All of the following statements are correct concerning Hospitalization Indemnity Insurance EXCEPT

Payments are made directly to the hospital

Proof of financial responsibility can be all but which of the following ?

$30,000 line of credit at the bank

Surplus lines policies must be "exportable" to be sold in Florida which if any are eligibility requirements

Surplus lines coverage must be more favorable than admitted products, Premium rate if surplus lines must be lower than the majority /admitted pro, insurance desired must be available in admitted markets after diligent effo

Insurance companies __ permitted on a "Best Efforts" basis to match quality color or size in the replacement of adjoin

Provide non- insurance benefits to membership

Citizens property insurance corporation is a market of last resort for properties that uninsurable in the voluntary mark

Properties in disrepair, Vacant properties, Properties with excessive or unusual liability exposures

All but which of the following are insurance agent licensing requirements

Applicant must be a natural person at least twenty one years of age

Which doctrine holds that an unbroken chain of events which causes injury or property damage is substantial and effectiv

the doctrine of proximate causation

The surplus lines market expose the insuring public to all but which of the following?

inadequate surplus and capitalizations surplus lines companies expose

Which of the following regarding Wind Mitigation and Wind Mitigation discounts are correct(select as any as apply )

Agents an customer representatives must take 1hour of wind mit CE 2 hours

All of the following are true regarding "contracts of adhesion" Except which of the following?

insurance companies draft the policy language

Sally has suffered a total loss on her 2010 Ford Fusion. Her insurance company is required to pay sally cost to replace

with a comparable vehicle including sales tax

All of the following are "NOT ELIGIBLE" as a named insured for a Homeowners policy EXCEPT:

Individual owner occupant of a 1-4 family dwelling

NO FAULT PIP benefits apply in what amounts ?(Choose all that apply)

Medical benefits are paid at 80% of medical expenses, Work loss is paid at 60% of loss income

In the PAF policy the pairs, sets and parts provision reserves the insurance companies right to:

Elect repair or replace or to restore the pair or set original value

Florida law dictates that all but one of the following is the transacting insurance which of the following does not stat

Processing the payroll of an insurance company or agency

The Office of Financial Regulation has regulatory oversight for Florida's Financial services providers(more than one )

Promote a safe and sound market place, To contribute to Floridas growth with effective regulation industry

Catastrophic Ground Cover Collapse is the geological activity resulting in ALL of the following EXCEPT

Condemnation of the building/dwelling and the insurance company

Insurance contracts are personal contracts were the focus is on?

The person or persons being insured

Typical Fungi limits are____ for each covered loss and ___ for the policy period

$10,000 for each covered loss and $20,000 for the policy period

PIP exceptions known as Thresholds permit the recovery of non economic loss ,if the injury results in all except which

