Florida Property & Casualty Insurance
Exam questions with correct answers 61pg
The |FAJUA |is |composed |of: |- |VERIFIED |ANSWER✔✔-All |companies |licensed |to |write |auto |insurance |in
|Florida
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: |- |VERIFIED |
ANSWER✔✔-Airport |and |Air |Meet |Liability
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: |- |VERIFIED |ANSWER✔✔-$29,000 |less |any |
deductible
Each |of |the |following |divisions |falls |under |The |Department |of |Financial |Services |EXCEPT? |- |VERIFIED |
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 |resulting |from |theft, |disappearance, |or |
destruction? |- |VERIFIED |ANSWER✔✔-Outside |the |Premises
What |is |the |standard |All |Perils |deductible |in |the |Commercial |Property |Policy? |- |VERIFIED |
ANSWER✔✔-$500
Which |of |the |following |best |describes |a |"Controlled" |Inland |Marine |Form? |- |VERIFIED |ANSWER✔✔-
Standard |provisions |form |is |written |according |to |filed |rules |and |rates
Under |a |Personal |Articles |Floater, |which |of |the |following |is |covered |as |valued |property? |- |VERIFIED |
ANSWER✔✔-Fine |Arts
Under |the |Dwelling |Program |forms, |vandalism |is |not |covered |after |the |building |has |been |vacant |for |
how |many |days? |- |VERIFIED |ANSWER✔✔-60 |days
,Under |a |Commercial |General |Liability |Contract, |how |many |days |notice |of |cancellation |must |the |
insurer |provide |for |non-payment |of |premium? |- |VERIFIED |ANSWER✔✔-10
Under |Additional |Coverages, |how |much |applies |for |loss |assessments |imposed |by |an |association |
against |the |insured |for |damage |to |property |caused |by |a |peril |insured |against |under |Coverage |A? |- |
VERIFIED |ANSWER✔✔-$1,000
The |following |are |basic |characteristics |of |a |Property |or |Liability |Insurance |Contract |EXCEPT: |- |VERIFIED
|ANSWER✔✔-Loss |Settlement |Contract
Rob |has |PIP |with |a |$1,000 |deductible. |He |has |an |auto |accident |causing |$6,000 |in |medical |bills. |How |
much |will |his |PIP |pay? |- |VERIFIED |ANSWER✔✔-$4,000
- |$6,000 |- |$1,000 |deductible |= |$5,000 |x |80% |= |$4,000
QRS |Construction |Company |wants |to |provide |the |local |school |district |with |a |price |for |building |a |new |
grammar |school. |In |order |to |accept |the |price, |the |school |board |needs |a |bond |that |would |pay |the |
difference |between |QRS's |price |and |the |next |highest |price. |What |kind |of |bond |does |QRS |need |to |
provide |to |the |school |district? |- |VERIFIED |ANSWER✔✔-Bid |bond
- |The |Bid |Bond |is |required |to |accompany |a |bid |for |a |contract |which |will |require |that |the |successful |
bidder |furnish |further |bond |if |awarded |the |job. |The |guarantee |is |that |if |the |bid |is |accepted, |the |
bidder |will |enter |into |the |contract |and |will |satisfy |further |bonding |requirements |for |the |job
Which |of |the |following |guarantees |the |payment |of |materials |in |full |upon |completion |of |the |work? |- |
VERIFIED |ANSWER✔✔-Payment |Bond
Which |of |the |following |events |would |be |covered |under |an |HO-3? |I. |A |sewer |line |became |clogged |and
|the |toilet |in |the |house |backed |up |and |overflowed, |damaging |the |carpet. |II. |Wind |blew |a |front |door |
open |and |rain |damaged |the |carpet. |III. |The |neighbor's |German |Shepard |damaged |the |garage |
doorframe |while |trying |to |get |in |the |insured's |garage |to |eat |the |dog |food |stored |there. |- |VERIFIED |
ANSWER✔✔-II |and |III |only
All |of |the |following |are |located |on |a |Boiler |and |Machinery |Coverage |form |EXCEPT: |- |VERIFIED |
ANSWER✔✔-Exhibits
,The |Motor |Truck |Cargo |Policy: |- |VERIFIED |ANSWER✔✔-Insures |a |truck |carrier |for |liability |arising |out |
of |the |transportation |of |cargo.
