Insurance Coverage and Exclusions, Exams of Law

Download Insurance Coverage and Exclusions and more Exams Law in PDF only on Docsity! Florida 6-20 All Lines Adjuster Test Exam New 2024 Version Best Studying Material with All Questions and Answers In the state of Florida, a Medicare supplement policy cannot limit coverage for more than ____ because of pre-existing conditions. A. one year B. three months C. six months D. 30 days ----------- Correct Answer ---------- C. six months Under Florida law, the minimum deductible allowed for comprehensive claims involving broken windshields is: A. $50 B. $100 C. $75 D. No deductible applies ----------- Correct Answer ---------- D. No deductible applies Dental expenses will be paid ---------- Correct Answer ----------- Bob has a basic health insurance policy. He has a covered accident in which he suffers an injury to his mouth that requires dental treatment. Which of the following is true? Select one: A. Dental expenses will be paid after the first $500 B. Dental expenses will not be paid C. Dental expenses will be paid after the first $100 D. Dental expenses will be paid e appointed by a company ---------- Correct Answer ----------- Which is not a requirement for licensure as an adjuster? Select one: A. Be a bonafied resident of Florida B. Be appointed by a company C. Be appointed by an office manager D. Take an approved course and pass a state exam 4 years ---------- Correct Answer ----------- If an adjuster terminates their insurance appointment, how long from the date of the termination do they have to reactivate their appointment? Select one: A. 5 years B. 4 years C. 3 years D. 1 year Under a disability income policy, the time between the beginning of a covered injury or sickness and the beginning of income payments is known as the: A. Double indemnity B. Waiting period C. Waiver of premium D. Cancellation period ----------- Correct Answer ---------- B. Waiting period Surety bonds guarantee the fulfillment of specific obligations. Each of the following may be the subject of a Surety bond, except: A. Payment of debt B. Protection of funds handled by employees C. Meeting contractual commitments D. Completing a construction job ----------- Correct Answer ---------- B. Protection of funds handled by employees Under a Surety bond, the "Principal" is the party who: A. Agrees to pay damages if default occurs B. Provides the bond in exchange for a fee C. Will be paid damages if default occurs D. Agrees to fulfill an obligation ----------- Correct Answer ---------- D. Agrees to fulfill an obligation A contractor has borrowed funds from a bank in order to finance a construction project. A Surety bond which guarantees the lender that the contractor will use the borrowed funds to finish the contract free and clear of liens is known as: A. A Performance bond B. Bid bond. C. Completion bond D. Labor and materials bond ----------- Correct Answer ---------- C. Completion bond Sue Green has a Commercial Crime Policy on her restaurant, but she only chose the insuring agreement "Inside the Premises Robbery or Safe Burglary of Other Property." If an employee steals some equipment by breaking into the premises during the daytime on a holiday, the policy would: A. Cover the loss B. Not cover the loss, since acts by employees are excluded C. Not cover the loss, since daytime burglaries are excluded D. Not cover the loss, since only loss of merchandise is covered ----------- Correct Answer ---------- B. Not cover the loss, since acts by employees are excluded Under the "Inside the Premises Theft of Money and Securities" insuring agreement of a Automatic coverage is provided for newly acquired equipment for: A. 30 days B. 60 days C. 90 days D. 120 days ----------- Correct Answer ---------- C. 90 days A steam boiler has been inspected and found to be in serious need of repairs. The inspector "red tags" the item. This means: A. A 30 day grace period is provided until repairs are made after the coverage is suspended B. Coverage is suspended until repairs are made C. The entire facility must be shut down until repairs are made D. The company will cancel the entire insurance applicable to all property insured -------- --- Correct Answer ---------- B. Coverage is suspended until repairs are made The term "undamaged stock" in Equipment Breakdown coverage refers to: A. The fact that the insurer is not liable for any damage to the stock B. The salvage value of the stock C. The reduction in the value of the stock D. Losses that are not adjusted on a replacement cost basis ----------- Correct Answer --- ------- C. The reduction in the value of the stock The BOP is designed to cover all of the following, except: A. Gas stations. B. Small apartment houses. C. Medium size clothing stores. D. An office complex with 7,500 square feet in total floor area. ----------- Correct Answer ---------- A. Gas stations. All of the following are exclusions under the standard BOP form, except: A. Governmental action. B. Building ordinance C. Earth movement. D. Transportation. ----------- Correct Answer ---------- D. Transportation. The Now Company carries a special BOP policy with a liability limit of $500,000. The company is involved in an occurrence causing $200,000 bodily injury damage and $200,000 property damage. The total amount payable as damages under the policy is: A. $100,000 B. $200,000 C. $400,000 D. $500,000 ----------- Correct Answer ---------- C. $400,000 The BOP policy form does not cover: A. Personal property of the insured B. Debris removal. C. Cracking of a steam boiler D. Personal property of others. ----------- Correct Answer ---------- C. Cracking of a steam boiler Businessowners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to: A. 10 days. B. 30 days. C. 20 days. D. 60 days. ----------- Correct Answer ---------- B. 30 days. An apartment buildings may be covered by a Businessowners Policy (BOP) if it does not have more than: A. 15,000 square feet B. 10,000 square feet C. 35,000 square feet D. 30,000 square feet ----------- Correct Answer ---------- C. 35,000 square feet Under the BOP, how much is paid for pollution clean-up and removal in case of a covered loss? A. $10,000 B. Any amount that does not exceed the limit of the policy C. 25% of the loss D. Not covered ----------- Correct Answer ---------- A. $10,000 Under the BOP, up to how many years can the insurer request the insured's books and records? A. Four years. B. Two years. C. Three years. D. Five years. ----------- Correct Answer ---------- C. Three years. Under the BOP, what does the hired and non-owned auto liability endorsement cover? A. Hired and non-owned auto coverage if the insured is not covered by a commercial auto policy. B. Owned autos that are excluded by a commercial auto policy. C. Primary coverage for an employee using their car on company business. D. Excess premises liability coverage for mobile equipment. ----------- Correct Answer --- ------- A. Hired and non-owned auto coverage if the insured is not covered by a commercial auto policy. An insured is covered under a BOP policy and has a piece of equipment insured separately under a floater policy. In case of a loss, what coverage will apply under the BOP policy? A. It policy will pay its fair percentage of the loss. B. The BOP will be excess over the floater policy. C. The loss is completely covered under the BOP. D. The loss is not covered under the BOP because it is separately insured. ----------- Correct Answer ---------- B. The BOP will be excess over the floater policy. Under the BOP, which type of business would not normally be eligible for coverage? A. A shoe store B. A hair salon C. A small manufacturer D. A doctor's office ----------- Correct Answer ---------- C. A small manufacturer The insured is covered under a BOP and sustains a direct loss to his building and contents. What is the period of time the policy provides loss of income and extra expense coverage? A. The policy pays for up to 12 months B. The policy pays for up to 6 months C. The policy pays for up to 9 months D. The policy pays for up to 14 months ----------- Correct Answer ---------- A. The policy pays for up to 12 months The BOP contains liability coverage for the insured's business. On what basis is the coverage written? A. Claims made form B. Occurrence form C. Modified claims made form D. No aggregate limit basis ----------- Correct Answer ---------- B. Occurrence form The insured carries the "open peril" BOP policy. On a weekend thieves enter the building and steal all of the merchandise in the store. What coverages would apply? A. The loss caused by burglary would not be covered. B. The loss by burglary and loss of income would apply. C. The loss of income would not apply. D. The entire loss would be denied by the insurer. ----------- Correct Answer ---------- B. The loss by burglary and loss of income would apply. B. $25,000 C. $22,500 D. $15,000 ----------- Correct Answer ---------- C. $22,500 The insured has forgotten to close an upstairs window. A strong storm blows through and wind and water severely damage the contents and floors of the dwelling. The insured carries a DP-2 dwelling form. What will be the outcome of this loss? A. The loss will be paid under the peril of wind. B. The loss will be paid on an actual cash value for the contents damage. C. The claim will be denied D. The dwelling damage is covered on a replacement cost basis if the insured carried 80% to value and the contents loss will be paid on an ACV basis. ----------- Correct Answer --- ------- C. The claim will be denied A public adjuster represents the interest of: A. The insurer B. The Insured C. The employer D. The interest of the general public ----------- Correct Answer ---------- B. The insured Which of the following is the type of report that indicates the initial results of a claim investigation? A. Field Report B. Interim Report C. Full Report D. None of the above ----------- Correct Answer ---------- A. Field Report States have adopted statutes regarding claims adjusting. To avoid unfair treatment to a claimant the adjuster must not: A. Promptly investigate the claim. B. Follow the laws regarding the number of days in which