Comprehensive Exam

Question 1

When a policy covers the peril of Windstorm or Hail, a risk may be eligible for a credit to the wind portion of the premium. Which of the following do these credits NOT apply to?

Answer 1

Flooring

Question 2

Which is the best description of punitive damages?

Answer 2

Punitive damages are assessed as a punishment for extremely objectionable conduct by a negligent party

Question 3

An insured placed with the FAJUA must be notified in writing that the insurance coverage is not through the private market within _________ of placement

Answer 3

10 days

Question 4

Which type of insurance provides coverage when insurance is not available from an admitted carrier?

Answer 4

Surplus

Question 5

What is the principle of liability that imposes legal liability for injury and damage by products?

Answer 5

Strict liability

Question 6

What determines whether an action is a negligence action?

Answer 6

The substance of the action

Question 7

Which of the following is true regarding the Fine Arts Floater?

Answer 7

It covers such items as paintings, rare manuscripts and antiques

Question 8

Of the following statements concerning Homeowners policies, which is correct?

Answer 8

Borrowed property meets the definition of contents

Question 9

Which of the following applies when two parties rely upon the promises of the other?

Answer 9

Concept of utmost good faith

Question 10

Which of the following special limits of liability is provided under Coverage C?

Answer 10

Theft of furs are covered up to $1,500

Question 11

Under Part A of the Personal Auto policy, which of the following would be covered?

Answer 11

Damage to a parked car

Question 12

All of the following would be included in the definition of insured location, except:

Answer 12

A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds

Question 13

W plays hockey on the weekends and was injured while defending the goal. Which of the following defenses could the owner of the ice rink use to avoid liability for W’s injuries?

Answer 13

Assumption of risk

When a person participates in an activity where a certain type of injury may occur, the person assumes that risk.

Question 14

Most of H’s jewelry is covered under the Coverage C special limits of H’s Homeowners Policy, except for a $10,000 necklace inherited from H’s mother. Which of the following endorsements might H’s agent recommend?

Answer 14

Scheduled Personal Property

Question 15

Which of the following vehicles is not considered an uninsured vehicle under Part C of the PAP?

Answer 15

A vehicle owned by the government

Question 16

For an antique insured under a Personal Articles Floater, coverage would not be provided for damage caused by:

Answer 16

Damage caused by the insured during a heated argument

Question 17

Liability coverage is designed to:

Answer 17

Protect the insured from bodily injury and property damage they are legally obligated to pay

Question 18

Under the Dwelling Policy, household and personal property, including property in transit between the insured’s old and new residences, are covered under:

Answer 18

Coverage C

Question 19

The insured is not required to do which of the following in the event of a property claim?

Answer 19

Notify police, whether or not a law has been broken

Question 20

Actual Cash Value is best defined as which of the following?

Answer 20

Today’s current price, minus depreciation

Question 21

Which vehicle would not be covered under a Personal Auto Policy with no added endorsements?

Answer 21

A motorcycle

Question 22

Which provision specifies that no coverage applies if the loss benefits a person who has care, custody, or control of the insured’s property?

Answer 22

No Benefit to Bailee

Question 23

A proof of loss must be provided to the insurer within _____ days of a homeowner loss.

Answer 23

90

Question 24

The Additional Coverages part of a property insurance policy provides:

Answer 24

Coverage that supplements the basic coverages in the insuring agreement which is automatically included without an additional premium

Question 25

The Financial Services Commission:

Answer 25

Protects the public through oversight of insurance company solvency The Financial Services Commission is made up of the Governor, Chief Financial Officer, Attorney General, and Commissioner of Agriculture, and appoints the Commissioner of the Office of Insurance Regulation. The Financial Services Commission does not directly regulate financial planners.

Question 26

Which of the following is not an eligible vehicle for coverage under the Personal Auto Policy?

Answer 26

Pick-up with gross vehicle weight of 12,000 lbs.

Question 27

All of the following are true of the Dwelling Special Form, except

Answer 27

Both the dwelling and contents are covered on an open perils basis

Question 28

Which of the following statements is false regarding the Florida Automobile Joint Underwriting Association (FAJUA)?

Answer 28

The FAJUA provides automobile liability insurance when an insurer becomes insolvent

Question 29

Which of the following is true regarding a negligence claim?

Answer 29

The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages

Question 30

Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants?

Answer 30

Combined single limit

Question 31

The loss of property when the cause of loss is not known is considered:

Answer 31

Mysterious disappearance

Question 32

Choose the claim that is not covered under the Dwelling Broad Form (DP-2).

Answer 32

Theft of personal property at the insured premises

Question 33

Choose the statement that is false regarding the Citizens Property Insurance Corporation.

Answer 33

Mobile homes are not eligible for coverage even if used as dwellings

Question 34

Which of the following vehicles is not considered an uninsured vehicle?

