1|Page
FLORIDA PROPERTY & CASUALTY INSURANCE,
FLORIDA 2-20 AGENTS LICENSE 500+ 2025/2026
EXAM QUESTIONS TEST BANK TESTED AND
VERIFIED| ACCURATE FOR GUARANTEED PASS|
GRADED A+
Under the Dwelling Program forms, vandalism is not covered after the building has been
vacant for how many days? - CORRECT ANSWER>>60 days
Under a Commercial General Liability Contract, how many days notice of cancellation must
the insurer provide for non-payment of premium? - CORRECT ANSWER>>10
Under Additional Coverages, how much applies for loss assessments imposed by an
association against the insured for damage to property caused by a peril insured against
under Coverage A? - CORRECT ANSWER>>$1,000
The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT: -
CORRECT ANSWER>>Loss Settlement Contract
Rob has PIP with a $1,000 deductible. He has an auto accident causing $6,000 in medical
bills. How much will his PIP pay? - CORRECT ANSWER>>$4,000
- $6,000 - $1,000 deductible = $5,000 x 80% = $4,000
QRS Construction Company wants to provide the local school district with a price for
building a new grammar school. In order to accept the price, the school board needs a bond
that would pay the difference between QRS's price and the next highest price. What kind of
bond does QRS need to provide to the school district? - CORRECT ANSWER>>Bid bond
- The Bid Bond is required to accompany a bid for a contract which will require that the
successful bidder furnish further bond if awarded the job. The guarantee is that if the bid is
accepted, the bidder will enter into the contract and will satisfy further bonding
requirements for the job
,3|Page
Which of the following guarantees the payment of materials in full upon completion of the
work? - CORRECT ANSWER>>Payment Bond
Which of the following events would be covered under an HO-3? I. A sewer line became
clogged and the toilet in the house backed up and overflowed, damaging the carpet. II. Wind
blew a front door open and rain damaged the carpet. III. The neighbor's German Shepard
damaged the garage doorframe while trying to get in the insured's garage to eat the dog
food stored there. - CORRECT ANSWER>>II and III only
All of the following are located on a Boiler and Machinery Coverage form EXCEPT: -
CORRECT ANSWER>>Exhibits
The Motor Truck Cargo Policy: - CORRECT ANSWER>>Insures a truck carrier for liability
arising out of the transportation of cargo.
All of the following are types of property that can be covered under a Personal Articles
Floater EXCEPT: - CORRECT ANSWER>>Firearms
What is the standard deductible for Employee Theft coverage? - CORRECT ANSWER>>$500
The Forgery or Alteration coverage under a Businessowners Policy is: - CORRECT
ANSWER>>$2,000
How many hours of continuing education is a newly licensed agent required to have for their
first Continuing Education compliance period? - CORRECT ANSWER>>24
Which of the following is NOT true regarding sole proprietors and partners in the non-
construction industry as they relate to Workers Compensation? - CORRECT ANSWER>>A
maximum of three can elect to be covered
Which of the following is not a way to purchase Uninsured Motorist Coverage? - CORRECT
ANSWER>>More than your bodily injury limits
Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not
actually install them until Tuesday. What kind of policy will they need to cover any loss to the
cabinets? - CORRECT ANSWER>>Installation Floater
This Hospital Form applies with "medical incident" defined as an act or omission in
furnishing of professional services related to making of a blood donation under the
supervision of the insured: - CORRECT ANSWER>>Blood Banks
,4|Page
Which of the following is not a valid deductible for hurricane in the Dwelling program? -
CORRECT ANSWER>>1%
If a loss occurs under the Building and Personal Property Coverage Form with the optional
replacement cost provision, how long does the insured have to give intent to replace the
damaged item in order to receive replacement cost adjustment? - CORRECT ANSWER>>180
Which of the following is NOT a common deductible in an Aircraft Hull Policy? - CORRECT
ANSWER>>2%
How many insuring agreements are there in a Commercial Crime Policy? - CORRECT
ANSWER>>7
Barry was driving his car in Florida where he has lived all his life when he is hit by an at-fault
driver. Barry has $10,000 in medical bills, basic PIP with a $1,000 deductible and no medical
payments coverage. How much will the at-fault driver have to pay for Barry's injuries? -
CORRECT ANSWER>>$2,800
- $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP. Barry can hold the
at-fault driver responsible for the difference of PIPs maximum limit of $10,000 and the
$7,200, which is $2,800
During a break-in at a business, the safe is removed from the location. This is defined as: -
CORRECT ANSWER>>Safe Burglary
The Boiler and Machinery Policy provides automatic coverage for boilers at newly acquired
locations for: - CORRECT ANSWER>>90 days
