Homeowners Insurance Quiz Questions And Answers

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

Explanation

The purpose of insurance licensing is to ensure proper consumer protection practices. This means that individuals who are licensed to sell insurance are required to follow certain regulations and guidelines in order to protect consumers from fraudulent or unethical practices. Licensing helps to ensure that insurance agents and brokers have the necessary knowledge and skills to provide appropriate coverage and advice to consumers, and that they are held accountable for their actions.

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About This Quiz
Homeowners Insurance Quiz Questions And Answers - 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... see moreshould 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!
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2. A newly licensed agent must complete how many hours of continuing education during their first CE period?

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?

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

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

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

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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7. 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?

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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8. All of the following are types of adjusters EXCEPT:

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

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

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. Which of the following is considered an "employee"?

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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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?

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:

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?

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

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

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

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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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?

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. All of the following are considered employment EXCEPT: 

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

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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21. 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?

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

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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23. The FAJUA is composed of:

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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24. 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?

Explanation

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

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

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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27. 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?

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

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

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

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

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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32. 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.

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

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

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

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

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. Who can a licensed agent not share commission with?

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

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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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.

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?

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. Personal Liability includes all of the following EXCEPT:

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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42. 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?

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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43. 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.

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

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

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

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

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

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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49. Which of the following can a licensed agent share commissions with?

Explanation

A licensed agent can share commissions with a non-resident agent. This means that if a licensed agent and a non-resident agent work together on a transaction, they can divide the commission earned from that transaction between themselves. However, a licensed agent cannot share commissions with a car dealer or a real estate agent.

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50. In order for business personal property to be covered under the Building and Personal Property Coverage Form, it must be:

Explanation

The correct answer is "Located on or within 100 feet of the premises." This means that in order for business personal property to be covered under the Building and Personal Property Coverage Form, it must be either located within the building or within 100 feet of the premises. This allows for coverage of property that is not necessarily inside the building but is still in close proximity to the premises.

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51. F.S. 627.70131 states that upon an insurer's receiving a communication with respect to a claim the insurer shall within 14 calendar days review and acknowledge receipt of such communication. Under what circumstance is this notice not required?

Explanation

If a payment for the claim has already been made, the insurer does not need to provide a notice of acknowledgment. This is because the payment itself serves as confirmation that the insurer has received and reviewed the communication regarding the claim. The purpose of the notice is to acknowledge receipt and inform the claimant that their communication is being reviewed, but if the claim has already been paid, there is no need for further acknowledgment.

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52. Which of the following best describes an insureds position regarding coverage under the CGL policy when a product is manufactured in the U.S. and a claim occurs in Japan?

Explanation

The insured's position regarding coverage under the CGL policy when a product is manufactured in the U.S. and a claim occurs in Japan is that they will be covered if the suit is brought in the U.S., Canada, or Puerto Rico. This means that if a lawsuit is filed in any of these locations, the insured will have coverage under the CGL policy. The policy does not require the loss to happen within the U.S. or for the product to be on the insured's premises for coverage to apply.

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53. All of the following are considered to be examples of when work is complete EXCEPT:

Explanation

The given answer states that "Part of the work is complete and turned over to another contractor" is not considered an example of when work is complete. This means that when a portion of the work is finished and handed over to another contractor, it is not considered as the completion of the entire project. The other options provided in the question, such as work called for in the contract being complete, work done at multiple sites, and part of the work being put to its intended use, all indicate instances when work is considered complete.

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54. All of the following are duties of the insured after a loss EXCEPT: 

Explanation

The insured is not obligated to disclose information to the other party's attorney after a loss. This duty falls on the insured's own attorney, if they have one. The insured is responsible for reporting thefts to the police, cooperating with the company in claim settlement, and revealing any other applicable coverage.

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55. In the liability section of the Business Owners Policy, what is the aggregate limit for products coverage?

Explanation

The aggregate limit for products coverage in the liability section of the Business Owners Policy is twice the occurrence limit. This means that the total amount of coverage available for product-related liabilities is double the amount available for each individual occurrence.

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

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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57. Which of the following is not a benefit under Personal Injury Protection?

Explanation

Personal Injury Protection (PIP) is a type of insurance coverage that provides benefits to individuals who are injured in an accident. It typically covers medical expenses, work loss, and other related costs. In this case, the benefit that is not included under PIP is "Replacement services paid at 90%". This means that PIP does not provide coverage for the cost of hiring someone to perform household tasks or other services that the injured person is unable to do themselves due to the accident.

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58. All of the following types of ownership are eligible for a Personal Auto Policy EXCEPT:

Explanation

The Personal Auto Policy allows for various types of ownership, including being owned by an individual, being owned jointly by two or more related persons whether or not they are living together, and being owned jointly by a husband and wife. However, it does not cover vehicles owned jointly by unrelated persons, whether or not they are living together.

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59. Which of the following is an example of an instrumentality of transportation or communication?

Explanation

A television tower is an example of an instrumentality of communication because it is used to transmit television signals. It is a structure that supports antennas and other equipment necessary for broadcasting television signals to a wide area. Television towers play a crucial role in the communication industry by enabling the transmission of television programs to viewers' homes through the airwaves.

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60. According to F.S. 626.9541 which of the following options below does not qualify as false advertising?

Explanation

The options listed in the question all describe false advertising practices that are prohibited by F.S. 626.9541, except for "Informs clients of potential benefits of obtaining said insurance policy." This option does not involve any false or misleading statements, but rather provides information about the potential benefits of the insurance policy. Therefore, it does not qualify as false advertising.

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61. All of the following can be written under a single flood policy EXCEPT:

Explanation

A flood policy typically covers the dwelling, detached garage, and contents of a property. However, a detached shed is not typically included in a standard flood policy. Therefore, the correct answer is "Detached shed."

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62. In the Building and Personal Property Coverage Form, all of the following are considered building items EXCEPT:

Explanation

The Building and Personal Property Coverage Form covers various items that are considered part of a building. These include the structure itself, floor coverings, and refrigerating equipment. However, free-standing display cases are not considered building items because they can be easily moved or removed from the premises. Therefore, they are not covered under the building coverage form.

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63. If an employer who is not required to carry Workers' Comp purchases a policy and an employee is injured, the employer:

Explanation

If an employer who is not required to carry Workers' Comp purchases a policy and an employee is injured, the employer is obligated to furnish medical treatment or care. This means that even though the employer is not required to have Workers' Comp, by purchasing a policy, they have taken on the responsibility to provide medical treatment or care for any employee who gets injured. This ensures that the injured employee receives the necessary medical attention and care to recover from their injuries.

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64. What type of policy provides employers with claims-made coverage for liability arising out of claims for injury to an employee because of an employment-related offense.

Explanation

Employment-related practices liability insurance provides employers with claims-made coverage for liability arising out of claims for injury to an employee because of an employment-related offense. This type of policy protects employers from potential lawsuits and financial damages resulting from claims such as discrimination, wrongful termination, sexual harassment, or other employment-related offenses. It covers legal defense costs, settlements, and judgments, helping employers to mitigate the financial risks associated with these types of claims.

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65. What type of damages punish the wrongdoer for anti-social actions, rather than compensating for loss?

Explanation

Punitive damages are a type of damages that are awarded to punish the wrongdoer for their anti-social actions, rather than compensating for any loss. These damages are meant to deter and discourage similar behavior in the future by imposing a financial penalty on the defendant. They are typically awarded in cases where the defendant's actions were particularly egregious or showed willful misconduct. Punitive damages go beyond compensating the victim and aim to hold the wrongdoer accountable for their actions.

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66. According to F.S. 626.401 what document does an insurer need in order to transact insurance in the state of Florida?

Explanation

According to F.S. 626.401, an insurer needs a Certificate of Authority in order to transact insurance in the state of Florida. This document serves as proof that the insurer has met all the necessary requirements and regulations set by the state to conduct insurance business. It grants them the legal permission to operate and provide insurance services within Florida.

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67. What is known as an insurance contract?

Explanation

An insurance contract is commonly referred to as a policy. This document outlines the terms and conditions of the insurance coverage, including the type of coverage, premium amount, and duration of the policy. It serves as a legally binding agreement between the insurance company and the policyholder, providing financial protection against specified risks in exchange for the payment of premiums.

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68. Which of the following is not a qualification for obtaining a General Lines License?

Explanation

The given answer, "Six months 'all-lines' experience as a full-time employee," is not a qualification for obtaining a General Lines License. The other options, such as being a Florida resident, not being involved in "controlled business," and successfully completing a 200-hour department-approved course, are all qualifications required to obtain the license. However, having six months of "all-lines" experience as a full-time employee is not listed as a requirement.

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69. Which unique feature does boiler machinery coverage have that most insurance policies do not have?

Explanation

Boiler machinery coverage stands out from most insurance policies because it allows the representative to suspend coverage immediately upon discovering a dangerous condition during inspection. This unique feature ensures that the insurance company can mitigate potential risks and prevent further damage or accidents. This provision gives the representative the power to take prompt action and protect both the insured party and the insurance company's interests.

