Insurance Customer Service Rep 440
Exam Review Questions & Answers
Examples of Peril - ANSWERSFire, lightning, explosion, theft, windstorm, hail,
earthquake, flood, mischief or vandalism, or the sinking, burning, collision or derailment
of a conveying transport.
How long does one have to notify the Department of Financial Services for a Name
and/or Address Change? - ANSWERS30 days
Coinsurance Clause - ANSWERSReplacement cost applies to single family building
losses for an individual insured's principal residence (insured lives in the dwelling at
least 80% of the time and dwelling is insured for at least 80% of replacement cost).
Coinsurance Clause Example - ANSWERSIf a building valued at $250,000 is insured
with a policy containing an 80% coinsurance clause, the policyholder must purchase at
least $200,000 in coverage. If the policyholder purchased less than $200,000, he or she
would be responsible for a proportionate share of the loss.
What are the Minimum Requirements for the Financial Responsibility Law (there are
two)? - ANSWERSo (1) The legally valid claims of others must be satisfied (up to the
10/20/10 requirements).
o (2) The owner and operator must provide certification of financial responsibility for
future accidents (SR-22, discussed below).
Understand PIP and how it may apply to a given scenario (Review the PIP Activity). -
ANSWERSo Personal Injury Protection - Pays primary (excluding injuries related to
Workers Comp) for Bodily Injury to You and Relatives, regardless of fault. If a
passenger has insurance, their own PIP will pay out.
PIP Versus Workers Compensation: Which is excess? - ANSWERSo Florida courts
have held PIP is excess over Workers Compensation (in almost all cases when
Workers Compensation is involved, there won't be a need for both coverage's to pay
out).
, o Medical Payments coverage is issued on an excess basis to coordinate with PIP
coverage.
o Medical Payments would cover only amounts in excess of the 80% of reasonable
expenses covered by PIP.
Understand the Basic Pip Benefits. - ANSWERSMedical: 80%, Work Loss: 60%,
Replacement Services: 100%, Death: $5,000 IN ADDITION to the $10,000 in medical
and disability benefits afforded by PIP
How does PIP apply to Pedestrians: In and out of the State? - ANSWERSIn Florida -
The No-Fault Law has no applicability and usual legal remedies and other insurance
coverage's are to be relied upon.
Be able to identify examples of when "Other than Collision" (also referred to as
Comprehensive Coverage) is used. - ANSWERSHail Storm damages hood, animal runs
into car and windshield replacement are common examples of when this coverage is
used.
Losses from glass breakage, hitting a bird or animal, and falling objects or missiles
(although they are from collisions with another object) are covered
Be able to identify the penalties for not complying with the No-Fault Law. - ANSWERSo
(1) The owner is denied the immunities from legal liabilities that are granted to those
who comply.
o (2) The owner is personally liable for payment of PIP benefits to those entitled to such
benefits.
o (3) The owner's driver's license and vehicle registration are subject to suspension, as
under the Financial Responsibility Law.
Understand the PIP Death Benefit amount. - ANSWERSthe death benefit will be $5,000
IN ADDITION to the $10,000 in medical and disability benefits afforded by PIP.
The Financial Responsibility Law is administered by? - ANSWERSThe Financial
Responsibility Law is administered by the Department of Highway Safety and Motor
Vehicles.
Define the characteristics of a Homeowners Policy. - ANSWERSDeclarations, One of 6
Homeowners Forms, Covered Perils and Exclusions, Mandatory and Optional
Endorsements
Understand the benefits under the Workers Compensation Law. - ANSWERSMedical
Expenses, Disability Benefits, Death Benefits
Continuing Education requirements for a 4-40 License. - ANSWERS10 HOURS of
continuing education every two years.
Exam Review Questions & Answers
Examples of Peril - ANSWERSFire, lightning, explosion, theft, windstorm, hail,
earthquake, flood, mischief or vandalism, or the sinking, burning, collision or derailment
of a conveying transport.
How long does one have to notify the Department of Financial Services for a Name
and/or Address Change? - ANSWERS30 days
Coinsurance Clause - ANSWERSReplacement cost applies to single family building
losses for an individual insured's principal residence (insured lives in the dwelling at
least 80% of the time and dwelling is insured for at least 80% of replacement cost).
Coinsurance Clause Example - ANSWERSIf a building valued at $250,000 is insured
with a policy containing an 80% coinsurance clause, the policyholder must purchase at
least $200,000 in coverage. If the policyholder purchased less than $200,000, he or she
would be responsible for a proportionate share of the loss.
What are the Minimum Requirements for the Financial Responsibility Law (there are
two)? - ANSWERSo (1) The legally valid claims of others must be satisfied (up to the
10/20/10 requirements).
o (2) The owner and operator must provide certification of financial responsibility for
future accidents (SR-22, discussed below).
Understand PIP and how it may apply to a given scenario (Review the PIP Activity). -
ANSWERSo Personal Injury Protection - Pays primary (excluding injuries related to
Workers Comp) for Bodily Injury to You and Relatives, regardless of fault. If a
passenger has insurance, their own PIP will pay out.
PIP Versus Workers Compensation: Which is excess? - ANSWERSo Florida courts
have held PIP is excess over Workers Compensation (in almost all cases when
Workers Compensation is involved, there won't be a need for both coverage's to pay
out).
, o Medical Payments coverage is issued on an excess basis to coordinate with PIP
coverage.
o Medical Payments would cover only amounts in excess of the 80% of reasonable
expenses covered by PIP.
Understand the Basic Pip Benefits. - ANSWERSMedical: 80%, Work Loss: 60%,
Replacement Services: 100%, Death: $5,000 IN ADDITION to the $10,000 in medical
and disability benefits afforded by PIP
How does PIP apply to Pedestrians: In and out of the State? - ANSWERSIn Florida -
The No-Fault Law has no applicability and usual legal remedies and other insurance
coverage's are to be relied upon.
Be able to identify examples of when "Other than Collision" (also referred to as
Comprehensive Coverage) is used. - ANSWERSHail Storm damages hood, animal runs
into car and windshield replacement are common examples of when this coverage is
used.
Losses from glass breakage, hitting a bird or animal, and falling objects or missiles
(although they are from collisions with another object) are covered
Be able to identify the penalties for not complying with the No-Fault Law. - ANSWERSo
(1) The owner is denied the immunities from legal liabilities that are granted to those
who comply.
o (2) The owner is personally liable for payment of PIP benefits to those entitled to such
benefits.
o (3) The owner's driver's license and vehicle registration are subject to suspension, as
under the Financial Responsibility Law.
Understand the PIP Death Benefit amount. - ANSWERSthe death benefit will be $5,000
IN ADDITION to the $10,000 in medical and disability benefits afforded by PIP.
The Financial Responsibility Law is administered by? - ANSWERSThe Financial
Responsibility Law is administered by the Department of Highway Safety and Motor
Vehicles.
Define the characteristics of a Homeowners Policy. - ANSWERSDeclarations, One of 6
Homeowners Forms, Covered Perils and Exclusions, Mandatory and Optional
Endorsements
Understand the benefits under the Workers Compensation Law. - ANSWERSMedical
Expenses, Disability Benefits, Death Benefits
Continuing Education requirements for a 4-40 License. - ANSWERS10 HOURS of
continuing education every two years.
