20-44 Exam Simulator

Question 1

True or False? Florida law does not address Unfair Trade Practices or Acts.

Answer 1

FALSE

Read F.S. 626.9521 for a complete review

Question 2

Which of the following are duties of the Bureau of Property & Casualty Insurer Solvency?
A) Receipt and review of periodic financial statements
B) Periodic on-site financial examinations
C) Both A and B
D) Neither A or B

Answer 2

C) BOTH A AND B

The Bureau of Property & Casualty Insurer Solvency has the following duties: (a) receipt and review of periodic financial statements; (b) periodic on-site financial examinations; and (c) review of all new insurers.

Question 3

Section II of the Homeowners policy covers:

Answer 3

A) Coverage E Liability

Question 4

Liability for Watercraft under the Homeowners policy excludes:

• Owned inboard or inboard-outboard watercraft
• Rented watercraft exceeding 50 horsepower
• Owned or rented sailboats if 26 feet or longer
• All of the above

Answer 4

ALL OF THE ABOVE

Liability for Watercraft under the Homeowners policy excludes: (a) owned inboard or inboard-outboard watercraft; (b) rented watercraft exceeding 50 horsepower; (c) owned or rented watercraft if powered by a jet pump; (d) owned or rented sailboats if 26 feet or longer; (e) owned outboard motorized watercraft exceeding 25 horsepower excluded at inception but covered if acquired during the policy term.

Question 5

Zoe was injured in an auto accident by the negligence of a hit and run driver. Zoe’s injuries are valued at $50,000. She has PIP with a $0 deductible and has recovered $10,000 from her PIP. She has UM coverage of $10,000/$20,000.

How much is Zoe’s UM recovery?

Answer 5

$10,000

Zoe will collect $10,000 as her damages exceed her PIP. As there is no liability coverage available from the hit and run vehicle Zoe’s remaining recovery is limited to her $10,000 per person per occurrence UMBI limit.

Question 6

True or False: An insurer has 20 days from receiving formal notice from an insured to return the insured’s pro-rata premium.

Answer 6

FALSE

An insurer has 30 days from receiving formal notice from an insured to return the insured’s pro-rata pre

Question 7

True or False: The HO-6 can be taken out by a condo owner for either their own occupancy or tenant occupancy of the condominium.

Answer 7

TRUE

he HO-6 can be used for either owner occupancy or tenant occupancy.

Question 8

Under Section II of the Homeowners Insurance policy all BUT which of the following is an “insured location”?
- Newly acquired residences
- Cemetery plots
- Owned vacant land
- Residence premises not described in the
Declarations

Answer 8

RESIDENCE PREMISES NOT DESCRIBED IN THE DECLARATIONS

An “insured location” includes: (a) residence premises described in the Declarations; (b) newly acquired residences during the policy period; (c) locations where an insured is temporarily residing or has rented for non-business use; (d) vacant land owned by or rented to an insured (but not farm land); (e) insured’s land upon which a one to four family dwelling is being constructed as a residence for the insured; and cemetery plots or burial vaults.

Question 9

True or False? Section II- Liability of the Homeowners policy excludes liability coverage for damage caused by a motorized vehicle which is normally used to assist a handicapped family member if the vehicle damages property or injures third parties while not being used in it’s “assistance” capacity at the time of loss.

Answer 9

TRUE

It is true, Liability coverage is excluded if the handicapped vehicle is being used for anything other than assisting a handicapped person (including its transportation, loading, and unloading).

Question 10

Your insured has had a one vehicle accident with the roadbed.

Which coverage is the physical damage to the insured’s vehicle covered by?

Answer 10

Collision

Question 11

Seals Croft suffered $12,000 of non-permanent injuries in an accident that was Madonna Sinatra’s fault. Madonna did not carry any insurance on her vehicle. Seals has recovered for his medical expenses and lost wages under his PIP and Medical Payments coverage and has stacked UM coverage.

