FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 300
QUESTIONS AND CORRECT DETAILED ANSWERS|
AGRADE
The FAJUA is composed of: - ANSWER: All companies licensed to write auto
insurance in Florida
A coverage that is similar to premises and operations coverage in the Commercial
General Liability Policy covering bodily injury and property damage liability for
aviation risks is defined as: - ANSWER: Airport and Air Meet Liability
Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000. Insured
losses include $25,000 furniture, clothing and other ordinary personal property plus
$5,000 damage to guns and $5,000 damage to jewelry, furs. Insured will recover: -
ANSWER: $29,000 less any deductible
Each of the following divisions falls under The Department of Financial Services
EXCEPT? - ANSWER: The Division of Consumer Activities
Which of the following provides for loss of money and securities outside the
premises in the care, custody and control of a messenger or armored car service
resulting from theft, disappearance, or destruction? - ANSWER: Outside the Premises
What is the standard All Perils deductible in the Commercial Property Policy? -
ANSWER: $500
Which of the following best describes a "Controlled" Inland Marine Form? -
ANSWER: Standard provisions form is written according to filed rules and rates
Under a Personal Articles Floater, which of the following is covered as valued
property? - ANSWER: Fine Arts
Under the Dwelling Program forms, vandalism is not covered after the building has
been vacant for how many days? - ANSWER: 60 days
Under a Commercial General Liability Contract, how many days notice of cancellation
must the insurer provide for non-payment of premium? - 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? - ANSWER: $1,000
The following are basic characteristics of a Property or Liability Insurance Contract
EXCEPT: - 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? - 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? - 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
Which of the following guarantees the payment of materials in full upon completion
of the work? - 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. - ANSWER: II and III only
All of the following are located on a Boiler and Machinery Coverage form EXCEPT: -
ANSWER: Exhibits
The Motor Truck Cargo Policy: - 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: - ANSWER: Firearms
What is the standard deductible for Employee Theft coverage? - ANSWER: $500
The Forgery or Alteration coverage under a Businessowners Policy is: - ANSWER:
$2,000
How many hours of continuing education is a newly licensed agent required to have
for their first Continuing Education compliance period? - 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? - ANSWER: A
maximum of three can elect to be covered
Which of the following is not a way to purchase Uninsured Motorist Coverage? -
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? - 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: - ANSWER: Blood Banks
Which of the following is not a valid deductible for hurricane in the Dwelling
program? - 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? -
ANSWER: 180
Which of the following is NOT a common deductible in an Aircraft Hull Policy? -
ANSWER: 2%
How many insuring agreements are there in a Commercial Crime Policy? - 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? - 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: - ANSWER: Safe Burglary
The Boiler and Machinery Policy provides automatic coverage for boilers at newly
acquired locations for: - ANSWER: 90 days
Which of the following statements is false regarding Co-Payment: - 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? - 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: - ANSWER: FAJUA
, The typical coverage for rental reimbursement on a Mechanical Breakdown policy is:
- ANSWER: $15 per day/$75 maximum
Which of the following is not a type of insurance that can be transacted with a
"General Lines" insurance license? - ANSWER: Life insurance written by carrier who is
also represented for Property and Casualty
Another name for a "Cost Plus" plan is: - 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? - ANSWER: $5,000
This program provides comprehensive health services to members for a prepaid
fixed fee with a goal of preventive activity: - ANSWER: HMO
The Retroactive Date: - 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: - 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? - ANSWER: $300
- Money is valued at its face value
Which of the following is not an eligibility requirement for the RCBAP Flood Policy? -
ANSWER: 25% mercantile floor area
All of the following are covered under Personal and Advertising Injury EXCEPT: -
ANSWER: Bodily Injury
This bond is required of investment companies guaranteeing against
misrepresentation of Securities: - ANSWER: Blue Sky Bond
All of the following coverages can be added to the Business Auto Coverage Form by
separate endorse¬ment EXCEPT: - ANSWER: Liability
Which of the following is NOT a benefit under PIP? - ANSWER: Replacement services
paid at 10%
Luigi purchases a money order to make his car payment. The money order never
makes it to the finance company and he has to replace it. What type of bond will the
