Homeowners Insurance Quiz Questions And Answers

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  • 1/320 Questions

    According to F.S. 626.025 The purpose of insurance licensing is to ensure proper __________practices.

    • Education level
    • Resident verification
    • Background check
    • Consumer protection 
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About This Quiz

Do you know what's covered in your home insurance policy? There are some of the commonly asked homeowners insurance policy quiz questions and answers about which every homeowner should be aware before buying any property. These policies cover losses and damages to an individual's house and assets for your home. Take the quiz below and check what you know about the general insurance policies of typical homeowners. Shall we begin the quiz now? Best of luck to you!

Homeowners Insurance Quiz Questions And Answers - Quiz

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  • 2. 

    A newly licensed agent must complete how many hours of continuing education during their first CE period?

    • 24

    • 15

    • 19

    • 20

    Correct Answer
    A. 24
    Explanation
    A newly licensed agent must complete 24 hours of continuing education during their first CE period. This requirement ensures that agents stay updated with the latest industry regulations, policies, and practices. By completing these hours, agents can enhance their knowledge and skills, enabling them to provide better service to their clients. Continuing education is crucial for professionals in any field to stay current and adapt to changes in their industry. Therefore, the correct answer is 24.

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  • 3. 

    Which of the following is not a valid deductible for hurricane in the dwelling program?

    • $500

    • 2%

    • $250

    • 5%

    Correct Answer
    A. $250
    Explanation
    The given options are all possible deductibles for a hurricane in the dwelling program except for $250. This means that $250 is not a valid deductible for hurricanes in the program.

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  • 4. 

    An insurance company that is licensed to do business in Florida is called:

    • A licensed insurance company

    • An authorized insurance company

    • An unauthorized insurance company

    • A captive insurance company

    Correct Answer
    A. An authorized insurance company
    Explanation
    An insurance company that is licensed to do business in Florida is called an authorized insurance company. This means that the company has obtained the necessary legal permission and approval from the state of Florida to operate and provide insurance services to its residents. Being authorized ensures that the company meets the required standards and regulations set by the state, providing assurance to customers that they are dealing with a legitimate and regulated insurance provider.

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  • 5. 

    Which of the following best illustrates negligence as it applies to insurance?

    • The insured intentionally sets a fire

    • An insured looks down to change the radio station and hits another vehicle in the rear 

    • Hitting someone who makes you mad

    • Breaking a window to get into your car because you locked the keys inside

    Correct Answer
    A. An insured looks down to change the radio station and hits another vehicle in the rear 
    Explanation
    Negligence in insurance refers to the failure to exercise reasonable care, resulting in harm or damage to others. In this scenario, the insured's action of looking down to change the radio station while driving and subsequently hitting another vehicle from behind illustrates negligence. This is because the insured failed to exercise reasonable care while operating their vehicle, which resulted in an accident and potential harm to others.

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  • 6. 

    What health insurance policy provision dictates that policies provide for a period during which they will remain in force after the premium due date if unpaid?

    • Elimination period

    • Grace period

    • Free look

    • Reinstatement

    Correct Answer
    A. Grace period
    Explanation
    A grace period is a provision in health insurance policies that allows a certain period of time after the premium due date for the policyholder to make the payment. During this period, the policy remains in force, and the policyholder is still covered by the insurance. This provision is designed to provide a buffer for policyholders who may have difficulty making the payment on time, ensuring that they have continued coverage even if they miss the deadline.

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  • 7. 

    All of the following are insureds under the Personal Liability Policy EXCEPT: 

    • The named insured

    • A foster child living with the insured

    • The neighbor's child staying with the insured for a week

    • The insured's mother-in-law who lives at the residence

    Correct Answer
    A. The neighbor's child staying with the insured for a week
    Explanation
    The neighbor's child staying with the insured for a week is not considered an insured under the Personal Liability Policy. The policy typically covers the named insured, which refers to the person who purchased the insurance, as well as their immediate family members living in the same household. Additionally, foster children living with the insured and the insured's mother-in-law who lives at the residence would also be considered insureds under the policy.

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  • 8. 

