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FLORIDA 2-20 AGENTS LICENSE EXAM|| ACTUAL TEST
BANK ALL QUESTIONS AND 100% CORRECT
ANSWERS|| LATEST AND VERIFIED EDITION ALREADY
GRADED A+|| ASSURED PASS
One of the main factors used in developing a base premium for a homeowners
policy is - ANSWER: The public protection class.
Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage
is $35,000. Ignoring any deductible that may apply, how much will Bert and
Maggie's insurer pay to replace the detached garage? - ANSWER: $30,000
Coverage for other structures is automatically provided under the HO-3—Special
Form (HO-3) policy with a limit that is - ANSWER: 10 percent of the Coverage A
limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a
Coverage C—Personal Property limit of $100,000. She owns a secondary
residence that contains $15,000 of personal property. Only her primary residence is
listed on the declarations page of the HO-3 policy. A fire destroys all of Renee's
personal property at her secondary residence. How much of this loss will be paid
by Renee's HO-3 policy? - ANSWER: $10,000
A homeowners policy premium is determined by first developing the base
premium. The base premium is influenced by certain factors, including which one
of the following? - ANSWER: Dwelling location
Ralph has an unendorsed HO-3—Special Form (HO-3) policy. While coming
home from a coin show, Ralph discovers that his automobile was broken into and a
package containing $2,000 in coins, some tools, and groceries was stolen.
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Disregarding any deductible that may apply, will Ralph's HO-3 insurer pay for the
loss of the coins? - ANSWER: Yes, the coins are covered up to a specified limit.
Jim and Sue, a young married couple, are under contract to purchase a
condominium unit. Which one of the following ISO policy forms is best designed
to meet their homeowners insurance needs? - ANSWER: HO-6—Unit-Owners
Form
Allen, a sole proprietor, is crossing the street when he is struck by a passing
uninsured auto. He sustains $2,500 in medical bills, $3,000 damage to the laptop
he was carrying, and $1,000 in lost wages. Allen's business auto policy has
$100,000 liability limit and $5,000 medical payments limit. Assuming there is no
other coverage, how much will his business auto policy pay? - ANSWER: $2,500
An animal damaged the interior of an insured's automobile while it was parked
with the windows down. Which one of the following types of physical damage
coverage under the Business Auto Coverage Form would cover this loss? -
ANSWER: Comprehensive
Martha drives her auto, which is insured under a Business Auto Coverage Form,
outside the state in which it is licensed. The other state requires a $25,000 bodily
injury limit for underinsured motorists coverage. Martha's policy does not provide
underinsured motorists coverage but does provide a $15,000 liability limit for
uninsured motorists coverage. How would Martha's Business Auto Coverage Form
respond to a $30,000 underinsured motorists bodily injury claim in the other state?
- ANSWER: Martha's policy would provide the $25,000 bodily injury limit
required by the other state for underinsured motorists coverage.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or
have them drive their own autos while on company business. Which one of the
following exposures is created if Bilo decides in favor of employee-owned autos? -
ANSWER: Employer's Nonownership Liability
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Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no
car himself since he always drives a company car. If you were the agent, what
coverage would you add to the BAP to give Joe liability coverage while he drives a
car not owned by the corporation? - ANSWER: Other Car coverage
Which one of the following losses would be covered by the business auto policy? -
ANSWER: The insured has agreed to pay for liability losses caused by the
insured's negligence that a shipper may incur while the insured is hauling goods for
the shipper.
For commercial auto insurance, a truck, tractor, or trailer is non-zone rated if it is -
ANSWER: A light truck operating over any distance.
Mitchell is a highway contractor whose company is covered with a workers
compensation policy and an unendorsed business auto policy. Which one of the
following losses would be covered by his business auto policy? - ANSWER: An
employee runs over a subcontractor's equipment with an owned auto.
Joe Motors, which services automobiles, wants to maintain the goodwill of its
customers. This is best accomplished by - ANSWER: Purchasing garagekeepers
insurance.
