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Florida 2-20 > Questions > Flashcards

Questions Flashcards

1
Q

Jane insures her car with ABC Insurers. Which of the following individuals best describes a family member on Jane’s policy?

A

Maggie, her older sister, who lives with Jane

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2
Q

Which of the following is a contract bond?

A

Performance bond

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3
Q

What is the primary purpose of workers’ compensation laws?

A

Providing compensation to employees who have sustained injury, illness, or death during the course of employment

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4
Q

Which of the following is an example of property that might be insured on a valued basis?

A

Rare painting

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5
Q

All of the following coverages are typically included in the supplementary payments of a liability policy EXCEPT

A

property damages the insured is found legally liable for

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6
Q

Ted’s TV shop employees are installing a TV at Mandy’s home. While doing so, they drop the TV, causing damage to the TV in the amount of $250. They also damage the floor and wall in the amount of $700. What will Ted’s BOP policy pay, assuming his limits are adequate?

A

$700

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7
Q

The covered auto is defined in the policy as all of the following EXCEPT

A

any additional auto acquired in the past 30 days

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8
Q

All of the following additional coverages are included in homeowners forms EXCEPT

A

pollution removal

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9
Q

Which policy would provide coverage for a surgeon when his patient is injured because of the doctor’s failure to correctly perform a heart operation?

A

Medical malpractice

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10
Q

ABC Home Improvement Stores is a nationwide retailer with multiple stores and warehouses located across the country. The value of the property in its stores fluctuates frequently, and merchandise is frequently moved between warehouses. ABC Home Improvement Stores would benefit by adding which of the following endorsements to its commercial property covereage?

A

Value reporting form

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11
Q

Which one of the following acts involves visible signs of forced entry or exit?

A

Burglary

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12
Q

Two personal auto policies cover 1 vehicle. Company A’s limit of liability is $100,000 and Company B’s limit of liability is $300,000. How much will Company A pay for a liability loss in the event of an accident when the damages total $100,000?

A

$25,000

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13
Q

Which of the following legal principles allows insurance companies to collect from a negligent third party damages it paid to an insured?

A

Subrogation

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14
Q

Which of the following coverages is NOT included in a boatowners/watercraft package policy?

A

Longshore and harbor workers’ comp insurance

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15
Q

All of the following factors must be involved to establish negligence EXCEPT

A

approximate cause

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16
Q

Which of the following could be insured under Coverage B of a homeowners policy?

A

A detached garage rented to a neighbor to store his sports car during the winter

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17
Q

Which of the following is NOT an example of an insurable interest?

A

A woman’s interest in property that she hopes her uncle will leave to her in his will

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18
Q

While driving down the street, an insured swerves to avoid a pedestrian, goes over a curb, and damages a neighbor’s fence. Which of the following will pay for the repairs to the fence?

A

The driver’s automobile policy under the property damage liability provisions

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19
Q

Section II of a homeowners policy covers all of the following EXCEPT

A

bodily injury to one of the insured’s resident family members

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20
Q

If the monthly limit of indemnity option has been selected under the Business Income Coverage Form, how much will an insurer pay for loss of business income for each month of loss (assume the declarations page shows a limit of insurance of $150,000 and a fraction of 1/3)?

A

Lesser of $50,000 or the actual loss for each month

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21
Q

Workers’ comp laws vary state to state. The categories of coverage are elective or compulsory. In compulsory states, the basic methods of providing coverage are monopolistic or competitive. The monopolistic method is when the insurance

A

must be purchased from the state-run insurer

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22
Q

Losses to the dwelling and other structures are paid at replacement cost a long as the insured carries an amount of insurance equal to or greater than

A

80% of the building’s replacement cost

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23
Q

Under the medical payments coverage of a personal auto policy, the insurer pays for medical expenses and funeral services incurred within how many years from the date of an accident?

A

3

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24
Q

John and Mary are a hardworking married couple. They own a sole proprietorship that sells farm produce. John also owns a partnership with his brother, James in which they make custom furniture. Which of these people is an insured under John’s commercial general liability (CGL) policy that applies to the produce store?

A

John and Mary

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25
Q

An insured has a $70,000 dwelling policy (DP-1 basic) with a $500 deductible. While the insured is on vacation, burglars enter the house and steal several items. The total loss is estimated to be $5,000. How much of that loss will be paid under the policy?

A

$0

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26
Q

In most cases, an injured employee receives payments under workers’ comp insurance from whom?

A

Insurance company

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27
Q

What is the definition of a fiduciary?

