FLORIDA PROPERTY & CASUALTY
INSURANCE, AGENTS LICENSE FINAL
EXAM QUESTIONS TEST BANK TESTED
AND VERIFIED (GRADED A+)
1.This association was created for applicants who are unable to obtain automobile
insurance in the private market: - ANSWER FAJUA
2. Within how many days is a Medicare Supplement Policy returnable for a full
refund? - ANSWER 30
3. If an insured elects a lump sum benefit instead of a monthly disability benefit it
is defined as: - ANSWER Elective Indemnity
4. The policy that pays a flat amount per day of hospitalization regardless of
expenses or other insurance is defined as: - ANSWER Hospital Indemnity
Insurance
5. This program provides comprehensive health services to members for a prepaid
fixed fee with a goal of preventive activity: - ANSWER HMO
6.The provision that states the insured would not have to pay premiums after a
certain length of disability is defined as: - ANSWER Time limit on certain
disability clause
7. The typical grace periods in Health Insurance for weekly, monthly, and all other
premium payments are: - ANSWER 7-10-31
,8. The time after the premium due date where the policy remains in force even if
the premium has not been paid is defined as: - ANSWER Grace Period
9. How many days notice must a Health insurance company give when canceling a
Health Policy? - ANSWER 20
10. After two years from the date of issue only fraudulent misstatements in the
application can be used to void the policy or deny a claim. This is defined as: -
ANSWER Limitations on insurer defenses
11. The pre-existing conditions provision in Medicare Supplement Policy is limited
to: - ANSWER 6 months
12. All of the following are features of Major Medical Insurance EXCEPT? -
ANSWER Has limited coverage for most expenses
13. A selected group of hospitals and medical practitioners in a given area that have
joined together in an effort to reduce medical costs is defined as: - ANSWER PPO
14. Health insurance insures against loss by: - ANSWER All of the Choices
Provided
15. ABC Health Insurer does not renew your policy since renewals are being
declined on all similar policies within the state of Florida. What type of policy is
this? - ANSWER Conditionally Renewable
16. Which of the following are excluded on a Health Insurance Policy? - ANSWER
Occupational Disease
,PIP Benefits
Attempted Suicide
17. The maximum limit payable for Expediting Expenses in the unendorsed Boiler
and Machinery policy is: - ANSWER $25,000
18. The coverage which pays the cost of temporary repairs and to fasten permanent
repairs or replacement is defined as: - ANSWER Expediting Expense coverage
19. Loss due to spoilage from lack of power, light, heat, steam or refrigeration is
defined as: - ANSWER Consequential damage
20. The internal limits for hazardous substances and ammonia contamination in the
Small Business Boiler and Machinery Broad Form is: - ANSWER $25,000
21. In order to receive replacement cost for a Boiler and Machinery loss, the
property must be replaced within: - ANSWER 18 months
22.The coverage endorsement that pays actual lost profits and continuing expenses
subject to the limit selected is defined as: - ANSWER Actual Loss Sustained
Business Interruption
23. Which of the following pays for extraordinary expenses incurred to maintain
ongoing operations, over and above normal expenses that would have been
experienced had there been no accident to the covered object: - ANSWER Extra
Expense Form
24. The Boiler and Machinery Policy provides automatic coverage for boilers at
newly acquired locations for: - ANSWER 90 days
, 25. Which of the following is NOT a characteristic of the Small Business Boiler
and Machinery Policy? - ANSWER Business interruption is 25% of the limit but
not an additional amount
26. Which of the following pays an agreed dollar limit for each day of total
interruption, or a proportionate part of that limit for partial interruption? -
ANSWER Valued Business Interruption
27. Which of the following provides important mechanical breakdown coverage
generally not available under any other insurance policy? - ANSWER Boiler and
Machinery Insurance
28.The FAJUA is composed of: - ANSWER All companies licensed to write auto
insurance in Florida
29. A coverage that is similar to premises and operations coverage in the
Commercial General Liability Policy covering bodily injury and property damage
liability for aviation risks is defined as: - ANSWER Airport and Air Meet Liability
30. Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000.
