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Property and Casualty Insurance Producer Exam

Policies and cancellation (FL): practice questions

Our Property & Casualty Insurance bank has 8 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Florida

Under Fla. Stat. 627.4133, cancellation of a non-auto P&C policy for nonpayment of premium requires at least:

  1. 10 days' written notice
  2. 5 days' notice
  3. 30 days' notice
  4. 45 days' notice
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A. 10 days' written notice — Fla. Stat. 627.4133(1)(b)1.: when cancellation is for nonpayment of premium, at least 10 days' written notice.

Question 2 · Florida

A Florida insurer cancelling a P&C policy (other than auto) for reasons other than nonpayment must generally give the first-named insured how much notice?

  1. At least 10 days
  2. At least 20 days
  3. At least 90 days
  4. At least 45 days, with the reasons
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D. At least 45 days, with the reasons — Fla. Stat. 627.4133(1)(b): written notice of cancellation at least 45 days before the effective date, with the reasons; at least 10 days for nonpayment.

Question 3 · Florida

In Florida, a notice of nonrenewal or cancellation must include:

  1. Only the effective date of the cancellation or nonrenewal
  2. A copy of the policy
  3. A refund check in every case
  4. The specific reasons, including underwriting reasons
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D. The specific reasons, including underwriting reasons — Fla. Stat. 627.4091(2): each notice of nonrenewal or cancellation must be accompanied by the specific reasons, including specific underwriting reasons.

Question 4 · Florida

Under Florida's valued policy law, when a covered peril causes a total loss of an insured building, the insurer generally pays:

  1. Actual cash value only, after depreciation is subtracted
  2. The full amount of insurance on the building
  3. The mortgage balance
  4. 80 percent of the limit
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B. The full amount of insurance on the building — Fla. Stat. 627.702(1)(a): for a total loss of a building by a covered peril, the insurer's liability is the amount of money for which the property was insured.

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