FLORIDA 2-20 AGENTS LICENSE EXAM QUESTIONS
The Florida Surplus Service Lines Office (FSLSO) was created to - Answers -oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
Answers -Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - Answers -
Pays insurance claims
Once license, you have how long to obtain an appointment? - Answers -48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? - Answers -
Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - Answers -Contractors must usually
provide evidence of liability insurance before a construction contract is granted.
From a risk management viewpoint, insurance is used to - Answers -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 - Answers -
Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by
insurance? - Answers -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 - Answers -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? - Answers -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 -
Answers -Personal liability insurance.
,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, -
Answers -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: - Answers -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? - Answers -$1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - Answers -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 -
Answers -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? - Answers -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)? - Answers -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 - Answers -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 - Answers -
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? - Answers -$1,500
The Florida Valued Policy Law applies to: - Answers -mobile homes
For a Dwelling Flood policy, which is correct: - Answers -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? - Answers -$0
One of the main factors used in developing a base premium for a homeowners policy is
- Answers -The public protection class.
Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage is $35,000.
Ignoring any deductible that may apply, how much will Bert and Maggie's insurer pay to
replace the detached garage? - Answers -$30,000
Coverage for other structures is automatically provided under the HO-3—Special Form
(HO-3) policy with a limit that is - Answers -10 percent of the Coverage A limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a
Coverage C—Personal Property limit of $100,000. She owns a secondary residence
that contains $15,000 of personal property. Only her primary residence is listed on the
declarations page of the HO-3 policy. A fire destroys all of Renee's personal property at
her secondary residence. How much of this loss will be paid by Renee's HO-3 policy? -
Answers -$10,000
A homeowners policy premium is determined by first developing the base premium. The
base premium is influenced by certain factors, including which one of the following? -
Answers -Dwelling location
Ralph has an unendorsed HO-3—Special Form (HO-3) policy. While coming home from
a coin show, Ralph discovers that his automobile was broken into and a package
containing $2,000 in coins, some tools, and groceries was stolen. Disregarding any
deductible that may apply, will Ralph's HO-3 insurer pay for the loss of the coins? -
Answers -Yes, the coins are covered up to a specified limit.
The Florida Surplus Service Lines Office (FSLSO) was created to - Answers -oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
Answers -Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - Answers -
Pays insurance claims
Once license, you have how long to obtain an appointment? - Answers -48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? - Answers -
Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - Answers -Contractors must usually
provide evidence of liability insurance before a construction contract is granted.
From a risk management viewpoint, insurance is used to - Answers -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 - Answers -
Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by
insurance? - Answers -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 - Answers -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? - Answers -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 -
Answers -Personal liability insurance.
,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, -
Answers -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: - Answers -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? - Answers -$1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - Answers -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 -
Answers -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? - Answers -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)? - Answers -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 - Answers -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 - Answers -
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? - Answers -$1,500
The Florida Valued Policy Law applies to: - Answers -mobile homes
For a Dwelling Flood policy, which is correct: - Answers -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? - Answers -$0
One of the main factors used in developing a base premium for a homeowners policy is
- Answers -The public protection class.
Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage is $35,000.
Ignoring any deductible that may apply, how much will Bert and Maggie's insurer pay to
replace the detached garage? - Answers -$30,000
Coverage for other structures is automatically provided under the HO-3—Special Form
(HO-3) policy with a limit that is - Answers -10 percent of the Coverage A limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a
Coverage C—Personal Property limit of $100,000. She owns a secondary residence
that contains $15,000 of personal property. Only her primary residence is listed on the
declarations page of the HO-3 policy. A fire destroys all of Renee's personal property at
her secondary residence. How much of this loss will be paid by Renee's HO-3 policy? -
Answers -$10,000
A homeowners policy premium is determined by first developing the base premium. The
base premium is influenced by certain factors, including which one of the following? -
Answers -Dwelling location
Ralph has an unendorsed HO-3—Special Form (HO-3) policy. While coming home from
a coin show, Ralph discovers that his automobile was broken into and a package
containing $2,000 in coins, some tools, and groceries was stolen. Disregarding any
deductible that may apply, will Ralph's HO-3 insurer pay for the loss of the coins? -
Answers -Yes, the coins are covered up to a specified limit.
