3-20 Question Bank

________ is ONLY the chance of financial loss.

Which of the following are true regarding insurance policy ENDORSEMENTS?

True or False? Binders may be written or oral?

True or False? Insurance contracts require the person insured to have an insurable interest at the time of loss.

Insurance contracts are “personal contracts” where the focus is on?

What does it mean “insurance contracts are contracts of adhesion”?

Exceptions to the rule of indemnity include ALL but which of the following?

In layman’s terms proximate causation in an occurrence is –

True or False? A direct loss flows as a consequence of an indirect loss.

Johanna’s laptop was stolen and a brand new one cost $1,200. Her insurance company pays her $1,200. What is this an example of?

True or False? The purpose of the valued policy law is to prevent the over-sale of insurance to consumers.

The Acme Corporations has five warehouses at one location and they insure the total of them all for $2,000,000.  Is this SPECIFIC or BLANKET insurance coverage on the buildings?

Sallie Summers has call Little Italy Pizza to order two pizza for delivery. Little Italy has taken her order and advised the two pizzas will be delivered within thirty (30) minutes or their FREE.

All of the following are elements of a contract EXCEPT?

A(n) __________ is an express act or indication that demonstrates an agreement to the terms of an offer in a manner required by the offer so that a binding contract is formed.

__________ _________ is when two parties have agreed upon something and are prepared to enter into a contract.

Quality Painting and Tile has agreed to paint the First Baptist Church of Gainesville. Quality will provide all of the materials and labor as agreed between the parties and First Baptist will pay Quality Painting and Tile $2,500. What do we legally call the promise to paint the church and the church’s promise to pay the contractor?

Keith has contracted with Jimmy “Knuckles” Calhoun paying him $75 to burn down Mrs. Johnson’s newly erected toolshed. By all accounts the toolshed is very ugly but the real issue is that it blocks Keith’s view of the community lake (and Mrs. Johnson didn’t even ask Keith for permission). Oh my, Jimmy has taken the $75 and run off but he did not burn down Mrs. Johnson’s toolshed as agreed. Can Keith sue Jimmy for either the performance of the contract or a refund of his $75?

True or False? The insured may assume that the insurance policy conforms to the application and is under no duty to read the policy to see whether it does in fact conform.

Which of the following are true regarding insurance policy ENDORSEMENTS?

True or False? Binders may be written or oral?

The ___________ ____________ broadly define the coverages given under the policy.

Insurance contracts are “personal contracts” where the focus is on?

What does it mean “insurance contracts are contracts of adhesion”?

Exceptions to the rule of indemnity include ALL but which of the following?

True or False? Insurance contracts require the person insured to have an insurable interest at the time of loss.

________ is ONLY the chance of financial loss.

In layman’s terms proximate causation in an occurrence is –

True or False? A direct loss flows as a consequence of an indirect loss.

Vickie Lester’s home was hit by lightning and has been completely destroyed by an ensuing fire.

Johanna’s laptop was stolen and a brand new one cost $1,200. Her insurance company pays her $1,200. What is this an example of?

Mr. Tig Nickerman’s Renters Policy covered his personal property on an actual cash value basis. Mr. Nickerman’s television was damaged by a lightning strike and the television is considered a total loss. The television was five years old and a new one comparable to what Tig owned cost $1,800. If the usable lifespan of a television is ten years how much will Tig receive from his insurance company if he has a $500 Deductible on his Renters Policy?

True or False? The purpose of the valued policy law is to prevent the over-sale of insurance to consumers.

When the insured and insurer agree to the value of the underlying insured property utilizing bills of sale or appraisals at the time the insurance is purchased.

Alice Sweet of Better Baked Goods by Alice Sweet (BBGAS) has suffered a water loss to her business. The loss was substantial damaging all of BBGAS’ flooring, cabinets, and considerable damage to the first two feet of drywall throughout her entire bakery. Alice carries $300,000 of Building coverage with an 80% Coinsurance Provision; the reconstruction cost/value of the baker is $425,000. How much will Alice receive from her insurance company for her claim?

