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General Lines State Insurance Exam Flashcards | StudBud
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General Lines State Insurance Exam
General Lines State Insurance Exam
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General Lines Agent Study Manual
Flashcards
89 cards
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Practice quiz
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Questions
89
Answers
1
A Personal Lines agent has a fiduciary obligation to:
The manager
Themselves
The customer
The company
2
Uninsured Motorist coverage is used to cover an insured for:
Damage to their car by an uninsured driver
Medical payments
Bodily injury only in a not at fault accident
3
Pete has a DP-3 policy and the following incidents occur. Which is covered under his policy?
An indoor grill overheats and scorches the counter top
An antique lamp falls off the coffee table
Paint spills on the new leather sofa
A thief steals the generator Pete used during the storms
4
Regarding Health Insurance, group rates are:
more expensive than individual rates
less expensive than individual rates
5
An insurer doing business in Florida which was formed under the laws of Puerto Rico is:
None of the above
Alien
Domestic
Foreign
6
The standard Homeowner deductible under Citizens Property Insurance Corporation is:
$1000 on all covered perils and 5% hurricane
$1000 on all covered perils and 2% hurricane
$500 on all covered perils and 2% hurricane
$500 on all covered perils and 5% hurricane
7
HO-3 limit for a destroyed palm tree by lightning
$250
ACV
$500
$1000
8
The residual market source for persons unable to purchase auto ins. through normal channels is:
FWCJUA
FAJUA
FRAJUA
FRWJUA
9
Which of the following is not a benefit under Personal Injury Protection?
Medical expense paid at 80%
Replacement services paid at 90%
Work loss paid at 60%
Death benefit of $5000
10
In an at fault employee accident on the clock, who would the employers insurance company defend
The employee
The owner of the car
All three
The employer
11
All of the following are penalties for not complying with the No-Fault Law except:
Suspension of auto registration and drivers license
Personally liable for benefits under the No-Fault Law
Confiscation of auto
Loss of limited tort exemption
12
When an insurer cancels a HO policy during the first 90 days. how many days notice is required
90 days
45 days
30 days
20 days
13
A Personal Auto Policy provides coverage for all of the drivers of an insured vehicle EXCEPT:
A neighbor who uses the car with the insured’s permission
The insured’s child who is away at school
The insured’s spouse
Damage to property owned or being transported by the insured
14
Uninsured properties under CIPC include all except
Vacant or unoccupied
Properties in disrepair
Property built over water
Buildings under construction for the insured’s residence
15
Hail damage to a car is an example of:
Collision
Other than Collision
Proximate Cause
An exclusion in Part D of the Policy
16
An eligible building under flood coverage must have all except:
Walls and roof
Be on a permanent site
50% above ground
Have approved storm doors and windows
17
What is the provision in an insurance contract called that lists the risks that are not covered
The Insuring Agreement
The Declarations Page
Conditions
Exclusions
18
Under a PAP when does the insurance company cease to defend the insured?
When a lawsuit is filed
When the policy limit is exhausted
When claim is filed
When the policy expires
19
Which of the following is true concerning flood insurance?
Flood insurance only provides building coverage not contents
All building losses are paid on an actual cash value basis
Flood is covered under the HO-3
community applies and starts in the emergency program
20
What classification is Medical Payment coverage when occupying non-owned vehicles?
Optional
Excess
Mandatory
Voluntary
21
Packaging a motor club membership with PIP/PD and indicating the entire package is law required
Appropriate business practice
Good marketing technique
Compliance with statute 453.34
Sliding
22
Which of the following is not a section of the Graham Leach Bliley Act?
The Non-Public Information
The Safeguard Rule
The Financial Privacy Rule
The Pretexting Provisions
23
The threshold must be pierced in order to sue for:
Economic loss
Non – economic loss
Liability damage
Property damage
24
Which of the following is not a Personal Inland Marine (PAF) exclusion?
Inherent vice
Damage from insects or vermin
Theft
Deterioration
25
A person who does not own a vehicle must provide auto liability coverage. What type of policy?
A named non-owner policy
An extended non-owned policy
26
Which is NOT correct for a standard HO-3?
Replacement cost building, ACV contents
Specified perils are the only covered losses
Vandalism covered for building and contents
All risk building, named perils contents
27
Vandalism is not covered after the building has been vacant for how many days under a DP policy
90 days
120 days
30 days
60 days
28
If a car hits me am I collision or other than collision?
