1 Exampromax - Stuvia US
20-44 Personal Lines Agent PreXam Flashcards
ALL SETS Questions and Answers 100%
Correct Answers Already Graded A+
Q: the cost to replace an item or property at the time of loss, minus
depreciation
Ans: Actual Cash Value (ACV)
Q: a type of policy limit which limits coverage to a specified total amount
for all losses occuring w/in the policy period
Exampromax - Stuvia US
Ans: Aggregate Limit
Q: conviction of a 3rd degree felony, liability for all unpaid claims,
suspencion or revocation of all insurance licenses
Ans: Aiding and Abetting an unathorized insurer
Q: insurer other than a domestic or foreign insurer
Ans: Alien
Q: "open perils" insurance - protecting the insured from loss arising from
any peril other than those perils specifically excluded by name
Ans: All Risk Insurance
Q: the authority given by an insurer or employer to a licensee to transact
insurance or adjust claims on behalf of an insurer or employer
Ans: Appointment
Q: in the event the insured and the insurer cannot agree on amount of
claim settlement, each appoints an appraiser
, 2 Exampromax - Stuvia US
Ans: Appraisal Clause
Q: policy transfer from one insured to another
Ans: Assignment
Q: one authorized by a subsisting certificate of authority issued by the
department to transact insurance in this state
Ans: Authorized insurer
Q: an oral/written statement providing immediate insurance protection,
valid for a specified period. Designed to provide temporary coverage until a
policy can be issued or denied
Ans: Binder
Exampromax - Stuvia US
Q: single amount of coverage applies to ANY loss of injury up to the single
amount
Ans: Blanket Insurance
Q: a method of determing the true insurable worth of a structure or vehicle
according to any measure that will prvoide the most accurate analysis of
that property's value
Ans: Broad Evidence Rule
Q: an originating general lines agent placing business w/ a company w/
which he/she is not appointed
Ans: Brokering Agent
Q: monitors the conduct of insurers as it realtes to policyholder treatment
Ans: Bureau of Market Conduct
Q: insurer may cancel only for non payment of premium, material
misrepresentation or fraud, or suspension or revocation of the DL or
registration of vehicle.
, 3 Exampromax - Stuvia US
Ans: Cancellation after 60 days of new policy or renewal
Q: F.S states an insurer can cancel for any reason except discrimination
with respect to race, color, national origin, creed, marital status or sex.
Ans: Cancellation during the first 60 Days of a new policy
Q: a company that provides risk mitigation services for its parent company
Ans: Captive Insurance Company
Q: specifies what perils are insured against and lists exclusions. Several
different versions provide increasingly broad coverage from Basic to Broad
to special.
Ans: Causes of Loss Form
Exampromax - Stuvia US
Q: - act as an insurer - transact insurance (directly or indirectly) - solicit
insurance applications If does so w/out certificate, commits 3rd degree
felony
Ans: Certificate of Authority
Q: the head of the department of financial services, also known as the
treasurer.
Ans: Chief Financial Officer
Q: Merged together in 2001 from FRPCJUA and FWUA to provide a
market for those residential Properties unable to obtain Coverage in
Voluntary market
Ans: Citizens
Q: lower rates for insureds who insure a high percentage of the value of the
subject property
Ans: Coinsurance
Q: requires insured to pay part of loss if coverage is less than the specified
percentage of the value of the property at the time of loss FORMULA: Loss
, 4 Exampromax - Stuvia US
x (Limit of Insurance/Value of Property x Coinsurance %) = Loss
Settlement
Ans: Coinsurance Clause
Q: Loss X Limits of insurance/value of property x coinsurance percentage
= Loss Settlement
Ans: Coinsurance Formula
Q: - foreign or alien insurer authorized to do business in this state - during 3
fiscal years - written avg 25%+ direct premiums in this state than in state of
domicile - direct premiums are 55%+ of its total premiums written in U.S.
during 3 fiscal years
Ans: Commercially Domiciled Insurer
Exampromax - Stuvia US
Q: reduces a plaintiff's damages by the plaintiff's degree of negligence
Ans: Comparative Negligence Rule
Q: Property and liability insurance Policies are said to be conditional
contracts because the obligation OR the insurer to perform may be
condition Upon the insured satisfying Certain conditions.
