Chapter 6. Florida Statutes, Rules and Regulations Pertinent to General Lines Insurance Flashcards
What is the maximum service charge a general lines agent may charge per installment for financial insurance premiums?
A. $10
B. $3
C. $1
D. $2
B. $3
A general lines agent may make a service charge of up to $3 per installment (for a maximum of $36 per year) for financial insurance premiums on policies issued by the agent.
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured’s building, and $30,000 of expediting expenses, how much will the insured collect under the policy?
A. $100,000
B. $180,000
C. $200,000
D. $175,000
D. $175,000
The limit of the equipment breakdown policy applies to property of the insured, property of others, and expediting expenses in any combination as long as expediting expense does not exceed $25,000.
Al, permanently injured by Jim in an accident, has total damages of $60,000. Al has PIP and Uninsured Motorist coverage of $100,000. Jim has the minimum limit of liability required by Florida. How much would Al collect under U/M?
A. $20,000
B. $40,000
C. $50,000
D. $60,000
B. $40,000
U/M is not intended to duplicate payments otherwise available. Al could recover $10,000 from PIP, $10,000 (the per person limit under Jim’s policy), and $40,000 from his U/M coverage.
In Florida, the Financial Responsibility Law is administered by
A. State Attorney General.
B. Florida No-Fault Motor Vehicle Commission.
C. The Department of Financial Services.
D. Department of Highway Safety and Motor Vehicles.
D. Department of Highway Safety and Motor Vehicles.
Which of the following may qualify for a reduction of premium on a personal auto policy?
A. A driver who has been with the insurer for more than 3 years
B. A mature driver, age 55 or older
C. A driver who pleaded nolo contendere to a moving traffic violation
D. A driver of any age without any accidents
B. A mature driver, age 55 or older
According to Florida state law, before demanding litigation, parties may demand mediation for all of the following EXCEPT
A. Property damage claim arising out of the operation or use of a motor vehicle.
B. Personal injury claims filed for $15,000 or more.
C. Property damage claims arising from the ownership or maintenance of a motor vehicle.
D. Personal injury claims filed for $10,000 or less.
B. Personal injury claims filed for $15,000 or more.
Prior to demanding litigation, either party may demand mediation of any personal injury claim filed for an amount of $10,000 or less, or any property damage claim arising out of the ownership, operation, use, or maintenance of a motor vehicle.
What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent?
A. Relative degree of damage statute
B. Comparative negligence
C. Proximate cause
D. Contributory negligence
B. Comparative negligence
The limited fungi, wet or dry rot, or bacteria coverage endorsement applies to which type of losses?
A. Property and personal injury
B. Personal effects and liability
C. Liability and personal articles
D. Property and liability
D. Property and liability
This endorsement applies to both property and liability losses.
How long must an insurer maintain flood insurance rate records?
A. 30 days
B. 1 year
C. 2 years
D. 60 days
C. 2 years
Which of the following is exclusively self-appointed?
A. An independent adjuster
B. An all-lines adjuster
C. A public adjuster
D. An exclusive adiuster
A. An independent adjuster
Which of the following would NOT be classified as a result of catastrophic ground cover collapse?
A. Damage to property contents
B. Visible depressions
C. Condemned structures
D. Structural damages
A. Damage to property contents
Which of the following adjuster appointment types is required to file a surety bond with the Department of Insurance?
A. Independent adjuster
B. All-lines adjuster
C. Public adjuster
D. Nonresident adjuster
C. Public adjuster
Public adjuster applicants must file a surety bond in the amount of $50,000
to the Department of Insurance.
Florida’s UM law requires that every auto policy that provides primary liability coverage for a specific motor vehicle must include “stacked” UM at the same limits as apply for liability coverage, unless the insured, in writing
A. Elects UM coverage at limits lower than those that apply to liability.
B. Any of the above.
C. Rejects the UM coverage.
D. Elects “nonstacked” UM coverage.
B. Any of the above.
Florida has a compulsory No-Fault Motor Vehicle Law that requires that PIP insurance be carried by the owners of motor vehicles, and imposes penalties for failing to do so, unless specifically exempt. PIP provides all of the following benefits EXCEPT
A. Medical.
B. Third party death benefit.
C. Work loss.
D. Replacement services.
B. Third party death benefit.
Unless their a Florida resident struck by a car as a pedestrian.
Equipment breakdown coverage is written with a single limit of insurance per accident. However, what is the sublimit for hazardous substance cleanup, or repair or replacement of contaminated property?
A. $25,000
B. $15,000
C. $20,000
D. $50,000
A. $25,000
What types of structures are eligible for coverage in the Citizens Property Insurance Corporation?
A. All types of structures
B. Mobile homes only
C. Frame single-family dwellings only
D. Commercial buildings only
A. All types of structures
All types of buildings may be insured, including mobile homes if tied down in accordance with statutory requirements.
What is the minimum required amount of insurance for personal injury protection
(PIP) for vehicles registered and licensed in this state?
A. $5,000
B. $50,000
C. $10,000
D. $100,000
C. $10,000
Persons in Florida owning a self-propelled vehicle having four or more wheels and that is registered and licensed in the state are required to have continuous insurance that includes a minimum of $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL).
FAJUA (Florida Automobile Joint Underwriting Association) is available for persons unable to purchase auto insurance through the standard markets. All of the following statements concerning FAJUA are TRUE, EXCEPT
A. Agents do not have binding authority.
B. Private passenger autos are eligible for liability coverage with limits up to 100/300/50, PIP, U/M.
C. Each licensed agent in Florida is assigned to one of the servicing carriers with which the agent places all risks to be insured in FAJUA.
