Florida Insurance Exam Study Guide: Questions and Answers, Exams of Nursing

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Final exam 2-20 questions with correct answers

Types Of Property Policies - % Property Insurance Terms And Related Concepts - % Property Policy Provisions And Contract Law - % Types Of Casualty Policies, Bonds, And Related Terms - % Casualty Insurance Terms And Related Concepts - % Casualty Policy Provisions - % Florida Statutes, Rules, And Regulations Common To All Lines - % Florida Statutes, Rules And Regulations Pertinent To General Lines Insurance - % Florida Statutes, Rules And Regulations Pertinent To Health Insurance - % CORRECT ANSWER Types Of Property Policies - 16% Property Insurance Terms And Related Concepts - 9% Property Policy Provisions And Contract Law - 7% Types Of Casualty Policies, Bonds, And Related Terms - 16%

Casualty Insurance Terms And Related Concepts - 9% Casualty Policy Provisions - 7% Florida Statutes, Rules, And Regulations Common To All Lines - 15% Florida Statutes, Rules And Regulations Pertinent To General Lines Insurance - 15% Florida Statutes, Rules And Regulations Pertinent To Health Insurance - 6% The Florida State exam consists of _______ scored questions plus 15 pretest questions. CORRECT ANSWER 160 You have a total of _____ hours to complete the test. CORRECT ANSWER 3 The application must show the applicant is at least _____ years old. CORRECT ANSWER 18 The application must show the applicant is a bona fide _______ of or whose place of business is in Florida. CORRECT ANSWER Resident The application must show the applicant will have place of business in Florida, will actively engage in the business, and maintain a place of business identifiable and ________ to the public CORRECT ANSWER Accessible The application must show the applicant is not seeking the license for purpose of writing "____________" (more than 50% of income from business for applicant's

or family's interests or other organization in which applicant is associated or interested) CORRECT ANSWER Controlled business If the applicant has no 4-40 experience then the application must show the applicant is qualified by knowledge, experience or instruction through having successfully completed Department-approved ________ hour course within 4 years immediately preceding date of application. CORRECT ANSWER 200 The General Lines application must show the applicant is qualified by knowledge, experience or instruction through having completed at least ________ year of responsible insurance duties as a licensed and appointed Customer Representative (4-40) or Limited Customer Representative (4-42) in either commercial or personal lines of property and casualty insurance and a 40 hour 4-40 to 2-20 conversion course approved by the department. CORRECT ANSWER One The Personal Lines License application must show the applicant is qualified by knowledge, experience or instruction through having successfully completed Department-approved _________ hour course within 4 years immediately preceding date of application. CORRECT ANSWER 60 The Personal Lines license applicant must have completed at least six months within the last ________ years of responsible insurance duties as a licensed and appointed Customer Representative (4-40), Limited Customer Representative (4- 42), or Service Representative (0-55) in property and casualty insurance sold to individuals and families for noncommercial purposes. CORRECT ANSWER Four The General Lines state exam consists of _______ questions with a ______ hour time limit. CORRECT ANSWER 160, For a General Lines License, the applicant the he or she is how man years of age? CORRECT ANSWER 18

When more than 50% of an agent's income comes from business from an agent or their family, this is know as what type of business? CORRECT ANSWER Controlled business If an agent's license has gone more than 48 months without an appointment he or she must apply once again as what? CORRECT ANSWER First time applicant A designated customer service representative in Florida can only be appointed by who or what? CORRECT ANSWER A general lines agent Once your adjuster license has gone beyond __________ months without an appointment, you will have to qualify as a first time applicant. CORRECT ANSWER 48 What elected official is a member of the Florida cabinet, and serves as the head of the Department of Financial Services? CORRECT ANSWER Chief financial officer Who directly oversees the Division of Insurance Agent and Agency Services? CORRECT ANSWER Chief financial officer Insurance company regulation is administered by which office? CORRECT ANSWER Commission of office of insurance regulation Which office provides oversight to Florida's financial service providers? CORRECT ANSWER Office of financial regulation ________ means the chance of financial loss. CORRECT ANSWER Risk