    What health insurance policy provision states that if the insured becomes totally disabled, premiums are waived but the coverage remains in force?

    • Waiting period

    • Fee look

    • Elimination period

    • Waiver of premium

    Correct Answer
    A. Waiver of premium
    Explanation
    The correct answer is "waiver of premium." This provision in a health insurance policy states that if the insured becomes totally disabled, they do not have to pay premiums anymore, but their coverage remains in force. This ensures that the insured can continue to receive the benefits of the policy even if they are unable to work due to disability.

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  • 9. 

    All of the following are types of adjusters EXCEPT:

    • Public

    • Independent

    • Trial 

    • Company

    Correct Answer
    A. Trial 
    Explanation
    The question asks for the type of adjuster that is NOT included in the given options. The options provided are Public, Independent, Trial, and Company. Out of these options, Trial is the only type of adjuster that is not commonly recognized or mentioned in the field of adjusters. Public adjusters work on behalf of policyholders, independent adjusters work for insurance companies on a contract basis, and company adjusters are employed directly by insurance companies.

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  • 10. 

    Someone who holds property of others for a special purpose and then returns it at some future time is called:

    • A bailee

    • A storage facility

    • A warehouse 

    • A pawn shop

    Correct Answer
    A. A bailee
    Explanation
    A bailee is someone who holds the property of others for a special purpose and then returns it at some future time. This term is commonly used in legal and contractual contexts, where a person or entity is entrusted with the temporary custody and care of someone else's belongings. A bailee has a duty to exercise reasonable care and is responsible for returning the property in the same condition as when it was received. This term is often used in situations such as bailments, where one party temporarily entrusts their property to another for safekeeping or transportation.

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  • 11. 

    According to F.S. 627.744 a vehicle inspection requires the following to be checked with the exception of which one?

    • Taking a physical imprint of the vehicle identification number of the vehicle or otherwise recording the vehicle identification number

    • Recording the presence of accessories required by the commission to be recorded

    • Recording the original color of the vehicle

    • Recording the locations of and a description of existing damage to the vehicle

    Correct Answer
    A. Recording the original color of the vehicle
    Explanation
    According to F.S. 627.744, a vehicle inspection requires several checks, including taking a physical imprint or recording the vehicle identification number, recording the presence of required accessories, and recording the locations and description of existing damage to the vehicle. However, it does not require recording the original color of the vehicle.

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  • 12. 

    To be eligible for coverage in the FWCJUA (Workers Compensation Underwriting Association), the employer must have been unable to obtain coverage from at least how many carriers, and must not be indebted for any previous unpaid WC premiums?

    • 3

    • 5

    • 4

    • 2

    Correct Answer
    A. 2
    Explanation
    To be eligible for coverage in the FWCJUA, the employer must have been unable to obtain coverage from at least two carriers and must not be indebted for any previous unpaid WC premiums. This means that the employer must have been rejected by two insurance carriers and must not have any outstanding unpaid workers' compensation premiums.

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  • 13. 

    All of the following describe a binder EXCEPT:

    • Can be oral or written

    • Cannot be cancelled

    • Places insurance into effect prior to policy issuance

    • Affords the same coverage as the policy

    Correct Answer
    A. Cannot be cancelled
    Explanation
    A binder is a temporary agreement that provides insurance coverage until a formal policy is issued. It can be oral or written, places insurance into effect before the policy is issued, and affords the same coverage as the policy. However, a binder can be cancelled, which means that it is not a correct description of a binder.

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  • 14. 

    Which of the following is not a type of insurance that can be transacted with a "general lines" insurance license?

    • Health insurance

    • Marine insurance

    • Life insurance

    • Surety

    Correct Answer
    A. Life insurance
    Explanation
    A "general lines" insurance license allows an individual to transact various types of insurance, such as health insurance, marine insurance, and surety. However, life insurance is not included in the types of insurance that can be transacted with a "general lines" insurance license.

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  • 15. 

    Which of the following is considered an "employee"?

