Florida RSCR 4-40 Final Exam Study Guide Questions and Answers, Exams of Community Corrections

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FLORIDA RSCR 4-40 Final Exam Study

Guide Questions With Correct Answers

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: - CORRECT ANSWER- ✔✔✅ Defamation "Tort" refers to which of these: - CORRECT ANSWER- ✔✔✅ A civil wrong, which for insurance purposes must be caused by negligence. Breaking and Entering with visible signs of forceful entry refers to: - CORRECT ANSWER- ✔✔✅ Burglary Insured has personal property at two locations. At the time policy is written, the property at location 1 is valued at $100,000. The property at location 2 is valued at $300,000. Insured purchases $400, blanket insurance. Later, they have a $137,000 loss from a covered peril at location 1. How much will the policy pay? - CORRECT ANSWER- ✔✔✅ $137, Ethical conduct requires which: - CORRECT ANSWER- ✔✔✅ Being honest and fair with people who place their trust in you. A convenience used to provide temporary insurance is called: - CORRECT ANSWER- ✔✔✅ binder The clause that states that the insured can not make the insurer take possession of damaged property after a claim is called: - CORRECT ANSWER- ✔✔✅ Abandonment Susan tries to buy collision coverage on her neighbor's car. She thinks her neighbor is a bad driver, and reasons that she can make some money if her neighbor gets into an accident. The insurance company tells her this is not possible. Why? - CORRECT ANSWER- ✔✔✅ Susan has no insurable interest in the neighbor's car. If you are 20% at fault for $10,000 of damages, you can be held legally liable for how much: - CORRECT ANSWER- ✔✔✅ $2,

Which of the following describes an insurable risk? - CORRECT ANSWER- ✔✔✅ The chance that an employee of a company might sabotage that company's machinery. An insurance deductible: - CORRECT ANSWER- ✔✔✅ Is paid out of pocket by the insured, but does not reduce the limit of insurance available. A temporary license as a general lines agent may be granted by the state for all of the following reasons EXCEPT: - CORRECT ANSWER- ✔✔✅ Allow time to retake state exam for the 4th try. Ethical conduct requires which: - CORRECT ANSWER- ✔✔✅ Licensee puts the public's interest first. Fill in the blanks: Property insurance pays ________, while liability insurance pays ________. - CORRECT ANSWER- ✔✔✅ The insured or a named interest / a third party Bethod has the authority to issue Certificates of Liability Insurance for Safety Mutual Insurance Company. Which of the following is not an acceptable practice? - CORRECT ANSWER- ✔✔✅ Provide a plain-language summary on the certificate describing what the policy forms cover. According to the Law of Large Numbers: - CORRECT ANSWER- ✔✔✅ Larger data sets can be used to make more accurate predictions. Any act of stealing except employee infidelity refers to: - CORRECT ANSWER- ✔✔✅ Larceny or theft All of the following are requirements of the Florida 4-40 CSR license, except: - CORRECT ANSWER- ✔✔✅ The licensee can not explain coverages to prospective clients. Which best describes an insurance deductible? - CORRECT ANSWER- ✔✔✅ A part of an insured loss which the policyholder agrees to pay out of pocket. If licensee fails to be appointed they are subject to losing their license. What period of time will trigger the termination of a license for failure to maintain an appointment? - CORRECT ANSWER- ✔✔✅ 48 months

Making fraudulent omissions or incomplete comparisons about a policy to induce a person to buy insurance with another company is known as: - CORRECT ANSWER- ✔✔✅ Twisting "The time limit within which a legal right must be exercised" describes which of the following? - CORRECT ANSWER- ✔✔✅ Statute of limitations. Which is a typical example of "insurable interest"? a. Sarah would lose money or assets if her own house was damaged. b. Frank is interested in a certain retail chain, and plans to invest in its stock. c. Frank is interested in insuring Sarah's house so that he can benefit if it is damaged. d. Sarah has a retirement account that pays interest, and wants to protect the rates against market fluctuations. - CORRECT ANSWER- ✔✔✅ Sarah would lose money or assets if her own house was damaged. Under PAP "Your Covered Auto" includes which? - CORRECT ANSWER- ✔✔✅ Any trailer you own. Which of the following policies provides the broadest coverage? - CORRECT ANSWER- ✔✔✅ HO- P.A.P. insured has 3 autos. 10/20 non-stacked UM on each. How much will UM pay in a single accident? - CORRECT ANSWER- ✔✔✅ $20,000 all B.I. Which policy would cover water damage to the dwelling and contents after a pipe bursts in the house? a. HO- b. DP- c. HO- d. Flood - CORRECT ANSWER- ✔✔✅ HO- If all flood damage in an area is confined to one building, for purposes of Flood Insurance the flood must inundate: - CORRECT ANSWER- ✔✔✅ over 2 acres of area