All insurance is designed to offset the _________ impact upon an insured of such losses. CORRECT ANSWER Financial _________ means a written contract of or written agreement for or effecting insurance, or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements and papers which are a part thereof. CORRECT ANSWER Insurance policy __________ is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. CORRECT ANSWER Insurance The elements that constitute the consideration for a valid insurance contract are the _________ and agreement to the terms and conditions in the policy by both the insurer and the insured CORRECT ANSWER Premium A _______ policy is one that for a given coverage is substantially like the policies written by all or a majority of companies in the field. CORRECT ANSWER Standard A __________ policy's wording is standardized through state law. CORRECT ANSWER Statutory An insurance _________ must be written to constitute a policy. CORRECT ANSWER Arrangement Temporary insurance is effected through _________. CORRECT ANSWER Binders

Binders or other contracts for temporary property, marine, casualty or surety insurance may be made. CORRECT ANSWER Orally An insurer shall give days prior notice of cancellation of a binder, unless the binder is replaced by a policy or another binder in the same or another company. CORRECT ANSWER 5 _______ Insurance means any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests. CORRECT ANSWER Property ________Insurance means payment will be on behalf of the insured to another, based upon the insured's liability to the recipient. CORRECT ANSWER Liability Property and Liability insurance policies cover _________ , not property or operations. CORRECT ANSWER Persons The type of contract where obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions describes a _________ contract. CORRECT ANSWER Conditional The type of contract wherein the parties are of unequal bargaining power, and one party (the insured) cannot negotiate the terms, having to take the offer of the other party (the insurer) as made describes a contract of ___________. CORRECT ANSWER Adhesion The principle of __________ is that one should not profit from the response provided by the policy. CORRECT ANSWER Indemnity

Insurable __________ means any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. CORRECT ANSWER Interest Insurable interest must exist in order for insurance to __________. CORRECT ANSWER Respond Virtually all property and liability insurance contracts are comprised of four fundamental parts; the ________, the ___________ agreement, the ________, and the _________ CORRECT ANSWER Declarations, insuring, exclusions, conditions The _________ include descriptive material relating to the subjects covered, persons insured, the premium to be paid, period of coverage, and policy limits or amounts of insurance. CORRECT ANSWER Declarations The _______ agreement defines broadly the coverage given under the policy. CORRECT ANSWER Insuring Exclusions are necessary to eliminate coverages which would; ________ in other policies which may be available to the insured, or be _________ perils, or be coverages of a __________ nature that the insurer can not insure. CORRECT ANSWER Duplicate, uninsurable, specialized A _______ may be defined as a contingency that may cause a loss (such as fire or windstorm). CORRECT ANSWER Peril A ________ is a condition that introduces or increases the likelihood of loss from a peril. CORRECT ANSWER Hazard

A ________ hazard is a condition stemming from the physical characteristics of an object that increases the probability and severity of loss from given perils. CORRECT ANSWER Physical A ________ hazard stems from the conscious mental attitude of the insured (e.g., intentional loss). CORRECT ANSWER Moral A _________ hazard stems from the unconscious mental attitude of the insured (e.g., accident proneness). CORRECT ANSWER Morale The doctrine of ________ cause is a fundamental doctrine in property insurance holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. CORRECT ANSWER Proximate _______ loss means physical harm to tangible property. CORRECT ANSWER Direct ________ loss means economic loss which flows as a consequence of direct loss. CORRECT ANSWER Indirect ________ Interest gives the lender the needed protection to make the loan, by assuring that the collateral may be restored if it is damaged CORRECT ANSWER Lender Actual Cash Value (ACV) is the current costs to replace the item, less an allowance for __________. CORRECT ANSWER Declaration