Alice Sweet of Better Baked Goods by Alice Sweet (BBGAS) has suffered a water loss to her business. The loss was substantial damaging all of BBGAS’ flooring, cabinets, and considerable damage to the first two feet of drywall throughout her entire bakery; the amount of damage has been calculated at $125,000. Alice carries $300,000 of Building coverage with an 80% Coinsurance Provision; the reconstruction cost/value of the baker is $425,000. How much will Alice receive from her insurance company for her claim?

Hammers and Nails Hardware Store was broken into but nothing was taken. Unfortunately between the breakin and a great amount of vandalism Hammers and Nails suffered $38,500 in damage. Hammers and Nails Hardware carries $400,000 of Building coverage with an 80% Coinsurance Provision; the reconstruction cost/value of the baker is $500,000. How much will Hammers receive from their insurance company for the claim?

The Acme Corporations has five warehouses at one location and they insure the total of them all for $2,000,000.  Is this SPECIFIC or BLANKET insurance coverage on the buildings?

Liability insurance policies contain an insuring agreement which essentially state that the insurer will…

___________ liability is liability imputed to a party as a result of ultra-hazardous activities undertaken by or products produced by that party that exposes the public to such a degree of harm that no degree of care provides a defense to the imputed party.

Under PURE COMPARATIVE NEGLIGENCE, if you are 50% at fault in an accident what percent of your damages can you collect from the other party that was also 50% at fault in the accident?

All of the following are general duties of the insured following a loss EXCEPT?

True or False? All policies provide that any changes to the policy must be made by the insurer, in writing.

In the event that all applicable policies claim to be “excess” then each policy will pay based upon its ________share to all applicable coverage.

True or False? The policy that is “primary” must exhaust all of its applicable limits before other insurance policies apply.

Liberalization is a policy provision which states that if the insurer adopts a revision to the insurance policy which would _______ coverage without additional premium within some period of time prior to the policy period (i.e., 60 days) or during the policy period, the insured receives the benefit of such broadened coverage.

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

True or False? Under the APPRAISAL CONDITION, agreement by any two of the three appraisers is considered binding.

Jimmy’s truck was severely damaged in a hail storm. Jimmy did not like the insurer’s estimate of damage. He parked his car in his agent’s parking lot demanding to be paid for the entire value of the truck.

An insurance company may a deny a claim for which, if any, of the following?

True or False? A warranty is considered part of the insurance policy.

Misrepresentations, omissions, concealment of facts, and incorrect statements shall not prevent a recovery under the policy or contract unless:

True or False? Cancellation conditions in general allow the insurance company to cancel at any time.

If a non-renewal is for a personal or commercial residential property insurance policy the company is:

The amount of contents necessary to satisfy the “CONTENT” requirement to demonstrate an insured occupancy is?

Exclusions state what is not _______ by the insurance policy either reducing what is _____________ or precluding it altogether.

All of the following are obligations of the insurance company EXCEPT?

All of the following are required per the Mortgagee Clause EXCEPT?

Which of the following is/are correct as regards the Proof of Loss condition in an insurance policy?

In the event that an insured and insurer do not agree on the amount of loss in a claim:

True or False? Subrogation upholds the principle of indemnity.

Which of the following regarding TRIA’s creation are true (if any)?

True or False? The FCRA mandates that anyone can dispute incomplete or inaccurate information in their credit file.

The two primary Gramm Leach Bliley requirements for insurance companies are?

The Claims Investigation involves ALL but which of the following?

What is the first step in the claims handling process?

A _______ is an assertion of a right demanding a remedy or relief either as a matter of contract or law.

Jack notices his neighbor stores flammable liquids by his furnace which will surely lead to a spectacular fire some day thereafter Jack gets the idea to insure his neighbor’s home.

This policy section limits in whole or part a recovery from specific types of losses and/or exclusions for coverage for certain types of property.

Most claims departments contact requirement for newly filed claims is?

The purpose of insurance is to _________ the insured for first-party property loss and/or liability claims made against the insured by third-party claimants for property damage or injury.

Which Cause of Loss form and which Valuation Method would result in the highest payout for a first-party insurance property loss?

Which if any of the following statements are true?

Statement I: policies with broad coverages have many exclusions.
Statement II: policies with narrow coverage have few exceptions.