All |of |the |following |are |types |of |property |that |can |be |covered |under |a |Personal |Articles |Floater |
EXCEPT: |- |VERIFIED |ANSWER✔✔-Firearms
What |is |the |standard |deductible |for |Employee |Theft |coverage? |- |VERIFIED |ANSWER✔✔-$500
The |Forgery |or |Alteration |coverage |under |a |Businessowners |Policy |is: |- |VERIFIED |ANSWER✔✔-$2,000
How |many |hours |of |continuing |education |is |a |newly |licensed |agent |required |to |have |for |their |first |
Continuing |Education |compliance |period? |- |VERIFIED |ANSWER✔✔-24
Which |of |the |following |is |NOT |true |regarding |sole |proprietors |and |partners |in |the |non-construction |
industry |as |they |relate |to |Workers |Compensation? |- |VERIFIED |ANSWER✔✔-A |maximum |of |three |can |
elect |to |be |covered
Which |of |the |following |is |not |a |way |to |purchase |Uninsured |Motorist |Coverage? |- |VERIFIED |
ANSWER✔✔-More |than |your |bodily |injury |limits
Camden's |Wood |Shop |will |be |dropping |off |new |cabinets |at |a |jobsite |on |Monday, |but |will |not |actually |
install |them |until |Tuesday. |What |kind |of |policy |will |they |need |to |cover |any |loss |to |the |cabinets? |- |
VERIFIED |ANSWER✔✔-Installation |Floater
This |Hospital |Form |applies |with |"medical |incident" |defined |as |an |act |or |omission |in |furnishing |of |
professional |services |related |to |making |of |a |blood |donation |under |the |supervision |of |the |insured: |- |
VERIFIED |ANSWER✔✔-Blood |Banks
Which |of |the |following |is |not |a |valid |deductible |for |hurricane |in |the |Dwelling |program? |- |VERIFIED |
ANSWER✔✔-1%
, If |a |loss |occurs |under |the |Building |and |Personal |Property |Coverage |Form |with |the |optional |
replacement |cost |provision, |how |long |does |the |insured |have |to |give |intent |to |replace |the |damaged |
item |in |order |to |receive |replacement |cost |adjustment? |- |VERIFIED |ANSWER✔✔-180
Which |of |the |following |is |NOT |a |common |deductible |in |an |Aircraft |Hull |Policy? |- |VERIFIED |
ANSWER✔✔-2%
How |many |insuring |agreements |are |there |in |a |Commercial |Crime |Policy? |- |VERIFIED |ANSWER✔✔-7
Barry |was |driving |his |car |in |Florida |where |he |has |lived |all |his |life |when |he |is |hit |by |an |at-fault |driver. |
Barry |has |$10,000 |in |medical |bills, |basic |PIP |with |a |$1,000 |deductible |and |no |medical |payments |
coverage. |How |much |will |the |at-fault |driver |have |to |pay |for |Barry's |injuries? |- |VERIFIED |ANSWER✔✔-
$2,800
- |$10,000 |- |$1,000 |= |$9,000 |x |80% |= |$7,200, |the |amount |paid |out |by |PIP. |Barry |can |hold |the |at-fault |
driver |responsible |for |the |difference |of |PIPs |maximum |limit |of |$10,000 |and |the |$7,200, |which |is |
$2,800
During |a |break-in |at |a |business, |the |safe |is |removed |from |the |location. |This |is |defined |as: |- |VERIFIED |
ANSWER✔✔-Safe |Burglary
The |Boiler |and |Machinery |Policy |provides |automatic |coverage |for |boilers |at |newly |acquired |locations |
for: |- |VERIFIED |ANSWER✔✔-90 |days
Which |of |the |following |statements |is |false |regarding |Co-Payment: |- |VERIFIED |ANSWER✔✔-Subject |to |
a |minimum |amount
Which |statement |below |best |describes |the |insured's |position |under |the |Florida |No-Fault |Law |when |
the |total |medical |and |work |loss |bill |exceeds |the |PIP |benefits |without |exceeding |a |threshold? |- |
VERIFIED |ANSWER✔✔-Insured |can |sue |for |the |economic |loss |not |paid |or |payable |under |PIP; |no |suit |
for |intangible |damages |such |as |pain |and |suffering
Established |in |1973, |this |association |was |created |for |applicants |who |are |unable |to |obtain |automobile |
insurance |in |the |private |market: |- |VERIFIED |ANSWER✔✔-FAJUA
