FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 440 QUESTIONS AND CORRECT DETAILED ANSWERS | AGRADE

An insured is sued under a CGL policy. The legal costs are $25,000, prejudgment interest is $9,000 and the judgment against the insured is $300,000. The insured has a $300,0000 CGL occurrence limit on the policy. How much will the insurer pay? ANS- $334,000 What is the order for claim payments if all of the following applied: Medical Payment, Workers' Compensation, Personal Injury Protection? ANS- WC, PIP, MP All of the following are penalties under the Florida No-Fault Law: ANS- Drivers License and registration is suspended Denied immunity Liable for payment of PIP claim HO-8 can be broadened to include off-premises theft losses up to: ANS- $1,000 The basic limits for loss assessments for both Section I and II of the HO-3 are: ANS- $1,000 in both Section I and II If the insured is building a new home, is he eligible for a homeowners policy on the new home while under construction? ANS- Yes All of the following are exclusions under Garage Insurance Physical Damage coverage: ANSLoss at new location that is unreported if the loss occurs more than 45 days Collision damage to autos transported from distribution to destination if more than 50 miles apart Upset of the transporting vehicle Which Business Auto policy endorsement covers the insured for use of autos they do not own? ANS- Drive Other Car Coverage Garagekeepers Insurance can be written all of the following ways: ANS- Direct physical damage First basis Legal liability Garage Insurance only covers rental car if: ANS- The customer's auto is left for service or repair Which Garage Insurance policy endorsement deletes liability coverage for damage to the insured's own products? ANS- Broad Form Products Business Auto policy extends to trailers with a load of capacity of: ANS- 2,000 lbs or lessWhen can the Coverage Extensions apply for Building and Personal Property Coverage Form? ANS- When the policy is being subject to 80% or more coninsurance. What coverage option applies to those being relied upon to deliver materials or services to the insured? ANS- Business Income From Dependent Properties What is the standard deducible for Commercial Property insurance? ANS- $500 expect hurricane For Business Income, the period of restoration begins: ANS- 72 hours after the date of the direct damage How many days does the Building and Personal Property Coverage form extend coverage for newly acquired buildings or new buildings under construction? ANS- 30 days When both the Condominium Association form and the Condominium Unit Owner apply to a loss, the claim is paid as follows: ANS- Condominium Association is primary Nonowned watercraft, property in care, custody and control, and limited pollution coverage are found in: ANS- Commercial Umbrellas Homeowners Insurance is designed to protect all of the following: ANS- Economic Loss Economic loss to household personal property Legal liabilities for injuries arising from personal activities All of the following are eligible for homeowners policy: ANS- Condo unit owners Renters who maintain residential occupancy in any type building Cooperative apartment occupants Which one of the following is not eligible for HO-4? ANS- Condo unit owners Which of the following can be a named insured? ANS- Trust What are the basic liability limits under Section II? ANS- $100,000 per occurrence/$1,000 medical payments 10% for a self-storage facility does not apply to personal property that is moved from the residence premises because: ANS- It's being repaired Which of the following would not be eligible under the Homeowners policy? ANS- Owner of a mobile home All of the following forms will apply to owner-occupants of the 1-4 family dwelling: ANS- HO- 3 HO-2 HO-8A condominium unit owner would use which form? ANS- HO-6 All of the following Special Limits can be increased: ANS- Jewelry and Furs from $1,500 to $5,000 Securities from $1,500 to $2,000 Silverware from $2,500 to $10,000 Basic limits for Hospital Professional Liability are: ANS- $250,000/$750,000 The commercial umbrella, when primary, is subject to a deductible known as: ANS- Self-insured retention Claim is made under the CGL policy Coverage C; Medical Payments. The claimant fell down a slippery staircase and injured his back. Three years later the injured person contacted the insured because their back has started to hurt again. Will the second notice be covered under the CGL policy? ANS- No., incurred over 1 year. If a tenant is injured would the CGL, Coverage C: Medical Payments pay for the injury? ANSNo, if the tenant is on the part of the premises the tenant normally occupies For claims to be considered to have been made on the last day of the policy person under the basic extended reporting period, the claim has to be received and recorded with ow many days after the policy expirations? ANS- 60 days Long Term Care has all of the following types of care: ANS- skilled care intermediate nursing custodial care All of the following are BI and PD exclusions under the CGL: ANS- Liquor Liability Mobile Equipment Insured's Work All of the following can be an insured under the Lawyers Professional Liability policy: ANSIndividual Partnership Corporation What is the basic limit that applies to each occurrence for BI and PD and CGL? ANS- $100,000 Basic limits for the Hospital Professional Liability form are: ANS- $250,000/$750,000 What is the basic limit for Fire Damage Liability under the CGL? ANS- $100,000 In the Liability section of the Businessowners policy, the General Aggregate limit is: ANSEqual to twice the Liability and Medical Expenses limitAll of the following are not true regarding property coverages under the Businessowners policy: ANS- Coverage cannot be endorsed to a named peril basis Coinsurance on building coverage No Business Income coverage Under the Businessowners policy, mercantile, wholesaler, service or processing risks gross sales cannot exceed: ANS- $3,000,000 in gross sales All of the following are Optional Coverages under the Businessowners: ANS- Employee dishonesty Accounts receivable Mechanical Breakdown Property coverage under the Businessowners policy is written: ANS- Open perils/endorsed for named perils To qualify for a general lines license, the applicant must be: ANS- 18 years of age Temporary insurance is effected through: ANS- Binders A written contact that includes all clauses, riders, endorsements and papers is called: ANSPolicy Any insurance wherein payment by the insurer will be paid directly to the insured or other named interests is called: ANS- Property Insurance Th contract where the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions is called: ANS- Conditional Contact The contact wherein the parties are of unequal bargaining power and one party cannot negotiate the terms and has to take the offer as made is called: ANS- Contact of Adhesion The contact where one should not profit from the response by the policy is called: ANSIndemnity contract Sam did not meet financial responsibility requirements at the time of his auto accident. To avoid penalties, Sam must meet all the follow conditions: ANS- Provide certification by filing SR 22 Being found not liable in court