FLORIDA 2-20 AGENT LICENSE ACTUAL FINAL EXAM AND NEWEST
STUDY GUIDE 2026 COVERING THE RECENT AND MOST TESTED 300
QUESTIONS AND CORRECT ANSWERS
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? - correct answer -$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? - correct answer -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? - correct answer -Yes, the coins are covered up to a specified limit.
Jim and Sue, a young married couple, are under contract to purchase a condominium unit. Which one of
the following ISO policy forms is best designed to meet their homeowners insurance needs? - correct
answer -HO-6—Unit-Owners Form
Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains
$2,500 in medical bills, $3,000 damage to the laptop he was carrying, and $1,000 in lost wages. Allen's
business auto policy has $100,000 liability limit and $5,000 medical payments limit. Assuming there is no
other coverage, how much will his business auto policy pay? - correct answer -$2,500
An animal damaged the interior of an insured's automobile while it was parked with the windows down.
Which one of the following types of physical damage coverage under the Business Auto Coverage Form
would cover this loss? - correct answer -Comprehensive
Martha drives her auto, which is insured under a Business Auto Coverage Form, outside the state in
which it is licensed. The other state requires a $25,000 bodily injury limit for underinsured motorists
coverage. Martha's policy does not provide underinsured motorists coverage but does provide a
$15,000 liability limit for uninsured motorists coverage. How would Martha's Business Auto Coverage
,Form respond to a $30,000 underinsured motorists bodily injury claim in the other state? - correct
answer -Martha's policy would provide the $25,000 bodily injury limit required by the other state for
underinsured motorists coverage.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive their own
autos while on company business. Which one of the following exposures is created if Bilo decides in
favor of employee-owned autos? - correct answer -Employer's Nonownership Liability
Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no car himself since he
always drives a company car. If you were the agent, what coverage would you add to the BAP to give Joe
liability coverage while he drives a car not owned by the corporation? - correct answer -Other Car
coverage
Which one of the following losses would be covered by the business auto policy? - correct answer -The
insured has agreed to pay for liability losses caused by the insured's negligence that a shipper may incur
while the insured is hauling goods for the shipper.
For commercial auto insurance, a truck, tractor, or trailer is non-zone rated if it is - correct answer -A
light truck operating over any distance.
Mitchell is a highway contractor whose company is covered with a workers compensation policy and an
unendorsed business auto policy. Which one of the following losses would be covered by his business
auto policy? - correct answer -An employee runs over a subcontractor's equipment with an owned
auto.
Joe Motors, which services automobiles, wants to maintain the goodwill of its customers. This is best
accomplished by - correct answer -Purchasing garagekeepers insurance.
Wilson was driving his business auto when it was struck by a hit-and-run driver. He looked to his
business auto policy for coverage for his injuries. Which one of the following symbols shown on his
policy automatically provides such coverage? - correct answer -Symbol 6-Owned Autos Subject to a
Compulsory Uninsured Motorists Law
Kenneth, the named insured under a Business Auto Coverage Form with symbol 1 shown for liability
coverage, causes an automobile accident while driving a rental car on a business trip. Is Kenneth
,covered under the liability insuring agreement of his Business Auto Coverage Form for this accident? -
correct answer -Yes, because Kenneth, the named insured, is an insured for any auto.
Bob, an employee of Tank's Trucks, is backing one of Tank's trucks toward the loading dock on the
insured premises. Bob accidentally strikes Alice, another employee, while she is directing Bob toward
the loading dock. Alice sues Bob for her injuries. Is Bob covered under Tank's Trucks' unendorsed
Business Auto Coverage Form for liability coverage? - correct answer -No, because fellow employees'
suits are excluded.
The insured has a business auto policy. Vandals break a window in the insured's pickup truck. While the
insured is waiting for the insurance company to appraise the claim, rain enters through the broken
window and causes additional damage. What is the insurance company's liability for the loss? - correct
answer -The insurance company is liable for the damage by the vandals but not the damage from the
rain.
