2-20 Property And Casualty Cram Course

Front 1

"Appointment"

Back 1

When an insurance company gives the authority to a licensed agent to transact business on their behalf, this is referred to as:

Front 2

"Second-degree misdemeanor"

Back 2

All of the following are penalties for representing an unauthorized insurer EXCEPT?
A. "Second-degree misdemeanor" B. "Third degree felony" C. "Responsible for unpaid claims"
D. "Revoked License "

Front 3

"Pre-emption"

Back 3

The unauthorized health plan and the entity sponsoring it are not subject to the state insurance regulations. This is referred to as?

Front 4

30

Back 4

A General Lines Agent has how many days to report the final disposition of any administrative action taken against them to the Dept of Financial Services?

Front 5

3rd Degree Felony

Back 5

An agent who knowingly represents an unauthorized insurance entity is penalized in which of the following ways:

Front 6

Health Insurance

Back 6

The main coverage problem area involving unauthorized insurance agencies is:

Front 7

Potential problems between the State and Federal governments

Back 7

Rationale for regulatory concern with unauthorized insurance includes all of the following EXCEPT:
A. Potential for criminal activity within the business of insurance
B. Adverse economic impact upon authorized insurance companies
C. Potential problems between the State and Federal governments
D. Adverse economic impact upon health care providers from unpaid claims

Front 8

Subject to Federal then State regulation

Back 8

The primary legal and factual issue involved in unauthorized health insurance is the claim that a health plan and the entity that is partly self-insured is:

Front 9

Commerce

Back 9

Savings Clause - Purveyors of unauthorized health plans shall be construed to exempt or relieve any person from any laws of any State, which regulation includes all except:
A. Banking B. Insurance
C. Commerce D. Securities

Front 10

The employees of two or more employers

Back 10

A multiple employer welfare benefit plan or other arrangement is established or maintained to provide one or more various benefits to:

Front 11

3rd Degree Felony

Back 11

Agent represented an unauthorized MEWA. What is the penalty?

Front 12

Multiple Employers health insurance plan

Back 12

MEWA is subject to State Regulation because:

Front 13

Health Insurance

Back 13

What is covered under MEWA?

Front 14

Be charged with a 2nd degree misdemeanor

Back 14

An agent is working for an unauthorized company. What would the agent not have to do?

Front 15

Contribution

Back 15

Money placed in a program under the ERISA regulation is considered?

Front 16

ERISA

Back 16

Which of the following plans is exempt from State regulation?

Front 17

MEWA

Back 17

All are consider ERISA, and does not make it subject to Florida Department of Insurance Regulations control EXCEPT?
A. Saving Clause B. Deemer Clause
C. Pre-exemption Clause D. MEWA

Front 18

Department of Labor

Back 18

Who regulates ERISA?

Front 19

Employee Beneftis

Back 19

What does ERISA represent?

Front 20

"Workers Compensation"

Back 20

All are included in a CPP, EXCEPT?
A. "Auto"
B. "Workers Compensation"
C. "Liquor Liability"
D. "General Liability"

Front 21

"Aviation"

Back 21

All of the following would be covered under a CPP, EXCEPT?
A. "Professional Liability" B. "Inland Marine"
C. "Aviation" D. "Liquor Liability Coverage"

Front 22

Professional Liability

Back 22

All of the following would not be covered under a CPP, except:
A. Ocean Marine B. Health
C. Personal Auto D. Professional Liability

Front 23

Commercial Aviation

Back 23

Under the CPP, which of the following are not covered?
A. Commercial Aviation B. Commercial Property
C. Commercial Liability D. Commercial Crime

Front 24

GL & Property

Back 24

What two policies will be adequate to create a CPP?

