2-20 General Lines Agent Florida Quiz Cram

Front 1

What is a conditional contract of insurance?

Back 1

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

Front 2

What do named peril policies include in aircraft hull policies?

Back 2

Any or all of the following coverages: fire, stationary land damage, windstorms, crash insurance and theft.

Front 3

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 3

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

Front 4

John is allowed use of a company car; what endorsement should he add to the PAP?

Back 4

Extended Non-Owned Coverage

Front 5

Define the term "insurer".

Back 5

Any person engaged in the business of insurance or annuities.

Front 6

eligibility guideline imposed by the Business owner's Policy for offices and office condominium associations?

Back 6

Buildings not over six stories high and containing not over 100,000 square feet of area, Offices must be occupied principally for office purposes with eligible occupancies, Office tenants who occupy not over 25,000 square feet in a single building

Front 7

does not define mobile equipment?

Back 7

Off-road licensed vehicles

Front 8

How are rates for worker's compensation determined?

Back 8

Premiums for overtime may be excluded

Front 9

Who is eligible for coverage under the Florida Worker's Compensation Joint Underwriting Association - FWCJUA?

Back 9

An employer who is unable to obtain coverage from at least two other carriers, and must not be indebted for any previous unpaid WC premiums

Front 10

Under the Garagekeepers coverage, Section III of the Garage policy, the insured suffers a single vandalism loss to nine (9) vehicles belonging to customers. Damage is $100 per vehicle. How much will the policy pay?

Back 10

$400

Front 11

How is occupancy defined under the homeowner's program?

Back 11

For private residential purposes

Front 12

A carrier providing shipping for others would need what kind of a policy?

Back 12

Motor truck cargo policy

Front 13

What is meant by equal share of the loss?

Back 13

The policy will contribute based on the number of policies, without regard to their limits

Front 14

provide periodic income payments when the insured is unable to work because of sickness or injury?

Back 14

Disability income insurance

Front 15

When may an agent share commission?

Back 15

An agent may divide or share in commissions with his or her employed solicitors and with other agents appointed and licensed to write the same kind or kinds of insurance.

Front 16

characteristics, which make coverages eligible for Inland Marine Insurance?

Back 16

Inland Marine forms do not cover such stationary property as real estate, furniture, fixtures, or merchandise, A wide variety of seemingly unrelated risks such as an element of portability

Front 17

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

Back 17

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

The Insurance Department may, at its discretion, issue a temporary license:

Back 18

If no other person connected with the agent’s business is licensed as a general lines agent, To a licensed agent’s employee, family member, business associate, or personal representative, In the event of death, disability, or absence of a general lines agent

Front 19

specific exclusions, which apply to hull insurance?

Back 19

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 20

available endorsement under the homeowner' policy?

Back 20

Losses arising from building ordinances or laws, Increased loss assessment option, Inflation guard

Front 21

How are agents appointed

Back 21

An insurer appoints a general lines agent to transact insurance or adjust claims on their behalf.

Front 22

An agent`s license is for the purpose of authorizing the licensee in good faith to engage in the insurance business. The license cannot be used for

Back 22

Receiving a rebate in the form of commission or other compensation for "controlled business"

Front 23

A Domestic Insurer is

Back 23

An insurer formed under Florida laws, but which may provide insurance in other states

Front 24

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 24

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

Front 25

What lines of insurance are general lines agents qualified to write?

Back 25

Except for limited lines licenses, all property, marine, casualty, and surety lines except bail bonds.

Front 26

The Department of Financial Services of Florida may, upon written application and payment of fees, issue a nonresident license:

Back 26

If a nonresident does not have a place of business in Florida, or does not have a direct or indirect interest in any insurance agency in Florida

Front 27

Which coverage continuation provision reserve the insurer's right to cancel the policy by giving specific notice, during the policy term?

Back 27

The Cancellation Clause

Front 28

A selected group of hospitals and medical practitioners in a given area who have joined together in an effort to reduce medical costs are commonly known as?

Back 28

A PPO

Front 29

Residual markets are created

Back 29

By the Legislature, Appear to the public to be similar to insurance carriers, With the ultimate responsibility for operating results falling upon all licensed carriers in Florida

Front 30

What is the standard deductible for coverage with Citizens?

Back 30

2% hurricane; $1,000 all other perils

Front 31

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

Back 31

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.

Applications are forwarded to any carrier along with required premiums and underwriting information; policies are issued.

Applications are forwarded to the Department of Financial Services along with required premiums and underwriting information; policies are issued.

Front 32

Who is eligible for coverage under the Florida Worker's Compensation Joint Underwriting Association - FWCJUA?

Back 32

An employer who is unable to obtain coverage from at least two other carriers, and must not be indebted for any previous unpaid WC premiums.

Front 33

Does Citizens provide coverage for any commercial properties?

