FLORIDA 2 20 AGENTS LICENSE 2026
PRACTICE TEST QUESTIONS AND VERIFIED
ANSWERS
◉ Which one of the following statements is correct with respect to
the Commercial Property Conditions? Answer: They apply to all
coverage forms included in a commercial property coverage part,
unless a coverage form contains a condition to the contrary.
◉ The owners of Uncle Reggie's Steakhouse are insured under a
Building and Personal Property Coverage Form (BPP) that covers
their building and business personal property for $350,000 and
$100,000, respectively. The policy has a $2,500 deductible. A fire
results in $350,000 worth of damage to the building and a $70,000
loss of business personal property. In what amounts should the
policy provide coverage for this loss? Answer: $347,500 Building
and $70,000 Property
◉ A Commercial Package Policy (CPP) premium may be modified by
a package modification factor. This factor Answer: Is a discount
justified by the greater efficiency in providing a package policy.
◉ Worldwide Warehousing has a Building and Personal Property
Coverage Form (BPP) with a $1,000,000 limit on a building and a
$5,000 deductible. The warehouse suffers a $1,010,000 fire loss.
,Which one of the following amounts will Worldwide's insurer pay?
Answer: $1,000,000
◉ The Causes of Loss—Basic Form differs from the Causes of Loss—
Broad Form in which one of the following ways? Answer: The Broad
Form provides coverage for loss caused by collapse of a building or
personal property resulting from specified perils.
◉ A description of the property insured, a list of mortgagees, and the
applicable coinsurance percentage(s) are shown on which one of the
following documents? Answer: Commercial property declarations
◉ Which one of the following statements is correct with respect to
the Building and Personal Property (BPP) Coverage Form? Answer:
The BPP lists several types of classes of property that do not qualify
as covered property.
◉ Which one of the following statements is correct with regard to
the Causes of Loss—Broad Form? Answer: The weight of snow, ice,
or sleet cause of loss does not cover damage to personal property in
the open.
◉ Which one of the following statements is correct with respect to
Property Not Covered under the Building and Personal Property
Coverage Form (BPP) Answer: Only contraband or property in the
,course of illegal transportation or trade is totally uninsurable by
endorsement or in other policies.
◉ Which one of the following is an exclusion unique to the Causes of
Loss—Special Form? Answer: Smog
◉ Smith Construction Company is covered under an unendorsed
Commercial General Liability (CGL) Coverage Form. While working
at a job site, Smith ruptured a natural gas line causing a small fire to
a neighboring retail store. The following claims have been made
against Smith due to this occurrence: Fire damage to the
neighboring store, Pain and suffering claimed by the store owner,
Loss of income by the store owner until repairs are made to the
store, and Fire damage to the backhoe owned by Smith. Which one
of the following statements is correct? Answer: The backhoe is
property owned and is excluded.
◉ Which one of the following is true of the supplementary payments
in the Commercial General Liability (CGL) Coverage Form? Answer:
The obligation to pay these supplementary payments ends when the
limit of insurance is exhausted.
◉ Internet blogger Tom operates a public interest group on the
Internet. In posting his opinions, Tom falsely accused the governor
of his state of criminal behavior. Tom's Commercial General Liability
(CGL) Coverage Form will most likely exclude coverage for any
, resulting damage based on which one of the following exclusions?
Answer: Electronic chatrooms or bulletin boards exclusion
◉ Which one of the following claims would be covered under
Coverage B - Personal and Advertising Injury Liability of the
Commercial General Liability Coverage Form (CGL)? Answer: A store
manager accuses a young man of shoplifting, apprehends him, and
locks him in a storage room until the police arrive. When it is
discovered that the young man is innocent, he files a claim against
the store.
◉ Which one of the following statements is true regarding Coverage
C—Medical Payments of the Commercial General Liability policy?
Answer: Medical payments coverage is a means of making prompt
settlements.
◉ Betty's Birdhouses constructs and sells birdhouses. Betty
discovered a fungus in the wood used to construct the birdhouses
that would kill birds. Betty withdrew her entire stock of birdhouses
to avoid any claims from environmental organizations for loss to
wildlife. Does Betty's Commercial General Liability (CGL) Coverage
Form cover the cost to withdraw the birdhouses and feeders?
