Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
1. Utmost Good Faith Insurance can only work when the par-
ties to the contract are completely hon-
est with each other. That's why insurance
contracts are what kind of contracts?
2. Family, Friends, or a primarily a personal An agent will violate the prohibition
contract against controlled business is she sells
most of her insurance polices to whom
3. It excludes coverage even if a weather-relat- Heavy rains cause a mudslide to weak-
ed peril like rain leads to a mudslide. en the foundation of Amy's home, which
is insured under a DP3 policy in which
mudslide in an excluded peril. How will
the weather conditions exclusion in the
policy treat the damage to the home?
4. 60 days If an auto insurance suspects fraud in a
claim investigation, how many additional
days can the insurer have to complete
the investigation?
5. to advise that the insurer may order a credit What is the purpose of the notice to con-
report on the application that includes per- sumers required by the Fair Credit Re-
sonal information porting Act?
6. FAJUA Which is the market of last resort for
those unable to find auto insurance in
the admitted market in Florida?
7. $15,000 or 5% of his coverage limit John's home is insured for $300,000. He
has a 5% hurricane deductible. His prop-
erty sustains $100,000 in damage in a
, Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
hurricane. How much will he contribute
toward the claim?
8. Notify the insurer of the claim, assist the in- While working at his service station, Bert
surer in making a settlement, and promptly mistakenly fueled a customers truck with
forward any loss notice or summons to the gasoline rather than diesel fuel, damag-
insurer. Do NOT try and settle the claim on ing the truck's engine. In responding to
his own. the trucker's liability claim for damage,
Bert's insurance policy requires him to...
9. Morale Hazard Most of his neighbors keep their cars
locked when they are parked outdoors
overnight, but Cecil leaves his car un-
locked with keys in the ignition. Cecil says
if his car is stolen, he'll just make a claim
on his insurance policy. What is Cecil's
indifference to loss an example of?
10. the insurance policy covers the entire loss The doctrine of concurrent causation
holds that if a loss involves more than
one peril, and the insurance policy cov-
ers at least one of the perils, then...
11. Basement of his home, Bernard's cemetery Bernard's homeowners insurance policy
plot, and his dorm room he occupies while refers to an "insured location" Which lo-
enrolled in summer courses. His downtown cations would qualify as an insured loca-
office space would NOT qualify. tion?
12. It will not pay for Sylvia's medical bills be- Sylvia is at fault for an auto accident with
cause she was at fault Lucien in which Sylvia is injured. She has
no health insurance, and Lucien has no
auto insurance. How would Sylvia's UI
coverage apply to this situation?
, Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
13. Physical Damage Coverage The personal auto policy's coverage for
collision and other-than-collision risks
are collectively called
14. risks that are low demand in the state, risks Risks placed in the excess and surplus
that are substandard due to adverse loss ex- lines insurance market
perience, and risks that require higher cov-
erage limits than admitted companies can
cover.
15. That the policy does not cover bailees What does the "No Benefit to Bailee"
provision in a property and casualty pol-
icy make clear?
16. The applicant is demonstrating adverse se- Carol owns a sports car and has received
lection numerous tickets for speeding. She sub-
mits applications to buy auto insurance
from several auto insurance companies,
but none has accepted her application
because..
17. Includes; Gramm-Lech-Bliley Act, Federal Federal legislation which protect priva-
Trade Commission Act, and Health In- cy of information relevant to insurance
surance Portability and Accountability Act. transactions include all of the following
DOES NOT INCLUDE: McCarran-Ferguson except..
Act (grants states principal jurisdiction to
regulate the insurance industry)
18. Notify the insurer in writing of her intent to In an attempt to reduce her expenses,
cancel the policy Mattie sells her car. What must she do to
cancel her auto insurance policy?
, Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
19. Risk Transfer Theo pays an annual premium to the in-
surance company that covers many of the
risks associated with his business. What
risk management technique is he using?
20. Premium The money that a property insurance
policyholder pays for insurance covering
his building is called
21. Wind Mitigation measures (credits) Florida law requires insurers to pro-
vide premium credits or discounts for
________________ on property insur-
ance polcies.
22. A. Negotiating an insurance contract Which of the following does NOT consti-
B. Mailing an insurance contract tute the transaction of insurance?
C. Soliciting Insurance
D. Make an insurance contract
B**
23. Rebecca will pay nothing, the PAP will Rebecca has a PAP with $500,00 limit
pay $500,000, and the umbrella will pay and a $1 million personal umbrella poli-
$100,000 cy with a $500 retained limit (deductible)
for slander and defemination. She is at
fault in an auto accident that is settled
for $600,000. How will this settlement
amount be paid?
24. Adverse Selection A homeowner who owns a vicious dog
may be more inclined to purchase liabil-
ity insurance than one who doesn't own
such an animal. What is this an example
of?
