Sample 20-44 Questions

Question 1

An individual injured in an automobile accident has PIP with a $1,000 deductible. If the individual is
injured by an at-fault driver and suffers $8,000 in medical expenses, how much could they seek to
recover in a tort claim?
A. -0-
B. $2,600
C. $2,400
D. $8,000

Answer 1

C. $2,400

Question 2

Which statement best describes ones position under the Florida No-Fault Law when total economic
loss exceeds P.I.P benefits without exceeding a threshold?
A. Suit for intangible or general damages permitted; suit for economic loss not paid or payable not
permitted.
B. No recovery after P.I.P. is exhausted.
C. No suit for intangible or general damages; suit for economic loss not paid or payable under P.I.P. is
permitted.
D. Sue if P.I.P. is exhausted.

Answer 2

C. No suit for intangible or general damages; suit for economic loss not paid or payable under P.I.P. is
permitted.

Question 3

John has three autos insured with “Stacked” Uninsured Motorist coverage in the amount of $100,000.
John is driving Tim’s auto which has $50,000 UM coverage and has an accident in which the other party
is negligent. What is the maximum John might collect under UM?
A. $100,000
B. $300,000
C. $150,000
D. $350,000

Answer 3

D. $350,000

Question 4

The penalties for failure to comply with the Florida No Fault law are all EXCEPT:
A. personal liability for PIP benefits
B. loss of tort immunity
C. misdemeanor punishable up to 30 days in jail
D. suspension of drivers license & auto registration

Answer 4

C. misdemeanor punishable up to 30 days in jail

Question 5

You have 10/20/10; neighbor has 10/20/10. You borrow neighbors car. Following damage occurs:
Pedestrian injured $15,000
Parked sports car damaged $12,500
How much, if anything, is payable under the two policies?
A. Your policy pays $10,000 B.I., $10,000 P.D. Neighbors $5,000 B.I., $2,500 P. D.
B. Neighbor’s policy pays $10,000 B.I., $10,000 P.D. Your policy pays $5,000 B.I., $2,500 P.D.
C. Your policy pays $10,000 B.I., $10,000 P.D. Neighbor’s policy pays nothing.
D. Neighbor’s policy pays $10,000 B.I., $10,000 P.D. Yours pays nothing

Answer 5

B. Neighbor’s policy pays $10,000 B.I., $10,000 P.D. Your policy pays $5,000 B.I., $2,500 P.D.

Question 6

The PAP coverage that provides the insured coverage for BI for a claim against another driver who
has no liability insurance or liability less than the insured’s injuries, is called:
A. Uninsured Motorist
B. Liability
C. Medical Payments
D. Major Medical

Answer 6

A. Uninsured Motorist

Question 7

Covered breakdown involves both engine and transmission. How will deductible be applied?
A. No deductible in Mechanical Breakdown polices
B. One deductible no matter how many parts
C. None of these
D. Separate deductible for each part

Answer 7

B. One deductible no matter how many parts

Question 8

All of the following vehicles are eligible for coverage under a Personal Auto Policy EXCEPT:
A. pickup not used in business
B. 4 wheel drive private passenger type sports-utility vehicle
C. under lease for more than 4 months
D. owned by the insured

Answer 8

C. under lease for more than 4 months

Question 9

Jill has 3 autos with 100/300 stacked U.M. on each. The maximum U.M. coverage she has is:
A. 200/600
B. 100/300
C. 300/900
D. 10/20/10

Answer 9

C. 300/900

Question 10

How does Auto Medical payments apply to injuries that are also covered by Workers Compensation
benefits?
A. MP excess over WC
B. MP excludes coverage if WC available
C. WC excess over MP
D. Coverage shared on a pro rata basis

Answer 10

B. MP excludes coverage if WC available

Question 11

In the Personal Auto Policy, the basic dollar limit on Part D - Damage to Your Auto is:
A. $5,000
B. $10,000
C. $25,000
D. no dollar limit (ACV.)

