Which of the following statements if any are true?

Statement One: Binders can be oral or in writing.

Imputed due to ultra-hazardous activities that exposes the public to a degree of harm that no degree of care for defense

Absolute Liability, Strict Liability

In the event that an insured and insurer do not agree on the amount of loss in a claim:

either party may request the appraisal of loss under the Appraisal Clause

Exceptions to the rule of indemnity include ALL but which of the following?

Actual Cash Value: "new" less "depreciation"

__ is used to resolve differences between the insured & insurer when there is dispute as to the amount of __ in a claim.

The Appraisal Condition; the Loss

The two primary Gramm Leach Bliley requirements for insurance companies are:

financial privacy and safeguarding customer's personal information

The first company will pay $20,000 and the second company will pay $40,000

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20-44 Study Guide Part 1

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Answers

1
Where one party has damaged another and as a result is legally responsible for the injury/damages sustained by the other
Vicarious Liability
Legal Liability
Negligence
Occurence
2
The policy's Conditions _______ and place limitations on the insurer's responsibility to perform and/or pay a claim.
Ramify
Subrodify
Librizzify
Qualify
3
The unlawful taking of property without the owner's consent.
Robbery
Burglary
Theft
Mysterious Disappearance
4
J's laptop was stolen and a brand new one cost $1,200. Her insurance company pays her $1,200. What is this an example of
replacement cost value basis
actual cash value basis
depreciation basis
none of the above
5
True or False? Subrogation upholds the principle of indemnity.
False
True
6
Which of the following statements if any are true?
Statement Two: Binders are issued after the issuance of a policy.
Both Statements are true
Neither Statement is true
Statement One: Binders can be oral or in writing.
7
Imputed due to ultra-hazardous activities that exposes the public to a degree of harm that no degree of care for defense
Absolute Liability
Vicarious Liability
Strict Liability
Legal Liability
8
The unlawful taking of property by force/intimidation directly from a person or in his/her presence.
Mysterious Disappearance
Theft
Burglary
Robbery
9
Liability insurance policies contain an insuring agreement which essentially state that the insurer will...
pay on behalf of the insured
all options are correct
sums the insured is legally obligated to pay
make payments for damages to third parties
10
Awarded by the court to a 3rd party claimant to punish the def/provide equitable relief when comp damages are inadequate
Punitive Damages
Compensatory Damages
Special Damages
General Damages
11
Fred has hurricane damage and has a $100K Dwelling limit with a 5% Hurricane Ded. What is the ded dollar amout?
$10,000
$7,500
$2,500
$5,000
12
In the event that an insured and insurer do not agree on the amount of loss in a claim:
either party may request the appraisal of loss under the Appraisal Clause
the appraisal applies to all areas under dispute
the appraisal decides coverage determinations
All of the above
13
The unlawful entry into a building with the intent to commit a crime usually theft.
Robbery
Burglary
Theft
Mysterious Disappearance
14
Straight deductibles specify the deduction of a flat amount from a loss, regardless of the ______ of the loss.
None of the Above
Percentage
Proportion
Size
15
____________ award money for the tangible and intangible economic loss suffered by a third party claimant.
Special Damages
General Damages
Punitive Damages
Compensatory Damages
16
The actual, lawful and substantial economic interest in the safety/preservation of insurance free from loss/destruction.
Property Interest
Actuarial Interest
Liability Interest
Insurable Interest
17
How much will the insured get? Dwelling Limit = $600K Coinsurance Clause = 80%; Loss = $300K; Value of Dwelling = $1 Mil
$275,000
$300,000
$225,000
$200,000
18
Exceptions to the rule of indemnity include ALL but which of the following?
Actual Cash Value: "new" less "depreciation"
Replacement Cost Endorsements: “new” for “old”
Agreed Value: value agreed to at the time the insurance is taken out
Direct payment to a claimant in a liability claim
19
True or False? Under the APPRAISAL CONDITION, agreement by any two of the three appraisers is considered binding.
False
True
20
When all applicable policies claim to be "excess", each policy will pay based upon its ____ share to all applicable cov.
Excess
Access
Pro-Rata
Average
21
