2-20 General Lines Agent Florida 25Th Edition Quiz

Front 1

Smith, Inc. provides an automobile for an employee who has no automobile of his own. What additional coverages, of the following, could be added to protect the employee?

Back 1

Drive Other Car Endorsement

Front 2

What is the cancellation clause in Florida for the general liability policy?

Back 2

After 90 days, 45 days written notice of cancellation or nonrenewal is required

Front 3

W & P Enterprises ships ceramic tile in cartons on the deck of a commercial ship from the manufacturer in Spain to their distribution plant in Ft. Lauderdale. During a shipment, the ship starts to sink. Rather than try to off load the ceramic tile to another ship standing by, W & P Enterprises allows the tile cartons to sink knowing their insurance will cover their loss. Which clause would their insurer use to deny the claim?

Back 3

Sue & Labor clause

Front 4

Does not serve to enforce the Principle of Indemnity

Back 4

The Liberalization Clause

Front 5

What are the exceptions to the exclusion for liability for aircraft, automobiles or watercraft?

Back 5

Parking of others autos on or next to the insured's premises

Front 6

Which additional peril does the Broad Cause of Loss form not provide?

Back 6

Water damage from discharge from an A/C handler outside the building

Front 7

general exclusion under the Commercial Crime?

Back 7

Acts committed by the named insured or its partners and members, or by its employees, directors, trustees, or representatives (except under employee theft coverage)

Front 8

Describe aircraft liability coverage

Back 8

The company will pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury, sickness or disease, including death at any time, or injury to or destruction of property. Covers public and passenger liability and property damage liability.

Bodily injury liability (excluding passenger liability), passenger liability and property damage liability insurance

Front 9

What does Symbol 25 in the Garage Insurance Policy mean?

Back 9

"Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law.

Front 10

Is No-Fault coverage included in the policy sections of the Personal Auto Policy

Back 10

No, only by adding to the policy as an endorsement

Front 11

How are benefits for "temporary total" disability paid?

Back 11

At 66 2/3% of the employee's average weekly wage for a period not to exceed 104 weeks, except the employee may receive as high as 80% of average weekly wage up to $700 per week for up to six months during a period of retraining and rehabilitation.

Front 12

Describe a MEWA (Multiple-Employer Welfare Arrangement.)

Back 12

MEWAs require a Certificate of Authority from the Department of Insurance.

MEWAs are defined as an arrangement that is established or maintained to provide one or more various insurance benefits (health insurance) to the employees of two or more employers

MEWAs (Multiple-Employer Welfare Arrangement) are regulated as risk-bearing entities by the Florida Insurance Code.

Front 13

Explain the "Other Insurance Provision" of a Crime Insurance Policy

Back 13

Policy is excess over any other recoverable insurance

Front 14

Which shipping term describes a seller assuming responsibility for securing all necessary insurance?

Back 14

C.I.F - Cost, Insurance and Freight

Front 15

Which of the following describes the Individual Professional coverage of the Physicians, Surgeons and Dentists (PS&D) form?

Back 15

Coverage excludes any liability incurred as a member, partner, officer, director or stockholder of any professional partnership, association or corporation

Claims are paid for legal liability resulting from any 'medical incident' defined as the furnishing a medical or dental services

Applies to each person named in the declarations page as an insured as well as the insured's employees, or anyone else under the personal direction, control or supervision of the insured, including services by the insured on any professional board

Front 16

What does Symbol 31 in the Garage Insurance Policy mean?

Back 16

Dealers autos and autos held for sale by non-dealers or trailer dealers (physical damage).

Front 17

How do agents use residual markets on behalf of their clients?

Back 17

It is a similar process to procuring coverage through any voluntary insurance company; applications are forwarded to the designated servicing entity along with required premiums and underwriting information; policies are issued.

Front 18

Which type of structure would not qualify for coverage under Farm Coverage 'G' Other Farm Structures?

Back 18

Living quarters for seasonal farm workers

Front 19

Is a legitimate ERISA Self-Insurance plan necessarily an insurance plan subject to state regulation?

Back 19

A genuine single-employer ERISA plan is not subject to direct state insurance regulation

Front 20

Bob, a carpenter of XYZ drives an ABC dealership vehicle out of the car lot for a test. Bob has an at-fault accident. If ABC carries $1,000,000 Bodily Injury/Property Damage coverage, and Bob carries no insurance, how much coverage is applicable for Bob?

Back 20

$10,000/$20,000 Bodily Injury and $10,000 Property Damage

Front 21

What is included in the additional coverage for increased cost of construction?

