Insurance Contracts and Policies: Key Characteristics and Exceptions, Exams of Law

Download Insurance Contracts and Policies: Key Characteristics and Exceptions and more Exams Law in PDF only on Docsity! 1[Date] Florida Claims Adjuster Exam Questions with Verified Answers. 1. Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - Correct answer D. All listed interests Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one payment is made by the insurer and it is up to the additional interests on working out their share. 2. Insurance applies separately to each insured as if other insured’s did not exist. This is defined as: A. Severability B. Conditional C. Warranty D. None of the above - Correct answer A. Severability 3. Property insurance policies usually contain a (n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value: A. Pro Rata B. Abandonment C. Liberalization D. All of the above - Correct answer B. Abandonment 4. A (n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject: A. Conditional Contract B. Personal Contract C. Economic Contract D. Insurable Interest - Correct answer D. Insurable Interest 5. States that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage. A. Cancellation Clause B. Policy Period C. Pro Rata D. Liberalization - Correct answer D. Liberalization 6. The time frame is typically 60 days. 7. The __________ states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. A. Doctrine of Proximate Cause B. Doctrine of Perils & Hazards C. Insurance Policy Handbook 2[Date] D. Doctrine of Property Insurance - Correct answer A. Doctrine of Proximate Cause 8. For example, if a property insurance policy covers the peril of fire but further damage is caused by smoke, water used to extinguish, and the process of moving property away - fire is considered to be the *proximate cause* of all of the damage. 9. The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as? A. Actual Cash Value B. Replacement Cost C. "Old for New" D. None of the above - Correct answer A. Actual Cash Value 10. A policy condition, either based on information in the insured's application or inserted by the insurer, is defined as: A. Warranty B. Misrepresentation C. Concealment D. None of the above - Correct answer A. Warranty 11. The following are basic characteristics of a property or liability insurance contract, except: A. Personal Contract B. Conditional Contract C. Loss of Settlement Contract D. Contract of Adhesion - Correct answer C. Loss of Settlement Contract 12. The Insurer's responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as? A. Conditional Contract B. Adhesion Contract C. Indemnity Contract D. All of the above - Correct answer A. Conditional Contract 13. "May be conditioned" 14. Which of the following is not one of the "Thresholds" in the "No-Fault" law? A. Death of the Insured B. Temporary Injury of the Insured C. A permanent loss of a bodily function D. Permanent scarring on the face of the insured - Correct answer B. Temporary Injury of the Insured 15. Also included: permanent injury other than scarring and disfigurement 16. Under Mechanical Breakdown Coverage, new cars are eligible for service up to: A. 36 Months/36,000 Miles B. 24 Months/36,000 Miles C. 12,000 Months/12,000 Miles D. 12 Months/36,000 Miles - Correct answer A. 36 Months/36,000 Miles 17. Used vehicles: 12 Months/12,000 Miles 18. If financial responsibility doesn't exist at the time of an accident, which of the following things must happen to avoid penalties? A. The legally valid claims of others must be satisfied (up to 10/20/10) 5[Date] 44. All of the following are eligible for a Homeowner's Policy, except? A. An apartment tenant B. A condominium owner C. Four-family dwelling owner-occupant D. A business condo owned by a local insurance company - Correct answer D. A business condo owned by a local insurance company 45. Commercial property is not eligible for a Homeowner's policy. 46. Which of the following are characteristics of Homeowner's Insurance? A. Protects against economic loss to residences and household property and legal liabilities B. Owner-occupants of 1-4 family dwellings C. Renters who maintain residential occupancy in any type of building D. All of the Above - Correct answer D. All of the Above 47. Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit owners and cooperative apartment occupants 48. Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is averaged at $25,000 and Jeremy decides to stay in a hotel because most of the damage is to his bedroom and kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel room bill? A. Fair Rental Value B. Value Obligation C. Loss of Use D. Insurers Duties - Correct answer C. Loss of Use 49. The insurer will pay any necessary and reasonable expenses associated with a daily living routine. 