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70. All of the following describe insurable interest EXCEPT:

Explanation

Insurable interest refers to the financial or legal interest that a person has in the subject matter of an insurance policy, such as property or a person's life. It ensures that the person purchasing the insurance has a legitimate reason to protect against potential losses. The statement "Shows a similarity between insurance and wagering" is incorrect because insurable interest is a fundamental principle of insurance that distinguishes it from gambling or wagering. Unlike gambling, where individuals have no legitimate interest in the outcome, insurance requires a genuine financial or legal interest in the insured property or person.

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71. Which of the following does not trigger the Florida Financial Responsibility Law?

Explanation

The Florida Financial Responsibility Law is triggered by certain events that require drivers to provide proof of financial responsibility, such as having car insurance. Conviction of DUI, an accident involving bodily injury, and any accident where a vehicle must be removed by a wrecker are all events that would typically trigger this law. However, simply calling the police after an accident does not automatically trigger the law. It is possible to report an accident to the police without it resulting in the need to provide proof of financial responsibility.

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72. Voluntary throwing overboard of parts or cargo to save the vessel from sinking is called:

Explanation

Jettison refers to the act of voluntarily throwing overboard parts or cargo from a vessel in order to prevent it from sinking. This action is taken as a last resort to lighten the load and increase the chances of survival for the vessel and its crew. Jettisoning is a common practice in emergency situations at sea, where the safety of the vessel and its occupants takes precedence over the preservation of the cargo.

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73. Which of the following best describes a franchise deductible?

Explanation

A franchise deductible refers to the amount of loss that must be incurred before any payment is made by the insurance company. In this case, the correct answer states that no payment is made until the loss equals or exceeds the deductible amount, and then the loss is paid in full. This means that the insured party must bear the initial cost of the loss until it reaches or surpasses the deductible amount, at which point the insurance company will cover the remaining expenses.

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74. All of the following are true of a DP-1 EXCEPT:

Explanation

The given correct answer states that building losses are not covered on an "all risk" basis. This means that if there is any damage or loss to the building, it will not be covered by the insurance policy unless it falls under specific named perils or causes of loss that are explicitly listed in the policy. This is in contrast to the other statements which mention that building losses are paid at actual cash value (ACV), contents losses are paid at ACV, and lightning is a covered cause of loss.

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75. If an insurer wants to non-renew a Commercial Property policy, how many days notice must they give the insured?

Explanation

An insurer must give the insured 45 days' notice if they want to non-renew a Commercial Property policy. This allows the insured sufficient time to find alternative coverage or make necessary arrangements.

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76. Glenda's Card Shop has a Business Owners Policy with $1,000,000 for liability. The policy includes Products and Completed Operations coverage. The aggregate for this coverage is: 

Explanation

The correct answer is $2,000,000. The aggregate coverage for Products and Completed Operations is the maximum amount that the insurance policy will pay out for all claims combined during the policy period. In this case, Glenda's Card Shop has a Business Owners Policy with $1,000,000 for liability, and the aggregate coverage for Products and Completed Operations is $2,000,000. This means that if multiple claims are made against the business for products or completed operations, the insurance policy will cover up to $2,000,000 in total.

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77. All of the following are perils of the seas EXCEPT: 

Explanation

The correct answer is Fire. Fire is not considered a peril of the seas because it is not directly related to the natural elements or conditions of the sea. Wind, waves, and sinking are all perils that can occur at sea due to weather conditions or accidents. However, fire is typically caused by human factors such as electrical malfunctions or accidents, rather than being a direct result of the sea itself.

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78. What type of provision states a period of time between issuance and acceptance before sickness benefits begin?

Explanation

An elimination period is a type of provision that states a period of time between issuance and acceptance before sickness benefits begin. During this period, the insured individual is responsible for covering their own expenses. Once the elimination period has passed, the insurance policy will start providing sickness benefits.

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79. Which of the following is the definition of "safe burglary"?

Explanation

The definition of "safe burglary" is the taking of property by unlawful entry or exit with visible signs of forced entry. This means that in order for an act to be considered a safe burglary, it must involve the unlawful entry or exit of a safe, and there must be visible signs of forced entry, such as broken locks or doors. This definition excludes other forms of stealing or taking property, as well as acts that involve force or threat of bodily harm.

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80. Which of the following is not an eligibility requirement for the RCBAP flood policy?

Explanation

The eligibility requirements for the RCBAP flood policy include having one or more residential units, being located in a regular program community, and having 75% of the total area as residential. However, having 25% mercantile floor area is not a requirement for the RCBAP flood policy.

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81. According to F.S. 324.011 Operation of what law is triggered by an accident which involves: bodily injury, or property damage when a vehicle is rendered inoperative; or certain serious traffic violations such as driving under the influence and committing a felony with a motor vehicle?

Explanation

The correct answer is Financial Responsibility Law. According to F.S. 324.011, the Financial Responsibility Law is triggered by an accident that involves bodily injury, property damage when a vehicle is rendered inoperative, or certain serious traffic violations such as driving under the influence and committing a felony with a motor vehicle. This law requires individuals involved in such accidents to have proof of financial responsibility, typically in the form of liability insurance, to cover any damages or injuries caused.

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82. Which office has a responsibility in the area of insurance policy forms, rules and rates as well as the responsibility of approving the majority of forms before use and reviewing a companies rules and rates from time to time to ensure compliance with various provisions of Florida Law?

Explanation

The Office of Insurance Regulation is responsible for overseeing insurance policy forms, rules, and rates in Florida. They have the authority to approve most forms before they can be used and regularly review companies' rules and rates to ensure compliance with state laws. This office plays a crucial role in regulating and monitoring the insurance industry in Florida.

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83. Jim and Glenda go to the local branch of their bank for a home loan. The loan officer tells them that in order to qualify or the loan they must purchase insurance from the bank. This is an example of:

Explanation

The loan officer's requirement for Jim and Glenda to purchase insurance from the bank in order to qualify for the loan can be considered an example of coercion. Coercion refers to the act of using force or pressure to make someone do something against their will. In this case, the loan officer is using the requirement of purchasing insurance as a means to pressure Jim and Glenda into complying with their demands.

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84. A claim by a policyholder, insured or beneficiary directly against the insurer which issued the contract is called:

Explanation

A first party claim refers to a claim made by the policyholder, insured, or beneficiary directly against the insurer who issued the contract. This means that the individual who has entered into the insurance contract is making a claim for coverage or benefits directly to the insurance company. It is called a first party claim because the claim is being made by the first party involved in the contract, which is the policyholder or insured.

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85. What is a document which is attached to the policy and modifies or changes the original policy in some way?

Explanation

An endorsement is a document that is attached to the policy and modifies or changes the original policy in some way. It can add or remove coverage, amend policy terms, or make any other necessary adjustments to the policy. Endorsements are typically used to tailor the policy to the specific needs of the insured, providing flexibility and customization options.

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86. All of the following are supplementary payments under the Personal Auto Policy EXCEPT:

Explanation

The correct answer is $300 on bail bonds. This is because all the other options listed (release of attachment bonds, $200 per day loss of income, and interest on judgments) are examples of supplementary payments that may be covered under a Personal Auto Policy. However, $300 on bail bonds is not typically covered as a supplementary payment under this policy.

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87. According to F.S. 624.06 an insurer formed under the laws of any state district territory or commonwealth of the United States other that this state is known as what type of insurer?

Explanation

According to F.S. 624.06, an insurer formed under the laws of any state, district, territory, or commonwealth of the United States other than the current state is known as a foreign insurer.

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88. F.S. 627.827 defines a promissory note or other written agreement by which an insured promises or agrees to pay to, or to the order of a premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent in payment of premiums on an insurance contract, together with a service charge as authorized and limited by law. This promissory note is known as what?

Explanation

The correct answer is Premium Finance Agreement. This is because according to F.S. 627.827, a promissory note or written agreement in which an insured promises to pay a premium finance company the amount advanced under the agreement to an insurer or insurance agent, along with a service charge, is known as a Premium Finance Agreement.

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89. Which of the following is excluded from a Physicians, Surgeons and Dentists liability insurance policy?

Explanation

A Physicians, Surgeons, and Dentists liability insurance policy typically covers various forms of negligence or errors in medical treatment, such as failure to properly treat an injury, forgetting to remove clamps after surgery, and prescribing the wrong medication. However, criminal acts by a doctor, which involve intentional harm or illegal activities, are generally excluded from such policies. This is because insurance policies are designed to cover unintentional mistakes or negligence, not intentional wrongdoing. Therefore, criminal acts by a doctor would not be covered by a Physicians, Surgeons, and Dentists liability insurance policy.

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90. The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm or the failure to act as a prudent person would have acted under similar circumstances is known as what?

