Insurance Terminology and Concepts, Exams of Social Sciences

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FLORIDA INSURANCE CUSTOMER SERVICE 4- 40

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Transferring the risk to an insurance company is known as what? - Answers-Insurance When the insured request to have the company change a condition or provision in an insurance policy the document attach to the policy is referred to as what? - Answers- Endorsement George and Sandy only home which was damaged by fire who has insurable interest - Answers-George and Sandy Which of the following does not trigger financial responsibility - Answers-An accident with a small amount of property damage FR-44 is for - Answers-People who are convicted of dui or dwi If convicted of a dui or dwi insured must - Answers-Piggy 100% of the premium in advance also carry 100/300/50 liability insurance coverage for 3 years How long with the insured receive medical care when qualifying under medical payments - Answers-Medical Expenses and funeral services three years from date of accident regardless of fault Jon is walking across the street to go to the county fair and he is trucks as a pedestrian buy a motorcycle which of the following provides coverage? - Answers-Medical payments There is no deductible on - Answers-Windshield damage Rental coverage cost - Answers-$20 a day / $600 maximum If the insured wants to purchase coverage for a non-owned auto when he uses the vehicle for business or the car is furnished or his regular use or when he carries people or property for a fee what would he purchase - Answers-The extended non-owned endorsement If the insured wants to purchase coverage for a motorhome motorcycle all terrain vehicle golf cart or June buggy how can he acquire the coverage under Pap? - Answers-The miscellaneous type vehicle endorsement What is that Applicable time frame for insurer to send Notification of cancellation or non- renewal - Answers-45 days

What is not eligible for Fajua? - Answers-A nonresident owning property in Florida Which of the following is the policy term for a used car on a mechanical breakdown policy - Answers-12,000 or 12 months Car rental reimbursement - Answers-$15 per day / $75 maximum When does the personal auto policy cease to defend the insured - Answers-When the limits are exhausted by payments HO-2 (broad form) - Answers-covers the dwelling, other structures, and personal property on a named perils basis HO-3 (special form) - Answers-covers the dwelling and other structures on a risk-of- direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property is covered on a named perils basis HO- 4 - Answers-renters insurance HO- 5 - Answers-Comprehensive Form HO- 6 - Answers-condominium owners HO- 7 - Answers-covers mobile homes and house trailers The insured is renting a condominium in which his family resides what is the best homeowners policy to sell him - Answers-Ho Under the homeowners policy H03 which of the following would be considered an insured - Answers-The named insured's 25-year-old son living at home What is the most common loss settlement valuation in the property policies? - Answers- Actual cash value The insurance company pays the insured for damages that should have been collected from the app fault party now the insured right to seek damages from the airport party are transferred to his insurance company what best describes this concept - Answers- Subrogation PIP - Answers-Personal Injury Protection Pip coverage is - Answers-Primary Tort Immunity - Answers-Relief for persons who have suffered harm from the wrongful acts of others

Extend PIP - Answers-To fill percentage gaps Additional PIP increases limits to... - Answers-Increase dollar limit only 10,000 to 25, or more Under Florida law what are the benefits payable for medical expenses - Answers-80% Under Florida law what are the benefits payable for lost wages - Answers-Up to 60% Death benefits - Answers-5, Deductibles are how much - Answers-$250,$500,$ Cease to defend - Answers-Limits exhausted by payment Before an owner of a vehicle can't obtain a license plate and tag registration the owner must purchase PIP coverage in property damage liability coverage in the amount of - Answers-$10, When will the individuals be requested to prove they are financially capable three different times - Answers-At the time of an accident ( 2 )a major traffic violation and (3) an insurance vehicle is used in a felony The minimum liability limits bar - Answers-10/20/ Which of the following is not covered under coverage a dwelling - Answers-The land under the house Other structures classified as a detached garage shed pool or fence are covered under which - Answers-Coverage b Which of the following would be covered under property under insurance H03 policy - Answers-Theft of jewelry up to $ What are the options the insured may choose under the ordinance and Law coverage - Answers-25% and 50% What are the discounts under the wind mitigation Law - Answers-Roof covering roof to wall connection opening protections What is not a discount under the wind mitigation law - Answers-Plumbing changes Which of the following would be considered a flood - Answers-Due to excessive rain a street in yards were flooded houses were not damaged by water

