PROPERTY & CASUALTY INSURANCE, QUESTIONS & ANSWERS VERIFIED| ACCURATE

PROPERTY & CASUALTY INSURANCE, QUESTIONS & ANSWERS VERIFIED| ACCURATE One night while driving home from dinner, Doug hits an animal 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 a $500 deductible for collision. The damage to his vehicle is $3,250. How much will his policy pay? - ANSWER $3,000 Any claim for which the Umbrella Policy is primary is subject to a deductible known as the: - ANSWER Self-Insured Retention During the first 60 days that an automobile policy is in effect the company can cancel for any reason except non-payment of premium with how many days notice? - ANSWER 45 days Part B Medical Payments coverage applies to medical services rendered after an accident up to how many years? - ANSWER 3 years Commercial Package Policies combine or "package" individual lines of insurance into this type of contract: - ANSWER A Single All of the following are optional coverages under the Building and Personal Property Coverage Form EXCEPT: - ANSWER Business income coverage A policy condition, either based on information in the insureds application or inserted by the insurer, is defined as: - ANSWER Warranty Which of the following pays an agreed dollar limit for each day of total interruption, or a proportionate part of that limit for partial interruption? - ANSWER Valued Business Interruption Which of the following is NOT a characteristic of the Small Business Boiler and Machinery Policy? - ANSWER Business interruption is 25% of the limit but not an additional amount In the Business Income Coverage Form, the Maximum Period of Indemnity option gives coverage for how many days? - ANSWER 120 days All licensed residential property insurance companies in Florida must accept this form when reporting mitigation features: - ANSWER Uniform Mitigation Verification Inspection Form ABC Health Insurer does not renew your policy since renewals are being declined on all similar policies within the state of Florida. What type of policy is this? - ANSWER Conditionally Renewable All of the following are rating elements for the Business Auto Coverage Form EXCEPT: - ANSWER Age of the driver(s) When the insured transfers his rights against the other party to his insurer it is defined as: - ANSWER Subrogation Which of the following is NOT covered under an Aircraft Liability Policy? - ANSWER Cargo Liability Policy Structure (DICEE) - ANSWER Declarations Insuring Agreement Conditions Exclusions Endorsements Declarations 6 P's (D in DICEE) - ANSWER Policy Number Parties Named insured and insurer Mortgagee or lienholder (if applicable) Property Description and its location Policy Limits and deductables Premium Insuring agreement (I in DICEE) - ANSWER Contains the insurer's promise to pay which includes the covered perils - named perils - open perils -combination of named and open perils Conditions (C in DICEE) - ANSWER Contains the duties and rights of the parties: Insured's Duties after a loss - ANSWER Prompt notificatin of the loss to the insurer Cooperation with the insurer Submission of a proof of loss (within 91 days in Texas) if required Proect the property from further damage Insurers Subrogation Rights - ANSWER Under property and casualty contracts, insureds are required to assign their rights to recovery after a loss to the insurance company - Insurer then has the right to recover the amount paid for the loss from the at-fault party and take any further legal action necessary. -The deductible is returned to the insured if the insurer is able to recover from the at-fault party Mortgage Clause - ANSWER Rights of mortgagee -pay the preimium/file a proof of loss -receive claim payment up to their insurable interest -receive a cancellation notice Nothing the insured does, even dishonestly, can prevent the mortgagee from collecting under the policy Termination of Policies - ANSWER Two types - Cancellations or Non-renewals Exclusions (E in DICEE) - ANSWER Contains the property and perils that are NOT covered. - contraband -intentional acts by the insured These exposures are NOT contemplated by the rates Endoresements (E in DICEE) - ANSWER Change the policy by: -adding coverage -modifying coverage-taking away coverage Endoresements are NOT used to cancel a policy Subrogation - ANSWER The act of assigning or substituting the rights of one party to another in collecting a debt or claim. Accident - ANSWER An event that is sudden and unexpected Occurence - ANSWER An event that happens over time - can be a series of accidents -can be continuous or repeated exposure to conditions -results in injury or disease (black lung disease) Domicile of Insuring Organizations - ANSWER insurers base or home office/policy holders location -Domestic: In the same state -Foreign: In another state Alien: In another country Captive Agent - ANSWER Exclusive Agent Contracted to sell for ONE company Typically paid on commission basis Insurance company owns and controls all accounts Direct Writer - ANSWER an employee of the company May be paid a salary, commission or both Insurance company owns and controls all accounts Independent Agents - ANSWER Contracts with several different companies Receives only commissions Agent owns and controls the accounts Underwriting - ANSWER Responsible for SCAR Selection of proposed insured Classification of a proposed insured Acceptance of a proposed insured Rejection of a proposed insured Loss Ratio - ANSWER Used to determine underwriting profitability Incurred Losses + Loss adjustment expenses/Earned Premium Terrorism Risk Insurance Act - ANSWER Provides federal sharing of the rist of terrorism loss for some COMMERCIAL insurance policies Requirements of Sharing - Terrorism Risk - ANSWER Sharing is triggered between losses totaling $100 million (minimum) and $100 billion (maximum) Terrorism Risk Insurance Act Applies - ANSWER -An Act that is injurious to life, property, or infrastructure -Produce losses exceeding $5 million and be certified by the US Secretary of Treasury -Have resulted in damage within the United States Commissioner - ANSWER Issue insurance licenses and certificates of authority Conduct investigations and examinations Appointed by Governer for two year term Does NOT write insurance laws - (state legislature does) Issues cease and desist orders Must give agent 10 days' notice of hearing Imposes penalties following hearings (including fines, suspensions, and revocations) Approve insurance policy forms and rates for lines of ins Continuing Education - ANSWER 30 Hours during license cycle 50% classroom or classroom equivalent Two Hours of Ethics Keep records for four years Adusters - Time Requirements - ANSWER 15 days to acknowledge claim, commence investigation, and request all information 15 business days to accept or deny the claim once all required information is received 5 business days to write the check after liability is determined. All may be modified if suspected arson or if a weather-related catastrophe Which of the following is NOT true of corporate officers as they relate to Workers Compensation? - ANSWER No more than 3 officers can be exempted in non-construction operations All of the following are considered Employment EXCEPT: - ANSWER A farm with six full-time employees A small farm with five or less full-time employees is not considered an employment (General Lines Agent Study Manual, Unit 9, Employers and Employees). A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as: - ANSWER Self-Insured All of the following are used to rate Business Automobile Policies EXCEPT: - ANSWER Maintenance If an insured elects a lump sum benefit instead of a monthly disability benefit it is defined as: - ANSWER Elective Indemnity Part Three of a Workers Compensation Policy defines: - ANSWER Other States Which agency has developed web pages devoted to informing consumers and builders of efforts that can made to make dwellings more hurricane resistant and thus reducing costs of insuring the structures? - ANSWER The Florida Division of Emergency Management Sharon 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? - ANSWER Bodily injury and property damage are covered plus any damage to the non-owned trailer up to $1,500 How many days notice must a Health Insurance company give when canceling a Health Policy? - ANSWER 20 Employee Theft coverage may be written in all of the following ways EXCEPT: - ANSWER Joint Coverage The insurers responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as a(n)? - ANSWER Conditional Contract 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 a threshold? - ANSWER Insured can sue for the economic loss not paid or payable under PIP; no suit for intangible damages such as pain and suffering Established in 1973, this association was created for applicants who are unable to obtain automobile insurance in the private market: - ANSWER FAJUA The typical coverage for rental reimbursement on a Mechanical Breakdown policy is: - ANSWER $15 per day/$75 maximum Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license? - ANSWER Life insurance written by carrier who is also represented for Property and Casualty Another name for a "Cost Plus" plan is: - ANSWER Retrospective Rating Plan What amount applies to Business Personal Property other than "Money and Securities," "Valuable Papers and Records" and "Accounts Receivable" while off premises? - ANSWER $5,000 This program provides comprehensive health services to members for a prepaid fixed fee with a goal of preventive activity: - ANSWER HMO The Retroactive Date: - ANSWER Establishes the date when claims made coverage begins This endorsement will extend liability insurance