FLORIDA 2-20 AGENT’S LICENSE FINAL
ASSESSMENT TEST 2026 TESTED QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ 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? 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? 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? 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? 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? 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? 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)?
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? Answer: Volcanic action
◉ Which one of the statements is correct with respect to the
Building and Personal Property Coverage Form (BPP)? 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? 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)? 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?
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 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)? 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.
◉ Which one of the following statements is correct with respect to
the Commercial Property Conditions? Answer: They apply to all
coverage forms included in a commercial property coverage part,
unless a coverage form contains a condition to the contrary.
◉ The owners of Uncle Reggie's Steakhouse are insured under a
Building and Personal Property Coverage Form (BPP) that covers
their building and business personal property for $350,000 and
$100,000, respectively. The policy has a $2,500 deductible. A fire
results in $350,000 worth of damage to the building and a $70,000
loss of business personal property. In what amounts should the
policy provide coverage for this loss? Answer: $347,500 Building
and $70,000 Property
◉ A Commercial Package Policy (CPP) premium may be modified by
a package modification factor. This factor Answer: Is a discount
justified by the greater efficiency in providing a package policy.
◉ Worldwide Warehousing has a Building and Personal Property
Coverage Form (BPP) with a $1,000,000 limit on a building and a
$5,000 deductible. The warehouse suffers a $1,010,000 fire loss.
ASSESSMENT TEST 2026 TESTED QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ 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? 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? 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? 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? 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? 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? 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)?
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? Answer: Volcanic action
◉ Which one of the statements is correct with respect to the
Building and Personal Property Coverage Form (BPP)? 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? 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)? 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?
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 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)? 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.
◉ Which one of the following statements is correct with respect to
the Commercial Property Conditions? Answer: They apply to all
coverage forms included in a commercial property coverage part,
unless a coverage form contains a condition to the contrary.
◉ The owners of Uncle Reggie's Steakhouse are insured under a
Building and Personal Property Coverage Form (BPP) that covers
their building and business personal property for $350,000 and
$100,000, respectively. The policy has a $2,500 deductible. A fire
results in $350,000 worth of damage to the building and a $70,000
loss of business personal property. In what amounts should the
policy provide coverage for this loss? Answer: $347,500 Building
and $70,000 Property
◉ A Commercial Package Policy (CPP) premium may be modified by
a package modification factor. This factor Answer: Is a discount
justified by the greater efficiency in providing a package policy.
◉ Worldwide Warehousing has a Building and Personal Property
Coverage Form (BPP) with a $1,000,000 limit on a building and a
$5,000 deductible. The warehouse suffers a $1,010,000 fire loss.
