Final Exam (Florida)

1. Which of the following potential risks must the policy owner face to have an insurable interest in the individual or property covered by a property insurance policy?

2. A general liability policy will respond to claims against an insured when property damage or bodily injury is the result of

3. Regarding the commercial package policy, an interline endorsement contains provisions that

4. All of the following are optional endorsements that can be added to the standard equipment breakdown coverage form EXCEPT

5. The defendant that is released on a surety bail bond is known as the

6. Which of the following insurance contract elements requires payment of premium?

7. What type of risk is wagering on a sporting event?

8. A liability policy that offers increased limits and expanded coverage over underlying casualty coverages is known as

9. What liability policy sublimit sets the maximum amount an insurer will cover for all claims resulting from a single accident?

10. Two individuals are partners in a local moving company. They own two trucks used to move the property of others. Which of the following policies should they use to insure their trucks?

11. For an extra premium, the extended coverages written on the basic form dwelling policy would pay for which of the following?

12. What statement must an insurance provider recieve before it pays benefits for a loss?

13. All of the following liability coverages are automatically included in the businessowners liability coverage EXCEPT

15. Under the personal auto policy, what coverage must an insured have for an insurer to cover transportation expenses after a vehicle sustains damage resulting from a collision?

16. Which number is the maximum amount that would be payable in the event of damage to an individual’s property in a liability policy with split limits of 25/50/25?

17. In which of the following circumstances will the Second Injury Fund pay the benefits?

18. What is an unplanned and sudden event not under the insured’s control, resulting in injury or damage that is neither expected nor intended?

19. Which of the following conditions lets the insurance provider examine the insured’s records at the end of a policy term to ensure a sufficient fee is being collected for the exposure?

20. Regarding surety bonds, which of the following statements is true?

21. The two types of compensatory damages are

22. The DP-3 form provides what kind of coverage?

23. What type of loss occurs if a fire breaks out in the kitchen and spreads upstairs to one of the bedrooms where the fire destroyed some furniture?

24. In a homeowners policy, the declarations section provides all of the following information EXCEPT

25. A policy owner has extended coverage on his dwelling that includes coverage for malicious mischief and vandalism. One night, he is sitting in his living room when he hears a crash and the sound of glass breaking. He runs to the door and discovers a brick has been thrown through his glass door. He fills out a form detailing the events leading to the loss to inform his insurance provider of a possible claim. What is this form called?

26. What must be deducted from the current replacement cost to determine the actual cash value of an insured property?

27. The home of an insured catches on fire. Consequently, the insured’s family has to stay in a motel until the home’s repairs are finished. The cost of the motel stay is a

28. How does insurance distribute the financial consequences of individual losses?

29. When an insurance provider covers the cost to exchange damaged property with new property of like kind and quality, it is called

30. The garage coverage form is written to manage the insurance needs of an insured in the business of servicing, repairing, selling, or storing automobiles. In a garage policy, which of the following coverages is NOT included?

31. A policy owner has a personal umbrella with a $2,000 self-insured retention (SIR). How much would the umbrella cover after a $12,000 personal injury liability claim, assuming no other policy is involved?

32. In an insurance application, answers to questions are called representations, which are

33. The direct, exact, uninterrupted cause of loss is called the

34. Which action constitutes acceptance if an applicant for insurance submits the initial premium with an application?

35. Because of appreciation, the insurance amount on a business is less than 80% of its actual value on the date the loss occurs. Which of the following is true?

36. Using the pro rata method, if a property is insured by Carrier A for $20,000 and Carrier B covers the same property for $40,000, how much of a $24,000 loss will Carrier A cover?

37. In a commercial package policy (CPP), which of the following is NOT a coverage component?

38. To begin coverage before a policy is issued, insurance providers can issue a/an

39. A policy owner was having a new home built. While digging the footings for the foundation, the contractor struck a solid rock formation and determined that it was necessary to blast the formation to remove the rocks. In a neighbor’s home several blocks away, the force of the blast broke several windows and some chinaware. Who covers this damage?

40. Under workers compensation statutes, medical benefits are provided

41. Under the HO-3 form, a house is insured for $200,000. Last week, the owner purchased a new home and began to move her personal property to the new residence. Last night, vandals did $8,000 of damage to the property that had been moved to her new place. Overlooking any deductible, how much will the HO-3 cover?

42. In a commercial property policy, all of the following are specific items of property not covered EXCEPT

43. A liability policy that offers coverage for an injury or damage claim only if the claim is first reported or filed against the insured during the policy period is known as the

44. Typically, a sworn statement has to be provided by the insured to an insurance company and must include information about the occurrence and the amount of indemnity claimed?

