What are the current insurance requirements for a registered motorcycle in Florida?

there are currently no ins requirements to register a motorcycle in FL

What is the overarching "wrongness" with sliding, coercion, and misrepresentation in the sale of insurance products?

precludes consumers from assessing what they need and what they r purchasin

You have just received your insurance Agent License. You off er all potential clients $50 if they get a policy from u

this is considered rebating and is not lawful

Which if any of the following statements are correct?

risk retention groups are orgnzd around a common bus prac, product or act, risk retention groups are owned by their policyholders

Which of the following is NOT a key objective of the Office of Financial Regulation?

to ensure high profits for Florida's financial service providers

An endorsement to an insurance policy changes the policy in some way. All of the follow are examples of an end excpt

the insured pays her policy premium on its due date

Why is the definition of "Who is an Insured" important?

policy only affords coverage for individual(s) or parties designated as ins

Liability under the PAP expenses covered when insured legally liable

Includes expenses for a legal defense, Bodily injuries, Property Damage

What is the major "common thread" running between defamation and false advertising?

false statements intending to misrepresent

The Terrorism Risk Insurance Act (TRIA) created a federal "backstop" for insurance claims related to acts of terrorism.

the events of September 11, 2001

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

stated value, replacement cost endorsements, direct payments to a claimant in a liability claim

Surplus lines policies are "exportable" if they meet all BUT which of the following features?

surplus lines cov prem must be less than the majority of admtd products

Which of the following are typical exclusions in property policies?

intentional losses by the insured, power failure, war, nuclear hazard

All of the following are eligible classes of property in an Inland Marine or Homeowners policy EXCEPT which

Inventory of insured's retail pet store

All of the following are penalties for non-compliance with Florida's compulsory insurance requirements EXCEPT

repossession of the registered vehicle

Which of the following are "obligations" of the insurer as regards the insured?

deal with the insured in good faith and fair dealing, provide a defense of the insured in the event of a lawsuit

Which of the following statements about Citizens are correct?

Citizens Property Insurance Corporation policies have limited endorsements, Citizens Property Insurance Corporation policies exclude animal liability, Citizens policies are intended to be a "market of last resort"

The "appraisal clause" in a policy is used to:

resolve disputes as regards the amount of damages

A Tenant occupied home with a DP-3 policy insuring it has Coverage D automatically in the policy. What does cov D cover?

Fair Rent in the event prop damaged due to a covered peril and uninhabitabl

The Insuring Agreement states all but which of the following?

the Insuring Agreement states the policy premium

A ________________ license enables the holder to solicit, sale, and service only Personal Lines of insurance.

20-44 Personal Lines Agent License

How will you explain the concept of "inherent vice" to your insured?

inherent vice is an internal quality of the property which leads to its own

An insured is convicted of a DUI. Have they pierced Florida's Financial Responsibility law?