50. An insured who wishes to purchase flood insurance, but is located in a moderate or low risk flood zone may do so by purchasing a: A. Preferred Risk Flood Policy B. Standard Flood Policy C. Universal Flood Insurance D. None of the above - Correct answer A. Preferred Risk Flood Policy 51. Although Flood Insurance is provided by the Federal Government, those who are not in a "flood zone" may purchase a preferred risk policy to cover them for a flood claim. 52. Used only for Commercial Condominiums, it covers the unit-owners business personal property and the personal property of others in the insured's care, custody or control: A. Condominium Dwelling Form B. Personal Condominium Unit Owners Form C. Condominium Unit Owners Form D. None of the above - Correct answer C. Condominium Unit Owners Form 53. Does not cover buildings since coverage would typically be provided under the Condo Association coverage form issued. 54. The Commercial Property Contract includes all of the following, except: A. Common Policy Conditions B. Commercial Property Conditions C. Coverage Form D. Commercial Loss Schedule - Correct answer D. Commercial Loss Schedule 55. Also included: Declarations, Causes of Loss Form, Endorsements 6[Date] 56. Insures a condominium association against direct physical loss or damage to buildings, business personal property and personal property of others in the care, custody or control of the association and located at the premises: A. Condominium Association Form B. Condominium Unit Owners Form C. Condominium Insured Owner Form D. None of the above - Correct answer A. Condominium Association Form 57. This, along with Condo Unit Owners Form, is located under Condo Coverage. 58. Sometimes referred to as commercial fire and allied lines, this is the form of insurance that covers direct and indirect losses related to properties other than one-to-four family dwellings and farm properties: A. Business Property Insurance B. Building Property Insurance C. Commercial Property Insurance D. None of the above - Correct answer C. Commercial Property Insurance 59. (The question is the definition for this term) 60. Under Commercial Property Policies, Florida law requires an insurer to give the insured at least __________days advance written notice of non-renewal. A. 25 B. 90 C. 45 D. None of the above - Correct answer C. 45 61. Also, notice must state reasons the policy is not to be renewed. 62. When a business's personal property values fluctuate, a single, fixed amount of insurance could produce either over- or under-insurance at any given time. With this option, the limit of coverage is set at an amount somewhat higher than expected peak values. A. Value Reporting B. Replacement Cost C. Agreed Value D. None of the above - Correct answer A. Value Reporting 63. Replacement Cost is incorrect b/c it calculates monetary value of one's personal property 64. Liberalization states, "The insured gets the benefit of any broadened coverage if the company, within __________ days of inception, adopts a form revision that is broader and without increase in premium." A. 10 days B. 55 days C. 65 days D. 45 days - Correct answer D. 45 days 65. Used to cover buildings in the course of construction: A. Builders Risk Policy B. Builders Replacement Policy C. Construction Replacement Policy D. None of the above - Correct answer A. Builders Risk Policy 66. Includes: structure being built (including foundations), fixtures and machinery, equipment to service building, owned materials and supplies used for construction. Temporary structures built or assembled on site are also included if not covered by insurance. 7[Date] 67. First developed as an extension of Ocean Marine coverage, to provide coverage for cargo traveling over land, instead of by sea. A. Commercial Inland Marine Coverage B. Personal Inland Marine Coverage C. Ocean Commercial Coverage D. None of the above - Correct answer A. Commercial Inland Marine Coverage 68. Definition: to help identify kinds of risks which are eligible for either Ocean or Inland Marine insurance. 69. Protects against loss of business income that results from damage to covered property from a covered cause of loss. A. Business Income Insurance Coverage B. Business Income Replacement Coverage C. Business Income Actual Value Coverage D. None of the above - Correct answer A. Business Income Insurance Coverage 70. Period of restoration begins 72 hours after date of direct damage. In effect, coverage has a 72 hour deductible. 