FLORIDA PERSONAL LI NES LICENSE

FLORIDA PERSONAL LI NES LICENSE

EXAM LATEST -

EXAM 300 QUESTIONS AND CORRECT

ANSWERS|AGRADE

This endorsement is only available in the policy includes other than collision coverage. This endorsement will reimburse the insured for a rental charges incurred because the covered auto is out of use because of a covered loss.

while an insured covered auto is in the repair shop following damage by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?

• Any vehicle not owned by the insured, but furnished for use while the covered

auto is out of normal use because of repair

• Any vehicle use by the insured without the reasonable belief that the insured is

entitled to use such vehicle

• Any auto furnished for the insured's regular use, but not named on the policy
• Any vehicle while located inside a racing facility for the purpose of racing -

ANSWER- A. Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

The Florida automobile joint underwriting association (FAJUA) is a market source for person unable to purchase auto insurance thought the standard markets. All of the following statements concerning (FAJUA) are TRUE, EXCEPT

• Agents do not have binding Authority
• Coverage is available to military nonresident stationed in Florida.
• Private passenger auto are eligible for liability coverage with limits up to

100/300/50, PIP, U/M.

• Each licensed agent in Florida is assigned to one of the servicing carries with

which the agent places all risks to be insured in FAJUA - ANSWER- A. Agents do not have binding Authority

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Agents have authority to immediately bind coverage upon securing a completed and signed application upon payment of the require premium deposit by the applicant.

If a person is using auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT

• no fault medical payments
• Liability
• Physical Damage
• Uninsured Motorist - ANSWER- C. Physical Damage

Subrogation rights do NOT apply to physical damage coverage if the damage is caused by a person using the auto with a reasonable belief that they were entitled to do so.

what type of information would be found in a policy's insuring agreement?

• Insurers' address
• Renewal Dates
• Location of premises
• Policy limts - ANSWER- B. Renewal Dates

The insuring agreement lists the parties to the contract, effective and renewal dates, the description of coverage provided, and perils (among other things). Location of premises, policy limits, supplemental representations, and insurer's name and address can all be found in the Declarations.

A neighbor's tree has fallen into the insured's yard. The insured's homeowners policy will only pay to remove the tree if a)The damage is more than $1,000.b)The neighbor has no homeowners insurance.c)The tree has caused damage to the insured's vehicle.d)The tree is blocking the driveway. - ANSWER- d)The tree is blocking the driveway.

An insured's homeowners policy will pay up to $1,000 to remove from premises if a neighbor's tree fell by a covered peril, or if the tree blocks a driveway or handicapped ramp, even if no damage to a covered structure has occurred.

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A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called?

• Binder
• Proof of lose
• Notice of Claim
• Claim Report - ANSWER- B. Proof of lose

Proof of loss is a sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid. Proof of loss must be in writing.

According to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss?a)Policyholder b)Mortgagee c)Insurance company d)Governor - ANSWER- b)Mortgagee

The standard mortgage clause, a basis provision of all property policies for real property, also ensures that mortgagees have the right to receive prior notice if an insurance policy is to be cancelled.

An agent transacts business for Insurer A and Insurer B, both selling life insurance, and for Insurer C, selling health insurance. How many appointments must the agent hold?a)No appointments are required.b)Only one - for any of the insurers c)Two - one for life and one for health d)Three - one for each insurer - ANSWER- d)Three - one for each insurer

An agent must have a separate appointment for each insurer.

Which of the following losses would NOT be covered by a homeowners policy?a)A coin collection valued at $500 lost in a fire b)A $550 utility trailer blown away by a tornado c)A stolen silver tea set worth $2,000 d)A $800 outboard motor destroyed by hail - ANSWER- a)A coin collection valued at $500 lost in a fire 3 / 4

An HO policy will pay up to $2,500 for silverware by theft, $1,500 for boats, motors, trailers, $1,500 for loss of trailers not used with boats, but no more than $200 for coins.

Which of the following does the term proximate cause refer to?

a)Reason for filing a lawsuit b)Negligence that leads to an injury c)Injury that leads to monetary compensation d)Duty of the defendant to act - ANSWER- b)Negligence that leads to an injury

Proximate cause is the reasonably foreseeable act or event that results in an injury or damage. Negligence may often be the proximate cause of the damage; without it, the accident would not have happened. This is also called direct liability.

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?

a)$25 b)$50 c)$75 d)$100 - ANSWER- a)$25

This endorsement provides a basic limit of $25 for towing and labor costs incurred at the place a vehicle is disabled. Higher limits are available for an additional premium.

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

a)To extend coverage to motorized vehicles rented for recreation b)To expand the definition of a covered auto to include various motorized vehicles c)To limit coverage to various motorized vehicles only d)To provide coverage for hit-and-run accidents The miscellaneous type vehicle endorsement is used to - ANSWER- B.) to expand the definition of a covered auto to a include various motorized vehicles

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