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CPIC offers which of the following?
All are functions of the CFO EXCEPT:
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1
All are functions of the CFO EXCEPT:
Pass the insurance law
Revoke insurance licenses
To administer the insurance law
Monitor Financial Solvency of the insurers
2
CPIC offers which of the following?
HO 2, HO 3, HO 4, HO6, HO8
HO 3, HO 4, HO6, DP1, DP3
DP 2, DP 3
HO 2, HO 3, HO 4
3
All is considered Transacting Insurance EXCEPT-
Underwriting
Selling insurance
Servicing the client needs
Negotiating insurance
4
"Golden Rule" exception is:
Doing what is right for others
Obey all laws
Releasing damaging information about someone reputation
Placing the needs of other before your own
5
All of the following are part of the co-insurance equation EXCEPT:
Co-insurance
Deductible
Value Property
Loss
6
All of the following are penalties for representing an unauthorized insurer EXCEPT?
"Second-degree misdemeanor"
"Revoked License "
"Third degree felony"
"Responsible for unpaid claims"
7
The loss conditions spell out the insured "Duties in the Event of a Loss". EXCEPT:
Make a complete inventory of the damaged property
Cooperate with the insurance company
Wait patiently for the adjuster to call
Protect from further loss and Give prompt notice
8
Under the Supplementary Payments section of the Personal Auto Policy, which is correct?
Pays only $100 per day of loss wages
Must purchase if desired
It is paid as Excess over the liability coverage
The deductible applies to this coverage
9
What is NOT a standard deductible for Physical Damage available under the FAJUA?
$1,000
$250
$500
$2,000
10
What is considered to be a temporary replacement vehicle?
Motorcycle the insured is renting
Renting a trailer
Driving a taxi, while vehicle is being repaired
Vehicle is borrowed while the insured vehicle being repaired
11
What keeps a part owner of a building from receiving full value if a fire occurs?
Assignment
Subrogation
Insurable Interest
Severability
12
Duties of the adjuster at the time of the loss is:
Investigate the claim
Make an inventory of the insured's personal property
Wait for the injured party to call the company before invest
Go see the insured in person
13
Under the Theatrical Property Coverage Form, which of the following would be covered?
Scenery, props & Costumes
Rental Companies
Carnivals & circuses
Supply houses
14
What does the Department of Financial Services not do?
Supervise claims activity
Monitor Financial Solvency - on site inspections
Enforce Penalties on laws passed by OIR.
Investigate charges of unethical conduct
15
day to report the final disposition of any administrative action taken against them to the DFS?
14
7
5
30
16
In Ethic's, what best defines Altruism?
Doing what is right for you, it is the right thing to do.
The desire to achieve something great
The highest goal is to aspiration to put others before self.
Look out for best interest of company
17
Define open perils.
Restricted by specifically named exclusions
Broadened by exclusions
Broadened by additional named perils
Restricted by specifically named perils
18
Who are the parties to the insurance contract?
The insured and the individuals they cause harm too
The insured and their legal counsel
The insured and the customers
The insured and insurance company
19
What requires an insurance company to pay the policy limit when there is a total building loss?
Florida Value Policy Law
Building Ordinance Law
Subrogation
Citizens Property Insurance
20
All of the following are loss settlements valuations except:
Actual cash value
Replacement cost
Agreed value
Appraisal
21
What is a property insurance option which provides that the policy limits will increase?
D. Twisting
B. Indemnity
C. Subrogation
A. Inflation Guard
22
The agent has to notify the state when their phone number changes within how many day?
60 days
120 days
30 days
90 days
23
Generally a higher deductible means:
Broader coverage
Lower premium
Higher policy limits
Higher premiums
24
Sliding is best described as -
Misrepresenting the basic coverage.
Putting coverage for motor club on without advising member
Providing children toys for charities
Ancillary coverage for explosion
25
Of the following is not considered an owner of a defined motor vehicle under the No-Fault law?
