Pearson Vue State Questions FL .docx

[Pearson Vue State Questions/Topics] 1. On a HO3 policy, a deductible would apply to which of the following: a. Appurtenant Structures b. Medical Payments to Others c. Fire Department Service Charges d. Defense for unintentional credit card fraud 2. Deductibles can be fou...

[Pearson Vue State Questions/Topics] 1. On a HO3 policy, a deductible would apply to which of the following: a. Appurtenant Structures b. Medical Payments to Others c. Fire Department Service Charges d. Defense for unintentional credit card fraud 2. Deductibles can be found where in the policy? e. Insuring Agreement f. Conditions g. Exclusions h. Declarations Page 3. An insurance company must be examined by the state insurance department once every: i. Year j. 2 years k. 3 years l. 5 years 4. Which of the following would be covered by Comprehensive coverage on an auto policy? m. A fence that the insured backs into n. The insureds car hit by a train o. Damage to a telephone pole the insured strikes p. Damage to the vehicle after striking a deer 5. Which of the following would be covered by a HO3? q. Fuel oil spillage to structure r. Termites s. Flood Damage to the home t. Mechanical Breakdown 6. Which of the following best represents ACV? u. Today's cost plus appreciation v. Today's cost less depreciation w. Today's cost less market value x. Selling price of the home 7. A tenant with broad perils for personal property would have which policy? y. HO8 z. HO3 a. HO4 b. HO5 8. Which of the following best describes robbery? c. Breaking into a store leading to theft d. Stealing from a safe e. Stealing from a business after hours f. Threaten or use of force leading to theft 9. If the insured carries liability limits of 100/300/50, what does the 50 represent? g. Bodily Injury Per Person h. Property Damage i. Bodily Injury Per Occurrence j. Medical payments 10. Stealing something from an open business would be? k. Theft l. Robbery m. Burglary n. Mysterious Disappearance 11. If you make false statements about another insurance company, what illegal practice are you committing? o. Twisting p. Defamation q. Boycotting r. Rebating 12. Where would you find a list of covered perils in your policy? s. Declarations Page t. Insuring Agreement u. Conditions v. Exclusions 13. When must insurable interest exist? w. Prior to the loss x. At the time of the loss y. After the loss occurs z. When the policy is purchased 14. Which of the following would not be covered when purchasing the mobile home endorsement? a. Attached floor covers and appliances permanently installed b. An attached carport c. At attached utility tank d. Wear and tear 15. The insured has a \$3000 statute covered by a Personal Article Floater. Which of the following would NOT be covered? e. The insured threw it and damaged it accidentally f. Theft of the statute g. A friend of the insured vandalized it h. The statute was damaged in a flood 16. Dirty air ducts at a restaurant would be a: i. Hazard j. Peril k. Exposure l. Risk 17. What is the document that insured would get to show what coverage was in force? m. Binder n. Warranty o. A certificate of insurance p. An endorsement 18. Which of the following would be covered under the Extended Coverage endorsement on a dwelling policy? q. Fire r. Vandalism s. Theft t. Smoke 19. A proof of loss must be submitted within: u. 10 days v. 20 days w. 30 days x. 60 days 20. A stair at your home with no handrail would best describe: y. Peril z. Loss a. Hazard b. Risk 21. Auto insurance liability can either have a split limit or a c. Single combined limit d. Double combined limit e. Triple combined limit f. Unlimited limit 22. Which of the following would be covered by liability insurance on a homeowner policy? g. An intentional act h. Professional liability i. Hurting a 3^rd^ party with your aircraft j. You dog biting a 3^rd^ party 23. What is the timeframe to file a med pay claim on either homeowners or auto insurance? k. 1 year l. 2 years m. 3 years n. 5 years 24. On an auto policy, transportation expenses would be covered under what coverage? o. Coverage A p. Coverage B q. Coverage C r. Coverage D 25. A producer must renew their license every: s. 1 year t. 2 years u. 3 years v. 5 years 26. The other insurance clause (pro-rata) found in a homeowner policy reinforces? w. Insurable interest x. Aleatory y. Indemnity z. Warranty 27. If you drive your vehicle and strike a pedestrian, what coverage would cover the injury to the pedestrian? a. UM Uninsured Motorist b. UIM Underinsured Motorist c. Liability d. Comprehensive 28. A condominium