and any physical damage insurance to cover the insured while driving a non-owned vehicle: - ANSWER Individual Named Insured Trey has a collection of rare foreign coins, which are stolen. His Crime Policy provides coverage for these coins as part of his business property. The collectible value of the coins is $5,000; the monetary value of the coins is $300. Assuming there is no deductible, how much will Trey's policy pay? - ANSWER $300 - Money is valued at its face value Which of the following is not an eligibility requirement for the RCBAP Flood Policy? - ANSWER 25% mercantile floor area All of the following are covered under Personal and Advertising Injury EXCEPT: - ANSWER Bodily Injury This bond is required of investment companies guaranteeing against misrepresentation of Securities: - ANSWER Blue Sky Bond All of the following coverages can be added to the Business Auto Coverage Form by separate endorse¬ment EXCEPT: - ANSWER Liability Which of the following is NOT a benefit under PIP? - ANSWER Replacement services paid at 10% Luigi purchases a money order to make his car payment. The money order never makes it to the finance company and he has to replace it. What type of bond will the company need in order to replace the money order? - ANSWER Lost Instrument Bond Which of the following pays the principal sum for death or dismemberment if the named insured requests it and the company is released from further liability? - ANSWER Admitted Aircraft Liability The insurer must give how many days written notice of the nonrenewal, cancellation, or termination? - ANSWER 120 The typical grace periods in Health Insurance for weekly, monthly, and all other premium payments are: - ANSWER 7-10-31 Which of the following covers the liability of a common carrier for damage to property of others? - ANSWER Motor Truck Cargo Policy Jenny and Sue are riding with Jim in Jim's car. All individuals are Florida residents who own cars and carry basic PIP with no deductible. Jenny has $4,000 in medical bills, Sue has $12,000 in medical bills and Jim has $20,000 in medical bills. How much will PIP pay for Jim? - ANSWER $10,000 $20,000 x 80% = $16,000 HOWEVER, PIP only pays a maximum of $10,000 Which of the following roof types will be eligible for a Wind Mitigation discount? - ANSWER Hip An amount is stated up front, and in the event of a loss, the insured will receive that same amount, regardless of any external factors. This is defined as: - ANSWER Valued Policy Law All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: - ANSWER Soliciting insurance in other areas of the state An Excess Policy that provides the same coverages, provisions, and exclusions as the underlying policy is called: - ANSWER Follow Form Excess All of the following are features of Major Medical Insurance EXCEPT? - ANSWER Has limited coverage for most expenses What are the two coverage forms offered in the Businessowners program? - ANSWER Basic Form/Special Form Jenny and Sue are riding with Jim in Jim's car. All individuals are Florida residents who own cars and carry basic PIP with no deductible. Jenny has $4,000 in medical bills, Sue has $12,000 in medical bills, and Jim has $20,000 in medical bills. How much will PIP pay for Jenny? - ANSWER $3,200 - $4,000 (no deductible is mentioned so we do not need to subtract anything from the $4,000) x 80% = $3,200 Who is responsible for enforcing and administering all aspects of Rating? - ANSWER National Council on Compensation Insurance After two years from the date of issue only fraudulent misstatements in the application can be used to void the policy or deny a claim. This is defined as: - ANSWER Limitations on insurer defenses Which of the following is an example of an instrumentality move transportation or communication? - ANSWER Television tower 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? - ANSWER 60 days All of the following are considered Contract Bonds EXCEPT? - ANSWER Infrastructure Bond Pays for physical damage to the business' vehicle resulting from contact with another object: - ANSWER Collision All of the following are ways that liability limits can be expressed EXCEPT: - ANSWER Average Limit Which of the following does not trigger the Florida Financial Responsibility Law? - ANSWER An accident where the police are called What is the purpose of the Extended Period of indemnity option in the Business Income Coverage Form? - ANSWER Increases the 30 day Extended Period of Indemnity grant up to 730 days Who guarantees repayment of a bond? - ANSWER Indemnitor The coverage which pays the cost of temporary repairs and to fasten permanent repairs or replacement is defined as: - ANSWER Expediting expense coverage Which of the following best describes the Business Income Coverage provided under the Businessowners policy? - ANSWER Actual loss sustained up