to commence an investigation. C. Deny the claim until a fair and prompt investigation has commenced. D. Pay the claim within a reasonable number of days after the final proof of loss has been received. ----------- Correct Answer ---------- C. Deny the claim until a fair and prompt investigation has commenced. Which of the following is not a claim settlement option? A. Forcing the insured to sue by offering less than the claim is worth. B. Repairing property. C. Replacing with like kind and quality. D. Replace with new ----------- Correct Answer ---------- A. Forcing the insured to sue by offering less than the claim is worth. The giving up of a known right is called: A. Estoppel B. Violation of policy conditions C. Rebating D. Waiver ----------- Correct Answer ---------- D. Waiver An innocent party relies on certain statements made by the adjuster and is damaged as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of: A. Waiver B. Estoppel C. Duties of the adjuster D. Law of contract ----------- Correct Answer ---------- B. Estoppel Should an insured fail to report a claim in a timely fashion the adjuster will usually: A. Deny the claim. B. Send the insured a reservation of rights letter. C. Cease investigating. D. Seek the advice of the company's attorney. ----------- Correct Answer ---------- B. Send the insured a reservation of rights letter. A company adjuster primarily represents the interests of: A. The insured. B. The claimant. C. The insurer. D. The public. ----------- Correct Answer ---------- C. The insurer. An adjuster's license will usually be revoked for which of the following reasons: A. Denying claims that are not covered. B. Failing to report a change of address. C. Having been convicted of a misdemeanor. D. Having been convicted of a felony. ----------- Correct Answer ---------- D. Having been convicted of a felony. The insured has been involved in an automobile accident and has sustained bodily injuries and damage to the insured vehicle. The adjuster will usually: A. Withhold any payment until all the bills have been reviewed for payment. B. Pay to repair the vehicle and pay the medical bills later. C. Pay for the repair of the vehicle and require a release for all claims. D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release. ----------- Correct Answer ---------- D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release. Mr. Jones has damaged his vehicle by striking a tree. He can: A. Take the car to a repair garage recommended by the insurer. B. Take the car to a garage of his/her choice. C. Accept the payment based on the adjuster's estimate. D. All of the above. ----------- Correct Answer ---------- D. All of the above. In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the following? A. The cost to replace the vehicle with like kind and quality if a current year model. B. Use the most recent publication of an "Official Used Car Guide". C. If not listed in the "guide", obtain quotations from automobile dealers. D. All of the above depending on the circumstances. ----------- Correct Answer ---------- D. All of the above depending on the circumstances. Which of the following is NOT a claim settlement option for liability claims? A. Lost wages B. Excessive amounts claimed C. Loss of use D. Disfigurement ----------- Correct Answer ---------- B. Excessive amounts claimed Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue? A. Scheduled Payment Release B. Full Release Settlement C. Advanced Payment D. Structured Settlement ----------- Correct Answer ---------- B. Full Release Settlement Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated? A. No Release or Walk-Away B. Rehabilitation C. Advanced Payment D. Open-Ended Release ----------- Correct Answer ---------- C. Advanced Payment Which of the following statements is correct? I. The Business Auto Policy uses 10 symbols to define covered vehicles II. Symbols 30 and 31 apply to the Garage Policy. A. I only. B. II only. C. Neither I nor II. D. Both I and II. ----------- Correct Answer ---------- D. Both I and II. D. Basic and Broad ----------- Correct Answer ---------- A. None 4. Volcanic action is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Both Basic and Broad ----------- Correct Answer ---------- D. Both Basic and Broad Sprinkler leakage is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above ----------- Correct Answer ---------- D. All of the above All of the following provide an additional amount of insurance under the Commercial Building and Personal Property form, except: A. Lottery Tickets B. Newly acquired property C. Property off-premises D. Outdoor Property ----------- Correct Answer ---------- A. Lottery Tickets Which of the following forms cover flood and earthquake damage? A. Building and Personal Property form B. Special form C. Broad form D. None of the above ----------- Correct Answer ---------- D. None of the above The Earthquake and Volcanic Eruption endorsement provides coverage: A. Against earthquake from volcanic eruption B. For commercial buildings and other covered property when used in conjunction with another Cause of Loss forms C. For damage caused by shocks that occur within 168-hours after policy expiration if these shocks began during the policy period D. All of the above ----------- Correct Answer ---------- D. All of the above The Commercial Building and Personal Property Coverage form excludes all of the following types of property, except: A. Securities B. Property of others in the insured's care, custody and control C. Land D. Patios or other paved surfaces ----------- Correct Answer ---------- B. Property of others in the insured's care, custody and control Under the Commercial Building and Personal Property form, coverage for the "building" includes: A. Additions and extensions to the building B. Property used to service the building C. A heating system D. All of the above ----------- Correct Answer ---------- D. All of the above Under the Commercial Building and Personal Property form, coverage for "business personal property" includes: A. Furniture B. Machinery C. Stock D. All of the above ----------- Correct Answer ---------- D. All of the above Sinkhole collapse is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above ----------- Correct Answer ---------- D. All of the above A building valued at $100,000 was insured for $80,000 with a policy containing 80% Coinsurance clause. Disregarding any deductibles, what would the company pay on a $20,000 loss? A. $7,500 B. $5,000 C. $15,000 D. $20,000 ----------- Correct Answer ---------- D. $20,000 All of the following are excluded under the Commercial Building and Personal Property form, except: A. Furniture and fixtures. B. Petty cash and IOUs. C. A watch dog. D. The insured's panel truck. ----------- Correct Answer ---------- A. Furniture and fixtures. Which of the following is not covered property under a Commercial Property form? A. Accounts, bills and currency. B. Animals not held for sale. C. Cost of foundations. D. All of the above. ----------- Correct Answer ---------- D. All of the above. The insured has transported a portion of his property to an exhibition trade show. It is destroyed by a fire. What coverage would apply? A. Property off the premises is not covered B. Fire is not covered for this exposure C. A limit of $10,000 would apply to cover the loss D. Special coverage would have to be purchased to cover property off the premises ----- ------ Correct Answer ---------- C. A limit of $10,000 would apply to cover the loss The deductible under the revised Commercial Property forms is: A. $500 B. $1,000 C. $250 D. $750 ----------- Correct Answer ---------- A. $500 The insured has suffered a loss as the result of a cracked steam boiler. What coverage would apply under the Commercial Property Cause of Loss forms? A. The loss would be covered B. The loss is not covered C. Only part of the loss is covered D. Covers only the extra expense in replacing the boiler ----------- Correct Answer --------- - B. The loss is not covered Before legal action may be taken against an insurer, an insured must have complied with all terms of the policy. Any legal action must begin within ____ following a loss. A. 6 months B. 5 years C. 2 years D. 12 months ----------- Correct Answer ---------- C. 2 years If the civil authority blocks access to the insured's premises because of a covered peril that has damaged a building down the street, what period of time will the Business Income forms pay the insured for loss of income at his/her premises? A. One week B. Two consecutive weeks C. Four consecutive weeks D. Three consecutive weeks ----------- Correct Answer ---------- C. Four consecutive weeks Under the Condominium Association form, coverage is based on: A. The Commercial Property form B. The association agreement and bylaws C. The Special Cause of Loss form D. State and local ordinances ----------- Correct Answer ---------- B. The association agreement and bylaws What is generally excluded on the Condominium Commercial Unit-Owners form? A. The improvements and betterments of the unit-owner B. Hostile fire damage D. Cannot exclude passenger liability ----------- Correct Answer ---------- C. Liability to passengers is treated as a separate exposure Which of the following is not covered under aircraft hull insurance? A. Personal effects B. Fuselage C. Wheels D. Propeller ----------- Correct Answer ---------- A. Personal effects Common carriers are responsible for damage to customer goods they transport except for damage resulting from: A. Acts of God B. Traffic Accidents C. Load shifting D. Poor vehicle maintenance ----------- Correct Answer ---------- A. Acts of God Which of the following commercial inland marine coverage forms covers sums due the insured from customers which are uncollectible due to loss or damage of records? A. Equipment dealers B. Electronic data processing C. Valuable papers and records D. Accounts receivable ----------- Correct Answer ---------- D. Accounts receivable The Commercial Inland Marine coverage form "jeweler's block" excludes loss resulting from: A. Earthquake B. Shortage found upon taking inventory C. Unexplained