Which of the following statements is false regarding Co-Payment: - CORRECT
ANSWER>>Subject to a minimum amount
Which statement below best describes the insured's position under the Florida No-Fault Law
when the total medical and work loss bill exceeds the PIP benefits without exceeding a
threshold? - CORRECT ANSWER>>Insured can sue for the economic loss not paid or payable
under PIP; no suit for intangible damages such as pain and suffering
Established in 1973, this association was created for applicants who are unable to obtain
automobile insurance in the private market: - CORRECT ANSWER>>FAJUA
The typical coverage for rental reimbursement on a Mechanical Breakdown policy is: -
CORRECT ANSWER>>$15 per day/$75 maximum
, 5|Page
Which of the following is not a type of insurance that can be transacted with a "General
Lines" insurance license? - CORRECT ANSWER>>Life insurance written by carrier who is also
represented for Property and Casualty
Another name for a "Cost Plus" plan is: - CORRECT ANSWER>>Retrospective Rating Plan
What amount applies to Business Personal Property other than "Money and Securities,"
"Valuable Papers and Records" and "Accounts Receivable" while off premises? - CORRECT
ANSWER>>$5,000
This program provides comprehensive health services to members for a prepaid fixed fee
with a goal of preventive activity: - CORRECT ANSWER>>HMO
The Retroactive Date: - CORRECT ANSWER>>Establishes the date when claims made
coverage begins
This endorsement will extend liability insurance and any physical damage insurance to cover
the insured while driving a non-owned vehicle: - CORRECT ANSWER>>Individual Named
Insured
Trey has a collection of rare foreign coins, which are stolen. His Crime Policy provides
coverage for these coins as part of his business property. The collectible value of the coins is
$5,000; the monetary value of the coins is $300. Assuming there is no deductible, how much
will Trey's policy pay? - CORRECT ANSWER>>$300
- Money is valued at its face value
Which of the following is not an eligibility requirement for the RCBAP Flood Policy? -
CORRECT ANSWER>>25% mercantile floor area
All of the following are covered under Personal and Advertising Injury EXCEPT: - CORRECT
ANSWER>>Bodily Injury
This bond is required of investment companies guaranteeing against misrepresentation of
Securities: - CORRECT ANSWER>>Blue Sky Bond
All of the following coverages can be added to the Business Auto Coverage Form by separate
endorse¬ment EXCEPT: - CORRECT ANSWER>>Liability
Which of the following is NOT a benefit under PIP? - CORRECT ANSWER>>Replacement
services paid at 10%
FLORIDA PROPERTY & CASUALTY INSURANCE,
FLORIDA 2-20 AGENTS LICENSE 500+ 2025/2026
EXAM QUESTIONS TEST BANK TESTED AND
VERIFIED| ACCURATE FOR GUARANTEED PASS|
GRADED A+
Under the Dwelling Program forms, vandalism is not covered after the building has been
vacant for how many days? - CORRECT ANSWER>>60 days
Under a Commercial General Liability Contract, how many days notice of cancellation must
the insurer provide for non-payment of premium? - CORRECT ANSWER>>10
Under Additional Coverages, how much applies for loss assessments imposed by an
association against the insured for damage to property caused by a peril insured against
under Coverage A? - CORRECT ANSWER>>$1,000
The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT: -
CORRECT ANSWER>>Loss Settlement Contract
Rob has PIP with a $1,000 deductible. He has an auto accident causing $6,000 in medical
bills. How much will his PIP pay? - CORRECT ANSWER>>$4,000
- $6,000 - $1,000 deductible = $5,000 x 80% = $4,000
QRS Construction Company wants to provide the local school district with a price for
building a new grammar school. In order to accept the price, the school board needs a bond
that would pay the difference between QRS's price and the next highest price. What kind of
bond does QRS need to provide to the school district? - CORRECT ANSWER>>Bid bond
- The Bid Bond is required to accompany a bid for a contract which will require that the
successful bidder furnish further bond if awarded the job. The guarantee is that if the bid is
accepted, the bidder will enter into the contract and will satisfy further bonding
requirements for the job
,3|Page
Which of the following guarantees the payment of materials in full upon completion of the
work? - CORRECT ANSWER>>Payment Bond
Which of the following events would be covered under an HO-3? I. A sewer line became
clogged and the toilet in the house backed up and overflowed, damaging the carpet. II. Wind
blew a front door open and rain damaged the carpet. III. The neighbor's German Shepard
damaged the garage doorframe while trying to get in the insured's garage to eat the dog
food stored there. - CORRECT ANSWER>>II and III only
All of the following are located on a Boiler and Machinery Coverage form EXCEPT: -
CORRECT ANSWER>>Exhibits
The Motor Truck Cargo Policy: - CORRECT ANSWER>>Insures a truck carrier for liability
arising out of the transportation of cargo.
