FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
Liquor Liability
- Covers businesses for their liability related to the sale of alcohol, if they are in the business of selling or
distributing alcoholic beverages.
Pollution Liability
- Covers liability for releasing pollutants (smoke, chemicals, fumes, vapors, oil, hydraulic fluid, etc). Also
covers cost of clean-up unless the "limited" form is purchased. Most pollution events are excluded
under the CGL. An automotive business spilling or leaking petroleum would need Pollution Liability, as
would a contractor whose equipment leaks oils or toxins into sensitive wetlands
A few cases in which the CGL might have some coverage for pollution liability and cleanup (depending
on a careful reading of the policy you sell) are a contractor breaking a gas line while working with a
bulldozer, or a contractor attempting to repair a storage tank valve but instead causing the contents to
leak out.
Professional Liability - Physicians, Surgeons & Dentists
● Two coverages (1) Individual and (2) Partnership, Corporation or Association - Basic form also covers
chiropodists, chiropractors, physiotherapists.
● Endorsements will cover (employed by insured) dental hygienists, lab techs, x-ray techs, pharmacists,
nurses, optometrists, veterinarians.
● $250,000 per medical incident, $750,000 Aggregate Basic Limit.
Excludes:
● criminal acts,
● liability under W.C. laws
● liability as Hospital Administrator.
Professional Liability - Hospital Professional Liability
● Covers "medical incidents" - arising from services.
● Blood banks and medical or x-ray labs by endorsement.
Excludes:
● liability under W.C. laws
● motor vehicles
● individuals held liable under their own P.S.D. $250,000 per medical incident, $750,000 Aggregate Basic
Limit.
Professional Liability - Lawyers Professional Liability
,● Insured may be: individual; partners; if a corporate firm the members & stockholders; and in any case
each employed lawyer.
● Claims expenses deducted from limit before balance applies for payment of damages.
● Basic Limits $25,000 per claim, $75,000 Aggregate.
Excludes:
● criminal acts
● B.I. & P.D.
● claims by salaried insured's employer
Employment-related Practices Liability (EPL)
Covers employment related offenses such as
● refusal to employ
● termination
● failure to promote
● sexual harassment
● abuse because of age
● race
● physical condition.
○ Damages and defense costs paid from a single limit. (Co-payment of defense costs and damages by
insured)
○ 3 year extended reporting period available - otherwise claims must be made in policy period.
○ Worldwide coverage if suit brought in the U.S. or Puerto Rico.
Commercial Automobile - Business Auto Policy
A business auto policy (BAP) is automobile insurance for autos owned by a business. This could be one
car or a fleet. Motorcycles, cars, trucks, vans, food trucks, and construction vehicles that travel on public
roads can all be found on business auto policies. Most companies will have policies based on the ISO
coverage discussed here, but some variation in coverage and exclusions is to be expected.
Business auto policies are auditable, which means the total premium will be reconciled at the end of the
policy period. There may be automobiles that are covered, but not yet reported to the insurer. In these
cases, the premium for those autos may be billed to the insured at the end of the policy period.
Business Auto Coverage Form
The BAP is an auto policy which can provide auto liability and physical damage coverage for business use
autos not normally used for personal use.
Personal auto policies cover any auto you use as an individual, but that would cause problems in a
business with many employees. For that reason, a BAP classifies covered autos under numeric
"symbols." You can use these symbols to define whether all autos are covered, or just listed ones, etc.
Symbol 1, All Autos, is the broadest symbol.
, Parts of B.A.P.
Section I: Identification of "Covered Autos"
Section II: Liability insurance Section
III: Physical damage insurance Section
IV: Business auto conditions Section
V: Definitions
Section I: Identification of "Covered Autos"
Covered autos are both designated and defined by use of symbols "1" through "9" and all trailers of
2,000 pounds or less.
"1" any auto (Liability)
"2" owned autos only
"3" owned private passenger autos only
"4" owned autos other than private passenger autos only
"5" owned autos subject to no-fault
"6" owned autos subject to a compulsory uninsured motorists law
"7" specifically described autos
"8" hired autos
"9" non-owned autos only
"19" mobile equipment subject to Compulsory of Financial Responsibility
Note that you can combine symbols to insure only the autos the policyholder intends to insure. For
example, combining symbols 7 and 8 means that you will insure autos that are scheduled on the policy,
plus hired autos (for example, rental cars).
Symbols 1 - 6 provide automatic coverage for new or replacement vehicles during the policy period,
since they cover any auto the insured owns (even if purchased after the policy is issued and not reported
to the insurer).
Symbol 7 provides 30 days coverage for new or replacement vehicles, if all owned vehicles were
scheduled on the policy.
BAP Section II - Bodily Injury and Property Damage Liability
Basic Limit - split limit 10/20/10 or single $30,000
Covers: Named insured, permissive user, others "legally responsible" for insured's use of auto. However,
the owner of a hired or borrowed auto is specifically not an "insured".
Defense and supplementary payments - same as P.A.P., except $250 per day Loss of Pay, and $2,000
cost of bail bond.
