FLORIDA PROPERTY & CASUALTY INSURANCE,
GLOSSARY FOR 220 LICENSE, FLORIDA 2-20 AGENTS
LICENSE EXAM QUESTIONS WITH ACCURATE ANSWERS
The FAJUA is composed of: Accurate Answer - All companies
licensed to write auto insurance in Florida
A coverage that is similar to premises and operations coverage in the
Commercial General Liability Policy covering bodily injury and property
damage liability for aviation risks is defined as: Accurate Answer -
Airport and Air Meet Liability
Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000.
Insured losses include $25,000 furniture, clothing and other ordinary
personal property plus $5,000 damage to guns and $5,000 damage to
jewelry, furs. Insured will recover: Accurate Answer - $29,000 less
any deductible
Each of the following divisions falls under The Department of Financial
Services EXCEPT? Accurate Answer - The Division of Consumer
Activities
Which of the following provides for loss of money and securities outside
the premises in the care, custody and control of a messenger or armored
car service resulting from theft, disappearance, or destruction?
Accurate Answer - Outside the Premises
What is the standard All Perils deductible in the Commercial Property
Policy? Accurate Answer - $500
Which of the following best describes a "Controlled" Inland Marine Form?
Accurate Answer - Standard provisions form is written according to filed
rules and rates
Under a Personal Articles Floater, which of the following is covered as
valued property? Accurate Answer - Fine Arts
,Under the Dwelling Program forms, vandalism is not covered after the
building has been vacant for how many days? Accurate Answer - 60
days
Under a Commercial General Liability Contract, how many days notice of
cancellation must the insurer provide for non-payment of premium?
Accurate Answer - 10
Under Additional Coverages, how much applies for loss assessments
imposed by an association against the insured for damage to property
caused by a peril insured against under Coverage A? Accurate
Answer - $1,000
The following are basic characteristics of a Property or Liability Insurance
Contract EXCEPT: Accurate Answer - Loss Settlement Contract
Rob has PIP with a $1,000 deductible. He has an auto accident causing
$6,000 in medical bills. How much will his PIP pay? Accurate
Answer - $4,000
- $6,000 - $1,000 deductible = $5,000 x 80% = $4,000
QRS Construction Company wants to provide the local school district with a
price for building a new grammar school. In order to accept the price, the
school board needs a bond that would pay the difference between QRS's
price and the next highest price. What kind of bond does QRS need to
provide to the school district? Accurate Answer - Bid bond
- The Bid Bond is required to accompany a bid for a contract which will
require that the successful bidder furnish further bond if awarded the job.
The guarantee is that if the bid is accepted, the bidder will enter into the
contract and will satisfy further bonding requirements for the job
Which of the following guarantees the payment of materials in full upon
completion of the work? Accurate Answer - Payment Bond
Which of the following events would be covered under an HO-3? I. A sewer
line became clogged and the toilet in the house backed up and overflowed,
damaging the carpet. II. Wind blew a front door open and rain damaged the
carpet. III. The neighbor's German Shepard damaged the garage doorframe
,while trying to get in the insured's garage to eat the dog food stored there.
Accurate Answer - II and III only
All of the following are located on a Boiler and Machinery Coverage form
EXCEPT: Accurate Answer - Exhibits
The Motor Truck Cargo Policy: Accurate Answer - Insures a truck
carrier for liability arising out of the transportation of cargo.
All of the following are types of property that can be covered under a
Personal Articles Floater EXCEPT: Accurate Answer - Firearms
What is the standard deductible for Employee Theft coverage?
Accurate Answer - $500
The Forgery or Alteration coverage under a Businessowners Policy is:
Accurate Answer - $2,000
How many hours of continuing education is a newly licensed agent
required to have for their first Continuing Education compliance period?
Accurate Answer - 24
Which of the following is NOT true regarding sole proprietors and partners
in the non-construction industry as they relate to Workers Compensation?
