Comprehensive Exam Flashcards
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?
Flooring
Which is the best description of punitive damages?
Punitive damages are assessed as a punishment for extremely objectionable conduct by a negligent party
An insured placed with the FAJUA must be notified in writing that the insurance coverage is not through the private market within _________ of placement
10 days
Which type of insurance provides coverage when insurance is not available from an admitted carrier?
Surplus
What is the principle of liability that imposes legal liability for injury and damage by products?
Strict liability
What determines whether an action is a negligence action?
The substance of the action
Which of the following is true regarding the Fine Arts Floater?
It covers such items as paintings, rare manuscripts and antiques
Of the following statements concerning Homeowners policies, which is correct?
Borrowed property meets the definition of contents
Which of the following applies when two parties rely upon the promises of the other?
Concept of utmost good faith
Which of the following special limits of liability is provided under Coverage C?
Theft of furs are covered up to $1,500
Under Part A of the Personal Auto policy, which of the following would be covered?
Damage to a parked car
All of the following would be included in the definition of insured location, except:
A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds
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?
Assumption of risk
When a person participates in an activity where a certain type of injury may occur, the person assumes that risk.
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?
Scheduled Personal Property
Which of the following vehicles is not considered an uninsured vehicle under Part C of the PAP?
A vehicle owned by the government
For an antique insured under a Personal Articles Floater, coverage would not be provided for damage caused by:
Damage caused by the insured during a heated argument
Liability coverage is designed to:
Protect the insured from bodily injury and property damage they are legally obligated to pay
Under the Dwelling Policy, household and personal property, including property in transit between the insured’s old and new residences, are covered under:
Coverage C
The insured is not required to do which of the following in the event of a property claim?
Notify police, whether or not a law has been broken
Actual Cash Value is best defined as which of the following?
Today’s current price, minus depreciation
Which vehicle would not be covered under a Personal Auto Policy with no added endorsements?
A motorcycle
Which provision specifies that no coverage applies if the loss benefits a person who has care, custody, or control of the insured’s property?
No Benefit to Bailee
A proof of loss must be provided to the insurer within _____ days of a homeowner loss.
90
The Additional Coverages part of a property insurance policy provides:
Coverage that supplements the basic coverages in the insuring agreement which is automatically included without an additional premium
The Financial Services Commission:
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.
Which of the following is not an eligible vehicle for coverage under the Personal Auto Policy?
Pick-up with gross vehicle weight of 12,000 lbs.
All of the following are true of the Dwelling Special Form, except
Both the dwelling and contents are covered on an open perils basis
Which of the following statements is false regarding the Florida Automobile Joint Underwriting Association (FAJUA)?
The FAJUA provides automobile liability insurance when an insurer becomes insolvent
Which of the following is true regarding a negligence claim?
The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages
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?
Combined single limit
The loss of property when the cause of loss is not known is considered:
Mysterious disappearance
Choose the claim that is not covered under the Dwelling Broad Form (DP-2).
Theft of personal property at the insured premises
Choose the statement that is false regarding the Citizens Property Insurance Corporation.
Mobile homes are not eligible for coverage even if used as dwellings
Which of the following vehicles is not considered an uninsured vehicle?
A vehicle owned by the government
Which of the following does not pay regardless of fault?
Uninsured Motorist Bodily Injury
Detached structures on the insured premises are included in which coverage under a Dwelling Policy?
Coverage B
Which of the following is included in the Personal Auto Policy’s coverage territory?
The U.S., its territories, Canada, and Puerto Rico
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?
$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.
An insurer that is not approved by the state Department of Insurance to transact insurance is called which type of insure
Non-admitted
Which of the following is the best definition of Actual Cash Value in property insurance?
Replacement cost minus depreciation
Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy?
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.
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?
Assignment
Wet leaves on a sidewalk are considered a:
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.
which of the following prevents all recovery for injuries if the claimant was also considered partially negligent?
Contributory negligence
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:
Limit of liability
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:
Limit of liability
Which of the following claims would be insured under Uninsured Motorists Coverage?
The insured’s resident son suffered severe injuries after being rear-ended by an uninsured driver
Which of the following statements about liability insurance is false?
Bodily injury includes personal injury, sickness, and disease
Bodily injury does not include personal injury.
Estoppel is defined as which of the following?
Estoppel prevents a party from denying a fact, if the fact was admitted to be true by a previous action
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:
Concurrent Causation
Which of the following risks may be protected against by insurance?
