A.D. Banker Property & Casualty (FL) Exam
Questions With Correct Answers
The |Businessowners |Protective |Safeguards |endorsement |requires |the |insured |to |notify |the |
insurer |if |an |automatic |sprinkler |system |is |off |for |how |long? |- |CORRECT |ANSWER✔✔-48 |hours
Because |a |premium |reduction |is |granted |for |the |protective |systems |listed |in |the |Protective |
Safeguards |Endorsement, |the |insurer |insists |upon |being |notified |if |the |systems |are |not |
functional.
Under |which |form |is |the |Coverage |B |limit |included |in |the |overall |policy |limit |represented |by |
Coverage |A? |- |CORRECT |ANSWER✔✔-DP-1
Under |the |DP-2 |and |DP-3, |the |Coverage |B |amount |is |paid |in |addition |to |the |limits |represented
|by |Coverage |A. |Under |the |DP-1 |form, |the |Coverage |B |amount |is |included |in |the |limit |
represented |by |Coverage |A. |There |is |no |DP-4 |policy.
Which |of |the |following |is |an |element |of |fiduciary |responsibility? |- |CORRECT |ANSWER✔✔-Duty
|of |Loyalty
Fiduciary |responsibilities |are |connected |to |a |person's |position |of |trust |in |relation |to |the |
money |or |property |of |others. |These |include |the |duties |of |care |and |loyalty, |in |addition |to |
exhibiting |due |diligence |when |handling |the |money |and |property |of |the |corporation.
All |of |the |following |are |true |of |the |Fair |Credit |Reporting |Act, |except:
A |- |A |consumer |has |the |right |to |obtain |the |substance |of |the |information |in |the |reporting |
agency |file
B |- |A |report |can |be |changed |by |court |action |only
,C |- |The |Act |protects |the |rights |of |the |individual |from |overly |intrusive |information |collection |
practices
D |- |A |consumer |who |was |investigated |must |be |informed |whenever |credit |or |insurance |was |
denied |because |of |an |adverse |report |- |CORRECT |ANSWER✔✔-C |- |The |Act |protects |the |rights |
of |the |individual |from |overly |intrusive |information |collection |practices
If |a |consumer |says |that |certain |information |is |incorrect, |the |reporting |agency |must |
reinvestigate |the |facts |and |make |changes |as |necessary.
Which |of |the |following |is |not |a |common |policy |condition |on |a |commercial |property |policy?
A |- |Transfer |of |Rights |and |Duties
B |- |Abandonment
C |- |Inspection |and |surveys
D |- |Premiums |- |CORRECT |ANSWER✔✔-B |- |Abandonment
The |Abandonment |provision |is |found |in |the |conditions |section |of |the |Commercial |Property |
Coverage |Part, |but |is |not |a |common |policy |condition |under |the |CPP.
A |wine |store |discovers |that |someone |has |vandalized |their |display |shelves, |causing |$1,500 |in |
damage |to |inventory. |Further |inspection |reveals |evidence |of |forcible |entry |to |the |store |safe, |
causing |another |$500 |in |damage, |and |the |loss |of |$5,000 |in |currency. |How |much |will |the |
store's |crime |policy |pay |under |the |Inside |The |Premises |Theft |of |Money |and |Securities |insuring |
agreement? |- |CORRECT |ANSWER✔✔-$7,000
All |these |losses |would |be |covered. |The |Inside |The |Premises |Theft |of |Money |and |Securities |
insuring |agreement |provides |coverage |for |theft, |disappearance, |or |destruction |of |money |and |
securities |inside |the |insured's |premises, |damage |to |the |insured's |premises |when |caused |by |an
|attempted |or |actual |theft, |and |loss |or |damage |to |a |locked |safe, |vault, |cash |register, |cash |box, |
or |cash |drawer |that |results |from |actual |or |attempted |entry |into |such |property.
,All |of |the |following |are |true |regarding |Ocean |Marine |Insurance, |except:
A |- |There |is |no |standard |Ocean |Marine |Form
B |- |Breach |of |certain |implied |warranties |may |cause |the |contract |to |become |void
C |- |Cargo |coverage |is |generally |written |on |a |valued |basis
D |- |Rates |for |ocean |marine |insurance |are |strictly |regulated |- |CORRECT |ANSWER✔✔-D |- |Rates |
for |ocean |marine |insurance |are |strictly |regulated
Ocean |Marine |coverage |is |generally |unregulated |with |respect |to |both |forms |and |rates.
Under |Uninsured |Motorist |Coverage |of |the |Personal |Auto |Policy, |which |of |the |following |would
|be |an |insured?
