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Which of the following is not a qualification for obtaining a General Lines License? A. Florida Resident B. Not for "controlled business" C. Successfully complete a 200 hour department approved course D. Six months "all-lines" experience as a full time employee - ✔✔D. Six months "all- lines" experience as a full time employee All of the following are duties and functions of the Department of Financial Services EXCEPT: A. approve and review forms, ruled and rates B. investigate charges of unethical conduct C. develop insurance - related legislation D.approve the issuance of licenses to agents - ✔✔C. develop insurance - related legislation Which of the following is the best definition of risk as related to insurance? A. Chance of financial loss or gain B. Perils insured against C. Speculation of financial gain D. Chance of financial loss - ✔✔D. Chance of financial loss All of the following describe a binder EXCEPT:
A. Can be oral or written B. Cannot be cancelled C. Places insurance into effect prior to the policy issuance D. Affords the same coverage as the policy - ✔✔B. Cannot be cancelled Insurance is a contract of indemnity. Which of the following best illustrates the concept of indemnity? A. Replacing a 5 year-old sofa that is damaged with a new one B. Paying an insured $10,000 for a painting that is specifically scheduled C. Paying an insured the actual cash value of a television that is 3 years old D. Paying a building loss under the Florida Valued Policy Law - ✔✔C. Paying an insured the actual cash value of a television that is 3 years old All of the following describe insurable interest EXCEPT: A. Establishes the limit of the policy's response B. Shows a similarity between insurance and wagering C. Must exist at the time of a loss D. The insured would suffer an economic loss - ✔✔B. Shows a similarity between insurance and wagering An insured is carrying a policy for "fire only" on a dwelling and its contents. A small fire starts in the kitchen and in the process of putting out the fire; some of the contents of the dwelling are
A. The deductible applies to the penalty on a franchise bond. B. As the size of the loss increases, the deductible decreases until it disappears C. No payment is made until the loss equals or exceeds the deductible amount, then the loss is paid in full D. Used in conjunction with insurance written on fas food franchises - ✔✔C. No payment is made until the loss equals or exceeds the deductible amount, then the loss is paid in full All of the following are ways that liability limits can be expressed EXCEPT: A. Single limit B. Aggregate limit C. Statutory limit D. Split limit - ✔✔C. Statutory limit Which of the following best illustrates negligence as it applies to insurance? A. The insured intentionally sets a fire B. An insured looks down to change the radio station and hits another vehicle in the rear C. Hitting someone who makes you mad D. Breaking a window to get into your car because you locked the keys inside - ✔✔B. An insured looks down to change the radio station and hits another vehicle in the rear All of the following are duties of the insured after a loss EXCEPT:
A. Report thefts to the police B. Cooperate with the company in claim settlement C. Disclose information to the other party's attorney D. Reveal any other applicable coverage - ✔✔C. Disclose information to the other party's attorney When the insured transfers his rights against the other party to his insurer, it is known as: A. Assignment B. Arbitration C. Subrogation D. Severability - ✔✔C. Subrogation The policy condition that says that coverage applies equally to each insured as if the other insureds did not exist is called: A. Assignment B. Liberalization C. Subrogation D. Severability - ✔✔D. Severability Coverages required in order to comply with the Florida Financial Responsibility Law are:
A. Public transit bus B. 18 wheel tractor-trailer rig C. Motorcycle D. Golf Cart - ✔✔B. 18 wheel tractor-trailer rig Which of the following situations requires nonresidents to comply with the Florida No-Fault Law? A. Own a residence in Florida B. Have a Florida driver's license C. Have a vehicle in Florida more than 90 days of the preceding 365 days D. Have a vehicle in Florida for 60 consecutive days - ✔✔C. Have a vehicle in Florida more than 90 days of the preceding 365 days Which of the following is not a benefit under Personal Injury Protection? A. Medical expenses paid at 80% B. Work loss paid at 60% C. Replacement services paid at 90% D. Death benefit of $5,000 - ✔✔C. Replacement services paid at 90% All of the following are penalties for not complying with the No-Fault Law EXCEPT:
A. Personally liable for benefits under the No-Fault law B. Confiscation of auto C. Loss of limited tort exemption D. Suspension of auto registration and driver's license - ✔✔B. Confiscation of auto Which statement below best describes the insured's position under the Florida No-Fault Law when the total medical and work loss bill exceeds the PIP benefits without exceeding the threshold? A. Insured can't sue if PIP is exhausted B. No recovery after PIP is exhausted C. Insured can sue for the economic loss not paid or payable under PIP; no suit for intangible damages such as pain & suffering D. Insured can sue for intangible damages such as pain & suffering; no suit for economic loss not paid or payable under PIP - ✔✔C. Insured can sue for the economic loss not paid or payable under PIP; no suit for intangible damages such as pain & suffering Extended PIP does which of the following? A. Increases the death benefits to $10, B. Provides payment for lost wages at 80% C. Increases the $10,000 PIP limit to $100, D. Provides payment for medical bills at 80% - ✔✔B. Provides payment for lost wages at 80%
All of the following types of ownership are eligible for a Personal Auto Policy EXCEPT: A. Owned by an individual B. Owned jointly by unrelated persons whether or not they are living together C. Owned jointly by two or more related persons whether or not they are living together D. Owned jointly by a husband and wife - ✔✔B. Owned jointly by unrelated persons whether or not they are living together Robin has a Personal Auto Policy covering her Chevy Camaro, which has liability, PIP, collision, and other than collision coverages. Robin trades in the Camaro on July 2nd and replaces it with a new Mitsubishi Eclipse. Just 12 days later Robin is in a wreck where she is at fault and damages both her car and another car. Robin never called to tell her agent about the trade. Which is true? A. Neither car is covered by Robin's policy B. Only the other car is covered C. Both cars are covered by Robin's policy D. Only Robin's car is covered by her policy - ✔✔C. Both cars are covered by Robin's policy Kim has a Personal Auto Policy and is towing a rented trailer. The trailer comes loose and damages property and injures people. Which of the following best describes how the PAP would apply?