to 12 months with no dollar limit A peril that is unique to policies covering dry cleaners is defined as: - ANSWER Confusion of Goods Which of the following guarantees the faithful performance of a person appointed by a court or named in a will? - ANSWER Fiduciary Bond Who is responsible for reviewing company rules and rates to be sure the law is being followed? - ANSWER Office of Insurance Regulation Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license? - ANSWER Life insurance written by carrier who is also represented for Property and Casualty If a licensee has their appointment terminated, how long does he or she have to be reappointed before his license is terminated? - ANSWER 48 months Charging an applicant for a specific ancillary coverage in addition to the cost of the automobile insurance coverage applied for without his consent is defined as: - ANSWER Sliding An insurance company formed under the laws of Florida is defined as: - ANSWER Domestic An insurance company that is licensed to do business in Florida is defined as: - ANSWER An authorized insurance company All of the following are considered "Transacting Insurance" EXCEPT: - ANSWER Underwriting new business Knowingly using an incomplete comparison of insurance policies in order to get the insured to buy a policy from you is defined as: - ANSWER Twisting Willful deception of an insurance policy done by dissemination of information is defined as: - ANSWER Misrepresentation Jim and Glenda go to the local branch of their bank for a home loan. The loan officer tells them that in order to qualify for the loan they must purchase insurance from the bank. This is an example of: - ANSWER Coercion If a licensee has a change in name or address, how long does he have to notify the Department of Insurance? - ANSWER 30 days When the majority of insurance written is for family members it is defined as: - ANSWER Controlled Business If an agent had been licensed for more than 6 years, how many hours of continuing education are required every 2 years? - ANSWER 20 How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period? - ANSWER 24 When authority is given to a licensee to transact or adjust insurance it is defined as: - ANSWER Appointment An insurance company formed in London is defined as: - ANSWER Alien An insurance company formed under the laws of another state is defined as: - ANSWER Foreign All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: - ANSWER Soliciting insurance in other areas of the state A licensed insurance agent may share commissions with which of the following? - ANSWER Non-Resident Agent Customer Representative Life Insurance Agen A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as: - ANSWER Self-Insured An employee welfare benefit plan or other arrangement that is established or maintained to provide one or more of various insurance benefits (including health insurance) to the employees of two or more employers is defined as: - ANSWER MEWA Which of the following is NOT a possible consequence for Aiding and Abetting an Unauthorized Insurer: - ANSWER Conviction of a second-degree felony An insurance company formed in Berlin, Germany is defined as: - ANSWER Alien Which of the following roof types will be eligible for a Wind Mitigation discount? - ANSWER Hip Which of the following defines how the roof trusses are attached to the wall framework? - ANSWER Roof to Wall Connection Which of the following are considered openings in a dwelling? - ANSWER Double Pained Window Doors with glass Doors without glass Where can a listing of tested and approved coverings and other opening protection be found? - ANSWER The Florida Department of Consumer Affairs website By contacting the Miami-Dade Building Code Compliance Office Which of the following roof coverings are barriers to water penetration of the roof? - ANSWER Shingles Tiles Metal Panels All licensed residential property insurance companies in Florida must accept this form when reporting mitigation features: - ANSWER Uniform Mitigation Verification Inspection Form Which agency has developed web pages devoted to informing consumers and builders of efforts that can made to make dwellings more hurricane resistant and thus reducing costs of insuring the structures? - ANSWER The Florida Division of Emergency Management Each of the following divisions falls under The Department of Financial Services EXCEPT? - ANSWER The Division of Consumer Activities For private passenger vehicles in the FAJUA, what is the maximum limit available for BI and PD? - ANSWER 100/300/50 The Consumer Choice Statute states: - ANSWER Consumers may select and maintain their agent of choice FWCJUA insureds are entitled to this type of cancellation of a policy at any time coverage is secured through the voluntary market. - ANSWER ProRata In the FAJUA, what are the