Answer: No, because the cost to withdraw Betty's product is
excluded
◉ The Business Auto Coverage form has no provision for what is
known as "bobtailing." The motor carrier's coverage form does
PRACTICE TEST QUESTIONS AND VERIFIED
ANSWERS
◉ Which one of the following statements is correct with respect to
the Commercial Property Conditions? Answer: They apply to all
coverage forms included in a commercial property coverage part,
unless a coverage form contains a condition to the contrary.
◉ The owners of Uncle Reggie's Steakhouse are insured under a
Building and Personal Property Coverage Form (BPP) that covers
their building and business personal property for $350,000 and
$100,000, respectively. The policy has a $2,500 deductible. A fire
results in $350,000 worth of damage to the building and a $70,000
loss of business personal property. In what amounts should the
policy provide coverage for this loss? Answer: $347,500 Building
and $70,000 Property
◉ A Commercial Package Policy (CPP) premium may be modified by
a package modification factor. This factor Answer: Is a discount
justified by the greater efficiency in providing a package policy.
◉ Worldwide Warehousing has a Building and Personal Property
Coverage Form (BPP) with a $1,000,000 limit on a building and a
$5,000 deductible. The warehouse suffers a $1,010,000 fire loss.
,Which one of the following amounts will Worldwide's insurer pay?
Answer: $1,000,000
◉ The Causes of Loss—Basic Form differs from the Causes of Loss—
Broad Form in which one of the following ways? Answer: The Broad
Form provides coverage for loss caused by collapse of a building or
personal property resulting from specified perils.
◉ A description of the property insured, a list of mortgagees, and the
applicable coinsurance percentage(s) are shown on which one of the
following documents? Answer: Commercial property declarations
◉ Which one of the following statements is correct with respect to
the Building and Personal Property (BPP) Coverage Form? Answer:
The BPP lists several types of classes of property that do not qualify
as covered property.
◉ Which one of the following statements is correct with regard to
the Causes of Loss—Broad Form? Answer: The weight of snow, ice,
or sleet cause of loss does not cover damage to personal property in
the open.
◉ Which one of the following statements is correct with respect to
Property Not Covered under the Building and Personal Property
Coverage Form (BPP) Answer: Only contraband or property in the
,course of illegal transportation or trade is totally uninsurable by
endorsement or in other policies.
◉ Which one of the following is an exclusion unique to the Causes of
Loss—Special Form? Answer: Smog
◉ Smith Construction Company is covered under an unendorsed
Commercial General Liability (CGL) Coverage Form. While working
at a job site, Smith ruptured a natural gas line causing a small fire to
a neighboring retail store. The following claims have been made
against Smith due to this occurrence: Fire damage to the
neighboring store, Pain and suffering claimed by the store owner,
Loss of income by the store owner until repairs are made to the
store, and Fire damage to the backhoe owned by Smith. Which one
of the following statements is correct? Answer: The backhoe is
property owned and is excluded.
◉ Which one of the following is true of the supplementary payments
in the Commercial General Liability (CGL) Coverage Form? Answer:
The obligation to pay these supplementary payments ends when the
limit of insurance is exhausted.
◉ Internet blogger Tom operates a public interest group on the
Internet. In posting his opinions, Tom falsely accused the governor
of his state of criminal behavior. Tom's Commercial General Liability
(CGL) Coverage Form will most likely exclude coverage for any
, resulting damage based on which one of the following exclusions?
Answer: Electronic chatrooms or bulletin boards exclusion
◉ Which one of the following claims would be covered under
Coverage B - Personal and Advertising Injury Liability of the
Commercial General Liability Coverage Form (CGL)? Answer: A store
manager accuses a young man of shoplifting, apprehends him, and
locks him in a storage room until the police arrive. When it is
discovered that the young man is innocent, he files a claim against
the store.
◉ Which one of the following statements is true regarding Coverage
C—Medical Payments of the Commercial General Liability policy?
Answer: Medical payments coverage is a means of making prompt
settlements.
◉ Betty's Birdhouses constructs and sells birdhouses. Betty
discovered a fungus in the wood used to construct the birdhouses
that would kill birds. Betty withdrew her entire stock of birdhouses
to avoid any claims from environmental organizations for loss to
wildlife. Does Betty's Commercial General Liability (CGL) Coverage
Form cover the cost to withdraw the birdhouses and feeders?
Answer: No, because the cost to withdraw Betty's product is
excluded
◉ The Business Auto Coverage form has no provision for what is
known as "bobtailing." The motor carrier's coverage form does