There is an auto insurance coverage that pays the insured only if an at-fault party injures the insured without supplying sufficient insurance to cover the injuries caused. This coverage is called: - CORRECT ANSWER- ✔✔✅ Uninsured / Underinsured Motorist coverage. Which of the following roof types is automatically eligible for a discount? a. Tin. b. Hip. c. Gable. d. Tile. - CORRECT ANSWER- ✔✔✅ Hip. Each of the following is an example of opening protection except: a. impact resistant windows b. impact resistant sky lights c. windowless doors d. hurricane shutters - CORRECT ANSWER- ✔✔✅ windowless doors All of the following vehicles are eligible for coverage under a Personal Auto Policy EXCEPT: - CORRECT ANSWER- ✔✔✅ Vehicle under lease for 4 months. Which of the following describes a coverage available without an endorsement on an HO policy: - CORRECT ANSWER- ✔✔✅ Fire legal liability The penalties for failure to comply with the Florida No Fault law are all EXCEPT: - CORRECT ANSWER- ✔✔✅ Misdemeanor punishable up to 30 days in jail. A car runs into the neighborhood association's recreation room. HOA members are each billed $1,750. One of the members turns in a Homeowner's claim. Assuming default limits, Homeowner's policy will pay: - CORRECT ANSWER- ✔✔✅ $1, An insured's possibilities in purchasing UM coverage are all EXCEPT:

In practice, one difference between Dwelling policies and Homeowners policies is: Select one: a. Homeowners policies are sold primarily to people who rent out the home to others, while dwelling polices are for owner occupants. b. Homeowners policies are usually purchased by the occupant of a home, while Dwelling policies are usually purchased by an owner who plans to rent the home to someone else. c. Homeowners policies are only sold to owner-occupants, but Dwelling policies can be sold to anyone who owns a dwelling. d. Homeowners policies are usually purchased by the occupant of a home, while Dwelling policies are usually purchased by a person who is renting the home from someone else. - CORRECT ANSWER- ✔✔✅ b. Homeowners policies are usually purchased by the occupant of a home, while Dwelling policies are usually purchased by an owner who plans to rent the home to someone else. All of the following would be eligible for the Dwelling program EXCEPT: - CORRECT ANSWER- ✔✔✅ An 8-plex. Which vehicle does not need to secure PIP coverage under No Fault law? - CORRECT ANSWER- ✔✔✅ Motorcycle A Personal Auto Policy (PAP) insurer may cancel for any reason except discrimination during which: - CORRECT ANSWER- ✔✔✅ First 60 days. Susan runs her car into Fred's car from behind, causing $1,000 of damage to Fred's car. Fred was distracted and had stopped too quickly. They go to court, and the court rules that Susan is 60% at fault for the accident. How much will Susan owe Fred for the damage to Fred's car? - CORRECT ANSWER- ✔✔✅ $ Which Homeowners coverage covers indirect losses? - CORRECT ANSWER- ✔✔✅ Additional Living Expense Florida insured has 10/20/10. What happens if she drives to a state requiring a higher limit? - CORRECT ANSWER- ✔✔✅ The policy increases to the required limit.

Under DPs, vandalism is not covered after building has been vacant for how many days? - CORRECT ANSWER- ✔✔✅ 60 All may be written under a single Flood Dwelling Policy except: - CORRECT ANSWER- ✔✔✅ Shed Which of the following is covered under Homeowners policy, Section II: Select one: a. Four-wheeler used off premises to visit in neighborhood b. Off road R.V. used at a camp ground. c. Motor vehicle in dead storage. d. 250 HP outboard motor boat owned for several years. - CORRECT ANSWER- ✔✔✅ c. Motor vehicle in dead storage. Tabby has a Homeowners policy. She is of town on business. Her $4,000 business computer is stolen from the hotel room. How much will the policy pay? - CORRECT ANSWER- ✔✔✅ $1, Lightning fells a tree on insured's premises. How would the tree be covered under the Homeowners Policy? - CORRECT ANSWER- ✔✔✅ $500 per tree under "trees, shrubs & other plants" Greta has an HO-4 policy. She is notified of the insurance company's intent to non-renew coverage. How many days advance notice must she be given? - CORRECT ANSWER- ✔✔✅ 120 Automobile Medical Payments coverage: - CORRECT ANSWER- ✔✔✅ Pays the driver's and passengers' medical bills, regardless of fault, and the limit applies per person per accident with no maximum Your client tells you they just agreed to serve on a board of directors. Which of the following coverages specifically applies to this situation, and should be discussed with the client? - CORRECT ANSWER- ✔✔✅ c. Directors and Officers Liability. An insurance agency in Florida is required by law to have Workers Compensation coverage: - CORRECT ANSWER- ✔✔✅ If they have 4 or more employees.