maximum liability limits available to commercial vehicles? - ANSWER Any limits required by law For commercial vehicles in the FAJUA, what is the maximum limit available for BI and PD? - ANSWER Any higher limits required of the insured by any law or regulation. The FAJUA is composed of: - ANSWER All companies licensed to write auto insurance in Florida What forms are available for homeowner's coverage through Citizens? - ANSWER HO-3, HO-4, HO-6, HO-8 Established during the 1993 legislative session to provide employers with Workers' Compensation Insurance in the State of Florida who are unable to obtain coverage in the private marketplace: - ANSWER FWCJUA This association was created for applicants who are unable to obtain automobile insurance in the private market: - ANSWER FAJUA Within how many days is a Medicare Supplement Policy returnable for a full refund? - ANSWER 30 If an insured elects a lump sum benefit instead of a monthly disability benefit it is defined as: - ANSWER Elective Indemnity The policy that pays a flat amount per day of hospitalization regardless of expenses or other insurance is defined as: - ANSWER Hospital Indemnity Insurance This program provides comprehensive health services to members for a prepaid fixed fee with a goal of preventive activity: - ANSWER HMO The provision that states the insured would not have to pay premiums after a certain length of disability is defined as: - ANSWER Time limit on certain disability clause The typical grace periods in Health Insurance for weekly, monthly, and all other premium payments are: - ANSWER 7-10-31 The time after the premium due date where the policy remains in force even if the premium has not been paid is defined as: - ANSWER Grace Period How many days notice must a Health insurance company give when canceling a Health Policy? - ANSWER 20 After two years from the date of issue only fraudulent misstatements in the application can be used to void the policy or deny a claim. This is defined as: - ANSWER Limitations on insurer defenses The pre-existing conditions provision in Medicare Supplement Policy is limited to: - ANSWER 6 months All of the following are features of Major Medical Insurance EXCEPT? - ANSWER Has limited coverage for most expenses A selected group of hospitals and medical practitioners in a given area that have joined together in an effort to reduce medical costs is defined as: - ANSWER PPO Health insurance insures against loss by: - ANSWER All of the Choices Provided ABC Health Insurer does not renew your policy since renewals are being declined on all similar policies within the state of Florida. What type of policy is this? - ANSWER Conditionally Renewable Which of the following are excluded on a Health Insurance Policy? - ANSWER Occupational Disease PIP Benefits Attempted Suicide The maximum limit payable for Expediting Expenses in the unendorsed Boiler and Machinery policy is: - ANSWER $25,000 The coverage which pays the cost of temporary repairs and to fasten permanent repairs or replacement is defined as: - ANSWER Expediting Expense coverage Loss due to spoilage from lack of power, light, heat, steam or refrigeration is defined as: - ANSWER Consequential damage The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is: - ANSWER $25,000 In order to receive replacement cost for a Boiler and Machinery loss, the property must be replaced within: - ANSWER 18 months The coverage endorsement that pays actual lost profits and continuing expenses subject to the limit selected is defined as: - ANSWER Actual Loss Sustained Business Interruption Which of the following pays for extraordinary expenses incurred to maintain ongoing operations, over and above normal expenses that would have been experienced had there been no accident to the covered object: - ANSWER Extra Expense Form The Boiler and Machinery Policy provides automatic coverage for boilers at newly acquired locations for: - ANSWER 90 days Which of the following is NOT a characteristic of the Small Business Boiler and Machinery Policy? - ANSWER Business interruption is 25% of the limit but not an additional amount Which of the following pays an agreed dollar limit for each day of total interruption, or a proportionate part of that limit for partial interruption? - ANSWER Valued Business Interruption Which of the following provides important mechanical breakdown coverage generally not available under any other insurance policy? - ANSWER Boiler and Machinery Insurance Boiler and Machinery insurance protects an insured against the effects of catastrophic property loss to which of the following? - ANSWER Boilers Generators Compressors All of the following are located on a Boiler and Machinery Coverage form EXCEPT: - ANSWER Exhibits The coverage section of the Boiler and Machinery Coverage Form states the insurer will pay for