Loss of work longer than 21 days

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20-44 Practice Exam

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1
Stock insurance companies are owned by ___ who elect a board of directors which oversees the management of the company
Shareholders/Stockholders
Policyholders
Stakeholders
Placeholders
2
The DFS has the responsability of claims activity supervision, so that a policyholder may be assured of fair treatment
True
False
3
Florida Statutes explicitly prohibits payment to any unlicensed person any fee or compensation for referral and no fee
False
True
4
All of the following statements are correct concerning Hospitalization Indemnity Insurance EXCEPT
Hospitalization Indemnity Insurance is used as supplement to other coverage
Payments are made directly to the hospital
Benefits are limited to a maximum number of days
Benefits are paid on a maximum daily room rate
5
Proof of financial responsibility can be all but which of the following ?
Posting a cash bond that guarantee responsibility to 10/20/10 limits
$30,000 line of credit at the bank
10/20/10 auto liability limits at the time of the occurrence
Being a qualified self insurer for 10/20/10 limits
6
The appraisal condition in a policy is used to resole differences between the insured and insurance dispute the __ claim
policy conditions
Amount of loss
Cause of loss
policy provisions
7
Surplus lines policies must be "exportable" to be sold in Florida which if any are eligibility requirements
Surplus lines coverage must be more favorable than admitted products
Premium rate if surplus lines must be lower than the majority /admitted pro
insurance desired must be available in admitted markets after diligent effo
None of the above
8
Once an application has been granted the 20-44 personal lines agent license the licensee has__ monthto obtain appointmet
12
36
48
24
9
Insurance companies __ permitted on a "Best Efforts" basis to match quality color or size in the replacement of adjoin
operates benefits basically for its members
Regionalized organizations most of the time
Provide non- insurance benefits to membership
Set up as for-profit organizatons
10
Citizens property insurance corporation is a market of last resort for properties that uninsurable in the voluntary mark
Mobile homes
Properties in disrepair
Vacant properties
Properties with excessive or unusual liability exposures
11
All but which of the following are insurance agent licensing requirements
applicant must be a United states citizen or legal alien lawfully permitte
applicant must pass a background check undertaken by department
Applicant must be a natural person at least twenty one years of age
applicants intended place of business must be in Florida
12
The NFIP flood insurance ____ available in any community that HAS NOT adopted and enforced federal floodplain reglations
YES
NO
IS
IS NOT
13
Licensee___ share commission with a corporation if it is a licensed insurance agency
May Not
May
14
Which doctrine holds that an unbroken chain of events which causes injury or property damage is substantial and effectiv
strict or absolute liability
the doctrine of proximate causation
comparative negligence
Hard rule of contributory negligence
15
The surplus lines market expose the insuring public to all but which of the following?
Inadequate-nonstadard coverage
Competition -surplus lines increase competition and encourage more competit
inadequate surplus and capitalizations surplus lines companies expose
Disruption in market- default of a niche surplus lines insurer ay have
16
The dwelling fire DP-1 policy form "other coverages"__ increase the limits of insurance for each stated coverage
Do Not
DO
17
The Office Insurance Regulation__ the qualifications of insurance company's financial conditions
Rejects
Objects
Examines
Reforms
18
A__ is defined as a private passenger auto pickup and van or trailer not owned by or furnished to or available for use
Non furnished auto
Hired auto
Non owned auto
Limited use auto
19
ERISA has a __ which sets apart for the states all rights not reserved under ERISA
Deemer Clause
Savings Clause
Pre-emption Clause
Supersedes clause
20
The administration of the liquidation is known as :
Receivership
Public assistance
Audit assistance
Conservation
21
The health insurance "general provision" waives premiums if the insured becomes totally disabled the policy remains
waiting period provision
reinstatement provision
waiver of premium provision
Grace period provision
22
Which if any of the following are elements of the No-Fault Law?
All of the above
PIP is the first party coverage which affords coverage to those injured
those that are subject to the law adn comply with the law
No fault law requires PIP coverage be carried by the owners of motor vehicl
23
Major medical insurance policies typically have all of the following EXCEPT
Deductibles
Coinsurance
Maximum Limits
Death benefits
24
Which of the following regarding Wind Mitigation and Wind Mitigation discounts are correct(select as any as apply )
The insured must be put on formal written notice of wind mit discounts
Construction elements must be documented by licensed professionals
