Florida 2-20 Agents License UPDATED Exam Questions and CORRECT Answers
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Florida 2-20 agents license
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Florida 2-20 Agents License
Florida 2-20 Agents License UPDATED
Exam Questions and CORRECT Answers
The Florida Surplus Service Lines Office (FSLSO) was created to - CORRECT ANSWERoversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
CORRECT AN...
Florida 2-20 Agents License UPDATED
Exam Questions and CORRECT Answers
The Florida Surplus Service Lines Office (FSLSO) was created to - CORRECT ANSWER-
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
CORRECT ANSWER- Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - CORRECT
ANSWER- Pays insurance claims
Once license, you have how long to obtain an appointment? - CORRECT ANSWER- 48
months
Which of the following is NOT a duty of the Office of Insurance Regulation? - CORRECT
ANSWER- Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - CORRECT ANSWER- Contractors must
usually provide evidence of liability insurance before a construction contract is granted.
From a risk management viewpoint, insurance is used to - CORRECT ANSWER- 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 - CORRECT
ANSWER- Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by
insurance? - CORRECT ANSWER- 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 - CORRECT ANSWER- 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? - CORRECT ANSWER- 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 - CORRECT
ANSWER- 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 - CORRECT ANSWER- 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 - CORRECT ANSWER- 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 - CORRECT ANSWER-
The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial condition is the
process of - CORRECT ANSWER- Indemnification
Sometimes the existence of insurance encourages losses. The result of this phenomenon is
that it - CORRECT ANSWER- 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 - CORRECT
ANSWER- Disability insurance.
,Which of the following is/are not a "your covered auto" under a Personal Auto Policy for
Liability? - CORRECT ANSWER- 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? - CORRECT
ANSWER- $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)? - CORRECT ANSWER- 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, - CORRECT
ANSWER- 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: - CORRECT ANSWER- 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? - CORRECT ANSWER-
$1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - CORRECT ANSWER- 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 -
CORRECT ANSWER- 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? -
CORRECT ANSWER- 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)? - CORRECT ANSWER- 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 - CORRECT ANSWER- 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 - CORRECT ANSWER- 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? -
CORRECT ANSWER- $1,500
The Florida Valued Policy Law applies to: - CORRECT ANSWER- mobile homes
For a Dwelling Flood policy, which is correct: - CORRECT ANSWER- 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
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