FLORIDA 2-20 GENERAL LINES AGENT LICENSE
FINAL PAPER 2026 COMPLETE QUESTIONS
AND ANSWERS FULL SOLUTION GRADED A+
◉ 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.
Which one of the following amounts will Worldwide's insurer pay?
Answer: $1,000,000
, ◉ The Causes of Loss—Basic Form differs from the Causes of Loss—
Broad Form in which one of the following ways? Answer: The Broad
Form provides coverage for loss caused by collapse of a building or
personal property resulting from specified perils.
◉ A description of the property insured, a list of mortgagees, and the
applicable coinsurance percentage(s) are shown on which one of the
following documents? Answer: Commercial property declarations
◉ Which one of the following statements is correct with respect to
the Building and Personal Property (BPP) Coverage Form? Answer:
The BPP lists several types of classes of property that do not qualify
as covered property.
◉ Which one of the following statements is correct with regard to
the Causes of Loss—Broad Form? Answer: The weight of snow, ice,
or sleet cause of loss does not cover damage to personal property in
the open.
◉ Which one of the following statements is correct with respect to
Property Not Covered under the Building and Personal Property
Coverage Form (BPP) Answer: Only contraband or property in the
course of illegal transportation or trade is totally uninsurable by
endorsement or in other policies.
FINAL PAPER 2026 COMPLETE QUESTIONS
AND ANSWERS FULL SOLUTION GRADED A+
◉ 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.
Which one of the following amounts will Worldwide's insurer pay?
Answer: $1,000,000
, ◉ The Causes of Loss—Basic Form differs from the Causes of Loss—
Broad Form in which one of the following ways? Answer: The Broad
Form provides coverage for loss caused by collapse of a building or
personal property resulting from specified perils.
◉ A description of the property insured, a list of mortgagees, and the
applicable coinsurance percentage(s) are shown on which one of the
following documents? Answer: Commercial property declarations
◉ Which one of the following statements is correct with respect to
the Building and Personal Property (BPP) Coverage Form? Answer:
The BPP lists several types of classes of property that do not qualify
as covered property.
◉ Which one of the following statements is correct with regard to
the Causes of Loss—Broad Form? Answer: The weight of snow, ice,
or sleet cause of loss does not cover damage to personal property in
the open.
◉ Which one of the following statements is correct with respect to
Property Not Covered under the Building and Personal Property
Coverage Form (BPP) Answer: Only contraband or property in the
course of illegal transportation or trade is totally uninsurable by
endorsement or in other policies.