Answer 34

A vehicle owned by the government

Question 35

Which of the following does not pay regardless of fault?

Answer 35

Uninsured Motorist Bodily Injury

Question 36

Detached structures on the insured premises are included in which coverage under a Dwelling Policy?

Answer 36

Coverage B

Question 37

Which of the following is included in the Personal Auto Policy's coverage territory?

Answer 37

The U.S., its territories, Canada, and Puerto Rico

Question 38

Under a policy with limits of 25/50/10, what would be the insurer's liability arising out of a single accident where claimant A has injuries in the amount of $25,000; claimant B, $20,500; and claimant C $4,000?

Answer 38

$49,500 The policy would pay up to the BI limit of $25,000 for A; $20,500 for B; and $4,000 for C. $25,000 + $20,500 + $4,000 = $49,500.

Question 39

An insurer that is not approved by the state Department of Insurance to transact insurance is called which type of insure

Answer 39

Non-admitted

Question 40

Which of the following is the best definition of Actual Cash Value in property insurance?

Answer 40

Replacement cost minus depreciation

Question 41

Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy?

Answer 41

Coverage includes injuries suffered by someone using a covered vehicle without permission Coverage does not apply when a person is using the vehicle without permission.

Question 42

M has a liability policy insuring M's flower shop. After M sells the shop, the buyer asks if M can transfer the liability policy as part of the sale. Which provision prevents M from making this transfer without the insurer's consent?

Answer 42

Assignment

Question 43

Wet leaves on a sidewalk are considered a:

Answer 43

A physical hazard Leaves that have fallen and gotten wet through natural causes increase the chance of a loss. They are an example of a physical hazard.

Question 44

which of the following prevents all recovery for injuries if the claimant was also considered partially negligent?

Answer 44

Contributory negligence

Question 45

The maximum amount a policy will pay in the event of a loss, regardless of the number of insureds, claims made, lawsuits filed, or parties making claims is the:

Answer 45

Limit of liability

Question 46

The maximum amount a policy will pay in the event of a loss, regardless of the number of insureds, claims made, lawsuits filed, or parties making claims is the:

Answer 46

Limit of liability

Question 47

Which of the following claims would be insured under Uninsured Motorists Coverage?

Answer 47

The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver

Question 48

Which of the following statements about liability insurance is false?

Answer 48

Bodily injury includes personal injury, sickness, and disease Bodily injury does not include personal injury.

Question 49

Estoppel is defined as which of the following?

Answer 49

Estoppel prevents a party from denying a fact, if the fact was admitted to be true by a previous action

Question 50

When a loss occurs as a result of two perils, one of which is excluded and the other of which is insured against, the situation is known as:

Answer 50

Concurrent Causation

Question 51

Which of the following risks may be protected against by insurance?

Answer 51

Pure Risk

Question 52

The Personal Auto Policy's definition of family member includes:

Answer 52

A person related to the named insured who is a resident of a household (including a foster child)

Question 53

Which of the following places insurance with a non-admitted insurer when insurance cannot be placed with an admitted insurer?

Answer 53

Surplus Lines producer

Question 54

Which of the following defines a tort?

Answer 54

A wrongful act

Question 55

Risk is defined as:

Answer 55

Uncertainty or chance of loss

Question 56

Which of the following statements regarding the Part A limit of liability under the Personal Auto Policy is FALSE?

Answer 56

If the loss is covered under more than one Part of the policy, payment will be duplicated

Question 57

The Personal Auto Policy applies:

Answer 57

Only in the U.S., its territories, Canada, and Puerto Rico

Question 58

Which of the following is not considered unethical as described in the Unfair Trade and Marketing Practices?

Answer 58

Representation

Question 59

Who among the following applicants for a motorcycle license would be required to complete a motorcycle education course?

Answer 59

First-time applicants under the age of 21

Question 60

Which description applies to general damages?

Answer 60

Compensation to an injured party for pain, suffering, mental anguish, disfigurement and similar types of losses

Question 61

Which of the following best describes a direct loss?

Answer 61

Water damage resulting from a burst pipe

Question 62

An insured should not profit from an insurance transaction. This describes which of the following principles?

Answer 62

The principle of indemnity

Question 63

When filing a claim, the insured is required to do all of the following, except

Answer 63

Hire an appraiser

Question 64

All of the following are methods of loss valuation, except:

Answer 64

Blanket value

Question 65

Which of the following best describes a liability policy that is written on a primary basis?

Answer 65

It is the policy that pays first with respect to other policies

Question 66

Which of the following is a physical hazard?

Answer 66

Uneven pavement in a sidewalk

Question 67

Coverage for a catastrophic ground cover collapse is provided:

Answer 67

For no additional premium Coverage for a catastrophic ground cover collapse must be provided, but no additional premium is necessary unless sinkhole coverage is also chosen.