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of the
following policy conditions prevents the insured from suing the insurer if the insured is not satisfied with
the insurer's handling of the claim? - correct answer -Legal Action Against the Insurer
Joan has a business auto policy. Which one of the following losses would be covered as auto physical
damage? - correct answer -The cost to repair vehicle damage that results from hitting a deer
In the liability coverage agreement of the business auto policy, the insurer expresses its three distinct
duties. Which one of the following is among these duties? - correct answer -A duty to pay covered
pollution cost
Which one of the following statements is correct with respect to the Building and Personal Property
Coverage Form (BPP) deductible? - correct answer -The insurer is not obligated to pay anything to the
insured unless the loss exceeds the deductible.
An exclusion contained in the Causes of Loss—Basic Form eliminates coverage for damage caused by
which one of the following? - correct answer -Mechanical breakdown, including rupture or bursting
caused by centrifugal force
, Which one of the following statements is correct with respect to the Newly Acquired or Constructed
Property extension of coverage of the Building and Personal Property Coverage Form (BPP)? - correct
answer -It covers newly acquired buildings, provided the purpose of the newly acquired building is
similar to the use of the building described in the declarations.
Which one of the following is a covered cause of loss under the Causes of Loss—Basic Form? - correct
answer -Volcanic action
Which one of the statements is correct with respect to the Building and Personal Property Coverage
Form (BPP)? - correct answer -Some property, such as building foundations below the lowest
basement floor, is excluded because it may not be subject to loss by the perils insured against.
Which one of the following statements best describes the Causes of Loss - Special Form? - correct
answer -The Special Form provides coverage for any risk of loss other than those that are specifically
excluded.
Which one of the following statements is correct with respect to the business personal property
coverage provided by the Building and Personal Property Coverage Form (BPP)? - correct answer -'Your
business personal property' specifically excludes labor, materials, or services furnished by the insured on
the personal property of others.
Under which one of the following provisions of the Building and Personal Property Coverage Form (BPP)
is the maximum payment $10,000 or five percent of the building limit, whichever is less? - correct
answer -Increased Cost of Construction additional coverage
Alterations or additions made to the building at the expense of an insured who does not own the
building and who cannot legally remove them are referred to as - correct answer -Improvements and
betterments.
Which one of the following statements is correct with respect to the Non-Owned Detached Trailers
coverage extension of the Building and Personal Property Coverage Form (BPP)? - correct answer -It
permits the insured to extend 'your business personal property' to include trailers leased to expand
office space or to provide additional storage or work areas.
STUDY GUIDE 2026 COVERING THE RECENT AND MOST TESTED 300
QUESTIONS AND CORRECT ANSWERS
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? - correct answer -$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? - correct answer -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? - correct answer -Yes, the coins are covered up to a specified limit.
Jim and Sue, a young married couple, are under contract to purchase a condominium unit. Which one of
the following ISO policy forms is best designed to meet their homeowners insurance needs? - correct
answer -HO-6—Unit-Owners Form
Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains
$2,500 in medical bills, $3,000 damage to the laptop he was carrying, and $1,000 in lost wages. Allen's
business auto policy has $100,000 liability limit and $5,000 medical payments limit. Assuming there is no
other coverage, how much will his business auto policy pay? - correct answer -$2,500
An animal damaged the interior of an insured's automobile while it was parked with the windows down.
Which one of the following types of physical damage coverage under the Business Auto Coverage Form
would cover this loss? - correct answer -Comprehensive
Martha drives her auto, which is insured under a Business Auto Coverage Form, outside the state in
which it is licensed. The other state requires a $25,000 bodily injury limit for underinsured motorists
coverage. Martha's policy does not provide underinsured motorists coverage but does provide a
$15,000 liability limit for uninsured motorists coverage. How would Martha's Business Auto Coverage
,Form respond to a $30,000 underinsured motorists bodily injury claim in the other state? - correct
answer -Martha's policy would provide the $25,000 bodily injury limit required by the other state for
underinsured motorists coverage.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive their own
autos while on company business. Which one of the following exposures is created if Bilo decides in
favor of employee-owned autos? - correct answer -Employer's Nonownership Liability
Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no car himself since he
always drives a company car. If you were the agent, what coverage would you add to the BAP to give Joe
liability coverage while he drives a car not owned by the corporation? - correct answer -Other Car
coverage
Which one of the following losses would be covered by the business auto policy? - correct answer -The
insured has agreed to pay for liability losses caused by the insured's negligence that a shipper may incur
while the insured is hauling goods for the shipper.
For commercial auto insurance, a truck, tractor, or trailer is non-zone rated if it is - correct answer -A
light truck operating over any distance.