Pure Risk
The Personal Auto Policy’s definition of family member includes:
A person related to the named insured who is a resident of a household (including a foster child)
Which of the following places insurance with a non-admitted insurer when insurance cannot be placed with an admitted insurer?
Surplus Lines producer
Which of the following defines a tort?
A wrongful act
Risk is defined as:
Uncertainty or chance of loss
Which of the following statements regarding the Part A limit of liability under the Personal Auto Policy is FALSE?
If the loss is covered under more than one Part of the policy, payment will be duplicated
The Personal Auto Policy applies:
Only in the U.S., its territories, Canada, and Puerto Rico
Which of the following is not considered unethical as described in the Unfair Trade and Marketing Practices?
Representation
Who among the following applicants for a motorcycle license would be required to complete a motorcycle education course?
First-time applicants under the age of 21
Which description applies to general damages?
Compensation to an injured party for pain, suffering, mental anguish, disfigurement and similar types of losses
Which of the following best describes a direct loss?
Water damage resulting from a burst pipe
An insured should not profit from an insurance transaction. This describes which of the following principles?
The principle of indemnity
When filing a claim, the insured is required to do all of the following, except
Hire an appraiser
All of the following are methods of loss valuation, except:
Blanket value
Which of the following best describes a liability policy that is written on a primary basis?
It is the policy that pays first with respect to other policies
Which of the following is a physical hazard?
Uneven pavement in a sidewalk
Coverage for a catastrophic ground cover collapse is provided:
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.
Theft is specifically defined as:
Any act of stealing
A person must maintain proof of financial responsibility if physically present within Florida for more than how many days during the preceding 365 days?
90
Personal injury liability includes which of the following?
Libel and slander
Which of the following reduces an award in proportion to the amount of negligence?
Comparative negligence
the type of absolute liability that applies to products is called:
Strict liability
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?
The policy limit
The insurer must offer alternative deductible amount applicable to hurricane losses equal to which of the following?
5%
The type of health insurance policy that provides coverage against catastrophic losses is known as:
Major medical insurance
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:
Extended until the end of the duration of the hurricane
Which of the following statements is false regarding PIP Coverage under auto insurance?
Death benefits of $2,500 per individual are in addition to the medical and disability benefits provided under the insurance policy
Medical payments coverage includes which of the following?
Payment of necessary medical expenses incurred by an injury on the insured’s premises
With regard to agent and adjuster licensing and investigations:
The Department of Financial Services may interrogate an applicant or agent on any matter is deemed necessary for the protection of the public
An agent may have no more than ________ of his total business within a 12-month period be from controlled business.
50%
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:
$50,000
Which term describes the situation when two policies covering the same property contain different policy periods?
Nonconcurrency
Nonconcurrency indicates the existence of two or more policies covering the same exposures that don’t have the same policy periods.
All of the following are methods of writing property insurance limits, except:
Concurrent coverage
Which of the following is not essential in determining if an action is due to negligence?
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.
Which of the following is considered a hostile fire?
An uncontrolled campfire in the woods
Personal injury includes all of the following, except:
Bodily injury
Which of the following best describes the situation when a property has neither contents nor occupants?
Vacancy
ow many credit hours of continuing education must a new agent complete every 2 years?
24 (including a 5-hour law and ethics course)
Which term describes coverage that applies only to loss by the perils stated in a policy?
Named peril
The standard policy structure for insurance policies includes all of the following sections, except:
Duties
The standard policy structure for insurance policies includes all of the following sections, except:
Duties
Which of the following is used to resolve differences between the insured and the insurer?
Arbitration
Which section lists the perils insured against by a property insurance policy?
Insuring Agreement
Which of the following is NOT a general duty and power of the Office of Financial Regulation?
Qualify all foreign corporations to do business in Florida
A homeowner agent may share a commission or any valuable consideration with anyone who:
Has an appointment and license to sell homeowner insurance
Which of the following is not a qualification to apply for an insurance license in Florida?
Must have a high school diploma or GED
The ISO Homeowner 2011 policy adds an additional coverage for the following, except:
Rust
Which of the following correctly describes the practice of twisting?
Misleading an insured in order to induce them to terminate or exchange an existing policy for a different one
Which of the following statements is false with respect to exclusions of windstorm or hail?
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
Which of the following statements is false regarding appointments?
An agent is not required be appointed with an insurer in order to earn a commission, but must be appointed to deliver a policy
Which of the following defenses against negligence reduces damages in proportion to the degree of negligence?
Comparative Negligence
Which of the following is not found on the Declarations Page?
Exclusions