Yes & may post a bond if she does not carry the prescribed liab lim

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20-44 Review

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1
What are the current insurance requirements for a registered motorcycle in Florida?
$10,000 of Property Damage Liability and $10,000 of PIP coverage
$10,000 Personal Injury Protection is the only required coverage
$10,000 per person/$20,000 per occurrence BI Liability and $10,0000 PD
there are currently no ins requirements to register a motorcycle in FL
2
What is the overarching "wrongness" with sliding, coercion, and misrepresentation in the sale of insurance products?
good faith and fair dealing
precludes consumers from assessing what they need and what they r purchasin
sliding and coercion are okay but misrepresentation is not good
there is nothing wrong with sliding, coercion, or misrepresentation
3
You have just received your insurance Agent License. You off er all potential clients $50 if they get a policy from u
this is concerning twisting and not lawful
this is considered false advertising and not lawful
this is concerning churning and is not lawful
this is considered rebating and is not lawful
4
The number one source of underwriting information is:
third party reports
inspections and reconstruction estimates
the application of insurance
the internet
5
Which if any of the following statements are correct?
risk retention groups are orgnzd around a common bus prac, product or act
mutual insurance companies are owned by shareholders
risk retention groups are owned by their policyholders
stock insurance companies are owned by their policyholders
6
Which of the following is NOT a key objective of the Office of Financial Regulation?
to provide oversight for Florida's financial service providers
to ensure high profits for Florida's financial service providers
to promote a safe and sound financial marketplace
to contribute to Fl growth with effective regulation of the finan svcs ind
7
An endorsement to an insurance policy changes the policy in some way. All of the follow are examples of an end excpt
the insured pays her policy premium on its due date
the insured adds her sixteen year old daughter to her auto policy
Fl pol statutorily add Catastrophic Ground Collapse cov to prop policies
the insured buys a new car and adds the new vehicle to her policy
8
Why is the definition of "Who is an Insured" important?
Who is an Insured" can never extend beyond immediate family members
it tells ins co home office staff how to address the insured when they call
policy only affords coverage for individual(s) or parties designated as ins
all insured's have to be stated specifically by name in a schedule
9
Which, if any, of the following statement are true regarding "unfair" insurance practices?
all of the above are correct
it is unlawful to deny claims wo conduct reasonable invest based on av info
knowingly making any unfair discrim btw indvd of the same actly class unlwf
it is unlawful to ref to insure based solely bec of race, color, creed
10
Liability under the PAP expenses covered when insured legally liable
Includes expenses for a legal defense
Bodily injuries
Property Damage
Personal Injury
11
What is the major "common thread" running between defamation and false advertising?
false statements intending to misrepresent
good faith and fair dealing with the insurance consuming public
insurer profits
effective sales techniques
12
Insured has bldg worth $500K, insurance of $400K with an 80% coins prov, Bldg loss is $50K how much will be paid?
$0
$500,000
$50K
$400,000
13
The Terrorism Risk Insurance Act (TRIA) created a federal "backstop" for insurance claims related to acts of terrorism.
the first Gulf War
the Bay of Pigs Invasion
the events of September 11, 2001
the attack on Pearl Harbor
14
Exceptions to the rule of indemnity include which of the following?
actual cash value
stated value
replacement cost endorsements
direct payments to a claimant in a liability claim
15
What is the minimum amount of coverage for Loss Assessment in a Florida HO-6 Condominium policy?
$5000
$1000
$2000
$10000
16
Surplus lines policies are "exportable" if they meet all BUT which of the following features?
surplus lines cov prem must be less than the majority of admtd products
surplus lines coverage cannot be greater that admitted policy offerings
surplus lines coverage cannot be available in the admitted markets
surplus lines coverage cannot have more favorable deductible options
17
Which of the following are typical exclusions in property policies?
intentional losses by the insured
power failure
war
nuclear hazard