    • Commissioned real estate agent

    • Independent contractor

    • Part time employee working 10 hours per week

    • Unpaid volunteers

    Correct Answer
    A. Part time employee working 10 hours per week
    Explanation
    A part-time employee working 10 hours per week is considered an "employee" because they have a formal employment agreement with an employer, even though their working hours are limited. They receive compensation for their work and are subject to certain employment rights and benefits. On the other hand, commissioned real estate agents and independent contractors work on a contractual basis and have more independence in their work arrangements. Unpaid volunteers, on the other hand, do not receive any compensation for their services and are not considered employees.

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  • 16. 

    All of the following are penalties for non-compliance with the Florida Financial Responsibility law EXCEPT:

    • Owner is responsible for damages up to 10/20/10

    • Have your car impounded

    • Suspension of driver's license

    • Suspension of vehicle registration

    Correct Answer
    A. Have your car impounded
    Explanation
    Non-compliance with the Florida Financial Responsibility law can result in several penalties, including the owner being responsible for damages up to 10/20/10, suspension of driver's license, and suspension of vehicle registration. However, having your car impounded is not listed as a penalty for non-compliance with this law.

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  • 17. 

    What is known as an insurer formed under the laws of this state?

    • National company

    • Domestic company

    • State company 

    • Local company 

    Correct Answer
    A. Domestic company
    Explanation
    A domestic company is known as an insurer formed under the laws of a specific state. This means that the company is incorporated and operates within the jurisdiction of that state. It is not a national or state company, as those terms do not specify a specific state of formation. A local company refers to a business that operates within a specific locality or region, which may or may not be limited to a single state.

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  • 18. 

    F.S. 626.561 states that all premiums return premiums, or other funds belonging to insurers or others received by an agent, insurance agency, customer representative, or adjuster are trust funds received by the licensee in what capacity?

    • Caretaker

    • Trustee

    • Fiduciary

    • Transactional 

    Correct Answer
    A. Fiduciary
    Explanation
    According to F.S. 626.561, all premiums, return premiums, or other funds received by a licensee (agent, insurance agency, customer representative, or adjuster) are considered trust funds. The funds are received in a fiduciary capacity, meaning that the licensee is entrusted with the responsibility to handle and manage these funds in the best interest of the policyholders and the insurer. As a fiduciary, the licensee is expected to act in a trustworthy and ethical manner, ensuring the proper handling and disbursement of the funds.

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  • 19. 

    F.S. 627.701 states that an insurer must offer several different options of hurricane deductible based on the amount of hurricane losses. What are the hurricane deductible options offered?

    • $500, 2%, 5%, 10%

    • $500, 2.5%, 7%, 13%

    • $1,000, 2% 5%, 10%

    • $1,500, 4.5%, 10%, 15%

    Correct Answer
    A. $500, 2%, 5%, 10%
  • 20. 

    What coverage provided in Auto policies in the state of Florida provides coverage for the insureds own injuries on a first-party basis, without regard to fault?

    • Personal Injury Liability

    • Personal Injury Protection

    • Immediate Injury Protection

    • Liability Injury Coverage

    Correct Answer
    A. Personal Injury Protection
    Explanation
    Personal Injury Protection (PIP) coverage in auto policies in the state of Florida provides coverage for the insured's own injuries on a first-party basis, without regard to fault. PIP coverage is mandatory in Florida and is designed to provide immediate medical coverage for the insured and their passengers in the event of an accident. It covers medical expenses, lost wages, and other related costs. This coverage is important as it ensures that individuals can receive necessary medical treatment regardless of who is at fault for the accident.

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  • 21. 

    Which of the following is the best definition of risk as related to insurance?

    • Chance of financial loss or gain?

    • Perils insured against

    • Speculation of financial gain

    • Chance of financial loss

    Correct Answer
    A. Chance of financial loss
    Explanation
    The best definition of risk as related to insurance is the chance of financial loss. Insurance is designed to protect individuals or organizations from potential financial losses that may occur due to unforeseen events or circumstances. By understanding and assessing the risk of financial loss, insurance companies are able to provide coverage and compensation to policyholders in the event of such losses.

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  • 22. 