Lessee of a vehicle with option to purchase
Debtor in possession
One who holds legal title
Lessee of a vehicle for 3 months
26
MEWA (Multiple Employer Welfare Arrangements) best represent:
Health
Life
Property
Casualty
27
There are two policies on one house when a claims is made. How will it pay?
Both policies equally
Both pay separately
Pro-rata
Only one will pay
28
A collective bargaining agreement between the union and the employees is a bona fide is called?
Forbidden by Federal Law
Union Plans
Associate Plans
Pre-Emption
29
What is a liability clause which means that insurance applies separately to each insured?
Pro-rata Share
Severability
Florida Value Policy law
Indirect Damage
30
When a company advertises information that was intentionally false, this is known as:
Products and Completed Operations
Twisting
Rebating
Misrepresentation
31
Admitted insurance companies - must?
Permitted to discriminate
Ask the regulatory office to sell their insurance policies
Insurance Company receives a Certificate of Authority
Can twist policies, since they are approved
32
Florida agents can work and sell in another state in which of the following situations?
Non resident license in the state they are selling a policy
Does not have to have a license
In bordering states
Must be related to a person in that state
33
Insured has a custom pick-up. What would the insured purchase?
Audio, Visual, Sound Receiving Equipment
Included within the Personal Auto Policy
Customized Equipment endorsement
Broad Form Coverage
34
Money placed in a program under the ERISA regulation is considered?
Dividend
Contribution
Premium
Surplus
35
Continuing education hours for a licensed agent must include _____ hours of Law & Ethics?
10 hours
5 hours
15 hours
2 hours
36
Insured has a home under construction and has not moved in. Theft of some of the construction.
D. Specifically excluded
B. Only materials for contents
C. All covered as theft is a covered peril
A. Only materials for building the roof
37
The highest motive for an agent to best serve their clients is?
Treating people as you want to be treated
Money
Looking good to your insurers
Commission Agent received
38
Towing and Labor Endorsement under the PAP provides?
100, 200, 300, 500
75, 95, 125, 150
25, 50, 75, 100
50, 75, 100, 125
39
What is the definition of a "Hazard"?
The cause of a loss
Statements guaranteed to be true
Proximate Cause
Item that increases the probability of a loss
40
Direct loss includes all except
Loss of Use from a fire
Vehicle running into the insured building
Fire damage to a commercial building
Physical harm to tangible property
41
Diamond earrings insured for $10,000. One was lost and the remaining one was valued at $3,000
$ 3,000
$ 7,000
No Coverage
$10,000
42
Insured purchased Extended PIP. The insured and a passenger were injured in an accident. who?
Extended in not permitted by law
Insured and Passenger
Insured only
Passenger only
43
When can an insurance company be audited?
every year
every 6 months
every 5 years
every 3 years
44
How many years is an agent required to maintain records ?
2 years
4 years
5 years
3 years
45
If the agent believes that they had the authority to meet a written contractual obligation.
Implied Authority
Express Authority
Regulatory Authority
Apparent Authority
46
Which of the following is considered "underinsured"?
Insured's claim was denied by the at-fault party.
Insured was involved in a Hit and Run
Insured did not have insurance.
Insured didnthave enough insurance to cover all of the loss.
47
All of the following are ways that liability limits can be expressed except:
Single limit
Aggregate limit
Statutory limit
Split limit
48
What does Estoppel mean?
The person can be stopped from reinserting their rights
Determining the amount of the damaged property
Voluntary relinquishment of a known right
Transfer of rights to the insurance company
49
The main coverage problem area involving unauthorized insurance agencies is:
Health Insurance
Personal Auto Insurance
Life Insurance
General Liability
50
What is voluntary or intentional relinquishment of a known right?
Estoppel
Transfer of Risk
Waiver
Rebating
51
When is Forced Place coverage permitted?
When the mortgage company does not maintain coverage.
Never.
there is an outstanding loan and coverage was not maintained
When the premiums were not paid by the due date.