disappearance D. All of the above ----------- Correct Answer ---------- D. All of the above The Commercial Inland Marine coverage form "valuable papers and records" includes coverage for: I. Money and securities II. Deeds, drawings and maps III. Books, files and mortgages A. I and II B. I and III C. II and III D. II only ----------- Correct Answer ---------- C. II and III The ______is an ideal form of protection for the frequent shipper of goods. A. Trip transit policy B. Annual transit policy C. Monthly transit policy D. Common Carrier motor truck cargo policy ----------- Correct Answer ---------- B. Annual transit policy Mr. Jones owns a jewelry store. His wife takes a very valuable necklace and wears it to a party. It is stolen. How will the jeweler's block policy respond to cover this loss? A. The policy will cover the loss. B. The loss will be denied C. The policy will pay the loss on an actual cash value basis D. The policy will pay replacement cost less depreciation ----------- Correct Answer ------- --- B. The loss will be denied XYZ Road Construction Company has a fleet of equipment that consists of bulldozers, backhoes, and road scrapers. The owner desires physical damage coverage to cover the equipment. Which of the following types of insurance contracts would be appropriate to provide the proper coverage? A. Commercial property coverage B. General liability coverage C. Auto physical damage coverage D. Contractors equipment floater ----------- Correct Answer ---------- D. Contractors equipment floater Savage Construction Company has delivered and installed a large boiler in a commercial building. The owner has not yet accepted nor paid for the work. What type of policy should Savage Construction purchase to cover the work until accepted? A. Builders risk B. Installation floater C. Dealer floater D. Transportation floater ----------- Correct Answer ---------- B. Installation floater Community Cleaners is a new dry cleaning and laundry service business. They have vehicles that pick up customer's property to be processed and then delivered back to the customer. What type of policy would you recommend they purchase to cover the customer's property? A. A business owners policy B. A commercial property policy C. A bailee policy D. A trip transit policy ----------- Correct Answer ---------- C. A bailee policy Global Electronics has a large piece of equipment that needs to be transported from their plant to their customer. They are using a rented U-Haul truck and one of their drivers is to make the delivery. What type of policy would be needed to cover this one time trip exposure? A. A trip transit policy B. An annual trip policy C. Motor truck cargo D. Bailee policy ----------- Correct Answer ---------- A. A trip transit policy The Equipment Dealers Form covers all of the following types of property, except: A. A farm tractor B. A Snow removal truck C. A customer's bulldozer in the insured's repair shop D. An inventory of hats and jackets ----------- Correct Answer ---------- B. A Snow removal truck Which of the following statements regarding the Equipment Dealers Form is incorrect? A. Coverage is on an "open peril basis" B. Coverage applies on a world wide basis C. Contractor's equipment can be covered D. Covers similar property owned by others and on the insured premises ----------- Correct Answer ---------- B. Coverage applies on a world wide basis In crime insurance, all of the following situations would be considered theft, except: A. A store's year-end inventory coming up short by 5%. B. Merchandise being stolen with evidence of forced entry. C. A clerk witnessing a customer shoplifting merchandise. D. A clerk being robbed at gunpoint. ----------- Correct Answer ---------- A. A store's year- end inventory coming up short by 5%. A prospective insured wishes to protect her firm against criminals taking money from a messenger going from the firm to a bank. In this situation, the prospect should purchase coverage for: A. Fidelity B. Robbery C. Assault D. Burglary ----------- Correct Answer ---------- B. Robbery Under a Fidelity Bond, which of the following parties receives protection? A. A subcontractor B. An employee C. An employer D. A creditor ----------- Correct Answer ---------- C. An employer Which of the following losses would be covered under a Robbery and Safe Burglary coverage? B. 60 days C. 30 days D. 90 days ----------- Correct Answer ---------- C. 30 days The standard deductible for the Regular Program under a Flood Insurance policy is: A. $1,000 B. $250 C. $750 D. $500 ----------- Correct Answer ---------- A. $1,000 Which of the following is not covered under the Flood Insurance policy? A. Livestock B. Motor Vehicles C. Outdoor Swimming Pools D. All of the above ----------- Correct Answer ---------- D. All of the above What forms the basic eligibility requirements for all of the residual markets in Florida? A. Location B. Construction of the risk C. Fire protection of the risk D. Risk is unable to find a market for the required coverage. ----------- Correct Answer --- ------- D. Risk is unable to find a market for the required coverage. Which of the following must occur before a risk is eligible for the Florida Workers Compensation Joint Underwriting Association? A. The risk has suffered heavy losses B. The cost of the current rates are prohibitive C. The employer has been declined by at least two carriers D. None of the above ----------- Correct Answer ---------- C. The employer has been declined by at least two carriers _______ limit an insurer's liability. A. Provisions B. Reinstatements C. Exclusions D. None of the above ----------- Correct Answer ---------- C. Exclusions What is Florida's law pertaining to mechanical breakdown coverage limits? A. Minimum deductible is $250 B. Coverage must be on an "all risk" basis C. Flood coverage must be included D. None of the above ----------- Correct Answer ---------- D. None of the above The stacking of uninsured motorist (UM) limits in Florida is subject to choices made by the insured. Those choices are: A. The insured can reject the coverage B. The insured can elect lower limits than his/her liability coverage C. The insured can elect "non-stacked" UM coverage D. All of the above ----------- Correct Answer ---------- D. All of the above A ______ health policy affords the greatest degree of continued protection to an insured. A. Guaranteed renewable B. Non-cancellable C. Optionally renewable D. Conditionally renewable ----------- Correct Answer ---------- B. Non-cancellable Which of the following would not be a basis for the avoidance of performance in a claim adjustment? A. Investigating a claim that might be covered B. Allowing an insured to profit from an intentional claim C. Paying a claim on a vehicle loaded with illegal drugs D. An insured is guilty of concealment, fraud or misrepresentation ----------- Correct Answer ---------- A. Investigating a claim that might be covered Churning is best described as: A. Failing to pay a claim due to late reporting B. Forcing the insured to accept less than the claim is worth C. Using policy values in an existing life policy to purchase additional coverage with the same company for the purpose of earning additional compensation D. Churning is not considered an unfair or deceptive practice. ----------- Correct Answer - --------- C. Using policy values in an existing life policy to purchase additional coverage with the same company for the purpose of earning additional compensation In Florida, the death benefit under personal injury protection (PIP) is: A. $1,000 B. $2,000 C. $5,000 D. $2,500 ----------- Correct Answer ---------- C. $5,000 A person sustains $4,000 in medical expenses and $5,000 for lost wages under PIP. This person dies as a result of his injuries. How much death benefit would be paid? A. $10,000 B. $5,000 C. $1,000 D. $2,500 ----------- Correct Answer ---------- C. $1,000 A(n) _____ is a group of hospitals and physicians who have joined together in an effort to reduce medical costs. A. HMO B. PPO C. Medicare Supplement D. None of the above ----------- Correct Answer ---------- B. PPO Under what circumstances would PIP coverage not be considered primary coverage? A. The "at fault" drivers does not have auto coverage. B. Workers compensation coverage is applicable to the claim. C. Medical insurance is in force. D. Disability income coverage is in force. ----------- Correct Answer ---------- B. Workers compensation coverage is applicable to the claim. Florida statues provide that any person who is damaged by certain insurer practices is granted a right to sue the insurer for damages. Which one of the following would not apply? A. Not attempting in good faith to settle claims when it could and should have done so. B. Refusing to pay an uncovered claim. C. Making claim payments to insureds that are not accompanied by a statement setting forth the coverage under which payments are being made. D. Failing to promptly settle non-liability claims under one portion of coverage, where the obligation has become reasonably clear, in order to influence settlements under other portions of coverage. ----------- Correct Answer ---------- B. Refusing to pay an uncovered claim. Which of the following is not considered a person that is transacting insurance and therefore not required to be licensed? A. A clerical employee who performs routine filing duties for an insurance company. B. An attorney who assists in settling claims. C. A claims adjuster D. An employee who quotes insurance premiums. ----------- Correct Answer ---------- A. A clerical employee who performs routine filing duties for an insurance company. All the following are correct regarding the continuing education requirements to maintain a license in Florida, except: A. Licensees must complete 24 hours of continuing education every two years. B. The hours required must include five hours of ethics and law. C. Excess hours may be carrier over to the next compliance period. D. The law requires that adjusters must complete three hours of basic claims handling. - ---------- Correct Answer ---------- D. The law requires that adjusters must complete three hours of basic