Settlement option where the claimant is paid for damages “up to a specific date”; the claim remains open subject to any payments for supplemental injury or damages.

Settlement option where the claims payment for property damage is paid to the claimant; the claim stays open to address any bodily injury claims.

Your insured has suffered a loss compensable by the Crime policy form. The insured has a “Loss Sustained” form and is reporting a loss which occurred prior to the inception of the current policy. There has been continuous coverage by the insured. Will his claim be paid?

Your insured has suffered a loss compensable by the Crime policy form. The insured has a “Discovery” form and is reporting a loss which occurred prior to the inception of the current policy. There has been continuous coverage by the insured. Will his claim be paid?

The Crime policy Loss Sustained Form covers…

I. The Loss Sustained Crime coverage form will cover a loss which occurred prior to its inception if reported during the policy term.

II. The Loss Sustained Crime coverage form will cover a loss which occurred prior to its inception if  there was no interruption between the previous policy term and the current policy.

Which, if any, of the above captioned statements are true?

I. The Crime policy is primary over any other recoverable insurance.

II. The Crime policy covers property of the named insured, held by the named insured, or for which the named insured is legally liable.

Which, if any, of the above captioned statements are correct?

The Crime policy covers….

The Crime form’s valuation is?

Exclusions in the Boiler and Machinery include all BUT which of the following?

Which of the following are included as insurable “objects”?

Insurable “objects” include the following:

The territories for standard Aircraft Liabiilty coverage is?

Admitted Aircraft Liability Coverage covers?

Medical Payments Coverage covers injuries irrespective of _______________ for anyone entering, exiting, or in the aircraft.

Hangar Keepers coverage covers the insured’s liability for damage to aircraft of others held for all but which of the following?

Aircraft coverage is excluded if the aircraft is not registered under a standard category airworthiness certificate by the ___________________.

The Commercial Builders Risk Coverage Form terminates?

John wants to purchase a Personal Articles Floater to cover his professional musical equipment.

All of the following items are eligible for coverage under the PAF covering silverware EXCEPT:

All of the following items are eligible for coverage under the PAF covering furs EXCEPT:

All of the following items are DAMAGE EXCLUSIONS in the PAF covering Stamp and Coin collections EXCEPT:

Specific classes of property (i.e. cameras, fine arts, jewelry) can be covered in a _________________.

All of the following items are eligible for coverage under the PAF covering Fine Arts EXCEPT:

True or False? Fine Arts can only be covered on a blanket basis.

Property covered on the PAF are covered on a ____________________________________ .

True or False? Golfer’s equipment can only be covered on a blanket basis.

What does “limited cooking” mean regarding BOP eligibility?

You have received a phone call from the president of the local Savings and Loan asking for a quote on a BOP.

You have received a phone call from an amusement park owner asking for a quote on a BOP….

You are taking an application for a restaurant which meets the requirement for “limited cooking”.  Are they eligible for BOP coverage?

I. Mercantile, wholesalers, service, and processing risks are INELGIBLE for the BOP

II. Mercantile, wholesalers, service, and processing risk are INELIGIBLE for the CPP

Which, if any, of the above captioned statements are correct?

The BOP will cover….

Which of the following is an eligible exposure for a Business Owners Policy?

All BUT which of the following are specifically EXCLUDED from BOP eligibility?

I. The BOP’s liability coverage applies on a per occurrence basis.

II. The BOP covers property in the care, custody, and control of the insured for which the
insured is legally liable.

Which, if any, of the above captioned statements are correct?

I. The BOP’s liability coverage applies on an aggregate basis.

II. The BOP does not cover property in the care, custody, or control of the insured (even if the insured is legally liable).

Which, if any, of the above captioned statements are correct?

The BOP’s Fire Legal Liability coverage covers….

By FEMA definition, a covered flood loss can be caused by ALL but which of the following?

By FEMA definition, a covered flood loss can be caused by ALL but which of the following?

What is determined in the REGULAR PROGRAM detailed study?

All of the following must be met for a structure to meet the requirements of an eligible building EXCEPT?

The Preferred Risk Policy (PRP) is available in all of the following flood zones EXCEPT?

Which, if any, of the below captioned statements are correct?