Back 21

Paid only if the ordinance or law was in effect at the time the loss occurs

Paid only if the replacement cost option is selected

Paid if there is an increase due to the application of a building ordinance law that affects the repairs

Front 22

Which type of bond is provided to the Department as evidence of compliance with state law and guaranteeing financial responsibility to respond to obligations?

Back 22

Self-Insurance Bond

Front 23

Which of the following is a true statement concerning sole proprietors under the worker's compensation law?

Back 23

Sole proprietors and partners in the construction industry may not exempt themselves from coverage

Front 24

What is a conditional contract of insurance?

Back 24

The happening of a loss will not necessarily produce automatic claims response from the insurer.

Property and liability insurance policies are conditional contracts when the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions

Front 25

A Personal Articles Floater in the Inland Marine program excludes all the following except

Back 25

Mysterious Disappearance

Front 26

coverage part not eligible for a Commercial Package Policy?

Back 26

Commercial Surety

Front 27

In addition to general policy exclusions are there any specific exclusions, which apply to hull insurance?

Back 27

The correct answer is: No coverage for loss caused by conversion, embezzlement or secretion by any lessee or any other person in possession of the aircraft under a bailment lease, conditional sale, mortgage, or other encumbrance

Front 28

Define concealment

Back 28

Failure of the insured to reveal relevant facts known to the insured in applying for insurance

Front 29

How is the "wage-loss" benefits portion of the "permanent impairment" disability paid?

Back 29

These benefits are based upon a medical impairment rating schedule approved by the Division of Worker`s Compensation and are in two parts, "impairment and "wage-loss

Front 30

What is the medical payments coverage of a Garage policy?

Back 30

Automobile Medical Payments applied to autos covered for liability

Premises medical payments apply for medical reimbursement to customers and others who are injured at the garage premises but not involving autos

Front 31

Which shipping term describes a buyer purchasing his own insurance

Back 31

Cost and Freight

Front 32

How is occupancy defined under the homeowner's program?

Back 32

For private residential purposes

Front 33

A dealer who wishes to purchase coverage for products liability for damage to his own products would purchase which endorsement?

Back 33

Broad Form Products

Front 34

What are the limits of coverage under the Florida Automobile Underwriting Association for private passenger autos?

Back 34

Private passenger auto applications are eligible for Liability coverage with limits up to 100/300/50, Personal Injury Protection, Uninsured Motorist coverage. Medical Payments coverage with $500, $1,000 or $2,000 limit, and Physical Damage coverage.

Front 35

All automobile policies subject to the 'No-Fault' law include PIP coverage:

Back 35

PIP coverage only applies to bodily injury and related economic loss

Front 36

What is the standard deductible of section I-property coverage of a homeowner's insurance policy?

Back 36

A section I standard deductible which applies to the insured's loss in each occurrence is $500 for all perils other than hurricane

Front 37

Define the loss sustained crime coverage forms

Back 37

Only losses that both occurred and were discovered during the policy period or within one year of its expiration are covered (including losses that occurred under (expired) policies as long as coverage had not been interruption)

Front 38

Which of the following is not grounds for discretionary refusal, suspension or revocation of the license of a general lines agent or customer representative?

Back 38

Demonstration of a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license

Front 39

Under a Commercial Property Policy, which Cancellation/Nonrenewal day limit is incorrect?

Back 39

30 days for cancellation within the first 90 days the policy is in force

Front 40

What is covered in the additional coverage - Limited Coverage for Fungus, Wet Rot, and Dry Rot?

Back 40

Covers direct damage including the cost of removal, tearing out and replacing any part of the building to access the damage and the cost of testing after removal

$15,000 annual aggregate limit for all causes of loss other than fire or lightning

Does not increase the amount of insurance

Front 41

What property is generally excluded under the commercial property policy?

Back 41

Accounts, bills, currency and deeds

Property below the basement or ground

Fences, outdoor radio or TV antennas (including satellite dishes)

Front 42

What are the penalties for employers who are required to carry worker's compensation benefits for employees but fail to do so?

Back 42

The employer may be prevented from employing persons or conducting business until compliance is accomplished

Front 43

Assume, for each of the following, the insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) applies for; "Insured sold product which caused injury in 2000, it injured claimant in 2001, claimant first made claim against insured in 2002."

Back 43

2001 occurrence policy applies (occurrence form applies to BI/PD which occurs during the policy term). The 2002 claims-made policy does not apply because the occurrence happened before retroactive date.