Which of the following is/are correct as regards the Proof of Loss condition in an insurance policy?
neither statement is correct
ownership interest in the damaged property
disclosure of any other applicable insurance
both statements are correct
22
What formula is this? Loss X Limit of Insurance/[Value of Property (X) Coinsurance Percentage] = Loss Settlement
Formula for Loss Settlement
Formula for Property Value
Formula for Insurance
Formula for Coinsurance
23
________ is ONLY the chance of financial loss.
Insurance
Risk
Speculative Risk
Pure Risk
24
The purpose of Florida’s Valued Policy Law (F.S.627.720) is to prevent the over-sale of insurance to consumers.
True
False
25
All of the following are obligations of the insurance company EXCEPT:
defense of the insured in the event of a lawsuit
timely process of an insured's claim
good faith and fair dealing with the insured
reasonable malfeasance
26
The restoration to an injured/damaged party from loss to their persons, property and "set them back/make them whole"
Hazard
Indemnification
Loss
Peril
27
The property disappearance which cannot be explained and the probability of theft has been eliminated.
Robbery
Mysterious Disappearance
Theft
Burglary
28
A statistical concept that suggests the more exposure units we have the more likely any projections will = what occurs
Law of Laws
Law of Numbers
Law of Large Numbers
Law of Insurance Statistics
29
The application must show the applicant is a bonafide _____ of or whose place of business is in Florida.
College Graduate
Property Owner
Resident
Student
30
__ is used to resolve differences between the insured & insurer when there is dispute as to the amount of __ in a claim.
The Appraiser Condition; the policy limits
The Appraisal Condition; the policy language
The Appraisal Condition; the Loss
The Appraiser Condition; the deductible
31
Broadens policy coverage if policy language has been broadened (60 days prior to or during policy) .
Subrogation
Other Insurance
Liberalization Clause
Conditions
32
States how the insurance policy will coordinate with any other "valid and collectible" insurance.
Subrogation
Other Insurance
Liberalization Clause
Conditions
33
The two primary Gramm Leach Bliley requirements for insurance companies are:
financial piracy and consumer portal intolerance
None of the Above
financial piracy and safeguard customer personal information
financial privacy and safeguarding customer's personal information
34
A conscious mental attitude which increase the probability and severity of loss.
Temporary Hazard
Moral Hazard
Morale Hazard
Physical Hazard
35
All of the following are general duties of the insured following a loss EXCEPT:
paying a special assessment
preserving the insurer's rights
cooperating with the insurer
giving prompt notice to the insurer
36
Solve
The first company will pay $60,000 and the second company will pay $60,000
The first company will pay $1mil and the second company will pay $2 mil
The first company will pay $20,000 and the second company will pay $40,000
The first company will pay $40,000 and the second company will pay $20,000
37
An unconscious mental attitude which increase the probability and severity of loss.
Morale Hazard
Moral Hazard
Physical Hazard
Temporary Hazard
38
True or False? All policies provide that any changes to the policy must be made by the insurer, in writing.
True
False
39
True or False? The policy that is “primary” must exhaust all of its applicable limits before other insurance policies ap
True
False
40
A warranty is a representation of a material fact/condition of which the issuance of the insurance policy is conditioned
False
True
41
All of the following are required per the Mortgagee Clause EXCEPT:
all options are correct
loss payments will be payable to IRS and mortgagee
all options are incorrect
prompt notice of non-renewal and cancellation to IRS
42
Liability insurance coverage/policies require an insured to:
Promptly forward all legal papers received
Notify the insurer of names and addresses of claimants and witnesses to an
Avoid voluntary payments or assumption of obligations
All of the Above
43
Concealment is the failure of the insured to reveal ______ facts known to the insured in applying for insurance.
Irrelevant
Concealed
Relevant
Known
44
Subrogation is the _________ to the insurance company of the insured's right to collect for damages.
Transfer
Payment
Replacement
Confiscate
45
Insurance contracts require the person insured to have an insurable interest at the time of loss.
False
True
46
Assignment of recovery to insurer after payment to insured and assumption of rights against responsible third party
Other Insurance