Who is the major provider of flood program coverage - Answers-The federal government NFip What program does the insured enter when the firm map is completed - Answers- Regular program firm - Answers-Flood insurance rate map The insured has a dwelling flood form if he experiences damage to a dwelling on what basis with the claim is settled - Answers-Replacement cost The insured has a dwelling flood policy on his primary structure in which he lives 30% of the time on what basis for the claim is settled - Answers-He will be disqualified from replacement cost What are three different flood policies - Answers-General property policy Dwelling property policy Rcbab residential condo building association policy Which of the two flood programs is the first initial phase of the community involvement into national flood - Answers-Emergency Which of the following are the flood zones for preferred risk - Answers-Zones B,C,X What is considered to be eligible under the citizens program - Answers-A house built in 1947 updated to modern standards What is the citizens property insurance corporation deductible for wind on a home - Answers-2% for wind $1000 all other perils What forms are promulgated by the bureau in filed for uniform use - Answers-Controlled forms are used ISO - Answers-Insurance Services Office PEF - Answers-Personal effects floater What does personal articles floaters do? - Answers-Designed to ensure valuable items PAF - Answers-personal articles floater What is inherent VICE - Answers-Is the quality within an item itself which tends to destroy itself

The insured lost a diamond ring while on vacation how will the personal articles floater apply - Answers-Coverage is provided since the mysterious disappearance is covered under open perils Which policy provides blanket coverage for personal property primarily while traveling or on vacation - Answers-Personal effects floater PEF PPF - Answers-personal property floater Which policy would be similar to purchasing the HO3 with an endorsement of a personal property floater to cover personal property but on an open peril basis - Answers-The personal property floater PPF What forms are created by ISO and are considered standard forms - Answers-Control forms Personal liability coverage is - Answers-Primary OIR - Answers-Office of insurance regulations Who regulates insurance agents adjusters and customer service representatives - Answers-Department of financial services Who regulates the customer service division and provide services to the public - Answers-Division of consumer affairs What is the office of insurance regulations responsible for - Answers-Responsible for all activities of companies carriers risk bearing entities What is a certificate of authority - Answers-The license required for an insurer to conduct business in the state Domestic Insurer - Answers-An insurance company that conducts business in the state of incorporation. Foreign Insurer - Answers-An insurance company that is incorporated in another state. Alien Insurer - Answers-An insurance company that is incorporated outside the United States. Mutual Insurer - Answers-a corporation owned by the policyholders Stock Insurer - Answers-a corporation owned by stockholders Rebating - Answers-Giving or offering something of value to entice a person to buy a policy

Twisting - Answers-A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage. Sliding - Answers-Knowingly collecting excess premium What division is designed to assist consumers if they have a complaint - Answers- Consumer services division of the department of financial services Insurance company was created in Florida and is doing business in Alabama what is this type of company - Answers-Foreign Express Authority - Answers-Provided by written contract Implied Authority - Answers-Agent assumed he or she has the right to Agent authority granted in a written contract is which - Answers-Express authority Apparent Authority - Answers-Third party believed agent had the right What are three types of agent authority - Answers-express, implied, apparent Which party believes an agent has the right to do something under apparent authority - Answers-The customer / third party What are the factors that Influence ethical behavior - Answers-Income from commissions one company paying higher commission then another well offering less coverage in ability to assist customers and they need to refer Customer to another agent What policy does a business owner need to provide coverage for a building under construction - Answers-Builders risk policy Builders Risk Policy - Answers-Policy cover structures building foundation Which of the following is considered property not covered under the building and personal property coverage form - Answers-Land Under preservation of property how many days will coverage apply for off premise personal property - Answers-30 days Period of restoration does not start until? - Answers-72 hours after the loss Extended period of indemnity - Answers-This optional coverage extends the business income additional coverage up 730 days basically 2 years