Answer 11

D. no dollar limit (ACV.)

Question 12

For Personal Injury Protection, the owner of a motor vehicle is the:
i. one who holds legal title
ii. debtor in possession
iii. one who leases with option to purchase
iv. one who leases for 6 months or more
A. i, iii
B. i, ii
C. ii, iii, iv
D. i, ii, iii, iv

Answer 12

D. i, ii, iii, iv

Question 12

Under P.A.F. Scheduled Coin Collection, 2 rare gold coins scheduled at $5,000 each are sent by first
class mail to be appraised by an expert. Lost in the mail. P.A.F. will:
A. Pay ACV
B. Pay nothing
C. Pay $10,000
D. Pay $250

Answer 12

B. Pay nothing

Question 13

Under Blanket P.A.F. on coins and stamps the maximum paid per coin or stamp is:
A. $ 500
B. $ 1,000
C. $ 250
D. $10,000

Answer 13

C. $ 250

Question 14

Ms. Rhinehart has a Personal Auto Policy with liability limits of $100,000. If she has an accident
and is found to be negligent, how much would her policy pay if there was a $120,000 judgement and
$32,000 in defense costs?
A. $132,000
B. $ 82,000
C. $152,000
D. $100,000

Answer 14

A. $132,000

Question 15

Insured has a Basic Form DP-1 with no endorsements. A helicopter flying on a windy day crashes
into the dwelling, causing much damage. Which statement best describes how the DP-1 will respond?
A. DP-1 will pay nothing. Damage by aircraft is only covered if ‘EC’ perils are purchased.
B. DP-1 will pay nothing. Wind is the proximate cause of the loss, and coverage for wind must be
purchased by endorsement.
C. DP-1 will pay all damages. Damage by aircraft is one of the basic perils included in the policy.
D. DP-1 will pay all damages. Wind is the proximate cause of the loss, and is a covered peril on the
policy.

Answer 15

A. DP-1 will pay nothing. Damage by aircraft is only covered if ‘EC’ perils are purchased.

Question 15

Under Inland Marine policies all are correct EXCEPT:
A. Jewelry & Furs - 30 days automatic cover- age
B. Theft coverage requires visible signs of forceful entry
C. Fine Arts - 90 days automatic coverage
D. 25% of limit for newly acquired property

Answer 15

B. Theft coverage requires visible signs of forceful entry

Question 16

Special Form excludes all except:
A. Windstorm/Hurricane damage
B. Rust, deterioration
C. Insect, animal, bird damage
D. Employee theft of covered property

Answer 16

A. Windstorm/Hurricane damage

Question 16

Theft of the air conditioning unit on a DP-3 would be:
A. Limited to $2,500
B. Covered under Coverage A, Building
C. Excluded unless Broad Theft endorsed
D. Covered under Coverage C, Contents

Answer 16

B. Covered under Coverage A, Building

Question 16

Which coverage listed below is found in a DP-3, and not in a DP-1?
A. Other Structures
B. Fair Rental Value
C. Personal Property
D. Additional Living Expenses

Answer 16

D. Additional Living Expenses

Question 17

Wife buys $100,000 policy on building. Husband buys $200,000 policy on same building. $75,000
loss - how paid?
A. Over insured - No coverage
B. $100,000 policy was first. It is primary - $75,000 paid
C. $100,000 policy pays $25,000 - $200,000 policy pays $50,000
D. Each policy pays $37,500

Answer 17

C. $100,000 policy pays $25,000 - $200,000 policy pays $50,000

Question 18

Insured has DP-1 with vandalism coverage. Premises vacant 20 days when vandals cause $1,000
damage. Ignoring deductible recovery is:
A. $850
B. Nothing - coverage suspended
C. $1,000
D. $250

Answer 18

C. $1,000

Question 19

Under DP-1, which are for additional amounts of insurance?
A. Other structures
B. None of them
C. Property off premises
D. Rental value

Answer 19

B. None of them

Question 20

If all flooding in an area is confined to one building, the flood must inundate:
A. over an acre of area
B. over 3 acres of area
C. the building
D. over 2 acres of area