    Which of the following best describes the Employee Theft coverage in an unendorsed Commercial Crime Coverage Form?

    • Position schedule

    • Name schedule

    • Occupation schedule

    • Blanket

    Correct Answer
    A. Blanket
    Explanation
    The Employee Theft coverage in an unendorsed Commercial Crime Coverage Form is described as "Blanket." This means that the coverage applies to all employees of the insured without the need for specifying individual positions, names, or occupations. It provides a broad and general coverage for any potential theft committed by any employee within the insured organization.

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  • 23. 

    All of the following are types of property that can be covered under a Personal Articles Floater EXCEPT:

    • Firearms

    • Cameras

    • Silverware

    • Golfer's equipment

    Correct Answer
    A. Firearms
    Explanation
    Firearms can be covered under a Personal Articles Floater, so they are not excluded from the types of property that can be covered. Cameras, silverware, and golfer's equipment are all examples of property that can be covered under a Personal Articles Floater.

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  • 24. 

    All of the following are considered employment EXCEPT: 

    • 4 part time employees at a shoe shop

    • A farm with 5 full time employees

    • A business with 6 persons over age 65 working

    • A police officer in Orlando

    Correct Answer
    A. A farm with 5 full time employees
    Explanation
    A farm with 5 full-time employees is not considered employment because the question asks for examples of employment, and a farm is not typically considered a place of employment. While the farm may have employees, it is more commonly seen as a business or a place of agricultural production rather than a traditional employment setting.

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  • 25. 

    The FAJUA is composed of:

    • The top four companies writing auto insurance in Florida

    • All companies licensed to write auto insurance in Florida

    • A selected group of carriers handpicked by the DFS

    • A group of carriers desiring to be included

    Correct Answer
    A. All companies licensed to write auto insurance in Florida
    Explanation
    The correct answer is all companies licensed to write auto insurance in Florida. This means that the FAJUA is composed of every insurance company that has been granted a license to provide auto insurance in the state of Florida.

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  • 26. 

    Since most policies are said to be conditional contracts the  ______________ of the insurer to perform may be conditioned upon the insured satisfying certain conditions.

    • Action

    • Obligation

    • Decision

    • Conditional response

    Correct Answer
    A. Obligation
    Explanation
    Most policies are considered conditional contracts, meaning that the insurer's obligation to perform is dependent on the insured meeting certain conditions. In other words, the insurer is only obligated to fulfill their part of the contract if the insured satisfies the specified conditions. Therefore, "obligation" is the most appropriate term to complete the given sentence.

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  • 27. 

    The applicant of a Customer Service Representative License must be a United States citizen or legal alien who possesses work authorization from the United States Bureau of citizenship and Immigration Services and is a bona fide resident of this state and will actually reside in the state at least ___________ months out of the year.

    • 10

    • 6

    • 9

    • 5

    Correct Answer
    A. 6
    Explanation
    The applicant of a Customer Service Representative License must be a United States citizen or legal alien who possesses work authorization from the United States Bureau of citizenship and Immigration Services and is a bona fide resident of this state and will actually reside in the state at least 6 months out of the year. This means that the applicant must be a citizen or legal alien with work authorization, and they must be a resident of the state for at least 6 months out of the year. This requirement ensures that the applicant has a strong connection to the state and is committed to living and working there.

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  • 28. 

    According to F.S. 626.921 all surplus lines agents shall, as a condition of holding a license as a surplus lines agent in this state, be deemed to be members of what office's association?

    • Surplus Agent Office

    • Florida Surplus Lines Service Office

    • Surplus Insurance Agency Establishment

    • Surplus Lines Agent Office

    Correct Answer
    A. Florida Surplus Lines Service Office
    Explanation
    According to F.S. 626.921, all surplus lines agents are required to be members of the Florida Surplus Lines Service Office association as a condition of holding a license in the state.

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  • 29. 

    What type of policies provide benefits for only a single illness such as cancer?

