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20-44 License > Cert Exam > Flashcards

Cert Exam Flashcards

1
Q

With regard to binders, which of the following statements is correct?

A

A binder may be canceled by the insured with 2 days’ notice

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2
Q

The attempt to restore an insured to their pre-loss condition is known as:

A

Indemnification

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3
Q

A hurricane occurrence:

A

Begins when a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service

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4
Q

Answers to specific questions on an insurance application that are guaranteed to be true best defines:

A

Warranties

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5
Q

Which homeowner policy form is for dwelling owners who do not wish to insure their older homes for replacement cost?

A

HO-8

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6
Q

All of the following are minimum financial responsibility limits of liability for automobile insurance in Florida for the owner of a motor vehicle, except:

A

$20,000 property damage

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7
Q

Which action would not constitute an unfair claim settlement practice on the part of an insurance company in its claim handling or processing?

A

Offering an insured a prompt explanation in denial of a claim or offer of compromise

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8
Q

All of the following are correct regarding the Florida Insurance Guaranty Association, except:

A

The association is responsible for penalties and interest

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9
Q

An agreement between 2 parties enforceable by law describes:

A

An insurance contract

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10
Q

An insurance agent is in the habit of offering potential clients a 10% premium discount on the first year’s premium if they will buy their insurance from him instead of one of his competitors. The agent is guilty of:

A

Rebating

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11
Q

Liability coverage is excluded under a personal auto policy for ownership, maintenance, or use of all of the following, except:

A

Off-road vehicle used by insured in an emergency

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12
Q

The federal act that protects consumer privacy by ensuring that data collected is confidential, accurate and used for a proper and specific purpose is the:

A

Fair Credit Reporting Act

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13
Q

After the first 24 hours, the Earthquake Endorsement covers damage for how many additional hours?

A

48

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14
Q

All of the following are examples of sliding, except:

A

Charging an applicant for an additional product when in fact, the applicant is aware of and agrees to the additional product

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15
Q

By what other name is the Dwelling Form DP-2 known?

A

Broad Form

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16
Q

When must an insurable interest exist in a property policy?

A

At the time of application

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17
Q

How many credit hours of continuing education must a new agent complete every 2 years?

A

24 (19 elective with 5 hours of law and ethics)

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18
Q

Which of the following is an example of a peril?

A

Gasoline stored on the premises

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19
Q

A reinsurance agreement that allows ceding and reinsurance companies the opportunity to negotiate coverage for individual risks is a:

A

Facultative Agreement

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20
Q

For insurance purposes, an unfurnished beach house is considered ____________ because no one is living there.

A

Vacant

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21
Q

A continuous or repeated exposure is a condition describing which of the following?

A

Occurrence

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22
Q

A continuous or repeated exposure is a condition describing which of the following?

A

Occurrence

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23
Q

Under the Personal Auto Policy, the definition of bodily injury includes all of the following, EXCEPT:

A

Loss of property use

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24
Q

Which of the following Forms provides open perils coverage for Coverages A and B?

A

HO-3

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25
Q

The price a willing buyer will pay for a property from a willing seller is:

A

Market value

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26
Q

If an insured’s claim was denied, the mortgagee can collect under the policy as long as the mortgagee meets all of the following requirements, except:

A

Hire a private investigator to follow the insured

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27
Q

Which condition provides the insurer the right to collect against a responsible third party?

A

Subrogation

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28
Q

Which vehicle would NOT be a covered auto under the Personal Auto Policy?

A

A new vehicle acquired during the policy period as long as coverage is requested within 45 days of taking ownership

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29
Q

All of the following perils are automatically covered under the DP-3 policy, except:

A

Theft of contents

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30
Q

Which peril is covered under the Dwelling Form DP-1?

A

Lightning

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31
Q

Whose consent is required to transfer or assign interest in an insurance contract to another?

A

The mortgagee

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32
Q

Evidence that specific types of insurance were purchased by the insured at certain limits on a specific date is called a:

A

Certificate of Insurance

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33
Q

Which of the following forms is known as the Unit-Owners Form?

A

HO-6

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34
Q

The “broad form” is also known as the:

A

DP-2

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35
Q

Which provision requires the insured to maintain a certain limit of insurance?

A

Coinsurance

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36
Q

What is an inherent vice?

A

A quality within property that causes it to damage or destroy itself

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37
Q

Which vehicle is considered a temporary substitute auto?

A

A dealer’s loaner car used while the insured’s auto is being repaired

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38
Q

Which part of an insurance policy describes the rules that the insured and insurer have agreed to follow?

A

Conditions

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39
Q

When is insurable interest required to exist on a property policy?

A

At the time of loss

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40
Q

Which provision encourages the insured to maintain a certain limit of insurance?

A

Coinsurance

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41
Q

Which loss would NOT be covered by the National Flood Insurance Program?

A

Water main break

42
Q

Which term describes the cost to replace property minus the deduction for depreciation?

A

Actual cash value

43
Q

An award to an injured party for compensatory damages of losses that cannot be assigned a specific dollar value are known as

A

General damages

44
Q

Attachments that broaden or amend coverage in a property or casualty policy are known as:

A

Endorsements

45
Q

All of the following are duties of the insured following a loss, except:

A

Separate damaged from undamaged property

46
Q

A Florida insurer must give the named insured at least ______ days’ advance written notice of nonrenewal:

A

20

47
Q

What Specifies that the insured may not transfer rights of ownership without the insurer’s prior written consent?

A

Assignment

48
Q

ABC Insurer sends Marie a letter advising her that her policy will expire at the end of the policy term. This describes which of the following:

A

Termination

49
Q

Which of the following types of risk are insurable?

A

Pure

50
Q

How is the limit of liability applied under Coverage E of the Homeowners Policy?