Back 33

Citizens provides a commercial property market for condominium associations, apartment buildings, common elements of homeowner's associations and other commercial coverages for residences

Front 34

Under FAJUA, the maximum limits for Bodily Injury and Property Damage for commercial vehicles not required by law or regulation are:

Back 34

$100,000/$300,000 Bodily Injury and $50,000 Property Damage

Front 35

May a person who does not own an auto be covered under the FAJUA rules?

Back 35

Eligible persons who do not own an automobile may secure named non-owner policies.

Front 36

May anyone avail himself or herself of insurance offered under Citizens?

Back 36

To be eligible, the homeowner's or dwelling risk must have been unsuccessful in obtaining coverage through an admitted carrier. In addition the Citizens underwriting committee must deem the risk insurable.

Front 37

How would you define a personal contract in property and liability insurance?

Back 37

Property and Liability insurance policies cover persons, not property or operations, A loss depends upon the economic loss suffered by the person

Front 38

What are aggregate limits in the liability policy limits?

Back 38

limit is applied which represents the total insurance coverage that will be paid for the policy term.

Front 39

What are "lenders interests" in property insurance?

Back 39

A lender wants the protection insurance gives to them in order to make the loan, so that they are assured their loan collateral may be restored if it is damaged.

Front 40

Most policies recognize the insured may have other insurance that applies to the same loss. What is meant by pro rata share of the loss?

Back 40

The policy will pay the proportion which its limits bear to all limits

Front 41

Which of the following can collect medical payments coverage under a PAP?

Back 41

A fellow employee of the named insured while occupying a 'covered auto', The named insured while riding in a taxicab, A resident child of the named insured while getting off a school bus

Front 42

Under the Business Income Coverage Form, to be in compliance with the Coinsurance condition, the amount of insurance must be equal to the coinsurance percentage times the total of what?

Back 42

Pre tax profit/loss and all operating expenses

Front 43

The homeowner's program specifically states all of the following are eligible risks for the program except?

Back 43

A 1-4 family dwelling where the owner is not an occupant

Front 44

How are aircraft hull policies valued?

Back 44

Some policies are written on an actual cash value or replacement cost basis, Most aircraft hill policies are "valued" policies

Front 45

A Business Auto Policy (BAP) covers all of the following except:

Back 45

A truck crane

Covers: pickup truck, private passenger auto owned by corporation and semi-trailer

Front 46

Under the Commercial Property Policy, the Preservation of Property provision imposes a maximum time limit of how many days?

Back 46

30 days

Front 47

Who may appoint a Customer Representative?

Back 47

A general lines insurance agency, A surplus lines agent who is not a managing general agent, A person holding a Florida resident general lines agent license (2-20)

Front 48

Dwelling fire's Coverage C "Personal Property" excludes which items specifically?

Back 48

Valuable papers

Front 49

What does Symbol 9 in the Business Auto Policy mean?

Back 49

"Nonowned Autos Only". Coverage applies to autos, which the named insured does not own, lease, hire, rent or borrow except from employees or family members of an employee.

Front 50

the following describe when the "basic extended reporting period" in a claims-made policy may be used

Back 50

If the policy is cancelled or not renewed, If the policy is renewed with a retroactive date later that the date stated in the declarations, If the policy is renewed on an occurrence policy

Front 51

Define the discovery coverage forms

Back 51

Any loss discovered during the policy period or within 60 days after its expiration is covered regardless of when it occurred

Front 52

An employee was furnished a company automobile for his business and personal uses. While driving to a movie one evening, his automobile was struck by another vehicle at an intersection. The employee and two members of his family were injured. Which of the following statements is true?

Back 52

No coverage under the Workers’ Compensation policy

Front 53

excluded on all cause of loss forms

Back 53

Loss from utility service failure, which occurs anywhere outside the building

Front 54

How are claim disputes resolved under the worker's compensation law?

Back 54

Disagreements over claims are resolved through hearings by appointed deputy commissioners. A prescribed form of notice must be filed if an employer wishes to contest a claim of an employee within 21 days after knowledge of the injury

Front 55

not an eligibility guideline imposed by the Businessowner`s Policy for mercantile, wholesaler, service or processing risk

Back 55

Buildings or individual tenants with not over 50,000 square feet of area

Front 56

What is covered under the term "building" other than the main structure?

Back 56

Floor coverings, refrigerating, ventilating, cooking, dishwashing and laundering appliances, Additions under construction and alterations and repairs, including material, equipment, supplies and temporary structures on or within 100 feet of the premises, Personal property to service the premises including fire extinguishers and outdoor equipment

Front 57

What does the endorsement Safe Depository include?

Back 57

Named insured's legal liability of the customers' property from a safe depository; perils covered include burglary, robbery, destruction or damage

Front 58

Which type of fiduciary bond is designed for those who administer estates of deceased persons?

Back 58

Probate Bond

Front 59

Personal Liability (Section III) of a Homeowner’s policy covers which of the following?