Mono-line Policy - Answers-Insurance policy that provides one type of insurance coverage Multi-line Policy - Answers-insurance policy that provides multiple types of insurance coverage BOP - Answers-Business Owners Policy In business owner policy how does Coinsurance apply? - Answers-No coinsurance needed As long as it does not exceed the policy limit aggergate - Answers-Is the most payable for all claims in a policy year If general aggregate Has been used up can the agent help the small business customer by reactivating the other aggregate? - Answers-No since the premiums are so low What coverages are provided under section 1 and section 2 of the business owners policy - Answers-Section one property coverage section two liability CGL - Answers-Commercial General Liability All of the following are fully covered under the corporations commercial general liability policy - Answers-Officers ,employees and directors Sub limits - Answers-Supplements are applied per occurrence incident or person Basic Extended Reporting Period (BERP) - Answers-Claims may be made within 60 days following termination of policy coverage Supplemental Extended Reporting Period - Answers-Is an option to purchase an unlimited reporting. It must be purchased within the basic extended reporting. Liquor liability coverage form endorsement - Answers-Provides coverage if the insured is in the business of selling serving Manufacturing furnishing or distributing alcoholic beverages What damages does the coverage A liability Pay when insured is legally liable - Answers-Bodily injury and property damage to others When a contractor throws a Christmas party and one attendee is drunk and hurts another person attending the party who then Sue's the contractor how does the general liability policy respond - Answers-Covers only if not in the business of selling distributing liquor EPL - Answers-employment practices liability

Which of the following best describes the limits under the physicians surgeons and dentist professional liability policy - Answers-Per claim per aggregate How does the employment practice coverage form handle violations of the Americans with Disabilities act - Answers-Is specifically excluded Two cows leaned against an electric fence and we're electrocuted under which farm coverage form is the claim payable - Answers-Basic broad and special What are the broad form perils under farm coverage - Answers-Electrocution accidental shooting loading and unloading incidence Custom Farming - Answers-Use of insured's farm machinery or equipment for others away from insured's farm premises for compensation. It does NOT include work done for others in return for work done by them. Custom Farming Endorsement - Answers-Provides coverage for liability arising from the insureds performance of farming operations for another, for a charge under any contract or agreement. Coverage E scheduled farm personal property under the farm coverage form includes coverage for all of the following - Answers-Grain, poultry and livestock Two cows leaned against an electric fence and we're electrocuted under which farm coverage form is the claim payable - Answers-Basic broad and special What are the broad form perils under farm coverage - Answers-Electrocution accidental shooting loading and unloading incidence Custom Farming - Answers-Use of insured's farm machinery or equipment for others away from insured's farm premises for compensation. It does NOT include work done for others in return for work done by them. Custom Farming Endorsement - Answers-Provides coverage for liability arising from the insureds performance of farming operations for another, for a charge under any contract or agreement. Coverage E scheduled farm personal property under the farm coverage form includes coverage for all of the following - Answers-Grain, poultry and livestock What kind of types of coverages could be available for physical damage under the business automobile policy Bap - Answers-Collision comprehensive and specified perils

What kind of coverage is necessary if the business owner wants to cover hitting of an animal or grass breakage under the coverage for the business auto policy bap - Answers-Comprehensive Doc - Answers-Drive other car Doc will - Answers-Follow the company employee and also take care of employee spouse How can the carrier provide collision coverage for a vehicle which is driven more than 50 miles from the point where it was purchased - Answers-The dealers drive away collision endorsement Type of commercial auto policies - Answers-Business auto policy Garage policy Truckers policy Who regulates Worker's Compensation laws - Answers-DFS Department of financial services What is the design of workers compensation - Answers-Employees are compensated for occupational he incurred injuries regardless who's at fault and employers are immune to lawsuits How many employees must an employer have to be required to comply with Worker's Comp. - Answers-Four or more employees or one in More and construction Sam is an independent contractor he hired Joe for subcontractor and Joe brought his employee Harry to the job site harry got hurt on the job site harry found out that Joe has no Worker's Comp. what are Harry's rights? - Answers-Harry has the right to get Sam's workers compensation Sally works for a company in Miami she travels to Atlanta on a business trip and is injured while in Atlanta what section of the Worker's Compensation policy will apply - Answers-Part 1 of workers comp policy follows her Barbara was out of work for nine days how many days does she get paid for under disability benefits and Worker's Comp. - Answers-Two days Barbara will not receive any benefits for the first seven days Troy was out of work for 23 days how many days does Troy get paid under disability benefits and Worker's Comp. - Answers-All 23 days try to receive disability benefits for the entireperiod he was out of work because it was longer than 21 days Which of the following is covered under workers compensation - Answers-An employee asleep on the job

