2-20 PRACTICE EXAM QUESTIONS AND
ANSWERS 2024 - 2025
All of the following are duties of the 'Office of Insurance Regulation' EXCEPT: ANS -Make rating rules
When the insurer pays the proportion, which its limit bears to all limits this is called: ANS -Pro rata
A condition that states that if an insurer adopts a revision which would broaden coverage without
additional premium, the insured would receive the benefit called: ANS -Liberalization
A provision that provides that the insurance apply separately to each insured as if other insureds did not
exist is called: ANS -Severability
A policy condition that is based on the insured's information on the application is called a: ANS -
Warranty
An untrue statement made by the insured in an application is called: ANS -Misrepresentation
The failure of the insured to reveal a relevant fact in applying for insurance is called: ANS -Concealment
Part B- Medical Payments covers all of the following EXCEPT: ANS -Using your motorcycle
Ashlee has a PAP with Part A limits of 100,000. Ashlee is involved in an accident and is found to be
negligent. The accident caused $120,000 and $25,000 in defense costs. What would Ashlee's PAP pay?
ANS -$125,000
To be eligible as "your covered auto" under the PAP, all of the following are covered EXCEPT: ANS -
Motorcycle
All of the following vehicles are eligible for the PAP EXCEPT: ANS -Leased vehicle for less than 5 months
The Florida Financial Responsibility Law is triggered by all of the following EXCEPT: ANS -Accident
involves no bodily injury
Prejudgement interest awarded against the insured in a liability suit is also considered: ANS -Damages
Supplementary Payments under Part A- liability are in addition to the: ANS -Limits
The deductible amount for glass breakage is: ANS -$0
All of the following are 'Mechanical Breakdown' exclusions EXCEPT: ANS -Glass Breakage
Which country is not in the 'Mechanical Breakdown' territory: ANS -Mexico
Towing and Labor endorsement comes with the following limits EXCEPT: ANS -$250
Which PAP endorsement covers two or more relatives or individuals residing together? ANS -Joint
Ownership Coverage
What is not considered public or livery conveyance? ANS -Car pool
,All of the following are covered under Homeowners Section II Liability EXCEPT: ANS -Boats powered by
outboard motor 50 HP owned by insured
All of the following are Additional coverage's under Homeowners Section II-Liability EXCEPT: ANS -
Damage to Property of Others - up to $5,000
If an insured has an HO-3 policy, they will receive replacement cost coverage on a loss to the dwelling if:
ANS -At the time of loss, the limit is 80% or more of the replacement value of the dwelling
What is the limit of coverage D (loss of use) on an HO-3? ANS -30% of Coverage A
The association's gazebo fire damage results in an $800 assessment fee. The HO-3 will pay how much of
the assessment? ANS -$800
Lightning strikes a tree on the insured's location and falls on his residence. How will the HO-3 respond?
ANS -$500 for any one tree, shrub or plant
All of the following statements are true regarding the 'DP' difference EXCEPT: ANS -DP-3 covers
building for "all-risks"
The HO-8 may be broadened to include off-premises theft losses to a limit of: ANS -$1,000
For homeowners rating, a key factor is established and multiplied by a: ANS -Key factor
The homeowner Section II endorsement 'Personal Injury Liability' adds all of the following coverage's
EXCEPT: ANS -Misrepresentation
Physical damage 'endorsement' for certain owned golf carts has an optional coverage of: ANS -Collision
To receive homeowners replacement cost, the insured must notify the company of intent to replace
within how many days? ANS -180
A named insured who regularly 'rents' an apartment on the residence premises is covered for how much
for landlord furnishings? ANS -$2,500
Which 'Garage Insurance' symbol covers "autos left for service, repair, storage and safekeeping?" ANS -
Symbol 26
How much is the deductible for 'Garage Insurance' that results from property damage by the named
insured's work? ANS -$100
All of the following are exclusions under 'Garagekeepers' EXCEPT: ANS -Explosion
All of the following coverage's must be added by endorsement to 'Garagekeepers' EXCEPT: ANS -
Physical Damage
Which Business Auto symbol covers "owned autos only"? ANS -Symbol 2
Which Business Auto symbol covers "specifically described autos"? ANS -Symbol 7
Which Garage Insurance symbol covers "hired autos only"? ANS -Symbol 28
Which Garage Insurance symbol covers "owned auto subject to no- fault"? ANS -Symbol 31
, All of the following are 'Commercial Property Causes of Loss' general exclusions EXCEPT: ANS -Animals
All of the following are 'Optional Coverages' found in the 'Building and Personal Property Coverage' form
EXCEPT: ANS -Extended Period of Indemnity
What is the 'Building and Personal Property' form limit on Valuable Papers and Records? ANS -$2,500
All of the following are additional coverages under the Building and Personal Property Coverage Form