Answer 20

D. over 2 acres of area

Question 20

Flood Coverage applies on an ACV basis unless: A. the Replacement Cost option is purchased B. the insured carries insurance equal to or greater than 80% of Replacement Cost C. the insured resides in the residence at least 80% of the time D. rebuilds within a reasonable time

Answer 20

C. the insured resides in the residence at least 80% of the time

Question 21

Agents in the state of Florida may rebate a portion of their commissions to the customer. The agent must meet all of the following, except: A. Agent must maintain a rebate schedule for two years B. Rebate schedule must be posted in the agency C. Available to all insured's in the same actuarial class D. The rebate schedule must be filed with the insurer

Answer 21

B. Rebate schedule must be posted in the agency

Question 21

If a flood of a single premises is to be covered, the flood must inundate: A. an acre of land B. there is no area requirement C. the dwelling only D. two acres

Answer 21

D. two acres

Question 22

The body of statutory law known as ERISA is primarily enforced by which of the following: A. United States Department of the Interior B. United States Department of Justice C. United States Department of State D. United States Department of Labor

Answer 22

D. United States Department of Labor

Question 22

MEWA stands for which: A. Medical Education Workers Association B. Marine Environment Workers Association C. Multiple Employer Workers Association D. Multiple Employer Welfare Arrangement

Answer 22

D. Multiple Employer Welfare Arrangement

Question 23

Under ERISA a major goal was to allow which: A. A single employer to fully self insure a health plan B. Require at least 2 employers to self insure a health plan C. Require at least 3 employers to self insure a health plan D. Require at least 4 employers to self insurance a health plan

Answer 23

A. A single employer to fully self insure a health plan

Question 23

All of the following coverages are available in policies issued through Citizens Property Insurance Corporation, EXCEPT: A. Loss of Use Coverage B. Animal Liability Coverage C. Damage to Property of Others D. Other Structures Coverage

Answer 23

B. Animal Liability Coverage

Question 24

Under the CFO the Department shall in its order suspending a license specify a period of suspension or revocation, but the period shall not exceed: A. 2 years B. 4 years C. 3 years D. 1 year

Answer 24

A. 2 years

Question 25

Knowingly making, publishing or circulating any oral or written statement which is false or maliciously critical of any person and which is calculated to injure such a person is known as: A. defamation B. coercion C. intimidation D. boycott

Answer 25

A. defamation

Question 26

Liability coverage through the Florida Auto JUA is available to a maximum amount of: A. 50/100/25 B. 250/500/100 C. 10/20/10 D. 100/300/50

Answer 26

D. 100/300/50

Question 27

The Florida Comprehensive Hurricane Damage Mitigation Program is with: A. Department of Financial Services B. Department of Agriculture C. Department of Professional Regulation D. Department of Emergency Operations

Answer 27

A. Department of Financial Services

Question 28

An insurance company with headquarters in Paris, France is authorized to do business in Florida. To the Florida market such a company is A. Foreign Company B. Off Shore Company C. Domestic Company D. Alien Company

Answer 28

D. Alien Company

Question 29

Knowingly making any misleading representations or incomplete or fraudulent comparisons of any insurance policy with the intent of inducing a person to cancel or lapse an insurance policy is known as: A. Sliding B. Misrepresentation C. Twisting D. Coercion

Answer 29

C. Twisting

Question 29

If an insurance company headquartered in Kansas City is authorized to do business in Florida, to Florida this company is a A. Alien Company B. Foreign Company C. Off Shore Company D. Domestic Company

Answer 29

B. Foreign Company

Question 30

Under the CFO, the Department of Financial Services has a duty to investigate which: A. Rates B. Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance C. Commission scale D. Policy forms

Answer 30

B. Be satisfied that the applicant is qualified to write and service Property and Casualty Insurance

Question 31

All of the following are sliding except: A. telling the applicant that a coverage or product is included in the policy applied for with no additional charge, when such charge is required. B. charging an applicant for a coverage or product in addition to the cost of the insurance coverage applied for without the informed consent of the applicant. C. telling the applicant that a coverage or product is required by law when such coverage or product is not required. D. offering part of the commission to the applicant as an inducement for them to buy insurance from you.