direct damage to covered property from: - ANSWER A covered cause of loss Under a Boiler and Machinery Coverage Form, the insurer will defend the insured against claims or suits arising out of covered occurrences. What is the dollar limit for this coverage? - ANSWER No limit Which of the following is NOT a common deductible in an Aircraft Hull Policy? - ANSWER 2% The coverage that protects the insured's exposure for damage to an aircraft in his care, custody or control while being serviced or stored is defined as: - ANSWER Hangarkeepers Liability Jeremy's airplane is in the shop being repaired. What coverage would he need to be covered in a rented airplane? - ANSWER His policy will automatically cover the exposure A coverage that is similar to premises and operations coverage in the Commercial General Liability Policy covering bodily injury and property damage liability for aviation risks is defined as: - ANSWER Airport and Air Meet Liability Which of the following pays the principal sum for death or dismemberment if the named insured requests it and the company is released from further liability? - ANSWER Admitted Aircraft Liability Which of the following is NOT covered under an Aircraft Liability Policy? - ANSWER Cargo Liability Which of the following is NOT included in an Aviation Policy? - ANSWER Aircraft flying under conditions requiring special FAA permit even if a waiver is granted Which of the following coverages provides medical expenses for bodily injuries by accident, without regard to legal liability? - ANSWER Medical Payments When underwriting an Aircraft Hull Policy, all of the following questions are asked EXCEPT: - ANSWER Pilots - education Which of the following coverages protects against legal liability for loss or damage to cargo or baggage? - ANSWER Cargo Liability Which of the following protects against the risk of loss or damage to an insured aircraft itself? - ANSWER Hull Coverage The FAJUA is composed of: - ANSWER All companies licensed to write auto insurance in Florida A coverage that is similar to premises and operations coverage in the Commercial General Liability Policy covering bodily injury and property damage liability for aviation risks is defined as: - ANSWER Airport and Air Meet Liability Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000. Insured losses include $25,000 furniture, clothing and other ordinary personal property plus $5,000 damage to guns and $5,000 damage to jewelry, furs. Insured will recover: - ANSWER $29,000 less any deductible Each of the following divisions falls under The Department of Financial Services EXCEPT? - ANSWER The Division of Consumer Activities Which of the following provides for loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance, or destruction? - ANSWER Outside the Premises What is the standard All Perils deductible in the Commercial Property Policy? - ANSWER $500 Which of the following best describes a "Controlled" Inland Marine Form? - ANSWER Standard provisions form is written according to filed rules and rates Under a Personal Articles Floater, which of the following is covered as valued property? - ANSWER Fine Arts Under the Dwelling Program forms, vandalism is not covered after the building has been vacant for how many days? - ANSWER 60 days Under a Commercial General Liability Contract, how many days notice of cancellation must the insurer provide for non-payment of premium? - ANSWER 10 Under Additional Coverages, how much applies for loss assessments imposed by an association against the insured for damage to property caused by a peril insured against under Coverage A? - ANSWER $1,000 The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT: - ANSWER Loss Settlement Contract Rob has PIP with a $1,000 deductible. He has an auto accident causing $6,000 in medical bills. How much will his PIP pay? - ANSWER $4,000 - $6,000 - $1,000 deductible = $5,000 x 80% = $4,000 QRS Construction Company wants to provide the local school district with a price for building a new grammar school. In order to accept the price, the school board needs a bond that would pay the difference between QRS's price and the next highest price. What kind of bond does QRS need to provide to the school district? - ANSWER Bid bond - The Bid Bond is required to accompany a bid for a contract which will require that the successful bidder furnish further bond if awarded the job. The guarantee is that if the bid is accepted, the bidder will enter into the contract and will satisfy further bonding requirements for the job Which of the following guarantees the payment of materials in full upon completion of the work? - ANSWER Payment Bond Which of the following events would be covered under an HO-3? I. A sewer line became clogged and the toilet in the house backed up and overflowed, damaging the carpet. II. Wind blew