claims handling. The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as: A. Twisting. B. Rebating. C. Defamation. D. Misrepresentation. ----------- Correct Answer ---------- A. Twisting. An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of: A. Twisting. B. Unfair Claim Settlement Practices. C. A felony. D. Misrepresentation. ----------- Correct Answer ---------- B. Unfair Claim Settlement Practices. An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be guilty of: A. Unfair Claim Settlement Practices. B. Misrepresentation and False Advertising. C. Defamation. D. Coercion. ----------- Correct Answer ---------- B. Misrepresentation and False Advertising. Should an agent or adjuster have a change of address, the obligation to notify the Insurance Department lies with: I. The company that employs the adjuster or company that appoints the agent. II. The licensee. III. The licensee's supervisor. A. I and II. B. I only. C. II only. D. I, II, and III. ----------- Correct Answer ---------- C. II only. An incorporated insurance company with its capital divided into shares is the definition of: A. A Mutual Company. B. A Domestic Company. C. A Stock Company. D. A Foreign Company. ----------- Correct Answer ---------- C. A Stock Company. The Insurance Department has been advised that an agent is guilty of an insurance code violation. The Commissioner will: A. Call for a hearing. B. Revoke the license pending a hearing. C. Revoke the license. D. Fine the agent's insurance company. ----------- Correct Answer ---------- A. Call for a hearing. Which of the following would be considered an Unfair Trade Practice? A. Twisting B. Rebating C. Coercion D. All are Unfair Trade Practices ----------- Correct Answer ---------- D. All are Unfair Trade Practices Which of the following is NOT considered to be an unfair claims practice? A. Misrepresenting pertinent facts or uninsured policy provisions relating to coverages at issue. B. Refusing to pay claims without conducting a reasonable investigation based upon all available information. C. Attempting to settle claims on the basis of an application that was altered without notice to or the knowledge of the insured. D. Failing to honor an uncovered claim. ----------- Correct Answer ---------- D. Failing to honor an uncovered claim. Although their liability is clear, BB&S Insurance Company routinely delays all claim payments for 90 days, and in doing so: A. Avoids a lot of little nuisance claims. B. Substantially eliminates fraudulent claims. C. Is guilty of an unfair claim settlement practice. D. Avoids any acts of illegal discrimination between claimants. ----------- Correct Answer ---------- C. Is guilty of an unfair claim settlement practice. Which of the following would be considered unfair or deceptive acts by an adjuster? A. Requesting that a first party claimant signs a release that extends beyond the subject matter which gave rise to the claim payment. B. Advising the claimant that their rights may be impaired if a form of release is not completed within a specified period of time unless for the purpose of notification of statute of limitations. C. Issuing a check or draft, in partial settlement of a loss or claim under specific coverage that contains language that releases the insurer or insured from total liability. D. All of the above. ----------- Correct Answer ---------- D. All of the above. An act of terrorism must be "certified" to be such an act by: A. The President of the United States. B. The Senate C. The House of Representatives. D. The Secretary of the Treasury. ----------- Correct Answer ---------- D. The Secretary of the Treasury. :All of the following events are considered acts of terrorism, except: A. Acts of riot and civil commotion B. Acts considered dangerous to human life, property or infrastructure. C. Acts resulting in damage within or outside the United States. D. Acts committed at the premises of any United States mission. ----------- Correct Answer ---------- A. Acts of riot and civil commotion In order to be certified as an act of terrorism under the Federal Terrorism Act, property and casualty losses must exceed ____ for any one event: A. $500,000 B. $1,000,000 C. $3,000,000 D. $5,000,000 ----------- Correct Answer ---------- D. $5,000,000 None of the following can be covered by the Federal Terrorism Act insurance program, except: A. Most commercial property and casualty risks. B. Federal crop insurance. C. Personal insurance policies. D. Health and life insurance policies. ----------- Correct Answer ---------- A. Most commercial property and casualty risks. No act will be certified by the Secretary as an act of terrorism under the Federal Terrorism Act if: A. The act is not committed as part of the course of war declared by Congress. B. The act is one of terrorism as defined by the Act. C. The losses that occur relate to commercial property risks. D. The losses that occur relate to life insurance. ----------- Correct Answer ---------- D. The losses that occur relate to life insurance. All of the following are considered acts of rebating, except: A. An agent provides an all-expenses paid cruise to a client and his wife in exchange for writing the coverage on his national chain of restaurants. B. An agent sends holiday greeting cards to all the clients on his mailing list. C. An adjuster receives a monthly check from an auto body repair shop for recommending the repair shop to clients who have a claim. D. All of these situations are considered acts of rebating. ----------- Correct Answer ------- --- B. An agent sends holiday greeting cards to all the clients on his mailing list. Under the extension of the Terrorism Risk Insurance Act the federal government will share in the losses for a certified act of terrorism if: A. Total losses for all insurers exceed $100 million dollars D. Property awaiting auction is never covered ----------- Correct Answer ---------- A. The loss is not covered An insured owns an expensive rare painting. He has it appraised by an art dealer and has it insured for $50,000 under a Personal Articles Floater. There is a market decline for this item. It is destroyed in a fire at his office. The company offers him $40,000 which is the current market value. Which of the following is true regarding this loss? A. It will not be covered since it is away from the insured's residence B. It will be covered for the full $50,000 amount C. The company is correct in offering fair market value at the time of the loss D. The company will ask for a reevaluation of the item based records and documentation of his cost, the current market value and the appraised value ----------- Correct Answer ---------- B. It will be covered for the full $50,000 amount The daughter of an insured is attending college and her family carries a Tenant's Homeowner policy HO-4 with $50,000 contents coverage. The daughter has about $15,000 of personal belongings consisting of clothing, musical instruments and electronic equipment, some appliances and other personal items. Which form would be used to cover her property exposures? A. Personal Effects Floater B. Personal Articles Floater C. Personal Property Floater D. The Homeowner Form ----------- Correct Answer ---------- C. Personal Property Floater John and Susan have a Homeowner policy with a $5,000 deductible. John has purchased some expensive camera equipment to take on a cruise for recording their trip. Special scuba gear and sportswear have also been purchased for both. They are concerned about fire and theft. What coverage would you recommend? A. Personal Articles Floater B. Personal Property Floater C. Personal Effects Floater D. Reduce the Homeowner deductible temporarily ----------- Correct Answer ---------- C. Personal Effects Floater An insured has her fur coat specifically covered under a Personal Articles Floater. It has been stored in a plastic garment bag in her closet during the good weather months. She decides to take the coat out and hang it outside to freshen up. The next door neighbor's dog sees the coat and attacks it and ruins the garment. The insurer will: A. Decline the claim because damage by domestic animals is excluded B. Decline the claim because damage by any animal is excluded C. Pay the claim because the loss is not excluded D. Deny the claim because of neglect on the part of the insured ----------- Correct Answer ---------- C. Pay the claim because the loss is not excluded The insureds are retired and do not own a home. They live and travel extensively in their motor home. To cover their personal items which of the following would you suggest they purchase? A. Personal Effects Floater B. Personal Articles Floater C. Personal Property Floater D. Both the Personal Property Floater and the Personal Articles Floater ----------- Correct Answer ---------- D. Both the Personal Property Floater and the Personal Articles Floater An insured has an extensive gun collection. Which of the following would not cover his collection in case of a flood? A. The Personal Articles Floater B. The Personal Effects Floater C. The Personal Property Floater D. None of the forms would cover flood ----------- Correct Answer ---------- C. The Personal Property Floater In Ocean Marine Insurance, which of the following is considered the most important implied warranty? A. Seaworthiness B. Condition of the cargo C. Legality D. All of the above ----------- Correct Answer ---------- A. Seaworthiness 2. In Ocean Marine Insurance, the term "average" means: A. The ACV of the ship B. The annual premium for the insurance policy C. Loss or damage D. That coverage is written on a named peril basis ----------- Correct Answer ---------- C. Loss or damage Protection and Indemnity Coverage contained in an Ocean Marine policy covers: A. Liability against injuries to seamen. B. Injury to stevedores, longshoreman and harbor workers C. Cargo, if lost or damaged through negligence D. All of the above ----------- Correct Answer ---------- D. All of the above Protection and Indemnity Coverage contained in an Ocean Marine policy covers: A. Guarantees the purpose of the voyage B. Loss of the shipper' fees. C. Marine legal liability for damages caused by