52
The PPF is coverage which is equal to the:
Personal Property under the DP forms
Commercial Property policy
Personal Articles Floater
HO 3 with the Special Personal Property Endorsement attached
53
Non-renewal is defined as:
Terminating the policy 2 months before the expiration
Terminating the policy due to non-payment
Terminating the policy at the expiration date
Terminating the policy due to misrepresentation
54
The concept of "spread of risk" is also know as:
Absolute Liability
Law of Large Numbers
Physical Hazard
The Proximate cause doctrine
55
Unauthorized health plan and the entity sponsoring it are not subject to insurance regulations.
"Deemer Clause"
"Benefit Clause"
"Pre-emption"
"Savings Clause"
56
J has a PIP with $1,000 deductible and was in an accident and required $10,000 in med. J pays?
$1,000
$8,000
$2,800
$7,200
57
What is the difference between Moral and Ethic’s in the law?
Moral is enforceable by law – Ethic’s is a belief
Moral is a belief – Ethic’s is how the accident happened
Moral is a belief – Ethic’s is enforceable by law
Moral is a right or wrong –Ethic- laws passed by legislature
58
When the insured transfers his rights against the other party to his insurer it is know as:
Subrogation
Assignment
Arbitration
Severability
59
has a total loss and the company is required to pay the entire amount past the 1st dollar,
Franchise Deductible
Percentage Deductible
ACV
Replacement Cost
60
Which of the following is the best definition of risk as related to insurance?
Chance of financial loss or gain
Chance of financial loss
Perils insured against
Speculation of financial gain
61
What is considered Bailees?
Products of the insured while being installed in location
Property of the insured in the care of others
Property of Others in the insured's care, custody, control.
An alcoholic beverage
62
Under the PAF, which of the following would not be covered?
Adams show dog
Musical instruments
Golf equipment
Jewelry
63
Johnnie wanted to buy a car and did not have enough money. He borrowed from a bank
Mortgagee
Primary Payee
Co-insurer
Loss Payee
64
A Fraternal Insurer would be best described as?
life insurance co in which member is of a religious body.
A property insurance company specializing in Churches
A life insurance company
Property insurance company specializing in Fraternity Houses
65
What best describes ACV?
Original cost minus depreciation
Replacement cost
Cost new
Replacement cost minus depreciation
66
when the insured and the insurer dispute the true value of the amount of the property loss?
Waiver
Appraisal
Subrogation
Unfair Claims Practices
67
Agent has sold many policies. Which of the following sales is considered “controlled business’
Policy sold to a neighbor’s business
Policy sold to a friend
Policy sold to a person through a referral
Policy sold to family members
68
A Tree hits the insured's house. The damage is covered because of what concept
Proximate cause
Coinsurance
Direct Loss
Indirect Loss
69
A contract where the insurer creates the terms and the insured can only accept or reject is?
Aleatory
A Contract of Adhesion
Unilateral
A Contract of Indemnity
70
What is NOT a feature or purpose of Florida Insurance Guaranty Association?
Pays unpaid claims for insolvent insurer
Must be a member company for the state to assist insolvent
Fl guarantees all insured are paid to all damaged property
Pays unearned premiums for insolvent insurer
71
What designation allow an individual to waive the state exam for General Lines?
CPIC
CPSR
CPCU
CGCC
72
Under the Financial Responsibility Law, how can a person comply?
All of the above
Self Insurance to $30,000 net liquid assets
Insurance with minimum of 10/20/10
Certificate of Deposit in the amount of $30,000
73
What is an "UnfairTrade Practice?"
OIR's oversite of the Insurance Companies
Written explanation of all claims
Administrative Duties are documented
Untimely explanation of a claim
74
What is an example of Defamation?
Disseminating information that is not true
Misrepresenting a fact/condition about the insurance policy.
Placing coverages on policy without explaining them
Forcing a person to purchase insurance coverage.