Insured losses include $25,000 furniture, clothing and other ordinary personal
property plus $5,000 damage to guns and $5,000 damage to jewelry, furs. Insured
will recover: - ANSWER $29,000 less any deductible
Each of the following divisions falls under The Department of Financial Services
EXCEPT? - ANSWER The Division of Consumer Activities
Which of the following provides for loss of money and securities outside the
premises in the care, custody and control of a messenger or armored car service
INSURANCE, AGENTS LICENSE FINAL
EXAM QUESTIONS TEST BANK TESTED
AND VERIFIED (GRADED A+)
1.This association was created for applicants who are unable to obtain automobile
insurance in the private market: - ANSWER FAJUA
2. Within how many days is a Medicare Supplement Policy returnable for a full
refund? - ANSWER 30
3. If an insured elects a lump sum benefit instead of a monthly disability benefit it
is defined as: - ANSWER Elective Indemnity
4. The policy that pays a flat amount per day of hospitalization regardless of
expenses or other insurance is defined as: - ANSWER Hospital Indemnity
Insurance
5. This program provides comprehensive health services to members for a prepaid
fixed fee with a goal of preventive activity: - ANSWER HMO
6.The provision that states the insured would not have to pay premiums after a
certain length of disability is defined as: - ANSWER Time limit on certain
disability clause
7. The typical grace periods in Health Insurance for weekly, monthly, and all other
premium payments are: - ANSWER 7-10-31
,8. The time after the premium due date where the policy remains in force even if
the premium has not been paid is defined as: - ANSWER Grace Period
9. How many days notice must a Health insurance company give when canceling a
Health Policy? - ANSWER 20
10. After two years from the date of issue only fraudulent misstatements in the
application can be used to void the policy or deny a claim. This is defined as: -
ANSWER Limitations on insurer defenses
11. The pre-existing conditions provision in Medicare Supplement Policy is limited
to: - ANSWER 6 months
12. All of the following are features of Major Medical Insurance EXCEPT? -
ANSWER Has limited coverage for most expenses
13. A selected group of hospitals and medical practitioners in a given area that have
joined together in an effort to reduce medical costs is defined as: - ANSWER PPO
14. Health insurance insures against loss by: - ANSWER All of the Choices
Provided
15. ABC Health Insurer does not renew your policy since renewals are being
declined on all similar policies within the state of Florida. What type of policy is
this? - ANSWER Conditionally Renewable
16. Which of the following are excluded on a Health Insurance Policy? - ANSWER
Occupational Disease
,PIP Benefits
Attempted Suicide
17. The maximum limit payable for Expediting Expenses in the unendorsed Boiler
and Machinery policy is: - ANSWER $25,000
18. The coverage which pays the cost of temporary repairs and to fasten permanent
repairs or replacement is defined as: - ANSWER Expediting Expense coverage
19. Loss due to spoilage from lack of power, light, heat, steam or refrigeration is
defined as: - ANSWER Consequential damage
20. The internal limits for hazardous substances and ammonia contamination in the
Small Business Boiler and Machinery Broad Form is: - ANSWER $25,000
21. In order to receive replacement cost for a Boiler and Machinery loss, the
property must be replaced within: - ANSWER 18 months
22.The coverage endorsement that pays actual lost profits and continuing expenses
subject to the limit selected is defined as: - ANSWER Actual Loss Sustained
Business Interruption
23. Which of the following pays for extraordinary expenses incurred to maintain
ongoing operations, over and above normal expenses that would have been
experienced had there been no accident to the covered object: - ANSWER Extra
Expense Form
24. The Boiler and Machinery Policy provides automatic coverage for boilers at
newly acquired locations for: - ANSWER 90 days
, 25. Which of the following is NOT a characteristic of the Small Business Boiler
and Machinery Policy? - ANSWER Business interruption is 25% of the limit but
not an additional amount
26. Which of the following pays an agreed dollar limit for each day of total
interruption, or a proportionate part of that limit for partial interruption? -
ANSWER Valued Business Interruption
27. Which of the following provides important mechanical breakdown coverage
generally not available under any other insurance policy? - ANSWER Boiler and
Machinery Insurance
28.The FAJUA is composed of: - ANSWER All companies licensed to write auto
insurance in Florida
29. A coverage that is similar to premises and operations coverage in the
Commercial General Liability Policy covering bodily injury and property damage
liability for aviation risks is defined as: - ANSWER Airport and Air Meet Liability
30. Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000.
Insured losses include $25,000 furniture, clothing and other ordinary personal
property plus $5,000 damage to guns and $5,000 damage to jewelry, furs. Insured
will recover: - ANSWER $29,000 less any deductible
Each of the following divisions falls under The Department of Financial Services
EXCEPT? - ANSWER The Division of Consumer Activities
Which of the following provides for loss of money and securities outside the
premises in the care, custody and control of a messenger or armored car service