EXCEPT: ANS -Property Off-Premises
What coverage form reimburses the insured for extraordinary expenses incurred to maintain
uninterrupted operations? ANS -Extra Expense Coverage Form
The Business Income Coverage Form's Optional Coverage Maximum Period of Indemnity limits the
period of indemnity to ____ days ANS -120
In a claims-made CGL form, the policy is: ANS -Excess over any other policy that is not claims-made
The CGL form which covers the insured against claims for BI and PD arising out of work performed for
the insured by another is called: ANS -Owners and Contractors Protective Liability Form
The Physicians, Surgeons, and Dentists form excludes all of the following EXCEPT: ANS -Medical
incidents
The basic limits or the Physicians, Surgeon and Dentist form are: ANS -$250,000/$750,000
Lawyers Professional Liability form basic limits are: ANS -$25,000/$75,000
Farm Liability includes all of the following coverages EXCEPT: ANS -Completed products and operations
Under the Employment-Related Practices Liability Program insureds do NOT include: ANS -Trusts
The co-payment provision under the Employment -Related Practices Liability policy provides sharing by
the insured of: ANS -Defense expenses
Custom Farming endorsement provides coverage for: ANS -Farming for another for a charge
The CGL excludes damages to the insured's own work EXCEPT that of: ANS -A subcontractor
A Claims-Made policy has an effective date of 1-1-13. Which of the following dates could not be used as
the retroactive date? ANS -1-1-14
A Claims-Made policy had an effective date of 1-1-10. The retroactive date was also 1-1-10. The policy
was renewed in 11, 12, and 13. A claim from 10 is received by insured in 13. Which policy will pay? ANS
-2013
The additional coverage limit for Pollution Clean Up and Removal under the Businessowners policy ANS
-$10,000
What is the limit of Glass Coverage under the Businessowners policy? ANS -Cost
All of the following make up the coverage parts of the Commercial Package Policy EXCEPT: ANS -
Workers Compensation
ANSWERS 2024 - 2025
All of the following are duties of the 'Office of Insurance Regulation' EXCEPT: ANS -Make rating rules
When the insurer pays the proportion, which its limit bears to all limits this is called: ANS -Pro rata
A condition that states that if an insurer adopts a revision which would broaden coverage without
additional premium, the insured would receive the benefit called: ANS -Liberalization
A provision that provides that the insurance apply separately to each insured as if other insureds did not
exist is called: ANS -Severability
A policy condition that is based on the insured's information on the application is called a: ANS -
Warranty
An untrue statement made by the insured in an application is called: ANS -Misrepresentation
The failure of the insured to reveal a relevant fact in applying for insurance is called: ANS -Concealment
Part B- Medical Payments covers all of the following EXCEPT: ANS -Using your motorcycle
Ashlee has a PAP with Part A limits of 100,000. Ashlee is involved in an accident and is found to be
negligent. The accident caused $120,000 and $25,000 in defense costs. What would Ashlee's PAP pay?
ANS -$125,000
To be eligible as "your covered auto" under the PAP, all of the following are covered EXCEPT: ANS -
Motorcycle
All of the following vehicles are eligible for the PAP EXCEPT: ANS -Leased vehicle for less than 5 months
The Florida Financial Responsibility Law is triggered by all of the following EXCEPT: ANS -Accident
involves no bodily injury
Prejudgement interest awarded against the insured in a liability suit is also considered: ANS -Damages
Supplementary Payments under Part A- liability are in addition to the: ANS -Limits
The deductible amount for glass breakage is: ANS -$0
All of the following are 'Mechanical Breakdown' exclusions EXCEPT: ANS -Glass Breakage
Which country is not in the 'Mechanical Breakdown' territory: ANS -Mexico
Towing and Labor endorsement comes with the following limits EXCEPT: ANS -$250
Which PAP endorsement covers two or more relatives or individuals residing together? ANS -Joint
Ownership Coverage
What is not considered public or livery conveyance? ANS -Car pool
,All of the following are covered under Homeowners Section II Liability EXCEPT: ANS -Boats powered by
outboard motor 50 HP owned by insured
All of the following are Additional coverage's under Homeowners Section II-Liability EXCEPT: ANS -
Damage to Property of Others - up to $5,000
If an insured has an HO-3 policy, they will receive replacement cost coverage on a loss to the dwelling if:
ANS -At the time of loss, the limit is 80% or more of the replacement value of the dwelling
What is the limit of coverage D (loss of use) on an HO-3? ANS -30% of Coverage A
The association's gazebo fire damage results in an $800 assessment fee. The HO-3 will pay how much of
the assessment? ANS -$800
Lightning strikes a tree on the insured's location and falls on his residence. How will the HO-3 respond?
