Which standard PAP coverages are available in an FAJUA policy? (choose all that apply)
Liability Coverages
Uninsured Motorists Bodily Injury
Personal Injury Protection
Medical Payments
Liability Coverages
Uninsured Motorists Bodily Injury
Personal Injury Protection
Medical Payments
Answer:
Liability Coverages
Uninsured Motorists Bodily Injury
Personal Injury Protection
Medical Payments
Applicants with private passenger autos are eligible for Liability coverage with limits up to 100/300/50, PIP, UM coverage, Medical Payments coverage with $500, $1,000 or $2,000 limit, and Physical Damage coverage (Comprehensive and Collision combined) subject to a deductible of $250, $500 or $1,000.
Category: Residual Markets
Liability Coverages
Uninsured Motorists Bodily Injury
Personal Injury Protection
Medical Payments
Applicants with private passenger autos are eligible for Liability coverage with limits up to 100/300/50, PIP, UM coverage, Medical Payments coverage with $500, $1,000 or $2,000 limit, and Physical Damage coverage (Comprehensive and Collision combined) subject to a deductible of $250, $500 or $1,000.
Category: Residual Markets
In the CGL policy form the insurer may inspect books and records during the policy period and for ___ year(s) thereafter.
1
2
3
4
1
2
3
4
Answer:
3
The insurer may inspect books and records during the policy period and for three (3) years thereafter.
Category: General Liability: Gen. Liab. Contract: Common Pol. Conditions
3
The insurer may inspect books and records during the policy period and for three (3) years thereafter.
Category: General Liability: Gen. Liab. Contract: Common Pol. Conditions
Which bond guarantees all labor and materials used on the job will be paid for by the Principal at or before the completion of the job?
Payment Bond
Maintenance Bond
Subdivision Bond
None of the above
Payment Bond
Maintenance Bond
Subdivision Bond
None of the above
Answer:
Payment Bond
Payment Bonds guarantees all labor and materials used on the job will be paid for by the Principal at or before the completion of the job.
Category: Surety Bonds: Contract Bonds
Payment Bond
Payment Bonds guarantees all labor and materials used on the job will be paid for by the Principal at or before the completion of the job.
Category: Surety Bonds: Contract Bonds
True or False? You, as a general agent may hire and license a customer representative who shall be a salaried employee. You may pay the customer representative commissions primarily based on the production of applications, insurance, or premiums.
True
False
True
False
Answer:
False
Read F.S. 626.7354 for a complete review.
Category: Agent Licensing
False
Read F.S. 626.7354 for a complete review.
Category: Agent Licensing
You have just learned that a new insurance company in Florida has a certificate of authority issued by the department to transact insurance in this state. According to Florida Statute 624.09 this new company is an _________ company.
Authorized
Unauthorized
Stock
Mutual
Authorized
Unauthorized
Stock
Mutual
Answer:
Authorized
According to Florida Statute 624.09 an “authorized” insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.
Category: Definitions: Certificate of Authority
Authorized
According to Florida Statute 624.09 an “authorized” insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.
Category: Definitions: Certificate of Authority
Your Homeowners insured has been put on formal notice by his Homeowners Association that a $2,500 assessment has been levied against all association members to resurface the parking lot by the community playground. How will Section II of the Homeowners policy respond?
The policy will pay the entire $2,500
The policy will pay up to $1,000
The policy will pay $0 under Section II
None of the above
The policy will pay the entire $2,500
The policy will pay up to $1,000
The policy will pay $0 under Section II
None of the above
Answer:
The policy will pay $0 under Section II
The policy would pay $0 under Section II as the Additional Coverage of Loss Assessment under Section II of the Homeowners policy requires the trigger of a legal liability compensable under the policy. Maintenance of a parking lot would not meet this requirement.
Category: Homeowners: Section II: Liability
The policy will pay $0 under Section II
The policy would pay $0 under Section II as the Additional Coverage of Loss Assessment under Section II of the Homeowners policy requires the trigger of a legal liability compensable under the policy. Maintenance of a parking lot would not meet this requirement.
Category: Homeowners: Section II: Liability
Under the No-Fault law which of the following are defined as an owner:
Debtor in possession
Lessee
Holder of legal title
All of the above
Debtor in possession
Lessee
Holder of legal title
All of the above
Answer:
All of the above
An owner is one who holds legal title, a debtor in possession, one who leases (lessee) with an option to purchase, and other lessees under agreement of six months or more when lessor and lessee agree that the lessee will be treated as the owner.
