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193 Cards in this Set
- Front
- Back
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1.If someone would suffer economic loss from damage to their property, they have: A: a subrogation right B: a proximate cause C: an insurable interest D: a contingent claim |
A - an insurable interest
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2. A convenience used to provide temporary insurance is called: A - Insurace B - binder C- property coverage D- liability coverage |
B: binder |
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3. The failure of the insured to reveal a known fact to the insurer, which would have had an adverse effect on the policy being issued is: A: Waiver B: Concealment C: Warranty D: Misrepresentation |
B: Concealment |
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4. Insurance where payment is made on behalf of the insured to another party is called: A: Adverse selection B: Binder C: Property coverage D: Liability coverage |
D: Liability coverage
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5. When the insurer adopts a provision providing broader coverage without additional premium, and the broader coverage automatically applies to the existing policy, it is called: A: Apportionment B: Liberalization C: Appraisal D: Abandonment |
B: Liberalization |
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6. Any insurance where the insurer pays the insured or some other named interest directly is called: A: Adverse selection B: Binder C: Property coverage D: Liability coverage |
C: Property coverage
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7. Knowingly making a false or fraudulent statement on an application is known as: A- Misrepresentation B- Twisting C- Sliding D- Rebating |
A- Misrepresentation
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8. If licensee fails to be appointed they are subject to losing their license. What period of time will trigger the termination of a license forfailure to maintain an appointment? A- 12 months B- 48 months C- 6 months D-36 months |
B- 48 months
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9. To obtain a license for the purpose of writing insurance only on family members or business relationship is known as: A- Unfair discrimination B- Controlled business C- Collateral business D- Rebating |
B- Controlled business
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10. If a licensee changes their name, residence address or business address, they must notify the Department of Insurance within: A- 10 days B- 30 days C- 45 days D- 90 days |
B- 30 days
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11.Agents in the state of Florida may rebate a portion of their commissions to the customer. The agent must meet all of the following, EXCEPT: A- Available to all insured’s in the same actuarial class B- The rebate schedule must be filed with the insurer C- Rebate schedule must be posted in the agency D- Agent must maintain a rebate schedule for two years |
D- Agent must maintain a rebate schedule for two years |
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12. All of the following are ineligible for coverage with Citizens Property Insurance Corporation, EXCEPT: A- Vacant properties B- Properties in disrepair C- Properties built over water D- Properties over 50 years old |
D- Properties over 50 years old (if roof and wiring updated) |
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13.Citizens Property Insurance Corporation uses standard homeowners forms, however, there is very limited endorsement availability. Which of the following endorsements is available? A- Scheduled Personal Property B- Home Daycare C- Personal Injury D- Replacement Cost on Personal Property |
D- Replacement Cost on Personal Property |
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14. All of the following coverages are available in the policies issued through Citizens Property Insurance Corporation, EXCEPT: A- Animal liability coverage B- Loss of use coverage C- Other structures coverage D- Damage to property of others |
A- Animal liability coverage
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15. All of the following are eligible Physical damage deductibles for private passenger autos with the Florida Joint Auto UnderwritingAssociation, EXCEPT: A- $100 B- $250 C- $500 D- $1,000 |
A- $100
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16.Knowingly making any misleading representations or incompleteor fraudulent comparisons of any insurance policy with the intent of inducing a person to cancel or lapse an insurance policy is known as: A) Misrepresentation B) Coercion C) Sliding D) Twisting |
D) Twisting
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17. A General Lines Agent may share his commission with all of the following except: A) Incorporated insurance agency B) Non-resident general lines agent C) Resident general lines agent D) Licensed customer service representative |
D) Licensed customer service representative |
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18. All of the following are eligible coverages for commercial automobile in the Florida Auto Joint Underwriting Association except: A) Liability Coverage B) Medical Payments Coverage C) Uninsured Motorist Coverage D) PIP |
B) Medical Payments Coverage |
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19. A General Lines agent who has been licensed less than six years from the beginning of their compliance period must satisfy continuing education every two years. How many hours are they required to complete? A- 14 B- 20 C- 24 D- 30 |
C - 24 |
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20.An insurance company formed in London which conducts businessin Florida, is known as: A- Domestic B- Foreign C- Alien D- International |
C- Alien
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21. Under the CFO, the Office of Insurance Regulation has responsibility for which: A- Legislation regarding insurance B- Adjudication of matters regarding insurance C- Regulation, compliance and enforcement of laws related to insurance D- Managing licensed entities in insurance |
C- Regulation, compliance and enforcement of laws related to insurance |
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22. An insurance company formed in any state, other than Florida, is known as: A- Domestic B- Foreign C- Alien D- Mutual |
B- Foreign |
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23. A General Lines Agent who has been licensed more than six years from the beginning of their compliance period must satisfy continuing education every two years. How many hours are they required to complete? A- 28 B- 21 C- 20 D- 15 |
C- 20 |
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24. The Office of Insurance Regulation does all of the following EXCEPT: A- Review rules and rates to ensure compliance with Florida law. B- Approve policy forms. C- Make rating and underwriting rules. D- Examine the qualifications of insurance companies. |
C- Make rating and underwriting rules. |
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25. A syndicate composed of all licensed companies in Florida which write auto insurance is correctly called which: A- FAJUA B- Citizens C- FWCJUA D- MEWA |
A- FAJUA