45. A provision contained in most claims-made liability policy forms that provide a stated period after the policy expiration, during which policy owners can make claims resulting from occurrences during the policy period at no additional cost, is known as the

46. Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will end

47. Regarding insurable interest, which of these is NOT an element of insurable risk?

48. When an insured and insurer could not agree on the liability loss amount after her accident, the settlement was submitted to a person whose decision was binding on both parties. What condition did the insured use?

49. Concerning the cancellation provision of a commercial insurance policy, all of the following are true EXCEPT

50. A corporate executive is accused of sexual harassment. What type of coverage would respond to this scenario?

51. In a workers compensation policy, the other states’ insurance section offers coverage

52. A structure that no one inhabits and where no property is stored is deemed

53. Which of the following describes an insurer’s responsibility for payment under a policy, as stated in the common policy provisions?

54. The federal act that gave more favorable benefits for interstate railroad workers by permitting the injured worker to sue their employer for negligence is the

55. Which of the following entities qualifies for a businessowners policy?

56. Statistical probabilities of loss for a specific class of insureds are best predicted when the insured group is

57. An insured is injured while driving her own vehicle. Which of the following coverages will cover the loss?

58. Under a personal auto policy, an insured has $5,000 of medical coverage at the time of a covered accident. The insured and three passengers were injured in the accident. The insured’s medical expenses totaled $8,000. The first passenger incurred $4,000, the second passenger incurred $6,500, and the third passenger incurred $1,200. Under the medical payment coverage, how much will the policy pay?

59. On the part of an insurance provider, which of the following is the consideration?

60. Financially restoring an insured after a claim is called

61. In which of these circumstances would a homeowners policy cover a detached garage?

62. In a personal auto policy (PAP), which of these would be covered by the medical payments coverage?

63. Under Part B – Medical Payments of a personal auto policy, all of the following will be considered the insured EXCEPT

64. A single property insurance policy that can provide coverage for one or more classes of property at multiple locations, or multiple classes of property at one location, with one total coverage amount and no single item assigned a specific coverage amount, is known as

65. The commercial crime coverage that covers losses caused by the theft of money, securities, and other property by an employee is

66. In an Inland Marine policy, under the Garment Contractor Floater, coverage while the property is in transit between the insured and the subcontractor is typically written on which basis?

67. In a Commercial Auto policy, under the Physical Damage Coverage Form, how much will an insurance provider pay to replace or repair a covered vehicle?

68. A corporation is insured under a commercial general liability (CGL) policy. It is named in a lawsuit to recover expenses for bodily injury and property damages from a claim. The insurer must provide coverage for all of the following named in the suit EXCEPT

69. Insureds covered by a Mobile Homeowners Policy move their mobile home to prevent it from being damaged by a fire. What is the maximum amount the policy will pay for this?

70. Which of the following property types is NOT moveable?

71. A policy owner’s gardener was spraying weeds on his lawn. He did not notice the wind drifting the spray into the neighbor’s yard, where he had damaged their flower bed. The policy owner was found to be legally liable for this damage. This is an example of

72. The businessowners policy (BOP) extension coverage form for personal property off-premises is limited to

73. An insurance provider’s right to take possession of the property after paying for the loss is known as the right to

74. The physical damage section of the business auto policy provides coverage for physical damage. All of the following are the types of physical damage coverage that can be selected EXCEPT

75. Which of these statements does NOT describe an endorsement?

76. On which of the following is the occurrence form trigger based?

77. Loss valuation is best described as the process of

78. An insurance policy must have all of the following to be valid EXCEPT

79. How does it affect the policy premium if an insurance policy includes the additional coverage provision?

80. Business auto coverages apply only to vehicles identified as covered autos in the Declarations by the appropriate numerical symbol. Which symbol provides the broadest coverage?

81. On a certificate of insurance, which of the following is listed?

82. The personal property off-premises extension found in dwelling forms offers limits of coverage up to

83. An insured just obtained an auto policy for her new car. She wants to know what perils are not covered. Which section of the policy should she check?

84. In the commercial property policy, the broad cause of loss form contains three perils and the basic form perils. Which of these is NOT one of the three perils found in the policy?

85. Concerning the automatic increase in an insurance endorsement in dwelling policies, which of the following is NOT true?