The following is not covered under workers compensation - Answers-And employee intentionally causing harm to himself an employee under drugs and alcohol and employee who committed a felony who over sees the fwcjua? - Answers-The Florida board of governors FWCJUA - Answers-Florida workers compensation joint underwriters association What are three parts of a Worker's Compensation policy - Answers-Part 1 worker's compensation part 2 employers liability part 3 Other states What are three benefits under part one of workers compensation - Answers-Medical disability death How long is the waiting period in retroactive date for Worker's Compensation - Answers- 7/21 days retroactive first day For what reason will part two employers liability defend the insured - Answers-Claims by employee not covered by workers comp claims by others for liabilities to insured employees claims by relatives of employees for consequential damages robbery - Answers-Taking someone's property by threat or force is theft - Answers-Taking another person's possessions burgalry - Answers-Breaking and entering leaving visible signs of forceable entry The insured had a break-in and the insured's office was signs of the break-in which of the following will cover the loss - Answers-Burglary and theft wall - Answers-War.acts committed by insured. Legal expenses. Loss of future income Our insured hired a bookkeeper and gave her $2000 draft authority the bookkeeper signed a $2000 check and put it in her personal bank account additionally she forged employers name to a separate check for $5000 and deposited that into her bank account what crime form would be necessary to cover this event - Answers-Employee theft If a fire destroys the insurance building what type of coverage will take care of the loss of money inside the building - Answers-Inside the premises destruction of money If the insured has evidence that the money was stolen what type of coverage to care of the loss - Answers-Inside the premises theft of money

Safe Burglary - Answers-The unlawful taking of property from within a locked safe or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior; includes the unlawful taking of the entire safe or vault from inside the premise. The insured's employee electronically transferred money from the employer's computer to the employees computer form would be necessary to cover this crime - Answers- Employee theft When a person turns over property to a thief under the threat of bodily harm this is known as - Answers-Robbery All of the following are the forms available under employee theft - Answers-Scheduled person scheduled position blanket Bid Bond - Answers-A contract bond guaranteeing that a contractor bidding on a construction or supply contract will enter into the contract and will provide a performance bond if the bid is accepted. Performance Bond - Answers-A contract bond guaranteeing that a contractor's work will be completed according to plans and specifications. Supply bond grantees what? - Answers-To supply contract on guarantees delivery of goods at a agreed price from the supplier to the purchaser The state of Florida officials ordered some desks tables and chairs for their field office if the state officials want to make sure these desks are delivered what barn will be required - Answers-Supply bond Probate Bond - Answers-If a person is deceased the court appointed another individual to probate the state and distribute the estate assets A person is appointed by the court to handle affairs of a deceased minor what kind of bond does that person need to obtain - Answers-Probate bond Conservation Bond - Answers-Guarantees a person appointed by the court to preserve property of minor or incompetent individual What kind of a bond is an appeal bond? - Answers-Court Bond What is the purpose of a blue sky bond? - Answers-If a securities dealer sales investments to the public but default on its securities the blue sky bond will pay for those defalcations What does a lost instruments bond cover? - Answers-Lost in shipment find guaranteeing of those money orders will not be cashed