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26. Citizen’s considers all of the following uninsurable EXCEPT: A- Vacant property B- Properties over 50 years old, where wiring, heating and roof have been updated C- Condemned property D- Property built over the water |
B- Properties over 50 years old, where wiring, heating and roof have been updated |
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27. Under the CFO, the Department of Financial Services has a duty to investigate which: A- Rates B- Policy forms C- Commission scale D- Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance |
D- Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance
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28. The Office of Insurance Regulation oversees all of the following EXCEPT: A- Review of periodic financial statement submitted by carriers B- Review of NAIC coordinated multi state exams C- Review of material changes in ownership of insurers domiciled in Florida D- Review of educational background of Officers and Directors of carriers |
D- Review of educational background of Officers and Directors of carriers
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29. Under unauthorized insurers fraudulent activity is more likely under which: A- Hard markets B- Soft markets C- Medium markets D- Average markets |
A- Hard markets |
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30. Ethical conduct should require which: A- Agent puts his own interest first B- Agent puts his Agent’s Association first C- Agent puts the public’s interest first D- Agent puts his agency’s interest first |
C- Agent puts the public’s interest first |
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31. Failure to notify Insurance Department within 30 days of a change of name, residence address, principal business address or mailing address shall result in a fine not to exceed: A -$50 for the first offense B - $100 for the first offense C- $250 for the first offense D - $500 for the first offense |
C- $250 for the first offense |
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32. Penalties for aiding and abetting an unauthorized insurer include all of the following EXCEPT: A- Conviction of a third degree felony B- Liability for all unpaid claims C- Suspension or revocation of all insurance licenses D- Conviction of a Misdemeanor |
D- Conviction of a Misdemeanor
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33. Under the CFO the Department shall, in its order suspending a license, specify a period of suspension or revocation, but the period shall not exceed: A- 1 year B- 2 years C- 3 years D- 4 years |
B- 2 years |
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34. All of the following are sliding EXCEPT: A- Telling the applicant that a coverage or product is required by law when such coverage or product is not required. B- Telling the applicant that a coverage or product is included in the policy applied for with no additional charge, when such charge is required. C- Charging an applicant for a coverage or product in addition to the cost of the insurance coverage applied for without the informed consent of the applicant. D- Offering part of the commission to the applicant as an inducement for them to buy insurance from you. |
D- Offering part of the commission to the applicant as an inducement for them to buy insurance from you |
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35. Knowingly making, publishing or circulating any oral or writtenstatement which is false or maliciously critical of any person and which is calculated to injure such a person is known as: A- Boycott B- Coercion C- Intimidation D- Defamation |
D- Defamation |
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36. The Florida Comprehensive Hurricane Damage Mitigation Program is with: A- Department of Agriculture B- Department of Professional Regulation C- Department of Financial Services D- Department of Emergency Operations |
C- Department of Financial Services |
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37. Each of the following is an example of opening protection EXCEPT: A- Impact resistant sky lights B- Windowless doors C- Impact resistant windows D- Hurricane shutters |
B- Windowless doors |
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38. None of the following roof types is automatically eligible for adiscount EXCEPT: A- Gable roof B- Hip roof C- Tin roof D- Tile roof |
B- Hip roof |
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39. Liability coverage through the Florida Auto JUA for an individual is available up to which limits: A- 10/20/10 B- 50/100/25 C- 100/300/50 D- 250/500/100 |
C- 100/300/50 |
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40. The continuing education statutes require a minimum of: A- At least 5 hours on the subject of statutory updates related to the license B- At least 4 hours on the subject of ethics C- At least 1 hour on the subject of Financial Responsibility Law D- At least 4 hours on the subject of ethics and at least 1 hour on the subject of Financial Responsibility |
A- At least 5 hours on the subject of statutory updates related to the license |
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41. The insurance provision that provides lower insurance rates for insureds who insure at levels close to the value of property, thus getting insurance coverage closer to property values is called: A- Coinsurance B- Subrogation C- Other insurance D- Proration |
A - Coinsurance |
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42. Jane has a $100,000 property policy with an 80% coinsurance clause. Her building worth $200,000 is totally destroyed by fire. How much will Jane recover under her property policy. A- $50,000 B- $80,000 C- $100,000 D- $160,000 |
C- $100,000 |
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43. An insured has $60,000 property coverage on a building purchased 2 years ago for $80,000. The coverage is written with an 80% coinsurance clause. If the insured suffers a $40,000 loss, how much will she recover of the value of her building at the time of the loss is $100,000? A- $24,000 B- $30,000 C- $32,000 D- $40,000 |
B- $30,000 |
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44. Mac has a $450,000 property policy with an 80% coinsurance clause. His building worth $500,000 suffers a $100,000 loss. How much will Mac recover under his property policy? A- 0 B- $80,000 C- $90,000 D- $100,000 |
D- $100,000 |
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45. The body of statutory law known as ERISA is primarily enforced bywhich of the following: A- United States Department of the Interior B- United States Department of Labor C- United States Department of Justice D- United States Department of State |
B- United States Department of Labor |
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46. Under a MEWA, which is true: A- They cannot be for employees of 2 or more employers B- A MEWA cannot be a single employer plan C- A MEWA cannot be a 3 employer plan D- A MEWA cannot be a 4 employer plan |
B- A MEWA cannot be a single employer plan |
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47. MEWA stands for which: A- Medical Education Workers Association B- Marine Environment Workers Association C- Multiple Employer Welfare Arrangement D- Multiple Employer Workers Association |
