FLORIDA CIR PRACTICE EXAM
ACTUAL UPDATED QUESTIONS AND
CORRECT ANSWERS
Jared recently purchased a 25 foot watercraft with a 250 horsepower motor. While cruising
on the lake, he accidentally runs into Gary's boat, causing $2,500 in damage to Gary's hull.
How will Jared's insurer respond when Gary files a claim against Jared's homeowners policy
for the damage he caused? - CORRECT ANSWERS✅✅The insurer will deny the claim
because Jared's boat is excluded from his liability coverage
The Write Your Own program allows private insurers to: - CORRECT ANSWERS✅✅flood
policies.X
Veronica owns a pottery business and is insured under a commercial property policy. She
was in the process of building an extra structure for the sole purpose of kiln firing her pottery,
but after 40 days of waiting for it to be completed, she moved her business to a new location
without any intention of moving back. Her Builder's Risk Coverage Form was terminated
because: - CORRECT ANSWERS✅✅the property is abandoned.
Which of the following lines of coverage could be found in a Commercial Package Policy? -
CORRECT ANSWERS✅✅Workers' Compensation insuranceX
Auto insuranceX
One morning, Jill arrives to open the bank, only to find the door already unlocked. Upon
entering the bank, she sees the vault door has been blown open and a large amount of money
has been burned when an explosive charge went off. Which commercial crime insurance
coverage might cover the loss? - CORRECT ANSWERS✅✅Inside the Premises: Theft of
Money and Securities
Sam's Ocean Marine hull policy has a franchise deductible of $50,000. When Sam's ship
suffers $75,000 in damage after being overtaken by pirates, how much indemnification can
Sam expect to get from his insurer? - CORRECT ANSWERS✅✅$25,000X
Which of the following is NOT true about Citizens Insurance? - CORRECT
ANSWERS✅✅Citizens does not insure any type of commercial property.
,While Andrea was grocery shopping in BB Mart, the large Dairy sign fell off the wall and
landed on her. Because of her extensive injuries, Andrea sued BB Mart and was awarded
$375,000 in damages. BB Mart's Commercial General Liability policy has a general
aggregate limit of $1,000,000 and a per occurrence limit of $300,000. What is BB Mart's
general aggregate limit after the claim for Andrea's injuries is paid? - CORRECT
ANSWERS✅✅$700,000
Which of the following BEST describes the insurance provided by residual market insurance
programs? - CORRECT ANSWERS✅✅Usually a "last resort" form of insurance
A processing and servicing company would qualify for a BOP only if they have less than
_____ in annual revenues. - CORRECT ANSWERS✅✅$2 millionX
Sarah suffers acute back pain. Not satisfied with the specialists in her own network, Sarah
elects to see a back specialist outside the network established by her healthcare provider. Her
healthcare provider pays the amount that the same appointment would reasonably have cost
with an in-network specialist, and Sarah has to pay the additional costs out of her own pocket.
Which type of healthcare provider does Sarah belong to? - CORRECT
ANSWERS✅✅Preferred Provider Organization
Jackie lives in an area recently devastated by a hurricane and has filed a claim with her
insurance company, ABC Insurance. Jerry, an adjuster contracted by ABC Insurance, pulls up
to Jackie's house in a truck with the ABC Insurance logo on the side, and wearing a shirt with
the ABC Insurance logo on the front. Although Jackie doesn't know that Jerry is contracted
by ABC Insurance, she has reason to believe he has the authority to adjust her claim. This is
an example of: - CORRECT ANSWERS✅✅implied authority.
Which endorsement to the Commercial Crime policy would protect a bank against its legal
liability for burglary, robbery, destruction, or damage to customers' belongings kept in safe
deposit at the bank? - CORRECT ANSWERS✅✅Safe Depository
A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the
following items would NOT be covered under Coverage B of the Building and Personal
Property Coverage Form in her commercial property policy? - CORRECT ANSWERS✅✅A
paint mixer permanently affixed to the floor
,Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due
to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come
back to his home. During this time, he has spent $3,000 in hotel expenses, on top of his
monthly mortgage payment of $850. When he files a claim, how much will Sam receive
under Coverage D - Loss of Use? - CORRECT ANSWERS✅✅$3,850X
Which of the following may be covered under a Mechanical Breakdown Insurance policy? -
CORRECT ANSWERS✅✅
Bill carries $10,000 in PIP coverage with a $500 deductible. One day, he accidentally crashes
into a car stopped at a red light. The driver of the stopped car is miraculously free from
injury, but Bill's medical bills from the collision come to $14,000. How much will Bill's PIP
pay for his injuries? - CORRECT ANSWERS✅✅
A Florida company that is assigned to "Tier 2" for coverage under FWCJUA must pay: -
CORRECT ANSWERS✅✅rates that are 50% higher than voluntary market rates.