71. Coverage ends on either 1. Date when damaged property could be repaired, rebuilt, or replaced 2. Date business resumes operations at new, permanent location (whichever comes first) 72. What payment covers several areas of costs related to claims, and are payable in addition to the policy limits? A. Supplementary B. Liability C. Personal Injury D. All of the above - Correct answer A. Supplementary 73. Generally, all costs of litigation are covered (court costs, prejudgment interest, judgment interest, and cost of bonds to release attachments) 74. Three full-time employees from a local furniture company are horsing around and one is pushed into a machine that cut his foot. How will the company's General Liability respond? A. the Med Pay Section must pay Primary B. the General Liability Policy will pay up to $20,000 in medical payments C. the GL policy will not pay D. Only property damage is covered under GL policy - Correct answer C. The GL policy will not pay 75. Coverage excludes liabilities under Workers Comp or similar law or arising from injuries to employees of the insured. The employees would have to file through Workers Comp. 76. Which of the following can be found in a Commercial General Liability Contract? A. Declarations B. Common Policy Conditions C. Occurrence and Claims-Made Forms D. All of the Above - Correct answer D. All of the Above 77. Also included: Nuclear Energy Liability Exclusion endorsement (other endorsements may be attached) 78. There is __________ coverage for injury, damage or clean-up costs caused by pollutants, subject to minor exceptions: A. 50% 10[Date] 101. Under Workers Compensation, Part Four You’re Duties if Injuries Occur, an employer is required to: A. Provide the names/addresses of injured persons and witnesses B. Promptly provide any legal papers C. Cooperate and assist as insurer requests D. All of the Above - Correct answer D. All of the Above 102. Also included: immediate contact with insurer, providing immediate medical or other services, do nothing to interfere with insured's right of recovery, make no voluntary payments or assume any obligation except at employer's own cost. 103. Under Workers Compensation, Employers Liability includes: A. Claims by others for the liabilities to insured’s employees B. Claims by relatives of injured employees for consequential damages C. Claims made by employees that are not subject to Workers Comp Laws D. All of the Above - Correct answer D. All of the Above 104. Samantha eats uncooked chicken at a local barbecue joint and becomes violently ill. Which of the following workers compensation benefits would pay for this occurrence? A. A products and completed operations form B. A premises and operations form C. An owners and contractors protective liability form D. None of the above - Correct answer D. None of the Above 105. Samantha is not an employee of the barbecue joint; Workers Comp does not apply. 106. An optional alternative providing for adjustment of premium after expiration, based on a guaranteed basic premium to the insurer to which is added the actual losses incurred by the insured. This is defined as: A. Cost-Plus Rating Plan B. Experience Rating Plan C. Retrospective Rating Plan D. None of the above - Correct answer C. Retrospective Rating Plan 107. Often referred to as Cost-Plus Programs 108. Under Employer's Liability, the minimum limits of liability are: A. 100/100/500 B. 100/500/1000 C. 500/100/500 D. 100/500 - Correct answer A. 100/100/500 109. $100,000 for all claims in each accident 110. $100,000 per employee for disease 111. $500,000 for all disease claims 112. Under Inside The Premises - Robbery or Safe Burglary of Personal Property, a special limit of __________ per occurrence applies to articles whose principal value is precious metals, precious or semiprecious stones, pearls or furs, and to the physical or intrinsic value of manuscripts, drawings or records: A. $1,000 B. $2,000 C. $4,000 D. $5,000 - Correct answer D. $5,000 113. Under Crime Insurance, losses must be discovered within 1 year. This is defined as: 11[Date] A. The Discovery Period B. The Loss Sustained Period C. The Open Period D. All of the above - Correct answer A. The Discovery Period 114. Crime Insurance is _________ over any other Insurance coverage. A. Primary B. Secondary C. Excess D. Recess - Correct answer C. Excess 115. A situation may arise where another form of insurance will pay claim - that insurance would be primary. 