FLORIDA 2-20 AGENTS LICENSE FINAL PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ 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
◉ 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.
◉ 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.
2026 COMPLETE QUESTIONS AND ANSWERS
◉ 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
◉ 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.
◉ 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.