All of the following are types of property that can be covered under a Personal Articles
Floater EXCEPT: - CORRECT ANSWER>>Firearms
What is the standard deductible for Employee Theft coverage? - CORRECT ANSWER>>$500
The Forgery or Alteration coverage under a Businessowners Policy is: - CORRECT
ANSWER>>$2,000
How many hours of continuing education is a newly licensed agent required to have for their
first Continuing Education compliance period? - CORRECT ANSWER>>24
Which of the following is NOT true regarding sole proprietors and partners in the non-
construction industry as they relate to Workers Compensation? - CORRECT ANSWER>>A
maximum of three can elect to be covered
Which of the following is not a way to purchase Uninsured Motorist Coverage? - CORRECT
ANSWER>>More than your bodily injury limits
Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not
actually install them until Tuesday. What kind of policy will they need to cover any loss to the
cabinets? - CORRECT ANSWER>>Installation Floater
This Hospital Form applies with "medical incident" defined as an act or omission in
furnishing of professional services related to making of a blood donation under the
supervision of the insured: - CORRECT ANSWER>>Blood Banks
,4|Page
Which of the following is not a valid deductible for hurricane in the Dwelling program? -
CORRECT ANSWER>>1%
If a loss occurs under the Building and Personal Property Coverage Form with the optional
replacement cost provision, how long does the insured have to give intent to replace the
damaged item in order to receive replacement cost adjustment? - CORRECT ANSWER>>180
Which of the following is NOT a common deductible in an Aircraft Hull Policy? - CORRECT
ANSWER>>2%
How many insuring agreements are there in a Commercial Crime Policy? - CORRECT
ANSWER>>7
Barry was driving his car in Florida where he has lived all his life when he is hit by an at-fault
driver. Barry has $10,000 in medical bills, basic PIP with a $1,000 deductible and no medical
payments coverage. How much will the at-fault driver have to pay for Barry's injuries? -
CORRECT ANSWER>>$2,800
- $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP. Barry can hold the
at-fault driver responsible for the difference of PIPs maximum limit of $10,000 and the
$7,200, which is $2,800
During a break-in at a business, the safe is removed from the location. This is defined as: -
CORRECT ANSWER>>Safe Burglary
The Boiler and Machinery Policy provides automatic coverage for boilers at newly acquired
locations for: - CORRECT ANSWER>>90 days
Which of the following statements is false regarding Co-Payment: - CORRECT
ANSWER>>Subject to a minimum amount
Which statement below best describes the insured's position under the Florida No-Fault Law
when the total medical and work loss bill exceeds the PIP benefits without exceeding a
threshold? - CORRECT ANSWER>>Insured can sue for the economic loss not paid or payable
under PIP; no suit for intangible damages such as pain and suffering
Established in 1973, this association was created for applicants who are unable to obtain
automobile insurance in the private market: - CORRECT ANSWER>>FAJUA
The typical coverage for rental reimbursement on a Mechanical Breakdown policy is: -
CORRECT ANSWER>>$15 per day/$75 maximum
, 5|Page
Which of the following is not a type of insurance that can be transacted with a "General
Lines" insurance license? - CORRECT ANSWER>>Life insurance written by carrier who is also
represented for Property and Casualty
Another name for a "Cost Plus" plan is: - CORRECT ANSWER>>Retrospective Rating Plan
What amount applies to Business Personal Property other than "Money and Securities,"
"Valuable Papers and Records" and "Accounts Receivable" while off premises? - CORRECT
ANSWER>>$5,000
This program provides comprehensive health services to members for a prepaid fixed fee
with a goal of preventive activity: - CORRECT ANSWER>>HMO
The Retroactive Date: - CORRECT ANSWER>>Establishes the date when claims made
coverage begins
This endorsement will extend liability insurance and any physical damage insurance to cover
the insured while driving a non-owned vehicle: - CORRECT ANSWER>>Individual Named
Insured
Trey has a collection of rare foreign coins, which are stolen. His Crime Policy provides
coverage for these coins as part of his business property. The collectible value of the coins is
$5,000; the monetary value of the coins is $300. Assuming there is no deductible, how much
will Trey's policy pay? - CORRECT ANSWER>>$300
- Money is valued at its face value
Which of the following is not an eligibility requirement for the RCBAP Flood Policy? -
CORRECT ANSWER>>25% mercantile floor area
All of the following are covered under Personal and Advertising Injury EXCEPT: - CORRECT
ANSWER>>Bodily Injury
This bond is required of investment companies guaranteeing against misrepresentation of
Securities: - CORRECT ANSWER>>Blue Sky Bond
All of the following coverages can be added to the Business Auto Coverage Form by separate
endorse¬ment EXCEPT: - CORRECT ANSWER>>Liability
Which of the following is NOT a benefit under PIP? - CORRECT ANSWER>>Replacement
services paid at 10%