Answer 11

Seals cannot collect against his UM coverage

Uninsured Motorists is not compensable if it replicates payments received under PIP, Medical Payments, Workers Compensation, disability benefits or like coverage/recovery.

Question 12

Your agency has a company appointment with an insurance company owned by its policyholders, this type of insurance company is a….

Answer 12

Mutual Insurer

Question 13

Misrepresentations, omissions, concealment of facts, and incorrect statements shall not prevent a recovery under the policy or contract unless:

A) They are fraudulent
B) They are material
C) Both A & B
D) Neither A or B

Answer 13

C) BOTH A & B

Please review Unit 2.9 for a complete review.

Question 14

Michele Spicer suffered a lightning strike at her residence damaging most of her electronic equipment. She has a Homeowners policy with the Replacement Cost Endorsement on Personal Property. Michele was paid the Replacement Cost for all of her electronics less the applicable depreciation. Four months later Michele replaced all of the equipment and placed the insurance company on notice of the replacement. How will the insurer respond?

Answer 14

The insurer will pay Michele the amount previously deducted for depreciation

In the Homeowners Insurance policy an insured has up to 180 days to collect on a Replacement Cost Basis if the property that is damaged is subject to depreciation.

Question 15

Michele is injured by Ken who was at fault in an automobile accident. Michele had $6,000 in medical bills and had purchased PIP with a $250 deductible.

How much will she recover against Ken?

Answer 15

No recovery against Ken, she has recovered against her own PIP and has not pierced the monetary or verbal thresholds for action against Ken

Question 16

Write Your Own Flood programs are backed 100% by:

Answer 16

NFIP

Question 17

Mrs. Beckley, your Homeowners insured, has contacted you to file a liability claim as an invitee to her home tripped over an extension cord and hit their head on a table. She also has advised you that she spent $100 of first aid for Mrs. Beckley. How will you respond?

Answer 17

Mrs. Beckley, First Aid Expenses are reimbursable please submit copies of any receipts to the insurance company

Question 18

By listing the Loss Payee on the PAP’s Declarations page:
A) The Loss Payee is solely paid for losses incurred under Coverage D
B) The Loss Payee’s collateral is not protected
C) Both A & B
D) Neither A or B

Answer 18

D) Neither A or B

By listing the Loss Payee on the PAP’s Declarations page: (a) the Loss Payee is jointly paid with the insured for losses incurred under Coverage D, and (b) the Loss Payee’s collateral is protected.

Question 19

Your insured has had a one vehicle accident with a tree. Which coverage is the physical damage to the insured’s vehicle covered by?

Answer 19

Collision

Question 20

The PAP defines “your covered auto” as:

Answer 20

The PAP defines “your covered auto” as: (a) any vehicle shown in the Declarations, (b) a newly acquired auto, and (c) any trailer you own.

Question 21

All of the following are penalties for non-compliance with the compulsory No-Fault law except:

• Repossession of auto
• Suspension of driver’s license
• Personal liability for payment of PIP benefits
• No immunities from legal liabilities

Answer 21

Repossession of auto

All of the following are penalties for non-compliance with the compulsory No-Fault law: (a) no immunities from legal liabilities which are granted to those who do comply; (b) personal liable for payment of PIP benefits to those entitled to receive such benefits; and (c) suspension of driver’s license and vehicle registration.

Question 22

Your Homeowners insured has had a fire at her home which has rendered the home unfit for living in. Which coverage will provide temporary housing expense and ancillary cost coverage?

• Coverage A
• Coverage B
• Coverage C
• Coverage D

Answer 22

Coverage D

– Loss of Use will provide coverage for housing and additional cost.

Question 23

An insured has a $500 Franchise deductible and suffers a loss of $400; how much will the insured be paid on their claim?

• $400
• No payment will be paid
• $500
• None of the above

Answer 23

NO PAYMENT WILL BE PAID

No payment will be paid as the loss amount did not exceed the franchise deductible. If the franchise deductible had been exceeded then 100% of the loss would be paid.