the ship D. Damage to another vessel caused by collision ----------- Correct Answer ---------- C. Marine legal liability for damages caused by the ship Although Ocean Marine Hull and Cargo coverages are usually written on an open peril basis, they exclude losses caused by inherent vice. The term "inherent vice" means: A. The potential of property to self-destruct. B. Negligence by masters or members of the crew. C. Losses caused by the dishonesty of crewmembers. D. Any loss resulting from illegal activities. ----------- Correct Answer ---------- A. The potential of property to self-destruct. In Ocean Marine Insurance, what is the purpose of the IVEL clause? A. To pay for the loss of shipper's fees B. To require the insured to take all reasonable steps to protect the property from further loss. C. To provide excess hull and collision liability coverage D. To cover bulk shipments ----------- Correct Answer ---------- C. To provide excess hull and collision liability coverage What is meant by "break bulk" cargo? A. Cargo shipped in a tanker ship B. Cargo that is loosely packed such as ores C. Loose cargo such as cartons D. Containerization cargo ----------- Correct Answer ---------- C. Loose cargo such as cartons Which of the following is not essential in determining if a salvage award is to be made? A. Life-saving efforts B. The property involved must be in peril from some hazard C. The salvage service must be voluntary D. The effort must be successful ----------- Correct Answer ---------- A. Life-saving efforts What is the purpose of freight insurance? A. Covers loss to the cargo B. Covers shipper fees C. Covers the insurable interest of the shipper due to jettison of the cargo D. Covers the cargo until it reaches the warehouse ----------- Correct Answer ---------- B. Covers shipper fees In case of a loss, how many days' notice does the insured have after notification of a claim to submit the claim to the underwriters of the Ocean Marine coverage? A. 90 days B. 60 days C. 180 days carries auto limits less than the financial responsibility of the state in which the insured was injured. C. Provide coverage for the insured when the at-fault driver carries less coverage than that needed to pay for the insured's injuries. D. Provide coverage when the at-fault driver's insurance company denies the claim. ----- ------ Correct Answer ---------- C. Provide coverage for the insured when the at-fault driver carries less coverage than that needed to pay for the insured's injuries. An uninsured motor vehicle includes: A. An insured vehicle whose insurer denies coverage. B. An insured vehicle whose insurer becomes insolvent. C. A "hit and run" vehicle. D. All of the above. ----------- Correct Answer ---------- D. All of the above. The PAP Medical Payments cover: A. The insured as driver. B. A passenger. C. The insured as pedestrian. D. All of the above. ----------- Correct Answer ---------- D. All of the above. Under the PAP Medical Payments, the time limit for incurring medical expenses is: A. 6 months. B. 1 year. C. 2 years. D. 3 years. ----------- Correct Answer ---------- D. 3 years. The PAP liability coverage excludes all of the following, except: A. Intentional injury. B. Damage to insured property. C. Damage to property of others in the insured's care. D. Damage to property of others due to the insured's motor vehicle negligence. ----------- Correct Answer ---------- D. Damage to property of others due to the insured's motor vehicle negligence. All of the following are considered insureds under the PAP, except: A. Any person using the insured auto. B. A family member using the insured auto. C. Any organization the insured represents. D. Any person using an auto not owned by the insured. ----------- Correct Answer --------- - D. Any person using an auto not owned by the insured. An auto liability policy with split limits of 15/30/5 would pay what maximum amount in the event of a covered bodily injury loss to three people? A. $5,000 B. $15,000 C. $30,000 D. $45,000 ----------- Correct Answer ---------- C. $30,000 An auto liability policy with split limits of $10/20/5 would pay how much in the event of a $10,000 loss to the other person's damaged vehicle? A. $0 B. $5,000 C. $10,000 D. $20,000 ----------- Correct Answer ---------- B. $5,000 An auto liability policy with a single limit of $30,000 would pay which of the following amounts in the event of a $10,000 loss to the insured vehicle and a $25,000 bodily injury settlement to a third party? A. $10,000 B. $25,000 C. $30,000 D. $35,000 ----------- Correct Answer ---------- B. $25,000 Under the PAP, a covered auto includes all of the following, except: A. Temporary substitute B. Non-owned auto C. Private passenger auto listed in the Declarations D. An owned trailer ----------- Correct Answer ---------- B. Non-owned auto Leased vehicles can be covered under the PAP if they are leased for a minimum of: A. 30 consecutive days. B. 60 consecutive days. C. 6 consecutive months. D. 1 year. ----------- Correct Answer ---------- C. 6 consecutive months. A deer crashes into the side of the insured's car. Which of the following PAP coverages would cover this damage? A. Property damage liability. B. Collision. C. Uninsured motorist property damage. D. Comprehensive. ----------- Correct Answer ---------- D. Comprehensive. Which of the following would be covered under a PAP? A. A truck the insured rented that is over 10,000 gross vehicle weight. B. A three wheeled vehicle used in a medical emergency. C. A motor cycle. D. A large rented motor home. ----------- Correct Answer ---------- B. A three wheeled vehicle used in a medical emergency. An uninsured motorist vehicle under the Personal Auto Policy includes all of the following, except: A. Hit and run vehicle whose driver cannot be identified. B. A vehicle newly acquired by the named insured. C. A vehicle insured by the company that is insolvent. D. A vehicle to which no liability bond or insurance policy provides coverage at the time of the accident. ----------- Correct Answer ---------- B. A vehicle newly acquired by the named insured. What is the limit for damage to a non-owned trailer under the Personal Auto Policy? A. $500 B. $1,000 C. $1,500 D. $2,000 ----------- Correct Answer ---------- C. $1,500 All of the following are covered under Coverage A of a Homeowner Policy, except: A. Attached garage. B. Construction materials used in building an addition to the dwelling. C. Detached garage. D. A central air conditioning system. ----------- Correct Answer ---------- C. Detached garage. The type of coverage on contents provided by the HO-3 is: A. Open perils. B. Named perils. C. Basic form. D. Comprehensive. ----------- Correct Answer ---------- B. Named perils. Under the Homeowner Policy, theft coverage does not cover theft of property: A. Committed by the insured. B. From a dwelling under construction. C. From the residence of the insured's tenant. D. None of the above are covered. ----------- Correct Answer ---------- D. None of the above are covered. An apartment dweller would be in the market for a: A. H0-2 B. H0-3 C. H0-4 D. H0-6 ----------- Correct Answer ---------- C. H0-4 The personal liability coverage for Mr. Jones' Homeowner Policy would cover Jones if: A. His dog bit his neighbor on the nose. B. His 14-year-old son burned down his house. C. He negligently bumped into his son while running to work. Watercraft excluded from coverage under Section II of the Homeowner Policy includes all of the following, except: A. Inboard owned by the insured. B. Outboard owned by the insured of 25 horsepower. C. 30-foot sailboat rented to the insured. D. Inboard-outboard of 80 HP owned by the insured. ----------- Correct Answer ---------- B. Outboard owned by the insured of 25 horsepower Under the Damage to Property of Others coverage of a Homeowner Policy, section II, property damage caused intentionally by an insured is excluded if the insured is: A. 13 years old. B. 18 years old. C. 21 years old. D. Any of the above. ----------- Correct Answer ---------- D. Any of the above. Under Section II - Additional Coverages of the Homeowner Policy, the insurer agrees to pay: A. The cost of a legal defense. B. Premiums on bonds connected with liability suits. C. Investigation cost. D. All of the above. ----------- Correct Answer ---------- D. All of the above. A condominium owner-occupant would be in the market for a: A. HO-2. B. HO-3. C. HO-4. D. HO-6. ----------- Correct Answer ---------- D. HO-6. A Homeowner Policy can be purchased by: A. A person buying a home under the installment plan. B. An individual who owns a home under the course of construction. C. The owner of a seasonal dwelling who is insured under a Homeowner Policy for her primary dwelling. D. All of the above. ----------- Correct Answer ---------- D. All of the above. A homeowner has a fire that totally destroys a $200 typewriter before the fire is extinguished. If the fire coverage on contents contains a $250 deductible, the insured will receive: A. $200 B. $50 C. $250 D. $ 0 ----------- Correct Answer ---------- D. $ 0 The limit of liability of any property insurance contract in a given loss is the: A. ACV settlement. B. RC settlement. C. Policy limits. D. Market Value. ----------- Correct Answer ---------- C. Policy limits. Methods of risk management include: A. Transfer B. Sharing C. Avoidance D. All of the above. ----------- Correct Answer ---------- D. All of the above. An insured has suffered a fire loss to his or her dwelling. This insured is which party to the claim? A. Third party B. First party C. Second party D. Loss payee ----------- Correct Answer ---------- B. First party Mr. Jones, a pedestrian, was injured by Mr. Smith while driving his vehicle. Mr. Smith is insured by I Am Bogus Insurance Company. The insurance company would be which party to the claim? A. First party since it is the one that has to pay. B. The second party. C. The third party. D. Guarantor ----------- Correct Answer ---------- B. The second party. Which of the following is NOT included in the declarations section of an insurance contract? A. The identity of the named insured. B. The policy period. C. The covered