C- Multiple Employer Welfare Arrangement |
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48. Under ERISA, a major goal was to allow which: A) A single employer to fully self insure a health plan B) Require at least 2 employers to self insure a health plan C) Require at least 3 employers to self insure a health plan D) Require at least 4 employers to self insure a health plan |
A) A single employer to fully self insure a health plan |
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49. The Office of Financial Regulation is responsible for all of the following except: A) Regulation of insurance rates & forms B) Regulation of banks C) Regulation of credit unions D) Regulation of securities industry |
A) Regulation of insurance rates & forms |
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50. The part of an insurance policy that gives the name of the insured,the limits, and the policy forms attached is the: A) Conditions B) Declarations C) Definitions D) Endorsements |
B) Declarations |
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51. A clause in a policy named “Duties after a loss has occurred”,which lays out the responsibilities of an insured for reporting claims,would most likely be found in which policy section: A) Conditions B) Declarations C) Definitions D) Endorsements |
A) Conditions |
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52. Which of the following is a form that can be attached to a property insurance policy to define which perils are covered by the policy? A- Conditions B- Coverage Form C- Cause of Loss Form D- Declarations |
C- Cause of Loss Form |
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53. Which of the following is a valid reason for having coinsurance clauses on insurance policies? A- To save the insurance company money when claims are due B- To specify how two policies will interact if both provide coverage C- To make insurance easier for consumers to understand D- To keep premiums down for people who agree to insure to a certain value |
D- To keep premiums down for people who agree to insure to a certain value |
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54. The part of an insurance policy that summarizes the guarantees provided by the insurance company is the: A- Insuring agreement B- Conditions C- Endorsements D- Definitions |
A- Insuring agreement |
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55. The part of an insurance contract that contains rules and obligations of the insured and the carrier is the: A- Declarations B- Endorsements C- Conditions D- Insuring Agreement |
C- Conditions |
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56. The part of an insurance contract that removes coverage for certain things is called the: A) Definitions B) Conditions C) Endorsements D) Exclusions |
D) Exclusions |
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57. To indemnify can best be described as which of the following: A) To reduce net worth B) To restore lost value C) To replace insurance coverage D) To add coverage to a policy |
B) To restore lost value |
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58. Which of the following can be accomplished using the Appraisal clause of a policy? A- Determine whether the insured is legally entitled to recover damages B- Bind parties to the decision of the appraiser C- Resolve disputes about the value of covered property D- All of these |
C- Resolve disputes about the value of covered property |
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59. The general function of Inland Marine Insurance is to cover all EXCEPT: A- Risks of transporting property B- Any property moveable by its nature C- Instrumentalities of transportation and communication D- Hull, Cargo, Freight and protection and indemnity |
D- Hull, Cargo, Freight and protection and indemnity |
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60. In Inland Marine a policy created by a bureau such as ISO is called: A- Uncontrolled B- Uniform C- Controlled D- Contrived |
C- Controlled |
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61. A marine vessel owner may insure against the loss of income due to failure to deliver cargo with: A- Sue and Labor B- Cargo coverage C- Hull coverage D- Freight coverage |
D- Freight coverage |
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62. Ocean Cargo coverage that covers goods of a certain class up to certain limits with values to be declared subsequently with no termination date is called: A- Open B- Special C- Valued D- Franchise |
A- Open |
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63. The Running Down Clause would cover which of the following damage: A- Negligent damage to another ship B- Negligent damage to a pier C- Negligent damage to a reef D- Injury to passengers of another ship |
A- Negligent damage to another ship |
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64. A deductible under which there is no payment for loss until a certain amount of loss is reached, then loss paid in full, is called: A- Participating B- Flat C- Straight D- Franchise |
D- Franchise |
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65. The Ocean Marine clause that pays the cost to save goods from loss, or minimize loss is called: A- Sue and labor B- General average C- Barratry D- Running Down |
A Sue and labor |
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66. Throwing part of ship or cargo overboard is called: A- General Average B- Particular Average C- Barratry D- Jettison |
D- Jettison |
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67. A Standard Provision form which has been published and filed for uniform use by the Bureau is called: A- Admitted B- Controlled C- Uncontrolled D- None of these choices |
B- Controlled |
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68. An Ocean Marine policy has a Franchise deductible with a 5% limit. If a cargo insured for $100,000 suffers a $2,500 loss the carrier would: A- Pay $2,500 B- Pay $2,375 C- Pay nothing D- Pay replacement cost |
C- Pay nothing |
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69. A particular average is: A- A maritime peril B- A maritime warranty C- A partial loss D- A loss sharing clause |
C- A partial loss |
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70. Fraud by the crew and master with the intention of receiving gain at the owners expense is called: A- An Average B- Barratry C- Jettison D- Inchmaree |
B- Barratry |
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71. Value of Vessel - $1,000,000. Value of Cargo - $1,000,000. To save ship and cargo, captain must jettison $50,000 of deck cargo. This saves the venture. The vessel’s carrier will pay: A- $25,000 B- $50,000 C- Replacement cost D- Nothing at all |
A $25,000 |
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72. The voluntary sacrifice which successfully saves a ship and is borne proportionately by all interests engaged in the venture, is called: A- General Average B- Particular Average C- Barratry D- Jettison |
A- General Average |
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73. In Inland Marine a policy created by one company for its customers is called: A- Controlled B- Unique C- Uncontrolled D- Private |
C- Uncontrolled |