A large corporation owns a small hunting cabin in the woods, that it uses for occasional
weekend getaways. The corporation can insure the cabin against property damage with a: -
CORRECT ANSWERS✅✅liability policy.X
dwelling policy.X
During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes
were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can
receive for the replacement of the tree and bushes that were damaged by the windstorm? -
CORRECT ANSWERS✅✅
Which of the following would NOT be covered under the Comprehensive section of a PAP? -
CORRECT ANSWERS✅✅TheftX
On January 27, 2008, Ryan was using an exercise bike purchased from NusquamCycle when
the chain broke, causing him to fall and severely bruise his knee. It seemed to heal just fine,
but three years later, on January 25, 2011, Ryan's knee gave out while jogging. His doctor
told him that he'll need surgery and that this deterioration resulted from the earlier accident
with the exercise bike. Which of the following CGL policies may cover Ryan's claim filed
January 25, 2011? - CORRECT ANSWERS✅✅
, Clark is filling out an application for an insurance policy. The application asks for his birth
date, and Clark writes 1-24-67. His actual birthday is 1-24-63, but he likes to appear younger
so he uses a different date. This would be called: - CORRECT ANSWERS✅✅
Herb owns a processing plant outside of town that services all the local farmers. He's been
using over-the-road transportation but wants to streamline his business by using the railroads.
He contacts ABC Railway Transport and the two come to an agreement: ABC Railway will
run a sidetrack onto Herb's business premises, if Herb agrees not to hold ABC Railway
responsible for certain liabilities that could result from the sidetrack's use. This agreement
would fall under __________ in Herb's Commercial General Liability policy. - CORRECT
ANSWERS✅✅productX
Which of the following insurers is NOT engaging in an Unfair Claims Settlement Practice? -
CORRECT ANSWERS✅✅XYZ Insurance Company owns its own auto repair shop and
sends policyholders' cars there to be repaired.
Dr. Adams is in the middle of a malpractice lawsuit. Her insurer decides it will be more cost
effective to simply settle the suit rather than draw the process out over several months.
Assuming Dr. Adams holds a Professional Liability Policy, which of the following statements
is TRUE in regards to settling the claim? - CORRECT ANSWERS✅✅Dr. Adams' insurer
must seek her consent before settling the claim.
Guaranty Associations are funded by: - CORRECT ANSWERS✅✅insurers.
Allen works as an adjuster for Insurer B. Which of the following is FALSE? - CORRECT
ANSWERS✅✅Allen is a salaried employee who only sells Insurer B's products.
Which of the following statements regarding scheduled fidelity bonds is FALSE? -
CORRECT ANSWERS✅✅All employees are bonded for the same aggregate amount.
This agent works for only one insurer, and supervises and trains other agents. - CORRECT
ANSWERS✅✅General Agent
Which of the following is NOT true of the Company's Options provision in the standard fire
policy? - CORRECT ANSWERS✅✅
ACTUAL UPDATED QUESTIONS AND
CORRECT ANSWERS
Jared recently purchased a 25 foot watercraft with a 250 horsepower motor. While cruising
on the lake, he accidentally runs into Gary's boat, causing $2,500 in damage to Gary's hull.
How will Jared's insurer respond when Gary files a claim against Jared's homeowners policy
for the damage he caused? - CORRECT ANSWERS✅✅The insurer will deny the claim
because Jared's boat is excluded from his liability coverage
The Write Your Own program allows private insurers to: - CORRECT ANSWERS✅✅flood
policies.X
Veronica owns a pottery business and is insured under a commercial property policy. She
was in the process of building an extra structure for the sole purpose of kiln firing her pottery,
but after 40 days of waiting for it to be completed, she moved her business to a new location
without any intention of moving back. Her Builder's Risk Coverage Form was terminated
because: - CORRECT ANSWERS✅✅the property is abandoned.
Which of the following lines of coverage could be found in a Commercial Package Policy? -
CORRECT ANSWERS✅✅Workers' Compensation insuranceX
Auto insuranceX
One morning, Jill arrives to open the bank, only to find the door already unlocked. Upon
entering the bank, she sees the vault door has been blown open and a large amount of money
has been burned when an explosive charge went off. Which commercial crime insurance
coverage might cover the loss? - CORRECT ANSWERS✅✅Inside the Premises: Theft of
Money and Securities
Sam's Ocean Marine hull policy has a franchise deductible of $50,000. When Sam's ship
suffers $75,000 in damage after being overtaken by pirates, how much indemnification can
Sam expect to get from his insurer? - CORRECT ANSWERS✅✅$25,000X
Which of the following is NOT true about Citizens Insurance? - CORRECT
ANSWERS✅✅Citizens does not insure any type of commercial property.
,While Andrea was grocery shopping in BB Mart, the large Dairy sign fell off the wall and
landed on her. Because of her extensive injuries, Andrea sued BB Mart and was awarded
$375,000 in damages. BB Mart's Commercial General Liability policy has a general
aggregate limit of $1,000,000 and a per occurrence limit of $300,000. What is BB Mart's
general aggregate limit after the claim for Andrea's injuries is paid? - CORRECT
ANSWERS✅✅$700,000
Which of the following BEST describes the insurance provided by residual market insurance
programs? - CORRECT ANSWERS✅✅Usually a "last resort" form of insurance
A processing and servicing company would qualify for a BOP only if they have less than
_____ in annual revenues. - CORRECT ANSWERS✅✅$2 millionX
Sarah suffers acute back pain. Not satisfied with the specialists in her own network, Sarah
elects to see a back specialist outside the network established by her healthcare provider. Her
healthcare provider pays the amount that the same appointment would reasonably have cost
with an in-network specialist, and Sarah has to pay the additional costs out of her own pocket.