A

A person in a position of trust and confidence who handles the affairs and funds of others

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28
Q

Ashley is hit by a car while riding her bike through her neighborhood. Which of the following damages arising out of this accident would be classified as general damages?

A

Pain and suffering

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29
Q

Which of the following perils is excluded in the HO-2 broad form?

A

Escape of pollutants that results from any cause of loss

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30
Q

While on a tour of a toy manufacturer’s warehouse, a child severely cuts her finger. The toy manufacturer’s insurer will cover the claim if the manufacturer’s insurer will cover the claim if the manufacturer carried which one of the following types of insurance?

A

CGL

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31
Q

Greg is a truck driver with Home Furnishings, Inc., and delivers furniture to customers. Jeff is a salesman with Home Furnishings and accompanies Greg on a delivery run to an important customer. On the way, Greg runs a red light, hits a bus, and rolls the delivery truck. Jeff is seriously injured. Which coverage under the endorsed commercial auto policy will pay for Jeff’s injuries?

A

No coverage available under the commercial auto policy for this loss

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32
Q

Which of the following losses would be excluded under the liability section of the personal auto policy?

A

Ricardo loses control of his car while backing out of his driveway and strikes the fence surrounding his home

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33
Q

A person becomes seriously ill after eating unrefrigerated raw oysters from a street vendor. When the vendor is sued for negligence, what defense might best be used?

A

Assumption of risk

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34
Q

Which of the following statements regarding bond agreements is CORRECT?

A

A surety bond serves as a guarantee of performance

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35
Q

Joan is a music teacher who teaches piano to 20 students who come to her home for weekly lessons. Which endorsement does Joan need to add to her homeowners policy to make sure she is covered if a student is injured on her property?

A

Permitted incidental occupancy

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36
Q

If the policy limits of the Building and Personal Property Coverage Form have been exhausted, how much additional coverage is available for debris removal?

A

$25,000

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37
Q

Luis just purchased a new home. As a homeowner, there is a possibility that visitors to his home may be injured on the premises and sue Luis to recover damages for medical expenses. The uncertainty that Luis will be held legally responsible for accidents that occur at his home is an example of

A

a risk

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38
Q

Janet, an employee of Carla’s Computer Repair, is injured while playing baseball for the company-sponsored softball team. Under which policy would Janet find coverage for her injuries?

A

Health insurance

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39
Q

Mary was involved in an accident with a hit-and-run driver. Her car was damaged. Which of the following items would be covered under the collision coverage in the personal auto policy?

A

The front windshield is shattered

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40
Q

Why do insurance policies usually define who is considered an insured under the policy?

A

To specify who is covered in addition to the named insured

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41
Q

An insurance company owned by its policyholders, who receive a return of unused premiums in the for of policy dividends, is a

A

mutual company

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42
Q

A hotel has added a guest’s property endorsement to its commercial crime coverage form. A guest at the hotel removes her jewelry and leaves it wrapped in a towel at the front desk while she uses some exercise equipment. When she finishes her workout, the jewelry is gone. The policy provides

A

coverage for the guest’s jewelry in the amount shown on the declarations page

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43
Q

Who is responsible for making the premium payments due under a CPP?

A

First named insured

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44
Q

Which on of the following statements about the standard mortgage clause is CORRECT?

A

The mortgagee may have to pay the premium if the insured fails to do so

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45
Q

The purpose of employers’ liability insurance is to provide

A

liability protection where workers’ comp doesn’t apply

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46
Q

An auto is sold for salvage value following payment of a loss. Who receives the proceeds?

A

Insurance company

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47
Q

The Business Auto Coverage Form uses symbols to denote the vehicles to which each of the policy’s coverages applies. Which symbol is the most restrictive?

A

Symbol 7

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48
Q

The insurer of an insurance company is known as a

A

reinsurer

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49
Q

Jim borrows a company van to take his son to college. As the trip takes more than 10 hours, he would like to share the drive with Julia, his wife. What endorsement should Jim add to the company commercial auto policy to make sure he has the proper coverage?

A

Individual named insured

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50
Q

Which term correctly describes an insurance company that has been organized outside the US or its possessions?

A

Alien

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51
Q

An errors and omissions policy could be issued to cover the following occupations EXCEPT

A

veterinarians

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52
Q

When calculating premiums for a workers’ comp policy, the insurer will multiply the job classification rate by

A

the number of $100 payroll units paid to employees in each job classification

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53
Q

Which one of the following is considered a hazard?