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74. Protection and Indemnity Insurance covers all of the following situations EXCEPT: A- Shipowner liable to passengers of another ship his ship collided with B- Shipowner liable to passengers of his own ship hurt in a collision C- Shipowner liable for damage to cargo on his ship due to a collision D- Shipowner liable for damage to other ship in a collision
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D- Shipowner liable for damage to other ship in a collision |
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75. Identify the liability coverages found in Ocean Marine. i. Runningdown clause (ii.) Protection and Indemnity (iii.) Sue and Labor (iv.)Inchmaree clause A- i only B- i, ii C- i, ii, iii D- i, ii, iii, iv |
B- i, ii |
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76. What Inland Marine coverage form would one use to cover a tractor dealer? A- Mobile Agricultural Equipment Floater B- Commercial Articles Coverage Form C- Equipment Dealers Coverage Form D- Contractors Equipment Floater |
C- Equipment Dealers Coverage Form |
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77. All of the following are controlled forms of Inland Marine insurance EXCEPT: A- Accounts receivable B- Commercial Articles C- Jewelers Block D- Motor truck cargo |
D- Motor truck cargo |
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78. An example of Instrumentality of Transportation under Inland Marine would be which? A- Truck B- Train C- Inland Barge D- Bridge |
D Bridge |
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79. All are controlled Inland Marine Forms EXCEPT: A- Accounts Receivable B- Camera Dealers C- Floor Plan D- Motor Truck Cargo |
D- Motor Truck Cargo |
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80. How are deductibles expressed in Aircraft Hull policies? A- Flat dollar amount B- Percentage of the loss C- Percentage of the value D- As a franchise deductible |
C- Percentage of the value |
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81. Hangarkeepers Liability Coverage provides coverage for: A- Persons injured on hangar premises B- Aircraft in hangar owners CCC C- Medical payments for guests D- None of these choices |
B- Aircraft in hangar owners CCC |
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82. All of the following are typical coverages under aircraft liability policies EXCEPT: A- Bodily Injury excluding passengers B- Passenger liability C- Property damage liability D- Cargo liability |
D- Cargo liability |
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83. All of the following are exclusions found in aircraft policies EXCEPT: A- No coverage if the FAA airworthiness certificate is not in full force B- No coverage if maintained or used for purpose beyond use classification C- No coverage if operated by other than pilot declarations D- No coverage if operated more than 50 miles beyond the limit in the declaration |
D- No coverage if operated more than 50 miles beyond the limit in the declaration |
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84. Most Aircraft Hull policies pay on the basis of: A- ACV B- Replacement cost C- Valued policy D- Fair market value |
C- Valued policy |
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85. If FAA has granted a special permit or waiver to an insured under aircraft insurance, the effect of flying while under such permit or waiver would be to: A- Reinstate Suspended Coverage B- Reinstate coverage provisionally C- Cancel policy D- Exclude coverage while aircraft is in flight |
D- Exclude coverage while aircraft is in flight |
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86. Hangarkeepers Liability typically covers: A- BI and PD arising from use, operation and maintenance of hangars B- Named Perils Damage to Hangarkeeper’s own aircraft C- All Damage Not excluded to Hangarkeeper’s aircraft D- All Damage Not excluded to aircraft of others stored for safekeeping or repair |
D- All Damage Not excluded to aircraft of others stored for safekeeping or repair |
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87. Damage to baggage on an airplane is covered under: A- Property Damage Liability B- Cargo Liability C- Hangarkeepers Liability D- Product Liability |
B- Cargo Liability |
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88. Hull coverage is generally available as all EXCEPT: A- All Risk – not in flight B- Named Peril – not in flight C- All Risk – in Flight D- Named Peril – in flight |
B- Named Peril – not in flight |
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89. A private aircraft owner’s airplane is undergoing maintenance and minor repair. Which of the following explains best how his aircraft liability coverage will apply if he uses a rented plane while his is inoperative? A- He must have the rented aircraft’s coverage endorsed to cover him B- He can have his own policy endorsed to cover him C- His policy automatically covers him D- Coverage not readily available for such a risk |
C- His policy automatically covers him |
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90. Insured has aircraft medical payments. A passenger falls while getting out of the insured craft. How would the med pay respond? A- No coverage unless due to insured’s negligence B- No coverage because passenger was leaving aircraft and simply fell C- Covered as admitted liability not med pay D- Covered as policy spells out accidents caused by alighting are covered |
D- Covered as policy spells out accidents caused by alighting are covered |
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91. The Personal Articles Floater provides automatic coverage for newly acquired jewelry for: A- Maximum $10,000/30 days B- Maximum $2,500/30 days C- Maximum $10,000/90 days D- Maximum $2,500/90 days |
A- Maximum $10,000/30 days |
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92. The Building Ordinance Form would cover all of the following costs EXCEPT: A- Cost to demolish undamaged portion of building B- Cost to haul off debris from the damaged portion C- Increased cost to rebuild in compliance with building code D- Undamaged portion of building that must be destroyed |
B- Cost to haul off debris from the damaged portion |
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93. Some bonds have an additional party. The name of this party is: A- Executor B- Indemnitor C- Administrator D- Adjudicator |
B- Indemnitor |
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94. To recover under a Boiler policy on a replacement cost basis, the insured must repair or rebuild within: A- 60 days B- 6 months C- 1 year D- 18 months |
D- 18 months |
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95. When a health insurer may not cancel during the policy term, but has the right to non-renew the policy upon expiration, it is called: A- Optionally Renewable B- Conditionally Renewable C- Guaranteed Renewable D- Noncancellable |
A- Optionally Renewable |
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96. In the Liability section of the BOP; the General Aggregate limit is: A- Twice the occurrence limit B- Equal to the occurrence limit C- There is no aggregate limit in a BOP D- None of these choices |
A- Twice the occurrence limit |
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97. Medical expenses under Worker’s Compensation are subject to thefollowing limitations: A- $100,000/5 years B- $100,000/no time limit C- No dollar limit/5 years D- No dollar limit/no time limit |