Category: Misc FL Auto Laws: Financial Responsibility
All of the above
An owner is one who holds legal title, a debtor in possession, one who leases (lessee) with an option to purchase, and other lessees under agreement of six months or more when lessor and lessee agree that the lessee will be treated as the owner.
Category: Misc FL Auto Laws: Financial Responsibility
Dan was permanently injured in an auto accident by the negligence of Cynthia. Dan’s injuries are valued at $250,000. Dan has PIP with a $500 deductible and has recovered $10,000 from PIP. He has UM coverage of $50,000/$100,000. Cynthia has a liability insurance policy with limits of 10,000/20,000/$10,000. How much is Dan’s UMBI recovery?
$9,500
$10,000
$50,000
$250,000
$9,500
$10,000
$50,000
$250,000
Answer:
$50,000
Dan will collect $50,000 the per person limit of his UMBI coverage.
Category: Misc FL Auto Laws: Uninsured Motorists
$50,000
Dan will collect $50,000 the per person limit of his UMBI coverage.
Category: Misc FL Auto Laws: Uninsured Motorists
Your insured is involved in a multi-vehicle accident. Which coverage is the physical damage to the insured’s vehicle covered by?
Other Than Collision
Specified Perils
Collision
Multi-Vehicle Incident
Other Than Collision
Specified Perils
Collision
Multi-Vehicle Incident
Answer:
Collision
Collision and upset or overturn is covered by the insured’s Collision coverage.
Category: Personal Auto Policy: Parts A, B, C, D
Collision
Collision and upset or overturn is covered by the insured’s Collision coverage.
Category: Personal Auto Policy: Parts A, B, C, D
The PAP defines “your covered auto” as:
Any vehicle shown in the Declarations
A newly acquired auto
Any trailer you own
All of the above
Any vehicle shown in the Declarations
A newly acquired auto
Any trailer you own
All of the above
Answer:
All of the above
The PAP defines “your covered auto” as: (a) any vehicle shown in the Declarations, (b) a newly acquired auto, and (c) any trailer you own.
Category: Personal Auto Policy: PAP Definitions
All of the above
The PAP defines “your covered auto” as: (a) any vehicle shown in the Declarations, (b) a newly acquired auto, and (c) any trailer you own.
Category: Personal Auto Policy: PAP Definitions
The Homeowners policy is for private residential exposures but the policy will cover not more than ___ roomers or boarders per family occupancy.
1
2
3
None of the above
1
2
3
None of the above
Answer:
2
The Homeowners policy is for private residential exposures but the policy will cover not more than two roomers or boarders per family occupancy.
Category: Package Policies: Homeowners: Eligibility Requirements
2
The Homeowners policy is for private residential exposures but the policy will cover not more than two roomers or boarders per family occupancy.
Category: Package Policies: Homeowners: Eligibility Requirements
The Homeowners policy’s General Exclusions include all BUT which of the following?
Flood
War
Catastrophic Ground Collapse
Government Action
Flood
War
Catastrophic Ground Collapse
Government Action
Answer:
Catastrophic Ground Collapse
Refer to Section 4.2 for a complete review.
Category: Package Policies: Homeowners: Section I - Property
Catastrophic Ground Collapse
Refer to Section 4.2 for a complete review.
Category: Package Policies: Homeowners: Section I - Property
In the Dwelling Program "Open Perils" covers all direct physical loss but for which things are _________.
Included
Excluded
Related
None of the above
Included
Excluded
Related
None of the above
Answer:
Excluded
Open perils covers all direct physical loss but for which things are excluded.
Category: Property Insurance: Dwelling
Excluded
Open perils covers all direct physical loss but for which things are excluded.
Category: Property Insurance: Dwelling
True or False? An Automobile Dealer’s Garage policy will compensate the dealer for the loss and/or damage to their inventory including profits.
True
False
True
False
Answer:
False
Profits are excluded under the Garage policy for losses incurred by dealers.
Category: Garage Policy: Exclusions & Endorsements
False
Profits are excluded under the Garage policy for losses incurred by dealers.