Question 68

Theft is specifically defined as:

Answer 68

Any act of stealing

Question 69

A person must maintain proof of financial responsibility if physically present within Florida for more than how many days during the preceding 365 days?

Answer 69

90

Question 70

Personal injury liability includes which of the following?

Answer 70

Libel and slander

Question 71

Which of the following reduces an award in proportion to the amount of negligence?

Answer 71

Comparative negligence

Question 72

the type of absolute liability that applies to products is called:

Answer 72

Strict liability

Question 73

An insured owns a home with a replacement cost of $300,000 and a market value of $250,000. What is the most a valued policy will pay in the event of a total loss without a deductible?

Answer 73

The policy limit

Question 74

The insurer must offer alternative deductible amount applicable to hurricane losses equal to which of the following?

Answer 74

5%

Question 75

The type of health insurance policy that provides coverage against catastrophic losses is known as:

Answer 75

Major medical insurance

Question 76

If cancelation or nonrenewal of a homeowners policy is to be effective during the duration of a hurricane, the effective date of cancellation or nonrenewal is:

Answer 76

Extended until the end of the duration of the hurricane

Question 77

Which of the following statements is false regarding PIP Coverage under auto insurance?

Answer 77

Death benefits of $2,500 per individual are in addition to the medical and disability benefits provided under the insurance policy

Question 78

Medical payments coverage includes which of the following?

Answer 78

Payment of necessary medical expenses incurred by an injury on the insured's premises

Question 79

With regard to agent and adjuster licensing and investigations:

Answer 79

The Department of Financial Services may interrogate an applicant or agent on any matter is deemed necessary for the protection of the public

Question 80

An agent may have no more than ________ of his total business within a 12-month period be from controlled business.

Answer 80

50%

Question 81

A liability policy contains a per person bodily injury limit of $25,000 and a per occurrence limit of $50,000. If an accident were to occur and three persons have claims of $20,000 each, the total amount paid is:

Answer 81

$50,000

Question 82

Which term describes the situation when two policies covering the same property contain different policy periods?

Answer 82

Nonconcurrency Nonconcurrency indicates the existence of two or more policies covering the same exposures that don't have the same policy periods.

Question 83

All of the following are methods of writing property insurance limits, except:

Answer 83

Concurrent coverage

Question 84

Which of the following is not essential in determining if an action is due to negligence?

Answer 84

The injured party must prove the wrongdoer committed a criminal act Negligence is the commission of a civil or private wrong, not a criminal wrong.

Question 85

Which of the following is considered a hostile fire?

Answer 85

An uncontrolled campfire in the woods

Question 86

Personal injury includes all of the following, except:

Answer 86

Bodily injury

Question 87

Which of the following best describes the situation when a property has neither contents nor occupants?

Answer 87

Vacancy

Question 88

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

Answer 88

24 (including a 5-hour law and ethics course)

Question 89

Which term describes coverage that applies only to loss by the perils stated in a policy?

Answer 89

Named peril

Question 90

The standard policy structure for insurance policies includes all of the following sections, except:

Answer 90

Duties

Question 91

The standard policy structure for insurance policies includes all of the following sections, except:

Answer 91

Duties

Question 92

Which of the following is used to resolve differences between the insured and the insurer?

Answer 92

Arbitration

Question 93

Which section lists the perils insured against by a property insurance policy?

Answer 93

Insuring Agreement

Question 94

Which of the following is NOT a general duty and power of the Office of Financial Regulation?

Answer 94

Qualify all foreign corporations to do business in Florida

Question 95

A homeowner agent may share a commission or any valuable consideration with anyone who:

Answer 95

Has an appointment and license to sell homeowner insurance

Question 96

Which of the following is not a qualification to apply for an insurance license in Florida?

Answer 96

Must have a high school diploma or GED

Question 97

The ISO Homeowner 2011 policy adds an additional coverage for the following, except:

Answer 97

Rust

Question 98

Which of the following correctly describes the practice of twisting?

Answer 98

Misleading an insured in order to induce them to terminate or exchange an existing policy for a different one

Question 99

Which of the following statements is false with respect to exclusions of windstorm or hail?

Answer 99

Windstorm coverage may be excluded without regard to any mortgage or lien If a mortgage or lien exists on the structure, the respective mortgage holder or lienholder must approve any exclusion of windstorm coverage

Question 100

Which of the following statements is false regarding appointments?

Answer 100

An agent is not required be appointed with an insurer in order to earn a commission, but must be appointed to deliver a policy

Question 101

Which of the following defenses against negligence reduces damages in proportion to the degree of negligence?

Answer 101

Comparative Negligence

Question 102

Which of the following is not found on the Declarations Page?

Answer 102

Exclusions