Front 25

Easier to read

Back 25

When comparing CPP with monoline policies. All of the following are advantages of CPP EXCEPT:
A. Less Policies B. Less likely to overlap coverages
C. Easier to read D. Less Premium

Front 26

Worker Compensation

Back 26

All of the following could be covered under the CPP EXCEPT?
A. Commercial Auto B. General Liability
C. Worker Compensation D. Commercial Property

Front 27

Personal Homeowners

Back 27

CPP, what cannot be included?
A. Business Auto B. Commercial Property
C. General Liability D. Personal Homeowners

Front 28

CGL

Back 28

What could be included into the CPP?
A. Worker comp B. HO
C. DP D. CGL

Front 29

Businessowners

Back 29

Which of the following is NOT an example of CPP?
A. Inland Marine B. Businessowners
C. Boiler & Machinery D. Crime

Front 30

Exclusions

Back 30

What is not covered on Boiler and Machinery policy?
A. Exclusions B. Cost of Defense
C. Extension of Coverage D. Expediting Expenses

Front 31

90 days

Back 31

Under Boiler and Machinery, what period of time does the insured have to call the agent to advise there is a newly acquired machinery in the insureds care?
A. 30 days B. 60 days
C. 90 days D. Does not have to call

Front 32

$5,000,000

Back 32

The minimum qualification for small business policy under Boiler and Machinery is?
A. $10,000,000 B. $5,000,000
C. $1,000,000 D. $25,000

Front 33

Consequential Damage

Back 33

Under Boiler & Machinery coverage, what endorsement provides coverage for a loss due to spoilage?
A. Business Interruption B. Consequential Damage
C. Extra Expense D. Valued Amount

Front 34

$500.000

Back 34

What is the minimum basic limit on Boiler and Machinery?
A. $50,000 B. $100,000
C. $200,000 D. $500.000

Front 35

Coverage for property owned, used and in the care, custody & control of insured

Back 35

The insured acquired property of others by accepting the offer to use a different businesses boiler. How would the policy respond if a loss occurred?
A. No Coverage B. Coverage only for property owned by insured C. Coverage for property owned, used and in the care, custody & control of insured D. Must be covered under the owners policy

Front 36

Highest deductible if two machines are damaged

Back 36

How is the Boiler and Machinery Breakdown Policy deductible applied?
A. No deductible B. Per Policy Year
C. Per Occurrence D. Highest deductible if two machines are damaged

Front 37

Covered up to 90 days

Back 37

ABC has a Boiler and Machinery Policy. The insured acquires a new boiler. What is the coverage for newly acquired?
A. No coverage under the policy B. Must call agent first C. Covered up to 30 days D. Covered up to 90 days

Front 38

Property owned by others not used by the insured

Back 38

Boiler and Machinery Policies include all EXCEPT
A. Property owned by the insured B. Property in the Care, Custody, & Control of the insured C. Property for which the insured is legally liable D. Property owned by others not used by the insured

Front 39

Small Bus Boiler & Machinery and Small Business Boiler & Machinery Broad Form AND Boiler & Machinery

Back 39

What are the Coverage Forms for Boiler & Machinery Coverage.

Front 40

Limited to boilers only

Back 40

Under the Small Business Boiler & Machinery Broad form, the following are included EXCEPT:
A. $25,000 expending expenses B. Extra Expense of labor to expedite repairs C. Consequential Damage D. Limited to boilers only

Front 41

Expediting expenses

Back 41

Under Small Business Boiler & Machinery (Broad Form), a compressor blows. What is covered?
A. Expediting expenses B. Nothing Payable
C. Loss of Income D. Spoilage of Food

Front 42

The cost of temporary repairs until completed work is done

Back 42

ABC Company has a boiler and machinery policy with a Limited Coverage Endorsement. Their compressor breaks down and extensive repairs are needed. What is payable under ABCs Boiler and Machinery policy?
A. The compressor B. The cost of temporary repairs until completed work is done C. Operating expenses until completed work is done D. None of the above

Front 43

Replacement cost if replaced with 18 months from day of accident

Back 43

Under Boiler and Machinery when damage occurs, how is it paid?
A. ACV only B. Replacement cost Only C. ACV if replaced within 18 months of the accident D. Replacement cost if replaced with 18 months from day of accident

Front 44

$500,000

Back 44

What is the Minimum limit under the Boiler and Machinery?

Front 45

90 days

Back 45

The Newly acquired coverage provided under the Boiler & Machinery policy is which of the following

Front 46

Spoilage of food

Back 46

Our insured purchased the Consequential Damage endorsement under the Boiler and Machinery Policy. What type of property will be covered under the endorsement if loss occurs?

Front 47

Exclusions are dismissed in this type of policy

Back 47

A feature of the Boiler & Machinery that is not in other policies?