Accurate Answer - A maximum of three can elect to be covered
Which of the following is not a way to purchase Uninsured Motorist
Coverage? Accurate Answer - More than your bodily injury limits
Camden's Wood Shop will be dropping off new cabinets at a jobsite on
Monday, but will not actually install them until Tuesday. What kind of
policy will they need to cover any loss to the cabinets? Accurate
Answer - Installation Floater
This Hospital Form applies with "medical incident" defined as an act or
omission in furnishing of professional services related to making of a blood
donation under the supervision of the insured: Accurate Answer -
Blood Banks
, Which of the following is not a valid deductible for hurricane in the
Dwelling program? Accurate Answer - 1%
If a loss occurs under the Building and Personal Property Coverage Form
with the optional replacement cost provision, how long does the insured
have to give intent to replace the damaged item in order to receive
replacement cost adjustment? Accurate Answer - 180
Which of the following is NOT a common deductible in an Aircraft Hull
Policy? Accurate Answer - 2%
How many insuring agreements are there in a Commercial Crime Policy?
Accurate Answer - 7
Barry was driving his car in Florida where he has lived all his life when he
is hit by an at-fault driver. Barry has $10,000 in medical bills, basic PIP with
a $1,000 deductible and no medical payments coverage. How much will the
at-fault driver have to pay for Barry's injuries? Accurate Answer -
$2,800
- $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP.
Barry can hold the at-fault driver responsible for the difference of PIPs
maximum limit of $10,000 and the $7,200, which is $2,800
During a break-in at a business, the safe is removed from the location. This
is defined as: Accurate Answer - Safe Burglary
The Boiler and Machinery Policy provides automatic coverage for boilers at
newly acquired locations for: Accurate Answer - 90 days
Which of the following statements is false regarding Co-Payment:
Accurate Answer - Subject to a minimum amount
Which statement below best describes the insured's position under the
Florida No-Fault Law when the total medical and work loss bill exceeds the
PIP benefits without exceeding a threshold? Accurate Answer -
Insured can sue for the economic loss not paid or payable under PIP; no
suit for intangible damages such as pain and suffering
GLOSSARY FOR 220 LICENSE, FLORIDA 2-20 AGENTS
LICENSE EXAM QUESTIONS WITH ACCURATE ANSWERS
The FAJUA is composed of: Accurate Answer - All companies
licensed to write auto insurance in Florida
A coverage that is similar to premises and operations coverage in the
Commercial General Liability Policy covering bodily injury and property
damage liability for aviation risks is defined as: Accurate Answer -
Airport and Air Meet Liability
Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000.
Insured losses include $25,000 furniture, clothing and other ordinary
personal property plus $5,000 damage to guns and $5,000 damage to
jewelry, furs. Insured will recover: Accurate Answer - $29,000 less
any deductible
Each of the following divisions falls under The Department of Financial
Services EXCEPT? Accurate Answer - The Division of Consumer
Activities
Which of the following provides for loss of money and securities outside
the premises in the care, custody and control of a messenger or armored
car service resulting from theft, disappearance, or destruction?
Accurate Answer - Outside the Premises
What is the standard All Perils deductible in the Commercial Property
Policy? Accurate Answer - $500
Which of the following best describes a "Controlled" Inland Marine Form?
Accurate Answer - Standard provisions form is written according to filed
rules and rates
Under a Personal Articles Floater, which of the following is covered as
valued property? Accurate Answer - Fine Arts
,Under the Dwelling Program forms, vandalism is not covered after the
building has been vacant for how many days? Accurate Answer - 60
days
Under a Commercial General Liability Contract, how many days notice of
cancellation must the insurer provide for non-payment of premium?