86. An insurance policy form that describes specifically covered perils extends what type of coverage?

87. The Fair Credit Reporting Act seeks to

88. In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT

89. Under a property policy, which of the following would be added for coverage by an endorsement?

90. A trucking company has a $1 million umbrella policy. The businessowner agrees to carry a 200/500/100 limit on auto liability and a personal liability of $400,000. Following a car accident, the business is sued. A single injured party is awarded injuries of $300,000. In actuality, the trucking company only maintained a 100/250/50 auto liability limit. What is the total amount the umbrella policy will cover?

91. Which of these refers to the termination of a policy at its expiration date by not offering a policy replacement or continuation?

92. Which of these refers to the termination of a policy at its expiration date by not offering a policy replacement or continuation?

93. Which valuation method considers what a willing buyer would pay for an insured property?

94. All of the following are excluded by the limited theft endorsement designed for a landlord EXCEPT

95. Which of the following is NOT included in a commercial package policy’s common policy declarations?

96. A policy owner’s limit of liability applies to total damages for bodily injury and property damage caused by one accident. This limit can be used in any combination of amounts, not to exceed the single limit. This policy owner has what type of limit?

97. What is the main difference between occurrence and claims-made liability policies?

98. Upon payment for a loss, the insured must surrender to the insurance provider the right to sue a negligent third party. This requirement is known as

99. For there to be a direct liability, all of the following must exist EXCEPT

100. Which part of the insurance policy explains the terms found throughout the policy?

101. Which of the following statements is correct regarding the additional debris removal coverage under the builders risk coverage form?

102. A person just applied for National Flood Insurance. How many days can that individual expect to wait before coverage becomes effective?

103. Policy limits are the maximum amount an insured can collect or for which a policy owner is protected under the terms of the

104. What term includes losses resulting from repeated or continuous exposure to conditions resulting in injury to individuals or damage to property that is neither expected nor intended?

105. Under a dwelling policy, which of the following is covered?

106. What guarantees that the information detailed in the insurance contract is true?

107. Garagekeepers insurance offers coverage for the insured’s liability for

108. Which of the following defines the procedure that insurance companies and insureds can use when they cannot agree on the value of a loss?

109. In the dwelling policy, fair rental value coverage is similar to which homeowners policy form?

110. How is the premium paid for the businessowners policy?

111. Which documents inform the insurance provider of events that can lead to a possible claim?

112. Health Maintenance Organizations are known as what type of plans?

113. When can insureds obtain insurance through a surplus lines insurer?

114. The Florida Automobile Joint Underwriting Association (FAJUA) was developed to provide

115. When a person obtains an insurance license for primarily writing insurance on themselves or for members of their immediate family or business, this is known as

116. For hurricane coverage, the duration of a hurricane ends how long after the termination of the previous hurricane watch or warning issued for any part of the state of Florida?

117. A producer likes to add additional coverages to the policies of applicants and charge them for such coverages without their knowledge. The producer is guilty of

118. An insurance provider that operates for one or more charitable, social, benevolent, educational, or religious purposes for the benefit of its members is called a

119. When canceling a policy because of nonpayment of premium, the insurance provider has to mail or deliver notice to the insured how many days before the effective date of cancellation?

120. An applicant for a single life insurance producer’s license has to complete a minimum of how many hours of pre- licensing education?

121. All of the following perils are covered in aircraft hull coverage while the aircraft is in flight EXCEPT

122. A producer who willingly misrepresents material information to induce an insured to forfeit, lapse, surrender, or change a life insurance policy or annuity has committed an illegal practice called

123. Medicare is a health insurance program for all the following individuals EXCEPT

124. According to Florida state law, coverage under a condominium unit owner’s residential property policy (HO-6) has to contain property loss assessment coverage of at least

125. Regarding the Florida Workers Compensation Joint Underwriting Association (FWCJUA), who would be assigned to Subplan C?

126. How long does the law require producers to maintain transaction records of premium payments?

127. Two individuals of the same age, health status, and life expectancy apply for insurance coverage. When the same insurance company issues the policies, the premium rates differ based on the insured’s race. This differentiation describes the practice of

128. An insurer who conducts insurance business in this state but whose articles of incorporation are registered in Canada is what type of insurer?

129. If a driver age 55 or older completes an accident prevention course, they can be eligible for a premium reduction for a maximum period of

129. If a driver age 55 or older completes an accident prevention course, they can be eligible for a premium reduction for a maximum period of

130. An individual LTC policy cannot be issued until the insurer has received from the applicant a written designation of at least

131. A producer advises an insured to replace their life insurance policy with another similar one. However, the producer advises this for the sole purpose of making a commission. What violation has the producer committed?