    • Deadly disease

    • Final expense

    • Dread disease

    • Terminal disease

    Correct Answer
    A. Dread disease
    Explanation
    Dread disease policies provide benefits for only a single illness such as cancer. These policies are specifically designed to offer coverage and financial support in the event of a specific critical illness or disease. Unlike other types of policies that provide broader coverage for various medical conditions, dread disease policies focus on a particular illness, ensuring that policyholders receive dedicated benefits and support for that specific illness.

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  • 30. 

    All of the following are ways that liability limits can be expressed EXCEPT:

    • Single Limit

    • Aggregate Limit

    • Statutory Limit

    • Split Limit

    Correct Answer
    A. Statutory Limit
    Explanation
    Liability limits can be expressed in various ways, such as single limit, aggregate limit, and split limit. However, statutory limit is not a way to express liability limits. Statutory limit refers to the maximum amount of liability set by law, which is not a method of expressing liability limits but rather a legal requirement.

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  • 31. 

    Under the Flood Policy, which of the following is the loss settlement provision for building damage to single family, owner occupied, primary residence dwellings?

    • ACV

    • Replacement cost

    • Valued policy

    • Market value

    Correct Answer
    A. Replacement cost
    Explanation
    The loss settlement provision for building damage to single family, owner occupied, primary residence dwellings under the Flood Policy is Replacement cost. This means that the policyholder will be reimbursed for the actual cost of replacing or repairing the damaged building, without deduction for depreciation. This ensures that the policyholder can fully restore their property to its pre-loss condition.

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  • 32. 

    Uninsured Motorist coverage under the Personal Auto Policy pays for which of the following?

    • Damage to the insured's car caused by a hit and run driver

    • Bodily injury to the insured caused by a hit and run driver

    • Injury to a pedestrian caused by the insured while driving his own car

    • Damage caused by the insured to a parked car that has no collision coverage

    Correct Answer
    A. Bodily injury to the insured caused by a hit and run driver
    Explanation
    Uninsured Motorist coverage under the Personal Auto Policy pays for bodily injury to the insured caused by a hit and run driver. This means that if the insured is injured by a driver who flees the scene and cannot be identified, their Uninsured Motorist coverage will provide compensation for their injuries. This coverage is important because it protects the insured in situations where the at-fault driver is uninsured or cannot be held accountable.

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  • 33. 

    After a loss has occurred which of the following options is not one of the steps that an insured must take?

    • Disclose of any other applicable insurance policies

    • Submit proof of loss when requested

    • Stop paying premiums

    • Comply with questioning under oath

    Correct Answer
    A. Stop paying premiums
    Explanation
    After a loss has occurred, an insured must disclose any other applicable insurance policies, submit proof of loss when requested, and comply with questioning under oath. However, stopping paying premiums is not one of the steps that an insured must take. This is because the payment of premiums is separate from the process of filing a claim and providing necessary information to the insurance company. The insured is still required to continue paying premiums even after a loss has occurred.

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  • 34. 

    What government official is in charge f the Department of Financial Services?

    • State Comptroller

    • Chief Financial Officer

    • Director of Insurance ervices

    • Director of Financial Services

    Correct Answer
    A. Chief Financial Officer
    Explanation
    The correct answer is Chief Financial Officer. The Chief Financial Officer is the government official who is in charge of the Department of Financial Services. They are responsible for overseeing and managing the financial operations and policies of the department. This includes budgeting, accounting, and financial planning. The Chief Financial Officer plays a crucial role in ensuring the department's financial stability and compliance with financial regulations.

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  • 35. 

    Who can a licensed agent not share commission with?

    • Customer service representative

    • Other agents appointed and licensed to write the same kind or kinds of insurance

    • Real estate agent

    • Non-resident agent

    Correct Answer
    A. Real estate agent
    Explanation
    A licensed agent cannot share commission with a real estate agent. This is because real estate agents and insurance agents operate in different industries and have separate licensing requirements. Sharing commission with a real estate agent would be a violation of industry regulations and could potentially lead to legal consequences.

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  • 36. 

    What type of health insurance covers fees of physicians for performing surgery, with a maximum amount payable for each procedure?