QUESTIONS AND CORRECT DETAILED ANSWERS|
AGRADE
The FAJUA is composed of: - ANSWER: All companies licensed to write auto
insurance in Florida
A coverage that is similar to premises and operations coverage in the Commercial
General Liability Policy covering bodily injury and property damage liability for
aviation risks is defined as: - ANSWER: Airport and Air Meet Liability
Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000. Insured
losses include $25,000 furniture, clothing and other ordinary personal property plus
$5,000 damage to guns and $5,000 damage to jewelry, furs. Insured will recover: -
ANSWER: $29,000 less any deductible
Each of the following divisions falls under The Department of Financial Services
EXCEPT? - ANSWER: The Division of Consumer Activities
Which of the following provides for loss of money and securities outside the
premises in the care, custody and control of a messenger or armored car service
resulting from theft, disappearance, or destruction? - ANSWER: Outside the Premises
What is the standard All Perils deductible in the Commercial Property Policy? -
ANSWER: $500
Which of the following best describes a "Controlled" Inland Marine Form? -
ANSWER: Standard provisions form is written according to filed rules and rates
Under a Personal Articles Floater, which of the following is covered as valued
property? - ANSWER: Fine Arts
Under the Dwelling Program forms, vandalism is not covered after the building has
been vacant for how many days? - ANSWER: 60 days
Under a Commercial General Liability Contract, how many days notice of cancellation
must the insurer provide for non-payment of premium? - 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? - ANSWER: $1,000
The following are basic characteristics of a Property or Liability Insurance Contract
EXCEPT: - 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? - 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? - 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
Which of the following guarantees the payment of materials in full upon completion
of the work? - 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. - ANSWER: II and III only
All of the following are located on a Boiler and Machinery Coverage form EXCEPT: -
ANSWER: Exhibits
The Motor Truck Cargo Policy: - 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: - ANSWER: Firearms
What is the standard deductible for Employee Theft coverage? - ANSWER: $500
The Forgery or Alteration coverage under a Businessowners Policy is: - ANSWER:
$2,000
How many hours of continuing education is a newly licensed agent required to have
for their first Continuing Education compliance period? - 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? - ANSWER: A
maximum of three can elect to be covered
Which of the following is not a way to purchase Uninsured Motorist Coverage? -
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? - 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: - ANSWER: Blood Banks
Which of the following is not a valid deductible for hurricane in the Dwelling
program? - 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? -
ANSWER: 180
Which of the following is NOT a common deductible in an Aircraft Hull Policy? -
ANSWER: 2%
How many insuring agreements are there in a Commercial Crime Policy? - 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? - 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: - ANSWER: Safe Burglary
The Boiler and Machinery Policy provides automatic coverage for boilers at newly
acquired locations for: - ANSWER: 90 days
Which of the following statements is false regarding Co-Payment: - 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? - 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: - ANSWER: FAJUA
, The typical coverage for rental reimbursement on a Mechanical Breakdown policy is:
- ANSWER: $15 per day/$75 maximum
Which of the following is not a type of insurance that can be transacted with a
"General Lines" insurance license? - ANSWER: Life insurance written by carrier who is
also represented for Property and Casualty
Another name for a "Cost Plus" plan is: - 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? - ANSWER: $5,000
This program provides comprehensive health services to members for a prepaid
fixed fee with a goal of preventive activity: - ANSWER: HMO
The Retroactive Date: - 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: - 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? - ANSWER: $300
- Money is valued at its face value
Which of the following is not an eligibility requirement for the RCBAP Flood Policy? -
ANSWER: 25% mercantile floor area
All of the following are covered under Personal and Advertising Injury EXCEPT: -
ANSWER: Bodily Injury
This bond is required of investment companies guaranteeing against
misrepresentation of Securities: - ANSWER: Blue Sky Bond
All of the following coverages can be added to the Business Auto Coverage Form by
separate endorse¬ment EXCEPT: - ANSWER: Liability
Which of the following is NOT a benefit under PIP? - ANSWER: Replacement services
paid at 10%
Luigi purchases a money order to make his car payment. The money order never
makes it to the finance company and he has to replace it. What type of bond will the