Answer 31

D. offering part of the commission to the applicant as an inducement for them to buy insurance from you.

Question 32

Each of the following is required to be licensed except: A. customer representative B. limited customer service representative C. insurance office receptionist D. insurance agent

Answer 32

C. insurance office receptionist

Question 32

An insurance company formed in any state, other than Florida, is known as: A. Alien B. Domestic C. Mutual D. Foreign

Answer 32

D. Foreign

Question 33

The continuing education statutes require a minimum of: A. at least 4 hours on the subject of ethics B. at least 1 hour on the subject of Financial Responsibility Law C. at least 1 hour on the subject of premium discounts on property insurance hurricane mitigation D. at least 4 hours on the subject of ethics and at least 1 hour on the subject of Financial Responsibility Law

Answer 33

C. at least 1 hour on the subject of premium discounts on property insurance hurricane mitigation

Question 34

The definition of "Controlled Business" as defined by Florida Statutes means income from business for applicant's or family's interest or other organization in which applicant is associated or interested is more than A. 60% B. 50% C. 80% D. 40%

Answer 34

B. 50%

Question 35

Each of the following is an example of opening protection except: A. impact resistant windows B. hurricane shutters C. windowless doors D. impact resistant sky lights

Answer 35

C. windowless doors

Question 36

All of the following are eligible coverages for commercial automobiles in the Florida Auto Joint Underwriting Association, EXCEPT: A. Medical Payments coverage B. Liability Coverage C. Personal Injury Protection (PIP) D. Uninsured Motorist coverage

Answer 36

A. Medical Payments coverage

Question 36

Authority given by an insurer to transact insurance on behalf of the insurer defines: A. License B. Diploma C. Certificate of Authority D. Appointment

Answer 36

D. Appointment

Question 37

All of the following are functions of the Department of Financial Services except: A. Approve insurance policy forms, rules and rates B. Investigate unfair trade practices by agents C. Supervise claims activities of companies D. Approve issuance of licenses to agents and customer representatives

Answer 37

A. Approve insurance policy forms, rules and rates

Question 38

Giving back to the insured part of the agent's commission is called: A. Rebating B. Return Premium C. Retention D. Recall

Answer 38

A. Rebating

Question 39

Rebating is allowed in Florida: I. If the rebate is available to all insureds in the same class II. If done in accordance with a rebating schedule filed with the insurer III. If insured purchases collateral lines with the agent IV. Never A. IV B. I, II C. I, II, III D. I, III

Answer 39

B. I, II

Question 40

Agents are licensed by: A. Department of Insurance B. Insurance Companies C. Insurance Agencies D. Pearson Vue

Answer 40

A. Department of Insurance

Question 41

The minimum basic limit for Personal Liability are: A. $100,000 liability/$1,000 med pay B. $100,000 liability/$500 med pay C. $ 25,000 liability/$1,000 med pay D. $ 25,000 liability/$500 med pay

Answer 41

A. $100,000 liability/$1,000 med pay

Question 42

Under an HO-3, an insured will receive full replacement cost coverage on a loss to the dwelling if: A. the insured complies with the coinsurance percentage selected B. the limit of the coverage is greater than the loss C. the limit of coverage is greater than 80% of the loss D. the insured carries a limit equal to or grater than 80% of the replacement cost of the dwelling

Answer 42

D. the insured carries a limit equal to or grater than 80% of the replacement cost of the dwelling

Question 43

What is the limit of Coverage D on Homeowners Form 3? A. 40% of C B. 30% of A C. 20% of C D. 10% of A

Answer 43

B. 30% of A

Question 44

Car runs into neighborhood association's recreation room. Association member billed $1,750. His HO pays: A. $1,500 B. $1,250 C. $1,750 D. $1,000

Answer 44

D. $1,000

Question 44

Insured has HO-3 Coverage A in amount of $100,000. Due to a careless smoker a trash basket full of junk mail catches fire. Resulting damage is: Smoke damage to paint, wallpaper ...... $1,000 Tropical fish tank overheats, breaks open ..... $ 500 Valuable fish die from lack of water: Cost new - $1,000 Cost today - $1,500 Insureds' wife, sad from loss of fish, takes ski trip to Colorado ..... $5,000 Insured has standard $500 deductible; he will collect: A. Nothing B. $1,000 C. $2,750 D. $2,250

