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2-20 Exam Flash Cards Questions and Answers 100% Solved
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2-20 Exam Flash Cards
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2-20 Exam Flash CardsC: an insurable interest - answer1.If someone would suffer economic loss from damage
to their property, they have:
A: a subrogation right
B: a proximate cause
C: an insurable interest
D: a contingent claim
B - binder - answer2. A convenience used to provide temporary insurance is called:
A - Insurance
B - binder
C- property coverage
D- liability coverage
B: Concealment - answer3. The failure of the insured to reveal a known fact to the
insurer, which would have had an adverse effect on the policy being issued is:
A: Waiver
B: Concealment
C: Warranty
D: Misrepresentation
D: Liability coverage - answer4. Insurance where payment is made on behalf of the
insured to another party is called:
A: Adverse selection
B: Binder
C: Property coverage
D: Liability coverage
B: Liberalization - answer5. When the insurer adopts a provision providing broader
coverage without additional premium, and the broader coverage automatically applies to
the existing policy, it is called:
A: Apportionment
B: Liberalization
C: Appraisal
D: Abandonment
C: Property coverage - answer6. Any insurance where the insurer pays the insured or
some other named interest directly is called:
A: Adverse selection
B: Binder
C: Property coverage
,D: Liability coverage
A- Misrepresentation - answer7. Knowingly making a false or fraudulent statement on
an application is known as:
A- Misrepresentation
B- Twisting
C- Sliding
D- Rebating
B- 48 months (2 years) - answer8. If licensee fails to be appointed they are subject to
losing their license. What period of time will trigger the termination of a license for failure
to maintain an appointment?
A- 12 months
B- 48 months
C- 6 months
D-36 months
B- Controlled business - answer9. To obtain a license for the purpose of writing
insurance only on family members or business relationship is known as:
A- Unfair discrimination
B- Controlled business
C- Collateral business
D- Rebating
B- 30 days - answer10. If a licensee changes their name, residence address or
business address, they must notify the Department of Insurance within:
A- 10 days
B- 30 days
C- 45 days
D- 90 days
D- Agent must maintain a rebate schedule for two years - answer11.Agents in the state
of Florida may rebate a portion of their commissions to the customer. The agent must
meet all of the following, EXCEPT:
A- Available to all insured's in the same actuarial class
B- The rebate schedule must be filed with the insurer
C- Rebate schedule must be posted in the agency
D- Agent must maintain a rebate schedule for two years
D- Properties over 50 years old (if roof and wiring updated) - answer12. All of the
following are ineligible for coverage with Citizens Property Insurance Corporation,
EXCEPT:
A- Vacant properties
B- Properties in disrepair
C- Properties built over water
D- Properties over 50 years old
,D- Replacement Cost on Personal Property - answer13.Citizens Property Insurance
Corporation uses standard homeowners forms, however, there is very limited
endorsement availability. Which of the following endorsements is available?
A- Scheduled Personal Property
B- Home Daycare
C- Personal Injury
D- Replacement Cost on Personal Property
A- Animal liability coverage - answer14. All of the following coverages are available in
the policies issued through Citizens Property Insurance Corporation, EXCEPT:
A- Animal liability coverage
B- Loss of use coverage
C- Other structures coverage
D- Damage to property of others
D) Twisting - answer16.Knowingly making any misleading representations or incomplete
or fraudulent comparisons of any insurance policy with the intent of inducing a person to
cancel or lapse an insurance policy is known as:
A) Misrepresentation
B) Coercion
C) Sliding
D) Twisting
D) Licensed customer service representative - answerA General Lines Agent may share
his commission with all of the following except:
A) Incorporated insurance agency
B) Non-resident general lines agent
C) Resident general lines agent
D) Licensed customer service representative
B) Medical Payments Coverage - answer18. All of the following are eligible coverages
for commercial automobile in the Florida Auto Joint Underwriting Association except:
A) Liability Coverage
B) Medical Payments Coverage
C) Uninsured Motorist Coverage
D) PIP
C- 24 - answer19. A General Lines agent who has been licensed less than six years
from the beginning of their compliance period must satisfy continuing education every
two years. How many hours are they required to complete?
A- 14
B- 20
C- 24
D- 30
, C- Alien - answer20.An insurance company formed in London which conducts business
in Florida, is known as:
A- Domestic
B- Foreign
C- Alien
D- International
C- Regulation, compliance and enforcement of laws related to insurance - answer21.
Under the CFO, the Office of Insurance Regulation has responsibility for which:
A- Legislation regarding insurance
B- Adjudication of matters regarding insurance
C- Regulation, compliance and enforcement of laws related to insurance
D- Managing licensed entities in insurance
B- Foreign - answer22. An insurance company formed in any state, other than Florida,
is known as:
A- Domestic
B- Foreign
C- Alien
D- Mutual
C- 20 - answer23. A General Lines Agent who has been licensed more than six years
from the beginning of their compliance period must satisfy continuing education every
two years. How many hours are they required to complete?
A- 28
B- 21
C- 20
D- 15
C- Make rating and underwriting rules.
(The OIR doesn't make the rating and underwriting rules, they audit them to ensure
compliance w/ the law) - answer24. The Office of Insurance Regulation does all of the
following EXCEPT:
A- Review rules and rates to ensure compliance with Florida law.
B- Approve policy forms.
C- Make rating and underwriting rules.
D- Examine the qualifications of insurance companies.
A- FAJUA - answer25. A syndicate composed of all licensed companies in Florida which
write auto insurance is correctly called which:
A- FAJUA
B- Citizens
C- FWCJUA
D- MEWA
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