A |- |A |family |member, |occupying |an |insured |auto |struck |by |an |uninsured |vehicle
B |- |The |operator |of |an |uninsured |motor |vehicle |involved |in |an |accident |with |the |insured
C |- |A |family |member |occupying |an |uninsured |auto
D |- |The |owner |of |an |uninsured |motor |vehicle |involved |in |an |accident |with |the |insured |- |
CORRECT |ANSWER✔✔-A |- |A |family |member, |occupying |an |insured |auto |struck |by |an |
uninsured |vehicle
Uninsured |Motorists |Coverage |provides |liability |coverage |for |an |uninsured |vehicle |involved |in |
an |accident |with |an |automobile |occupied |by |the |insured |or |a |family |member. |However, |it |
provides |no |protection |for |the |owner |or |operator |of |the |uninsured |auto.
The |following |qualifications |are |required |for |a |life |or |health |agent |license, |except:
A |- |Complete |40 |hours |of |classroom |or |correspondence |instruction |within |4 |years |immediately
|preceding |the |application
B |- |Be |at |least |21 |years |of |age
C |- |Pass |a |written |licensing |examination
D |- |Submit |fingerprints |and |a |background |check |- |CORRECT |ANSWER✔✔-B |- |Be |at |least |21 |
years |of |age
, An |individual |must |be |at |least |18 |years |of |age.
Which |of |the |following |best |describes |the |situation |when |a |property |has |neither |contents |nor |
occupants?
A |- |Unoccupancy
B |- |Vacancy
C |- |Ordinance |or |Law
D |- |Abandonment |- |CORRECT |ANSWER✔✔-B |- |Vacancy |
A |vacant |building |is |empty |of |both |contents |and |occupants. |In |contrast, |an |unoccupied |
building |contains |physical |contents, |but |has |no |residents |or |ongoing |business |occupants.
All |of |the |following |statements |about |the |Musical |Instrument |Floater |are |true, |except:
A |- |It |may |not |be |included |in |the |scheduled |personal |property |endorsement
B |- |No |additional |premium |is |required |if |instruments |are |played |for |hire
C |- |Claims |are |settled |on |an |actual |cash |value
D |- |Newly |acquired |items |must |be |reported |within |30 |days |- |CORRECT |ANSWER✔✔-B |- |No |
additional |premium |is |required |if |instruments |are |played |for |hire
Playing |for |pay |requires |an |endorsement |and |additional |premium.
An |HO-3 |policy |provides |coverage |on |which |basis? |- |CORRECT |ANSWER✔✔-Open |perils |
coverage |on |the |dwelling |and |broad |form |coverage |on |the |personal |property
The |H0-3 |provides |open |perils |coverage |on |the |dwelling, |and |Named |Broad |Form |perils |
coverage |on |the |personal |property. |Losses |to |the |dwelling |are |paid |at |replacement |cost |and |
losses |to |personal |property |are |paid |at |actual |cash |value.
Questions With Correct Answers
The |Businessowners |Protective |Safeguards |endorsement |requires |the |insured |to |notify |the |
insurer |if |an |automatic |sprinkler |system |is |off |for |how |long? |- |CORRECT |ANSWER✔✔-48 |hours
Because |a |premium |reduction |is |granted |for |the |protective |systems |listed |in |the |Protective |
Safeguards |Endorsement, |the |insurer |insists |upon |being |notified |if |the |systems |are |not |
functional.
Under |which |form |is |the |Coverage |B |limit |included |in |the |overall |policy |limit |represented |by |
Coverage |A? |- |CORRECT |ANSWER✔✔-DP-1
Under |the |DP-2 |and |DP-3, |the |Coverage |B |amount |is |paid |in |addition |to |the |limits |represented
|by |Coverage |A. |Under |the |DP-1 |form, |the |Coverage |B |amount |is |included |in |the |limit |
represented |by |Coverage |A. |There |is |no |DP-4 |policy.
Which |of |the |following |is |an |element |of |fiduciary |responsibility? |- |CORRECT |ANSWER✔✔-Duty
|of |Loyalty
Fiduciary |responsibilities |are |connected |to |a |person's |position |of |trust |in |relation |to |the |
money |or |property |of |others. |These |include |the |duties |of |care |and |loyalty, |in |addition |to |
exhibiting |due |diligence |when |handling |the |money |and |property |of |the |corporation.
All |of |the |following |are |true |of |the |Fair |Credit |Reporting |Act, |except:
A |- |A |consumer |has |the |right |to |obtain |the |substance |of |the |information |in |the |reporting |
agency |file
B |- |A |report |can |be |changed |by |court |action |only
,C |- |The |Act |protects |the |rights |of |the |individual |from |overly |intrusive |information |collection |
practices
D |- |A |consumer |who |was |investigated |must |be |informed |whenever |credit |or |insurance |was |
denied |because |of |an |adverse |report |- |CORRECT |ANSWER✔✔-C |- |The |Act |protects |the |rights |
of |the |individual |from |overly |intrusive |information |collection |practices
If |a |consumer |says |that |certain |information |is |incorrect, |the |reporting |agency |must |
reinvestigate |the |facts |and |make |changes |as |necessary.
Which |of |the |following |is |not |a |common |policy |condition |on |a |commercial |property |policy?