116. Cover only losses that both occurred and were discovered during the policy period, or within one year of its expiration. This is defined as: A. Discovery B. Loss Sustained C. Sustained Loss D. None of the above - Correct answer B. Loss Sustained 117. One exception to the rule is that Loss Sustained forms will also cover losses that occurred under previous (expired) crime policies and that were discovered during current policy year, as long as crime coverage had continued w/o interruption 118. Any loss discovered during the policy period or within 60 days after its expiration (one year after expiration for losses connected with employee benefit plans) is covered regardless of when it occurred. This is defined as: A. Loss Sustained B. Valuation C. Discovery D. None of the above - Correct answer C. Discovery 119. If XYZ restaurant discovers stolen goods taken over a year ago, this is within 2 years of inception date and found within policy period so it's covered. 120. Under Crime Insurance, the insured is covered for loss by: A. Theft B. Burglary C. Robbery D. All of the Above - Correct answer D. All of the Above 121. Unless the loss is specifically excluded or limited 122. Provides for loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance or destruction. This is defined as: A. Inside the Premises B. Outside the Premises C. Care, Custody, & Control D. None of the above - Correct answer B. outside the Premises 123. Also covers robbery of other property under the circumstances. 124. Taking or attempted taking of property from within a locked safe or vault, by unlawful entry, with visible marks of forcible entry, or taking of the safe or vault from inside the premises. This is defined as: 12[Date] A. Safe Burglary B. Inside the Premises C. Custodial Burglary D. None of the above - Correct answer A. Safe Burglary 125. Exclusions: accounting errors, giving/surrendering property, voluntarily parting, fire (except damage to safe/vault), vandalism, transferring property to someone based on unauthorized instructions or from threat to harm 126. Covers for all types of property, when surrendered away from the premises as a result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. This is defined as: A. Extortion B. Surrendered Property C. Client's Property D. None of the above - Correct answer A. Extortion 127. Also triggered by threats to damage the premises or property within the premises. 128. Employee Theft Coverage may be written in the following ways: A. Scheduled Persons Coverage B. Scheduled Position Coverage C. Blanket Coverage D. All May Apply - Correct answer D. All May Apply 129. Employee Theft may be written in three ways. 130. Which of the following are NOT a type of bond? A. Contract B. Fiduciary C. Court D. Apprentice - Correct answer D. Apprentice 131. Contract - fulfill obligation 132. Fiduciary - make good to court for any deficiencies found in performance 133. Court - protect opposing party from loss 134. Which of the following are characteristics of a License Bond? A. To guarantee the licensee will act according to laws B. Protect public from unfair business practice C. Proper collection and payment of taxes D. All of the Above - Correct answer D. All of the Above 135. Guarantees the performance between the principle and the oblige: A. Principal B. Oblige C. Surety D. All of the above - Correct answer C. Surety 136. Aka Bonding Company; Surety is a "guarantee" 137. This bond guarantees indemnification to the oblige for any losses resulting from the principal's failure to complete the contract work in accord with specifications: A. Performance B. Bid C. Court D. Maintenance - Correct answer A. Performance 15[Date] 165. Some forms designed to supplement basic policies; others provide both basic and catastrophic coverage 166. A policy may contain a provision which states a period of time between issuance and acceptance before sickness benefits begin. This is defined as: A. Waiting Period B. Elimination Period C. Both A & B D. None of the above - Correct answer C. Both A & B 167. This helps keep premiums reasonable by eliminating chance of persons buying coverage only when they are sick 168. Characteristics of an HMO plan usually include: A. Small of non-existent Deductibles B. Fewer Exclusions C. Insurance services to members through employed physicians D. All of the Above - Correct answer D. All of the Above 169. Also included: broad coverage, coinsurance provisions 170. Provides indemnification to the insured for basic hospitalization of room and board in the hospital, nursing care, laboratory fees, operating room, medical supplies, etc. This is defined as? A. Hospitalization Expense B. Hospital Indemnity C. Accident Policy D. All of the above - Correct answer A. Hospitalization Expense 171. Associated with a daily limit, not to exceed specified maximum 172. A (n) __________ provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium. A. HMO B. PPO C. Major Medical Plan D. All of