Agents an customer representatives must take 1hour of wind mit CE 2 hours
All residential property insurers are required to file loss mit credits
25
All of the following are true regarding "contracts of adhesion" Except which of the following?
insurance companies draft the policy language
Ambiguities are resolved in favor of the insurance company
the parties to the contract have "uneven" bargaining power
the insured cannot negotiate language of policy
26
Medicare Supplement insurance provides coverage for the gaps ,deductibles exclusions and coinsurance in ______
Federal Medicare
travel Insurance
Group health insurance
Traditional Health Insurance
27
Shelby was injured in an auto accident and has $90,000 in injuries and has $1,000 PIP dedu How much will she receive
$90,000
$9,000
$7,000
$10,000
28
Straight deductible's specify the deduction of a flat amount from a loss, regardless of the _____ of the loss
Percentage
Size
Proportion
None of the above
29
Sally has suffered a total loss on her 2010 Ford Fusion. Her insurance company is required to pay sally cost to replace
WIth a rand new vehicle
with a comparable vehicle not including sales tax
with a comparable vehicle less salvage value and less sales tax
with a comparable vehicle including sales tax
30
Payment by the insurer will be based upon the insureds __ to the payee/claimant
Liability
Property
Demand
Deference
31
All of the following are "NOT ELIGIBLE" as a named insured for a Homeowners policy EXCEPT:
Partnership
Individual owner occupant of a 1-4 family dwelling
Corporation
Trust
32
ERISAs language includes a __which deems that employee plans and trusts are not to be construed as insurance companies
Savings clause
Deemer clause
Santa clause
Pre-emption clause
33
The vandalism endorsement in the DP-1 policy does not provide any coverage if the building was vacant for ___ days
30
60
180
90
34
NO FAULT PIP benefits apply in what amounts ?(Choose all that apply)
Medical benefits are paid at 80% of medical expenses
Household/Replacement Services are paid at 50%
Work loss is paid at 60% of loss income
A $100,000 Death Benefit
35
____ is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or determinable benfi
Assurance
Insurance
Perpetuity
Debt
36
Medical payments coverage is primary with respect to other avlb medical payments coverage when occupying automobiles exc
False
True
37
What is the time limit for the limitations on insurer defense provision?
Five years
Three years
One year
Two years
38
Requiring "Insurable Interest" in a Property and Casualty policy upholds the principal of adhesion.
True
False
39
In the PAF policy the pairs, sets and parts provision reserves the insurance companies right to:
the PAF does not have a pairs sets and parts provision
Deny any claim that is a partial loss
Elect repair or replace or to restore the pair or set original value
elect repair or replace or to restore the pair or set to depreciated value
40
Florida law dictates that all but one of the following is the transacting insurance which of the following does not stat
Effectuation of a contract of insurance
Processing the payroll of an insurance company or agency
Preliminary negotiations of an insurance application or policy
Solicitation or inducement of an insurance quote application or policy
41
ERISAs language states that the federally mandated ERISA laws supersede state laws this is known as __
the deemer clause
the savings clause
pre-empting
Protectionisms
42
The Office of Financial Regulation has regulatory oversight for Florida's Financial services providers(more than one )
Maintenance management and matriculation of system regulation
Financial responsibility of individuals and businesses
Promote a safe and sound market place
To contribute to Floridas growth with effective regulation industry
43
Catastrophic Ground Cover Collapse is the geological activity resulting in ALL of the following EXCEPT
Structural damage to the building/dwelling
Condemnation of the building/dwelling and the insurance company
Depression in the ground cover clearly visible to the naked eye
Abrupt collapse of the ground cover
44
Major Medical Health insurance policies typically cover
All of the above
Physicians and surgeons fees
Hospital room and board
operating room expenses
45
Customer representative __ share in commissions with a licensed insurance agent
May Not
No
Yes
May
46
Insurance contracts are personal contracts were the focus is on?
The person or persons being insured
The property being insured
The operations being insured
All of the above
47
Typical Fungi limits are____ for each covered loss and ___ for the policy period
$10,000 for each covered loss and $20,000 for the policy period
$25,000 for each covered loss and $50,000 for the policy period
$100,000 for each covered loss and $300,000 for the policy period
$50,000 for each covered loss and $100,000 for the policy period
48
PIP exceptions known as Thresholds permit the recovery of non economic loss ,if the injury results in all except which
Permanent injury other than scarring and disfigurement
Significant and permanent scarring or disfigurement
Significant and permanantloss of a bodily function