Explanation

Negligence refers to the failure to exercise the necessary level of care that the law expects in order to prevent others from being exposed to an unreasonable risk of harm. It involves not acting in a prudent manner that a reasonable person would have acted in similar circumstances. Negligence can lead to legal consequences if it causes damage or injury to others.

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91. Which of the following best describes how PIP relates to other coverages?

Explanation

PIP stands for Personal Injury Protection, which is a type of insurance coverage that pays for medical expenses and lost wages in the event of an accident. The given answer states that PIP is primary to all coverages except Workers' Comp. This means that in the case of an accident, PIP coverage will be the first to pay out for medical expenses and lost wages, except when the accident occurs in the workplace and is covered by Workers' Comp insurance. In such cases, Workers' Comp insurance will be the primary coverage.

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92. Under the Dwelling Program forms, vandalism is not covered after the building has been vacant for how many days?

Explanation

Under the Dwelling Program forms, vandalism is not covered after the building has been vacant for 60 days. This means that if a building remains vacant for more than 60 days, any damage caused by vandalism will not be covered by the insurance policy. This provision is in place to encourage property owners to take necessary precautions to prevent vandalism and ensure that their buildings are occupied or regularly checked to minimize the risk of damage.

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93. Which of the following is considered an "employee" as it relates to Worker's Compensation Insurance?

Explanation

Part-time employees working 10 hours per week are considered "employees" as it relates to Worker's Compensation Insurance. Worker's Compensation Insurance is designed to provide benefits to employees who are injured or become ill due to their work. While independent contractors, commissioned real estate agents, and unpaid volunteers may also perform work, they are not classified as employees and may not be covered by Worker's Compensation Insurance. However, part-time employees working a minimum of 10 hours per week are typically considered eligible for coverage under this insurance.

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94. Fraud by the master or crew at the expense of the ship owner with the intention of reaping gains is called:

Explanation

Barratry refers to the fraudulent actions committed by the master or crew of a ship, with the aim of benefiting themselves at the expense of the ship owner. This can include activities such as theft, smuggling, or intentionally causing damage to the ship. The term "barratry" specifically pertains to fraudulent acts committed by those in charge of the ship, distinguishing it from other forms of fraud or illegal activities that may occur on board.

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95. A baker employed at John's bakery suffered a skateboarding injury while he was on vacation and required a leg brace. Back at work his leg brace gives way and the employee fell and injured his head on a table. Would the head injury be considered a work-related injury when it comes to Workers Compensation? Why or Why not? 

Explanation

The head injury would not be considered a work-related injury because baking was not a major contributing cause of the injury. The fact that the employee fell and injured his head on a table suggests that the fall itself was the primary cause of the injury, not the work-related activity of baking.

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96. A peril that is unique to policies covering dry cleaners is: 

Explanation

Confusion of goods is a peril that is unique to policies covering dry cleaners. This refers to situations where the dry cleaner accidentally mixes up or misplaces customers' clothing, leading to confusion and potential loss or damage of the items. This peril is specific to dry cleaners because they handle multiple customers' garments at once, increasing the likelihood of mix-ups or misplacements.

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97. The program which is a selected group of hospitals and medical practitioners in a given area that have joined together in an effort to reduce medical costs is called:

Explanation

A PPO (Preferred Provider Organization) is a program where a selected group of hospitals and medical practitioners in a given area have joined together to provide healthcare services at reduced costs. This program allows individuals to choose their healthcare providers from a network of preferred providers, and also provides coverage for out-of-network providers, although at a higher cost. PPOs typically offer more flexibility and choice compared to other healthcare programs like HMOs (Health Maintenance Organizations) or POS (Point of Service) plans.

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98. After a company has been licensed to do business in the state their financial condition is examined periodically by which office?

Explanation

After a company has been licensed to do business in the state, their financial condition is examined periodically by the Office of Insurance Regulation. This office is responsible for overseeing and regulating insurance companies to ensure they are financially stable and capable of meeting their obligations to policyholders. They conduct regular examinations to assess the financial health of these companies and to protect consumers from potential financial risks.

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99. Which of the following examples of losses covered by an HO-3 is also covered by an HO-2?

Explanation

Smoke is an example of a loss covered by both an HO-3 and an HO-2 policy. This means that if smoke damage occurs to the insured property, both types of policies would provide coverage for the resulting losses.

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100. John's catering company catered an event. The next day many of the attendees became ill and were diagnosed with food poisoning. Which liability exposure from his Commercial General Liability Policy would provide coverage for such an event?

Explanation

The correct answer is products and completed operations exposure. This liability exposure from John's Commercial General Liability Policy would provide coverage for the event where many attendees became ill and were diagnosed with food poisoning. This exposure covers any claims arising from the products (food) that John's catering company provided at the event, as well as any claims arising from completed operations (the catering service itself). Therefore, if the food served at the event caused the attendees to become ill, this exposure would provide coverage for any resulting claims.

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101. John's car has been damaged by Jane with approximately $2,000 in damage. John receives $1,500 from his own insurance company ($2,000 damages - $500 deductible = $1,500). By receiving that payment from his insurance company John has now transferred his right against he other party to his insurance company. The transfer of John's rights to his insurance company, a policy condition commonly found in property and liability policies, is known as what?

Explanation

Subrogation is the correct answer because it refers to the transfer of rights from an insured party to their insurance company after they have been compensated for a loss. In this scenario, John received $1,500 from his insurance company, which means he transferred his right to seek compensation from the other party to the insurance company. Subrogation is a common policy condition in property and liability insurance policies.

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102. What must be exhausted before the excess policy will apply?

Explanation

The excess policy will only come into effect after all other insurance policies have been exhausted. This means that the individual or entity must first utilize all available insurance coverage before the excess policy will provide additional coverage. Once all other insurance options have been used up, the excess policy will then kick in to provide further protection or coverage.

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103. Addition of Hangarkeeper's Liability coverage is normally part of the airport liability policy by what means?

Explanation

The addition of Hangarkeeper's Liability coverage is typically done by attaching a hangarkeepers liability endorsement to the airport liability policy. This endorsement specifically adds the Hangarkeeper's Liability coverage to the policy, providing protection for the hangarkeeper against liability claims arising from damage to aircraft or property of others while in their care, custody, or control.

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104. Another name for a "cost plus" plan is:

Explanation

A "cost plus" plan is another term for a retrospective rating plan. In this type of plan, the insurance premium is determined based on the actual costs incurred by the insured, rather than a predetermined rate. The premium is calculated retrospectively, taking into account the actual claims experience and expenses of the insured. This allows for adjustments to be made based on the actual costs, providing a more accurate reflection of the risk and cost associated with the insured.

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105. When the cost to salvage and recondition a vessel exceeds its value, it is known as:

Explanation

Constructive total loss refers to a situation where the cost of salvaging and reconditioning a vessel is higher than its actual value. In such cases, it is not economically feasible to repair the vessel, and it is considered a loss. This term is commonly used in marine insurance to determine whether a vessel should be considered a total loss or not.

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106. Insurance is a contract of indemnity. Which of the following best illustrates the concept of indemnity?

Explanation

The concept of indemnity in insurance refers to the principle of restoring the insured to the same financial position they were in before the loss occurred. Paying the insured the actual cash value of a television that is 3 years old best illustrates this concept. By reimbursing the insured for the current value of the television, the insurance company is providing indemnity by compensating for the loss without overcompensating or undercompensating the insured.

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107. The cost to replace an item of property at the time of loss less an allowance for depreciation is known as what?

Explanation

The correct answer is actual cash value. This term refers to the cost of replacing an item of property at the time of loss, taking into account depreciation. It represents the value of the item in its current condition, considering factors such as age, wear and tear, and obsolescence. It is often used in insurance claims to determine the amount of compensation that will be provided for a damaged or lost item.

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108. Which of the following situations requires nonresidents to comply with the Florida No-Fault Law?

Explanation

Nonresidents are required to comply with the Florida No-Fault Law if they have a vehicle in Florida for more than 90 days of the preceding 365 days. This means that if a nonresident owns a vehicle and keeps it in Florida for more than 90 days within a year, they must follow the regulations outlined in the Florida No-Fault Law. This law includes requirements for personal injury protection (PIP) coverage and other provisions that nonresidents must adhere to if they meet this criterion.

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109. While closing for the day at the bakery the deposit bag with the cash from that day mysteriously disappeared. What provides coverage for this?

Explanation

The correct answer is "Inside the Premises - Theft of Money and Securities" because this coverage provides protection for the theft of money and securities that occurs inside the premises of the bakery. Since the deposit bag with the cash disappeared while closing for the day, it can be considered a theft that happened within the premises.

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110. What loss valuation is also known as "new for old"?

Explanation

"Replacement cost value" is the correct answer because it refers to the valuation method in which the insurance company pays the cost of replacing damaged or lost property with a new one, regardless of the item's actual cash value or depreciation. This method ensures that the insured party receives a new item of similar kind and quality, without considering its age or condition. It is often referred to as "new for old" because it provides compensation for the full replacement cost.