A

Per occurrence

51
Q

Which tort is unintentional?

A

Negligence

52
Q

Which of the following is not an element of a legally enforceable contract?

A

Negotiation

53
Q

The insured has an auto policy with liability limits of $30,000/$60,000/$10,000. He negligently runs off the road and causes $70,000 damage to an apartment building. How much will the policy pay?

A

10,000

54
Q

Which type of coverage will replace damaged or destroyed property with the equivalent at current cost?

A

Replacement cost

55
Q

Who are the owners of a mutual insurance company?

A

Policyholders

56
Q

Which term refers to the termination of a policy before its expiration date?

A

Cancellation

57
Q

The Personal Articles Floater provides for all of the following, except:

A

Insures commercial property

58
Q

All of the following are correct regarding hurricane deductibles in Florida, except:

A

Changes to the percentage of deductible may be implemented at any time during the calendar year

59
Q

Which of the following Forms provides open perils coverage for Coverages A, B, and C?

A

HO-5

60
Q

A written notification provided by the insured to an insurer that specifies the details about the time, place and circumstances surrounding a loss is a:

A

Notice of Loss

61
Q

Which of the following is NOT a purpose of licensing?

A

To facilitate the public supervision of such activities in the public interest

62
Q

Market conduct examinations are:

A

Conducted to ensure compliance with statutes and rules

63
Q

An agent must communicate with the Department regarding any change in address within ___ days.

A

30 days

64
Q

Which coverage is provided under Part B of the Personal Auto Policy?

A

Medical payments

65
Q

A policy that insures one dwelling for a single limit of $150,000 is an example of which property insurance limit?

A

Specific

66
Q

The right of the insurer to take possession of damaged property after paying for its loss is called:

A

Right of salvage

67
Q

Which of the following forms provides named perils coverage to the owner of a condominium or cooperative unit?

A

HO-6

68
Q

Perils that are not covered by the policy are listed in the which section?

A

Exclusions

69
Q

Gambling is an example of which type of risk?

A

Speculative

70
Q

A nonadmitted insurer is a company:

A

Organized in another state in which its home office is located

71
Q

An insured and insurer will utilize which of the following when they are unable to agree on the amount of a claim to be paid?

A

Appraisal

72
Q

An insured has an automobile policy with bodily injury limits of $100,000/$300,000. Two persons are struck by the insured’s auto and are awarded $15,000 and $90,000 respectively. How much will the insured’s automobile policy pay?

A

$105,000, plus defense costs

73
Q

All of the following may be considered to be an uninsured motorist, except:

A

A person borrowing the auto with permission

74
Q

An insurance company is considered a domestic insurer in Florida if it is:

A

Organized and admitted in Florida

75
Q

Under Section II of the Homeowners Policy, who is NOT an insured?

A

A friend residing in your home

76
Q

Which concept is designed to eliminate small claims and help in reducing the cost of insurance?

A

Deductibles

77
Q

Which part of the insurance contract specifies the risks the policy will not cover?

A

Exclusions

78
Q

A policy form that alters or adds to the provisions of a property and casualty insurance contract is a(n):

A

Endorsement

79
Q

An auto insurance policy must provide personal injury protection to all of the following, except:

A

The thief of a stolen vehicle

80
Q

A formal statement made by the insured that provides necessary details for the insurer to determine liability under a policy is a:

A

Proof of loss

81
Q

The Department of Financial Services has the power to do all of the following, except:

A

Regulate the state Medicaid program

82
Q

All of the following are a regulatory concern with unlicensed entities transacting insurance business in Florida, except:

A

State or federal guaranty funds will cover unpaid claims of unlicensed entities as a priority

83
Q

Which peril is NOT covered under Part D of the Personal Auto Policy?

A

Road damage to tires

84
Q

The scrap value of damaged property is the:

A

Salvage value

85
Q

Marie was mugged on the street when a stranger grabbed her purse and threatened to knock her down. This act describes which of the following?

A

Robbery

86
Q

An applicant for general and personal lines licensing must qualify by all of the following, except:

A

Be at least age 21

87
Q

Under Homeowners Section II, Damage of Property to Others pays up to:

A

$1,000

88
Q

What is another name for the Homeowners Form HO-5?

A

Comprehensive form

88
Q

What is another name for the Homeowners Form HO-5?

A

Comprehensive form

89
Q

What is NOT a supplementary payment under Section II of the Homeowners Policy?

A

Expenses incurred by the insured at the insurer’s request

90
Q

Lightning strikes a home and starts a fire that destroys the structure and its contents. The lightning is the:

A

Pure Risk

91
Q

Which of the following terms describes an insurance company that has been organized outside the United States or its possessions?

A

Alien

92
Q

Liability involving a degree of negligence that is established by a court of law, best describes:

A

Contributory negligence

93
Q

The liability assigned to one party for the conduct of another, based solely on a relationship between the two is:

A

Vicarious liability

94
Q

A licensed individual who is limited to transacting business related to property and casualty insurance sold to individuals and families for noncommercial purposes is a:

A

Customer Service Representative

95
Q

What is the definition of risk?

A

The chance of a loss

96
Q

An award to an injured party for compensatory damages of actual known expenses such as loss of earnings is known as:

A

Special damages

97
Q

Choose the FALSE statement about mobile home insurance:

A

The mobile home and contents may be written only on a named peril basis

98
Q

What is another name for the Homeowners Form HO-4?

A

Tenants Form

99
Q

Catastrophic Ground Cover Collapse is geological activity that results in all of the following, except:

A

Structural damage to the covered building

100
Q

All of the following statements are correct regarding the treatment of motorcycles, except:

A

A helmet is required for all riders in Florida

20-44 License (11 decks)

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