the above - Correct answer A. HMO 173. Referred to as an emerging and increasingly important non-insurance alternative to dealing with risk of health care costs 174. Established in 1973, this association was created for applicants who are unable to obtain insurance in the private market: A. FWCJUA B. FWUA C. Citizens D. FRPCJUA E. FAJUA - Correct answer E. FAJUA 175. In 2002, the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Joint Underwriting Association (FWUA), were combined to create: A. FWCJUA B. FWUA C. Citizens D. FRPCJUA 16[Date] E. FAJUA - Correct answer C. Citizens 176. Passed during a legislative session in 1993, this association was created for employers who cannot obtain workers compensation insurance in the private market: A. FWCJUA B. FWUA C. Citizens D. FRPCJUA E. FAJUA - Correct answer A. FWCJUA 177. A General Lines Agent instructs a licensed Customer Representative 4-40 to thoroughly cover the details of a new life insurance product with every Homeowner customer who calls or visits the office. The agent provides training on the new product. Although the Customer Representative does not have a Life License, he or she feels comfortable with the training and does as requested. 178. Which of the following is true? A. This practice is acceptable if done in the office under supervision of General Lines Agent B. This practice is acceptable because adequate training and product knowledge was provided C. This practice is unacceptable and may result in the suspension or revocation of the Customer Representative's license D. This practice is only acceptable if the product training was certified by the Life Insurance Company - Correct answer C. This practice is unacceptable and may result in the suspension or revocation of the Customer Representative's license 179. Unlike a Customer Representative, a General Lines Claim Adjuster need not be appointed with the Department of Financial Services. A. True B. False - Correct answer B. False 180. While selling an Automobile policy to a customer, an agent tells them that they are also required to purchase an Emergency Road Service Plan, even though that is not true. This is an example of: A. Misrepresentation B. Lack of Fitness C. Deception D. Sliding - Correct answer D. Sliding 181. A licensed General Lines Claim Adjuster is required to complete how many hours of continuing education every two years? A. 6 B. 12 C. 18 D. 24 - Correct answer D. 24 182. Once a Customer Representative 4-40 has been licensed and appointed for at least 3 years, he or she may transact insurance in the home of an existing customer. A. True B. False - Correct answer B. False 17[Date] 183. After pleading guilty or no contest to a felony, a licensed individual has _________ days to inform the Department? A. 10 B. 20 C. 30 D. 40 - Correct answer C. 30 184. Must be licensed, appointed by a General Lines Agent and can transact AUTO insurance only in the Office Only. A. Customer Representative 4-40 B. Limited Customer Representative 4-42 C. General Lines Claim Adjuster 6-20 D. General Lines Agent 2-20 - Correct answer B. Limited Customer Representative 4-42 185. Defaming a competitor company or agent is not only unprofessional, it can also result in a license suspension. A. True B. False - Correct answer A. True 186. A General Lines Claim Adjuster is required to obtain the same number of Continuing Education hours as a licensed Customer Service Representative. A. True B. False - Correct answer B. False 187. An Insurance Company which is formed under the laws of the State of Illinois, and has its Home Office there, is considered a: A. US Domestic Company B. Foreign Company C. Alien Company D. Unadmitted Company - Correct answer B. Foreign Company 188. Domestic: this state (FL) 189. Foreign: other state (still in US) 190. Alien: elsewhere 191. One who is involved in the investigation, adjustment, negotiation and/or trial preparations of claims arising under insurance policies is defined as: A. Insurance Agent B. General Lines Agent C. Claims Adjuster D. All of the above - Correct answer C. Claims Adjuster 192. Commonly referred to as claims auditor 193. Establishing a dollar value on a claim is defined as: A. Negotiation B. Evaluation C. Adjusting D. None of the above - Correct answer B. Evaluation 194. For bodily injury and uninsured motorist claims, a settlement range will be set rather than a single dollar amount 195. Damaged property that may be retrieved, reconditioned and sold to reduce an insured loss is defined as: 20[Date] pending an outcome of a claim against the person responsible for the damage. This is defined as a (n): A. Loan Receipt B. Subrogation Loan C. Full Release Statement