A

Trash

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54
Q

Yacht policies provide physical damages and liability coverage. What is the liability section called?

A

Protection and indemnity insurance

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55
Q

A personal auto policy provides coverage for all for the following drivers of an insured car EXCEPT

A

a thief who steals the car

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56
Q

Which of the following property may be insured under a flood policy issued by the NFIP?

A

Silo

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57
Q

The purpose of insurance is to

A

transfer risk

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58
Q

All of the following statements about the notice to applicant in the Fair Credit Reporting Act are true EXCEPT

A

This notice must be given to the consumer no later than ten days after a report is requested

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59
Q

The Terrorism Risk Insurance Program Reauthorization Act of 2019 addresses only a defined category of terrorism losses. To come within the new federal program, an act of terrorism must have all the following characteristics EXCEPT

A

it must produce property and casualty insurance losses in excess of $500 million

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60
Q

The amount of payment that comes into play when an insured fails to carry the sufficient amount of insurance is sometimes referred to as the

A

coinsurance penalty

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61
Q

An employee is delivering packages for her employer but is using her own vehicle. The employee hits a pedestrian. The employer may be held liable because of the doctrine of

A

vicarious liability

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62
Q

Which of the following classes of property are NOT specifically excluded from Coverage C - personal property?

A

Property away from the residence

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63
Q

Which of the following is NOT a determining factor in work-related injuries?

A

Pay grade

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64
Q

Which marine policy would an owner of goods most likely purchase to insure a single shipment of property from Chicago to Los Angeles?

A

Trip transit insurance

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65
Q

Mary’s purse was stolen from her as she walked down the sidewalk. She has an HO-2 policy. Will Mary’s policy cover this loss subject to the deductible?

A

Yes - theft is a covered peril under all of the homeowners forms

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66
Q

Who would use a HO-6 homeowners form?

A

Owner of a condominium

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67
Q

Which of the following endorsements is used to provide coverage based on actual values at certain locations at specific times?

A

Value reporting endorsement

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68
Q

An insurance company requires an insured to attend and testify during a 5-day trial. As a result, the insured is not paid his standard $4,000 per week salary. What total amount will the supplementary payments section of the CGL for reimburse the insured for lost earnings?

A

$1,250

69
Q

Kelly is a sophomore in high school and just got her driver’s license. Rand is a freshman. They verbally agree that Rand will pay her two dollars a day for her to drive him to and from school. Which statement below could cause this to NOT be a valid contract?

A

A valid contract must be between competent parties

70
Q

The insured’s home is insured under and HO-3 with a $100,000 Coverage A limit. A tornado destroys the home and uproots a tree valued at $5,000. How much would the insurance company pay for the loss to the insured’s home and tree? Ignore any deductible that would apply

A

$100,000

71
Q

Steve meets with his agent to apply for an automobile insurance policy on his 2 personal cars. In reviewing the policy, Steve finds he is not willing to accept the duties listed in the conditions section. He signs the application but adds a note deleting the duties to the insurer. Is this acceptable to the company?

A

No - a written endorsement by the insurer is the only way to change the policy

72
Q

Which of the following statements about risk retention groups is NOT true?

A

An RRG typically writes workers’ comp insurance for its members

73
Q

Which of the following is NOT a source of information important to an underwriter?

A

Employer reference

74
Q

Jeffrey bought a car yesterday for his daughter to drive to school and her job. Under Jeffrey’s automobile policy, this car is considered

A

an owned automobile

75
Q

An insurance binder is best described as

A

temporary, short-term evidence of coverage

76
Q

The insured’s car collides with a deer. The damage to the insured’s car arising out of this accident would be covered under the personal auto policy’s

A

comprehensive/other than collision coverage

77
Q

Liability policies provide certain supplementary payments that are

A

paid in addition to the policy’s regular limit of liability

78
Q

Which of the following statements about the businessowners policy (BOP) is NOT correct?

A

Tenants improvements aren’t covered under a BOP

79
Q

In homeowners policies, what does Coverage A insure?

A

Dwelling

80
Q

Which of the following statements about umbrella policies is NOT correct?

A

They are written only for commercial risks

81
Q

Which one of the following is NOT a use of auto symbols in the commercial auto policy?

A

To determine which rating territory applies to the covered autos

82
Q

Which of the following terms could be insured under Coverage C of a homeowners policy?

A

Personal property usually located in a secondary residence

83
Q

Isabella’s application for auto insurance is declined by the insurance company on the basis of information in her credit report. When Isabella reviews this report, she discovers information that she believes is incorrect. Isabella asks the credit reporting agency to investigate this information. If it is determined that this information is incorrect, who is responsible for fixing it?

