Concepts And Statutes

Question 1

Jane has $100,000 property policy with 80% coinsurance clause. The building is worth $200,000 and is totally destroyed by fire. How much will Jane recover under her property policy?

Answer 1

$100,000. Anytime there is a total loss, remember the value policy law applies if buildings are destroyed

Question 2

An insured has $60,000 property coverage on the building purchased two years ago for $80,000 the coverage is written with 80% coinsurance clause if the insured suffers a $40,000 loss how much was she recover if the value of her building at the time of loss is $100,000?

Answer 2

$30,000, remember did/should x loss = recovery

Question 3

Mac has ordered $450,000 property policy with 80% coinsurance clause. His building worth $500,000 suffers a $100,000 loss. How much will mac cover under his property policy?

Answer 3

$100,000, he is in compliance with coinsurance condition, receives full lost up to limit

Question 4

The body of statutory law known as ERISA is primarily enforced by whom?

Answer 4

United States Department of Labor

Question 5

MEWA stands for?

Answer 5

Multiple employer welfare arrangement

Question 6

What is a major goal of ERISA

Answer 6

A single employer to fully insure a health plan

Question 7

The office of financial regulation is responsible for

Answer 7

Regulation of banks, regulation of credit unions, regulation of securities industry

Question 8

If someone would suffer economic loss from damage to their property, they have

Answer 8

And insurable interest. The possible consequence of loss or damage to property crates and insurable interest. A person has insurable interest to the extent of their ownership in the property

Question 9

What is a convenience used to provide temporary insurance?

Answer 9

A binder.

Question 10

The failure of the insured to reveal a known fact to the insurer, which would have had an adverse effect on the policy being issued is?

Answer 10

Concealment

Question 11

Insurance for payment is made on behalf of the insured to another party is called?

Answer 11

Liability coverage

Question 12

What is liberalization

Answer 12

Wendy ensure adopt a provision providing broader coverage without additional premium, and the broader coverage automatically applies to the existing policy

Question 13

What is property coverage?

Answer 13

Any insurance where the insurer pays the insured or someone other named interest

Question 14

What is Misrepresentation?

Answer 14

Knowingly making a false or fraudulent statement on an application

Question 15

If licensee feels to be appointed they are subject to losing their license. What. Of time will trigger the termination of a license for failure to maintain an appointment?

Answer 15

48 months

Question 16

What is a controlled business license

Answer 16

Obtaining a license for the purpose of writing insurance only on family members or a business relationship

Question 17

If the licensee changes their name, residence address or business address, they must notify the department of insurance within how many days?

Answer 17

30 days

Question 18

Agents in the state of Florida may rebate a portion of their commissions to the customer, How can they do this?

Answer 18

It must be available to all of the insureds in the same actuarial class, three big schedule must be filled with the insurer, rebate schedule must be posted in the agency.

Question 19

The insurance provision that provides lower insurance rates for an sure to ensure at levels close to the value of property, thus getting insurance coverage closer to the property value is called:

Answer 19

Coinsurance