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111. In Liability policies, what is generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

Explanation

Liability policies typically define an "occurrence" as an accident, which can include continuous or repeated exposure to harmful conditions. This means that an event or situation that causes damage or injury, whether it happens once or over a period of time, would be considered an occurrence under the policy. The term "occurrence" is used to encompass a wide range of accidents or incidents that may result in liability claims.

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112. As it pertains to homeowners property insurance, Coverage C "Personal Property", which of the followings is listed as an exclusion?

Explanation

The correct answer is Portable Electronic Equipment. In homeowners property insurance, Coverage C typically covers personal property. However, certain items may be excluded from coverage, and in this case, portable electronic equipment is listed as an exclusion. This means that if any damage or loss occurs to portable electronic equipment, it may not be covered by the insurance policy.

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113. In a Business Auto Coverage form, if you wanted to apply coverage to specifically described vehicles, which symbol would you use?

Explanation

In a Business Auto Coverage form, Symbol 7 is used to apply coverage to specifically described vehicles. This symbol is also known as the "specifically described autos" symbol. It allows the policyholder to list the specific vehicles that they want to be covered under the policy. This symbol is commonly used when a business has a fleet of vehicles and wants to insure only those vehicles that are specifically listed.

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114. Which office is in charge of examining the qualifications of insurance companies doing business in Florida, examining the financial conditions of said companies and also approves rules, rates and forms?

Explanation

The Office of Insurance Regulation is responsible for examining the qualifications of insurance companies operating in Florida, as well as assessing their financial conditions. Additionally, this office has the authority to approve rules, rates, and forms related to insurance operations in the state.

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115. What insures an individual for financial losses which arise out of the person's responsibilities to others imposed by law or contract.

Explanation

Liability insurance provides coverage for financial losses that occur due to an individual's legal or contractual responsibilities to others. This type of insurance protects the insured person from potential claims or lawsuits brought against them by third parties. It covers various areas such as bodily injury, property damage, and personal or advertising injury. Liability insurance is crucial for individuals who may face legal liabilities in their personal or professional lives, ensuring that they are financially protected in case of any legal obligations or claims.

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116. When the basic liability limits provided by a policy are insufficient for an insured's needs, two coverage forms are widely used to provide the additional amounts needed. What forms are these?

Explanation

Umbrellas and excess liability policies are used when the basic liability limits provided by a policy are not enough for an insured's needs. These coverage forms provide additional amounts of liability coverage. Umbrella policies provide coverage that extends beyond the limits of the underlying policies, while excess liability policies provide coverage that kicks in once the limits of the underlying policies have been exhausted. Both forms help ensure that the insured has sufficient coverage in case of a liability claim.

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117. In a commercial condo situation where the building form and the unit owner's form both cover the same property in a loss, which of the following applies?

Explanation

In a commercial condo situation where both the building form and the unit owner's form cover the same property in a loss, the association form is considered primary and the unit owner's form is considered excess. This means that the association form will be responsible for covering the loss up to its policy limits, and any remaining amount will be covered by the unit owner's form.

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118. If Rita did not own a vehicle but wanted to purchase a policy to cover her for liability, medical payments, and uninsured motorist while she drove someone else's car, what coverage would she purchase?

Explanation

Rita does not own a vehicle but still wants to be covered for liability, medical payments, and uninsured motorist while driving someone else's car. In this case, she would purchase Named Non-Owner Coverage. This type of coverage is specifically designed for individuals who do not own a vehicle but still want to have insurance coverage while driving other people's cars. It provides liability, medical payments, and uninsured motorist coverage for the named insured (Rita) while operating a vehicle that is not owned by her.

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119. What is the basic limit for loss assessment in the homeowners policy?

Explanation

The basic limit for loss assessment in the homeowners policy is $1,000. This means that in the event of a covered loss to a shared or common area of a homeowners association, the policy will provide coverage up to $1,000 for the insured's portion of the assessment. This limit ensures that the insured is protected financially in case of any loss or damage to the shared property.

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120. What type of clause will apply to resolve disagreements between insurer and insured as to the amount payable for a claim?

Explanation

An arbitration clause is a type of clause that will apply to resolve disagreements between the insurer and insured as to the amount payable for a claim. This clause refers to the process of resolving disputes outside of court, where a neutral third party (arbitrator) is appointed to make a binding decision. It is commonly used in insurance contracts to provide a fair and efficient mechanism for resolving conflicts between the parties involved.

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121. All of the following are coinsurance options under the Business Income Coverage Form EXCEPT: 

Explanation

This question is asking for the coinsurance options under the Business Income Coverage Form that are NOT included. The correct answer is 75%. This means that 75% is not one of the coinsurance options available under the Business Income Coverage Form.

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122. If John has a right to collect damages from the negligent party in a claim, but elects to be covered through his own insurance, he has effectively transferred his rights against the other party to his insurer. What is this practice known as?

Explanation

When John chooses to be covered by his own insurance instead of collecting damages from the negligent party, he is effectively transferring his rights to his insurer. This practice is known as subrogation. Subrogation allows the insurer to step into the shoes of the insured and pursue the negligent party to recover the amount paid for the claim.

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123. Charging an applicant for a specific ancillary coverage in addition to the cost of the auto insurance applied for without his consent is called:

Explanation

Sliding is the correct answer because it refers to the practice of charging an applicant for additional coverage without their knowledge or consent. This can be done by including the cost of the ancillary coverage in the overall price of the auto insurance policy, making it appear as if the applicant agreed to it. Sliding is considered unethical and illegal because it deceives the applicant and results in them paying for coverage they did not request or want.

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124. What agency provides regulatory oversight to banks credit unions finance companies and the securities industries?

Explanation

The Office of Financial Regulation provides regulatory oversight to banks, credit unions, finance companies, and the securities industries. This agency is responsible for ensuring that these financial institutions comply with laws and regulations to protect consumers and maintain the stability of the financial system. The Securities and Exchange Commission is a separate agency that focuses specifically on regulating the securities industry. The Office of Insurance Regulation and the Department of Financial Regulation may have oversight responsibilities in their respective areas but are not the primary agency for the industries mentioned in the question.

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125. The Cause of Loss - Basic Form provides coverage for all of the following perils with the exception of which one?

Explanation

The Cause of Loss - Basic Form provides coverage for perils such as riot, sprinkler leakage, and lightning. However, it does not provide coverage for the peril of weight of ice, snow, or sleet. This means that if there is damage or loss caused by the weight of ice, snow, or sleet, the policyholder would not be covered under the Cause of Loss - Basic Form.

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126. The program which provides comprehensive health services to members for a prepaid fixed fee whose goal is preventive activity is called:

Explanation

HMO stands for Health Maintenance Organization. It is a program that offers comprehensive health services to members for a prepaid fixed fee. The main goal of HMOs is to focus on preventive activities and promote overall health and wellness. HMOs typically require members to choose a primary care physician who coordinates their healthcare and provides referrals to specialists when needed. This model aims to provide cost-effective and coordinated care to improve health outcomes.

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127. All of the following are characteristics of the FWCJUA EXCEPT:

Explanation

The FWCJUA, or the Florida Workers' Compensation Joint Underwriting Association, is a program that provides coverage for individuals who are unable to secure coverage in the voluntary market. It is designed to be self-supporting with actuarially sound rates, meaning that the premiums collected are expected to cover the costs of claims and administrative expenses. Employers receive a 30-day binder, which means that they are provided with temporary coverage while their application is being processed. However, it is not a requirement for the FWCJUA coverage to be denied by at least one standard carrier.

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128. What can be added to the Homeowners contract which provides coverage for watercraft which is excluded under the HO policy itself.

Explanation

A watercraft endorsement can be added to the homeowner's contract to provide coverage for watercraft that is excluded under the HO policy itself. This endorsement is an additional provision that modifies the terms and conditions of the policy to include coverage for watercraft. By adding this endorsement, the homeowner can ensure that their watercraft is protected and any potential losses or damages related to the watercraft are covered by the insurance policy.

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129. Which of the following best describes a "controlled" Inland Marine form?

Explanation

A "controlled" Inland Marine form refers to a standard provisions form that is developed and filed for uniform use. This means that there is a set form that all companies must use, ensuring consistency and uniformity in the coverage provided. This helps to streamline the process and make it easier for both insurers and insureds to understand and compare policies. It also ensures that there are no discrepancies or variations in coverage between different companies' forms.

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130. If John has an PAP with combined single limits of $300,000 and has an accident where he is at fault resulting in the other party suffering injuries totaling in $75,000 and the property damages totaling $150,000 how much would his policy cover?

Explanation

John's PAP (Personal Auto Policy) has combined single limits of $300,000. This means that the policy will cover up to $300,000 in total for bodily injury and property damage resulting from an accident. In this case, the other party suffered injuries totaling $75,000 and property damages totaling $150,000. Since the combined single limits of John's policy is $300,000, his policy will cover the full amount of the injuries ($75,000) and $150,000 of the property damages, totaling $225,000.