Question 24

This Homeowners policy form insures condominium owners?

Answer 24

HO-6

Question 25

True or False: The Personal Articles Floater is used to insure only one class of scheduled property.

Answer 25

FALSE

Personal Articles Floater (PAF) provides the ability to insure one or many classes of scheduled property.

Question 26

The PAP insuring agreement states the policy pays on behalf of the insured money damage for which the insured is legally liable to others for:
 A) Personal injury
 B) Bodily injury
 C) Property Damage
 D) Both B & C

Answer 26

D) BOTH B & C

The Liability coverage afforded under the PAP pays on behalf of the insured money damages for which the insured becomes legally liable to others for bodily injuries or property damages including the expenses for a legal defense.

Question 27

The Citizens commercial property policy will cover a commercial building if the mercantile occupancy does not exceed ___%.

• 10%
• 25%
• 50%
• 75%

Answer 27

25%

The Citizens commercial property policy will cover a commercial building if the mercantile occupancy does not exceed 25%.

Question 28

In the DP-1 “Other Coverages”:

• Increase the limits of insurance for each coverage
• Do not increase the limits of insurance for each coverage
• The policy does not have any “Other Coverages”
• None of the above

Answer 28

DO NOT INCREASE THE LIMITS OF INSURANCE FOR EACH COVERAGE

Question 29

Jerry was permanently injured in an auto accident by the negligence of George. Jerry’s injuries are valued at $250,000. Jerry has PIP with a $500 deductible and has recovered $10,000 from PIP. He has UM coverage of $50,000/$100,000. George has a liability insurance policy with limits of 10,000/20,000/$10,000.

What amount will Jerry’s receive from his own UMBI coverage?

• 9,500
• 10,000
• 50,000
• 250,000

Answer 29

$50,000

Question 30

The PAP’s Medical Payments coverage is ______ when occupying owned automobile and when occupying non-owned autos.

Answer 30

PRIMARY & EXCESS

Medical Payments coverage is primary when occupying owned automobile and excess when occupying non-owned autos.

Question 31

Under the PAP definitions “your covered auto” includes all BUT which of the following?

Question 32

Which of the following is NOT a “type” of a General Lines License?

• Personal Lines Agent
• Limited Customer Service Representative
• Title Agent
• Customer Representative

Answer 32

Title Agent

Title Agent is not one of the “types” of General Lines Licenses. Review the Unit on Preparing for the state Licensing Exam for more information if you got this one incorrect.

Question 33

David was permanently injured in an auto accident by the negligence of Goliath. David’s injuries are valued at $300,000. David has PIP and has recovered his full $10,000 limit, and he has $300,000 of single limit UM coverage. Goliath has a liability insurance policy with limits of 50,000/100,000/$50,000.

How much is David’s UM recovery?

Answer 33

$240,000

David will collect $240,000 ($300,000 in injuries compensable at $10,000 of PIP; $50,000 of BI coverage from Goliath; with the balance compensable under UMBI).

Question 34

True or False? Flood insurance policies NEVER utilize Replacement Cost as a valuation method.

Answer 34

FALSE

Polices for single family building losses of a principal residence or residential condominium building association policies utilize RCV.

Question 35

True or False? A loan officer may solicit or sell insurance in connection with a loan or she may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.

Answer 35

FALSE

A loan officer of a financial institution who is involved in the application, solicitation, or closing of a loan transaction may not solicit or sell insurance in connection with the same loan, but such loan officer may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.

Question 36

Mrs. Brown has contacted to ask how much coverage her Homeowner’s policy has for theft of firearms as she is considering purchasing a gun collection. How will you advise her?

Answer 36

Tell Mrs. Brown that the policy covers up to $2,500 for theft of firearms.

Question 37

This Form is written in specific coverage limit combinations in flood zones B, C, and X:

Answer 37

Preferred Risk Policy

Question 38

An insured with a Dwelling Fire policy has come to the office to file a claim with the following property damaged: (a) valuable papers, (b) stamps, and (c) money – how will the policy respond?