132. A Medicare supplement policy is required to have a free-look period of at least

133. Losses caused by all of the following perils would be covered under flood insurance EXCEPT

134. What is the gatekeeper’s purpose in a Health Maintenance Organization (HMO)?

135. Premiums collected on behalf of the insurer by an agent will be held in what capacity?

136. An agent is charged with committing a crime in another state and receives a 1- year prison sentence. Who must report the charges to the Florida Department of Insurance?

137. An example of an alien insurer transacting business in this state is one formed under the laws of

138. The Citizens Property Insurance Corporation covers the perils of

139. The statutory law defense that lessens injury and awards for proportionate damages when the plaintiff and defendant are both responsible is known as

140. The Uniform Mandatory Provision that prevents an insurer from altering its agreement with a policy owner by referring to items not found in the policy is the

141. Failing to acknowledge and act promptly upon receiving communications regarding an insurance claim violates what insurance regulation?

142. When must an insurance provider furnish proof of loss forms to an insured?

143. Rating schedules, rates, and manuals filed with the Office of Insurance Regulation for review at least 90 days before the proposed effective date are known as

144. Individuals in Florida who own a self- propelled vehicle with four or more wheels registered and licensed in the state must have continuous insurance with a minimum of $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). This requirement applies to non-residents who own and operate a vehicle and reside in Florida at least ________ of the year.

145. After a request for mediation is made, a mediation conference is required to be

146. In the state of Florida, the cost of mediation is paid by

147. Instead of assessing service charges for premium financing, an insurance producer can charge, on any unpaid balance, an annual interest rate of up to

148. What does the covered employee receive when enrolled in employer group health insurance?

149. If a producer wants to represent more than one insurance company, which of the following will be true?

150. How many days before writing limited sinkhole coverage must an insurance provider inform the Florida Office of Insurance Regulation?

151. Which of the following is a limit of liability offered as a combined single limit of coverage for all property damage and bodily injury to passengers and nonpassengers of an aircraft?

152. An insurance producer visits a prospective customer and explains the various types of policies. The client shows a lack of interest, so the producer guarantees higher dividends than they know would be possible. Which of the following terms describe what the producer has done?

153. Which of the following situations best describes a rebate?

154. Which of the following entities is regarded as the principal?

155. Before issuing insurance coverage for sinkhole losses, an insurer can require

156. The Florida Automotive Joint Underwriting Association offers coverage to individuals who cannot obtain it through the voluntary market but otherwise qualify for auto insurance with a valid driver’s license. Who must participate in this plan?

157. Coverage is provided for all of the following under the Boiler and Machinery Coverage Form EXCEPT

158. How many hours of continuing education must a producer licensed for less than six years complete every two years?

159. Which of the following would be required to become a licensed insurance producer?

160. Which of the following is NOT an example of the insurance provider’s location of incorporation?

161. Once the agent has a producer agreement with the FWCJUA, the prescribed applications can be submitted with the required deposit premiums. Coverage becomes bound at 12:01 AM after the date of receipt at the FWCJUA. The employer then receives __________, confirming the servicing carrier assigned the application.

162. If an insurer appoints a customer representative, the appointment needs to be filed with which of the following entities?

163. When an insured reinstated their major medical policy, they were involved in an accident that required hospitalization. Upon reinstatement of the policy, when would this accident be covered?

164. Which of the following meets the insured’s personal needs and is provided by nonmedical personnel?

165. Which of the following is a licensee able to write insurance business with unauthorized insurers?

166. Under which legal defense is there an allocation of damages based upon the degree of fault of each of the plaintiffs and the defendant?

167. Producers can be found guilty of defamation if they make false statements that are designed to

168. If a licensee changes their address, they must notify the Department within how many days?

169. In Florida, when mediation is requested as part of the dispute resolution procedure for settling claims, mediators are

170. A producer tells an insured that if she replaces her current policy with a newer one, dividends will be higher, and the premiums will be slightly lower. However, the policy would not offer either one of these things. What type of misrepresentation is being committed?

171. Which of these is correct regarding a fraternal benefit society?

172. Which of these periods is the general enrollment period for Medicare Part B?

173. An insured has not paid the premium on her property policy. It is well past the premium due date and grace period. The insurance provider decides to cancel the insured’s policy for nonpayment of the premium. How much notice does the insurance provider have to give the insured before the cancellation?

174. Producers in Florida are promptly required to report all of the following to the Department EXCEPT

175. Which of the following best defines the unfair trade practice of rebating?