Exam (elaborations)

Florida 2-20 Agents License Exam Questions and Answers 2023 Graded A

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Florida 2-20 agents license

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Florida 2-20 Agents License

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Uploaded on August 19, 2023
Number of pages 26
Written in 2023/2024
Type Exam (elaborations)
Contains Questions & answers

florida 2 20 agents license exam questions and ans

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Florida 2-20 Agents License Exam Questions and Answers
2023 Graded A
The Florida Surplus Service Lines Office (FSLSO) was created to
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent:
Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT:
Pays insurance claims
Once license, you have how long to obtain an appointment?
48 months
Which of the following is NOT a duty of the Office of Insurance Regulation?
Submit rate filings and underwriting rules for approval
Which one of the following statements is correct?
Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to
Transfer the cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically provided
by
Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided
by insurance?
Insurance helps reduce the financial burden to society by compensating accident
victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through
Noninsurance transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans
to drive it to special events at schools around the country where it will serve as a
mobile billboard to promote his product. Oscar is surprised to learn that insurers
are reluctant to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is Oscar's vehicle least
likely to meet?
Large number of similar exposure units
Liability coverage to individuals and families for bodily injury and property
damage arising from the insured's personal premises or activities is typically
provided by
Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and drives to work
daily in the city. She recognizes that owning a car creates both property damage
and liability exposures for her and at the same time she has the burden of student
loans. For someone in Sally's circumstances the most practical risk management
technique for dealing with her auto-related loss exposures is

,Risk transfer.
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be
used elsewhere and making other productive contributions to
Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is
The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of
Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it
Increases the total cost of insurance
A small business owner concerned about something happening and not being
able to work or earn a living for an extended period of time due to an accident
should purchase
Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto
Policy for Liability?
The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who
just got his license.
Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her
care. Joe is driving her car, loses control; and hits a tree. Joe is hurt with $15,000
in medical bills. What is the maximum Joe can collect from UM from all sources
from this accident?
$0
Keith commutes into the city in his car, and he provides a ride to two co-workers
who live near him. Every other week, the co-workers take turns buying the
gasoline for Keith's car. Does this activity create a public or livery conveyance
situation that would preclude liability coverage under Keith's Personal Auto
Policy (PAP)?
No, because Keith is involved in a share-the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy
(PAP), each from a different insurer. In the event of a claim for medical payments
coverage,
Each insurer pays its pro rata share based on the proportion that its limit of liability
bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT:
Limit of Liability
Tom and Martha insure their house with an unendorsed HO-3—Special Form (HO-
3) with a Coverage A—Dwelling limit of $300,000, which is the replacement cost of
the house. A thief breaks into the house while Tom and Martha are on vacation
and steals the following items: •$500 cash•$50,000 stock certificates. Ignoring any

, deductible that may apply, how much, if any, will Tom and Martha's insurer pay
for the loss of the items?
$1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition
Establishes the process for determining the amount to be paid for a property loss.
Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3)
that is destroyed, confiscated, or seized by order of any governmental or public
authority is
Excluded.
Adam and his insurer disagree on the amount of a loss covered by his
homeowners policy. Adam wants the insurer to pay $10,000 toward the loss. The
insurer's representative feels that the loss should be valued at $5,000. How could
the appraisal process resolve this situation?
Adam and the insurer will each select an appraiser, and the two appraisers will submit
their differences to an impartial umpire who will reach a resolution.
Which one of the following has special limits of liability within Coverage C of the
HO-3—Special Form (HO-3)?
Theft of firearms
A storm causes power lines to break ten miles from the insured's premises. The
loss of electrical power causes food in the insured's freezer to thaw and spoil.
Coverage for this loss is
Excluded because the power failure occurred off the residence premises.
If law enforcement officials seize an insured's personal computer to search for
files that might be related to a crime, the insured under an HO-3—Special Form
(HO-3) may be unsuccessful in claiming a theft loss on the computer due to the
Governmental Action exclusion.
Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-
3) policy. Sam stores a small fishing boat and trailer behind the house. While they
are out for the evening, a fire destroys most of their kitchen and completely
destroys the boat and trailer. Assuming Sam's boat and trailer are valued at
$4,000 and ignoring any deductible that may apply, what amount will their HO-3
insurer pay for the loss of the boat and trailer?
$1,500
The Florida Valued Policy Law applies to:
mobile homes
For a Dwelling Flood policy, which is correct:
Primary residences are covered at replacement cost on building losses.
Sally insures her house with an unendorsed HO-3—Special Form (HO-3) with a
Coverage A—Dwelling limit of $275,000, which is the replacement cost of the
house. A fire destroys the house including a collection of blueprints belonging to
Sally's employer, valued at $10,000. Sally was storing the blueprints at her home
while her office was changing locations. Assuming no deductible applies, how
much, if any, will Sally's HO-3 insurer pay to replace the blueprints?
$0

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Exam (elaborations)

Florida 2-20 Agents License Exam Questions and Answers 2023 Graded A

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