a front door open and rain damaged the carpet. III. The neighbor's German Shepard damaged the garage doorframe while trying to get in the insured's garage to eat the dog food stored there. - ANSWER II and III only All of the following are located on a Boiler and Machinery Coverage form EXCEPT: - ANSWER Exhibits The Motor Truck Cargo Policy: - ANSWER Insures a truck carrier for liability arising out of the transportation of cargo. All of the following are types of property that can be covered under a Personal Articles Floater EXCEPT: - ANSWER Firearms What is the standard deductible for Employee Theft coverage? - ANSWER $500 The Forgery or Alteration coverage under a Businessowners Policy is: - ANSWER $2,000 How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period? - ANSWER 24 Which of the following is NOT true regarding sole proprietors and partners in the non-construction industry as they relate to Workers Compensation? - ANSWER A maximum of three can elect to be covered Which of the following is not a way to purchase Uninsured Motorist Coverage? - ANSWER More than your bodily injury limits Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not actually install them until Tuesday. What kind of policy will they need to cover any loss to the cabinets? - ANSWER Installation Floater This Hospital Form applies with "medical incident" defined as an act or omission in furnishing of professional services related to making of a blood donation under the supervision of the insured: - ANSWER Blood Banks Which of the following is not a valid deductible for hurricane in the Dwelling program? - ANSWER 1% 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 replacement cost adjustment? - ANSWER 180 Which of the following is NOT a common deductible in an Aircraft Hull Policy? - ANSWER 2% How many insuring agreements are there in a Commercial Crime Policy? - ANSWER 7 Barry was driving his car in Florida where he has lived all his life when he is hit by an at-fault driver. Barry has $10,000 in medical bills, basic PIP with a $1,000 deductible and no medical payments coverage. How much will the at-fault driver have to pay for Barry's injuries? - ANSWER $2,800 - $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP. Barry can hold the at-fault driver responsible for the difference of PIPs maximum limit of $10,000 and the $7,200, which is $2,800 During a break-in at a business, the safe is removed from the location. This is defined as: - ANSWER Safe Burglary The Boiler and Machinery Policy provides automatic coverage for boilers at newly acquired locations for: - ANSWER 90 days Which of the following statements is false regarding Co-Payment: - ANSWER Subject to a minimum amount All of the following are considered Aircraft Liability Coverages EXCEPT: - ANSWER Medical Liability There is no coverage for aircraft not registered under a standard category airworthiness certificate, in full force and effect, by the: - ANSWER Federal Aviation Administration In Aircraft Liability Coverage, liability to passengers is treated as a: - ANSWER Separate exposure Aircraft Policies may be written as: - ANSWER Valued Actual Cash Value Replacement Cost A person who holds property of others for a special purpose and returns it at some future time is defined as a(n): - ANSWER Bailee When the cost to salvage and recondition a vessel exceeds its value, the loss is known as: - ANSWER Constructive total All types of taking property by force is defined as: - ANSWER Enemies Fraud by the master or crew at the expense of the ship owner with the intention of reaping gains is defined as: - ANSWER Barratry Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not actually install them until Tuesday. What kind of policy will they need to cover any loss to the cabinets? - ANSWER Installation Coverage Form A peril that is unique to policies covering dry cleaners is defined as: - ANSWER Confusion of Goods TRS Inc. has an accident at sea and loses the cargo onboard its vessel. In order to be paid for the shipping charges that were lost, they would need to be insured by which of the following coverages? - ANSWER Freight Coverage As a general rule, Inland Marine forms do not cover which of the following? - ANSWER - wet marine - merchandise in course of manufacture - real estate Which of the following best describes a "Controlled" Inland Marine Form? - ANSWER Standard provisions form is written according to filed rules and rates Which of the following is an example of an instrumentality move transportation or communication? - ANSWER Television tower Which of the following covers the liability of a common carrier for damage to property of others? - ANSWER Motor Truck Cargo Policy A loss caused by Jettison, which is settled by each paying their proportionate share of the loss, is defined as: - ANSWER General Average