18
Insured wants an umbrella/excess liab policy that prov cov in excess of underl pol and doesnt want same limits-type?
Umbrella Uno
Follow Form
Stand Alone
Umbrella Solo
19
All of the following are eligible classes of property in an Inland Marine or Homeowners policy EXCEPT which
Jewelry
Fine arts
Inventory of insured's retail pet store
Cameras and camera equipment
20
__________ damages are the tangible and calculable losses such as: medical bills, repair invoices, and lost wages.
compensatory
special
punitive
general
21
An insurer must provide a _________ __________ upon which any claims settlement is made.
kind attitude
best guesstimate
strong opinion
written estimate
22
Perils are the specific risks or causes of loss covered by insurance. In a high crime area which would you be con about?
fire & lightning
earthquake & volcano
wind & hail
theft & vandalism
23
Fun zone has 4 manufacturing plants with one aggregate limit of $10,000,000 (total for all plants) Type Policy Limits?
concurrent
Blanket
additive
Specific
24
Insured's ring stolen on vac, scheduled for $10K on policy, Current Value is $20k-Ins Co pays $10K example of
stated value (agreed value)
actual cash value basis
depreciation basis
replacement cost basis
25
Which "other insurance" provision reads: "each policy pays based upon it proportion to all applicable policy limits" ?
pro-forma
pro-rata
excess shares
equal shares
26
__in an insurance policy specifically express $ amnt of responsibility of the ins co to pay to insured/behalf of insured
franchise limits
statutory limits
policy limits
responsibility limits
27
All of the following are penalties for non-compliance with Florida's compulsory insurance requirements EXCEPT
no "immunities" from leg liab which are granted to those who do comply
repossession of the registered vehicle
susp of driver’s license and vehicle registration of the registered owner
persl liab for paymnt of PIP benefits to those entitled to rec such benef
28
All of the following are defined as a "your covered auto" by the Personal Auto Policy (PAP) EXCEPT?
Vehicles shown on the Declarations Page
Newly acquired autos
Any trailer you own
Any vehicle you own
29
Which of the following are "obligations" of the insurer as regards the insured?
deal with the insured in good faith and fair dealing
determine negligence in first party losses
provide a defense of the insured in the event of a lawsuit
maintain home office on a "white glove" basis
30
For non-payment of prem the insurance co has to give how many days notice?
180
10
30
45
31
When hiring a painting contractor to paint the inside and outside of house ask for document showing fully insured
Occupational license
Annual Report filed with the State of FL
Resume, Port Folio, Letters of recommendation
Certificate of insurance
32
Florida law requires stacked UMBI coverage on all policies with limits equal to the policy's liability limits unless
The insured elects non-stacked UMBI
The insured elects UMBI coverage lower than the policy's liability limits
All of the above
The insured rejects UMBI coverage
33
Subrogation upholds the principle of ________________.
responsibility
transfer-ability
indemnity
recovery
34
Which of the following statements about Citizens are correct?
Citizens Property Insurance Corporation policies have limited endorsements
Citizens market of last resort must insure any property in Florida
Citizens Property Insurance Corporation policies exclude animal liability
Citizens policies are intended to be a "market of last resort"
35
The "appraisal clause" in a policy is used to:
determine "who is an insured"
none of the above
resolve coverage issues
resolve disputes as regards the amount of damages
36
Insurance is designed to offset the financial impact upon an insured of pure risk. Which reflects concept of risk?
neither A or B are correct
both A & B are correct
pure risk" is only the chance of loss
"speculative risk" is the chance of loss or gain
37
A Tenant occupied home with a DP-3 policy insuring it has Coverage D automatically in the policy. What does cov D cover?
Thirty days coverage for removed property at a temporary location.
Finan Loss for addl expenses to maintain normal standard of living
Debris Removal
Fair Rent in the event prop damaged due to a covered peril and uninhabitabl
38
The Insuring Agreement states all but which of the following?
the Insuring Agreement states the policy premium
the Insuring Agreement list the general overarching descrpt of what is cov
the Insuring Agreement states that compliance with conditions exists
the Insuring Agreement states that policy contains all agreements
39