    • Hospital surgeon insurance

    • Accident insurance

    • Physicians coverage

    • Surgical expense insurance

    Correct Answer
    A. Surgical expense insurance
    Explanation
    Surgical expense insurance is a type of health insurance that covers the fees of physicians for performing surgery, with a maximum amount payable for each procedure. This type of insurance specifically focuses on covering the expenses related to surgical procedures, ensuring that individuals are protected financially in case they require surgery. It provides coverage for the fees charged by surgeons and other medical professionals involved in the surgical process, helping individuals manage the high costs associated with surgery.

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  • 37. 

    What type of insurance provides coverage for expenses including loss of income arising from accidents?

    • Accident insurance

    • Hospital expense

    • Hospital indemnity

    • Dread disease

    Correct Answer
    A. Accident insurance
    Explanation
    Accident insurance provides coverage for expenses, including loss of income, that arise from accidents. This type of insurance is specifically designed to protect individuals from the financial burden caused by unexpected accidents. It helps cover medical expenses, hospital stays, rehabilitation costs, and may also provide a portion of the insured person's income if they are unable to work due to the accident. Accident insurance is an important coverage to have to ensure financial stability in the event of an accident.

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  • 38. 

    A device which enables the insurer to bring action for recovery against a third party in its own name alone is called:

    • Release 

    • Settlement agreement

    • Apportionment and consideration

    • Assignment and subrogation agreement

    Correct Answer
    A. Assignment and subrogation agreement
    Explanation
    An assignment and subrogation agreement is a device that allows an insurer to bring legal action for recovery against a third party in its own name alone. This agreement transfers the insurer's rights and claims to the third party, allowing them to pursue legal action on behalf of the insurer. It enables the insurer to recover any losses or damages incurred due to the actions of the third party.

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  • 39. 

    What is an oral or written statement providing immediate insurance protection, valid for a specified period, designed to provide temporary coverage until a policy can be issued or denied.

    • Temporary liability coverage

    • Binder

    • Insurance contract

    • Provisional coverage

    Correct Answer
    A. Binder
    Explanation
    A binder is an oral or written statement that provides immediate insurance protection for a specified period. It is designed to offer temporary coverage until a policy can be issued or denied. A binder is a provisional agreement between the insured and the insurer, providing temporary liability coverage until a formal insurance contract is established.

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  • 40. 

    What art of the insurance contract must show who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies?

    • Named perils

    • Declarations

    • Named insureds

    • Contract provisions

    Correct Answer
    A. Declarations
    Explanation
    The declarations section of an insurance contract provides important information such as who is insured, what property or risk is covered, when and where coverage is effective, and how much coverage applies. This section serves as a summary of the key details of the insurance policy and helps the insured understand the scope and limitations of their coverage.

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  • 41. 

    What document often in affidavit form states details and amounts claimed as well as offers evidence by the insured to prove entitlement to collect the amount claimed from the insurer.

    • Loss Settlement

    • Sworn Loss Receipt

    • Proof of Loss

    • Record of Loss

    Correct Answer
    A. Proof of Loss
    Explanation
    A proof of loss is a document, often in affidavit form, that is used by an insured individual to provide details and amounts claimed for a loss. It serves as evidence to prove entitlement to collect the amount claimed from the insurer. This document is crucial in the claims process as it provides the necessary information and supporting evidence to support the insured's claim for reimbursement or compensation.

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  • 42. 

    Discounts provided for homeowners insurance premiums based on roof features, opening protections, and building codes is known as what type of discounts?

    • Construction appraisal 

    • Windstorm discount

    • Wind mitigation

    • Hurricane damage discount

    Correct Answer
    A. Wind mitigation
    Explanation
    Wind mitigation refers to the discounts provided for homeowners insurance premiums based on roof features, opening protections, and building codes. These discounts are given to homeowners who have taken measures to protect their homes from wind damage, such as installing hurricane shutters, impact-resistant windows, or a wind-resistant roof. Wind mitigation helps to reduce the risk of wind-related damage to the home, which in turn reduces the insurance company's liability and allows them to offer lower premiums to homeowners who have implemented these protective measures.

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  • 43. 