Exam questions with correct answers 61pg
The |FAJUA |is |composed |of: |- |VERIFIED |ANSWER✔✔-All |companies |licensed |to |write |auto |insurance |in
|Florida
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: |- |VERIFIED |
ANSWER✔✔-Airport |and |Air |Meet |Liability
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: |- |VERIFIED |ANSWER✔✔-$29,000 |less |any |
deductible
Each |of |the |following |divisions |falls |under |The |Department |of |Financial |Services |EXCEPT? |- |VERIFIED |
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 |resulting |from |theft, |disappearance, |or |
destruction? |- |VERIFIED |ANSWER✔✔-Outside |the |Premises
What |is |the |standard |All |Perils |deductible |in |the |Commercial |Property |Policy? |- |VERIFIED |
ANSWER✔✔-$500
Which |of |the |following |best |describes |a |"Controlled" |Inland |Marine |Form? |- |VERIFIED |ANSWER✔✔-
Standard |provisions |form |is |written |according |to |filed |rules |and |rates
Under |a |Personal |Articles |Floater, |which |of |the |following |is |covered |as |valued |property? |- |VERIFIED |
ANSWER✔✔-Fine |Arts
Under |the |Dwelling |Program |forms, |vandalism |is |not |covered |after |the |building |has |been |vacant |for |
how |many |days? |- |VERIFIED |ANSWER✔✔-60 |days
,Under |a |Commercial |General |Liability |Contract, |how |many |days |notice |of |cancellation |must |the |
insurer |provide |for |non-payment |of |premium? |- |VERIFIED |ANSWER✔✔-10
Under |Additional |Coverages, |how |much |applies |for |loss |assessments |imposed |by |an |association |
against |the |insured |for |damage |to |property |caused |by |a |peril |insured |against |under |Coverage |A? |- |
VERIFIED |ANSWER✔✔-$1,000
The |following |are |basic |characteristics |of |a |Property |or |Liability |Insurance |Contract |EXCEPT: |- |VERIFIED
|ANSWER✔✔-Loss |Settlement |Contract
Rob |has |PIP |with |a |$1,000 |deductible. |He |has |an |auto |accident |causing |$6,000 |in |medical |bills. |How |
much |will |his |PIP |pay? |- |VERIFIED |ANSWER✔✔-$4,000
- |$6,000 |- |$1,000 |deductible |= |$5,000 |x |80% |= |$4,000
QRS |Construction |Company |wants |to |provide |the |local |school |district |with |a |price |for |building |a |new |
grammar |school. |In |order |to |accept |the |price, |the |school |board |needs |a |bond |that |would |pay |the |
difference |between |QRS's |price |and |the |next |highest |price. |What |kind |of |bond |does |QRS |need |to |
provide |to |the |school |district? |- |VERIFIED |ANSWER✔✔-Bid |bond
- |The |Bid |Bond |is |required |to |accompany |a |bid |for |a |contract |which |will |require |that |the |successful |
bidder |furnish |further |bond |if |awarded |the |job. |The |guarantee |is |that |if |the |bid |is |accepted, |the |
bidder |will |enter |into |the |contract |and |will |satisfy |further |bonding |requirements |for |the |job
Which |of |the |following |guarantees |the |payment |of |materials |in |full |upon |completion |of |the |work? |- |
VERIFIED |ANSWER✔✔-Payment |Bond
Which |of |the |following |events |would |be |covered |under |an |HO-3? |I. |A |sewer |line |became |clogged |and
|the |toilet |in |the |house |backed |up |and |overflowed, |damaging |the |carpet. |II. |Wind |blew |a |front |door |
open |and |rain |damaged |the |carpet. |III. |The |neighbor's |German |Shepard |damaged |the |garage |
doorframe |while |trying |to |get |in |the |insured's |garage |to |eat |the |dog |food |stored |there. |- |VERIFIED |
ANSWER✔✔-II |and |III |only
All |of |the |following |are |located |on |a |Boiler |and |Machinery |Coverage |form |EXCEPT: |- |VERIFIED |
ANSWER✔✔-Exhibits
,The |Motor |Truck |Cargo |Policy: |- |VERIFIED |ANSWER✔✔-Insures |a |truck |carrier |for |liability |arising |out |
of |the |transportation |of |cargo.