D- No dollar limit/no time limit |
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98. Under Commercial Umbrella Policies the SIR is: A- Significant Income Replacement B- Self Insured Retention C- Statutory Insured Retention D- Self Insured Reduction |
B- Self Insured Retention |
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99. Inside Premises Theft of Money & Securities covers all EXCEPT: A- Loss of money & Securities inside premises B- Extortion C- Property damage during the loss D- Destruction of securities |
B Extortion |
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100. Melvin has a PAP with Part D – Damage to Your Auto deductible of $250 for Collision and $100 for Other Than Collision. If Melvin runs into a large cow and has $2,950 damage to his auto, his Part D Coverage will pay: A- $2,950 B- $2,850 C- $2,700 D- $2,600 |
B- $2,850 |
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101. The minimum basic limits for Personal Liability are: A- $100,000 liability/$1,000 med pay B- $25,000 liability/$1,000 med pay C- $100,000 liability/$500 med pay D- $25,000 liability/$500 med pay |
A- $100,000 liability/$1,000 med pay |
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102. Debbie’s Garage has Garage Insurance with $500,000 in liability coverage. Todd, one of Debbie’s mechanics repairs the brakes on acustomer’s car. The brakes fail as a result of Todd’s negligence & the following damages result: Repair brakes… $500. Customer’s auto…$4,700. Auto struck customer… $6,400. Passenger in other auto…$9,000. How much will Debbie’s Garage Policy pay? A- $4,700 B- $15,400 C- $20,000 D- $20,100 |
C- $20,000 |
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103. The amount of coverage for debris removal in a Building &Personal Property Coverage Form is: A- The difference between the loss and the coverage limit. B- $1,000 C- $5,000 D- $10,000 excess over limit of policy |
D- $10,000 excess over limit of policy |
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104. All are covered by P.A.F. EXCEPT: A- Jewelry B- Cameras C- Guns D- Silverware |
C- Guns |
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105. A bond that guarantees that all labor and materials for the project will be paid by the contractor upon completion of the work is called a: A- Supply Bond B- Performance Bond C- Payment Bond D- Maintenance Bond |
C- Payment Bond |
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106. Indirect loss coverage under Boiler & Machinery may be written under all of the following methods EXCEPT: A- Valued B- Actual Loss Sustained C- Maximum Period D- Extra Expense |
C- Maximum Period |
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107. Florida Law requires the health insurer to give how many days notice of cancellation during the policy term? A- 10 B- 20 C- 30 D- 45 |
B- 20 |
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108. An insureds possibilities in purchasing UM coverage are all EXCEPT: A- Reject coverage B- Purchased unstacked UM C- Buy UM in a limit less than the BI liability limit D- Buy UM in a limit greater than the BI limit |
D- Buy UM in a limit greater than the BI limit |
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109. Each of the following is a difference between Personal Liability and Section II Liability in HO’s EXCEPT: A- No built in Loss Assessment coverage B- No Farm Exposure option C- No Personal Injury option D- No Damage to Property of Others coverage |
D- No Damage to Property of Others coverage |
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110. An individual who is furnished an auto but does not own an autocan secure PIP through which endorsement? A- Additional PIP B- Extended PIP C- Named Individuals – Broadened PIP D- Name Non-owner Coverage |
C- Named Individuals – Broadened PIP |
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111. All of the following are standard features of a BOP EXCEPT: A- No coinsurance B- Actual cash value on personal property C- Replacement cost on buildings D- Loss of income with no dollar limit |
B- Actual cash value on personal property |
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112. All of the following would be required to provide Worker’s Compensation coverage EXCEPT: A- A florist shop with two full time and three part-time employees B- A county government employing 129 persons C- A building contractor with 2 employees D- An individual who employs a maid four days per week 1 |
D- An individual who employs a maid four days per week |
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113. An insurer defends an insured under a CGL. The insurer incurs $21,000 in legal defense costs and the judgment against the insured is $100,000 plus $7,900 in prejudgement interest. If the CGL has a $100,000 occurrence limit, how much will the insurer pay of these costs? A- $100,000 B- $107,900 C- $121,000 D- $128,900 |
D- $128,900 |
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114. Deductible in Employee Theft is which? A- $250 B- $500 C- $1,000 D- $2,500 |
B- $500 |
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115. If someone steals employee’s personal effects from their place ofbusiness, a Building and Personal Property Coverage Form would: A- Not pay because it was determined that the insurance did not meet the 80% coinsurance requirement. B- Provide coverage up to $1,000 C- Provide coverage up to $2,500 D- Would not provide coverage for this loss |
D- Would not provide coverage for this loss |
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116. Under a P.A.F. all may be covered EXCEPT: A- Jewelry B- Musical instruments C- Golfers Equipment D- Outboard boat and motors |
D- Outboard boat and motors |
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117. A bond that guarantees that the bidder, if successful, will enter into contract and will satisfy future bonding requirements of that specific job is called: A- Bid Bond B- Performance Bond C- Supply Bond D- Fiduciary Bond |
A- Bid Bond |
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118. The Coverage Extension – Automatic Coverage in a Boiler policy covers objects at a new location for: A- 30 days B- 60 days C- 90 days D- 120 days |
C- 90 days |
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119. When a health insurer can refuse to renew the policy only under certain conditions, it is called: A- Optionally renewable B- Conditionally renewable C- Guaranteed renewable D- Noncancellable |
B- Conditionally renewable |
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120. John has three autos insured with Stacked Uninsured Motorist coverage in the amount of $100,000. John is driving Tim’s auto which has $50,000 UM coverage and has an accident in which the other party is negligent. What is the maximum John might collect under UM? A- $100,000 B- $150,000 C- $300,000 D- $350,000 |
D- $350,000 |
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121. Personal Liability covers those in CCC of insured if under: A- 12 years old B- 15 years old C- 18 years old D- 21 years old |
D- 21 years old |