A

The credit reporting agency

84
Q

After business hours, someone breaks into the insured’s lot behind his car dealership and steals a customer’s auto. Which of the following coverages would apply to this loss?

A

Garagekeepers coverage in the garage coverage form

85
Q

The law of large numbers states that the

A

larger the number of risks combined into one group, the less uncertainty there will be as to the amount of loss that will be incurred

86
Q

All of the following are optional property coverages under the businessowners policy EXCEPT

A

personal property off premises

87
Q

John and Gina met with their insurance agent who asked a series of questions that identified what they owned, what coverage they needed, how much money they wanted to spend on this coverage, and all possible sources of paying for this coverage. What analysis is the insurance agent completing?

A

Needs

88
Q

All of the following are property coverage forms EXCEPT

A

base

89
Q

The type of authority that isn’t written in an agency contract, but is assumed to be granted to an agent in accordance with general business practices, is called

A

implied authority

90
Q

All of the following risk exposures are covered by the liability section of the businessowners policy EXCEPT

A

employers liability

91
Q

If the insured hits a deer while driving his own vehicle, which part of the personal auto policy will pay to repair the vehicle?

A

Other than Collision

92
Q

Faulty wiring causes a fire that destroys a building. The faulty wiring is considered to be

A

a hazard

93
Q

Patrick’s Widget Company has a small fleet of owned cards used by local salespeople. Most of the salespeople, however, travel to other cities and rent cards to make sales calls. Which coverage should Patrick include on his commercial auto policy to cover this exposure?

A

Symbol 8 - hired autos only

94
Q

Section II of the homeowners policy provides liability coverage for all of the following EXCEPT

A

renting the garage to a jewelry maker

95
Q

What is the term for an individual who occupies a position of trust when handling the financial affairs of another?

A

Fiduciary

96
Q

The commercial property conditions form contains circumstances that apply to all commercial property coverage forms, unless a coverage form contains a condition to the contrary. Commercial endorsements that apply to more than one part of a CPP are called

A

interline

97
Q

The federal government is not obligated under the TRIA to make payments for any portion of losses that exceed how much annually?

A

$100 billion

98
Q

Which one of the following is NOT a benefit of workers’ comp insurance?

A

Pain and sufferring

99
Q

Which of the following is the most accurate statement regarding risk?

A

Risk is the uncertainty of a loss occurring

100
Q

Joe’s Plumbing has leased a fleet of vans to be used by his plumbers while going from job to job. Which of the following endorsements is especially important in this situation?

A

Additional insured - lessor

101
Q

Which one of the following determines the amount of a workers’ comp claim?

A

State law

102
Q

A DP-2 policy would cover losses from all of the following perils EXCEPT

A

infestation of insects

103
Q

A tavern owner has a CGL policy. A patron who claims he has injured when the bartended forcibly removed him from the premises sue both the tavern owner and the bartender. Under the CGL’s duty to defend provision, the policy would

A

have no duty to defend because the damages aren’t covered

104
Q

Depending on the circumstances, a passenger injured in an automobile accident may be able to recover under all of the following coverages EXCEPT

A

collision

105
Q

Mary and Sue are customers in Paul’s bicycle shop. Mary and Sue are both injured when a stack of bicycles fall on them because they were trying to get a bike off the top shelf. Which of the following statements best describes how Paul’s standard businessowners policy would provide coverage in regards to Mary and Sue’s injuries?

A

Mary and Sue would receive payments for up to the policy limits under the medical expenses coverage, whether or not Paul is found to be legally liable

106
Q

In an insurance transaction, who does a licensed agent legally represent?

A

Insurer

107
Q

A business loses money because it was forced to close after a fire on the premises. This loss is described as

A

an indirect loss

108
Q

What type of endorsement would be used to insure a recreational vehicle under the personal auto policy?

A

Misc type vehicle endorsement

109
Q

In insurance, a waiver is best considered as

A

the voluntary surrender of a known right

110
Q

How would a loss be adjusted under a homeowners policy with an insurance-to-value clause if a homeowner failed to carry coverage of at least 80% of the replacement cost of the home?

A

Payment of the ACV or a proportional share of the loss, whichever is greater

111
Q

When a loss occurs, the Causes of Loss - Special Form requires the insurance company to

A

pay for all losses not specifically excluded or limited by the policy

112
Q

A house has a replacement cost of $150,000. To make sure that the replacement cost provision of a homeowners policy applies, the minimum policy amount for the dwelling should be

A

$120,000

113
Q

Which of the following terms is used to describe an empty building that isn’t being used?