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131. All of the following are Coverage C - Personal Property exclusions EXCEPT:

Explanation

The correct answer is "Electronic wheel chair" because it is not excluded under Coverage C - Personal Property. The other options listed are exclusions under Coverage C - Personal Property. Property in an apartment regularly rented to others, business data, and family pets are all excluded from coverage.

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132. Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss is known as what?

Explanation

Salvage refers to damaged property that can be recovered, reconditioned, and sold to minimize the financial loss for an insurance company. It involves the process of retrieving and restoring items that have been damaged or deemed as a loss. The salvage value is the amount of money that can be obtained from selling the recovered property. This helps to offset the cost of the insured loss, making salvage an important aspect of insurance claims and risk management.

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133. Which of the following covers the liability of a common carrier for damage to property of others?

Explanation

The correct answer is Motor truck cargo policy. A motor truck cargo policy covers the liability of a common carrier for damage to property of others while it is being transported. This type of policy is specifically designed for carriers who transport goods using motor trucks. It provides coverage for any damage or loss that may occur to the cargo during transit, ensuring that the carrier is protected financially in case of any accidents or incidents that result in damage to the property being transported.

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134. Employee Theft is defined as:

Explanation

The correct answer is "Unlawful taking of property to the deprivation of the insured." This definition accurately captures the essence of employee theft, which involves the unauthorized taking of property belonging to the employer or insured party. It highlights the illegal nature of the act and emphasizes that it results in the loss or deprivation of the owner's property. The other options, such as any criminal act, any act of stealing, or armed robbery of an employee, do not specifically address the context of employee theft and are too broad or unrelated to the concept.

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135. Which of the following is not considered an owner of a "defined motor vehicle" under the No-Fault law?

Explanation

A lessee of a vehicle for 3 months is not considered an owner of a "defined motor vehicle" under the No-Fault law. The No-Fault law typically considers the legal title holder as the owner of the vehicle. However, a lessee of a vehicle for 3 months does not have legal title ownership of the vehicle, as they are only leasing it for a temporary period. Therefore, they are not considered an owner under the No-Fault law.

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136. Part D-Damage to Your Auto applies to all of the following EXCEPT:

Explanation

Part D-Damage to Your Auto applies to all vehicles listed on the declarations page, a rental car, and your neighbor's car which you borrowed only once and damaged when hitting a tree. However, it does not apply to a vehicle furnished to you by your employer. This means that if you are provided with a vehicle by your employer and it gets damaged, the coverage under Part D would not apply in this case.

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137. What is the personal residential dollar limit under a Citizens Property Insurance Corporation? 

Explanation

The personal residential dollar limit under a Citizens Property Insurance Corporation is $700,000. This means that the maximum amount of coverage provided for a personal residential property is $700,000.

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138. According to F.S. 626.8797 all Proof of Loss Statements must include the following statement: "Pursuant to s. 817.234, Florida Statutes, any person who, with the intent to injure, defraud, or deceive any insurer or insured, prepares, presents, or causes to be presented a proof of loss or estimate of cost or repair of damaged property in support of a claim under an insurance policy knowing that the proof of loss or estimate of claim or repairs contains any false, incomplete, or misleading information concerning any fact or thing material to the claim commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, Florida Statutes." This statement is known as what?

Explanation

The correct answer is "fraud statement". This is because the given statement includes a warning about the consequences of providing false or misleading information in a proof of loss statement, indicating that it is a statement aimed at preventing fraud.

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139. Supplementary Payments cover several areas of costs related to claims, and are payable in addition to the policy limits. In a CGL what is the amount reimbursed for cost of bail bonds for accidents or traffic law violations if they arise from use of a vehicle covered by the policy?

Explanation

Supplementary Payments in a CGL policy cover various costs related to claims, including the cost of bail bonds for accidents or traffic law violations arising from the use of a covered vehicle. The amount reimbursed for this specific cost is $250.

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140. In order to be written in Citizens Property Insurance Corp, who must certify on the application that no coverage was available from an authorized insurer within 15% of the Citizens rate?

Explanation

The applicant and producer must certify on the application that no coverage was available from an authorized insurer within 15% of the Citizens rate. This means that both the person applying for the insurance and the insurance producer must confirm that they have searched for coverage from other authorized insurers and found that none of them offer rates within 15% of the rate offered by Citizens Property Insurance Corp.

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141. An insurer has a responsibility to respond promptly after having received what?

Explanation

An insurer has a responsibility to respond promptly after having received a notice of claim. This is because a notice of claim is a formal communication from the insured party to the insurance company, informing them about a potential claim or loss. It is crucial for the insurer to promptly acknowledge and investigate the claim to fulfill their responsibility towards the insured party and provide timely assistance or settlement.

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142. If John, while helping Robert move to his new home, accidentally drops Robert's entertainment system and it is damaged beyond repair. It will cost $950 to replace it. Will John's HO-2 policy provide coverage?

Explanation

The correct answer is "Yes, it would be covered in full under section II (Damage to Property of Others)". This is because section II of the HO-2 policy provides coverage for damage to property of others, which includes situations where the insured accidentally damages someone else's property while it is under their custody, control, and care. In this case, John accidentally dropped and damaged Robert's entertainment system while helping him move, so the policy would provide coverage for the cost of replacing it.

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143. What type of health insurance policy is designed to provide indemnification to the insured for basic hospitalization expenses of room and board in the hospital, nursing care, laboratory fees, operating room, medical supplies and related items?

Explanation

Hospitalization expense insurance is a type of health insurance policy that is specifically designed to provide coverage for basic hospitalization expenses. This includes expenses such as room and board in the hospital, nursing care, laboratory fees, operating room costs, and medical supplies. This type of insurance policy aims to indemnify the insured by reimbursing them for these necessary expenses incurred during a hospital stay. Accident insurance, surgical expense insurance, and hospital indemnity insurance may provide coverage for other types of medical expenses, but they do not specifically focus on hospitalization expenses.

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144. The Building and Personal Property Coverage Form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. How many days must the building be vacant for the provision to apply?

Explanation

The Building and Personal Property Coverage Form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. This provision applies when the building has been vacant for 60 days.

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145. F.S. 627.706 states that a depression in the ground cover clearly visible to the naked eye is known as what?

Explanation

The correct answer is "catastrophic ground cover collapse." This is because F.S. 627.706 defines a depression in the ground cover that is clearly visible to the naked eye as a catastrophic ground cover collapse. This term specifically refers to a sinkhole activity that poses a significant risk to property and requires immediate attention.

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146. What is the purpose of the Extended Period of Indemnity option in the Business Income Coverage Form?

Explanation

The purpose of the Extended Period of Indemnity option in the Business Income Coverage Form is to increase the 30-day Extended Period of Indemnity grant up to 730 days. This means that the coverage for business income loss after a covered loss event is extended for a longer period of time, providing the insured with more financial protection and allowing them more time to recover and resume normal business operations.

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147. What is a class of bonds which guarantees an employee's honesty?

Explanation

A fidelity bond is a type of bond that guarantees an employee's honesty. It provides coverage for losses that occur due to fraudulent or dishonest acts committed by an employee. This bond is commonly used by employers to protect themselves against financial losses caused by the actions of their employees. By requiring employees to have a fidelity bond, employers can have peace of mind knowing that they are protected in case of any dishonest behavior by their employees.

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148. An insurance agent's error and omissions policy falls under what type of professional liability insurance form?

Explanation

The correct answer is "miscellaneous professions form". This is because an insurance agent's error and omissions policy is a type of professional liability insurance that covers errors, omissions, or negligence in the performance of professional services. The term "miscellaneous professions form" refers to a specific type of insurance policy that provides coverage for a wide range of professions that do not fall under a specific professional category. Therefore, it is the most appropriate category for an insurance agent's error and omissions policy.

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149. The following statement below are true regarding a DP-1 policy with the exception of which one?

Explanation

The given statement states that building losses are covered on an all-risk basis. This means that any damage or loss to the building is covered unless it is specifically excluded in the policy. However, the other statements mention that content losses are paid at an actual cash value basis, building losses are paid at an actual cash value basis, and lightning is one of the covered causes of loss listed. Therefore, the exception in this case is that building losses are not covered on an all-risk basis.

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150. The person who must be at least 15 years old, and who the insurance company agrees to indemnify when they enter into an insurance contract is known as what?

Explanation

The correct answer is "insured." The insured refers to the person who must be at least 15 years old and enters into an insurance contract with the insurance company. The insurance company agrees to indemnify or provide coverage to the insured in case of any covered losses or damages. The insured is the main beneficiary of the insurance policy and is protected by the terms and conditions outlined in the contract.

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151. Whose office is responsible for the licensing and oversight of insurance agents and agencies?