Mitchell is a highway contractor whose company is covered with a workers compensation policy and an
unendorsed business auto policy. Which one of the following losses would be covered by his business
auto policy? - correct answer -An employee runs over a subcontractor's equipment with an owned
auto.
Joe Motors, which services automobiles, wants to maintain the goodwill of its customers. This is best
accomplished by - correct answer -Purchasing garagekeepers insurance.
Wilson was driving his business auto when it was struck by a hit-and-run driver. He looked to his
business auto policy for coverage for his injuries. Which one of the following symbols shown on his
policy automatically provides such coverage? - correct answer -Symbol 6-Owned Autos Subject to a
Compulsory Uninsured Motorists Law
Kenneth, the named insured under a Business Auto Coverage Form with symbol 1 shown for liability
coverage, causes an automobile accident while driving a rental car on a business trip. Is Kenneth
,covered under the liability insuring agreement of his Business Auto Coverage Form for this accident? -
correct answer -Yes, because Kenneth, the named insured, is an insured for any auto.
Bob, an employee of Tank's Trucks, is backing one of Tank's trucks toward the loading dock on the
insured premises. Bob accidentally strikes Alice, another employee, while she is directing Bob toward
the loading dock. Alice sues Bob for her injuries. Is Bob covered under Tank's Trucks' unendorsed
Business Auto Coverage Form for liability coverage? - correct answer -No, because fellow employees'
suits are excluded.
The insured has a business auto policy. Vandals break a window in the insured's pickup truck. While the
insured is waiting for the insurance company to appraise the claim, rain enters through the broken
window and causes additional damage. What is the insurance company's liability for the loss? - correct
answer -The insurance company is liable for the damage by the vandals but not the damage from the
rain.
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of the
following policy conditions prevents the insured from suing the insurer if the insured is not satisfied with
the insurer's handling of the claim? - correct answer -Legal Action Against the Insurer
Joan has a business auto policy. Which one of the following losses would be covered as auto physical
damage? - correct answer -The cost to repair vehicle damage that results from hitting a deer
In the liability coverage agreement of the business auto policy, the insurer expresses its three distinct
duties. Which one of the following is among these duties? - correct answer -A duty to pay covered
pollution cost
Which one of the following statements is correct with respect to the Building and Personal Property
Coverage Form (BPP) deductible? - correct answer -The insurer is not obligated to pay anything to the
insured unless the loss exceeds the deductible.
An exclusion contained in the Causes of Loss—Basic Form eliminates coverage for damage caused by
which one of the following? - correct answer -Mechanical breakdown, including rupture or bursting
caused by centrifugal force
, Which one of the following statements is correct with respect to the Newly Acquired or Constructed
Property extension of coverage of the Building and Personal Property Coverage Form (BPP)? - correct
answer -It covers newly acquired buildings, provided the purpose of the newly acquired building is
similar to the use of the building described in the declarations.
Which one of the following is a covered cause of loss under the Causes of Loss—Basic Form? - correct
answer -Volcanic action
Which one of the statements is correct with respect to the Building and Personal Property Coverage
Form (BPP)? - correct answer -Some property, such as building foundations below the lowest
basement floor, is excluded because it may not be subject to loss by the perils insured against.
Which one of the following statements best describes the Causes of Loss - Special Form? - correct
answer -The Special Form provides coverage for any risk of loss other than those that are specifically
excluded.
Which one of the following statements is correct with respect to the business personal property
coverage provided by the Building and Personal Property Coverage Form (BPP)? - correct answer -'Your
business personal property' specifically excludes labor, materials, or services furnished by the insured on
the personal property of others.
Under which one of the following provisions of the Building and Personal Property Coverage Form (BPP)
is the maximum payment $10,000 or five percent of the building limit, whichever is less? - correct
answer -Increased Cost of Construction additional coverage
Alterations or additions made to the building at the expense of an insured who does not own the
building and who cannot legally remove them are referred to as - correct answer -Improvements and
betterments.
Which one of the following statements is correct with respect to the Non-Owned Detached Trailers
coverage extension of the Building and Personal Property Coverage Form (BPP)? - correct answer -It
permits the insured to extend 'your business personal property' to include trailers leased to expand
office space or to provide additional storage or work areas.