perils. D. The policy premium. ----------- Correct Answer ---------- C. The covered perils. Which of the following is the section of an insurance contract that contains the provisions, rules of conduct, duties, and obligations of the parties? A. The Insuring Agreement. B. The Conditions. C. The Exclusions. D. The Limitations. ----------- Correct Answer ---------- B. The Conditions. A loss that is a direct consequence of a particular peril is called a(n): A. Indirect loss. B. Peril. C. Hazard. D. Direct loss. ----------- Correct Answer ---------- D. Direct loss Which of the following is a clause in property and casualty contracts which states that if policy or endorsement forms are broadened and no additional premium is required, then all existing similar policies or endorsements will be construed to include the broadened coverage? A. Liberalization B. Assignment C. Binder D. Coinsurance ----------- Correct Answer ---------- A. Liberalization Which of the following provides written evidence of coverage pending the issuance of a policy? A. Cause of Loss form B. Assignment C. Binder D. Blanket coverage ----------- Correct Answer ---------- C. Binder Which of the following is an example of a Loss Evaluation Method? A. Liberalization B. Cause of Loss form C. Stated amount D. Conditions ----------- Correct Answer ---------- C. Stated amount The cost of replacement minus depreciation is the definition of: A. Valued Policy B. Market Value C. Replacement Cost D. Actual Cash Value ----------- Correct Answer ---------- D. Actual Cash Value Which of the following is a method of requiring the insured to insure at least 80% of the value of the covered commercial property? A. Cause of Loss form B. Standard Mortgage clause C. Loss Payable clause D. Coinsurance clause ----------- Correct Answer ---------- D. Coinsurance clause Which of the following is a basis for insuring property that allows the insured to report the value of the building contents to the insurance company on a monthly basis? A. Blanket Basis B. Reporting Form C. Specific Basis D. Agreed Value ----------- Correct Answer ---------- B. Reporting Form When there is an unbroken connection between an occurrence and the damage that arises from the occurrence, and all the resulting damage happened on account of that occurrence, this is known as? ---------- Correct Answer ----------- The principle of proximate cause Consideration must be given to at least one party ---------- Correct Answer ----------- characteristics of a contract When two or more policies apply to the same loss, the one that pays first is called? ------ ---- Correct Answer ----------- Primary The clause that protects the lender in a real property policy is the? ---------- Correct Answer ----------- Mortgagee Clause The concept that one should not profit from the payment provided by an insurance policy is known as? ---------- Correct Answer ----------- Indemnity Payment the insurance company makes directly to the insured is? ---------- Correct Answer ----------- Property or first-party insurance To be considered an insurance contract, a policy must be? ---------- Correct Answer ------ ----- Written When the insured transfers his/her rights to collect for damages to the insurer, it is known as? ---------- Correct Answer ----------- Subrogation If an insurance policy is unclear or ambiguous, in whose favor does the policy respond? ---------- Correct Answer ----------- The insured A partial owner of a building cannot receive full value for the building in the event of a loss because of? ---------- Correct Answer ----------- Insurable interest Reduces the insured's damages by the degree of negligence ---------- Correct Answer --- -------- Comparative negligence Exclusions, Declarations and Endorsementd ---------- Correct Answer ----------- the following are part of an insurance policy replacement cost minus depreciation ---------- Correct Answer ----------- ACV The Florida Valued Policy Law requires the insurer to pay $200,000 ---------- Correct Answer ----------- The insured's house is totally destroyed in a fire. The house is insured for $200,000. The adjuster who investigates the claims determines the ACV of the home is $185,000. No payment is made until the loss equals or exceeds the amount of the deductible and then the loss is paid in full ---------- Correct Answer ----------- describe a franchise deductible Private ---------- Correct Answer ----------- All of the following are characteristics of an insurance contract EXCEPT? Personal, Private, Conditional, Adhesion? Only meet with the client when the attorney is present ---------- Correct Answer ----------- If a claimant is represented by an attorney, the adjuster should? claims information ---------- Correct Answer ----------- Adjusters should advise claimants on? Written ---------- Correct Answer ----------- An adjuster is required to notify a claimant when a claim is denied. The notification must be? service to others, personal respect and proper mode of conduct ---------- Correct Answer ----------- The term ethics refers to? third party claim ---------- Correct Answer ----------- When an adjuster deals with a claimant who is not a policyholder, this claim is known as an? Decision-making ---------- Correct Answer ----------- The successful adjuster/negotiator should understand that communication includes all of the following EXCEPT? Select one: A. Verbal and non-verbal messages B. Questioning C. Listening D. Decision-making Counseling ---------- Correct Answer ----------- Which of the following is not a duty of the claims adjuster? Select one: A. Investigating B. Evaluating C. Negotiating D. Counseling Fiduciary ---------- Correct Answer ----------- The adjuster's duty to the insurer is best described as? Select one: A. Friendly B. Factual C. Fun D. Fiduciary Both unethical behavior and lack of knowledge or information are correct ---------- Correct Answer ----------- Errors and Omissions claims are a result of? Select one: A. unethical behavior B. lack of knowledge or information C. Both unethical behavior and lack of knowledge or information are correct D. Neither unethical behavior and lack of knowledge or information are correct All of the above ---------- Correct Answer ----------- Unethical behavior affects? Select one: A. The claimant B. The adjuster C. All of the above D. The entire company The claimant must be satisfied ---------- Correct Answer ----------- All of the following are components of negotiating EXCEPT? Select one: A. The issue should be negotiable B. There must be an exchange of value for value C. The parties should trust each other D. The claimant must be satisfied Try to influence settlements ---------- Correct Answer ----------- The Civil Remedies Provision of the Insurance Code states that adjusters should not? Select one: A. Handle claims in a prompt manner B. Accompany claims payments with statements explaining coverage C. Settle claims in good faith D. Try to influence settlements 20/40/10 ---------- Correct Answer ----------- The insured, a resident of Florida, was in an accident in Georgia. The Florida car was insured with liability limits of 10/20/10. Georgia's minimum liability limits are 20/40/10. How will the Florida policy respond? Select one: A. 10/20/10 B. 20/40/10 C. No coverage D. 20/40/20 When the policy limit is exhausted ---------- Correct Answer ----------- Under a PAP, when does the insurance company cease to defend the insured? Select one: A. The insurance company is not obligated to defend the insured B. After the case has been resolved C. When the policy limit is exhausted $100,000 ---------- Correct Answer ----------- If an insured has $100,000 of unstacked UM coverage with three cars on the policy, how much is available under a UM claim? Select one: A. $0- B. $300,000 C. $100,000 D. $200,000 $51,500 ---------- Correct Answer ----------- The insured has a PAP with single liability of $50,000. The following loss occurs: $37,000-BI pedestrian; $3,000-Display window; $10,000-Sports car; $1,500-Legal defense. How much would his policy pay for the loss? Select one: A. $51,500 B. $37,000 C. $40,000 D. $50,000 $650 ---------- Correct Answer ----------- The insured is driving down the road when a low hanging branch strikes and cracks his windshield. The cost to replace the windshield is $650. The insured has a $500 collision deductible and a $250 other than collision deductible. The insurance company will pay...? Select one: A. $250 B. No coverage C. $500 D. $650 Permissive use of insured's automobile ---------- Correct Answer ----------- Which of the following is covered under PAP liability? Select one: A. Intentional damage B. Permissive use of insured's automobile C. Damage to property owned by the insured D. Injury to an employee in the course of employment His PIP insurance ---------- Correct Answer ----------- Joe is injured when the jack slips as he is changing a tire in his driveway. The bill for his treatment in the emergency room is $450. Where will Joe go first to collect for his medical expenses? Select one: A. Worker's Compensation B. His PIP insurance C. His homeowner insurance D. His health insurance May purchase UM coverage more than liability limits ---------- Correct Answer ----------- All of the following UM options are available to an insured, EXCEPT? Select one: A. May purchase UM coverage less than liability limits B. May purchase UM coverage more than liability limits C. May reject UM coverage in writing D. May elect non-stacked UM coverage in writing Trailer Interchange coverage ---------- Correct Answer ----------- The Truckers form that provides liability coverage for damage to non-owned trailers is called? Select one: A. Interchange coverage B. Commercial Trailer coverage C. Trailer Interchange coverage D. Trailer coverage Other than collision ---------- Correct Answer ----------- Hail damage to an auto is an example of? Select one: A. An exclusion to Part A\-Liability B. An exclusion to Part D-Physical Damage C. Other than collision D. Collision $6,000 ---------- Correct Answer ----------- Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible? Select one: A. $6,000 B. $5,000 C. $15,000 D. $10,000 