Page 1 of 61
FLORIDA 2-20 AGENTS LICENSE ACTUAL
EXAM QUESTIONS WITH VERIFIED
SOLUTIONS
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.
,Page 2 of 61
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
,Page 3 of 61
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
The Florida Valued Policy Law applies to: -- ANSWER--mobile homes
For a Dwelling Flood policy, which is correct: -- ANSWER--Primary residences
are covered at replacement cost on building losses.
, Page 4 of 61
Sally insures her house with an unendorsed HO-3—Special Form (HO-3) with a
Coverage A—Dwelling limit of $275,000, which is the replacement cost of the
house. A fire destroys the house including a collection of blueprints belonging to
Sally's employer, valued at $10,000. Sally was storing the blueprints at her
home while her office was changing locations. Assuming no deductible applies,
how much, if any, will Sally's HO-3 insurer pay to replace the blueprints? --
ANSWER--$0
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
FLORIDA 2-20 AGENTS LICENSE ACTUAL
EXAM QUESTIONS WITH VERIFIED
SOLUTIONS
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.
,Page 2 of 61
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
,Page 3 of 61
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
The Florida Valued Policy Law applies to: -- ANSWER--mobile homes
For a Dwelling Flood policy, which is correct: -- ANSWER--Primary residences
are covered at replacement cost on building losses.
, Page 4 of 61
Sally insures her house with an unendorsed HO-3—Special Form (HO-3) with a
Coverage A—Dwelling limit of $275,000, which is the replacement cost of the
house. A fire destroys the house including a collection of blueprints belonging to
Sally's employer, valued at $10,000. Sally was storing the blueprints at her
home while her office was changing locations. Assuming no deductible applies,
how much, if any, will Sally's HO-3 insurer pay to replace the blueprints? --
ANSWER--$0
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