Loss of work longer than 21 days
49
Fiduciaries are individuals or organizations that are required to operate under the duties of good faith and _____
Fair dealing
Timely remuneration
Full acceptance
Settled communication
50
what degree felony is this unauthorized insurer guilty of?
First degree felony
Second degree felony
Third degree felony
51
IN Florida theHO-6 condo policy is required to have a minimum of ___ for the additional coverage of Loss Assessment
$5,000
$3,000
$1,000
$2,000
52
A licensee__ collect any premium in excess or below what required rate known by the licensee at the time of premium coll
no
May not
May
yes
53
Health Insurance policies which are paid on a monthly basis have a ___ day grace period
31
7
10
14
54
All of the following are true regarding the Insuring Agreement in Liability insurance policies EXCEPT:
Insurance company agrees to pay on behalf of the insureds property damage
Insurance company agrees to pay on behalf of the insured for bodily injury
Payments are made directly to the insured or the insureds family members
Insured must be legally obligated to make restitution before insurance pays
55
Insurance companies are required to provide a ____ day notice of either policy Renewal or Non Renewal.
20
45
30
10
56
insurance underwriting may not discriminate upon which if any of the following ?
Creed
Color
Race
Sex
57
Florida Insurance Guaranty Association aka FIGA was created by the Florida congress in 1970 all are correct except?
Surplus lines companies are not eligible for FIGA coverage
handles claims of insolvent property and casualty insurance companies
Is a for-profit corporation
FIGA members are made up of all Florida licensed insurance companies
58
An application for the 20-44 License can seek the license for the purpose of writing "controlled business"
False
True
59
In conclusion an insurance agent can demonstrate ethical behavior by... (Select all that apply )
Knowing an following the insurance laws enacted to protect the insurance
Maintaining current knowledge of the insurance industry
Knowing an following the underwriting and procedural rules pf each company
Practicing the golden rule y demonstrating Honesty,loyalty,fidelity etc
60
Physicians Coverage insurance pays non-surgical physician care at
Hospital visits
at the patients home
All of the above
the physicians office
61
Agents __ share commissions with other agents and customer representatives appointed and licensed to write same insuranc
May
May not
62
AN application for the 20-44 Personal lines agent must show that the applicant is at least__ years of age
16
21
18
25
63
All of the following office, departments and offices are involved in Florida's Financial Services Regulations EXCEPT
Department of motor vehicles
Office of Financial Regulation
Cheif Financial Officer
Office of Insurance regulation
64
Ethics is the study of normal behavior and is the cornerstone of professionalism in the insurance industry
True
False
65
A____ in insurance terms is the reduction and/or destruction in use, value, access, custody, or function of or in proper
Loss
Contract
Policy
Restitution
66
Insurance policies require all changes to the policy to be made in ___to the insurance company
writing
person
fax
none of the above
67
In the Personal Auto Policy(PAP) payment for legal liability on behalf of the insured is for ___and___ to others
Property injury and medical damage
Strict and absolute liability
Bodily injury and property damage
Intentional acts and work related injuries
68
An insurance policy can be changed by adding an__ to a policy
Indemnity
Exception
Modification
Endorsement
69
Which of the office of insurance regulations unit is responsible for property and casualty rates and policies
PC Policy Review Board
Property and Casualty Product Review Unit
Policy Casualty Reiew Unit
Excess and Surplus Lines Unit
70
Most basic property insurance policies state that direct losses will be settled on the__ of the property time of loss
Replacement cost value
Actual Cash Value
agreed value
stated value
71
Uninsured Motorist (UM) law requires that every policy that provides limited liability coverage for a specific "stacked"
elects UM coverage at limits lower than those that apply for liability
rejects UM coverage
elects "Non-stacked" UM coverage
All of the above are options for the insured
72
$60,000 loss annd the first policy has $1,000,000 limit and the second has $2,000,000 limit How much will each pay ?
First company $20,000 and second company $40,000
First company $60,000 and second company $60,000
First $40,000 and second $20,000
First company $1,000,000 and second $2,000,000
73
In the dwelling fire policy Coverage D- Fair rental value protects the insured for loss of fair rent if
Payments made compensate
the dwelling is damaged by a covered peril
The dwelling is uninhabitable
All of the above
74
The broad form DP-2 policy includes all of the DP-1 coverages and adds which of the following perils(choose as many appl
Nuclear /Flooding
Accidental discharge or overflow
Falling objects/weight of ice snow or sleet
Volcanic eruption
75
ppo provide the insured with comprehensive health services with focus on