Named Non Owned ---------- Correct Answer ----------- The coverage that provides Liability, Medical Payments and Uninsured Motorist for a named individual who does not own an automobile is? Select one: A. Extended Non Owned B. Driver Other Car C. Named Non Owned D. Extended PIP Bodily injury only ---------- Correct Answer ----------- Uninsured Motorists coverage is used to cover the insured for? Select one: A. Bodily injury only B. Bodily injury and property damage C. Medical payments D. Liability Betty must use her own PIP to pay her medical bills ---------- Correct Answer ----------- Sam is an owner and not insured for PIP. Sam borrows Fred's car, which is insured for PIP. Sam has an at-fault accident when he strikes Betty's car. Betty is insured for PIP. As a result of Sam's negligence, Betty is injured and has $5,000 in medical bills. Which of the following is true? Select one: A. Sam does not have Tort Exemption B. Betty may sue Sam and Fred for $5,000 C. Betty must use her own PIP to pay her medical bills D. Sam may recover any damages from Fred's PIP Collision ---------- Correct Answer ----------- Susie is driving down the street when a dog runs in front of her car. She swerves to avoid the dog and hits a tree. This is an example of? Select one: A. Collision B. Both A and B C. Other than collision D. Neither A or B Tom who owns the house he rents to his neighbor ---------- Correct Answer ----------- Which of the following is not eligible for a homeowners policy? Select one: A. Tom who owns the house he rents to his neighbor B. Joe who lives is a garage apartment C. A husband and wife who own a vacation home in Georgia D. Betty who rent a condominium unit Age of the homeowner ---------- Correct Answer ----------- Homeowner policies are rated on all of the following, EXCEPT: Select one: A. Location of the dwelling B. Age of the homeowner C. Fire protection available D. Construction of the dwelling Replacement Cost ---------- Correct Answer ----------- The insured lives in his principal residence 80% of the year. A flood loss would be paid at which of the following? Select one: A. At 80% coinsurance B. Replacement Cost C. ACV D. Valued Policy An aquarium is knocked over and the fish die ---------- Correct Answer ----------- Which of the following is not covered under Coverage C of a HO Policy? Select one: A. An aquarium is knocked over and the fish die B. A student away at school has his golf clubs stolen C. An insured's luggage is stolen from his hotel room D. A weekend guest loses his hearing aid during a fire Mortgagee Clause ---------- Correct Answer ----------- The clause that protects the lender in a real property policy is the: Select one: A. Coinsurance Clause B. Loss Payee Clause C. Appraiser Clause D. Mortgagee Clause $25,000 ---------- Correct Answer ----------- Under an HO3 policy, if Coverage A is $250,000, Coverage B is: Select one: A. $10,000 B. None of the above C. $20,000 D. $25,000 Renter ---------- Correct Answer ----------- An HO-4 Policy is designed for a: Select one: A. Condo owner B. Home owner C. All of the above D. Renter $0 ---------- Correct Answer ----------- What is the deductible for a Personal Articles Floater (PAF)? Select one: A. $250 B. $100 C. $500 D. $0 $20,000 ---------- Correct Answer ----------- An insured has $200,000 Coverage A dwelling coverage, under his HO-3 Policy. He incurs the following damage from a covered peril: fence - $5,000; gazebo - $7,500; tool shed -$15,000. What will his HO Policy will pay? Select one: A. $10,000 B. No coverage C. $25,000 D. $20,000 Mike owns a 16 foot. 100 H.P. outboard motor boat and he has an at-fault accident in which he totally destroys another boat. The owner of the boat sues Mike. ---------- Correct Answer ----------- Which situation is not covered for liability under an HO3 policy? Select one: A. Mike used a 4-wheel ATV to haul yard clippings to his compost pile. A neighbor is on Mike's property and Mike accidentally runs into him with the ATV. B. Mike rents the community center for his son's wedding reception. A guest falls and the guest sues Mike for injuries. C. Mike owns a 16 foot. 100 H.P. outboard motor boat and he has an at-fault accident in which he totally destroys another boat. The owner of the boat sues Mike. D. Someone falls at the house Mike is planning to live in after it is built All of the above ---------- Correct Answer ----------- Which of the following are available as HO hurricane deductibles? Select one: A. All of the above B. 2% C. 5% D. $500 Over two acres of land ---------- Correct Answer ----------- If flooding is confined to one area, the flood water must cover: Select one: A. The building B. Over three acres of land C. Over two acres of land D. Over an acre of land D. The insured will be the owner-occupant ---------- Correct Answer ----------- A house under construction is eligible for a Homeowner Policy if: Select one: A. None of these answers are correct B. The builder doesn?t qualify for a Commercial Property Policy C. The builder is licensed D. The insured will be the owner-occupant The Self-insured Retention ---------- Correct Answer ----------- If an Umbrella Policy serves as primary coverage, what part of the policy allows the insurer to apply a deductible? Select one: A. The Stand Alone Form B. The Follow Form C. The Self-insured Retention D. None of these answers are correct Adequate Insurance Clause ---------- Correct Answer ----------- The provision in the Builders Risk Coverage Form that penalizes the insured for underinsurance is called: Select one: A. Coinsurance B. Full Reporting C. Agreed Value D. Adequate Insurance Clause Weight of ice and snow ---------- Correct Answer ----------- The insured has a building that has been vacant for 75 days. Which of the following are covered? Select one: A. Theft B. Glass breakage C. Weight of ice and snow D. Vandalism Peak Season ---------- Correct Answer ----------- The insured owns a fireworks factory, which is especially busy during the months of June and July. Which endorsement should he purchase to cover his inventory during these months? Select one: A. Building Ordinance B. Value Reporting C. Peak Season D. Inflation Guard Buildings under construction ---------- Correct Answer ----------- The Builders Risk coverage form covers: Select one: A. Contractors B. Buildings under construction C. Investors D. Builders . 100% ---------- Correct Answer ----------- The Builders Risk Coverage Form assumes which coinsurance provision: Select one: A. 90% B. 100% C. 80% D. 70% A. Yes, expenses are covered because of proximate cause. B. No, slip and falls are not covered under Medical Payment coverage C. Yes, expenses are covered within three years of the injury. D. No, expenses are covered within one year of the injury. Will cover the claim ---------- Correct Answer ----------- Acme Toys has a CGL policy. They hold a party and one of the guests has a little too much to drink. If the guest injures someone and the injured party sues the Acme Toys, the CGL policy: Select one: A. Will cover if the insure has Liquor Liability Coverage B. Will not cover C. Will cover if the insured has Legal Liability Coverage D. Will cover the claim No, employees are not covered for Med Pay ---------- Correct Answer ----------- An employee is hurt on the insured's premises. Three months later the employee dies. Are the employees funeral expenses covered under the company's CGL Medical Payments? Select one: A. Yes, the claim was made within one year time period B. No, the claim was filed too late C. Yes, the employee is automatically covered D. No, employees are not covered for Med Pay 60 days ---------- Correct Answer ----------- How long does the insured have to request the "Supplemental Extended Reporting Period" after the expiration of the claims-made CGL policy? Select one: A. 90 days B. 30 days C. 180 days D. 60 days Claims-Made form ---------- Correct Answer ----------- The retroactive date under the CGL established the earliest date a claim will be paid by the insurance company under the: Select one: A. Claims-Made form B. Occurrence form C. Both the Occurrence and Claims-Made form D. Products and Completed Operations form All of these ---------- Correct Answer ----------- hysicians, Surgeons and Dentists Insurance will cover: Select one: A. Blood Banks B. Veterinarians C. All of these D. Optometrists $5,000 ---------- Correct Answer ----------- The basic amount of Medical Payment coverage under a CGL policy is: Select one: A. $2,000 B. $3,000 C. $1,000 D. $5,000 1-1-03 policy ---------- Correct Answer ----------- Tom purchases a CGL - Occurrence form with an effective date of 1-1-03. He purchases a claims-made CGL with an effective date of 1-1-04. An injury from 8-1-03 is filed in 2005 when a claim is made. Which policy covers the injury? Select one: A. 1-1-03 policy B. 1-1-04 policy C. No coverage D. 1-1-05 policy Lost wages up to $100/day ---------- Correct Answer ----------- All of the following are covered under Supplemental Payments in a CGL EXCEPT: Select one: A. Expenses incurred at the company's request B. Lost wages up to $100/day C. Bails bonds up to $250 D. Interest on judgments Mexico ---------- Correct Answer ----------- Which of the following is not a covered territory for a CGL policy? Select one: A. Canada B. United States C. Puerto Rico D. Mexico Neither policy covers ---------- Correct Answer ----------- Mr. Smith buys a CGL claims- made policy on 1-1-04 with a retroactive date of the policy's inception of 1-1-04. He buys another CGL claims-made policy on 1-1-05 with a retroactive date of 1-1-05. An accident occurs on 7-1-04 and the claimant files this injury on 9-1-05. Which policy covers? Select one: A. 1-1-04 claims-made policy B. 1-1-05 claims made policy C. 1-1-04 is primary and 1-1-05 policy is excess D. Neither policy covers It deducts claims expenses first and the balance is payable for the claim. ---------- Correct Answer ----------- What is unique about lawyer's professional liability insurance? Select one: A. It covers claims that existed before the policy was effective. B. It deducts claims expenses first and the balance is payable for the claim. C. It covers