A |- |Transfer |of |Rights |and |Duties
B |- |Abandonment
C |- |Inspection |and |surveys
D |- |Premiums |- |CORRECT |ANSWER✔✔-B |- |Abandonment
The |Abandonment |provision |is |found |in |the |conditions |section |of |the |Commercial |Property |
Coverage |Part, |but |is |not |a |common |policy |condition |under |the |CPP.
A |wine |store |discovers |that |someone |has |vandalized |their |display |shelves, |causing |$1,500 |in |
damage |to |inventory. |Further |inspection |reveals |evidence |of |forcible |entry |to |the |store |safe, |
causing |another |$500 |in |damage, |and |the |loss |of |$5,000 |in |currency. |How |much |will |the |
store's |crime |policy |pay |under |the |Inside |The |Premises |Theft |of |Money |and |Securities |insuring |
agreement? |- |CORRECT |ANSWER✔✔-$7,000
All |these |losses |would |be |covered. |The |Inside |The |Premises |Theft |of |Money |and |Securities |
insuring |agreement |provides |coverage |for |theft, |disappearance, |or |destruction |of |money |and |
securities |inside |the |insured's |premises, |damage |to |the |insured's |premises |when |caused |by |an
|attempted |or |actual |theft, |and |loss |or |damage |to |a |locked |safe, |vault, |cash |register, |cash |box, |
or |cash |drawer |that |results |from |actual |or |attempted |entry |into |such |property.
,All |of |the |following |are |true |regarding |Ocean |Marine |Insurance, |except:
A |- |There |is |no |standard |Ocean |Marine |Form
B |- |Breach |of |certain |implied |warranties |may |cause |the |contract |to |become |void
C |- |Cargo |coverage |is |generally |written |on |a |valued |basis
D |- |Rates |for |ocean |marine |insurance |are |strictly |regulated |- |CORRECT |ANSWER✔✔-D |- |Rates |
for |ocean |marine |insurance |are |strictly |regulated
Ocean |Marine |coverage |is |generally |unregulated |with |respect |to |both |forms |and |rates.
Under |Uninsured |Motorist |Coverage |of |the |Personal |Auto |Policy, |which |of |the |following |would
|be |an |insured?
A |- |A |family |member, |occupying |an |insured |auto |struck |by |an |uninsured |vehicle
B |- |The |operator |of |an |uninsured |motor |vehicle |involved |in |an |accident |with |the |insured
C |- |A |family |member |occupying |an |uninsured |auto
D |- |The |owner |of |an |uninsured |motor |vehicle |involved |in |an |accident |with |the |insured |- |
CORRECT |ANSWER✔✔-A |- |A |family |member, |occupying |an |insured |auto |struck |by |an |
uninsured |vehicle
Uninsured |Motorists |Coverage |provides |liability |coverage |for |an |uninsured |vehicle |involved |in |
an |accident |with |an |automobile |occupied |by |the |insured |or |a |family |member. |However, |it |
provides |no |protection |for |the |owner |or |operator |of |the |uninsured |auto.
The |following |qualifications |are |required |for |a |life |or |health |agent |license, |except:
A |- |Complete |40 |hours |of |classroom |or |correspondence |instruction |within |4 |years |immediately
|preceding |the |application
B |- |Be |at |least |21 |years |of |age
C |- |Pass |a |written |licensing |examination
D |- |Submit |fingerprints |and |a |background |check |- |CORRECT |ANSWER✔✔-B |- |Be |at |least |21 |
years |of |age
, An |individual |must |be |at |least |18 |years |of |age.
Which |of |the |following |best |describes |the |situation |when |a |property |has |neither |contents |nor |
occupants?
A |- |Unoccupancy
B |- |Vacancy
C |- |Ordinance |or |Law
D |- |Abandonment |- |CORRECT |ANSWER✔✔-B |- |Vacancy |
A |vacant |building |is |empty |of |both |contents |and |occupants. |In |contrast, |an |unoccupied |
building |contains |physical |contents, |but |has |no |residents |or |ongoing |business |occupants.
All |of |the |following |statements |about |the |Musical |Instrument |Floater |are |true, |except:
A |- |It |may |not |be |included |in |the |scheduled |personal |property |endorsement
B |- |No |additional |premium |is |required |if |instruments |are |played |for |hire
C |- |Claims |are |settled |on |an |actual |cash |value
D |- |Newly |acquired |items |must |be |reported |within |30 |days |- |CORRECT |ANSWER✔✔-B |- |No |
additional |premium |is |required |if |instruments |are |played |for |hire
Playing |for |pay |requires |an |endorsement |and |additional |premium.
An |HO-3 |policy |provides |coverage |on |which |basis? |- |CORRECT |ANSWER✔✔-Open |perils |
coverage |on |the |dwelling |and |broad |form |coverage |on |the |personal |property
The |H0-3 |provides |open |perils |coverage |on |the |dwelling, |and |Named |Broad |Form |perils |
coverage |on |the |personal |property. |Losses |to |the |dwelling |are |paid |at |replacement |cost |and |
losses |to |personal |property |are |paid |at |actual |cash |value.
