20-44 Exam Simulator Flashcards
(52 cards)
True or False? Florida law does not address Unfair Trade Practices or Acts.
FALSE
Read F.S. 626.9521 for a complete review
Which of the following are duties of the Bureau of Property & Casualty Insurer Solvency?
A) Receipt and review of periodic financial statements
B) Periodic on-site financial examinations
C) Both A and B
D) Neither A or B
C) BOTH A AND B
The Bureau of Property & Casualty Insurer Solvency has the following duties: (a) receipt and review of periodic financial statements; (b) periodic on-site financial examinations; and (c) review of all new insurers.
Section II of the Homeowners policy covers:
A) Coverage E Liability
Liability for Watercraft under the Homeowners policy excludes:
- Owned inboard or inboard-outboard watercraft
- Rented watercraft exceeding 50 horsepower
- Owned or rented sailboats if 26 feet or longer
- All of the above
ALL OF THE ABOVE
Liability for Watercraft under the Homeowners policy excludes: (a) owned inboard or inboard-outboard watercraft; (b) rented watercraft exceeding 50 horsepower; (c) owned or rented watercraft if powered by a jet pump; (d) owned or rented sailboats if 26 feet or longer; (e) owned outboard motorized watercraft exceeding 25 horsepower excluded at inception but covered if acquired during the policy term.
Zoe was injured in an auto accident by the negligence of a hit and run driver. Zoe’s injuries are valued at $50,000. She has PIP with a $0 deductible and has recovered $10,000 from her PIP. She has UM coverage of $10,000/$20,000.
How much is Zoe’s UM recovery?
$10,000
Zoe will collect $10,000 as her damages exceed her PIP. As there is no liability coverage available from the hit and run vehicle Zoe’s remaining recovery is limited to her $10,000 per person per occurrence UMBI limit.
True or False: An insurer has 20 days from receiving formal notice from an insured to return the insured’s pro-rata premium.
FALSE
An insurer has 30 days from receiving formal notice from an insured to return the insured’s pro-rata pre
True or False: The HO-6 can be taken out by a condo owner for either their own occupancy or tenant occupancy of the condominium.
TRUE
he HO-6 can be used for either owner occupancy or tenant occupancy.
Under Section II of the Homeowners Insurance policy all BUT which of the following is an “insured location”?
- Newly acquired residences
- Cemetery plots
- Owned vacant land
- Residence premises not described in the
Declarations
RESIDENCE PREMISES NOT DESCRIBED IN THE DECLARATIONS
An “insured location” includes: (a) residence premises described in the Declarations; (b) newly acquired residences during the policy period; (c) locations where an insured is temporarily residing or has rented for non-business use; (d) vacant land owned by or rented to an insured (but not farm land); (e) insured’s land upon which a one to four family dwelling is being constructed as a residence for the insured; and cemetery plots or burial vaults.
True or False? Section II- Liability of the Homeowners policy excludes liability coverage for damage caused by a motorized vehicle which is normally used to assist a handicapped family member if the vehicle damages property or injures third parties while not being used in it’s “assistance” capacity at the time of loss.
TRUE
It is true, Liability coverage is excluded if the handicapped vehicle is being used for anything other than assisting a handicapped person (including its transportation, loading, and unloading).
Your insured has had a one vehicle accident with the roadbed.
Which coverage is the physical damage to the insured’s vehicle covered by?
Collision
Seals Croft suffered $12,000 of non-permanent injuries in an accident that was Madonna Sinatra’s fault. Madonna did not carry any insurance on her vehicle. Seals has recovered for his medical expenses and lost wages under his PIP and Medical Payments coverage and has stacked UM coverage.
Seals cannot collect against his UM coverage
Uninsured Motorists is not compensable if it replicates payments received under PIP, Medical Payments, Workers Compensation, disability benefits or like coverage/recovery.
Your agency has a company appointment with an insurance company owned by its policyholders, this type of insurance company is a….
Mutual Insurer
Misrepresentations, omissions, concealment of facts, and incorrect statements shall not prevent a recovery under the policy or contract unless:
A) They are fraudulent
B) They are material
C) Both A & B
D) Neither A or B
C) BOTH A & B
Please review Unit 2.9 for a complete review.
Michele Spicer suffered a lightning strike at her residence damaging most of her electronic equipment. She has a Homeowners policy with the Replacement Cost Endorsement on Personal Property. Michele was paid the Replacement Cost for all of her electronics less the applicable depreciation. Four months later Michele replaced all of the equipment and placed the insurance company on notice of the replacement. How will the insurer respond?
The insurer will pay Michele the amount previously deducted for depreciation
In the Homeowners Insurance policy an insured has up to 180 days to collect on a Replacement Cost Basis if the property that is damaged is subject to depreciation.
Michele is injured by Ken who was at fault in an automobile accident. Michele had $6,000 in medical bills and had purchased PIP with a $250 deductible.
How much will she recover against Ken?
No recovery against Ken, she has recovered against her own PIP and has not pierced the monetary or verbal thresholds for action against Ken
Write Your Own Flood programs are backed 100% by:
NFIP
Mrs. Beckley, your Homeowners insured, has contacted you to file a liability claim as an invitee to her home tripped over an extension cord and hit their head on a table. She also has advised you that she spent $100 of first aid for Mrs. Beckley. How will you respond?
Mrs. Beckley, First Aid Expenses are reimbursable please submit copies of any receipts to the insurance company
By listing the Loss Payee on the PAP’s Declarations page:
A) The Loss Payee is solely paid for losses incurred under Coverage D
B) The Loss Payee’s collateral is not protected
C) Both A & B
D) Neither A or B
D) Neither A or B
By listing the Loss Payee on the PAP’s Declarations page: (a) the Loss Payee is jointly paid with the insured for losses incurred under Coverage D, and (b) the Loss Payee’s collateral is protected.
Your insured has had a one vehicle accident with a tree. Which coverage is the physical damage to the insured’s vehicle covered by?
Collision
The PAP defines “your covered auto” as:
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.
All of the following are penalties for non-compliance with the compulsory No-Fault law except:
- Repossession of auto
- Suspension of driver’s license
- Personal liability for payment of PIP benefits
- No immunities from legal liabilities
Repossession of auto
All of the following are penalties for non-compliance with the compulsory No-Fault law: (a) no immunities from legal liabilities which are granted to those who do comply; (b) personal liable for payment of PIP benefits to those entitled to receive such benefits; and (c) suspension of driver’s license and vehicle registration.
Your Homeowners insured has had a fire at her home which has rendered the home unfit for living in. Which coverage will provide temporary housing expense and ancillary cost coverage?
- Coverage A
- Coverage B
- Coverage C
- Coverage D
Coverage D
– Loss of Use will provide coverage for housing and additional cost.
An insured has a $500 Franchise deductible and suffers a loss of $400; how much will the insured be paid on their claim?
- $400
- No payment will be paid
- $500
- None of the above
NO PAYMENT WILL BE PAID
No payment will be paid as the loss amount did not exceed the franchise deductible. If the franchise deductible had been exceeded then 100% of the loss would be paid.
This Homeowners policy form insures condominium owners?
HO-6
