FLORIDA 2-20 GENERAL LINES AGENT LICENSE
COMPREHENSIVE EXAMINATION TEST 2026
QUESTIONS WITH ANSWERS 100% CORRECT
◉ 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
policy. Which one of the following losses would be covered by his
business auto policy? 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 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? 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? 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? 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? Answer: The insurance
company is liable for the damage by the vandals but not the damage
from the rain.
COMPREHENSIVE EXAMINATION TEST 2026
QUESTIONS WITH ANSWERS 100% CORRECT
◉ 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
policy. Which one of the following losses would be covered by his
business auto policy? 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 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? 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? 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? 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? Answer: The insurance
company is liable for the damage by the vandals but not the damage
from the rain.
