FLORIDA 2-20 AGENT’S LICENSE FINAL STUDY
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ The Florida Valued Policy Law applies to: Answer: mobile homes
◉ For a Dwelling Flood policy, which is 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
$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?
Answer: $0
◉ One of the main factors used in developing a base premium for a
homeowners policy is Answer: 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? Answer: $30,000
◉ Coverage for other structures is automatically provided under the
HO-3—Special Form (HO-3) policy with a limit that is Answer: 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? 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? 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? 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?
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? 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? 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? 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? 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? Answer: Other Car coverage
◉ Which one of the following losses would be covered by the
business auto policy? 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 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
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ The Florida Valued Policy Law applies to: Answer: mobile homes
◉ For a Dwelling Flood policy, which is 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
$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?
Answer: $0
◉ One of the main factors used in developing a base premium for a
homeowners policy is Answer: 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? Answer: $30,000
◉ Coverage for other structures is automatically provided under the
HO-3—Special Form (HO-3) policy with a limit that is Answer: 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? 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? 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? 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?
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? 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? 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? 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? 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? Answer: Other Car coverage
◉ Which one of the following losses would be covered by the
business auto policy? 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 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