Insurance company issuing the bond will want to know all of the following before issuing a bond - Answers-Capital character capability What does a lost instruments bond cover? - Answers- Our insurance tractor-trailer caring customers goods was picked up by a tornado and deposited 5 miles away damaging the cargo inside how were the motor truck cargo policy respond - Answers-The policy will not respond anyway since it's the act of God The high school band is going to play for the White House they ship their musical instruments to Washington DC what kind of coverage does the band need for those instruments - Answers-Trip transit A mail order house has sent out a shipment what kind of coverage does the mail order company need to have to cover this one shipment - Answers-Annual transit Trip Transit Policy - Answers-used by firms to cover a single shipment Annual Transit Policy - Answers-Policy that covers all shipments made or received by the insured throughout a one-year policy period. What does the Bailey's customers form cover - Answers-It covers the property of others in the care custody troll of the insured What type of business are Bailees? - Answers-Try cleaners warehouses or furriers Contractors equipment form - Answers-Covers have equipment and tools by fire theft other perils The insured is an elevator sales elevators company please we're installing an elevator for a customer but incurred $40,000 damage to the elevator during the process what policy form takes care of the damage - Answers-Installation floater Installation Floater - Answers-Covers against machinery being installed or while in transit and testing What is the term for standard word policies created by ISO insurance service office? - Answers-Controlled Who's vessel is covered under hull coverage - Answers-Your vessel What is freight coverage - Answers-Protects vessel owner against freight charges not paid

What is payable under running down clause - Answers-Covers an incident in which the insured runs down another vessel in the water Perils of the sea - Answers-Occurrences which come upon a vessel wall in its operating on the ocean when waves come in stranded sinking colliding with another vessel or a fixed object Perils on the Sea - Answers-do not have anything to do with the ocean but could happen other situations such as earthquakes lightning pirates who attack ship while it's on the water jettison - Answers-to throw goods overboard to lighten the load on a boat Barratry - Answers-Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement of the cargo. Rule for Sue and labor - Answers-Requires insured to take all steps necessary to save and preserve goods from loss What is the definition of the standard deductible under ocean marine - Answers- Franchise deductible for loss equals or exceeds the deductible the deductible is waived What coverage is provided for loss of income Under ocean marine - Answers-Freight A pilot parked a plane side effects but forgot to tie the plane down A gust of wind later push the plane into the fence damage the plane the insurance company wants to apply to Deductible what is it - Answers-No deductible What is the distinction between flight and not in flight - Answers-Not in flight has no deductible What is omitted aircraft liability - Answers-Pays for the death and dismemberment if requested by insured eliminates legal action against the insured What is covered under hanger keeper? - Answers-Covers the plane which is left with the insured for storage repair or safekeeping What is covered territory under an aviation policy - Answers-United States Canada and Mexico within 100 miles of the US border If a passenger suffers dismemberment or he dies what coverage could be provided conversation without admitting that the airline was at fault - Answers-Admitted aircraft liability

What type of properties are covered under boiler and machinery? - Answers-Boilers generators pumps compressors and turbines How does the boiler and machinery policy provide expediting expense? - Answers-Pays the cost of temporary repairs Ian's to hurry along permanent repairs Our insurance business relies on his generator for power during a temporary period of generator breakdown the company had to purchase electrical power from the electric company what is the expense to be covered under - Answers-Expediting expenses because it is temporary Expediting Expenses - Answers-Pays the cost of temporary repairs to hurry along permanent repairs What is the timeframe for newly acquired equipment under boiler and machinery policy - Answers-90 days What is the minimum limit under boiler and machinery policy - Answers-$500, What is standard deductible under boiler and machinery policy - Answers-$500 per occurrence What is covered by consequential damage under boiler and machinery policy - Answers-Covers loss due to spoilage from lack of power light steam refrigeration Temporary repairs to hurry along permanent repairs in boiler and machinery is considered - Answers-Expediting expenses What is the grace. Under health insurance policies - Answers-7/10/ The insured pays his health insurance premium on a quarterly basis what is the grace period - Answers-31 days Which answer below best describes a dreaded disease policy - Answers-Incurable illness Are insured is partially disabled how is the waiver of premium going to respond - Answers-The waiver of premium will not come into affect since the insured is not totally disabled but only partially What is the definition of Medigap policy - Answers-Policy which covers medical costs not payable under the federal Medicare program