Manage care
cost containment
All of the above
flexibility
76
MEWAs__considered by Florida Statute and __ required to obtain a certificate of Authority
ARE/ARE
no
ARE NOT/ARE NOT
yes
77
Medical payments are payments for necessary medical and funeral expenses rendered within__years from date of incident
3
1
2
4
78
All of the following are true regarding " Insurable Interest " Except
It is the economic intrest in property
it must exist before an insurance policy will pay for loss
it is the extent to which an insured might be indemnified
Insurable interest is not required in a property insurance policy
79
John purchased an Automobile insurance policy thirty days ago ACME insurance company which if any are reasons he cancels
John purchased replacement coverage with another insurance company
John sold his vehicle to his Aunt Nellie
All of the above
John totaled the vehicle
80
PEOs are not considered a MEWA because a true employer employee relationship exist
True
False
81
Select all of the following which may be included in a Sworn Proof Of Loss
Any other applicable insurance
inventory of damaged personal property
Date Time and Cause of loss
Amount of premium payments made
82
Which policy pays for the cost associated with nursing home care ?
Long term care Insurance
Medicare supplement
Hospital Indemnity Insurance
Health Supplement and Care Insurance
83
Mutual Insurance Companies are owned by ____who elect a board of directors which oversees the management of the company
Placeholders
Policyholders
Stakeholders
Shareholders
84
Through which of its divisions does the department of Financial Services protect the public against fraud?
Consumer Fraud Detection Home
Department of External Affairs
Division of Public Assistance Fraud
Department of Internal Affairs
85
__ is the transfer by primary insurers to other insurers who specialize is insuring the portfolios of insurance companys
Insurance
Assurance
Reinsurance
Surety
86
which is correct -one Insurance is not enforceable to support illegal purposes Two An insured cant profit by intentional
Both statements are correct
Neither statement is correct
Statement Two is correct
Statement One is correct
87
The department of Financial Services requires a license holder to place the department on notice of changes but which?
Name change
network service provider change
Residence address change
Business address change
88
No Fault requirments for non residents who are not required to register in florida .for more than __preceding 365 days
60 days
180 days
30 days
90 days
89
All property insurance policie issued in Florida must provide coverage for the peril of sinkholes Statutory requirement
False
True
90
What was the proximate cause of all the damage ?
the food truck ricocheting into the second food truck
None of the above
the man stepping into oncoming traffic
Car skidded into the first food truck
91
The medical benefits are paid under PIP are up to __% of reasonable expenses for necessary medical services
100
50
80
25
92
Which is correct One to promote a safe and sound marketplace Two to contribute to Florida's growth effective regulation
Statement One is correct
Statement Two is correct
neither statement is correct
Both statements are correct
93
Florida law deems information provided by the insured in an insurance application to be ______ and not ______.
Representations and not warranties
Representations and not perjuries
warranties and not representations
Warranties and not perjuries
94
Sally lives in Georgia , wants to get her Florida 20-44 to sell auto insurance in Georgia. Can Sally obtain a 20-44 ?
Required to be "bona fide resident " whos business is in Florida
She can use her Florida license to sell auto insurance in Georgia
All of the above
Required to a place of business in Florida , is identifiable/Accessible
95
An insurance license can be revoked for al but which of the following?
Misrepresentation in the procurement of any license
All of the above are reasons the department can suspend revoke or refuse
Willful misrepresentations of any insurance policy or contract
Licensee fraud or dishonest practice in the business of insurance
96
The Policy territory for the personal auto policy includes all EXCEPT which of the following
Bahamas
Puerto Rico
US its territories or possessions
Canada
97
______ market is the standard market that most insurance policies are purchased in
Surplus lines
Admitted
Excess lines
Preference
98
insurance agents license enables the license holder to engage in the business , specifically prohibited are
Controlled business
both are correct
Unlawful rebating
neither are correct
99
Insurance companies are required to provide copies of estimates relied upon in payment of claim.Loss payment to be ____
All of the above
Arbitrary and capricious
Dispute and unresolved
Fair and Timely
100
Which if any of the following non compliance penalties for not complying with the Florida's No-Fault Law
Personally responsible for payment of PIP benefits
Suspension of drivers license and vehicle registration
No immunity from legal liabilities which are granted to those who comply
All of the above

20-44 Practice Exam Flashcards | StudBud