called:

Follow form excess

An umbrella can be broader than the underlying policies and may respond as primary coverage. The policy contains a feature that is similar to a deductible that applies when this situation occurs. This is called:

Self-insured retention

Which of the following is the basic limit offered in the physicians, surgeons, and dentists policy?

$250,000 per occurrence / $50,000 aggregate

All of the following are true of the lawyers professional policy except

Includes coverage for paralegals

Personal liability includes all of the following except:

Coverage for damage to reputation

All of the following are insureds under the personal liability policy except

The neighbor’s child staying with the insured for a week

The farm liability policy automatically includes which of the following?

Personal injury liability

Billy-joe conducts farming operations for his neighbor based on a $5,000 anual contract. If he backs his tractor into someone else’s truck, what would he need on his farm liability policy to be covered?

Custom farming endorsement

What does employment related practices liability cover?

Liability arising out of injury from employment-related offenses

All of the following are eligible for homeowners coverage except:

Single family, tenant occupied home

All of the following items are limited for coverage in the homeowner’s policy except

Business property off premises: $2,500

Dan has an HO-3 with $150,000 for coverage A. How much Coverage D does he have?

$45,000