A _______ policy is one wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value. CORRECT ANSWER Valued A Valued Policy Law states, in part, that if there is a _________ loss by a covered peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid. CORRECT ANSWER Total ________ is a method of providing equity in premiums by granting lower rates to those insureds who accept the responsibility of insuring for amounts which reflect a high percentage of the value of the subject property CORRECT ANSWER Coinsurance Property insurance policies that are issued subject to separate limits for each building, the contents of each building, the indirect loss exposure at each building, the amount in each safe covered or in possession of each person away from the premises for crime exposures, etc. Coverage subject to such separate limits is called ________ Insurance CORRECT ANSWER Specific ________ Insurance applies a single amount to two or more coverage items which are subject to specific rating, with any part of the full amount available to apply to any item. CORRECT ANSWER Blanket ________ deductibles specify the deduction of a flat amount from a loss payment, regardless of the size of the loss CORRECT ANSWER Straight ________ deductibles specify that no payment shall be made until the loss equals or exceeds a prescribed amount, then the loss is paid in full. CORRECT ANSWER Franchise

A _________ deductible requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits CORRECT ANSWER Percentage ________ insurance policies pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages..." or equivalent wording. CORRECT ANSWER Liability There are __________ ways in which the limits of a liability policy insuring agreement may be expressed. CORRECT ANSWER Three With a single limit, a single amount is the __________ liability of the insurer with respect to any one accident or occurrence. CORRECT ANSWER Maximum With ____________ limits, the limit of liability is expressed by two figures. CORRECT ANSWER Split ___________ limit means a limit is applied which represents the total insurance coverage that will be paid for the policy term, for the perils to which the aggregate limit applies. CORRECT ANSWER Aggregate _________ is the failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. CORRECT ANSWER Negligence For liability insurance to pay, the one who is legally liable must have the status of an "__________ " under the policy. CORRECT ANSWER Insured __________ policies recognize legal damages against the insured and pay directly to the claimant. CORRECT ANSWER Modern liability

An _________ waiver occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. CORRECT ANSWER Express An _________ waiver may result from some act of neglect on the part of the adjuster. CORRECT ANSWER Implied Insureds are not permitted to ________ by intentionally causing damage to their own property CORRECT ANSWER Profit A ________ is an untrue statement by the insured made in an application for insurance but which does not become a part of the insurance contract. CORRECT ANSWER Misrepresentation A ________ is the failure of the insures to reveal relevant facts known to the insured in applying for insurance. CORRECT ANSWER Concealment A property policy may require the insured to

• _______ the damaged property, -use reasonable means in ________ against further loss, -show the ________ property, -provide ________ and documents, -submit to ________ under oath, -report thefts to the ________, -reveal any other ________ that exists,

-submit a "proof of __________" within a given period of time after the loss occurs. CORRECT ANSWER inventory, protecting, damaged, records, questions, police, insurance, loss All policies provide that any ________ to the policy must be made by the insurer, in writing CORRECT ANSWER Changes The ________ Period condition states that coverage applies only to losses or occurrences that take place during the policy period. CORRECT ANSWER Policy Policy ________ condition limits coverage to occurrences or losses that take place only within a stated geographical region; for example, the United States, its possessions, and Canada. CORRECT ANSWER Territory The ________ condition states that, generally, the insured may cancel at any time, but the insurer must give some degree of advance notice. CORRECT ANSWER Cancellation A _______ condition, found in many standard policies, states that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period (typically, 60 days) or during the policy period, the insured receives the benefit of such broadened coverage. CORRECT ANSWER Liberalization An ________ condition exists to resolve differences between insurer and insured about the amount of the loss. CORRECT ANSWER Appraisal An _________ clause, states the insured cannot "dump" damaged property on the insurer and demand its full value. CORRECT ANSWER Abandonment

_______ means the insurance applies separately to each insured as if other insureds did not exist. CORRECT ANSWER Severability