20-44 Exam Simulator

The insuring agreement in the liability section of a policy has two major responsibilities. The insurer’s first duty is to ‘pay up to our limit of liability for the damages for which an ‘insured’ is legally liable’.

What is the second responsibility/duty?

The ‘liberalization clause’ states ‘If we make a change which __________ coverage under this edition of our policy without additional premium charge, that change will automatically apply to your insurance as of the date we implement the change in your state provided that this implementation falls within 60 days prior to or during the policy period stated in the Declarations.

Section I Exclusions in the ISO HO 00 03 05 11 policy form state: ‘We do not insure for loss caused directly or ___________ by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.’

In the Conditions section of an insurance policy the Duties After Loss provision states which if any of the following:
Statement One: “Give prompt notice to us or our agent”
Statement Two: “Cooperate with us in the investigation of a claim”

One of the primary ‘obligations’ of an insurance company is to?

The insured had their television, DVD player, and all of their home theater components stolen the television and equipment was more than ten years of age. The insurance company has paid the insured for ‘brand new equipment’ without applying any depreciation. What loss settlement provision was applied?

In arbitration, the opposing parties to a dispute each submit their evidence to a ___________ agreed upon third party, called an arbitrator.

Supplemental Payments include all but which of the following?

Cancellation Provisions in insurance policies allow who to ‘cancel’ an insurance policy?

What precipitated the Terrorism Risk Insurance Act?

What is the number once source of underwriting information regarding the insured?

The _____________________ Act requires financial institutions like insurance companies to explain their information-sharing practices with their customers and to safeguard sensitive data.

All of the following are elements of a contract EXCEPT:

In the event that an insured and insurer do not agree on the amount of loss in a claim:
Statement One: either party may request the appraisal of loss under the Appraisal Clause
Statement Two: the appraisal applies to all areas under dispute

The insured is required to _______ the police in the event of a theft. The insured is required to _______ the fire department in the event of a fire. The insured is required to ______ the cred card company in the event of credit card or fund transfer theft.

Mortgage Companies are protected in the Conditions section of the insurance policy, ‘__________ clause’:

Mutual Insurance Companies are owned by __________ who elect a board of directors which oversees the management of the company.

True or False? PEOs are not considered a MEWA because a true employer-employee relationship exist.

Agents ______ share commissions with other agents and customer representatives appointed and licensed to write the same kind of insurance.

Commonly referred to as ‘rebating’, agents ______ permitted to pay, allow, give, or offer to pay to an insured directly or indirectly any inducement to purchase any policy of insurance.

Insurance underwriting may not discriminate based upon which, if any, of the following? (choose all that apply)

An applicant for the 20-44 Personal Lines license must show that the applicant is at least ___ year of age.

Customer representatives ____ share in commissions with a licensed insurance agent.

Licensees ______ share commission with a corporation if it is a licensed insurance agency.

Which, if any, of the following are possible consequences for aiding or abetting an unauthorized insurer?

An unauthorized insurer was caught transacting business without a Certificate of Authority. The amount of the premium involved in the transaction was over $100,000. What degree felony is this unauthorized insurer guilty of?

F.S. 626.112(8) addresses referral fees that are conditioned upon an actual sale; specifically, no referral fee or commission can be paid to a licensed entity if the offer of referral is…

A licensee ______ collect any premium in excess or below what the required rate known by the licensee at the time of the premium collection.

A Risk Retention Group is an insurance company that is owned by its policyholders AND the policyholders have…

All of the following are ‘obligations’ of the insurance company EXCEPT.

Shelby was injured in an auto accident and has $90,000 in injuries and has a $1,000 PIP deductible. How much will Shelby receive as a claims payout from her insurance company?

All of the following offices, departments, and officials are involved in Florida’s ‘financial services regulation’ EXCEPT:

The Office of Insurance Regulation has regulatory oversight to promote a stable and competitive insurance market for consumers. All of the following are key objectives of the Office of Insurance Regulation EXCEPT:

ERISA’s language states that the federally mandated ERISA laws supersede state laws, this is known as ___________.

A __________ is a representation of a material facts or condition of which the issuance of the policy of insurance is conditioned.