A

Vacant

114
Q

The liability coverage in the Business Auto Coverage Forms covers all of the following EXCEPT

A

damage to the covered auto

115
Q

Harold owns a sports bar. As a promotion, he offers customers tastings of new German beers. One customer, after several samples, drives off and injuries another person. The injured party sues the driver and Harold. Harold’s CGL policy will

A

not cover the loss because of the liquor liability exclusion

116
Q

Which one of the following statements regarding workers’ comp laws is CORRECT?

A

Benefits are paid to workers injured on the job, regardless of who is at fault

117
Q

John is thinking about buying a new bicycle. While test-driving a 10-speed bicycle at Paul’s bike shop, John was thrown from the bike after the front wheel came off. He is awarded $55,000 for bodily injury, as the court found Paul’s shop negligent for not closing the quick-release lever. Paul has $600 in lost earnings for the 2 days he had to be in court. What would his policy pay, assuming he has enough insurance?

A

$55,500

118
Q

All of the following vehicles can be insured under an unendorsed personal auto policy EXCEPT

A

motorcycles

119
Q

Which one of the following terms indicated that an insurance contract contains the enforceable promises of only one party?

A

Unilateral

120
Q

In commercial crime insurance, shoplifting is classified as

A

theft

121
Q

Doreen’s printing shop delivers finished items to local customers. Doreen usually makes the delivers herself, but when she is too busy, one of her employees will use his own car to drop off products with her customers. What type of endorsement would cover Doreen’s liability?

A

Hired auto and nonowned liability endorsement

122
Q

Which of the following is covered by ocean marine insurance?

A

Imports

123
Q

For a loss to be covered under the TRIA, the cause of loss must

A

be certified as an act of terrorism

124
Q

In the insurance business, the insurance company is also known as the

A

principal

125
Q

The standard deductible for property losses on a BOP is

A

$500

126
Q

Businessowners liability coverage will cover losses due to which of the following occurrences?

A

A suit brought by a competitor libel

127
Q

Which one of the following is NOT a factor in determining eligibility for coverage under a particular homeowners form?

A

Square footage

128
Q

Which homeowners policy would be written to cover personal property only?

A

HO-4

129
Q

Other additional coverage in the businessowners policy include all of the following EXCEPT

A

Trees and detached signs

130
Q

Joan and Steven have applied for automobile insurance with ABC Auto Insurers. They were NOT asked and did NOT tell the agent that their neighbor, George, who lost his driver’s license due to drunk driving, uses on of their cars on a regular basis to drive to work. Once the company found out about George after he had an accident, they denied the claim, citing what legal concept as the reason?

A

Concealment

131
Q

Self-insurance is an example of what type of risk management?

A

Retention

132
Q

Which of the following coverages in the homeowners policy is used to protect Sam when a friend files a suit after falling down basement stairs that Sam is repairing?

A

Coverage E - Personal Liability

133
Q

A corporation located in Chicago has added an extortion-commercial entities endorsement to its commercial crime coverage form. One of the directors of the corporation is captured and held for a $3 million ransom in La Paz, Bolivia. The policy

A

pays only if Bolivia is listed on the endorsement schedule as a covered territory

134
Q

In states that use the workers’ comp competitive state funds method, all of the following would typically be viable options available to an employer EXCEPT

A

purchasing coverage from the state fund only

135
Q

Which of the following is considered a uninsured/underinsured motor vehicle?

A

Car insured for less than the limits required by the state

136
Q

The Inside the Premises - Robbery or Safe Burglary of Other Property insuring agreement in the commercial crime policy covers which one of the following perils?

A

Burglary by a security guard while a store is closed

137
Q

In a flood policy issued by the NFIP, all of the following would be considered a flood EXCEPT

A

sewer backup into a home

138
Q

A difference in conditions contract is

A

a policy issued to cover what is normally excluded in other property insurance contracts

139
Q

With a few exceptions, most personal lines insurance policies exclude losses arising out of all of the following EXCEPT

A

personal activities conducted away from the insured premises

140
Q

The boatowners policy provides liability and physical damage coverage. What is the value and size of a boat eligible for the boatowners policy?

A

The value is less than $25,000, the watercraft is less than 26’ in length, or both

141
Q

Adam’s Appliances sustains a fire loss and has the following losses: damage to the building is $15,000, damage to contents is $7,000, debris removal is $5,000, and damage to valuable papers and records is $15,000. What will his businessowners policy pay, assuming his limits are adequate?