    What provisions on a health insurance policy allows the insured to return the policy within a certain number of days and receive a full refund?

    • Grace period

    • Free look

    • Waiver of premium

    • Elimination period

    Correct Answer
    A. Free look
    Explanation
    The provision on a health insurance policy that allows the insured to return the policy within a certain number of days and receive a full refund is called the "free look" period. This period gives the insured an opportunity to review the policy terms and conditions after purchasing it. If they are not satisfied with the policy, they can cancel it within the specified time frame and receive a full refund of the premiums paid.

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  • 44. 

    Under the loss settlement provision in the HO-3 policy, building losses on a properly insured structure will be paid at:

    • ACV less deductible

    • ACV without deductible

    • Replacement cost less deductible

    • Replacement cost without deductible

    Correct Answer
    A. Replacement cost less deductible
    Explanation
    Under the loss settlement provision in the HO-3 policy, building losses on a properly insured structure will be paid at the replacement cost less deductible. This means that the insurance company will reimburse the policyholder for the cost of replacing the damaged or destroyed property, minus the deductible amount. This ensures that the policyholder is able to restore their property to its pre-loss condition without bearing the full financial burden.

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  • 45. 

    Personal Liability includes all of the following EXCEPT:

    • Coverage at the residence

    • Coverage for non-business activities

    • Coverage for damage to reputation

    • Coverage for Medical Payments to Others

    Correct Answer
    A. Coverage for damage to reputation
    Explanation
    Personal liability insurance provides coverage for bodily injury or property damage caused by an individual. It typically includes coverage for accidents that occur at the insured person's residence, coverage for non-business activities, and coverage for medical payments to others. However, it does not provide coverage for damage to reputation. This means that if someone's reputation is harmed due to the actions of the insured person, personal liability insurance will not cover any resulting damages or legal expenses.

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  • 46. 

    All of the following are penalties for not complying with the No-Fault Law EXCEPT:

    • Personally liable for benefits under the No-Fault law 

    • Confiscation of auto

    • Loss of limited tort exemption

    • Suspension of auto registration and drivers' license

    Correct Answer
    A. Confiscation of auto
    Explanation
    The No-Fault Law is a system in which each party's insurance company pays for their own medical expenses and damages in the event of a car accident, regardless of who is at fault. The penalties for not complying with this law include being personally liable for benefits, losing limited tort exemption, and having one's auto registration and driver's license suspended. However, confiscation of the auto is not mentioned as a penalty for non-compliance with the No-Fault Law.

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  • 47. 

    A dollar amount the insured must pay on each loss before the insurance company pays rest of the loss is known as what?

    • Deductible

    • Franchise fee

    • Straight premium

    • Coinsurance

    Correct Answer
    A. Deductible
    Explanation
    A deductible is the amount of money that the insured person must pay out of pocket before their insurance company will cover the remaining cost of a loss. It acts as a form of self-insurance, encouraging policyholders to be responsible for a portion of the costs and reducing the number of small claims. The deductible amount can vary depending on the insurance policy and is typically agreed upon when the policy is purchased.

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  • 48. 

    In a bond, who guarantees the performance of the principal to the obligee?

    • Guarantor

    • Fidelity

    • Principal 

    • Surety

    Correct Answer
    A. Surety
    Explanation
    A surety guarantees the performance of the principal to the obligee in a bond. This means that if the principal fails to fulfill their obligations, the surety will step in and fulfill them instead. The surety acts as a form of insurance for the obligee, providing them with assurance that they will be compensated if the principal fails to meet their obligations.

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  • 49. 

    If a licensee has their appointment terminated how many months do they have to be reappointed before their license is terminated? 

    • 18

    • 24

    • 36

    • 48

    Correct Answer
    A. 48
    Explanation
    If a licensee has their appointment terminated, they have 48 months to be reappointed before their license is terminated. This means that they have a period of 48 months to regain their appointment and continue practicing as a licensee.

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Quiz Review Timeline (Updated): Nov 13, 2024 +

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  • Current Version
  • Nov 13, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 06, 2020
    Quiz Created by
    Serenity33147

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