Wilson was driving his business auto when it was struck by a hit-and-run driver.
He looked to his business auto policy for coverage for his injuries. Which one of
the following symbols shown on his policy automatically provides such coverage?
- ANSWER: Symbol 6-Owned Autos Subject to a Compulsory Uninsured
Motorists Law
Kenneth, the named insured under a Business Auto Coverage Form with symbol 1
shown for liability coverage, causes an automobile accident while driving a rental
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car on a business trip. Is Kenneth covered under the liability insuring agreement of
his Business Auto Coverage Form for this accident? - ANSWER: Yes, because
Kenneth, the named insured, is an insured for any auto.
Bob, an employee of Tank's Trucks, is backing one of Tank's trucks toward the
loading dock on the insured premises. Bob accidentally strikes Alice, another
employee, while she is directing Bob toward the loading dock. Alice sues Bob for
her injuries. Is Bob covered under Tank's Trucks' unendorsed Business Auto
Coverage Form for liability coverage? - ANSWER: No, because fellow
employees' suits are excluded.
The insured has a business auto policy. Vandals break a window in the insured's
pickup truck. While the insured is waiting for the insurance company to appraise
the claim, rain enters through the broken window and causes additional damage.
What is the insurance company's liability for the loss? - ANSWER: The insurance
company is liable for the damage by the vandals but not the damage from the rain.
If an insured has failed to cooperate with an insurer in the settlement of a claim,
which one of the following policy conditions prevents the insured from suing the
insurer if the insured is not satisfied with the insurer's handling of the claim? -
ANSWER: Legal Action Against the Insurer
Joan has a business auto policy. Which one of the following losses would be
covered as auto physical damage? - ANSWER: The cost to repair vehicle damage
that results from hitting a deer
In the liability coverage agreement of the business auto policy, the insurer
expresses its three distinct duties. Which one of the following is among these
duties? - ANSWER: A duty to pay covered pollution cost
FLORIDA 2-20 AGENTS LICENSE EXAM|| ACTUAL TEST
BANK ALL QUESTIONS AND 100% CORRECT
ANSWERS|| LATEST AND VERIFIED EDITION ALREADY
GRADED A+|| ASSURED PASS
One of the main factors used in developing a base premium for a homeowners
policy is - ANSWER: The public protection class.
Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage
is $35,000. Ignoring any deductible that may apply, how much will Bert and
Maggie's insurer pay to replace the detached garage? - ANSWER: $30,000
Coverage for other structures is automatically provided under the HO-3—Special
Form (HO-3) policy with a limit that is - ANSWER: 10 percent of the Coverage A
limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a
Coverage C—Personal Property limit of $100,000. She owns a secondary
residence that contains $15,000 of personal property. Only her primary residence is
listed on the declarations page of the HO-3 policy. A fire destroys all of Renee's
personal property at her secondary residence. How much of this loss will be paid
by Renee's HO-3 policy? - ANSWER: $10,000
A homeowners policy premium is determined by first developing the base
premium. The base premium is influenced by certain factors, including which one
of the following? - ANSWER: Dwelling location
Ralph has an unendorsed HO-3—Special Form (HO-3) policy. While coming
home from a coin show, Ralph discovers that his automobile was broken into and a
package containing $2,000 in coins, some tools, and groceries was stolen.
,2|Pag e
Disregarding any deductible that may apply, will Ralph's HO-3 insurer pay for the
loss of the coins? - ANSWER: Yes, the coins are covered up to a specified limit.