Conditions
Liberalization Clause
Subrogation
47
Under PURE COMPARATIVE NEGLIGENCE, if you & the other party are both 50% at fault in an accident. What % can you collect
50%
0%
100%
48
Is an untrue statement by omission or commission by the insured, made in an app for insurance which is predicated upon
Liability
Lies
Misrepresentation
Concealment
49
True or False? Requiring "Insurable Interest" in a Property and Casualty policy upholds the principal of adhesion.
False
True
50
Acme has 5 warehouses at one location and they insure the total of them all for $2mil. Is this SPECIFIC or or BLANKET?
Specific
Blanket
51
An applicant for the 20-44 license can seek the license for the purpose of writing "controlled business".
True
False
52
______ pays only after all other policy's limits are paid
Equal Shares
Primary
Pro-Rata
Excess
53
In layman's terms proximate causation in an occurrence is -
the actual and effective cause of an occurrence
what initiated the occurrence
Both statements are correct
Neither statement is correct
54
Misrepresentation/omission/concealment of fact/incorrect statements shall not prevent a recovery under the policy unless
they are fraudulent
they are material to the acceptance of the risk
each of these may preclude an insured from a claims recovery
they are material to the hazard assumed by the insurer
55
______ is when each insurer pays based upon its proportion to all of the applicable policy limits
Excess
Primary
Pro-Rata
Equal Shares
56
Which if any of the following statements are true?
Both Statement One and Statement Two are correct
Neither Statement One or Statement Two is correct
Statement Two: Speculative Risk is the chance of loss or gain.
Statement One: Pure Risk is only the chance of financial loss.
57
Exclusions state what is not _______ by the insurance policy either reducing what is ______ or precluding it altogether.
Required
Excluded
Lateral
Covered
58
What is the number once source of underwriting information regarding the insured?
Claim Loss Underwriting Report
Physical Inspection of the Property
Credit Report
The Application of the Insurance
59
True or False? A misrepresentation in an application of insurance is considered part of the insurance policy.
False
True
60
What does it mean "insurance contracts are contracts of adhesion"?
Insurance contracts are drafted by insurance companies
Ambiguities are resolved in favor of the insured
All of the above
The insured cannot negotiate the language of the contract
61
True or False? The FCRA mandates that anyone can dispute incomplete or inaccurate information in their credit file.
False
True
62
______ is when an act or omission by one party is imputed to another.
Vicarious Liability
Strict Liability
Legal Liability
Absolute Liability
63
The insurer may not have to perform if the insured:
is guilty of a material concealment
is guilty of a material misrepresentation
each of these may bar the insured from a claims recovery
breaches a warranty
64
The amount of contents necessary to satisfy the "CONTENT" requirement to demonstrate an insured occupancy is?
is normally implied to be that to maintain a functional and habitable home
$100,000 of contents
$40,000 of contents
there is no contents requirement
65
Binders may be written or oral?
True
False
66
The applicant must be qualified by instruction by successfully completing an insurance course of a minimum of ____ hours
40
100
60
200
67
True or False? A direct loss flows as a consequence of an indirect loss.
False
True
68
How many days notice if the NR is for a policy covering property which has been damaged and identified as an "emergency"
120
45
90
30
69
How many days notice if the NR is for personal lines or commercial residential property insurance plus the NR reason.
90
45
30
120
70
Which of the following regarding TRIA’s (Terrorism Risk Insurance Act ) creation are true (if any).
the capacity of insurers to underwrite terrorism may be uncertain
the appetite of insurers to underwrite terrorism may be uncertain
both are correct
neither is correct
71
Insurance contracts are "personal contracts" where the focus is on?
None of the Above
The Person
The Insured Operation
The Insured Property
72
Florida law deems information provided by the insured in an insurance application to be ____ and not _____.
Warranties and Not Purjuries
Warranties and Not Representations
Representations and Not Warranties
Representations and Not Purjuries
73
______ pays all of its policy limits before any other insurance is paid.
Primary
Excess
Equal Shares
Pro-Rata
74
If a non-renewal is for a personal or commercial residential property insurance policy the company is:
neither answer is correct
both answers are correct
required to provide a 120 day notice of the non-renewal
required to provide the reason for the non-renewal
75
How many days notice of a policy renewal or non-renewal
45
120
90
30
76
A ____ may be defined as a contingency that may cause a loss.
Loss
Morale
Hazard
Peril
77
All of the following are true regarding "contracts of adhesion" EXCEPT which of the follow?
the insured cannot negotiate language of policy
insurance companies draft the policy language
the parties to the contract have "uneven" bargaining power
ambiguities are resolved in favor of the insurance company
78
____________ are the tangible and calculable losses such as: medical bills, repair invoices, and lost wages.
General Damages
Punitive Damages
Special Damages
Compensatory Damages
79
Is the failure to exercise the degree of care to protect others from an unreasonable risk of harm
Vicarious Liability
Negligence
Legal Liability
Occurence
80
Once licensed, a licensee has _____ months to obtain a company appointment.
36
24
48
12
81
WHO IS AN INSURED is an important designation b/c the policy ONLY provides ____ for someone afforded the status of ____.
Coverage; Third Party
Coverage; Claimant
Coverage; Insurer
Coverage; Insured
82
A condition that introduces or increases the likelihood of loss from a peril.
Morale
Hazard
Peril
Moral
83
What precipitated the Terrorism Risk Insurance Act?
September 11, 2001 attacks
market crash of 2008
the expiration of HIPPA
the initiation of the Dodd-Frank "stress testing'
84
Means payment will be on behalf of the insured to another, based upon the insured's liability to the recipient.
Life Insurance
Property Insurance
Liability Insurance
Heatlth Insurance
85
Which of the following statements are true regarding "insuring agreements"?
provides notice to the insured that compliance with conditions exists
insuring agreement is a general overarching description of what is covered
list discounts, surcharges, and fees
states the agreements and responsibilities between insurer and insured
86
Physical characteristics which increase the probability and severity of loss.
Moral Hazard
Temporary Hazard
Morale Hazard
Physical Hazard
87
____________ award money for the intangible losses such as pain and suffering, mental anguish, permanent injury etc
Punitive Damages
General Damages
Compensatory Damages
Special Damages
88
The insured is required to notify ___ in the event of a theft and notify ____ in the event of a fire.
the Police Department and the Fire Department
the Complaint Department and the Defense Department
the Fire Department and the Police Department
the Defense Department and the Complaint Department
89
The application must show the applicant is at least _____ years old.
21
No Age Requirement
18
16
90
True or False? Cancellation conditions in general allow the insurance company to cancel at any time.
True
False
91
Means any insurance wherein payment by the insurer will be paid directly to the insured or specifically named interests
Liability Insurance
Health Insurance
Property Insurance
Life Insurance
92
Which of the following are true regarding insurance policy ENDORSEMENTS?
All of the Above
Endorsements can be used to ADD COVERAGE
Endorsements can be used to MODIFY POLICIES TO CONFORM TO STATE STATUTES
Endorsements can be used to CHANGE LOSS EXPOSURES
93
Insurance companies are required to provide _____ day's notice of either policy Renewal or Non-Renewal.
10
20
45
30
94
True or False? A warranty is considered part of the insurance policy.
False
True
95
______ pays on a per policy basis if there are two insurers then each pays 1/2, if three then 1/3, if four then 1/4
Pro-Rata
Equal Shares
Primary
Excess
96
This fundamental doctrine holds when there is an unbroken connection between an occurrence & damage that result from it
hard rule of contributory negligence
strict or absolute liability
the doctrine of proximate causation
comparative negligence
97
__ is a policy provision that states "if the insurer adopts a revision to the ins policy which would __ w/o additional $
Colonization; Change Coverage
Liberalization; Broaden Coverage
Liberalization; Limit Coverage
Colonization; Exhaust Coverage
98
Liability insurance means payment will be on behalf of the insured to another, based upon the insured's ___ to another.
Property
Liability
Demand
Deference
99
Is the reduction and/or destruction in use, value, access, custody, or function of persons, property/property loss
Loss
Peril
Indemnification
Hazard
100
All of the following are elements of a contract EXCEPT:
Acceptance
Consideration
Duality
Offer

20-44 Study Guide Part 1 Flashcards | StudBud