D. Partial Release Statement - Correct answer A. Loan Receipt 218. Enables insurer to bring an action for recovery against a third party 219. Duties and functions of the Department of Financial Services include all of the following except: A. Approve the issuance of licenses B. Rating and underwriting rules C. Claims Supervision D. Investigate charges of unethical behavior - Correct answer B. Rating and underwriting rules 220. An adjuster who is a salaried employee under the supervision of the home, branch, or regional claims department of insurers is defined as a (n): A. Company or Staff Adjuster B. Fee Adjuster C. Public Adjuster D. Bureau Adjuster - Correct answer A. Company or Staff Adjuster 221. Which of the following are not considered to be an adjuster: A. Employee or Staff Adjuster B. Independent Adjuster C. Public Adjuster D. General Lines Adjuster - Correct answer D. General Lines Adjuster 222. Bureau Adjusters are also considered adjusters. 223. An applicant for a license as an adjuster may qualify as an adjuster in the following fields (but not limited to): A. All lines of insurance except life and annuities B. Property and Casualty C. Workers Compensation Insurance D. All of the Above - Correct answer D. All of the Above 224. Also: motor vehicle physical damage and health insurance 225. A motor vehicle or mobile home which is a total loss is defined as: A. Lost Profit B. Salvage C. Salvageable D. All of the above - Correct answer B. Salvage 226. It cannot be restored to prior condition 227. When making any payment for damage to an automobile for a partial loss, the insurer shall have printed on the loss settlement, "Failure to use the insurance proceeds in accordance with the security agreement, if any, could be a violation of s.812.014, Florida Statutes." This is payment for a (n): A. Third Party Claim B. Two Party Claim C. Derivative Claim 21[Date] D. All of the above - Correct answer A. Third Party Claim 228. The District of Columbia and any state or territory of the United States in which an insurance agent maintains his or her principal place of residence or principal place of business and is licensed to act as an insurance agent. This is defined as: A. Business Territory B. Home Territory C. Home State D. None of the above - Correct answer C. Home State 229. Any material which is or may have been a motor vehicle or mobile home, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal or for its component parts, or a combination of the two. This is defined as: A. Junk B. Derelict C. Major Component Parts D. None of the above - Correct answer B. Derelict 230. An individual appointed by a general lines or agency to assist that agent or agency in transacting the business of insurance from the office of that agent or agency is defined as: A. Customer Representative B. General Lines Agent C. Adjuster D. None of the above - Correct answer A. Customer Representative 231. (4-40 license) 232. The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer is defined as: A. Appointment B. Express Authority C. Registered D. Certificate of Authority - Correct answer A. Appointment 233. Licensees are given authority through the appointment process 234. The Department may issue a nonrenewable temporary license authorizing the appointment of a general lines insurance agent, life agent, or an industrial fire or burglary agent, for a period not to exceed: A. 1 Year B. 6 Weeks C. 1 Month D. 6 Months - Correct answer D. 6 Months 235. How many continuing education hours must an insurance adjuster complete every 2 years? A. 12 B. 20 C. 24 D. 14 - Correct answer C. 24 236. Which of the following are considered unfair methods of competition and unfair or deceptive acts or practices: 22[Date] A. False Statements B. Unfair Discrimination C. Unlawful Rebates D. All of the Above - Correct answer D. All of the Above 237. A customer representative appointed by a general lines agent or agency in transacting only the business of private passenger motor vehicle insurance from the office of that agent or agency is defined as: A. Automobile Agent B. Automobile Representative C. Limited Customer Service Representative D. Limited Customer Service Agent - Correct answer C. Limited Customer Service Representative 238. An individual representing an insurer as to life insurance and annuity contracts, including agents appointed to transact life insurance, fixed-dollar annuities, or variable contracts by the same insurer is defined as: A. Life Agent B. Life Representative C. General Lines Agent D. None of the above - Correct answer A. Life Agent 239. Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage provided for, without the informed consent of the applicant is a practice of: A. Churning B. Sliding C. Soliciting D. None of the above - Correct answer B. Sliding 240. Which of the following are reasons for refusal, suspension or revocation of a license or appointment? A. Lack of Qualifications B. Failure to Pass State Examinations C. Fraudulent or Dishonest Practices D. All of the Above - Correct answer D. All of the Above 241. Every licensee shall notify the department, in writing, after a change of name, residence address, principal business street address and/or mailing address within how many days? A. 60 B. 30 C. 15 D. 90 - Correct answer B. 30 242. An agent who transacts any one or more of the following types of insurance: Property, Casualty, Surety, Marine, and Health is defined as a (n): A. Customer Service Representative B. Adjuster C. Health Agent D. General Lines Agent - Correct answer D. General Lines Agent 25[Date] 276. Junk - Correct answer Any material which is or may have been a motor vehicle or mobile home, with or without all component parts, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal 277. Salvage - Correct answer damaged property that may be retrieved, reconditioned and sold to reduce an insured loss. 278. Motor vehicle or mobile home is a total loss 279. Appointment - Correct answer Authority given by an insurer or employer to a licensee to transact insurance or adjust claims on their behalf 280. Derelict - Correct answer Material which is or may have been a motor vehicle or mobile home, with or without all component parts, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal or component parts or both 281. Implied Waiver - Correct answer May result from some act of neglect on part of the adjuster 282. Express Waiver - Correct answer Occurs when insurer or its representative knowingly gives up a known right under insurance contract 283. Mechanical Breakdown Coverage - Correct answer Covers repairs to mechanical parts of your vehicle that break; even covers in events not related to an accident 284. Identify examples of peril. - Correct answer Fire, windstorm, and flood after hurricane, etc. 285. (Something that causes a loss) 286. How long does one have to notify the Department of Financial Services for a name and/or address change? - Correct answer 30 days 287. What is the coinsurance clause and how might it apply to a given scenario? - Correct answer a coinsurance clause on a property policy requires the policyholder to carry, at minimum, a specified percent of the dwelling's replacement cost. Failure results in monetary penalty. 288. Almost without exception, the percentage is 80% in coinsurance clauses of homeowner policies - this means the insured should carry 80% of replacement cost if they don't want to be penalized at the time of loss. 289. What are the minimum requirements for the Financial Responsibility Law? (There are two) - Correct answer 1. Legal valid claims of others must be satisfied up to the 10/20/10 requirements 290. 2. owner/operator must provide certification of financial responsibility for future accidents 291. What is PIP and how may it apply to a given scenario? - Correct answer Personal Injury Protection with limit of $10,000 per person, per accident 292. If Jeremy has a not-at-fault accident and he has PIP with a $1000 deductible, he can expect PIP to pay $1,600 of his $3,000 medical bill. 293. (3,000 - 1,000 = 2,000 x .80 = 1,600) 26[Date] 294. What is the difference between PIP and Workers Compensation? Which one is excess? - Correct answer PIP is primary against all other forms of medical and disability insurance coverage. Florida courts have held PIP is excess over Workers Comp. To eliminate duplicate recoveries, the law prohibits persons who have received PIP from recovering same amounts from others in legal liability actions. 295. What are the basic PIP benefits? - Correct answer 1. Medical; 80% of reasonable expenses are paid for necessary medical, surgical, x-ray, dental, and rehab services 296. 2. Work Loss; 60% of any loss of gross income and loss of earning capacity is reimbursed 297. 3. Replacement Services; 100% for cost of having household services performed by others which the injured person would have normally performed 298. 4. Death; $5,000 IN ADDITION to the $10,000 in medical/disability benefits afforded by PIP 299. How does PIP apply to pedestrians (in and out of state)? - Correct answer PIP applies to Florida residents if struck by insured's motor vehicle while not occupying a self- propelled vehicle (a pedestrian). 