Exclusions:
1. Liability assumed under contract, except "insured contracts" 2. Liability to employees
QUESTIONS WITH VERIFIED A+ ANSWERS
Liquor Liability
- Covers businesses for their liability related to the sale of alcohol, if they are in the business of selling or
distributing alcoholic beverages.
Pollution Liability
- Covers liability for releasing pollutants (smoke, chemicals, fumes, vapors, oil, hydraulic fluid, etc). Also
covers cost of clean-up unless the "limited" form is purchased. Most pollution events are excluded
under the CGL. An automotive business spilling or leaking petroleum would need Pollution Liability, as
would a contractor whose equipment leaks oils or toxins into sensitive wetlands
A few cases in which the CGL might have some coverage for pollution liability and cleanup (depending
on a careful reading of the policy you sell) are a contractor breaking a gas line while working with a
bulldozer, or a contractor attempting to repair a storage tank valve but instead causing the contents to
leak out.
Professional Liability - Physicians, Surgeons & Dentists
● Two coverages (1) Individual and (2) Partnership, Corporation or Association - Basic form also covers
chiropodists, chiropractors, physiotherapists.
● Endorsements will cover (employed by insured) dental hygienists, lab techs, x-ray techs, pharmacists,
nurses, optometrists, veterinarians.
● $250,000 per medical incident, $750,000 Aggregate Basic Limit.
Excludes:
● criminal acts,
● liability under W.C. laws
● liability as Hospital Administrator.
Professional Liability - Hospital Professional Liability
● Covers "medical incidents" - arising from services.
● Blood banks and medical or x-ray labs by endorsement.
Excludes:
● liability under W.C. laws
● motor vehicles
● individuals held liable under their own P.S.D. $250,000 per medical incident, $750,000 Aggregate Basic
Limit.
Professional Liability - Lawyers Professional Liability
,● Insured may be: individual; partners; if a corporate firm the members & stockholders; and in any case
each employed lawyer.
● Claims expenses deducted from limit before balance applies for payment of damages.
● Basic Limits $25,000 per claim, $75,000 Aggregate.
Excludes:
● criminal acts
● B.I. & P.D.
● claims by salaried insured's employer
Employment-related Practices Liability (EPL)
Covers employment related offenses such as
● refusal to employ
● termination
● failure to promote
● sexual harassment
● abuse because of age
● race
● physical condition.
○ Damages and defense costs paid from a single limit. (Co-payment of defense costs and damages by
insured)
○ 3 year extended reporting period available - otherwise claims must be made in policy period.
○ Worldwide coverage if suit brought in the U.S. or Puerto Rico.
Commercial Automobile - Business Auto Policy
A business auto policy (BAP) is automobile insurance for autos owned by a business. This could be one
car or a fleet. Motorcycles, cars, trucks, vans, food trucks, and construction vehicles that travel on public
roads can all be found on business auto policies. Most companies will have policies based on the ISO
coverage discussed here, but some variation in coverage and exclusions is to be expected.
Business auto policies are auditable, which means the total premium will be reconciled at the end of the
policy period. There may be automobiles that are covered, but not yet reported to the insurer. In these
cases, the premium for those autos may be billed to the insured at the end of the policy period.
Business Auto Coverage Form
The BAP is an auto policy which can provide auto liability and physical damage coverage for business use
autos not normally used for personal use.
Personal auto policies cover any auto you use as an individual, but that would cause problems in a
business with many employees. For that reason, a BAP classifies covered autos under numeric
"symbols." You can use these symbols to define whether all autos are covered, or just listed ones, etc.
Symbol 1, All Autos, is the broadest symbol.
, Parts of B.A.P.
Section I: Identification of "Covered Autos"
Section II: Liability insurance Section
III: Physical damage insurance Section
IV: Business auto conditions Section
V: Definitions
Section I: Identification of "Covered Autos"
Covered autos are both designated and defined by use of symbols "1" through "9" and all trailers of
2,000 pounds or less.
"1" any auto (Liability)
"2" owned autos only
"3" owned private passenger autos only
"4" owned autos other than private passenger autos only
"5" owned autos subject to no-fault
"6" owned autos subject to a compulsory uninsured motorists law
"7" specifically described autos
"8" hired autos
"9" non-owned autos only
"19" mobile equipment subject to Compulsory of Financial Responsibility
Note that you can combine symbols to insure only the autos the policyholder intends to insure. For
example, combining symbols 7 and 8 means that you will insure autos that are scheduled on the policy,
plus hired autos (for example, rental cars).
Symbols 1 - 6 provide automatic coverage for new or replacement vehicles during the policy period,
since they cover any auto the insured owns (even if purchased after the policy is issued and not reported
to the insurer).
Symbol 7 provides 30 days coverage for new or replacement vehicles, if all owned vehicles were
scheduled on the policy.
BAP Section II - Bodily Injury and Property Damage Liability
Basic Limit - split limit 10/20/10 or single $30,000
Covers: Named insured, permissive user, others "legally responsible" for insured's use of auto. However,
the owner of a hired or borrowed auto is specifically not an "insured".
Defense and supplementary payments - same as P.A.P., except $250 per day Loss of Pay, and $2,000
cost of bail bond.
Exclusions:
1. Liability assumed under contract, except "insured contracts" 2. Liability to employees