Answer 44

B. $1,000

Question 45

B&B Corporation owns a dwelling for entertaining clients. Is B&B eligible for Homeowners Insurance on this dwelling? A. Yes, if otherwise eligible B. No, coverage is excluded in policy C. No, specifically ineligible D. Yes, if endorsed

Answer 45

C. No, specifically ineligible

Question 46

All of the following are covered under insureds HO policy - Section II EXCEPT: A. Vacant lot at seashore used for beach access - owned by insured. B. Newly acquired secondary residence C. Vacant lot at seashore as above - rented to insured. D. Vacant land on which insured plans to raise cattle.

Answer 46

D. Vacant land on which insured plans to raise cattle.

Question 47

HO insured rents condo in Hawaii. Friend visiting condo falls, breaks leg. Later condo negligently burned. How paid? A. Neither covered B. Leg only C. Both leg and fire legal covered D. Fire legal only

Answer 47

C. Both leg and fire legal covered

Question 48

Under HO policies the limit on computers and cellular phone used primarily for business is what amount when off premises: A. $500 B. $750 C. $1,500 D. $250

Answer 48

C. $1,500

Question 49

All of the following are insured locations under Section II Homeowners Insurance EXCEPT: A. Family dwelling being constructed for insured's occupancy B. Insured's office C. Vacant land owned by or rented to insured D. Cemetery plot

Answer 49

B. Insured's office

Question 50

Any act of stealing except employee infidelity refers to: A. Embezzlement B. Larceny or theft C. Robbery D. Burglary

Answer 50

B. Larceny or theft

Question 50

Bill has HO. Out of town on business. $4,000 business computer stolen from hotel room. How paid? A. $500 B. $2,500 C. $1,500 D. $250

Answer 50

C. $1,500

Question 50

A provision granting immediate benefit to insured for revisions that broaden his coverage is called: A. Liberalization B. Transfer C. Other insurance D. Subrogation

Answer 50

A. Liberalization

Question 50

Insured has personal property at two locations. Values at location 1 are $100,000. Values at location II are $300,000. Insured has $400,000 blanket insurance. $137,000 loss from covered peril at location I. How paid? A. $137,000 B. $400,000 C. $300,000 D. $100,000

Answer 50

A. $137,000

Question 51

All are indirect losses except: A. Fire burns part of building. Ordinance requires complete replacement B. Fire causes landlord to lose tenants C. Fire causes company to spend extra money to stay in business. D. Fire destroys office building

Answer 51

D. Fire destroys office building

Question 52

The insurance provision that provides lower insurance rates for insureds who insure at levels close to the value of property, thus getting insurance coverage closer to property values is called: A. coinsurance B. other insurance C. proration D. subrogation

Answer 52

A. coinsurance

Question 53

A natural occurrence, unpredictable and not preventable by man defines: A. Consequential Loss B. Extended coverage C. Excluded perils D. Act of God

Answer 53

D. Act of God

Question 54

A civil wrong which for insurance purposes must be caused by negligence refers to which of these: A. Tort B. Proximate cause C. Prima-Facia D. Master-Servant

Answer 54

A. Tort

Question 55

A convenience used to provide temporary insurance is called: A. insurance B. property coverage C. binder D. liability coverage

Answer 55

C. binder

Question 55

When the insurer adopts a provision providing broader coverage without additional premium, and the broader coverage automatically applies to the existing policy, it is called: A. Liberalization B. Apportionment C. Appraisal D. Abandonment

Answer 55

A. Liberalization

Question 55

Insurance where payment is made on behalf of the insured to another party is called: A. property coverage B. binder C. adverse selection D. liability coverage

Answer 55

D. liability coverage

Question 55

Taking property by violence or threat of it refers to: A. Burglary B. Larceny or theft C. Robbery D. Embezzlement