unit owner would get which policy? e. HO8 f. HO4 g. HO3 h. HO6 29. Which homeowner policy would provide the broadest coverage? i. HO8 j. HO2 k. HO3 l. HO4 30. If you have an HO3 and your home suffers a \$10,000 loss to the structure due to wind damage, which loss valuation method did you get if you got the full amount paid back? m. Replacement Cost n. Actual Cash Value o. Market Value p. Functional Replacement Cost 31. Which of the following is not a rate classification that can be used to determine rates? q. Gender r. Age s. Geographic location t. National Origin 32. What are the minimum liability limits in FL? u. 25/50/10 v. 25/50/25 w. 20/50/25 x. 10/20/10 33. The insured has boat attached to his vehicle. The insured was backing up and is at fault for backing and injuring someone after they strike them. Which of the following would be covered under the boat policy? y. Both property damage to the boat and bodily injury to person struck. z. Bodily Injury to the injured party only a. Nothing is covered since the boat was out of water at the time b. The damages to the boat only 34. A boat is attached to the back of the insureds pickup truck. While backing, the insured backs into a tree causing damage to the tree and boat. What would be covered by the boat policy? c. Boat damage only d. Damage to the tree e. Nothing f. Both boat damage and damage to the tree 35. What is the purpose of the Guaranty Association? g. Provide insurance at a discounted rate h. Provide an alternate insurance option if you do not like your admitted company i. Provide insurance if an insurer goes insolvent j. To provide coverage for every possible claim that arises 36. Which of the following would be covered by Mine Subsidence? k. Your dwelling falls into a sinkhole l. Flood damage to your dwelling m. Your dwelling falls into a mine n. Your personal property fell into a mine 37. Who would be considered insured on an auto policy? o. A mechanic test driving your vehicle p. A neighbor driving your vehicle without permission q. An employee driving for their employer regularly and frequently r. An unlicensed 16-year-old living with you 38. What is issued to the insured before the permanent policy is issued? s. Dec page t. Binder u. Warranty v. Deductible 39. A risk is best defined as: w. Uncertainty of loss x. Cause of loss y. Amount of loss z. Increased chance of loss 40. Which would be covered as an indirect loss? a. Tornado damage to your dwelling b. Theft of personal property c. Loss of business income after a fire d. Fire damage to your structure 41. Which describes non-renewal? e. Termination during your policy f. Termination at the end of your policy g. Termination after 60 days of having a policy h. Termination prior to the end of your policy 42. Withholding information when asked would be? i. Representation j. Concealment k. Waiver l. Misrepresentation 43. If the agent states that policy covers something that it doesn't, what term would describe this? m. Misrepresentation n. Representation o. Fraud p. Concealment 44. The special dwelling policy DP3 gets what coverage for the home? q. All Risk/Open r. Named s. Broad t. Basic 45. The basic dwelling policy DP1 would cover all the following except? u. Fire v. Lightning w. Internal Explosion x. Theft 46. The insured has a home valued at \$100,000 covered by a HO3. The insured has \$40,000 left of the mortgage. If the ph does something to invalidate the coverage, how would the mortgage company be settled? y. They would receive up to the policy limits z. They would receive loan amount still owed a. They will receive nothing b. They would receive the value of the home 47. Which is Not true about the appraisal clause? c. It settles disputes about whether or not something is covered d. It settles disputes regarding the value e. Both the insured and insurer must hire an appraiser f. Both the insured and insurer pay the costs of the appraisers 48. If the insured buys a new car and doesn't tell the insurer, which statement is correct? g. It is covered for a certain amount of time h. It is not covered because they didn't tell the company about the vehicle i. It is not covered because the vehicle was added to the policy j. None of the above 49. If the 3^rd^ party has insufficient limits for the 1^st^ party medical bills, what coverage of the auto policy would apply? k. Uninsured motorist l. Liability m. Underinsured motorist n. Bodily Injury 50. Which would require a limited lines license? o. Crop insurance p. Mine insurance q. Flood insurance r. Windstorm insurance 51. A surplus lines producer must pay a