FLORIDA 2-20 AGENTS LICENSE FINAL EXAM AND
STUDY GUIDE 2024 NEWEST ACTUAL EXAM COMPLETE
400 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
The Florida Surplus Service Lines Office (FSLSO) was created to - ANSWER: oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
ANSWER: Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - ANSWER:
Pays insurance claims
Once license, you have how long to obtain an appointment? - ANSWER: 48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
ANSWER: Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - ANSWER: Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
From a risk management viewpoint, insurance is used to - ANSWER: Transfer the
cost of losses.
Liability coverage for loss exposures arising from a business organization's premises
and operations, its products, or its completed work is typically provided by -
ANSWER: Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by
insurance? - ANSWER: Insurance helps reduce the financial burden to society by
compensating accident victims.
Insurance is not the only risk management transfer technique. When circumstances
are appropriate, transfer can be accomplished through - ANSWER: Noninsurance
transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a
mobile billboard to promote his product. Oscar is surprised to learn that insurers are
reluctant to insure his vehicle because it fails to meet one of the ideal characteristics
of an insurable risk. Which characteristic is Oscar's vehicle least likely to meet? -
ANSWER: Large number of similar exposure units
,Liability coverage to individuals and families for bodily injury and property damage
arising from the insured's personal premises or activities is typically provided by -
ANSWER: Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and drives to work daily in
the city. She recognizes that owning a car creates both property damage and liability
exposures for her and at the same time she has the burden of student loans. For
someone in Sally's circumstances the most practical risk management technique for
dealing with her auto-related loss exposures is - ANSWER: Risk transfer.
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be used
elsewhere and making other productive contributions to - ANSWER: Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is -
ANSWER: The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial condition
is the process of - ANSWER: Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - ANSWER: Increases the total cost of insurance
A small business owner concerned about something happening and not being able to
work or earn a living for an extended period of time due to an accident should
purchase - ANSWER: Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto Policy
for Liability? - ANSWER: The 1990 Chevy 22 days after you purchase it as an
additional vehicle for your son who just got his license.
Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her care.
Joe is driving her car, loses control; and hits a tree. Joe is hurt with $15,000 in
medical bills. What is the maximum Joe can collect from UM from all sources from
this accident? - ANSWER: $0
Keith commutes into the city in his car, and he provides a ride to two co-workers
who live near him. Every other week, the co-workers take turns buying the gasoline
for Keith's car. Does this activity create a public or livery conveyance situation that
would preclude liability coverage under Keith's Personal Auto Policy (PAP)? -
ANSWER: No, because Keith is involved in a share-the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments coverage,
, - ANSWER: Each insurer pays its pro rata share based on the proportion that its limit
of liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: - ANSWER: Limit of Liability
Tom and Martha insure their house with an unendorsed HO-3—Special Form (HO-3)
with a Coverage A—Dwelling limit of $300,000, which is the replacement cost of the
house. A thief breaks into the house while Tom and Martha are on vacation and
steals the following items: •$500 cash•$50,000 stock certificates. Ignoring any
deductible that may apply, how much, if any, will Tom and Martha's insurer pay for
the loss of the items? - ANSWER: $1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - ANSWER: Establishes the process for determining the amount to be paid
for a property loss.
Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3) that is
destroyed, confiscated, or seized by order of any governmental or public authority is
- ANSWER: Excluded.
Adam and his insurer disagree on the amount of a loss covered by his homeowners
policy. Adam wants the insurer to pay $10,000 toward the loss. The insurer's
representative feels that the loss should be valued at $5,000. How could the
appraisal process resolve this situation? - ANSWER: Adam and the insurer will each
select an appraiser, and the two appraisers will submit their differences to an
impartial umpire who will reach a resolution.
Which one of the following has special limits of liability within Coverage C of the HO-
3—Special Form (HO-3)? - ANSWER: Theft of firearms
A storm causes power lines to break ten miles from the insured's premises. The loss
of electrical power causes food in the insured's freezer to thaw and spoil. Coverage
for this loss is - ANSWER: Excluded because the power failure occurred off the
residence premises.
If law enforcement officials seize an insured's personal computer to search for files
that might be related to a crime, the insured under an HO-3—Special Form (HO-3)
may be unsuccessful in claiming a theft loss on the computer due to the - ANSWER:
Governmental Action exclusion.
Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-3)
policy. Sam stores a small fishing boat and trailer behind the house. While they are
out for the evening, a fire destroys most of their kitchen and completely destroys the
boat and trailer. Assuming Sam's boat and trailer are valued at $4,000 and ignoring
any deductible that may apply, what amount will their HO-3 insurer pay for the loss
of the boat and trailer? - ANSWER: $1,500
STUDY GUIDE 2024 NEWEST ACTUAL EXAM COMPLETE
400 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
The Florida Surplus Service Lines Office (FSLSO) was created to - ANSWER: oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
ANSWER: Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - ANSWER:
Pays insurance claims
Once license, you have how long to obtain an appointment? - ANSWER: 48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
ANSWER: Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - ANSWER: Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
From a risk management viewpoint, insurance is used to - ANSWER: Transfer the
cost of losses.
Liability coverage for loss exposures arising from a business organization's premises
and operations, its products, or its completed work is typically provided by -
ANSWER: Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by
insurance? - ANSWER: Insurance helps reduce the financial burden to society by
compensating accident victims.
Insurance is not the only risk management transfer technique. When circumstances
are appropriate, transfer can be accomplished through - ANSWER: Noninsurance
transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a
mobile billboard to promote his product. Oscar is surprised to learn that insurers are
reluctant to insure his vehicle because it fails to meet one of the ideal characteristics
of an insurable risk. Which characteristic is Oscar's vehicle least likely to meet? -
ANSWER: Large number of similar exposure units
,Liability coverage to individuals and families for bodily injury and property damage
arising from the insured's personal premises or activities is typically provided by -
ANSWER: Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and drives to work daily in
the city. She recognizes that owning a car creates both property damage and liability
exposures for her and at the same time she has the burden of student loans. For
someone in Sally's circumstances the most practical risk management technique for
dealing with her auto-related loss exposures is - ANSWER: Risk transfer.
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be used
elsewhere and making other productive contributions to - ANSWER: Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is -
ANSWER: The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial condition
is the process of - ANSWER: Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - ANSWER: Increases the total cost of insurance
A small business owner concerned about something happening and not being able to
work or earn a living for an extended period of time due to an accident should
purchase - ANSWER: Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto Policy
for Liability? - ANSWER: The 1990 Chevy 22 days after you purchase it as an
additional vehicle for your son who just got his license.
Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her care.
Joe is driving her car, loses control; and hits a tree. Joe is hurt with $15,000 in
medical bills. What is the maximum Joe can collect from UM from all sources from
this accident? - ANSWER: $0
Keith commutes into the city in his car, and he provides a ride to two co-workers
who live near him. Every other week, the co-workers take turns buying the gasoline
for Keith's car. Does this activity create a public or livery conveyance situation that
would preclude liability coverage under Keith's Personal Auto Policy (PAP)? -
ANSWER: No, because Keith is involved in a share-the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments coverage,
, - ANSWER: Each insurer pays its pro rata share based on the proportion that its limit
of liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: - ANSWER: Limit of Liability
Tom and Martha insure their house with an unendorsed HO-3—Special Form (HO-3)
with a Coverage A—Dwelling limit of $300,000, which is the replacement cost of the
house. A thief breaks into the house while Tom and Martha are on vacation and
steals the following items: •$500 cash•$50,000 stock certificates. Ignoring any
deductible that may apply, how much, if any, will Tom and Martha's insurer pay for
the loss of the items? - ANSWER: $1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - ANSWER: Establishes the process for determining the amount to be paid
for a property loss.
Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3) that is
destroyed, confiscated, or seized by order of any governmental or public authority is
- ANSWER: Excluded.
Adam and his insurer disagree on the amount of a loss covered by his homeowners
policy. Adam wants the insurer to pay $10,000 toward the loss. The insurer's
representative feels that the loss should be valued at $5,000. How could the
appraisal process resolve this situation? - ANSWER: Adam and the insurer will each
select an appraiser, and the two appraisers will submit their differences to an
impartial umpire who will reach a resolution.
Which one of the following has special limits of liability within Coverage C of the HO-
3—Special Form (HO-3)? - ANSWER: Theft of firearms
A storm causes power lines to break ten miles from the insured's premises. The loss
of electrical power causes food in the insured's freezer to thaw and spoil. Coverage
for this loss is - ANSWER: Excluded because the power failure occurred off the
residence premises.
If law enforcement officials seize an insured's personal computer to search for files
that might be related to a crime, the insured under an HO-3—Special Form (HO-3)
may be unsuccessful in claiming a theft loss on the computer due to the - ANSWER:
Governmental Action exclusion.
Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-3)
policy. Sam stores a small fishing boat and trailer behind the house. While they are
out for the evening, a fire destroys most of their kitchen and completely destroys the
boat and trailer. Assuming Sam's boat and trailer are valued at $4,000 and ignoring
any deductible that may apply, what amount will their HO-3 insurer pay for the loss
of the boat and trailer? - ANSWER: $1,500