Collision
Other than Collision
29
Coverage for defending against claims in an auto accident is:
Available as long as coverage exists&policy limits not used
Unlimited whether or not coverage exists
Available as long as the premiums are paid on time
Limited to the amounts set forth in the limits of the policy
30
$4000 in medical expenses and $4000 loss of income to self. You have Extended PIP and it pays?
$8200
$7200
$5200
$4200
31
An applicant gives false information to the insurance agent during the interview process
Concealment
Defamation
Misrepresentation
Cohesion
32
All of the following are characteristics of an insurance contract except:
Personal
Doctrine of Proximate Cause
Contract of Adhesion
Conditional
33
insurance company is an incorporated insurer without capital stock or shares?
Reciprocal insurer
Fraternal insurer
Stock insurer
Mutual insurer
34
All of the following are major sections of an insurance policy except:
Insuring Agreement
Declarations
Definitions
Exclusions
35
What satisfies the Florida Financial Responsibility Law?
Liability of 10/20/10
Liability of 10/20/10 and Medical Payments
Liability of 10/20/10 and PIP
36
$850 in damage, how much will the insurance company pay with 500 collision/250 OTC deductible $
600
0
850
350
37
Significant and permanent loss of a bodily function allows an action for non economic loss.
False
True
38
What type of health policy provides protection against catastrophic losses?
Hospitalization Expense Insurance
Major Medical Insurance
Catastrophic Medical Insurance
Hospital Indemnity Insurance
39
Which of the following is not a source of underwriting information?
Medical examinations
Interviews of friends and neighbors
The insurance agent
The policy application
40
If Coverage A under a HO-3 policy is $100,000, what is available under Coverage D?
10,000
50,000
$30,000
25,000
41
Under Coverage D how much is available under the DP-3?
30% of Coverage A
10% of Coverage C
10% of Coverage A
20% of Coverage A
42
Which of the following is a “defined motor vehicle” under Florida No-Fault Law?
Public transit bus
Golf cart
18 wheel tractor trailer
Motorcycle
43
Eligibility for flood insurance to be written for a community, it must:
Establish agreements with insurers who provide the coverage
establish & enforce flood control and land use restrictions
Contribute to the losses of all participating communities
Prepare flood insurance rate maps
44
“gray area” or ambiguity is mostly resolved in favor of the insured because insurance is:
Contract of Cohesion
Contract of Indemnity
Contract of Adhesion
45
Under the PAF which would not be covered?
Stamp Collection
Gun collection
Musical instruments
Golf equipment
46
What are the maximum liability limits available to private passenger autos in the FAJUA?
250/500/100
100/300/50
10/20/10
Any limits required by law
47
HO-4 is a form designed for
Condo owners
Renters
Owner occupants
Low value property
48
Which loss settlement is the best example of the principle of indemnity?
Losses settled on actual cash value
Losses where payment is based on sentimental value
Only losses that fall under the Valued Policy Law
Losses settled on a replacement cost value
49
In Florida it is legal to apportion blame in an accident. This is known as:
Liability
Contributory negligence
Comparative negligence
50
Vacancy for more than 60 days suspends which of the following coverage?
Explosion
Vandalism and malicious mischief (VMM)
Windstorm
Hail
51
licensee change in name or address, how long to notify the Department of Financial Services
90 days
6 months
30 days
12 months
52
Extended Personal Injury Protection is for:
Increasing PIP medical benefits for the named insured only
Increasing PIP Medical benefits from 80% to 100%
Increasing liability coverage
Named insured only
53
Under a PAF there is 30 days automatic coverage for newly acquired property for all except:
Jewelry
Cameras
Fine art
Furs
54
The OFR provides regulatory insight to all of the state’s financial service providers, except:
Retail business
Finance companies
Securities industries
Banks and credit unions
55
Replacement Cost would pay for a resident living in their primary home for:
3 months
1 month
10 months
5 months
56
Any person using your covered auto is considered:
An insured
An employee
A named insured
A relative
57
Which are covered by a Homeowner’s policy?
Economic loss to business personal property
Legal liability for injuries from business activities
Economic loss to residence and personal property
58
The tort exemption provided by the Florida No-Fault Law is tied to the:
Driver only
Vehicle only
Driver and vehicle
59
What instrument of the CFO allows insurance companies to sell insurance in the state of Florida
Appointed agents
Certificate of Authority
License
Insurance policies
60
If an SR-22 is required, it must remain on file for:
4 years
1 year
2 years
3 years
61
For an additional amount of premium which of the following is covered on a DP-2?