lawyers for fraudulent activities. D. It covers only lawyers in group practice. Surety, obligee and principal ---------- Correct Answer ----------- The three parties to a bond are: Select one: A. Surety, principal and cosigner B. Surety, insured and insurer C. Surety, obligee and indemnitor D. Surety, obligee and principal The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry ---------- Correct Answer ----------- Safe Burglary is defined as: Select one: A. The taking of property by someone who has caused bodily harm B. The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry C. The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry and caused bodily harm D. Any act of stealing The employer's business property may be seized ---------- Correct Answer ----------- All of the following are penalties for non-compliance with Workers Compensation laws, EXCEPT: Select one: A. The employer may be charged a $1000 fine, plus $100 for each day of non- compliance B. The employer may be charged with a second-degree misdemeanor C. The employer's business property may be seized D. The employer's business may be closed 7 days ---------- Correct Answer ----------- Under Workers Compensation, what is the waiting period for disability benefits to begin? Select one: A. 30 days B. 7 days C. 14 days D. 21 days D. Employee Theft A third-degree felony ---------- Correct Answer ----------- Failure to comply with the Workers Compensation Law is: Select one: A. A third-degree felony B. A second-degree felony C. A first-degree misdemeanor D. A first-degree felony 25% ---------- Correct Answer ----------- Employees of ABC Manufacturing are required to wear steel-toed shoes when they are in the factory. An employee who injures their foot because they are not wearing safety shoes while in the plant would have their benefits reduced by: Select one: A. 20% B. 10% C. 25% D. 15% $7,500 ---------- Correct Answer ----------- What is the amount allotted for funeral expenses under Workers Compensation benefits? Select one: A. $2,500 B. $10,000 C. $5,000 D. $7,500 $150,000 ---------- Correct Answer ----------- What is the maximum death benefit payable to eligible dependents under WC? Select one: A. $250,000 B. $200,000 C. $150,000 D. $100,000 Contingency ---------- Correct Answer ----------- Bond underwriting usually looks at the three C's which include all of the following, EXCEPT: Select one: A. Contingency B. Collateral/Capital C. Capability D. Character A License Bond ---------- Correct Answer ----------- Which bond guarantees performance in conformity with the law? Select one: A. A Conservation Bond B. A Blue Sky Bond C. A License Bond D. A Franchise Bond 27 days ---------- Correct Answer ----------- Joe is off the job for 27 days due to a work related injury. Joe can receive WC benefits for how many days? Select one: A. 7 days B. 14 days C. 21 days D. 27 days The Division of Workers' Compensation of the Department of Financial Services ---------- Correct Answer ----------- Workers Compensation in Florida is regulated by: Select one: A. The Department of Labor B. The Department of Labor Security C. The Department of Labor & Employment Security D. The Division of Workers' Compensation of the Department of Financial Services $162,000 ---------- Correct Answer ----------- Securities were purchased for $150,000. They were stolen and sold for $175,000. On the day the theft was reported the securities were valued at $162,000. How much would be paid? Select one: A. $150,000 B. No coverage C. $175,000 D. Conditionally renewable E. $162,000 4 ---------- Correct Answer ----------- How many people can a private employment hire before they are required to purchase WC? Select one: A. 1 B. 4 C. 12 D. 8 Throwing cargo overboard to save the ship ---------- Correct Answer ----------- Jettison is defined as: Select one: A. Fraud by the ship's master or crew B. Throwing cargo overboard to save the ship C. Taking the insured property by force D. Winds, waves, collision or sinking Annual Transit ---------- Correct Answer ----------- Which Commercial Inland Marine policy protects those who ship and receive goods on an annual basis? Select one: A. Trip Transit B. Motor Truck Cargo C. Annual Transit D. Trailer Interchange Barratry ---------- Correct Answer ----------- All of the following are among the broad classes of Ocean Marine Insurance, EXCEPT: Select one: A. Cargo B. Barratry C. Freight D. Hull There is coverage in Canada, and 100 miles into Mexico ---------- Correct Answer -------- --- An insured wants to fly to Canada and then down to Mexico. Will he have coverage available for this trip? Select one: A. He cannot go outside the U.S. B. There is coverage in Canada, but not in Mexico C. There is coverage in Canada, and 100 miles into Mexico D. There is coverage in Mexico, but not in Canada Not applicable to passengers carried for hire ---------- Correct Answer ----------- Admitted Liability is: Select one: A. Requires a legal action for injuries B. None of the above C. Applicable to passengers carried for hire D. Not applicable to passengers carried for hire $500,000 ---------- Correct Answer ----------- The minimum basic liability limit for a Boiler and Machinery policy is: Select one: A. $500,000 B. $1,000,000 C. $250,000 D. $100,000 It is not possible to purchase Homeowner policies under JUA, only Dwelling policies ----- ----- Correct Answer ----------- All of the following are true concerning Joint Underwriting Associations, EXCEPT: Select one: A. Policyholders must be unable to purchase insurance on the open market B. Citizens replaced FRP&CJUA and Florida Windstorm C. It is not possible to purchase Homeowner policies under JUA, only Dwelling policies D. JUA operations are overseen by a Board of Governors Injury of the job ---------- Correct Answer ----------- Health insurance protects against all of the following, EXCEPT: Select one: A. Bodily injury B. Disablement C. Death by accident D. Injury of the job A PPO ---------- Correct Answer ----------- A selected group of hospitals and doctors in a given area who have joined together to reduce medical costs is: Select one: A. A Professional Practitioner Group B. An HMO C. A Health Managed Hospital D. A PPO Citizens ---------- Correct Answer ----------- A homeowner could not find coverage on the open market and looked to the residual market for coverage. What Joint Underwriting Association would handle this risk? Select one: A. Citizens B. The Florida Residential Property and Casualty Joint Underwriting Association C. The Florida Workers Compensation Joint Underwriting Association D. The Florida Automobile Joint Underwriting Association 10 days ---------- Correct Answer ----------- Joe pays his health insurance premium on a monthly basis. If he forgets to pay this month's premium, how long will the policy remain in force after the premium date? Select one: A. 10 days B. It cancels immediately C. 31 days D. 7 days 6 months ---------- Correct Answer ----------- Under Medicare Supplement insurance, the maximum waiting period before coverage applies to pre-existing conditions is: Select one: A. 3 months B. 6 months C. 12 months D. 9 months An HMO ---------- Correct Answer ----------- An organization that provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium is: Select one: A. A Professional Practitioner Group B. A PPO C. A Health Managed Hospital D. An HMO Any higher limits required by any law ---------- Correct Answer ----------- Which is the largest limit available for commercial vehicles in the residual market? Select one: A. Any higher limits required by any law B. 100/300/50 C. 250/500/250 D. 250/500/100 Must have been unable to obtain coverage from at least three other carriers ---------- Correct Answer ----------- Which of the following is not a requirement to qualify for the FWCJUA? Select one: A. Must have been unable to obtain coverage from at least three other carriers B. Must have been unable to obtain coverage from at least two other carriers C. Must not be indebted for any previous unpaid WC premiums D. Must be an employer FAJUA ---------- Correct Answer ----------- The Residual Market that is a source for persons who are unable to purchase auto insurance through normal channels is: Select one: A. FRPCJUA B. FWUA C. FWCJUA D. FAJUA Noncancelable ---------- Correct Answer ----------- If a health insurance policy cannot be cancelled and can be renewed at the option of the insured to a stated age with no premium increases, this policy is: Select one: A. Guaranteed renewable B. Optionally renewable C. Noncancelable D. Conditionally renewable Optionally renewable ---------- Correct Answer ----------- ane has a health insurance policy that prevents cancellation during the policy period, but reserves the right of the insurer to non-renew the policy once it expires. This is an example of: Select one: A. Conditionally renewable B. Noncancelable C. Optionally renewable D. Guaranteed renewable A servicing carrier ---------- Correct Answer ----------- Joe wrote a policy through the Florida Automobile Joint Underwriting Association, and the company issued the policy. What is the company issuing the policy called? Select one: A. A non-standard carrier B. A non-servicing carrier C. A servicing carrier D. A standard carrier It is based on an assessment of Tier Three participants ---------- Correct Answer ---------- - How is funding determined for Tier Three employers? Select one: A. It is based on an assessment of Tier Three participants B. None of the above C. It is based on an assessment of Tier One participants D. It is based on an assessment of Tier Two participants Defining claims ---------- Correct Answer ----------- Which of the following is not one of the basic claims activities of the adjuster? Select one: A. Defining claims B. Negotiating claims C. Evaluating claims D. Investigating claims To set rates for various company products ---------- Correct Answer ----------- Which of the following is not one of the duties of FLDFS? Select one: A. To investigate charges of unethical conduct of adjusters B. To set rates for various company products C. To license adjusters D. To supervise the claims activity of adjusters