True or False? Ethics is the study of normal behavior and is the cornerstone of professionalism in the insurance industry.

Once an applicant has been granted the 20-44 Personal Lines Agent license the licensee has ___ month to obtain an appointment.

Which of the following, if any, of the following statements are correct?
Statement One: Optionally renewable cancellation clauses permit non-renewal at expiration but not during the policy term.
Statement Two: Conditionally renewable cancellation clauses permit non renewals but only for specific enumerated reasons.

Florida law requires a Florida health insurance company to provide ___ days written notice of cancellation of a Florida health insurance policy.

This health insurance ‘general provision’ waives premiums if the insured becomes totally disabled but the policy remains in force.

The health insurance provision which limits an insurers defenses or reservations that an insurer may raise to deny a claim or void a policy is the ‘limitations on insurer defense’ provision. What is the time frame that the limitation is in existence?

All of the following statements are correct concerning Hospitalization Expense Insurance EXCEPT:

All of the following statements are correct concerning Hospitalization Indemnity Insurance EXCEPT:

Accident insurance covers expenses arising from accidents but EXCLUDES all but which of the following?

Surgical Expense Insurance pays benefits:

Major Medical Insurance polices protect against ____________ losses.

Major Medical Health Insurance policies typically cover:

The most stringent ‘total disability’ definition in a Disability Income Insurance policy is:

Medicare Supplement Insurance provides coverage for the gaps, deductibles, exclusions, and coinsurance in ___________________.

Florida Statutes require Medicare Supplement Insurance to:

Health Maintenance Organizations (HMO) provide the insured with comprehensive health services with a focus on ______________.

Preferred Provider Organizations (PPO) provide the insured with comprehensive health services with a focus on:

True or False? PPOs are organized by insurance companies that contract with physicians and hospitals who offers their services via a negotiated scheduled contract.

True or False? The DFS has the responsibility of claims activity supervision, so that a policyholder may be assured of fair treatment and prompt settlement in the event of a loss under a policy.

In the event of a company becomes insolvent, the DFS manages the liquidation process to protect the interest of claimants, the public, and the Guarantee Fund (on behalf of the public). The administration of the liquidation is known as:

The Office of Insurance Regulation _______________ the qualifications of insurance company’s financial conditions.

Which of the Office of Insurance Regulation’s units is responsible for property and casualty rates and policies?

Which part of the OIR’s ‘market conduct examinations’ analyzes the marketplace to uncover unlawful or harmful practices negatively impacting insurance consumers?

The Office of Financial Regulation has regulatory oversight for Florida’s financial service providers. Select (more than one may apply) objectives of the Office of Financial Regulation?

Florida law dictates that all BUT one of the following is the ‘transacting of insurance’; which of the following does not meet the state’ definition of ‘transacting insurance’?

____________ is the transfer by primary insurers to other insurers who specialize is insuring the portfolios of insurance companies. This transfer of exposure to loss provides stability to the primary insurer in the event of either large aggregated losses over a period of time (e.g. per year) or specific catastrophic losses (e.g. Hurricane Katrina).

A _________ insurer is one formed under the laws of this state.

A ________ insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States ‘other than this state’.

Which statements below are correct regarding Fraternal providers of insurance? (hint: more than one answer is correct)

An ______________ insurer is one duly authorized by a subsisting certificate of authority issued by the department to transact insurance in Florida.

An Insurance Agent’s License enables the license holder to engage in the business of insurance in good faith and with fair dealing with the insuring public. Specifically prohibited are:

In conclusion, an insurance agent can demonstrate ethical behavior by… (select all that apply):

True or False. An applicant for the 20-44 Personal Lines Agent license can seek the license for the purpose of writing “controlled business”.

The Office of Financial Regulation is responsible for the oversight of Florida’s financial service providers; which if any of the following statement are true?
Statement One: to promote a safe and sound financial marketplace.
Statement Two: to contribute to Florida’s growth with effective regulation of the financial services industry.

Admitted insurance companies have _____________ a license to do business with the state of Florida.

ERISA’s language includes a ___________ which deems that employee plans and trusts are not to be construed as insurance companies.