Front 48

The company can cancelled immediately

Back 48

Insurance Company wrote a B&M policy and later determine that the insureds business is more hazardous than advised,

Front 49

Additional cost for repairs

Back 49

An insured has a boiler and machinery policy. He suffers a loss due to an explosion. Under the expediting expense coverage, what would be covered?

Front 50

Expediting expense coverage

Back 50

The coverage which pays the cost of temporary repairs and to hasten permanent repairs or replacement is called:

Front 51

$25,000

Back 51

What is the maximum limit payable for expediting expenses in the unendorsed Boiler and Machinery Policy?

Front 52

18 months

Back 52

To receive replacement cost for a Boiler and Machinery loss, the property must be replaced within:

Front 53

Actual Loss Sustained Business Interruption

Back 53

The coverage endorsement that pays actual lost profits and continuing expense subject to the limit selected is called:

Front 54

Consequential damage

Back 54

Loss due to spoilage from lack of power, light, heat, steam or refrigeration is called:

Front 55

90 days

Back 55

The boiler and Machinery policy gives automatic coverage for boilers at newly acquired locations for how many days?

Front 56

$25,000

Back 56

The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad form is:

Front 57

Coverage is on a blanket basis

Back 57

All of the following are characteristics of Small Business Boiler and Machinery policy except:
A. Coverage is on a blanket basis B. Maximum coverage available is $5,000,000 C. Standard deductible is $500 D. Business interruption is 25 % of the limit but not an additional amount

Front 58

Consequential Damage

Back 58

If spoilage occurs due to lack of light, heat, steam or refrigeration, what does the insured need to have?

Front 59

Exclusions

Back 59

Under the Boiler & Machinery policy, all are parts of the form EXCEPT:
A. Limit of Insurance B. Coverages
C. Exclusions D. Extensions

Front 60

$500,000

Back 60

What is the minimum limit on a boiler and machinery policy?
A. $ 5,000 B. $ 50,000
C. $100,000 D. $500,000

Front 61

90 days

Back 61

What period of time does a business owner have to report new machinery on a boiler and machinery policy?
A. 30 days B. 60 days
C. 90 days D. Must notify the insurance company immediately

Front 62

Replacement Cost when reported within 18 months

Back 62

Boiler and Machinery, on what basis will the claim be paid?

Front 63

Amount of the claim

Back 63

Boiler & Machinery – What does arbitration determine?

Front 64

Coverage suspended immediately

Back 64

An agent went to a small business to deliver a Boiler & Machinery policy. Upon his arrival, the agent observed the that the conditions were unacceptable, what would happen?

Front 65

Hard

Back 65

Which market has spawned more fraudulent activities:
A. Soft B. Hard
C. Soft to hard D. Hard to soft

Front 66

Union Plans

Back 66

A collective bargaining agreement between the union and the employees is a bona fide arrangement is called:

Front 67

30 days

Back 67

How many days does the adjuster have to send notice to the claimant, if the claim is not going to be paid?

Front 68

Giving projections of dividends

Back 68

The agent misrepresented in all of the following systems EXCEPT?
A. Giving projections of dividends B. Mislead the consumer regarding benefits, advantages, or terms of the policy C. Made false statements about policy surplus D. Did not give a accurate accounting of the companys financial position

Front 69

creating rules

Back 69

What are the duties of the CFO?
A. creating laws B. endorsing laws
C. creating rules D. imposing the guidelines on code

Front 70

HO 3, HO 4, HO6, DP1, DP3

Back 70

CPIC offers which of the following?

Front 71

Wind and Hail

Back 71

Home is located in a certain coastal area and has a wind policy. Under CPIC what are the covered perils?

Front 72

Refrigerator

Back 72

CPIC will insure a 50 year old home if improvements are made on all of the follow EXCEPT?
A. Roof B. Plumbing
C. Heating, Electtrical D. Refrigerator

Front 73

Accident

Back 73

The insured has a gas leak in the house due to faulty construction. After breathing the gas for several years, the insured develops health problems. This is an example of:

Front 74

$230,000

Back 74

Insured has a $3,000,000 blanket policy, covering two buildings. First building is valued at $200,000 and the second building is valued at $400,000. Building one had a total loss and the damage was $230,000. How much is payable?