Accurate Answer - 10
Under Additional Coverages, how much applies for loss assessments
imposed by an association against the insured for damage to property
caused by a peril insured against under Coverage A? Accurate
Answer - $1,000
The following are basic characteristics of a Property or Liability Insurance
Contract EXCEPT: Accurate Answer - Loss Settlement Contract
Rob has PIP with a $1,000 deductible. He has an auto accident causing
$6,000 in medical bills. How much will his PIP pay? Accurate
Answer - $4,000
- $6,000 - $1,000 deductible = $5,000 x 80% = $4,000
QRS Construction Company wants to provide the local school district with a
price for building a new grammar school. In order to accept the price, the
school board needs a bond that would pay the difference between QRS's
price and the next highest price. What kind of bond does QRS need to
provide to the school district? Accurate Answer - Bid bond
- The Bid Bond is required to accompany a bid for a contract which will
require that the successful bidder furnish further bond if awarded the job.
The guarantee is that if the bid is accepted, the bidder will enter into the
contract and will satisfy further bonding requirements for the job
Which of the following guarantees the payment of materials in full upon
completion of the work? Accurate Answer - Payment Bond
Which of the following events would be covered under an HO-3? I. A sewer
line became clogged and the toilet in the house backed up and overflowed,
damaging the carpet. II. Wind blew a front door open and rain damaged the
carpet. III. The neighbor's German Shepard damaged the garage doorframe
,while trying to get in the insured's garage to eat the dog food stored there.
Accurate Answer - II and III only
All of the following are located on a Boiler and Machinery Coverage form
EXCEPT: Accurate Answer - Exhibits
The Motor Truck Cargo Policy: Accurate Answer - Insures a truck
carrier for liability arising out of the transportation of cargo.
All of the following are types of property that can be covered under a
Personal Articles Floater EXCEPT: Accurate Answer - Firearms
What is the standard deductible for Employee Theft coverage?
Accurate Answer - $500
The Forgery or Alteration coverage under a Businessowners Policy is:
Accurate Answer - $2,000
How many hours of continuing education is a newly licensed agent
required to have for their first Continuing Education compliance period?
Accurate Answer - 24
Which of the following is NOT true regarding sole proprietors and partners
in the non-construction industry as they relate to Workers Compensation?
Accurate Answer - A maximum of three can elect to be covered
Which of the following is not a way to purchase Uninsured Motorist
Coverage? Accurate Answer - More than your bodily injury limits
Camden's Wood Shop will be dropping off new cabinets at a jobsite on
Monday, but will not actually install them until Tuesday. What kind of
policy will they need to cover any loss to the cabinets? Accurate
Answer - Installation Floater
This Hospital Form applies with "medical incident" defined as an act or
omission in furnishing of professional services related to making of a blood
donation under the supervision of the insured: Accurate Answer -
Blood Banks
, Which of the following is not a valid deductible for hurricane in the
Dwelling program? Accurate Answer - 1%
If a loss occurs under the Building and Personal Property Coverage Form
with the optional replacement cost provision, how long does the insured
have to give intent to replace the damaged item in order to receive
replacement cost adjustment? Accurate Answer - 180
Which of the following is NOT a common deductible in an Aircraft Hull
Policy? Accurate Answer - 2%
How many insuring agreements are there in a Commercial Crime Policy?
Accurate Answer - 7
Barry was driving his car in Florida where he has lived all his life when he
is hit by an at-fault driver. Barry has $10,000 in medical bills, basic PIP with
a $1,000 deductible and no medical payments coverage. How much will the
at-fault driver have to pay for Barry's injuries? Accurate Answer -
$2,800
- $10,000 - $1,000 = $9,000 x 80% = $7,200, the amount paid out by PIP.
Barry can hold the at-fault driver responsible for the difference of PIPs
maximum limit of $10,000 and the $7,200, which is $2,800
During a break-in at a business, the safe is removed from the location. This
is defined as: Accurate Answer - Safe Burglary
The Boiler and Machinery Policy provides automatic coverage for boilers at
newly acquired locations for: Accurate Answer - 90 days
Which of the following statements is false regarding Co-Payment:
Accurate Answer - Subject to a minimum amount
Which statement below best describes the insured's position under the
Florida No-Fault Law when the total medical and work loss bill exceeds the
PIP benefits without exceeding a threshold? Accurate Answer -
Insured can sue for the economic loss not paid or payable under PIP; no
suit for intangible damages such as pain and suffering