300. In situations wherein PIP does not apply, named insured and relatives occupying or struck by others vehicles out-of-state; nonresident passengers out-of-state; and nonresidents as pedestrians in Florida - The No-Fault Law has no applicability and usual legal remedies and other insurance coverage's are to be relied upon. 301. When can Other-Than-Collision (Comprehensive Coverage) be used? - Correct answer when there is damage to your vehicle not caused by a collision (hail storm damages hood, animal runs into car, windshield replacement) 302. What are the penalties for not complying with the No-Fault Law? - Correct answer 1. Owner is denied immunities from legal liabilities that are granted to those who comply 303. 2. Owner is personally liable for payment of PIP benefits to those entitled 304. 3. Owner's driver's license and vehicle registration are subject to suspension 305. What is the PIP Death Benefit amount? - Correct answer Effective 1/1/13, the death benefit will be $5,000 IN ADDITION to the $10,000 in medical and disability benefits afforded by PIP. 306. Example: Joe is seriously injured in an accident and incurs $50,000 in medical bills. He passes away a few days later. PIP would pay its maximum amount of $10,000 and, in addition, pay an extra $5,000 for death benefit. 307. Who administers the Financial Responsibility Law? - Correct answer The Department of Highway Safety and Motor Vehicles 308. What are the characteristics of a Homeowner's policy? - Correct answer -protects against economic loss to residence and household property and legal liabilities 309. -owner/occupants of 1-4 family dwellings 310. -renters who maintain residential occupancy in any type of building 311. -other structures (not permanently attached) 312. What are the benefits under the Workers Compensation Law? - Correct answer - Medical Expenses: needed medical treatment with no dollar limit 313. -Disability Benefits: compensation for wage loss 27[Date] 314. -Death Benefits: if death results within one year of accident or, if it follow continuous disability, within five years after the accident 315. What are the requirements for continuing education for a 6-20 license? - Correct answer a licensed General Lines Claims Adjuster is required to complete 24 hours of education every 2 years. 316. Who might have an insurable interest in a property? - Correct answer anyone who would suffer an economic loss from an adverse happening to the property 317. What do the Declarations of a policy outline? - Correct answer The declarations identifies the named insured and address, states the policy period and premium and miscellaneous information about the insured, and specifies the limits of coverage that apply 318. Which parties are associated with a bond? - Correct answer -Principal: one who undertakes to perform, fulfill a contract, or meet an obligation 319. -Oblige: one who is guaranteed that the principal will perform 320. -Surety (Bonding Company): guarantees performance 321. -Inseminator: may act as additional party at times; agrees to reimburse the surety for any loss it may suffer from having bonded the principal 322. What are the features of Major Medical Insurance? - Correct answer Major Medical Insurance is intended to afford protection against catastrophic losses. 323. Some forms are designated to supplement basic hospital/surgical policies; others intend to provide both basic and catastrophic coverage 324. These policies are characterized by a deductible, high maximum limit, and percentage participation or coinsurance. It may contain internal limits for hospital daily room charge and surgical services. 325. What associations make up Citizens Property and Insurance? - Correct answer Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and 326. Florida Windstorm Joint Underwriting Association (FWUA) 327. What are the characteristics of a Personal Automobile Policy Declaration page? - Correct answer Liability (bodily injury), property damage, uninsured motorist, medical payments, PIP, collision deductible, comprehensive deductible, towing coverage, and rental coverage 328. What are some examples of transacting insurance? - Correct answer 1. Solicitation and inducement 329. 2. Preliminary negotiations 330. 3. Effectuation of a contract of insurance 331. 4. Transaction of matters subsequent to effectuation of contract of insurance 332. 5. Mailing or otherwise delivering written solicitation to any person in this state by an insurer or any person acting on their behalf for fee or compensation 333. What is the website for the Florida Department of Financial Services? - Correct answer www.myfloridacfo.com 334. What are the thresholds of the No-Fault Law? - Correct answer (1) Significant and permanent loss of a bodily function, or 335. (2) Permanent injury other than scarring and disfigurement, or