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122. Sam has a Business Auto Policy with Section IV – Physical Damage written with a $250 deductible on Comprehensive and a $500 deductible on Collision. Sam runs into a tree limb destroying his windshield. If the cost to replace the windshield is $670, his policy will pay: A- 0 B- $170 C- $420 D- $670 |
D- $670 |
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123. In order for a service risk to be eligible for a BOP, gross sales must not exceed: A- $100,000 B- $250,000 C- $500,000 D- $3,000,000 |
D- $3,000,000 |
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124. Basic limit of Part One of Workers Compensation insurance is: A- $100,000 B- $300,000 C- $500,000 D- There is no limit on Part One |
D- There is no limit on Part One |
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125. All of the following could be insureds under a CGL EXCEPT: A- The spouse of a partner of an insured partnership B- The employee of an insured corporation C- A joint venture formed 50 days ago & not yet reported to the insurer D- A subsidiary entity purchased 62 days ago |
C- A joint venture formed 50 days ago & not yet reported to the insurer |
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126. In Crime insurance, the discovery period in an expired Loss Sustained Form is: A- 60 days B- 90 days C- 1 year D- 2 years |
C- 1 year |
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127. Ace Lawn Mower Sales sends one of its floor model riding mowers to Acme Lawn Mower Repair. While at Acme a cause of loss covered by Ace’s Building and Personal Property Coverage form causes $4,100 damage to the mower. Ace’s policy will providecoverage in the amount of: (ignore deductible). A- 0 B- $1,000 C- $2,500 D- $4,100 |
D- $4,100 |
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128. Quality within an object that results in the objects tending to damage or destroy itself, is called: A- Deterioration B- Wear and tear C- Inherent vice D- None of these choices |
C- Inherent vice |
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129. A bond that guarantees to the oblige indemnification for any losses resulting from principal’s failure to complete the job accordingto the terms of the contract is called: a. Bid Bond b. Performance Bond c. Supply Bond d. Maintenance Bond |
b. Performance Bond |
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130. The boiler and machinery endorsement that covers loss due to spoilage from lack of power, heat, etc., is: a. Limited Coverage b. Consequential Damage c. Additional Expediting d. Extra Expense |
b. Consequential Damage |
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131. When the health insurer is required to renew the policy to a stated age but may increase the premium in the underwriting class in which insured is placed, it is called: a. Optionally Renewable b. Conditionally Renewable c. Guaranteed Renewable d. Noncancellable |
c. Guaranteed Renewable |
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132. Med Pay under PAP covers all EXCEPT: A- Driver under influence of alcohol B- Driver speeding C- Driver at fault for accident D- Driver can collect under WC |
D- Driver can collect under WC |
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133. Farm liability excludes custom farming except for: A- $1,000 in receipts in any 6 month period B- $1,000 in receipts in any 12 month period C- $2,000 in receipts in any 6 month period D- $5,000 in receipts in any 12 month period |
D- $5,000 in receipts in any 12 month period |
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134. Under the Business Auto Policy, transportation expense reimbursement is: A- Included for all covered autos B- Included for private passenger auto only C- Included for auto designated by a symbol D- Not included in the policy |
B- Included for private passenger auto only |
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135. The endorsement which will increase the BOP Section 1 coverage at a certain percentage throughout the year is called: A- Inflation Guard B- Agreed Value C- Replacement Cost D- None of these choices |
A- Inflation Guard |
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136. Under Workers Comp, How is compensation calculated for Permanent Total disability? A- 66 2/3% X AWW (average weekly wage) B- [(85% X AWW) – actual wage] X 85% C- 60% X AWW D- [(95% X AWW) – actual wage] X 85% |
A- 66 2/3% X AWW (average weekly wage)
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137. A commercial Umbrella Policy is similar to: A- Follow Form Excess B- Stand Alone Excess C- Standard Excess D- Non-Standard Excess |
B- Stand Alone Excess
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138. Under Commercial Crime Discovery Form loss must be discovered in policy period or within how many days after expiration? A- 30 days B- 60 days C- 90 days D- 120 days |
B- 60 days |
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139. Sam’s Show Store has a Value Reporting endorsement, monthly option on his Building & Personal Property Coverage Form. The provisional amount is $100,000 and the effective date is 3/1/XX. Sam files his reports for March, April, May and June. The June value is $70,000. If Sam has a $60,000 loss in September and no more reports had been filed, the most he would recover is: A- 0 B- $45,000 C- $60,000 D- $70,000 |
C- $60,000 |
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140. Under Inland Marine policies all are correct EXCEPT: A- 25% of limit for newly acquired property B- Jewelry & Furs – 30 days automatic coverage C- Fine Arts – 90 days automatic coverage D- Theft coverage requires visible signs of forceful entry |
D- Theft coverage requires visible signs of forceful entry |
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141. Three parties to a surety bond are: A- Principal, Executor, Surety B- Obligee, Principal, Administrator C- Surety, Obligee, Principal D- Adjudicator, Surety, Obligee |
C- Surety, Obligee, Principal |
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142. The maximum available for expediting expenses in a Boiler & Machinery coverage is: A- $2,500 B- $5,000 C- $10,000 D- $25,000 |
D- $25,000
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143. When the health insurer cannot cancel the policy, cannot increase premium and agrees to renew policy to a stated age, it is A- Optionally Renewable B- Conditionally Renewable C- Guaranteed Renewable D- Noncancellable |
D- Noncancellable
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144. Under the CFO unfair methods of competition and unfair or deceptive acts may result in fine for each non-willful violation of not greater than: A- $1,000 for each violation and no more than $500 for all non-willful violations B- $5,000 for each non-willful and not greater than $20,000 for all non-willful violations C- $20,000 for each non-willful violation and $100,000 for all non-willful violations D - $100,000 for all non-willful violations and $500,000 for all non-willful violations for the same actions |
B- $5,000 for each non-willful and not greater than $20,000 for all non-willful violations |
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145. For roof covering to receive wind mitigation premium discount on property policies, the coverings must be: A - installed according to the 2001 Florida Building Code requirements B - of approved materials C- tested D- installed according to the 2001 Florida Building Code requirements, be of approved materials, and be tested |