___________ damages are awarded by the court to a third party claimant to punish the defendant.
punitive
compensatory
special
general
40
Insurance companies are required to provide a ___ days notice of a policy renewal or non-renewal
30
20
10
45
41
A ________________ license enables the holder to solicit, sale, and service only Personal Lines of insurance.
6-20 Personal Adjuster Agent License
4-40 Personal Lines Agent License
20-44 Personal Lines Agency License
20-44 Personal Lines Agent License
42
Your PAP insured has struck a deer. Which Personal Auto Policy coverage would pay for the damage to the insured veh?
PD or BI
Collision
Property damage liablity
Other than collision
43
HO-6 Condo policy is required to have a minimum of $2,000 for Loss Assessment Coverage and the coverage is statutorily
"pro-rata"
"equal shares"
excess
primary
44
A “____________” is a vehicle not owned by or avlbl for the reg use of the NI or a family mem insd hires, rents, leases
facultative auto
hired auto
non-owned auto
owned auto
45
How will you explain the concept of "inherent vice" to your insured?
Inherent vice is when an insured intentionally damages their own property
inherent vice is an internal quality of the property which leads to its own
inherent vice is when a loss occurs after the policy term has expired.
None of the above
46
An insured is convicted of a DUI. Have they pierced Florida's Financial Responsibility law?
All of the above
Yes & may post a bond if she does not carry the prescribed liab lim
Alcohol related offenses only trigger Fl Fin Resp if an auto accident ocrd
yes and must now carry liability limits of $250,000/$500,000/$100,000.
47
NWS categorizes storms as a hurricane which includes the time of a warning AND all the way through _hrs after term warn
96
48
24
72
48
Jack was injured in an auto accident and has a PIP Claim with $8,000 in injuries and a $500 PIP deductible. Claim Pay
$6000
$7500
$8000
$8500
49
_______________ damages award money for the tangible and intangible economic loss suffered by a third party claimant.
general
compensatory
punitive
special
50
An agent convinced an insured to cash in life ins policy to go with another life ins co-there is no benefit to insured
Churning
Twisting
Not guilty-policies re-written for a variety of reasons
Not guilty of twisting or churning if app given after sale
51
Insured has a combined limit of $300K in accident with 4 people w/$150K in injuries each. How much will policy pay?
$500K
$600K
$300K
$400K
52
Sam in accident w/ 250K injuries-other party's lmts 50/100/50. Sam rec PIP ben $10K, what will Sam' UMBI cover 100/300
$190,000
$100,000
$200,000
$250,000
53
Property Damage is defined in the Personal Auto Policy (PAP) as
None of the above
bodily harm, sickness or disease, including death that results"
liability incurred as a result of errors or omissions in performing profess
physical injury to, destruction of or loss of use of tangible property"
54
The PAP defines a "your covered auto" to include temporary substitutes if an insured vehicle is unavailable due to
Business Travel
All of the above
Vacation
Loss or Destruction
55
Medicare Supplement Insurance must be returnable within ___ days of purchase for a full premium refund.
30 days
90 days
10 days
45 days
56
The Department of Financial Service can request which of the following from an agent, agency, or insurance company?
claim files and claim information
all of the above
financial records
rate and policy filings
57
All of the following may be required in a Sworn Proof of Loss request by the insurer Except?
statement as to the date, time and cause of loss
statement as to other applicable insurance to the loss
an inventory of damaged property
a copy of the original application of insurance
58
Which of the following are required for a license holder to maintain their license?
financial accounting records must be kept for at least seven years
continuing education every five years
Fl law requires all license holders to be duly apptd by appointing entity
notify the department of name or address change within 30 days of the chang
59
All of the following are required characteristics for a recoverable catastrophic ground cover collapse claim EXCEPT?
a geological sinkhole as the sole cause of the ground cover collapse
depression in the ground cover clearly visible to the naked eye
an abrupt collapse of the ground cover
structural damage to the building/dwelling
60
All of the following are "duties of the insured after a loss" EXCEPT:
authorize the insurer to obtain medical reports and records if appcpble
give the insurance company prompt notice of loss
submit to an examination under oath