Answer 38

The policy will not pay for the loss as all three classes of property are excluded

Read Section 4.7 for a complete review.

Question 39

A Customer Representative may only perform customer representative duties:

Answer 39

as to the specific general lines insurance products which their supervising, General Lines Agent, is actually then appointed by an insurer to handle

Question 40

Your insured has a Dwelling Policy with the Broad Form Theft endorsement and want to know how much coverage she will have for jewelry. You tell her she will have $____ coverage.

Answer 40

$1,500

The Broad Form Theft endorsement provides $1,500 coverage for jewelry.

Question 41

Your insured operates his consulting business from home. Several clients come to his house on a daily basis. Which Homeowners endorsement can be applied to his policy to cover this exposure?

Answer 41

Business Pursuit endorsement

Question 42

Unfair discrimination includes…

Answer 42

Knowingly making or permitting any unfair discrimination between individuals of the same actuarially supportable class

Read F.S. 626.9521 for a complete review.

Question 43

Which of the following is/are an Additional Coverage under Section II of the Homeowners policy:

• First Aid Expenses
• Damage to Property of Others
• Loss Assessment
• All of the above

Answer 43

All of the above

The four Additional Coverages under Section II of the Homeowners policy are: First Aid Expense, Claims Expenses, Damage to the Property of Others, and Loss Assessment.

Question 44

Liability insurance responds on behalf of an Insured’s liability to an ___________.

• Insured
• Other Party
• Insurer
• All of the above

Answer 44

All of the above

Liability insurance responds on behalf of an insured’s liability to an “other party”.

Question 45

The HO-3 policy has $____ of coverage for trailers not used with watercraft.

Answer 45

$1,500

The HO-3 policy has $1,500 of coverage for trailers not used with watercraft.

Question 46

This PAP endorsement Provides Liability coverage for a non-owned automobile furnished or available for the regular use of the insured:

Answer 46

Extended Non-owned Coverage

The Extended Non-owned Coverage –provides Liability coverage (and optionally, Medical Payments) for a non-owned automobile furnished or available for the regular use of the insured.

Question 47

An Inland Marine policy covering Jewelry covers newly acquired property with:

A) No coverage
B) 30 days automatic coverage
C) 25% of the coverage limit up to $10,000
D) Both B & C

Answer 47

D) Both B & C

Newly acquired property: 30 days automatic coverage for same class property for 25% of the coverage limit, $10,000 maximum.

Question 48

Zoe Kenney’s hot water tank developed a leak while she was on vacation. As a result her home suffered some mild water damage to the flooring but substantial damage to several expensive pieces of furniture. Her Homeowners policy has the Replacement Cost Endorsement for Coverage C Personal Property. Zoe replaced her flooring immediately and was paid the full replacement cost. She did not immediately replace the furniture and was compensated at its depreciated replacement value. Seven months later Zoe has found the perfect replacements and she has purchased them and placed the insurer on formal notice of her replacement. How will the insurer respond?

Answer 48

The insurer will pay Zoe nothing as an insured has only 180 days after the notice of loss to submit receipts for replacement as a valuation method to apply

Question 49

An agent has charged an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. This is known as…

Answer 49

Sliding

Read F.S. 626.9521 for a complete review.

Question 50

The PAP’s Medical Payments coverage is ______ when occupying owned automobile and when occupying non-owned autos.

Answer 50

Primary and Excess

Medical Payments coverage is primary when occupying owned automobile and excess when occupying non-owned autos.

Question 51

True or False: The Personal Inland Marine policy covers Golfer’s Equipment on a blanket basis.

Answer 51

True

The Personal Inland Marine policy covers Golfer’s Equipment on a blanket basis.

Question 52

True or False? The Dwelling policy’s Coverage A Dwelling includes additions in contact with the dwelling building.

Answer 52

True

The Dwelling policy’s Coverage A Dwelling includes additions in contact with the dwelling building.