Explanation

The office responsible for the licensing and oversight of insurance agents and agencies is the Chief Financial Officer. This role typically has the authority to regulate and monitor the insurance industry, ensuring that agents and agencies comply with licensing requirements and adhere to industry regulations. The Chief Financial Officer's office plays a crucial role in maintaining the integrity and stability of the insurance market.

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152. Which of the following is not a way to purchase Uninsured Motorist coverage?

Explanation

An individual can purchase Uninsured Motorist (UM) coverage in several ways, including equal to their Bodily Injury limits, rejected, or with UM written non-stacked. However, purchasing UM coverage more than their Bodily Injury limits is not a valid option. This means that the coverage amount for UM cannot exceed the limits set for Bodily Injury coverage.

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153. What problems started in earnest in or about 1974 with the enactment of the Employee Retirement Income Security Act otherwise known as ERISA (29 U.S.C.A 1001, et seq)?

Explanation

The problems that started in earnest in or about 1974 with the enactment of ERISA were related to unauthorized health-insuring entities. ERISA was enacted to protect the rights and benefits of employees who participate in employee benefit plans, including health insurance plans. However, the implementation of ERISA also led to the emergence of unauthorized entities that offered health insurance coverage without proper authorization or regulation. These unauthorized health-insuring entities posed significant risks to individuals who purchased their insurance policies, as they were not subject to the same standards and regulations as authorized insurance agencies.

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154. Commercial Package Policies can combine 2 or more of the following coverages with the exception of which one?

Explanation

Commercial Package Policies can combine 2 or more of the following coverages, such as Boiler and Machinery, Pollution Liability, and Liquor Liability. However, Ocean Marine is the exception as it cannot be combined with the other coverages in a Commercial Package Policy.

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155. Actual Cash Value and Replacement Cost are two terms associated with which principle?

Explanation

The terms "Actual Cash Value" and "Replacement Cost" are both related to the principle of loss settlement. Loss settlement refers to the process of determining the amount of compensation that an insured party will receive in the event of a loss or damage to their property. Actual Cash Value refers to the value of the property at the time of the loss, taking into account depreciation. Replacement Cost, on the other hand, refers to the cost of replacing the damaged property with a new one of similar kind and quality. Therefore, both terms are directly associated with the principle of loss settlement.

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156. Extended PIP does which of the following?

Explanation

Extended PIP provides payment for lost wages at 80%.

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157. Which of the following does not describe the Citizens wind program?

Explanation

The Citizens wind program covers the perils of windstorm and hail, must be located in defined areas of designated counties, and covers properties in areas of the state deemed especially susceptible to windstorm. Therefore, the statement "Only available on specific types of property" does not describe the Citizens wind program.

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158. All of the following are covered under Personal and Advertising Injury EXCEPT:

Explanation

Personal and Advertising Injury coverage provides protection against claims arising from certain offenses committed during advertising activities or personal interactions. It typically includes coverage for false arrest, false imprisonment, wrongful entry or eviction, and libel and slander. However, bodily injury is not covered under Personal and Advertising Injury. Bodily injury coverage is typically provided under a separate liability coverage, such as General Liability Insurance. Therefore, the correct answer is bodily injury.

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159. While conceptually similar to the homeowners program, the business owners policy, provided an indivisible package of basically required coverages designed to meet the ordinary needs of certain classes of business which fall under 8 areas of eligibility. Which of the following is not one of those 8 areas?

Explanation

The correct answer is "Self-Storage facilities which provide outdoor storage of any type of motorized vehicles." This answer is not one of the 8 areas of eligibility for the business owners policy. The other options, including mercantile, wholesaler, service, or processing risk; offices and office condo associations; and convenience food stores with or without gasoline sales, are all included in the 8 areas of eligibility.

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160. The typical grace periods in health insurance for weekly, monthly, and all other premium payments is:

Explanation

The correct answer is 7/10/31. This means that the grace period for weekly premium payments is 7 days, for monthly premium payments is 10 days, and for all other premium payments is 31 days. This allows policyholders some flexibility in making their premium payments without facing immediate consequences or lapses in coverage.

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161. As it relates to commercial property insurance the Agreed Value Provision expiration date is found on which portion of an insurance policy?

Explanation

The Agreed Value Provision expiration date is found on the declarations page of an insurance policy. The declarations page provides important information about the policy, including the insured property, coverage limits, and policy period. This page is typically located at the beginning of the policy and serves as a summary of key details.

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162. All of the following are true of the Lawyers Professional Policy EXCEPT: 

Explanation

The Lawyers Professional Policy does not include coverage for paralegals.

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163. The limit on medical coverage in the Workers' Compensation policy is:

Explanation

The correct answer is "Unlimited." This means that there is no maximum limit on the medical coverage provided by the Workers' Compensation policy. This is beneficial for employees as it ensures that their medical expenses will be fully covered without any financial burden.

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164. When it comes to Workers Compensation premiums, what is another name for a cost plus plan?

Explanation

A retrospective rating plan is another name for a cost plus plan in Workers Compensation premiums. This plan allows the insurance company to adjust the premium based on the actual losses incurred by the employer during the policy period. It involves a review of the claims history and adjusts the premium accordingly, providing more accurate pricing based on the employer's experience.

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165. Which of the following is covered for liability under an HO-4?

Explanation

The HO-4 policy typically provides liability coverage for personal property damage or bodily injury caused by the insured person's actions. In this case, the borrowed 125hp outboard boat would be covered for liability under an HO-4 policy.

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166. Don has an HO-3 with $150,000 for Coverage A. How much Coverage D does he have?

Explanation

The standard coverage for Loss of Use (Coverage D) is usually a percentage of the Coverage A amount. This percentage can vary, but it's commonly around 20% of Coverage A.

In this case, Don has an HO-3 policy with $150,000 for Coverage A. Let's take Loss of Use coverage percentage of 20% for calculation:

Coverage D = Coverage A * Loss of Use Percentage Coverage D = $150,000 * 0.20 Coverage D = $30,000

So, Don has $30,000 in Coverage D for Loss of Use in his homeowners insurance policy.

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167. The Causes of Loss-Broad Form includes all of the basic perils plus some additional perils. Which of the following is one of those additional perils?

Explanation

The Causes of Loss-Broad Form includes all of the basic perils plus some additional perils. Falling objects is one of those additional perils. This means that if any objects fall and cause damage to the insured property, it would be covered under this policy.

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168. If John has a PAP whose limits re 10/20/10 what are the property damage liability limits?

Explanation

The property damage liability limits in John's PAP are $10,000.

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169. Of the options listed below, which one is not eligible for an HO-4 policy?

Explanation

The owner of a condo unit is not eligible for an HO-4 policy because condo owners typically need an HO-6 policy, which is specifically designed for condominiums. An HO-4 policy, also known as renter's insurance, is meant for individuals who are renting a home or apartment, not for owners of property.

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170. What are the two ways a carrier cnoffer the deductible to commercial residential properties?

Explanation

A carrier can offer the deductible to commercial residential properties either on a per event basis or on an annual basis. This means that the deductible can either be applied for each individual event or occurrence, or it can be applied once for the entire year. This allows the property owner to choose the option that best suits their needs and preferences.

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171. Rebating is allowed under certain conditions. All of the following are conditions EXCEPT:

Explanation

The correct answer is "Rebate schedule does not exceed 5% of the premium." This statement is incorrect because one of the conditions for rebating is that the rebate schedule should not exceed 5% of the premium. Rebating refers to the practice of giving back a portion of the premium to the insured as an inducement to purchase insurance. While the other conditions mentioned are valid, this particular condition is not one of them.

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172. The Department requires each adjusting firm and branches to designate a:

Explanation

The Department requires each adjusting firm and branches to designate a primary adjuster. This indicates that there needs to be one individual who is primarily responsible for handling the adjusting tasks within the firm or branch. This person is likely to have the necessary expertise and authority to make decisions and carry out the necessary adjustments.

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173. What is the total coverage amount (basic amount + additional amount) that a single family dwelling can receive under the NFIP?

Explanation

A single family dwelling can receive a total coverage amount of $250,000 under the NFIP. This includes both the basic amount and any additional amount.

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174. If John's General Liability Policy has been in force for 183 days but the company wishes to cancel John's policy the General Liability Policy Cancellation Condition states hat the company must give how many days prior notice?

Explanation

The General Liability Policy Cancellation Condition states that the company must give 45 days prior notice if they wish to cancel John's policy. This means that if the company decides to cancel the policy, they must inform John at least 45 days before the cancellation takes effect.

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175. In regards to Commercial Property Coverage there are three such forms: (1) Basic (2) Broad and (3) Special. All of these forms in their general exclusions, exclude which coverage?

Explanation

All three forms of Commercial Property Coverage, namely Basic, Broad, and Special, exclude coverage for fungus. This means that any damage or loss caused by fungus will not be covered under these forms of insurance.