abandon property to insurance company
61
Actual Cash Value as a loss settlement basis is current cost to replace an item less an allowance for ___
depreciation
agreed value
replacement
inflation
62
Woody turned on his car, shifted the car into drive instead of reverse, drove into his own garage. Policy respond?
Collision coverage will cover the loss to his car less collision dedt
Woody’s Auto policy will pay for damage to Woody's garage door
Woody’s Property Damage Liability coverage will cover the loss to car
Woody’s Comprehensive coverage will pay to fix Woody's car
63
All of the following are considered an "occurrence" as regards insurance claims and coverage except?
injury or damage from an incidence
an intention by the insured to cause injury or damage
injury or damage from an accident
injury or damage caused by continuous or repeated exposure same gen cond
64
The Preferred Risk Flood Policy is available in which Flood Zones?
C
X
A
B
65
All of the following regarding Policy Form Types and covered perils are correct EXCEPT?
HO-2 policy is written on a "named perils" basis for all Section
HO-3 policy is written on a "named perils" basis for all Section
HO-4 policy is written on a "named perils" basis for all Section
HO-6 policy is written on a "named perils" basis for all Section
66
The Personal Auto Policy provides liability coverage to those that have the status of?
Insured
Claimant
Plaintiff
All of the above
67
Johnny involved in an at fault auto accident another party was injured. He has limits of 10/20/10. FL Fin Resp satisfd?
Yes, as Jonny carries liability limits greater than or equal to 10/20/10
FL Finl Resp law does not have liab law does not have liab limit requmnt
No, he has injured another party in an automobile accident
No, as Jonny did not carry liability limits equal to or greater than 100/30
68
Carol, your PAP insured, was inj in his best friend's car when he tripped over shoe while extg the car-will med pay covr
Med Pay coverage is for third party losses and would not respond
Carol's Medical Payments coverage is Excess when occupying a non-owned auto
Carol's Med Paycoverage only covers incidents in the insured's vehicle
Carol's Med Pay coverage is Primary when occupying a non-owned auto
69
(FAJUA) is a residual market for individuals who cannot obtain automobile insurance in the private – competitive market.
the FAJUA operates in Florida, Georgia, Alabama, and South Carolina
the private auto insurers share in the operating profit or loss of FAJUA
sells directly via 800-GET-FAJUA
(FAJUA) is a residual market for individuals who cannot obtain auto insurer
70
All of the following can be found on a Declarations Page EXCEPT?
insurance company's name
coverages
insured's name
A.M. Best rating
71
Which are true regarding the "cancellation" of insurance policies?
insurance co can cancel at any time
cancellation can only take place if mutually agreed to and in writing
Canx cond allow insured to cancel at any time
an insurance company must provide some specific number of days to cancel
72
What does the Gramm-Leach-Bliley Act require insurance companies to do?
both A & B
safeguard customer's personal information
Neither A nor B
requires accuracy of information in consumer reporting agency's
73
Insurance is a _ whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benft
gamble
requirement
contract
risk retention technique
74
Jim Smith has just purchased a Condominium and calls your agency to purchase a policy. Which policy type will you sell
HO5
HO4
HO6
HO3
75
Insured has acc with roadbed. Don't carry collision, OTC has a $100 ded, vehicle has $1000 in dmgs, how much will collct
$900
$1000
$0
$100
76
John said he has insurance coverage with a company your agency represent on the phone. Can you bind coverage orally?
Yes, coverage can be bound orally or in writing
No, coverage can only be bound in writing.
No, coverage can be bound orally or in writing
Agents cannot bind insurance coverage; only ins co can bind coverage
77
What is the primary underlying requirement of the insured as regards"prompt notice of loss or claim" to the ins co?
indemnification
payment
reformation
notification
78
These policy sections "qualify" and place "limitations" on the insurer's responsibility to perform and/or pay.
Conditions
Perils Insured Against
Insuring Agreement
Definitions
79
Ins is predicated on the stat concept of the which suggest the more exposure we have the study the more likely accurate
law of standard deviations
law of averages
law of large numbers
law of medians and modes
80
Which of the following are regulated by the Office of Financial Regulation
