FLORIDA 2-20 AGENTS LICENSE EXAM
QUESTIONS STUDY GUIDE WITH DETAILED
ANSWERS COMPREHENSIVE GENERAL
LINES INSURANCE REVIEW PRACTICE TEST
AND EXAM PREPARATION
UPDATED QUESTIONS AND ANSWERS 100% VERIFIED EXAM
PREP
,The Florida Surplus Service Lines Office (FSLSO) was created oversee the surplus lines industry in the state
to
Which of the following is NOT a required qualification for a Seeking the license only to write controlled business
General Lines Agent:
The Department of Financial Services performs the following, Pays insurance claims
EXCEPT:
Once license, you have how long to obtain an appointment? 48 months
Which of the following is NOT a duty of the Office of Submit rate filings and underwriting rules for approval
Insurance Regulation?
Which one of the following statements is correct? Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to Transfer the cost of losses.
Liability coverage for loss exposures arising from a business Commercial general liability insurance.
organization's premises and operations, its products, or its
completed work is typically provided by
Which one of the following statements is correct regarding Insurance helps reduce the financial burden to society by compensating accident victims.
the benefits provided by insurance?
Insurance is not the only risk management transfer technique. Noninsurance transfer techniques.
When circumstances are appropriate, transfer can be
accomplished through
Oscar's custom-built vehicle looks like a sausage sandwich on Large number of similar exposure units
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?
,Liability coverage to individuals and families for bodily injury Personal liability insurance.
and property damage arising from the insured's personal
premises or activities is typically provided by
Sally is a recent college graduate who lives in the suburbs and Risk transfer.
drives to work daily in the city. She recognizes that owning a
car creates both property damage and liability exposures for
her and at the same time she has the burden of student loans.
For someone in Sally's circumstances the most practical risk
management technique for dealing with her auto-related loss
exposures is
One of the costs of insurance is said to be opportunity costs. Society
This means that if capital and labor were not being used in the
insurance business, they could be used elsewhere and making
other productive contributions to
Retention is often used in combination with insurance as a way The potential for financial ruin.
of treating loss exposures. One of the major downsides of
individuals using retention alone is
The process of restoring an individual or organization to a Indemnification
pre-loss financial condition is the process of
Sometimes the existence of insurance encourages losses. The Increases the total cost of insurance
result of this phenomenon is that it
A small business owner concerned about something Disability insurance.
happening and not being able to work or earn a living for an
extended period of time due to an accident should purchase
Which of the following is/are not a "your covered auto" under The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who
a Personal Auto Policy for Liability? just got his license.
, Joe has a Personal Auto Policy with one car with liability of $0
10/20/10, basic PIP, 10/20 UM and no Med Pay. His Florida
neighbor has an identical policy on her care. Joe is driving her
car, loses control; and hits a tree. Joe is hurt with $15,000 in
medical bills. What is the maximum Joe can collect from UM
from all sources from this accident?
Keith commutes into the city in his car, and he provides a ride No, because Keith is involved in a share-the-expense car pool.
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)?
An insured covers his owned auto with more than one Each insurer pays its pro rata share based on the proportion that its limit of liability bears
Personal Auto Policy (PAP), each from a different insurer. In the to the total of applicable limits.
event of a claim for medical payments coverage,
The Insuring Agreement in Part A - Liability Coverage of the Limit of Liability
Personal Auto Policy contains descriptions of all of the
following EXCEPT:
Tom and Martha insure their house with an unendorsed HO-3 $1,700
—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?
Under the HO-3—Special Form (HO-3) Section I—Conditions, Establishes the process for determining the amount to be paid for a property loss.
the Loss Settlement condition
Property described in Coverages A, B, and C of an HO-3— Excluded.
Special Form (HO-3) that is destroyed, confiscated, or seized
by order of any governmental or public authority is
QUESTIONS STUDY GUIDE WITH DETAILED
ANSWERS COMPREHENSIVE GENERAL
LINES INSURANCE REVIEW PRACTICE TEST
AND EXAM PREPARATION
UPDATED QUESTIONS AND ANSWERS 100% VERIFIED EXAM
PREP
,The Florida Surplus Service Lines Office (FSLSO) was created oversee the surplus lines industry in the state
to
Which of the following is NOT a required qualification for a Seeking the license only to write controlled business
General Lines Agent:
The Department of Financial Services performs the following, Pays insurance claims
EXCEPT:
Once license, you have how long to obtain an appointment? 48 months
Which of the following is NOT a duty of the Office of Submit rate filings and underwriting rules for approval
Insurance Regulation?
Which one of the following statements is correct? Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to Transfer the cost of losses.
Liability coverage for loss exposures arising from a business Commercial general liability insurance.
organization's premises and operations, its products, or its
completed work is typically provided by
Which one of the following statements is correct regarding Insurance helps reduce the financial burden to society by compensating accident victims.
the benefits provided by insurance?
Insurance is not the only risk management transfer technique. Noninsurance transfer techniques.
When circumstances are appropriate, transfer can be
accomplished through
Oscar's custom-built vehicle looks like a sausage sandwich on Large number of similar exposure units
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?
,Liability coverage to individuals and families for bodily injury Personal liability insurance.
and property damage arising from the insured's personal
premises or activities is typically provided by
Sally is a recent college graduate who lives in the suburbs and Risk transfer.
drives to work daily in the city. She recognizes that owning a
car creates both property damage and liability exposures for
her and at the same time she has the burden of student loans.
For someone in Sally's circumstances the most practical risk
management technique for dealing with her auto-related loss
exposures is
One of the costs of insurance is said to be opportunity costs. Society
This means that if capital and labor were not being used in the
insurance business, they could be used elsewhere and making
other productive contributions to
Retention is often used in combination with insurance as a way The potential for financial ruin.
of treating loss exposures. One of the major downsides of
individuals using retention alone is
The process of restoring an individual or organization to a Indemnification
pre-loss financial condition is the process of
Sometimes the existence of insurance encourages losses. The Increases the total cost of insurance
result of this phenomenon is that it
A small business owner concerned about something Disability insurance.
happening and not being able to work or earn a living for an
extended period of time due to an accident should purchase
Which of the following is/are not a "your covered auto" under The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who
a Personal Auto Policy for Liability? just got his license.
, Joe has a Personal Auto Policy with one car with liability of $0
10/20/10, basic PIP, 10/20 UM and no Med Pay. His Florida
neighbor has an identical policy on her care. Joe is driving her
car, loses control; and hits a tree. Joe is hurt with $15,000 in
medical bills. What is the maximum Joe can collect from UM
from all sources from this accident?
Keith commutes into the city in his car, and he provides a ride No, because Keith is involved in a share-the-expense car pool.
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)?
An insured covers his owned auto with more than one Each insurer pays its pro rata share based on the proportion that its limit of liability bears
Personal Auto Policy (PAP), each from a different insurer. In the to the total of applicable limits.
event of a claim for medical payments coverage,
The Insuring Agreement in Part A - Liability Coverage of the Limit of Liability
Personal Auto Policy contains descriptions of all of the
following EXCEPT:
Tom and Martha insure their house with an unendorsed HO-3 $1,700
—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?
Under the HO-3—Special Form (HO-3) Section I—Conditions, Establishes the process for determining the amount to be paid for a property loss.
the Loss Settlement condition
Property described in Coverages A, B, and C of an HO-3— Excluded.
Special Form (HO-3) that is destroyed, confiscated, or seized
by order of any governmental or public authority is