A. Not owned, so no coverage B. Both bodily injury and property damage are covered, but not damage to the non- owned trailer C. The trailer is covered for damage up to $ D. Bodily injury and property damage are covered plus any damage to the non-owned trailer up to $500 - ✔✔D. Bodily injury and property damage are covered plus any damage to the non-owned trailer up to $ All of the following are supplementary payments under the Personal Auto Policy EXCEPT: A. Release of attachment bonds B. $300 on bail bonds C. $200 per day loss of income D. Interest on judgements - ✔✔B. $300 on bail bonds Part B Medical Payments coverage applies to medical services rendered after an accident up to how many years? A. 1 year B. 2 years C. 3 years D. 5 years - ✔✔C. 3 years Uninsured Motorist coverage under the Personal Auto Policy pays for which of the following?
A. Vehicles listed on the declarations page B. A rental car C. A vehicle furnished to you by your employer D. Your neighbor's car which you borrowed only once, and damaged it when hitting a tree - ✔✔C. A vehicle furnished to you by your employer Sarah has a Toyota Celica covered on her Personal Auto Policy with a $100 deductible for Other Than Collision, and a $500 deductible for Collision. One day while on her way to work she runs into a pipe sticking out off the back of a truck and damages her windshield. It will cost $300 to replace damaged glass. How much will her policy pay? A. Nothing, the loss is less than her collision deductible B. $ C. $ D. $300 - ✔✔D. $ One night while driving home from a business trip David hits a cow on a dark stretch of road. He is carrying Part D, Damage to Your Auto, on his vehicle with a $250 deductible for Other Than Collision coverage and $500 for Collision. The damage to his vehicle is $3,250. How much will his policy pay? A. Nothing, no coverage for animal collision B. $3,
C. $3,
D. $2,750 - ✔✔C. $3,
Larry has a Personal Auto Policy. His employer also gives him a vehicle to drive, which he is able to use personally as well. Larry wants to make sure that his PAP covers him while he is driving the furnished car. What endorsement would you add to his PAP? A. Drive other car coverage B. Named non-owner coverage C. Broadened PIP D. Extended non-owned coverage - ✔✔D. Extended non-owned coverage If Rita did not own a vehicle but wanted to purchase a policy to cover her for liability, medical payments, and uninsured motorist while she drove someone else's car, what coverage would she purchase? A. Drive Other Car Coverage B. Named Non-owner Coverage C. Individual Named Insured D. Extended Non-owned Coverage - ✔✔B. Named Non-owner Coverage In a Business Auto Coverage form, if you wanted to apply coverage to specifically described vehicles, which symbol would you use?
A. Only injuries caused by vehicles are covered B. Garagekeepers coverage can be added C. Medical payments is not available D. Completed operation coverage is specifically excluded - ✔✔B. Garagekeepers coverage can be added The Garage Coverage Form is a combination of 2 different coverage forms. What are they? A. Property and liability B. Liability and medical payments C. Business auto and general liability D. Physical damage and general liability - ✔✔C. Business auto and general liability The coverage in the Truckers Coverage Form which provides comprehensive or specified perils and collision for non-owned trailers is attached to the insured's tractor is called: A. Any trailer attached coverage B. Hired auto physical damage coverage C. Trailer interchange coverage D. Non-owned physical damage coverage - ✔✔C. Trailer interchange coverage During the first 60 days that an auto policy is in effect the company can cancel for any reason EXCEPT non-payment of premium with how many days notice?
A. 10 days B. 20 days C. 45 days D. 60 days - ✔✔C. 45 days All of the following are covered by a mechanical breakdown policy EXCEPT: A. Water pump goes bad B. Air conditioning compressor stops working C. Radiator damaged in an accident D. Alternator malfunctions - ✔✔C. Radiator damaged in an accident The typical coverage for rental reimbursement in a Mechanical Breakdown policy is: A. $20 per day / $600 maximum B. $15 per day / $450 maximum C. $15 per day / $75 maximum D. $10 per day / $50 maximum - ✔✔C. $15 per day / $75 maximum If an insurer wants to non-renew a Commercial Property policy, how many days notice must they give the insured?
A. The structure B. Floor coverings C. Refrigerating equipment D. Free standing display cases - ✔✔D. Free standing display cases In order for business personal property to be covered under the Building and Personal Property Coverage Form, it must be: A. Located within the building only B. Located with the building or in an owned vehicle away from premises C. Located on or within 100 feet of the premises D. Located on or within 1,000 feet of the premises - ✔✔C. Located on or within 100 feet of the premises In the Building and Personal Property coverage form, the most an insured can collect for removal of debris after a loss is: A. 25% of the loss paid B. 25% of the loss paid plus $10, C. 25% of the loss paid plus $5, D. 10% of the loss paid plus $10,000 - ✔✔B. 25% of the loss paid plus $10,
In the Building and Personal Property Coverage Form there is coverage for newly acquired buildings up to $250,000 and personal property up to $100,000 for how many days? A. 30 days B. 60 days C. 90 days D. No automatic coverage provisions exists - ✔✔A. 30 days The Building and Personal Property Coverage Form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. How many days must the building be vacant for the provision to apply? A. 30 days B. 60 days C. 90 days D. 180 days - ✔✔B. 60 days If a loss occurs under the Building and Personal Property Coverage Form with the optional replacement cost provision, how long does the insured have to give intent to replace the damaged item in order to receive the replacement cost adjustment? A. 60 days B. 90 days C. 180 days