ANS -$500 for any one tree, shrub or plant
All of the following statements are true regarding the 'DP' difference EXCEPT: ANS -DP-3 covers
building for "all-risks"
The HO-8 may be broadened to include off-premises theft losses to a limit of: ANS -$1,000
For homeowners rating, a key factor is established and multiplied by a: ANS -Key factor
The homeowner Section II endorsement 'Personal Injury Liability' adds all of the following coverage's
EXCEPT: ANS -Misrepresentation
Physical damage 'endorsement' for certain owned golf carts has an optional coverage of: ANS -Collision
To receive homeowners replacement cost, the insured must notify the company of intent to replace
within how many days? ANS -180
A named insured who regularly 'rents' an apartment on the residence premises is covered for how much
for landlord furnishings? ANS -$2,500
Which 'Garage Insurance' symbol covers "autos left for service, repair, storage and safekeeping?" ANS -
Symbol 26
How much is the deductible for 'Garage Insurance' that results from property damage by the named
insured's work? ANS -$100
All of the following are exclusions under 'Garagekeepers' EXCEPT: ANS -Explosion
All of the following coverage's must be added by endorsement to 'Garagekeepers' EXCEPT: ANS -
Physical Damage
Which Business Auto symbol covers "owned autos only"? ANS -Symbol 2
Which Business Auto symbol covers "specifically described autos"? ANS -Symbol 7
Which Garage Insurance symbol covers "hired autos only"? ANS -Symbol 28
Which Garage Insurance symbol covers "owned auto subject to no- fault"? ANS -Symbol 31
, All of the following are 'Commercial Property Causes of Loss' general exclusions EXCEPT: ANS -Animals
All of the following are 'Optional Coverages' found in the 'Building and Personal Property Coverage' form
EXCEPT: ANS -Extended Period of Indemnity
What is the 'Building and Personal Property' form limit on Valuable Papers and Records? ANS -$2,500
All of the following are additional coverages under the Building and Personal Property Coverage Form
EXCEPT: ANS -Property Off-Premises
What coverage form reimburses the insured for extraordinary expenses incurred to maintain
uninterrupted operations? ANS -Extra Expense Coverage Form
The Business Income Coverage Form's Optional Coverage Maximum Period of Indemnity limits the
period of indemnity to ____ days ANS -120
In a claims-made CGL form, the policy is: ANS -Excess over any other policy that is not claims-made
The CGL form which covers the insured against claims for BI and PD arising out of work performed for
the insured by another is called: ANS -Owners and Contractors Protective Liability Form
The Physicians, Surgeons, and Dentists form excludes all of the following EXCEPT: ANS -Medical
incidents
The basic limits or the Physicians, Surgeon and Dentist form are: ANS -$250,000/$750,000
Lawyers Professional Liability form basic limits are: ANS -$25,000/$75,000
Farm Liability includes all of the following coverages EXCEPT: ANS -Completed products and operations
Under the Employment-Related Practices Liability Program insureds do NOT include: ANS -Trusts
The co-payment provision under the Employment -Related Practices Liability policy provides sharing by
the insured of: ANS -Defense expenses
Custom Farming endorsement provides coverage for: ANS -Farming for another for a charge
The CGL excludes damages to the insured's own work EXCEPT that of: ANS -A subcontractor
A Claims-Made policy has an effective date of 1-1-13. Which of the following dates could not be used as
the retroactive date? ANS -1-1-14
A Claims-Made policy had an effective date of 1-1-10. The retroactive date was also 1-1-10. The policy
was renewed in 11, 12, and 13. A claim from 10 is received by insured in 13. Which policy will pay? ANS
-2013
The additional coverage limit for Pollution Clean Up and Removal under the Businessowners policy ANS
-$10,000
What is the limit of Glass Coverage under the Businessowners policy? ANS -Cost
All of the following make up the coverage parts of the Commercial Package Policy EXCEPT: ANS -
Workers Compensation