75
All of the following are the requirements for an agent to maintain their license EXCEPT?
Must complete continuing education
Agent must apply to Office of Insurance Regulation
The filing fee for renewal of the appointment must be paid
The insurance company must file renewal appointment with OIR
76
What are the penalties when representing an Unauthorized Entity?
3rd degree felony
2 degree felony
3rd degree misdemeanor
There is no penalty for unauthorized
77
The failure of the insured to reveal known facts in applying for insurance is known as:
Misrepresentation
Concealment
Fiduciary
Warranty
78
Purchased for $6,000. ACV is $2,000 and to repair the damage the cost will be $3,000. payable?
$1,000
$3,000
$2,000
$6,000
79
A Partner owns a business and cannot collect all the money in the claim. What is the concept?
Coinsurance
Insurable interest
Agreed Value
Florida Value Policy Law
80
What keeps a part owner of a building from receiving full value if a fire occurs?
Severability
Subrogation
Assignment
Insurable Interest
81
When rating a PAP what does your symbol represent?
How solvent the insurance company is that wrote the policy
What is the discount for premium
The number of people permitted to occupy the auto
Damageability of the vehicle
82
What is considered an instrumentality of transportation and communication in Inland Marine?
Bridges, roadways and towers
Annual Transit
Jewelers Block
Motor Truck Cargo
83
Who pays the late fee if the appointment is paid late?
The producer
Late fees are not addressed under the statutes.
The agent
The appointing entity
84
Name of the court case asserting it is in the best interest for States to regulate insurance?
Graham-Leach Biley Act
McCarron-Ferguson Act
Biggert-Waters Act
Jones Act
85
Windstorm insurance in certain coastal areas is commonly written subject to which of following?
Franchise
Percentage
$250
$500
86
Which of the following does “Sliding” best referred to:
Ancillary
Required PIP to be on Auto policy
Requiring Auto club on Auto Policy
A Person that slips on the insureds premises
87
CPIC will insure a 50 year old home if improvements are made on all of the follow EXCEPT?
Heating, Electrical
Roof
Plumbing
Refrigerator
88
Which of the following best describes Binders?
Effective date of all policies
A type of product in a manufacturing company
Temporary insurance
Exclusion where coverage has been purchased back
89
If an agent has been licensed for more than 6 years – what is the continuing education req?
24 hours every 24 months
28 hours every 24 months
10 hours every 24 months
20 hours every 24 months
90
What is correct regarding contract receiving a Waiver of Premium Benefit?
Insured must receive medical care for 7 days before eligible
Insured must be 100% disabled
Insured must be 50% disabled
Insured must be able to return to work within 3 years
91
Who can sue the agent for mishandling of the insurance programs?
Florida Court
Another agent
Insured
Chief Financial Officer
92
Which of the following types of property does the Florida Value policy Law apply to:
Total losses to only buildings, if caused by a covered peril
Motor Homes
All coverages on the declaration page
Mobile Homes
93
What is considered Fair Indemnity?
Coinsurance
Replacement cost
ACV
Value Policy Law
94
A commercial policy of has buildings in different locations. Which provides the best coverage?
Broad
Blanket
Specific
Special
95
Under the Inland Marine Form, all is covered except?
Cost of Manufacturing
Furs
Personal Jewelry
Imports
96
When the Agent represents a company, the agent has right to:
Issue Checks
Receive an Appointment with the Company
Issue a Certificate of Authority
Settle Claims
97
If selling insurance through the mail, which of the following is correct?
Can solicit only mail
Can solicit/sell only through an authorized licensed agent
Customer must go to the agent's office to purchase
Not permitted
98
If an employee steals from their employer, what kind of hazard does this represent?
Physical
Morale
Moral
Direct
99
Who can appoint a CSR?
Agent with a 20-44 insurance license
Owner of an agency
Agent with a 2-20 license
Manager of an agency
100
Who’s interest does the CPCU represent?
Insured’s
Agent’s
Industries
Companies