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176. All of the following are duties and functions of the Department of Financial Services EXCEPT:

Explanation

The Department of Financial Services is responsible for various duties and functions related to financial services. These include investigating charges of unethical conduct, supervising claim activities, and approving the issuance of licenses to agents. However, approving and reviewing forms, rules, and rates is not listed as one of its duties and functions.

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177. Which of the following does Uninsured Motorist not pay for?

Explanation

Uninsured Motorist coverage typically pays for medical bills, retrofitting your house to accommodate disabilities caused by an auto accident, and replacement services for tasks you can no longer do. However, it does not cover punitive damages. Punitive damages are additional damages awarded to punish the at-fault party for their reckless or intentional behavior, rather than compensating the victim for their losses.

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178. The typical coverage for rental reimbursement in a Mechanical Breakdown policy is:

Explanation

The typical coverage for rental reimbursement in a Mechanical Breakdown policy is $15 per day with a maximum limit of $75. This means that if a policyholder needs to rent a vehicle while their car is being repaired due to a mechanical breakdown, they will be reimbursed up to $15 per day for the rental expenses. However, the maximum amount that they can claim for rental reimbursement is $75.

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179. Which of the following is a basic limit under the CGL?

Explanation

The correct answer is $100,000 per occurrence for BI & PD. This refers to the maximum amount of coverage provided by the Commercial General Liability (CGL) policy for bodily injury (BI) and property damage (PD) that occurs in a single incident. This limit indicates that the insurance policy will cover up to $100,000 for any claims related to bodily injury or property damage caused by the insured party.

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180. Coinsurance requires the insured to carry a minimum amount of insurance based on a percentage of the value of the building or contents. All of the following are percentages available EXCEPT:

Explanation

Coinsurance requires the insured to carry a minimum amount of insurance based on a percentage of the value of the building or contents. The percentage represents the minimum coverage that the insured must maintain. In this case, the question is asking for the percentage that is NOT available. Therefore, the correct answer is 75%.

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181. Which of the following best describes the loss valuation in the Business Owners Policy?

Explanation

The correct answer is "Replacement cost provided certain insurance to value requirements are met." This means that the loss valuation in the Business Owners Policy is based on the cost of replacing the damaged property with new property of similar kind and quality, as long as certain requirements regarding the amount of insurance coverage are met.

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182. All types of taking property by force is called:

Explanation

The term "enemies" refers to the act of taking property by force, regardless of the specific method or means used. This could include acts such as theft, robbery, or invasion. The term "enemies" is a broad and general term that encompasses all types of forceful property taking.

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183. As it pertains to Commercial Auto Insurance, what coverage means that covered autos include only those that the named insured hires, rents, leases or borrows from persons other than employees or members of their households.

Explanation

The correct answer is "hired autos only". This means that the coverage for Commercial Auto Insurance only includes vehicles that the named insured hires, rents, leases, or borrows from individuals who are not employees or members of their households. It does not include owned autos or specifically described autos.

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184. All of the following are defined as insureds in the CGL EXCEPT:

Explanation

The spouse of a corporate officer is not defined as an insured in the CGL policy. The policy typically includes the insured's employees, real estate manager for the insured, and the spouse of a sole proprietor as insureds. However, the spouse of a corporate officer is not specifically included in the definition of insureds in the CGL policy.

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185. Loss due to spoilage from lack of power, light, heat, steam, or refrigeration is called:

Explanation

Consequential damage refers to the loss or damage that occurs as a result of another event or circumstance. In this case, the loss due to spoilage from lack of power, light, heat, steam, or refrigeration is considered consequential damage because it is a direct consequence of the absence of these essential resources. Spoilage coverage, refrigeration coverage, and small business spoilage coverage do not encompass the broader concept of consequential damage, which includes a wider range of potential causes.

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186. Which of the following options is not a true statement concerning a Commercial General Liability Policy's named insured?

Explanation

The correct answer states that if the named insured is an organization other than a partnership or a joint venture, such as a corporation, the executive officer, director, and stockholder are not insured in their status as such. This means that the individuals holding these positions within the organization are not automatically covered under the Commercial General Liability Policy solely based on their roles.

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187. The principle that is meant to reduce a plaintiff's damages by the plaintiff's degree of negligence rather than to bar the suit altogether is known as what principle?

Explanation

The principle that is meant to reduce a plaintiff's damages by the plaintiff's degree of negligence rather than to bar the suit altogether is known as the comparative negligence rule. This principle allows the court to assign a percentage of fault to both the plaintiff and the defendant, and the damages awarded to the plaintiff are then reduced by their degree of negligence. This principle aims to provide a fair and proportionate allocation of damages based on the level of fault of each party involved in the case.

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188. The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is:

Explanation

The correct answer for the internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is $25,000. This means that the policy will cover up to $25,000 in damages caused by hazardous substances and ammonia contamination.

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189. Coverages required in order to comply with the Florida Financial Responsibility Law are:

Explanation

The correct answer is bodily injury liability and property damage liability. According to the Florida Financial Responsibility Law, drivers are required to have these two coverages in order to comply with the law. Bodily injury liability coverage helps pay for the medical expenses and lost wages of other people involved in an accident that you caused, while property damage liability coverage helps pay for the repair or replacement of other people's property that you damaged. These coverages are essential to ensure that drivers are financially responsible for any harm they cause to others on the road.

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190. After a community study that results in a flood hazard boundary map being developed, and limited coverage amounts becoming available, the community is said to be in what NFIP program?

Explanation

The community is said to be in the Emergency Program of the NFIP because it has conducted a study resulting in a flood hazard boundary map and has limited coverage amounts available. The Emergency Program provides limited coverage for communities that have not yet fully implemented floodplain management measures but have taken some steps towards reducing flood risk. It is a temporary program designed to provide immediate assistance to communities at risk of flooding.

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191. If a client wanted to buy a policy to cover liability arising out of a specific construction project by a specific contractor, they would purchase which of the following?

Explanation

Owners and contractors protective liability is the correct answer because this type of policy provides coverage for liability arising out of a specific construction project by a specific contractor. It is designed to protect the owner or contractor from potential damages or injuries that may occur during the project. This coverage is typically purchased by the client to ensure that they are protected from any liability claims that may arise during the construction process.

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192. Part B Medical Payments coverage applies to medical services rendered after an accident up to how many years?

Explanation

Part B Medical Payments coverage applies to medical services rendered after an accident for a period of 3 years. This means that any medical expenses incurred within three years of the accident will be covered by the insurance policy. It is important to note that after the specified time period, the coverage may no longer be applicable, and the individual may have to bear the medical expenses themselves.

Submit
193. John paid a contractor $5,000 for some remodeling in his bakery with a handwritten check. The contractor adds a 1 in front of the 5 and cashes a check for $15,000 instead. What insuring agreement would provide coverage for this situation? 

Explanation

The correct answer is forgery or alteration. In this situation, the contractor altered the amount on the check by adding a 1 in front of the 5, resulting in a larger amount being cashed. This falls under the category of forgery or alteration, as the contractor manipulated the check to deceive and defraud John.

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194. Uninsured Motorist Coverage pays for which of the following scenarios?

Explanation

Uninsured Motorist Coverage provides financial protection for the insured in the event of bodily injury caused by a hit and run driver. This means that if the insured is involved in an accident where the other driver flees the scene and cannot be identified or does not have insurance, the uninsured motorist coverage will pay for the medical expenses and other damages caused to the insured. It does not cover damage to the insured's car caused by a hit and run driver, damage caused by the insured to a parked car without collision coverage, or injury to a pedestrian caused by the insured while driving his own car.

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195. If John has an HO-3 policy with $200,000 in Coverage A, and due to a loss he is unable to occupy his home, how much would coverage D provide?

Explanation

Coverage D in an HO-3 policy typically provides coverage for additional living expenses if the insured is unable to occupy their home due to a covered loss. In this case, since John is unable to occupy his home due to a loss, coverage D would provide $60,000 in additional living expenses.

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196. What is the principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.

Explanation

The principle of insurance that states that the insured should be restored to the approximate financial condition they were in before the loss occurred is called indemnity. This means that the insurance company will compensate the insured for their losses up to the amount specified in the insurance policy, ensuring that they are neither better off nor worse off financially after the loss. Indemnity is a fundamental principle in insurance contracts, providing a sense of financial security and protection for the insured.

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197. John has a Personal Articles Floater for his camera, telescopic lenses, and his carrying case. His PAF has an itemized list with all of his equipment as required. John acquires a new camera but forgets to update his itemized list. Two weeks after purchase he suffers a loss with the new camera and wants his new camera covered. Would his PAF provide coverage for this newly acquired camera?

Explanation

The correct answer is Yes, because it has not been more than 30 days since the newly acquired camera. This means that John's Personal Articles Floater (PAF) would provide coverage for his newly acquired camera, even if he forgot to update the itemized list. The PAF allows coverage for newly acquired items within a certain time frame, in this case, 30 days. Since John suffered a loss with the new camera within two weeks of purchase, it falls within the coverage period and would be covered by the PAF.