gross tax twice a year. Who do they pay this money to? s. Department of Insurance t. Department of Revenue u. IRS v. NAIC 52. Storing explosives in your basement would be what type of hazard? w. Moral x. Morale y. Physical z. Legal 53. Under the windstorm coverage, which of the following would be covered? a. Wind causes a hole in the roof where water gets in and damages the floor b. Flooding c. Antenna damaged on detached garage d. Personal property damaged by a sump pump 54. On an HO3, whose personal property would not be covered? e. A resident employee f. A family member visiting as a guest g. A minor dependent in your home h. A border 55. What is he coinsurance requirement for a homeowner? i. 60% j. 10% k. 80% l. 100% 56. Any administrative action must be reported within how many days to the state? m. 10 days n. 20 days o. 30 days p. 60 days 57. If the insured is being cancelled for nonpayment on an auto policy, the insurer must provide how much notice? q. 10 days r. 15 days s. 20 days t. 30 days 58. Where would you find things that are not covered? u. Declarations v. Insuring Agreement w. Conditions x. Exclusions 59. T is in an accident with K who is 10% at fault, what is not covered by K's liability insurance? y. Traffic fines z. Lost wages a. Dental bills b. Pain and suffering 60. M is a passenger in F's car and F loses control and hits a tree. M's injuries could be covered under. c. UIM d. Comprehensive e. Liability f. UM 61. Which of the following nonowned autos would be covered under auto insurance? g. A rental vehicle on vacation h. A taxi i. A vehicle not on your policy for regular and frequent use j. Using a neighbor's vehicle without permission 62. Who does an agent represent? k. Themselves l. An agency m. The insured n. The insurer 63. To make you whole again and put you back to where you were prior to the loss illustrates: o. Insurable interest p. Indemnity q. Insurance r. Warranty 64. The transfer of risk is the definition of which term? s. Insurance t. Loss u. Peril v. Hazard 65. Which is not an insurable factor when determining whether or not to insure someone? w. Zip code x. Items in the application y. Credit reports z. Home inspections 66. The homeowner has a 100,000 home with an HO3 and has a outstanding loan of \$40,000. If the insured invalidates the policy, what would the mortgage company get? a. Remainder of loan b. Full replacement cost of home c. Nothing d. Market Value 67. All of the following are included in a notice of claim except: e. Inventory of damaged property f. Adjuster reports g. Description of the loss h. Protecting property from further loss 68. Under the Florida Automobile Joint Underwriting Association (FAJUA), what is the minimum deductible you can have for physical damage coverage? i. \$50 j. \$100 k. \$200 l. \$250 69. The hurricane occurrence ends at the end of the hurricane watch which is how many hours after the termination of the last watch? At this point, the peril of hurricane will switch to other perils. m. 24 hours n. 36 hours o. 48 hours p. 72 hours 70. The Hurricane Deductible is: q. Per event r. Per calendar year s. Per named hurricane t. Per season 71. What is the amount of controlled business an agent may having in any 12 month period? u. 10% v. 50% w. 80% x. 100% 72. Which of the following best illustrates controlled business? y. Selling insurance to family members z. Selling insurance to a stranger a. Selling insurance to a neighbor b. Selling insurance at a fair 73. To adjust claims and transact insurance an agent: c. Must be appointed by the DOI d. Must be appointed by the insurer e. No appointment is needed f. Be appointed by the Governor 74. Which of the following is an example of transacting insurance? g. To Negotiate h. To commit defamation i. Referring someone to an insurer j. To make a commercial 75. Which of the following is true of the Surplus Lines producer: k. They are regulated and protected by OIR (Office of Insurance Regulation) l. They are regulated and protected by the DFS ( The Department of Financial Services) m. They are not protected by the Guaranty Association n. They are regulated and protected by the OFR ( Office of Financial Regulation) 76. How long can a producer keep their insurance license without an appointment? o. 48 months p. 24 months q. 12 months r. 6 months 77. When an insurance agent adds something at no extra cost to a customer to get them to have it, what illegal practice are the committing? s. Rebating t. Churning u. Sliding v. Defamation 78. If the insured is carrying liability limits of 10/20/10, what is the max for bodily