Category: Garage Policy: Exclusions & Endorsements
The Commercial Property Insurance “Vacancy” condition suspends coverage if the insured building is vacant for ___ or more consecutive days prior to loss:
10
60
90
120
10
60
90
120
Answer:
60
The Commercial Property Insurance Vacancy condition suspends coverage for the perils of: vandalism, sprinkler leakage (unless protective steps against freezing have been taken), building glass breakage, water damage, and theft or attempted if the insured building was vacant for 60 or more consecutive days prior to loss. A 15% reduction applies to loss by any other covered peril. The Vacancy Endorsement eliminates the above captioned exclusions or limitations.
Category: Commercial Property Insurance: Coverage Forms
60
The Commercial Property Insurance Vacancy condition suspends coverage for the perils of: vandalism, sprinkler leakage (unless protective steps against freezing have been taken), building glass breakage, water damage, and theft or attempted if the insured building was vacant for 60 or more consecutive days prior to loss. A 15% reduction applies to loss by any other covered peril. The Vacancy Endorsement eliminates the above captioned exclusions or limitations.
Category: Commercial Property Insurance: Coverage Forms
True or False: The Custom Farming Endorsement covers liability for the insured’s paid farming operations for another farm operation.
True
False
True
False
Answer:
True
Custom Farming Endorsement covers liability for the insured’s paid farming operations for another farm operation.
Category: General Liability: Farm Liability
True
Custom Farming Endorsement covers liability for the insured’s paid farming operations for another farm operation.
Category: General Liability: Farm Liability
Mr. Brown, your CGL insured, is a sole proprietor and wants to know how the CGL policy’s language addresses coverage for his spouse. You advise Mr. Brown…
The CGL’s language excludes her if she is not named on the Declaration’s page
The CGL’s language includes her as an insured
The CGL does not address this issue and you advise your client to form a corporation
None of the above
The CGL’s language excludes her if she is not named on the Declaration’s page
The CGL’s language includes her as an insured
The CGL does not address this issue and you advise your client to form a corporation
None of the above
Answer:
The CGL’s language includes her as an insured
The CGL’s language includes her as an insured.
Category: General Liability: Gen. Liab. Contract: Who Is An Insured
The CGL’s language includes her as an insured
The CGL’s language includes her as an insured.
Category: General Liability: Gen. Liab. Contract: Who Is An Insured
You insure High Water Realty who has $80,000 in office payroll and another $1,000,000 in compensation paid to realtors classified as independent contractors. The class code for all off staff members is 8810 which has a fifty-five cent per hundred Workers' Compensation cost. Excluding expense constants, what is the cost of the Worker's Compensation for High Water Realty?
$440
$880
$1,100
$8,800
$440
$880
$1,100
$8,800
Answer:
$440
$80,000 of Payroll calculated at .55 per $100 of Payroll = $80,000/$100 X .55 = $440
Category: Workers Compensation: Rating
$440
$80,000 of Payroll calculated at .55 per $100 of Payroll = $80,000/$100 X .55 = $440
Category: Workers Compensation: Rating
The Commercial Inland Marine Motor Truck Cargo coverage:
Covers the shipper’s truck
Covers the shipper of singular shipments of goods against loss to goods in transit
Covers the carrier for loss to domestic shipments in transit
Covers the shipper for all risks against loss to property sent by registered mail, first class mail, certified mail or express mail
Covers the shipper’s truck
Covers the shipper of singular shipments of goods against loss to goods in transit
Covers the carrier for loss to domestic shipments in transit
Covers the shipper for all risks against loss to property sent by registered mail, first class mail, certified mail or express mail
Answer:
Covers the carrier for loss to domestic shipments in transit
Motor Truck Cargo covers the carrier for loss to domestic shipments in transit.
Category: Marine Insurance: Commercial Inland Marine
Covers the carrier for loss to domestic shipments in transit
Motor Truck Cargo covers the carrier for loss to domestic shipments in transit.
Category: Marine Insurance: Commercial Inland Marine
The Boiler and Machinery Policy has a $______ limit for damage by water from refrigerating or air conditioning vessels and piping.
$10,000
$25,000
$50,000
no limit is listed in the policy
$10,000
$25,000
$50,000
no limit is listed in the policy
Answer:
$25,000
$25,000 is the limit for damage by water from refrigerating or air conditioning vessels and piping
Category: Boiler & Machinery: Objects Definitions Forms
$25,000
$25,000 is the limit for damage by water from refrigerating or air conditioning vessels and piping
Category: Boiler & Machinery: Objects Definitions Forms
In the Homeowners policy Section II provides liability coverage at:
A) The insured residence
B) Personal activities of the insured
C) Both A & B
D) Neither A or B
A) The insured residence
B) Personal activities of the insured
C) Both A & B
D) Neither A or B
Answer:
C) Both A & B
Liability at private residences and personal activities of the insured.