Which is a normal subject of insurance for inland marine policies? - CORRECT ANSWER- ✔✔✅ Property of others in the care, custody or control of the insured, such as jewelry at a jewelry repair shop. Suzy is helping a business client evaluate his insurance needs. The owner is concerned about the cost of reproducing architectural drawings if they are damaged. Which of the following coverage types provides the best solution for this problem? - CORRECT ANSWER- ✔✔✅ Commercial Inland Marine Assume some business personal property can be insured on any of the following forms. Which of the following would we expect to provide the broadest and best coverage? - CORRECT ANSWER- ✔✔✅ Commercial inland marine policy A mortgage broker's office in Florida is required by law to have Workers Compensation coverage: - CORRECT ANSWER- ✔✔✅ If they have 4 or more employees. Which of the following is typically used to protect someone from a breach of contract? - CORRECT ANSWER- ✔✔✅ Surety Bond A business owner who is required to secure Workers' Compensation but does not is committing: - CORRECT ANSWER- ✔✔✅ A felony Which of the following is a normal subject of insurance for a Business Auto Policy? - CORRECT ANSWER- ✔✔✅ A bus. Han has CGL insurance. One of his employees is pointing at Aisle 13 and accidentally pokes a customer in the eye. The customer sues Han. The cost of legal defense is $25,000, and the settlement with the customer is for $30,000 in medical bills (detached retina and scratched cornea) and and additional $30,000 for suffering caused by reduced vision. Assuming Han has $1,000,000 limits for CGL, how much of these costs will the policy cover? - CORRECT ANSWER- ✔✔✅ $85, Which CGL coverage will pay a claim even if the insured is not liable for an injury, and is not sued? - CORRECT ANSWER- ✔✔✅ a. Coverage C - Medical Payments

Bernadette, the owner of High Times Roofing Co., forgets to renew her Worker's Compensation insurance. As a result, the policy expires. Her employee falls off a roof, and has significant hospital bills. What is Bernadette's situation? - CORRECT ANSWER- ✔✔✅ She is liable for medical bills and lost wages, with no upper limit, as well as penalties for failing to carry required compensation insurance Jacob advises the owner of Top Carpentry Co. not to renew his Worker's Compensation insurance since he only has 2 employees. As a result, the owner lets the policy expire. Top Carpentry has an explosion, and the 2 employees are now in comas and on life support. Jacob has an Insurance Agent's E&O policy. Which of the following best explains Jacob's situation: - CORRECT ANSWER- ✔✔✅ He is covered up to his E&O policy limits, but his liability is potentially unlimited due to the terrible advice he gave to his client. Insured Mr. Jones has CGL. Due to Mr. Jones' negligence a fire occurs in front of Mr. West's grocery store without damaging Mr. West's grocery store. Mr. West sues for loss of business. Covered? - CORRECT ANSWER- ✔✔✅ Yes, the indirect loss is covered under property damage liability A CGL policy will cover a corporation in which of the following incidents: - CORRECT ANSWER- ✔✔✅ Job applicant slips and falls. Frank sabotages the burglar alarm at the office where he works, and breaks in after hours. His act best illustrates which property insurance concept? - CORRECT ANSWER- ✔✔✅ Moral hazard. Belinda's client is a practicing CPA who also serves on the board of a private capital firm. He desires coverage for the following scenarios: (1) his client is injured in his office, (2) he is sued by a client for making a mistake on a tax return, and (3) he is sued by a shareholder for negligent leadership as a director of the private capital firm. Which policies correctly cover these situations? a. CGL covers scenario 1, and an E&O policy can cover scenarios 2 and 3. b. CGL covers scenario 1, E&O covers scenario 2, and Employer's Liability covers scenario 3. c. CGL covers all 3 scenarios. d. CGL covers scenario 1, E&O covers scenario 2, and D&O covers scenario 3. - CORRECT ANSWER- ✔✔✅ d. CGL covers scenario 1, E&O covers scenario 2, and D&O covers scenario 3.