Florida 2-20 General Lines Study Manual 27th Edition questions and answers verified and updated.

Florida 2-20 General Lines Study Manual 27th Edition questions and answers verified and updated. 1.4 Qualifications for General Lines License - correct answers.1. 18 or older 2. resident of FL or place of business in FL 3. will be active in business, business is accessible and identifiable by public 4. not licensing for writing or handling controlled business 5. Qualified via: a) 200 hr course b) one year full time employee in all lines of property casualty insurance c) one year as a customer rep, personal lines agent, or service rep and 40 hr course d) earned insurance degree that includes 18 hr semester e) held valid FL license for atleast a year f) have an original letter from the American Institute for Chartered Property Casualty Underwriters 1.4 Qualifications for General License Statute - correct answers.F.S. 626.371 (3)(a), 626.381 Once licensed, you have 48 months to obtain an appointment (the authority given by an insurer or employer to transact insurance or adjust claims). If the appointment is submitted late. the appointing entity will be responsible for the late fee of $250 plus the statutory appointment fee of $60. Once your license has gone beyond 48 months without an appointment, you will have to qualify as a first-time applicant. 1.7 Duties and Functions of the DFS - correct answers.The Department of Financial Services 1. Supervise claims activities of various companies so policyholders may be assured of fair treatment and prompt settlement of loss under a policy 2. Investigate charges of unethical conduct and take judicious actions in such cases 3. DFS Division of Agent and Agency Services- approves issuances of licenses to agents, customer representatives, and claims adjustors 1.7 Duties and Functions of OIR - correct answers.The Office of Insurance Regulation 1. Examine qualifications of insurance companies seeking to do business in FL, admitting them to the state when they have met the requirements, and then checking their financial condition periodically 2. Responsible for insurance policy forms, rules, and ratings; they approve forms before use, and review companies' rules and rates every so often 1.7 Duties and Functions of OFR - correct answers.The Office of Financial Regulation 1. Provides regulatory oversight to Florida financial service provides like banks, credit unions, finance companies, and security industries It was created in 2003 and reports to the Financial Service Commission. It has three divisions and one bureau and is headed by a commissioner who is appointed via the commission 1.7 Duties and Functions of FSLSO - correct answers.The Florida Surplus Lines Service Office 1. Reviews all surplus lines insurance policies and documents 2. Maintains records of policies and reports to the DFS 3. Collect surplus lines taxes 4. Collects service fees 5. Trains and educates surplus lines agents 2.1 Risk - correct answers.The chance of financial loss All insurance is designed to offset the financial impact based on loss, and how much of the risk the insured is willing to absorb determines the type of insurance needed, against what perils, and for what amount 2.2 Insurance Policy - correct answers.Statutory Definition: A written contract of or written agreement for or effecting insurance (or whatever else you want to call it) which includes all clauses, riders, endorsements, and papers which are a part of thereof 2.2 Insurance - correct answers.Statutory Definition: A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies 2.3 Binders - correct answers.An oral or written statement providing immediate insurance protection that is valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied Includes all terms of a policy No notice of cancellation or notice of nonrenewal otherwise required by this unit shall be required unless the duration of the binder exceeds 60 days 2.3 Binder Statute - correct answers.F.S.627.728 and 627.7281 Regarding auto coverage, an insurer shall give 5 days prior notice of cancellation of a binder, unless the binder is replaced by a policy or another binder in the same or another company 2.4 Casualty Insurance - correct answers.Casualty, or otherwise known as property, is insurance that may include all kinds of insurance other than life and health 2.4 Property Insurance - correct answers.Any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests 2.4 Liability Insurance - correct answers.Any insurance wherein payment will be made on behalf of the insured to another, based upon the insured's liability to the recipient 2.4 Health Insurance - correct answers.Health insurance has its own category, but its included here because licensing statutes authorize agents licensed for "property and liability" to sell health insurance 2.5 Personal Contract - correct answers.Property or liability insurance policies cover persons. not property or operations 2.5 Conditional Contract - correct answers.Property and liability insurance polices are said to be conditional because the obligation of the insurer to preform may be conditional upon the insured satisfying certain conditions All insurance policies contain conditions 2.5 Contract of Adhesion - correct answers.Parties included are of unequal bargaining power, and one party (the insured) cannot negotiate the terms, having to take the offer of the other party (the insurer) as made Such contracts are subject to having any ambiguities resolved in favor of the insured 2.5 Indemnity Contract - correct answers.The principle of indemnity must be present, the principle of indemnity is that one should not profit form the response provided by the policy Most policies will not pay amounts that exceed the actual cash value of property, but there are certain policies that may pay full replacement costs (new for old, aka you cannot replace a 3 year old paint job with 3 year old paint, so it is done with new paint) 2.5 Insurable Interest - correct answers.One wherein economic loss would be suffered from an adverse happening tot he subject In order for insurance to respond, there must be an insurable interest; the extent of the insurable interest establishes the limit of the response 2.5 Insurable Interest Statute - correct answers.F.S.627.405 1. No contract of insurance of property or of any interest in property arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as the time of loss 2. "Insurable Interest" as used in this section means 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