True or False? Florida statutes explicitly prohibits payment to any unlicensed person any fee or compensation for a referral and no referral fee or commission can be paid to a licensed entity if the offer of referral is conditioned upon a sale.

All BUT which of the following are insurance agent licensing requirements?

The Department of Financial Services requires a license holder to place the department on notice of changes for all BUT which of the following?

The Department of Financial Services requires financial accounting records to be kept by an agent/agency for ____ year(s).

An insurance license can be revoked for all but which of the following?

Stock Insurance Companies are owned by ________________ who elect a board of directors which oversees the management of the company.

MEWAs _____ considered insurers by Florida Statute and _____ required to obtain a Certificate of Authority.

__________ is knowingly making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of, any oral or written statement, or any pamphlet, circular, article, or litera­ture, which is false or maliciously critical of, or deroga­tory to, any person and which is calculated to injure such person.

True or False. If an application fails to present a valid form of identification at the time of taking the 20-44 Personal Lines Agent exam that failure is considered a missed appointment and requires a new application and fee to the Department of Financial Services.

This health insurance ‘general provision’ establishes the period of time after a premium is due and not paid that an insurer must keep the policy in force and accept a late payment: 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all others.

An insurance policy which has a percentage hurricane deductible must compute the dollar amount of the deductible and display the deductible in exact dollar amounts. If Robby has a policy which covers his $300,000 Home and has a 2% hurricane deductible what exact dollar amount must appear on the Declarations Page?

Which of the following is true regarding personal lines property insurance hurricane deductibles?

Which of the following regarding Wind Mitigation and Wind Mitigation discounts are correct? (select as many as apply)

True or False? All property insurance policies issued in Florida must provide coverage for the peril of Sinkholes (statutory requirement).

Typical Fungi limits are _______ for each covered loss and ______ for the policy period.

In Florida the HO-6 Condo policy is required to have a minimum of _______ for the Additional Coverage of Loss Assessment.

Most basic property insurance policies state that direct losses will be settled based on the _______________ of the property at the time of the loss, but not more than the amount required to repair or replace (and subject, of course, to the dollar limit stated in the policy).

_______________ market is the standard market that most insurance policies are purchased in.

Surplus lines policies must be ‘exportable’ to be sold in Florida; which if any of the following are eligibility requirements of a surplus lines policy for export.

The Appraisal condition in a policy is used to resolve differences between the insured and insurance company when there is dispute as to the _____________ in a claim.

John purchased an Automobile Insurance policy thirty days ago with Acme Insurance Company; which if any of the following are reasons John can cancel the policy?

Sam has filed a property claim with his insurance company and they have asked Sam to provide them with a Sworn Proof of Loss. Select all of the following which may be included in a Sworn Proof of Loss.

Sally has suffered a total loss on her 2010 Ford Fusion. Her insurance company is required to pay Sally the cost to replace the totaled vehicle…

Insurance companies ____ permitted on a ‘best effort’ basis to match quality, color, or size in the replacement of ‘adjoining areas’ when settling property insurance claims.

Sally Sugar lives in Georgia and wants to obtain a Florida 20-44 Personal Lines Agent license to sell automobile insurance in Georgia from her home. Can Sally obtain a 105192BW Personal Lines Agent license as described above? (select all that apply)

Which of the following is true?
Statement One: The replacement cost endorsement is an exception to the rule of indemnity.
Statement Two: Agreed valuation and stated value policies are not an exceptions to the rule of indemnity.

Homeowners Insurance companies are required to put an insured on formal notice of renewal, non-renewal, and/or cancellation; all of the following are correct EXCEPT:

Which, if any, of the following statements are correct?

Statement One: Insurance is not enforceable to support illegal purposes.
Statement Two: An insured cannot profit by intentionally damaging their own property for gain.

Which if either of the following statement regarding PAP PIP Endorsements are true?
Statement One: Extended Personal Injury Protection – Extends PIP medical benefits to 100% and work loss benefits to 80% – applicable to the named insured and family members only
Statement Two: Additional Personal Injury Protection – Increases the basic PIP benefit of $10,000 per person for additional amounts