injury? w. 10,000 x. 20,000 y. 30,000 z. Unlimited 79. What license can a customer service agent work under without holding a license? a. A limited lines license b. A general lines producer c. A general lines agent d. A limited funeral licensee 80. Which of the following types of property would be covered by Citizens Insurance? e. A tenant occupied dwelling f. Vacant Land g. A home repaired from hurricane damage h. A mobile home tied to the ground 81. All of the following are settlement options of a PAF except: i. ACV j. Stated Amount k. Salvage Value l. Cost to repair or replace the property 82. Which of the following would be an elective pay option under the disability policy? m. Partial loss of sight n. A lump sum instead of a weekly payout o. Permanent disfigurement p. Permanent loss of bodily function 83. When a premium finance contract is cancelled, the agent would have to reimburse the insured what? q. The policy fees r. The earned premium s. The earned commission t. The unearned commission 84. Which is not covered by PIP? u. Death v. Pain and suffering w. Permanent scar x. Permanent loss of bodily function **[Terms and Definitions on Exam to Know ]** A. You must be appointed in order to sell, solicit, or negotiate for an insurance company. Remember, just be licensed does not mean you can do anything for a company. Being appointment by a company is what allows you to do things on their behalf. B. Make sure to review the fair credit reporting act. C. Getting a rental car on vacation would be considered a non-owned auto. Get a rental car when your vehicle is getting repaired is a temporary substitute. D. Another name for indirect loss is a consequential loss. E. Subrogation = transfer of right of recovery to an insurer after a loss. They are able to purpose a 3^rd^ party or another insurer to get reimbursed for the loss. F. A blanket limit = covers multiple properties under a single limit G. Negligence = a form of liability in which the insured is responsible. The damages must be by a negligent act. H. Review the mortgage clause. The bank is the mortgagee and still have rights even if the insured invalidates the policy. The bank must also submit their own proof of loss within 60 days if the insured fails to do so. I. When 2 or more policies cover the same loss we use the pro-rata other insurance clause formula to figure out what each would pay. Pro-rata means they each pay a portion of the loss. J. A personal article floater excludes flood damage. K. A nonresident producer does not need to take a licensing exam. L. Consultants sell advice for a fee. M. High risk auto insurance for people that can't get it in voluntary market is called AIP (Auto Insurance Plan) N. Controlled business is when you sell insurance to people you have an influence over such as family, business partners, and coworkers. O. If no theft or crime, you do not need to call the police after a loss. P. Maligning another insurance company is defamation. Q. Unilateral contract = Insurance is a one-sided contract in which only the insurance company is legally bound by its promises R. There are 4 elements to a negligence: Duty, Breach of Duty, Proximate cause, Damages S. If you conceal something the insurer may void your policy. T. A fiduciary is someone in the position of trust. We are entrusted with customer money. U. Notice of claim/loss must be reported timely. Proof of loss must be submitted within 60 days. V. Pro-Rata Other insurance = identical policies covering the same home. This formula determines who pays what. W. Review unfair trade practices and reasons to suspend a license. X. Customer service agents must be appointed by a general lines agent. Y. A fiduciary is a person that is entrusted with customers money and personal information. Z. FAJUA is not for someone who can get insurance in the voluntary market. IT is high risk auto insurance for people that don't qualify. A. If you conceal anything we will void your policy. B. The PAF coverage is the lesser of ACV, cost to repair or replace the property, or the limit specified for coverage. **[Answer Key]** 1\. A 30. A 59. A 2.D 31. D 60. C 3\. D 32. D 61. A 4\. D 33. D 62. D 5\. A 34. A 63.B 6\. B 35. C 64. A 7\. C 36. C 65. A 8\. D 37. D 66. A 9\. B 38. B 67. B 10\. A 39. A 68. D 11\. B 40. C 69. D 12\. B 41. B 70. B 13\. B 42. B 71. B 14\. D 43. A 72. A 15\. A 44. A 73. B 16\. A 45. D 74. A 17 C 46. B 75. C 18 D 47. A 76. A 19 D 48. A 77. C 20 C 49. C 78. B 21 A 50. A 79. C 22 D 51. A 80. C 23 C 52. B 81. C 24 D 53. A 82. B 25 B 54. D 83. D 26 C 55. C 84. B 27 C 56. C 28 D 57. A 29 C 58. D