Ans: Conditional Contract
Q: Parties are of un equal bargain power. and one party (the insured)
cannot negotiate the terms. having to take the offer of the other party (the
insurer) as made
Ans: Contract of Adhesion
Q: if one contributed to their own injuries in any way, they could not
recover a dime from others
Ans: Contributory Negligence Rule
Q: when the majority of insurance written is for family members
Ans: Controlled Business
20-44 Personal Lines Agent PreXam Flashcards
ALL SETS Questions and Answers 100%
Correct Answers Already Graded A+
Q: the cost to replace an item or property at the time of loss, minus
depreciation
Ans: Actual Cash Value (ACV)
Q: a type of policy limit which limits coverage to a specified total amount
for all losses occuring w/in the policy period
Exampromax - Stuvia US
Ans: Aggregate Limit
Q: conviction of a 3rd degree felony, liability for all unpaid claims,
suspencion or revocation of all insurance licenses
Ans: Aiding and Abetting an unathorized insurer
Q: insurer other than a domestic or foreign insurer
Ans: Alien
Q: "open perils" insurance - protecting the insured from loss arising from
any peril other than those perils specifically excluded by name
Ans: All Risk Insurance
Q: the authority given by an insurer or employer to a licensee to transact
insurance or adjust claims on behalf of an insurer or employer
Ans: Appointment
Q: in the event the insured and the insurer cannot agree on amount of
claim settlement, each appoints an appraiser
, 2 Exampromax - Stuvia US
Ans: Appraisal Clause
Q: policy transfer from one insured to another
Ans: Assignment
Q: one authorized by a subsisting certificate of authority issued by the
department to transact insurance in this state
Ans: Authorized insurer
Q: an oral/written statement providing immediate insurance protection,
valid for a specified period. Designed to provide temporary coverage until a
policy can be issued or denied
Ans: Binder
Exampromax - Stuvia US
Q: single amount of coverage applies to ANY loss of injury up to the single
amount
Ans: Blanket Insurance
Q: a method of determing the true insurable worth of a structure or vehicle
according to any measure that will prvoide the most accurate analysis of
that property's value
Ans: Broad Evidence Rule
Q: an originating general lines agent placing business w/ a company w/
which he/she is not appointed
Ans: Brokering Agent
Q: monitors the conduct of insurers as it realtes to policyholder treatment
Ans: Bureau of Market Conduct
Q: insurer may cancel only for non payment of premium, material
misrepresentation or fraud, or suspension or revocation of the DL or
registration of vehicle.
, 3 Exampromax - Stuvia US
Ans: Cancellation after 60 days of new policy or renewal
Q: F.S states an insurer can cancel for any reason except discrimination
with respect to race, color, national origin, creed, marital status or sex.
Ans: Cancellation during the first 60 Days of a new policy
Q: a company that provides risk mitigation services for its parent company
Ans: Captive Insurance Company
Q: specifies what perils are insured against and lists exclusions. Several
different versions provide increasingly broad coverage from Basic to Broad
to special.
Ans: Causes of Loss Form
Exampromax - Stuvia US
Q: - act as an insurer - transact insurance (directly or indirectly) - solicit
insurance applications If does so w/out certificate, commits 3rd degree
felony
Ans: Certificate of Authority
Q: the head of the department of financial services, also known as the
treasurer.
Ans: Chief Financial Officer
Q: Merged together in 2001 from FRPCJUA and FWUA to provide a
market for those residential Properties unable to obtain Coverage in
Voluntary market
Ans: Citizens
Q: lower rates for insureds who insure a high percentage of the value of the
subject property
Ans: Coinsurance
Q: requires insured to pay part of loss if coverage is less than the specified
percentage of the value of the property at the time of loss FORMULA: Loss
, 4 Exampromax - Stuvia US
x (Limit of Insurance/Value of Property x Coinsurance %) = Loss
Settlement
Ans: Coinsurance Clause
Q: Loss X Limits of insurance/value of property x coinsurance percentage
= Loss Settlement
Ans: Coinsurance Formula
Q: - foreign or alien insurer authorized to do business in this state - during 3
fiscal years - written avg 25%+ direct premiums in this state than in state of
domicile - direct premiums are 55%+ of its total premiums written in U.S.
during 3 fiscal years
Ans: Commercially Domiciled Insurer
Exampromax - Stuvia US
Q: reduces a plaintiff's damages by the plaintiff's degree of negligence
Ans: Comparative Negligence Rule
Q: Property and liability insurance Policies are said to be conditional
contracts because the obligation OR the insurer to perform may be
condition Upon the insured satisfying Certain conditions.
Ans: Conditional Contract
Q: Parties are of un equal bargain power. and one party (the insured)
cannot negotiate the terms. having to take the offer of the other party (the
insurer) as made
Ans: Contract of Adhesion
Q: if one contributed to their own injuries in any way, they could not
recover a dime from others
Ans: Contributory Negligence Rule
Q: when the majority of insurance written is for family members
Ans: Controlled Business