D- installed according to the 2001 Florida Building Code requirements, be of approved materials, and be tested |
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146. An insureds medical payments coverage are: A- Excess in the owned auto/primary in the non-owned auto B- Primary in the owned auto/excess in the non-owned auto C- Applied only in the owned auto D- None of these choices |
B- Primary in the owned auto/excess in the non-owned auto |
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147. Olson McDonald has a farm. In addition to doing what must be done to successfully tend to his own operation he also does over $50,000 in farm related jobs for other farmers. If Mr. McDonald has accidentally destroyed another farmers crop while working on it, his policy would: A- Not cover work product B- Cover as property damage C- Cover if Custom Farming Option is in effect D- Covered if Products Completed Operations are in effect. |
C- Cover if Custom Farming Option is in effect |
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148. A Broad Form Products Endorsement to a Garage Insurance Policy provides: A- Coverage if the insured’s product is damaged by the insured’s negligence. B- Coverage if the customer’s product is damaged by the insured’s negligence. C- Coverage for the insured’s product being damaged by someone else’s negligence. D- None of these choices. |
A- Coverage if the insured’s product is damaged by the insured’s negligence. |
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149. Optional coverages offered in the Businessowners Policy Special Form are all EXCEPT: A- Employee dishonesty B- Exterior signs C- Mechanical Breakdown D- Loss of business income |
D- Loss of business income |
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150. Under Workers Comp, Temporary Total benefits are paid for: A- 260 weeks B- 208 weeks C- 156 weeks D- 104 weeks |
D- 104 weeks |
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151. Under a CGL which of the following injuries would not be excluded: A- A customer of the insured is injured when they back into the motor on the insured’s 40 foot boat which he is storing in his warehouse. B- The insured borrows a 28 ft boat to take a business client to see the holiday water parade. They run into a dock, damaging the dock. C- The insured decides to take advantage of his waterfront location & leases a boat to use as a water taxi. The boat is in an accident where persons on another boat are injured. D- The insured is towing a boat down the highway when it comes unhinged, striking vehicles and bystanders. |
A- A customer of the insured is injured when they back into the motor on the insured’s 40 foot boat which he is storing in his warehouse. |
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152. Employee Theft, applies to loss of all EXCEPT: A- Money B- Securities C- Property other than money & securities D- Cost of proving amount of loss |
D- Cost of proving amount of loss |
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153. In the Building and Personal Property Coverage form, vacancy of more than 60 days suspends coverage for all of the following causes of loss EXCEPT: A- Sprinkler leakage B- Weight of ice and snow C- Attempted theft D- Vandalism |
B- Weight of ice and snow |
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154. The coverage afforded by a Personal Articles Floater is: A- Named peril, worldwide B- All risk, worldwide C- Named peril, US and territories D- All risk, US and territories |
B- All risk, worldwide |
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155. Which type of bond guarantees performance and utmost good faith of a person appointed by the court such as a guardian, administrator or executor? A- Public official B- Court C- License D- Fiduciary |
D- Fiduciary |
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156. What is the standard deductible in the Boiler & Machinery coverage? A- $100 B- $250 C- $500 D- $1,000 |
C- $500 |
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157. Health insurance policy exclusions include all EXCEPT: A- Mental illness B- Self-inflicted injury C- All dental expenses D- Treatment in VA hospital |
C- All dental expenses |
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158. Named Non-Owner Coverage is used to: A- Cover for auto furnished and regularly available to the named insured. B- Cover for use of a non-owned auto in business. C- Cover for use of a non-owned auto to carry persons for fee. D- Cover an individual’s use of autos when he does not own an auto. |
D- Cover an individual’s use of autos when he does not own an auto. |
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159. Under HO policies the limit on computers and cellular phone used in business is what amount when off premises: A- $250 B- $500 C- $750 D- $1,500 |
D- $1,500 |
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160. An endorsement to the BAP in which named persons are covered for use of autos they do not own, is called: A- Driver Other Car Coverage B- Drive Away Collision C- Named Nonowner D- Non-ownership Liability |
A- Driver Other Car Coverage |
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161. What are the two Businessowners Policy forms? A- Basic/Open B- Basic/Named C- Open/Named as an option D- Broad/Named |
C- Open/Named as an option |
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162. Upon death of a worker, Workers Compensation pays a maximum death benefit payment of $150,000 plus: A- Funeral expenses of $15,000 B- Funeral expenses up to $10,000 C- Funeral expense of $25,000 D- Funeral expenses up to $7,500 |
D- Funeral expenses up to $7,500 |
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163. The form of general liability coverage that an insured may purchase to protect against claims arising out of the operations of independent contractors is called: A- Products/Completed Operations Coverage Form B- Owners & Contractors Protective Form C- Legal Liability Coverage Form D- Vicarious Contractors Protective Form |
B- Owners & Contractors Protective Form |
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164. Where a loss is covered by a Commercial Property Policy anda Crime Policy the Crime Policy will be: A- Primary B- Excess C- ProRata D- Equalshares |
B- Excess |
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165. To determine the value of damaged improvements andbetterments under coverage in a Building and Personal Property Coverage form,requires all of the following information EXCEPT: A- OriginalCost B- Replacementcost C- Timeperiod of lease D- Dateof loss |
B- Replacement cost |
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166. Under P.A.F. an insured has scheduled his stamp collection. Two very rare and valuable stamps have faded so badly that their value is cut in half. Former value $10,000, new value $5,000. How paid? A- $10,000 B- $5,000 C- Must be appraised for ACV and that amount paid. D- No coverage – excluded |
D- No coverage – excluded |
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167. Which type of bond is required by public bodies to protect the public, guarantees compliance with law, guarantees collection of taxes? A- Public Official B- Court C- License D- Fiduciary |
C- License |