I. Subrogation can be waived if a written waiver is exercised prior to loss

II. Subrogation can be waived after a loss if given to another insured, tenant of the insured, related business of the insured.

Building coverage in the Commercial Property Insurance policy includes:

The farm exposure covers?

In the Farm Policy the Livestock Coverage form covers?

In the Farm Policy the Livestock Coverage form covers?

In the Farm Policy, silos, barns, and fences are covered by coverage?

In the Farm Policy Coverage E covers?

The Cause of Loss Forms include:

I. Basic
II. Broad
III. General

The Basic Form Cause of Loss perils include?

The Special Form Cause of Loss form EXCLUDES?

The Commercial Property Coverage Form applies to which if any of the following?

The Extra Expense Coverage Form has a ____ hour waiting period.

The Commercial Builders Risk Coverage Form terminates?

Florida Law defines a Mobile Home as a structure transportable in one or more sections, which is eight  body feet or more in width and which is built on an integral chassis and designed to be used as a ____________.

Which coverage protects a mobile homeowner against wear and tear or breakdown to covered dwellings, fixtures, or appliances?

All but which of the following are Mobile Home Insurance rating factors? (chose as many as apply)

True or False? Windstorm coverage cannot be remove from a Mobile Home Insurance Policy. ​​​​​​​

If a Mobile Homeowner does not want to purchase coverage for the Contents/Personal Property in their Mobile Home what must they do?

True or False? The HO-6 policy covers personal property owned by an “insured” while it is anywhere in the world.

Coverage D – Loss of Use coverage pays up to…

Which of the following are covered under a Unit Owner’s policy?

Which of the following are covered under a Unit Owner’s policy?

The maximum limit available for an Association covered by the RCBAP is ___________ multiplied by the number of units, or the actual replacement replacement cost, whichever is less. .

Building losses are paid on a(n) ___________________ basis under the RCBAP if the buildings are covered to at least eighty percent (80%) of their reconstruction value.

HO-6 Condominium policies are required to provide Loss of Use in an amount not less than _________.

718.111 requires all Condominium Associations boards to adequately insure Association property as determined by an independent insurance appraisal at least once every _____ months.

True or False? Per 718.111 all Condominium property as originally installed by the original builder or replacement of like kind and quality is covered by the Master Policy.

True or False? Mobile Homes are eligible for the Homeowners insurance program.

By definition “an Insured” in the Homeowners insurance policy include(s):

True or False? Partnerships, estates, trust, and corporations are eligible as a named insured in the Homeowners insurance policy.

True or False? The HO4 policy is a Renters policy; the HO4 policy does not apply to an owner-occupant.

Which of the following construction types is the most like to burn down the quickest?

The insured must be offered the option to purchase ALL but which of the following hurricane deductibles?

Changes to hurricane deductibles in a policy can be made:

True or False? Under Coverage A – Dwelling “construction materials and supplies” are covered if they are adjacent to the insured residence premises.

Coverage B – Other Structures covers ALL but which of the following?

Joe Brown-Smith calls you to file a claim for his recently deceased goldfish, Moby Dick. You advise Mr. Brown-Smith that his Homeowners policy covers:

Personal property owned by the insured and located at another residence premises is covered under the Homeowners policy up to:

If the insured is assessed by their Homeowners Association for damage to HOA property by a covered cause of loss what will be payable under “additional coverages” for Loss Assessment?

True or False? Catastrophic Ground Collapse is required by statute in all Florida personal lines policies.

True or False? Florida Statute requires policies which provide RCV to pay the full RCV without hold-back for depreciation.

The Homeowners Insurance policy defines “insured locations” as all BUT which of the following?

The Homeowners policy must state not only the Windstorm percentage deductible but must also provide the Windstorm deductible expressed in _________ terms.

True or False? Hurricane deductibles apply per occurrence; not on an annual basis.

The Dwelling Policy can insure all BUT which of the following:

True or False? The Dwelling policy has coverage for loss of Fair Rental Value or Additional Living Expenses depending on who lives in the home.

All of the following are covered in the Dwelling Fire policy under Coverage A- Dwelling EXCEPT:

True or False? Coverage C – Personal Property can be extended to guest and household servants if their property is in or on the dwelling premises.