Jim and Sue, a young married couple, are under contract to purchase a
condominium unit. Which one of the following ISO policy forms is best designed
to meet their homeowners insurance needs? - ANSWER: HO-6—Unit-Owners
Form
Allen, a sole proprietor, is crossing the street when he is struck by a passing
uninsured auto. He sustains $2,500 in medical bills, $3,000 damage to the laptop
he was carrying, and $1,000 in lost wages. Allen's business auto policy has
$100,000 liability limit and $5,000 medical payments limit. Assuming there is no
other coverage, how much will his business auto policy pay? - ANSWER: $2,500
An animal damaged the interior of an insured's automobile while it was parked
with the windows down. Which one of the following types of physical damage
coverage under the Business Auto Coverage Form would cover this loss? -
ANSWER: Comprehensive
Martha drives her auto, which is insured under a Business Auto Coverage Form,
outside the state in which it is licensed. The other state requires a $25,000 bodily
injury limit for underinsured motorists coverage. Martha's policy does not provide
underinsured motorists coverage but does provide a $15,000 liability limit for
uninsured motorists coverage. How would Martha's Business Auto Coverage Form
respond to a $30,000 underinsured motorists bodily injury claim in the other state?
- ANSWER: Martha's policy would provide the $25,000 bodily injury limit
required by the other state for underinsured motorists coverage.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or
have them drive their own autos while on company business. Which one of the
following exposures is created if Bilo decides in favor of employee-owned autos? -
ANSWER: Employer's Nonownership Liability
,3|Pag e
Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no
car himself since he always drives a company car. If you were the agent, what
coverage would you add to the BAP to give Joe liability coverage while he drives a
car not owned by the corporation? - ANSWER: Other Car coverage
Which one of the following losses would be covered by the business auto policy? -
ANSWER: The insured has agreed to pay for liability losses caused by the
insured's negligence that a shipper may incur while the insured is hauling goods for
the shipper.
For commercial auto insurance, a truck, tractor, or trailer is non-zone rated if it is -
ANSWER: A light truck operating over any distance.
Mitchell is a highway contractor whose company is covered with a workers
compensation policy and an unendorsed business auto policy. Which one of the
following losses would be covered by his business auto policy? - ANSWER: An
employee runs over a subcontractor's equipment with an owned auto.
Joe Motors, which services automobiles, wants to maintain the goodwill of its
customers. This is best accomplished by - ANSWER: Purchasing garagekeepers
insurance.
Wilson was driving his business auto when it was struck by a hit-and-run driver.
He looked to his business auto policy for coverage for his injuries. Which one of
the following symbols shown on his policy automatically provides such coverage?
- ANSWER: Symbol 6-Owned Autos Subject to a Compulsory Uninsured
Motorists Law
Kenneth, the named insured under a Business Auto Coverage Form with symbol 1
shown for liability coverage, causes an automobile accident while driving a rental
, 4|Pag e
car on a business trip. Is Kenneth covered under the liability insuring agreement of
his Business Auto Coverage Form for this accident? - ANSWER: Yes, because
Kenneth, the named insured, is an insured for any auto.
Bob, an employee of Tank's Trucks, is backing one of Tank's trucks toward the
loading dock on the insured premises. Bob accidentally strikes Alice, another
employee, while she is directing Bob toward the loading dock. Alice sues Bob for
her injuries. Is Bob covered under Tank's Trucks' unendorsed Business Auto
Coverage Form for liability coverage? - ANSWER: No, because fellow
employees' suits are excluded.
The insured has a business auto policy. Vandals break a window in the insured's
pickup truck. While the insured is waiting for the insurance company to appraise
the claim, rain enters through the broken window and causes additional damage.
What is the insurance company's liability for the loss? - ANSWER: The insurance
company is liable for the damage by the vandals but not the damage from the rain.
If an insured has failed to cooperate with an insurer in the settlement of a claim,
which one of the following policy conditions prevents the insured from suing the
insurer if the insured is not satisfied with the insurer's handling of the claim? -
ANSWER: Legal Action Against the Insurer
Joan has a business auto policy. Which one of the following losses would be
covered as auto physical damage? - ANSWER: The cost to repair vehicle damage
that results from hitting a deer
In the liability coverage agreement of the business auto policy, the insurer
expresses its three distinct duties. Which one of the following is among these
duties? - ANSWER: A duty to pay covered pollution cost