Answer 55

C. Robbery

Question 55

Breaking and Entering with visible signs of forceful entry refers to: A. Embezzlement B. Robbery C. Larceny or theft. D. Burglary

Answer 55

D. Burglary

Question 56

If you are 20% at fault for $10,000 of damages, you can be held legally liable for how much: A. $2,000 B. $5,000 C. Any amount (unlimited) D. $10,000

Answer 56

A. $2,000

Question 57

To ask company to take partially damaged property and pay a total loss is called: A. Abandonment B. Moral hazard C. Disclaimer D. Conveyance

Answer 57

A. Abandonment

Question 58

One who has property of another in his care, custody, control is called: A. Bailee B. Obligee C. Trustee D. Grantee

Answer 58

A. Bailee

Question 58

Statute of Limitations is defined as: A. Legal limit on post and pre-judgment interest. B. Time within which a legal right must be exercised. C. Limits of liability under Financial Responsibility laws. D. Law limiting amount of Joint and Several Liability.

Answer 58

B. Time within which a legal right must be exercised.

Question 59

Any insurance where the insurer pays the insured or some other named interest directly is called: A. binder B. liability coverage C. property coverage D. adverse selection

Answer 59

C. property coverage

Question 59

One who makes a business of hauling property of others for a charge may be known as: A. Indemnitor B. Carrier C. Principal D. Obligee

Answer 59

B. Carrier

Question 60

The endorsement used to cover value of undamaged portion of building which must be demolished, cost of demolition, extra cost to rebuild to meet present day construction laws is called: A. Replacement Cost B. Building Ordinance C. Peak Season D. Value Reporting

Answer 60

B. Building Ordinance

Question 61

Which best explains the difference between a Franchise and a Flat deductible? A. Both disappear but Flat deductibles only after loss reaches a certain % of total values. B. Flat deductibles are small in amount; Franchise quite large. C. Franchise deductibles disappear when loss reaches certain amount and claimant is paid in full; Flat deductibles do not disappear. D. Flat deductibles are disappearing deductibles; Franchise are not.

Answer 61

C. Franchise deductibles disappear when loss reaches certain amount and claimant is paid in full; Flat deductibles do not disappear.

Question 62

Intentionally caused losses come under which property insurance concept. A. Moral Hazard B. Physical Hazard C. Morale Hazard D. Proximate Cause

Answer 62

A. Moral Hazard

Question 63

Under DPs, vandalism is not covered after building has been vacant for how many days? A. 30 B. 120 C. 90 D. 60

Answer 63

D. 60

Question 63

A Dwelling Policy Basic Form can be characterized as: A. Limited named perils/ACV B. Broad named perils/Replacement Cost C. Limited named perils/Replacement Cost D. Broad named perils/ACV

Answer 63

A. Limited named perils/ACV

Question 64

Eligible building under flood coverage must have all except: A. Have approved storm doors and windows B. Walls and roof C. 50% above ground D. Be permanent site

Answer 64

A. Have approved storm doors and windows

Question 64

Under the mortgage holder's condition all of the following are rights granted to the lender except: A. remain covered if acts of insured suspend his coverage B. pay premiums if insured does not C. receive rights of insured after company pays his claim D. submit proof of loss if insured does not

Answer 64

C. receive rights of insured after company pays his claim

Question 64

Under Flood Program the loss settlement that usually applies to one's principle residence is: A. ACV B. Valued policy C. 80% coinsurance D. Replacement Cost

Answer 64

D. Replacement Cost

Question 64

Standard deductible for DP's is: A. $500 All perils except hurricane - $1,000 minimum - 10% maximum B. $500 All perils except hurricane - $500 minimum - 2% - 10% maximum for hurricanes C. $1,000 All perils D. 2% - 5% All perils

Answer 64

B. $500 All perils except hurricane - $500 minimum - 2% - 10% maximum for hurricanes

Question 65

90. If a community has not been approved for flood coverage, but has applied for admittance, they come under: A. Special program B. Regular program C. Emergency program D. McCarren Furguson Act

Answer 65

C. Emergency program