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168. What Boiler & Machinery endorsement makes coverage excess to the other BI Liability coverage that applies to the same accident? A- Bodily Injury Liability B- Consequential Damage C- Expediting Expense D- Extended Bodily Injury |
A- Bodily Injury Liability |
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169. The period of time between when Health policy is issued and accepted and sickness benefits begin, may be called all EXCEPT: A- Waiting period B- Elimination period C- Cancellation period D- Incubation period in older policy forms |
C- Cancellation period |
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170. Twisting and churning carry a maximum legal penalty of: A. 1st Degree Misdemeanor B. 1st Degree Felony C. 3rd Degree Misdemeanor D. 3rd Degree Felony |
A. 1st Degree Misdemeanor |
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171. Fradulent Signatures carries a maximum legal penalty of: A. 1st Degree Misdemeanor B. 1st Degree Felony C. 3rd Degree Misdemeanor D. 3rd Degree Felony |
D. 3rd Degree Felony |
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172. What are the fines for unfair methods of competition / unfair and deceptive acts if determined to be wilful? A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all |
C- 40k each / 200k max |
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173. What are the fines for unfair methods of competition / unfair and deceptive acts if determined to be nonwilful? A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all |
A- 5k each / 20k max |
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174. Nonwilful twisting or churning carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all |
D- 5k each / 50k all |
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175. Willful twisting or churning carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all |
B- 75k each/ 250k max |
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176. Willful fraudulent signatures carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all |
B- 75k each/ 250k max |
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177. Nonwilful fraudulent signatures carry a maximum fine of: A- 5k each / 20k max B- 75k each/ 250k max C- 40k each / 200k max D- 5k each / 50k all |
D- 5k each / 50k all |
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178. Ms. Rhinehart has a Personal Auto Policy with liability limits of $100,000. If she has an accident and is found to be negligent, how much would her policy pay if there was a $120,000 judgment and $32,000 in defense costs? A- $152,000 B- $132,000 C- $100,000 D- $82,000 |
B- $132,000 |
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179. All of the following would be covered under Section II of a Homeowners Policy EXCEPT: A- 24 foot sailboat owned by the insured B- 80 hp outboard purchased six months after policy renewal C- 40 hp inboard-outboard rented to the insured D- Go cart driven on sidewalk in insured’s neighborhood |
D- Go cart driven on sidewalk in insured’s neighborhood |
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180. The ways that the protection of Garagekeepers Insurance may be written are all EXCEPT: A- Legal Liability B- Direct (liable or not) excess over customer’s coverage C- Direct (liable or not) primary coverage D- Direct (liable or not) prorating |
D- Direct (liable or not) prorating |
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181. Which best describes Loss of income coverage in the Businessowners Policy: A- Limited to $25,000 B- Subject to a coinsurance provision C- Limited to 120 days D- No dollar limit and includes loss of rents and extra expense |
D- No dollar limit and includes loss of rents and extra expense |
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182. Construction industry employers must provide Workers Compensation if they have? A- One employee B- Three employees C- Four employees D- Five employees |
A- One employee |
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183. An insurance agency holds a Christmas party & one of the guests has a little too much bubbly. If the guest injures someone and the injured party sues the agency: A- The agency will need a liquor liability coverage form B- The agency’s CGL will respond C- The agency needs Legal Liability Coverage Form D- The agency’s Business Auto Policy will respond |
B- The agency’s CGL will respond |
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184. The Crime Endorsement that covers losses due to threats of bodily harm or threats to damage property is called: A- Extended Coverage B- Extortion C- Exclusive D- Extra special |
B- Extortion |
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185. To receive replacement cost adjustment of a covered loss under a Building and Personal Property Coverage form, the insured must: A- Rebuild at the same location B- Notify the company with 90 days of intent C- Rebuild within a reasonable time D- None of these choices |
C- Rebuild within a reasonable time |
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186. Under Blanket P.A.F. on coins and stamps the maximum paid per coin or stamp is:A- $1,000B- $250C- $500D- $10,000 |
B- $250 |
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187. A bond that guarantees correction of faulty work or replacement of defective materials for a specific time, usually one year is called a: A- Maintenance Bond B- Supply Bond C- Payment Bond D- None of these choices |
A- Maintenance Bond |
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188. In Boiler & Machinery, for the Small Business form to be written, the 80% replacement cost cannot exceed: A- $250,000 B- $500,000 C- $1,000,000 D- $5,000,000 |
D- $5,000,000 |
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189. John Doe sent in a claim for an occupational injury and for dental expenses to his health insurance company. His health insurance will pay: A- Both occupational injury and dental expenses B- Occupational injury only C- Dental expenses only D- Neither occupational injury nor dental expenses |
D- Neither occupational injury nor dental expenses |
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190. Under a Personal Auto Policy, all of the following are included within “your covered auto” EXCEPT: A- An eligible vehicle acquired during the policy period B- A non-owned vehicle used as a substitute for an owned vehicle C- A trailer owned by the insured D- Motorcycle owned by insured |
D- Motorcycle owned by insured |
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191. Correct “Additional Coverages” in Section II Homeowners are all EXCEPT: A- Claim expenses B- First aid expenses C- Damage to Property of Others - $1,000 D- Loss Assessment - $5,000 |
D- Loss Assessment - $5,000 (should be $1,000) |
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192. What are the ways that blanket coverage for Physical Damage on dealer’s risks may be written? A- Schedule only B- Reporting, Schedule C- Schedule, Non-Reporting D- Reporting, Non-reporting |
D- Reporting, Non-reporting |
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193. Which of the following best describes the eligibility rule of an office building under a BOP? A- 50,000 square feet B- 75,000 square feet C- 100,000 square feet D- 200,000 square feet |
C- 100,000 square feet |