Study online at https://quizlet.com/_9f3kq7
1. Utmost Good Faith Insurance can only work when the par-
ties to the contract are completely hon-
est with each other. That's why insurance
contracts are what kind of contracts?
2. Family, Friends, or a primarily a personal An agent will violate the prohibition
contract against controlled business is she sells
most of her insurance polices to whom
3. It excludes coverage even if a weather-relat- Heavy rains cause a mudslide to weak-
ed peril like rain leads to a mudslide. en the foundation of Amy's home, which
is insured under a DP3 policy in which
mudslide in an excluded peril. How will
the weather conditions exclusion in the
policy treat the damage to the home?
4. 60 days If an auto insurance suspects fraud in a
claim investigation, how many additional
days can the insurer have to complete
the investigation?
5. to advise that the insurer may order a credit What is the purpose of the notice to con-
report on the application that includes per- sumers required by the Fair Credit Re-
sonal information porting Act?
6. FAJUA Which is the market of last resort for
those unable to find auto insurance in
the admitted market in Florida?
7. $15,000 or 5% of his coverage limit John's home is insured for $300,000. He
has a 5% hurricane deductible. His prop-
erty sustains $100,000 in damage in a
, Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
hurricane. How much will he contribute
toward the claim?
8. Notify the insurer of the claim, assist the in- While working at his service station, Bert
surer in making a settlement, and promptly mistakenly fueled a customers truck with
forward any loss notice or summons to the gasoline rather than diesel fuel, damag-
insurer. Do NOT try and settle the claim on ing the truck's engine. In responding to
his own. the trucker's liability claim for damage,
Bert's insurance policy requires him to...
9. Morale Hazard Most of his neighbors keep their cars
locked when they are parked outdoors
overnight, but Cecil leaves his car un-
locked with keys in the ignition. Cecil says
if his car is stolen, he'll just make a claim
on his insurance policy. What is Cecil's
indifference to loss an example of?
10. the insurance policy covers the entire loss The doctrine of concurrent causation
holds that if a loss involves more than
one peril, and the insurance policy cov-
ers at least one of the perils, then...
11. Basement of his home, Bernard's cemetery Bernard's homeowners insurance policy
plot, and his dorm room he occupies while refers to an "insured location" Which lo-
enrolled in summer courses. His downtown cations would qualify as an insured loca-
office space would NOT qualify. tion?
12. It will not pay for Sylvia's medical bills be- Sylvia is at fault for an auto accident with
cause she was at fault Lucien in which Sylvia is injured. She has
no health insurance, and Lucien has no
auto insurance. How would Sylvia's UI
coverage apply to this situation?
, Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
13. Physical Damage Coverage The personal auto policy's coverage for
collision and other-than-collision risks
are collectively called
14. risks that are low demand in the state, risks Risks placed in the excess and surplus
that are substandard due to adverse loss ex- lines insurance market
perience, and risks that require higher cov-
erage limits than admitted companies can
cover.
15. That the policy does not cover bailees What does the "No Benefit to Bailee"
provision in a property and casualty pol-
icy make clear?
16. The applicant is demonstrating adverse se- Carol owns a sports car and has received
lection numerous tickets for speeding. She sub-
mits applications to buy auto insurance
from several auto insurance companies,
but none has accepted her application
because..
17. Includes; Gramm-Lech-Bliley Act, Federal Federal legislation which protect priva-
Trade Commission Act, and Health In- cy of information relevant to insurance
surance Portability and Accountability Act. transactions include all of the following
DOES NOT INCLUDE: McCarran-Ferguson except..
Act (grants states principal jurisdiction to
regulate the insurance industry)
18. Notify the insurer in writing of her intent to In an attempt to reduce her expenses,
cancel the policy Mattie sells her car. What must she do to
cancel her auto insurance policy?
, Insurance Licensing Exam
Study online at https://quizlet.com/_9f3kq7
19. Risk Transfer Theo pays an annual premium to the in-
surance company that covers many of the
risks associated with his business. What
risk management technique is he using?
20. Premium The money that a property insurance
policyholder pays for insurance covering
his building is called
21. Wind Mitigation measures (credits) Florida law requires insurers to pro-
vide premium credits or discounts for
________________ on property insur-
ance polcies.
22. A. Negotiating an insurance contract Which of the following does NOT consti-
B. Mailing an insurance contract tute the transaction of insurance?
C. Soliciting Insurance
D. Make an insurance contract
B**
23. Rebecca will pay nothing, the PAP will Rebecca has a PAP with $500,00 limit
pay $500,000, and the umbrella will pay and a $1 million personal umbrella poli-
$100,000 cy with a $500 retained limit (deductible)
for slander and defemination. She is at
fault in an auto accident that is settled
for $600,000. How will this settlement
amount be paid?
24. Adverse Selection A homeowner who owns a vicious dog
may be more inclined to purchase liabil-
ity insurance than one who doesn't own
such an animal. What is this an example
of?