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198. What is known as any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.

Explanation

Insurable interest refers to any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance, free from loss, destruction, or pecuniary damage or impairment. This means that the person seeking insurance must have a financial stake in the property or person being insured, such as ownership or a legal relationship. Without insurable interest, the insurance contract would be considered invalid as it lacks the necessary economic connection between the insured and the subject of the insurance.

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199. If John's business office burns down, and he suffers economic loss due to that loss, the economic loss is known as what type of loss?

Explanation

An indirect loss refers to the economic loss that occurs as a consequence of a direct loss. In this scenario, John's business office burning down is the direct loss, and the economic loss he suffers as a result of that is the indirect loss. This can include factors such as lost revenue, additional expenses, or a decrease in the value of assets.

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200. All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: 

Explanation

The correct answer is "Soliciting insurance in other areas of the state." This is because the question asks for an exception among the given options, and all the other options are grounds for compulsory refusal, suspension, or revocation. Unlawfully rebating, fraudulent submission of a Workers' Comp app, and lack of reasonably adequate knowledge are all valid reasons for such actions to be taken.

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In the liability section of the Business Owners Policy, what is the...
A dollar amount the insured must pay on each loss before the insurance...
Which of the following is not a benefit under Personal Injury...
All of the following types of ownership are eligible for a Personal...
Which of the following is an example of an instrumentality of...
According to F.S. 626.9541 which of the following options below does...
All of the following can be written under a single flood policy...
In the Building and Personal Property Coverage Form, all of the...
If an employer who is not required to carry Workers' Comp...
What type of policy provides employers with claims-made coverage for...
What type of damages punish the wrongdoer for anti-social actions,...
According to F.S. 626.401 what document does an insurer need in order...
What is known as an insurance contract?
Which of the following is not a qualification for obtaining a General...
Which unique feature does boiler machinery coverage have that most...
All of the following describe insurable interest EXCEPT:
Which of the following does not trigger the Florida Financial...
Voluntary throwing overboard of parts or cargo to save the vessel from...
Which of the following best describes a franchise deductible?
All of the following are true of a DP-1 EXCEPT:
If an insurer wants to non-renew a Commercial Property policy, how...
Glenda's Card Shop has a Business Owners Policy with $1,000,000...
All of the following are perils of the seas EXCEPT: 
What type of provision states a period of time between issuance and...
Which of the following is the definition of "safe burglary"?
Which of the following is not an eligibility requirement for the RCBAP...
According to F.S. 324.011 Operation of what law is triggered by an...
Which office has a responsibility in the area of insurance policy...
Jim and Glenda go to the local branch of their bank for a home loan....
A claim by a policyholder, insured or beneficiary directly against the...
What is a document which is attached to the policy and modifies or...
All of the following are supplementary payments under the Personal...
According to F.S. 624.06 an insurer formed under the laws of any state...
F.S. 627.827 defines a promissory note or other written agreement by...
Which of the following is excluded from a Physicians, Surgeons and...
The failure to exercise that degree of care that the law requires to...
Which of the following best describes how PIP relates to other...
Under the Dwelling Program forms, vandalism is not covered after the...
Which of the following is considered an "employee" as it...
Fraud by the master or crew at the expense of the ship owner with the...
A baker employed at John's bakery suffered a skateboarding injury...
A peril that is unique to policies covering dry cleaners is: 
The program which is a selected group of hospitals and medical...
After a company has been licensed to do business in the state their...
Which of the following examples of losses covered by an HO-3 is also...
John's catering company catered an event. The next day many of the...
John's car has been damaged by Jane with approximately $2,000 in...
What must be exhausted before the excess policy will apply?
Addition of Hangarkeeper's Liability coverage is normally part of...
Another name for a "cost plus" plan is:
When the cost to salvage and recondition a vessel exceeds its value,...
Insurance is a contract of indemnity. Which of the following best...
The cost to replace an item of property at the time of loss less an...
Which of the following situations requires nonresidents to comply with...
While closing for the day at the bakery the deposit bag with the cash...
What loss valuation is also known as "new for old"?
In Liability policies, what is generally defined to be an accident,...
As it pertains to homeowners property insurance, Coverage C...
In a Business Auto Coverage form, if you wanted to apply coverage to...
Which office is in charge of examining the qualifications of insurance...
What insures an individual for financial losses which arise out of the...
When the basic liability limits provided by a policy are insufficient...
In a commercial condo situation where the building form and the unit...
If Rita did not own a vehicle but wanted to purchase a policy to cover...
What is the basic limit for loss assessment in the homeowners policy?
What type of clause will apply to resolve disagreements between...
All of the following are coinsurance options under the Business Income...
If John has a right to collect damages from the negligent party in a...
Charging an applicant for a specific ancillary coverage in addition to...
What agency provides regulatory oversight to banks credit unions...
The Cause of Loss - Basic Form provides coverage for all of the...
The program which provides comprehensive health services to members...
All of the following are characteristics of the FWCJUA EXCEPT:
What can be added to the Homeowners contract which provides coverage...
Which of the following best describes a "controlled" Inland...
If John has an PAP with combined single limits of $300,000 and has an...
All of the following are Coverage C - Personal Property exclusions...
Damaged property that may be retrieved, reconditioned, and sold to...
Which of the following covers the liability of a common carrier for...
Employee Theft is defined as:
Which of the following is not considered an owner of a "defined...
Part D-Damage to Your Auto applies to all of the following EXCEPT:
What is the personal residential dollar limit under a Citizens...
According to F.S. 626.8797 all Proof of Loss Statements must include...
Supplementary Payments cover several areas of costs related to claims,...
In order to be written in Citizens Property Insurance Corp, who must...
An insurer has a responsibility to respond promptly after having...
If John, while helping Robert move to his new home, accidentally drops...
What type of health insurance policy is designed to provide...
The Building and Personal Property Coverage Form contains a vacancy...
F.S. 627.706 states that a depression in the ground cover clearly...
What is the purpose of the Extended Period of Indemnity option in the...
What is a class of bonds which guarantees an employee's honesty?
An insurance agent's error and omissions policy falls under what...
The following statement below are true regarding a DP-1 policy with...
The person who must be at least 15 years old, and who the insurance...
Whose office is responsible for the licensing and oversight of...
Which of the following is not a way to purchase Uninsured Motorist...
What problems started in earnest in or about 1974 with the enactment...
Commercial Package Policies can combine 2 or more of the following...
Actual Cash Value and Replacement Cost are two terms associated with...
Extended PIP does which of the following?
Which of the following does not describe the Citizens wind program?
All of the following are covered under Personal and Advertising Injury...
While conceptually similar to the homeowners program, the business...
The typical grace periods in health insurance for weekly, monthly, and...
As it relates to commercial property insurance the Agreed Value...
All of the following are true of the Lawyers Professional Policy...
The limit on medical coverage in the Workers' Compensation policy...
When it comes to Workers Compensation premiums, what is another name...
Which of the following is covered for liability under an HO-4?
Don has an HO-3 with $150,000 for Coverage A. How much Coverage D does...
The Causes of Loss-Broad Form includes all of the basic perils plus...
If John has a PAP whose limits re 10/20/10 what are the property...
Of the options listed below, which one is not eligible for an HO-4...
What are the two ways a carrier cnoffer the deductible to commercial...
Rebating is allowed under certain conditions. All of the following are...
The Department requires each adjusting firm and branches to designate...
What is the total coverage amount (basic amount + additional amount)...
If John's General Liability Policy has been in force for 183 days...
In regards to Commercial Property Coverage there are three such forms:...
All of the following are duties and functions of the Department of...
Which of the following does Uninsured Motorist not pay for?
The typical coverage for rental reimbursement in a Mechanical...
Which of the following is a basic limit under the CGL?
Coinsurance requires the insured to carry a minimum amount of...
Which of the following best describes the loss valuation in the...
All types of taking property by force is called:
As it pertains to Commercial Auto Insurance, what coverage means that...
All of the following are defined as insureds in the CGL EXCEPT:
Loss due to spoilage from lack of power, light, heat, steam, or...
Which of the following options is not a true statement concerning a...
The principle that is meant to reduce a plaintiff's damages by the...
The internal limits for hazardous substances and ammonia contamination...
Coverages required in order to comply with the Florida Financial...
After a community study that results in a flood hazard boundary map...
If a client wanted to buy a policy to cover liability arising out of a...
Part B Medical Payments coverage applies to medical services rendered...
John paid a contractor $5,000 for some remodeling in his bakery with a...
Uninsured Motorist Coverage pays for which of the following scenarios?
If John has an HO-3 policy with $200,000 in Coverage A, and due to a...
What is the principle of insurance which provides that when a loss...
John has a Personal Articles Floater for his camera, telescopic...
What is known as any actual, lawful and substantial economic interest...
If John's business office burns down, and he suffers economic loss...
All of the following are grounds for compulsory refusal, suspension,...
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