Which type of healthcare provider does Sarah belong to? - CORRECT
ANSWERS✅✅Preferred Provider Organization
Jackie lives in an area recently devastated by a hurricane and has filed a claim with her
insurance company, ABC Insurance. Jerry, an adjuster contracted by ABC Insurance, pulls up
to Jackie's house in a truck with the ABC Insurance logo on the side, and wearing a shirt with
the ABC Insurance logo on the front. Although Jackie doesn't know that Jerry is contracted
by ABC Insurance, she has reason to believe he has the authority to adjust her claim. This is
an example of: - CORRECT ANSWERS✅✅implied authority.
Which endorsement to the Commercial Crime policy would protect a bank against its legal
liability for burglary, robbery, destruction, or damage to customers' belongings kept in safe
deposit at the bank? - CORRECT ANSWERS✅✅Safe Depository
A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the
following items would NOT be covered under Coverage B of the Building and Personal
Property Coverage Form in her commercial property policy? - CORRECT ANSWERS✅✅A
paint mixer permanently affixed to the floor
,Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due
to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come
back to his home. During this time, he has spent $3,000 in hotel expenses, on top of his
monthly mortgage payment of $850. When he files a claim, how much will Sam receive
under Coverage D - Loss of Use? - CORRECT ANSWERS✅✅$3,850X
Which of the following may be covered under a Mechanical Breakdown Insurance policy? -
CORRECT ANSWERS✅✅
Bill carries $10,000 in PIP coverage with a $500 deductible. One day, he accidentally crashes
into a car stopped at a red light. The driver of the stopped car is miraculously free from
injury, but Bill's medical bills from the collision come to $14,000. How much will Bill's PIP
pay for his injuries? - CORRECT ANSWERS✅✅
A Florida company that is assigned to "Tier 2" for coverage under FWCJUA must pay: -
CORRECT ANSWERS✅✅rates that are 50% higher than voluntary market rates.
A large corporation owns a small hunting cabin in the woods, that it uses for occasional
weekend getaways. The corporation can insure the cabin against property damage with a: -
CORRECT ANSWERS✅✅liability policy.X
dwelling policy.X
During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes
were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can
receive for the replacement of the tree and bushes that were damaged by the windstorm? -
CORRECT ANSWERS✅✅
Which of the following would NOT be covered under the Comprehensive section of a PAP? -
CORRECT ANSWERS✅✅TheftX
On January 27, 2008, Ryan was using an exercise bike purchased from NusquamCycle when
the chain broke, causing him to fall and severely bruise his knee. It seemed to heal just fine,
but three years later, on January 25, 2011, Ryan's knee gave out while jogging. His doctor
told him that he'll need surgery and that this deterioration resulted from the earlier accident
with the exercise bike. Which of the following CGL policies may cover Ryan's claim filed
January 25, 2011? - CORRECT ANSWERS✅✅
, Clark is filling out an application for an insurance policy. The application asks for his birth
date, and Clark writes 1-24-67. His actual birthday is 1-24-63, but he likes to appear younger
so he uses a different date. This would be called: - CORRECT ANSWERS✅✅
Herb owns a processing plant outside of town that services all the local farmers. He's been
using over-the-road transportation but wants to streamline his business by using the railroads.
He contacts ABC Railway Transport and the two come to an agreement: ABC Railway will
run a sidetrack onto Herb's business premises, if Herb agrees not to hold ABC Railway
responsible for certain liabilities that could result from the sidetrack's use. This agreement
would fall under __________ in Herb's Commercial General Liability policy. - CORRECT
ANSWERS✅✅productX
Which of the following insurers is NOT engaging in an Unfair Claims Settlement Practice? -
CORRECT ANSWERS✅✅XYZ Insurance Company owns its own auto repair shop and
sends policyholders' cars there to be repaired.
Dr. Adams is in the middle of a malpractice lawsuit. Her insurer decides it will be more cost
effective to simply settle the suit rather than draw the process out over several months.
Assuming Dr. Adams holds a Professional Liability Policy, which of the following statements
is TRUE in regards to settling the claim? - CORRECT ANSWERS✅✅Dr. Adams' insurer
must seek her consent before settling the claim.
Guaranty Associations are funded by: - CORRECT ANSWERS✅✅insurers.
Allen works as an adjuster for Insurer B. Which of the following is FALSE? - CORRECT
ANSWERS✅✅Allen is a salaried employee who only sells Insurer B's products.
Which of the following statements regarding scheduled fidelity bonds is FALSE? -
CORRECT ANSWERS✅✅All employees are bonded for the same aggregate amount.
This agent works for only one insurer, and supervises and trains other agents. - CORRECT
ANSWERS✅✅General Agent
Which of the following is NOT true of the Company's Options provision in the standard fire
policy? - CORRECT ANSWERS✅✅