A

$37,000

142
Q

What is the minimum deductible for a single-family dwelling insured as a preferred risk in the regular flood program?

A

$1000 each for building and contents

143
Q

Dishonesty on the part of an insured is an example of a

A

moral hazard

144
Q

The property coverage in the unendorsed Businessowners policy written on

A

an open perils basis

145
Q

The Federal Employers’ Liability Act (FELA) covers which of the following types of workers?

A

Railroad employees

146
Q

Richard and his own wife own 2 family cars. In addition, Richard is given a company car to make sales calls. He occasionally uses the company car for personal use and is concerned that he may not have sufficient company coverage. Which of the following is the best advice his agent can give him?

A

Richard can add the extended nonowned coverage for named individual endorsement to his policy

147
Q

Which one of the following is part of the formula for calculating the ACV of a dwelling?

A

Replacement cost

148
Q

The type of professional liability policy that provides coverage for insurance agents, as well as certain other types of professionals, is typically referred to as

A

an errors and omissions policy

149
Q

An agent in the XYZ Insurance Company, equipped with business cards, sample XYZ policies, and an XYZ rate book, informs a prospect that XYZ has given him unlimited binding authority. The prospect assumes this is true. Given the prospect’s assumption, which of the following correctly defines the agent’s authority in this case?

A

Apparent

150
Q

All of the following statements about surplus lines insurance true EXCEPT

A

agents can place directly with surplus lines companies

151
Q

Which of the following types of business would be better covered by a CGL than a BOP?

A

An oil refinery

152
Q

Joan and Steven have applied for automobile insurance with ABC Auto Insurers. When the agent asks if anyone else drives the car, they lie and don’t tell him that their neighbor, George, who lost his driver’s license due to drunk driving, uses one of their cars on a regular basis to drive to work. Once the company found out about George after he had an accident, they denied the claim, citing what legal concept as the reason?

A

Fraud

153
Q

Driving too fast and not wearing a seatbelt are examples of

A

morale hazards

154
Q

A therapist owns office space in a commercial office building that is legally organized as a condominium. Which of the following best protects the therapist’s business personal property?

A

Condominium commercial unit owners form

155
Q

An insured lived in a house covered by an $80,000 Special Form (DP-3) policy. While the insured is on vacation, someone breaks into the house and steals $5,000 in electronic equipment. The damage to the door is estimated at $800. What coverage is provided by the DP-3 policy?

A

$800

156
Q

Which one of the following is NOT an additional coverage found in homeowners policies?

A

Market valuation

157
Q

Which of the following types of insurance covers exposures that involve property and merchandise while in transit for “floating”?

A

Inland marine insurance

158
Q

Which one of the following is NOT an appurtenant structure for purposes of a homeowners policy?

A

Tree

159
Q

Premiums for workers’ comp are based on the amount of payroll and rates established for various occupational classifications set by the

A

National Council on Compensation Insurance

160
Q

Who represents the insurance company and is and a direct link between the company and the insureds?

A

An insurance agent

161
Q

The furniture Harold purchased 10 years ago was destroyed in a fire. The furniture cost $9,000 when new and has depreciated by $5,000. It would cost $12,000 to replace this furniture today. What is the ACV of Harold’s destroyed furniture?

A

$7,000

162
Q

Which of the following statements is TRUE regarding the termination provision?

A

The insurer must provide written notice to the insured for policy cancellation or nonrenewal

163
Q

What kind of insurance company is an insurance company owned by its policyowners (insureds)?

A

Mutual

164
Q

Every state requires that each person be able to prove he is financially prepared if involved in an accident. Suppose your state requires minimum liability limits of 25/50/10. What is the name of that law?

A

Financial responsibility law

165
Q

Which of the following coverages would protect a policyholder for assumed liability under a construction contract to install water lines for a city?

A

Contractual liability

166
Q

An insured owns 4 stores. As inventory is sold, the insured transfers new inventory from the other locations to the store making the sales. Which type of policy would best fit this insured’s needs?

A

Blanket policy

167
Q

A person is injured after slipping on a wet floor in a grocery store. Insurance against which of the following exposures would provide coverage?

A

Premises

168
Q

What is the benefit for the employee covered by either the Federal Employers’ Liability Act or the US Longshoremen’s and Harbor Workers’ Compensation Act?

A

The benefits are broader than workers’ comp coverage

169
Q
A

Florida 2-20 (1 decks)

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