All |of |the |following |are |types |of |property |that |can |be |covered |under |a |Personal |Articles |Floater |
EXCEPT: |- |VERIFIED |ANSWER✔✔-Firearms
What |is |the |standard |deductible |for |Employee |Theft |coverage? |- |VERIFIED |ANSWER✔✔-$500
The |Forgery |or |Alteration |coverage |under |a |Businessowners |Policy |is: |- |VERIFIED |ANSWER✔✔-$2,000
How |many |hours |of |continuing |education |is |a |newly |licensed |agent |required |to |have |for |their |first |
Continuing |Education |compliance |period? |- |VERIFIED |ANSWER✔✔-24
Which |of |the |following |is |NOT |true |regarding |sole |proprietors |and |partners |in |the |non-construction |
industry |as |they |relate |to |Workers |Compensation? |- |VERIFIED |ANSWER✔✔-A |maximum |of |three |can |
elect |to |be |covered
Which |of |the |following |is |not |a |way |to |purchase |Uninsured |Motorist |Coverage? |- |VERIFIED |
ANSWER✔✔-More |than |your |bodily |injury |limits
Camden's |Wood |Shop |will |be |dropping |off |new |cabinets |at |a |jobsite |on |Monday, |but |will |not |actually |
install |them |until |Tuesday. |What |kind |of |policy |will |they |need |to |cover |any |loss |to |the |cabinets? |- |
VERIFIED |ANSWER✔✔-Installation |Floater
This |Hospital |Form |applies |with |"medical |incident" |defined |as |an |act |or |omission |in |furnishing |of |
professional |services |related |to |making |of |a |blood |donation |under |the |supervision |of |the |insured: |- |
VERIFIED |ANSWER✔✔-Blood |Banks
Which |of |the |following |is |not |a |valid |deductible |for |hurricane |in |the |Dwelling |program? |- |VERIFIED |
ANSWER✔✔-1%
, If |a |loss |occurs |under |the |Building |and |Personal |Property |Coverage |Form |with |the |optional |
replacement |cost |provision, |how |long |does |the |insured |have |to |give |intent |to |replace |the |damaged |
item |in |order |to |receive |replacement |cost |adjustment? |- |VERIFIED |ANSWER✔✔-180
Which |of |the |following |is |NOT |a |common |deductible |in |an |Aircraft |Hull |Policy? |- |VERIFIED |
ANSWER✔✔-2%
How |many |insuring |agreements |are |there |in |a |Commercial |Crime |Policy? |- |VERIFIED |ANSWER✔✔-7
Barry |was |driving |his |car |in |Florida |where |he |has |lived |all |his |life |when |he |is |hit |by |an |at-fault |driver. |
Barry |has |$10,000 |in |medical |bills, |basic |PIP |with |a |$1,000 |deductible |and |no |medical |payments |
coverage. |How |much |will |the |at-fault |driver |have |to |pay |for |Barry's |injuries? |- |VERIFIED |ANSWER✔✔-
$2,800
- |$10,000 |- |$1,000 |= |$9,000 |x |80% |= |$7,200, |the |amount |paid |out |by |PIP. |Barry |can |hold |the |at-fault |
driver |responsible |for |the |difference |of |PIPs |maximum |limit |of |$10,000 |and |the |$7,200, |which |is |
$2,800
During |a |break-in |at |a |business, |the |safe |is |removed |from |the |location. |This |is |defined |as: |- |VERIFIED |
ANSWER✔✔-Safe |Burglary
The |Boiler |and |Machinery |Policy |provides |automatic |coverage |for |boilers |at |newly |acquired |locations |
for: |- |VERIFIED |ANSWER✔✔-90 |days
Which |of |the |following |statements |is |false |regarding |Co-Payment: |- |VERIFIED |ANSWER✔✔-Subject |to |
a |minimum |amount
Which |statement |below |best |describes |the |insured's |position |under |the |Florida |No-Fault |Law |when |
the |total |medical |and |work |loss |bill |exceeds |the |PIP |benefits |without |exceeding |a |threshold? |- |
VERIFIED |ANSWER✔✔-Insured |can |sue |for |the |economic |loss |not |paid |or |payable |under |PIP; |no |suit |
for |intangible |damages |such |as |pain |and |suffering
Established |in |1973, |this |association |was |created |for |applicants |who |are |unable |to |obtain |automobile |
insurance |in |the |private |market: |- |VERIFIED |ANSWER✔✔-FAJUA