True or False? Coverage D – Fair Rental Value requires that the insured dwelling be both damaged by a covered peril and be uninhabitable.

Coverage E – Additional Living Expenses compensates the insured for their additional expenses incurred to maintain their normal standard of living for:

True or False? In the DP-1 policy, the Other Coverage section does increase the limits of insurance.

All of the following are OTHER COVERAGES in the DP-1 policy EXCEPT:

True or False? Catastrophic Ground Collapse is a required peril in the DP-1 policy form by Florida statute.

True or False? Vandalism in the DP-1 policy form includes damage to building glass.

DP-1 policy conditions include a stipulation for losses involving other insurance on a:

True or False? Florida law requires a minimum or 45 days notice of a policy renewal.

All of the following are broad form perils EXCEPT:

True or False? The DP-2 covers building structures on a Replacement Cost basis.

All of the following are DP-2 “Other Coverages” EXCEPT?

In the Dwelling Fire policy forms the exposure to and from loss by THEFT may be?

Part D of the PAP provides coverage for electronic equipment with a limit of _______ for permanently installed equipment located in a spot not designed by the manufacturer for such equipment.

Your insured has had a one vehicle accident with a tree. The policy has Other Than Collision coverage with a $250 deductible and Collision coverage with a $500 deductible. The insured vehicle has $2,500 in damages how much will the insured collect after applying the correct coverage and deductible?

What types of electronic MEDIA are listed as “excluded” in Part D of the PAP?

The PAP ___________ Part D coverage if the covered auto is destroyed or confiscated by governmental or civil authorities.

Your insured in involved in a multi-vehicle accident. The policy has Other Than Collision coverage with a $500 deductible and Collision coverage with a $1,000 deductible. The insured vehicle has $7,500 in damages. How much will the insured collect after applying the correct coverage and deductible?

Exclusions under Part D Physical Damage include all BUT which of the following?

Your insured has had a one vehicle accident with a tree. Which coverage is the physical damage to the insured’s vehicle covered by?

Your insured, Victoria Dragon, had her vehicle broken into and several items were stolen. Ms. Dragon has filed a claim for her very expensive Excalibur Radar Detector.

Your insured has had a one vehicle accident with the roadbed. The policy has Other Than Collision coverage with a $250 deductible and no Collision coverage. The insured vehicle has $1,500 in damages how much will the insured collect after applying the correct coverage and deductible?

Your Covered Auto in the PAP is defined as:

True or False? Collision Coverage and Other Than Collision Coverage for a NEWLY ACQUIRED AUTO begins on the date the insured becomes the owner.

A collision with an animal is normally covered by which Physical Damage coverage?

As regards the PAP definition of NEWLY ACQUIRED AUTO:

The BAP insures which of the following exposures?

Your insured advises you they wish to have liability coverage for the use of any auto. Which symbol do you use for this blanket coverage?

Your insured advises you they wish to have liability coverage for all autos they own and they tell you that they change vehicles frequently throughout the year. Which symbol do you use for this flexible coverage?

True or False? Symbol 1 is used to designate “any auto”.

Which, if any, of the above captioned statements are correct?

I. In the BAP damage from a falling object or missile to an insured vehicle is treated under Comprehensive coverage.

II. Glass damages are defined as a Comprehensive peril.

Your commercial insured has struck a dog in a one vehicle accident which resulted in several thousand dollars of damage to her vehicle. What type of physical damage claim will she be filing?

In the BAP Comprehensive covered perils include:

In the BAP Comprehensive covered perils include:

Under Section III of the BAP insuring agreement, the company agrees to pay for ______ and _______ loss.

Which of the following perils are covered in the BAP’s Specified Causes of Loss coverage?

Which, if any, of the following perils are covered in the BAP’s Specified Causes of Loss coverage?

Mrs. Murser, your BAP insured has suffered a theft loss to two vehicles in her fleet. She has Specified Causes of Loss coverage on the vehicles. Are these losses covered?

Your BAP insured has suffered hail damage to his truck. He has Specified Causes of Loss coverage on the vehicle. Is the hail damage covered?