Category: General Liability: Personal Liability
C) Both A & B
Liability at private residences and personal activities of the insured.
Category: General Liability: Personal Liability
This Boiler and Machinery coverage extension agrees to pay all litigation costs for liability claims.
Expediting Expenses
Automatic Coverage
Defense
Supplementary Payments
Expediting Expenses
Automatic Coverage
Defense
Supplementary Payments
Answer:
Supplementary Payments
Supplementary Payments – Insurer agrees to pay all litigation costs for liability claims.
Supplementary Payments
Supplementary Payments – Insurer agrees to pay all litigation costs for liability claims.
True or False: Business income provides coverage to offset the business income loss associated with damage to the insured’s business due to a covered peril.
True
False
True
False
Answer:
True
Business income provides coverage to offset the business income loss associated with damage to the insured’s business due to a covered peril.
True
Business income provides coverage to offset the business income loss associated with damage to the insured’s business due to a covered peril.
Mrs. Brown has contacted to ask how much coverage her Homeowner’s policy has for theft of firearms as she is considering purchasing a gun collection. How will you advise her?
Tell Mrs. Brown that firearms are excluded on the policy
Tell Mrs. Brown that the policy covers up to $1,000 for theft of firearms
Tell Mrs. Brown that the basic policy covers up to $2,500 for theft of firearms
Tell Mrs. Brown that the policy covers up to $10,000 for theft of firearms
Tell Mrs. Brown that firearms are excluded on the policy
Tell Mrs. Brown that the policy covers up to $1,000 for theft of firearms
Tell Mrs. Brown that the basic policy covers up to $2,500 for theft of firearms
Tell Mrs. Brown that the policy covers up to $10,000 for theft of firearms
Answer:
Tell Mrs. Brown that the basic policy covers up to $2,500 for theft of firearms
Tell Mrs. Brown that the policy covers up to $2,500 for theft of firearms.
Tell Mrs. Brown that the basic policy covers up to $2,500 for theft of firearms
Tell Mrs. Brown that the policy covers up to $2,500 for theft of firearms.
Which of the following concerning the Dwelling Fire program are correct?
DP-1 covers for limited named perils and ACV as loss settlement
DP-2 covers the DP-1 perils with broadened other coverages
DP-3 covers buildings on an “all-risk” basis
All of the above
DP-1 covers for limited named perils and ACV as loss settlement
DP-2 covers the DP-1 perils with broadened other coverages
DP-3 covers buildings on an “all-risk” basis
All of the above
Answer:
All of the above
The DP-1 covers for limited named perils and ACV as loss settlement AND the DP-2 covers the DP-1 perils with broadened other coverages AND DP-3 covers buildings on an “all-risk” basis.
All of the above
The DP-1 covers for limited named perils and ACV as loss settlement AND the DP-2 covers the DP-1 perils with broadened other coverages AND DP-3 covers buildings on an “all-risk” basis.
The FAJUA operates on behalf of:
All licensed Florida automobile insurance companies
Select licensed Florida automobile insurance companies
The Office of Insurance Regulation
The Department of Financial Services
All licensed Florida automobile insurance companies
Select licensed Florida automobile insurance companies
The Office of Insurance Regulation
The Department of Financial Services
Answer:
All licensed Florida automobile insurance companies
The FAJUA operates on behalf of all licensed Florida automobile insurance companies (i.e. private auto insurers) through a number of servicing carriers who operate as underwriting, servicing, and claims facilities for the FAJUA.
All licensed Florida automobile insurance companies
The FAJUA operates on behalf of all licensed Florida automobile insurance companies (i.e. private auto insurers) through a number of servicing carriers who operate as underwriting, servicing, and claims facilities for the FAJUA.
True or False? Residential property insurers may file loss mitigation credits with the OIR at the insurer's discretion.
True
False
True
False
Answer:
False
All residential property insurers are required to file loss mitigation credits with the OIRInsured’s must be put on formal notice of discounts.
False
All residential property insurers are required to file loss mitigation credits with the OIRInsured’s must be put on formal notice of discounts.