pawn shops and auto dealerships
insurance companies and tax preparation services
banks and credit unions
race tracks and casinos
81
The rule of law in Florida is _______________ negligence.
contributory
comparative
absolute
strict
82
Bob's laptop was stolen at an event and a brand new laptop just like Bob's cost $1,499. Insurance pays $999. Exm of?
actual cash value basis
replacement cost value basis
deprecaition basis
none of the above
83
"We will provide the insurance described in this policy in return for the premium and compliance w/all applicable provis
Subrogation
Miranda Rights
Insuring Agreement
Liberalization Clause
84
The HO-4 Form is the ________________ Policy Form.
Tenant Broad Form Lessors Risk Policy Form
Mobile Home Owners Broad Form for Mobile Home Owners
Unit-Owners Condominium Policy Form
Contents Broad Form Renters Policy Form
85
Janitor waxed the floor and didnt put up wet floor signs. 10 customer's fell & were injured. Court ruled stores fault
Management
Diligence
Ownership
Negligence
86
What is the key distinction between an insurer and a reinsurer?
insurers prim engage in direct protect indvd & bus: reinsurers insurers
insurance companies are domestic and reinsurers are alien
insurers are organized as mutuals and reinsurers are organized as stck co
ins co protect against fortuitous events and reinsurers do not
87
Aaron has an automobile insurance policy with single limit liability coverage Which could be Aaron's policy limits?
10/20/50
25/50/25
500
50/100/50
88
In the event of a loss there are addl supplmntry payments made by an insurer. Which of the following is not a sup paymt
premiums and fees due
pre-judgement and post-judgement interest
first aid expenses
appeal bonds and bail bonds
89
If the mediation results are agreeable to both parties is the mediation binding?
Neither of the above are correct
yes, but neither party can rescind the settlement agreement wth 3 bus days
Both of the above are correct
yes, but to be binding both parties must agree in writ on any settled amt
90
All of the following are possible consequences for aiding and abetting an "unauthorized insurer" EXCEPT?
responsibility to pay for all unpaid claims
third degree felony
double "secret" probation
suspension and/or revocation of insurance licenses
91
What must be added to the DP-1 policy form before the Vandalism peril can be added to the policy.
Extended Coverages (EC)
Additional Coverages (AC)
Incidental Coverages (IC)
Liability Coverages (LC)
92
Parents or guardians of minors are ________ and __________ liable with the minor for acts of the minor.
jointly and severally
sometimes and infrequently
sad and regretfully
totally and willfully
93
Flood or Flooding is defined as the partial or complete inundation of ___ or more acres of normally dry land or propts
5
2
10
1
94
Which major fed law was established to promote accuracy, fairness, and privacy of info in the files of consumer rep agnc
Fair Credit Reporting Act
Terrorism Risk Insurance Act
ERISA
Gramm-Leach-Bliley Act
95
Jill cannot find her watch anywhere and there is no sign of forced or unlawful entry into her home. Name occurrene
mysterious disappearance
robbery
theft
burglary
96
All of the following are true regarding an agent's fiduciary responsibilities EXCEPT?
funds held on behalf of insureds and ins cos must be held in a sep acct
financial accounting records must be kept for at least three years
licensees may collect prem amnts bel what is reqd but never in excess requ
licensees may not share commission with a corp unless the corp is lic agenc
97
This policy sections state what is not covered by the insurance policy either reducing what is covered or eliminating it
Exclusions
Perils Insured Against
Conditions
Insuring Agreement
98
As regards "the purpose of an insurance license", which if any of the following are true
rebating is generally unlawful
license holder shall engage in good faith and fair dealing w/ insuring pub
the license is not to be issued for the sole purpose of selling
an agent's best sales techniques include churning, twisting, and bundling
99
Which of the following are true regarding Wind Mitigation credits?
agents must take 10 hour of Wind Mitigation continuing education
Wind mitigation forms & rules must be filed w/ the OIR for credits to apply
gable roofs are eligible for a discount; hip roofs are not
opening protection is used to mitigate the penetration of structures
100
How old must an applicant be to be eligible to obtain an insurance License?
No age limit but must be US citizen
18 years of age
21 years of age
No age limit but have to pass exam

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