D. Coverage is available to military nonresidents stationed in Florida.
A. Agents do not have binding authority.
All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT
A. Dune buggies
B. Motorcycles
C. Golf carts
D. Rented recreational vehicles
D. Rented recreational vehicles
To satisfy Florida Financial Responsibility Law requirements, an automobile liability policy must be written with limits not less than
A. 10/10/20
В. 10/20/5
C. 10/20/10
D. 10/20/20
C. 10/20/10
Which of the following types of property are covered in any of the homeowners coverage forms?
A. Landlord furnishings in an on-premises apartment.
B. Structures rented to others who are not tenants of the dwelling, other than a garage.
C. Animals, birds or fish.
D. Structures used for business purposes.
A. Landlord furnishings in an on-premises apartment.
For up to $2500
What organization offers coverage on properties in areas of Florida deemed especially susceptible to windstorm damages?
A. Residents Property and Liability Corporation
B. Florida Workers Compensation Joint Underwriting Association
C. Citizens Liability Insurance Corporation
D. Citizens Property Insurance Corporation
D. Citizens Property Insurance Corporation
Citizens Property Insurance Corporation (formerly Florida Windstorm
Underwriting Association (FWUA)) is an organization created to offer coverage on properties in areas of Florida deemed especially susceptible to windstorm damages. Windstorm and hail are the only perils provided coverage.
An insured’s driver’s license was revoked 90 days after his auto insurance policy was issued. If the insurer chooses to cancel the auto insurance policy, it must give the insured a minimum of how many days’ notice?
A. 10 days
B. 30 days
C. 45 days
D. 60 days
C. 45 days
Which of the following types of private flood insurance provides coverage equivalent to that provided by the National Flood Insurance Program (NFIP)?
A. Standard flood insurance
B. Supplemental flood insurance
C. Flexible flood insurance
D. Preferred flood insurance
A. Standard flood insurance
Within how many days must a property insurer pay on a claim after the settlement is reached?
A. 10 days
B. 60 days
C. 20 days
D. 30 days
C. 20 days
How many subplans does the Florida Workers Compensation Joint Underwriting Association have?
A. 4
B. 3
C. 2
D. 5
A. 4
All FWCJUA insureds are assigned to one of 4 subplans: Subplans A - D
For cancellation of a commercial property policy during the first 60 days, for a reason other than nonpayment of premium, the insurer must give the insured advance written notice of at least how many days?
A. 45 days
B. 20 days
C. 30 days
D. 10 days
B. 20 days
All of the following are excluded in the equipment breakdown basic policy EXCEPT
A. Business interruption.
B. Loss of power, lights, heat, steam, or refrigeration.
C. Explosion of Steam Boilers.
D. Ordinance or law coverage.
C. Explosion of Steam Boilers.
Which one of the following statements regarding coverage for the flood and earthquake perils is true?
A. These perils are uninsurable.
B. Flood insurance is available through a government program;
earthquake insurance is available by endorsement or through a separate policy.
C. Flood and earthquake coverage is available only by endorsement.
D. Flood and earthquake coverage is available only through the government.
B. Flood insurance is available through a government program;
earthquake insurance is available by endorsement or through a separate policy.
When an insurer plans to nonrenew a commercial property insurance policy, it must give the policyholder a written notice of its intent to nonrenew at least how many days in advance?
A. 10 davs
B. 30 day
C. 60 days
D. 45 days
D. 45 days
What is the maximum limit of liability that is available under the Florida Automobile
Joint Underwriting Association?
A. 50/100/25
B. 100/300/50
C. The minimum limits required to meet Florida financial responsibility laws
D. 25/50/10
B. 100/300/50
Coverage under the Florida’s Workers Compensation Joint Underwriting Association becomes bound at what time following the date of receipt?
A. 12:00 p.m.
B. 12:01 p.m.
C. 12:00 a.m.
D. 12:01 a.m.
D. 12:01 a.m.
In what area is coverage available through the Citizens Property Insurance Corporation?
A. Coastal areas only
B. Defined areas
C. Rural areas only
D. Statewide
B. Defined areas
Employers unable to purchase workers compensation coverage in the voluntary market due to the high-risk nature of their work may be eligible for coverage under the Florida’s Workers Compensation
Joint Underwriting Association if assigned to
A. Subplan A.
B. Subplan C.
C. Subplan B.
D. Subplan D.
C. Subplan B.
All of the following are eligibility requirements for coverage under the Florida Workers Compensation
Joint Underwriting Association (FWCJUA) EXCEPT
A. Employer must have at least 30 eligible employees.
B. To bind coverage, the employer must pay a deposit premium.
C. Employer must not be indebted for any previous workers compensation premium to any carrier.
D. Employer must have been rejected for coverage by two other carriers in the normal market.
A. Employer must have at least 30 eligible employees.
There are no restrictions on the number of employees
Which of the following statements is INCORRECT with regard to surplus lines insurance?
A. Business placed with a surplus lines insurer is subject to a premium tax that must be collected by the broker.
B. Policies written by a surplus lines insurer typically contain standard coverages and forms.
C. To sell surplus lines insurance, the licensee must obtain a surplus lines broker’s license.
D. Before coverage is placed with a surplus lines company, diligent effort must be made to place the risk with admitted insurers.
B. Policies written by a surplus lines insurer typically contain standard coverages and forms.