Broad theft
Fair rental value
Debris removal
Personal property off premises
62
The initial phase of a community’s participation in the National Flood Insurance Program (NFIP)
Beachfront Windstorm Plan
The emergency program
The regular program
The “Write-Your-Own” flood insurance program
63
Personal property coverage does not cover which of the following?
Equipment
Growing crops
Fixtures
Furniture
64
A voluntary or intentional relinquishment of a known right is a:
Subrogation
Estoppel
Waiver
Arbitration
65
Which of the following is not covered under a DP-1 policy?
Debris removal
Others structures
Additional living expense
Fair rental value
66
A mortgage company requires you to buy their insurance in order to receive a loan:
Coercion
Misrepresentation
Discrimination
Sliding
67
Where would you find the insurance company’s promise to pay on behalf of the insured?
Insuring Agreement Section
Exclusions Section
Promise Section
Declaration Page Section
68
50% or more of insurance written for the interest of the agent and their family is called?
Controlled business
The Family Insurance Plan
Joint underwriting
Uncontrolled Business
69
An unexpected or unusual event that is the result of a sudden happening is an:
Accident
Occurrence
Incident
Peril
70
PAP liability will cover all of the following, EXCEPT:
Damages from intentional injuries
Medical costs
Judgment interests
Defense costs
71
Which loss settlement provides “new for old?”
ACV
Market value
Depreciation
Replacement cost
72
What five-hour course is required every compliance period?
Financial responsibility
Personal liability coverage
Ethics
Fraud
73
What is the purpose of PIP?
To reduce claim amounts
To increase claim payment benefits on all claims
To reduce the need to go to court
To reduce claim settlement by the insured’s company
74
ABC Insurance issues a policy written through the FAJUA. ABC Insurance is considered to be:
A standard carrier
A servicing carrier
A non-standard carrier
A carrier
75
Steven has PIP with a $1000 deductible. He has an accident resulting in $5000 in medical bills.
PIP pays 3000
PIP pays 3200
PIP pays 4000
PIP pays 5000
76
Name the insurance where the payment by the insurer is directly to the insured:
Liability insurance
Third party insurance
Property insurance
Property and causality insurance
77
In the state of Florida the standard deductible for hurricane is a:
% of the amount of the claim
$2000 flat deductible
% of the value of the property
% of Coverage A limit
78
Which of the following vehicles is considered a temporary substitute auto under a PAP?
insured purchased auto to replace previously owned
auto rented when the, insured's vehicle is being repaired
auto rented by the insured when the insured is on vacation
neighbor’s SUV borrowed by the insured to run an errand
79
When filing a claim it may be required to submit a form stating facts about the loss:
Accident form
Claims-Report form
Incident form
Proof of Loss form
80
Which of the following would not result in license suspension?
Selling a product for which one is not licensed
Rebating in accordance with a rebating schedule
Calling another agent a crook
Making false entries on an insurance application
81
All of the following are indirect losses except:
A hurricane destroys a building
Rental car expense when an auto is damaged in an accident
A landlord loses rent after a rental home burns
82
Which of the following are policy conditions?
Guarantee and Lender Interest
Concealment and Insurable Interest
Misstatement and Avoidance of Performance
Insured Duties After a Loss and Policy Territory
83
All of the following are considered “transacting insurance” except:
Soliciting new business
Transacting changes and endorsements
Underwriting reviews
Giving quotes and proposals
84
The FAJUA is overseen by:
The licensed agents in the state of Florida
The Department of Motor Vehicles
The Board of Governors
The Florida Department of Highway Safety
85
All of the following are true about the Law of Large Numbers, except:
It acts as the best estimate of the true value
provides data for the # of policies a company should write
provides accurate prediction of future behavior of a group
It forms the basis for probable loss
86
Mary has flood policy. How much property must be flooded before her flood policy would respond
80% of the property
2 acres of normally dry land
2 mile radius of the property
50% of the property
87
All of the following may qualify for a dwelling policy except:
An old frame house on piers and occupied by the owner
A six family dwelling
A single-family residence rented by a salesman
A beach house owned by Acme Corp.
88
An insurance binder is best described as:
temporary agreement to pay a claim pending final settlement
Temporary short-term evidence of coverage
rate manual supplied by one of the rating organizations
large bound volume of rules, rates and forms
89
How many hours of continuing education is an agent required to have each CE compliance period?
14
10
24
28