Back 59

Bodily Injury or Property Damage caused by personal activities of the insured or family members anywhere in the world

Front 60

An insured with a commercial property form, which covers a building for $500,000 and personal property for $150,000, purchases a building and its furniture at another location. What coverage, if any, is provided by the policy for this new purchase?

Back 60

$250,000 on the building and $100,000 on its contents is automatically covered for a 30-day period.

Front 61

How may an owner or operator show financial responsibility following an accident?

Back 61

The owner or operator may post a bond or cash guaranteeing responsibility for 10/20/10 limits

Front 62

A company shipping numerous shipments by independent carrier during the year would need what kind of policy?

Back 62

Annual transit policy

Front 63

What constitutes a CPP?

Back 63

Any two or more of the following "coverage parts": Commercial Property; Commercial General Liability; Commercial Crime/Employee Dishonesty; Commercial Inland Marine; Boiler and Machinery; Commercial Auto (includes Business Auto, Garage and Truckers)

Front 64

If a flood is confined to a single premise, how many acres does it have to cover?

Back 64

2 acres

Front 65

Which perils are frequently included in Ocean Marine Insurance?

Back 65

War (to include war, an endorsement referred to as "free capture and seizure clause), Perils of the Sea (interpreted to include wind, waves, collision, stranding, sinking and other such accidents), Fire (either direct or consequential losses)

Front 66

Which of the following best defines a hazard?

Back 66

Hazards increase the chance of loss from a peril

Front 67

How would you define a personal contract in property and liability insurance?

Back 67

A loss depends upon the economic loss suffered by the person. Property and Liability insurance policies cover persons, not property or operations

Front 68

What are "lenders interests" in property insurance?

Back 68

A lender wants the protection insurance gives to them in order to make the loan, so that they are assured their loan collateral may be restored if it is damaged.

Front 69

Which of the following would be covered by the products and completed operations exposure of the CGL?

Back 69

A weed eater purchased by the claimant and being used to trim weeds at their home damages the claimant's pants.

A claimant spills hot coffee on himself or herself after driving through the drive through at the fast food restaurant

Front 70

What is agreed value coverage?

Back 70

based on the insured having 80% insured value to waive the coinsurance clause

Front 71

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

Back 71

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 72

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

Back 72

PIP coverage only applies to bodily injury and related economic loss

Front 73

What is the deductible for each accident resulting from property damage to an auto as a result of work performed by or on behalf of the insured?

Back 73

$100

Front 74

What are some of the features of the building coverage under the property form in the BOP?

Back 74

Coverage is on a replacement cost basis as long as the limit of insurance equals at least 80% of the covered property replacement

Front 75

Which type of fiduciary bond is required by persons appointed to conserve remaining assets and protect creditors?

Back 75

Insolvency Bond

Front 76

Under a Commercial Property Policy, the Legal Liability coverage does not provide coverage for the insured against damage to which type of property?

Back 76

Owned by the insured

Front 77

What coverages are included in the Electronic Data Processing coverage?

Back 77

Equipment or hardware

Extra expense to cover abnormal expenses of operating following covered damage

Data and media or software

Front 78

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

Back 78

Broad Form Products

Front 79

Under a Personal Articles Floater, a pair of antique salt and pepper shakers is insured for $1,000. When one of the shakers is damaged by a covered peril, the remaining shaker is worth only $100. The insurer will pay:

Back 79

$900

Front 80

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

Back 80

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

Front 81

How are benefits of a "Permanent Total" classification "paid" under the Worker's Compensation law?

Back 81

At 66 2/3% of the employee's average weekly wage during the period of disability without limit of time.

Front 82

At the time of a loss, it is found that the covered building had been vacant for the period of 75 consecutive days immediately preceding the loss. Which of the following perils would not be covered?

Back 82

Vandalism

Front 83

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 83

Self-Insurance Bond

Front 84

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 84

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

Front 85

Under the Commercial Property Policy, the Valuable Papers & Records coverage pays cost of research subject to a maximum of how much?

Back 85

$2,500

Front 86

Coverage B 'Other Structures' under a homeowner's policy does not cover which of the following?

Back 86

Guest house regularly rented to a friend for the summer

Front 87

The Business Owners’ Policy’s (BOP) liability coverage differs from the Commercial General Liability policy in which of the following ways?

Back 87

When a BOP policy is issued to a drug store, Professional Liability (Druggists Liability) is automatically included

If the insured does not have a Commercial Auto Policy, coverage for Auto Non- Ownership and Hired Car liability may be added by endorsement to the BOP

Coverage of BOP is an “occurrence” basis only - no claims-made option

Front 88

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

Back 88

Mysterious Disappearance

Excludes: insects and vermin, inherent vice and wear and tear

Front 89

Does Citizens provide coverage for any commercial properties?

Back 89

Citizens provides a commercial property market for condominium associations, apartment buildings, common elements of homeowner's associations and other commercial coverages for residences