FLORIDA 2-20 AGENT LICENSE ACTUAL EXAM LATEST
2023/2024 QUESTIONS AND VERIFIED CORRECT
ANSWERS/ALREADY GRADED A++
The Florida Surplus Service Lines Office (FSLSO) was created to -
ANSWER oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines
Agent: - ANSWER Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: -
ANSWER Pays insurance claims
Once license, you have how long to obtain an appointment? - ANSWER 48
months
Which of the following is NOT a duty of the Office of Insurance Regulation?
- ANSWER Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - ANSWER Contractors
must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to - ANSWER
Transfer the cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically
provided by - ANSWER Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits
provided by insurance? - ANSWER Insurance helps reduce the financial
burden to society by compensating accident victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through -
ANSWER Noninsurance transfer techniques.
,Oscar's custom-built vehicle looks like a sausage sandwich on 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? - ANSWER Large number of similar
exposure units
Liability coverage to individuals and families for bodily injury and property
damage arising from the insured's personal premises or activities is
typically provided by - ANSWER Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and 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 - ANSWER Risk transfer.
One of the costs of insurance is said to be opportunity costs. 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 -
ANSWER Society
Retention is often used in combination with insurance as a way of treating
loss exposures. One of the major downsides of individuals using retention
alone is - ANSWER The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - ANSWER Indemnification
Sometimes the existence of insurance encourages losses. The result of
this phenomenon is that it - ANSWER Increases the total cost of insurance
A small business owner concerned about something happening and not
being able to work or earn a living for an extended period of time due to an
accident should purchase - ANSWER Disability insurance.
,Which of the following is/are not a "your covered auto" under a Personal
Auto Policy for Liability? - ANSWER The 1990 Chevy 22 days after you
purchase it as an additional vehicle for your son who just got his license.
Joe has a Personal Auto Policy with one car with liability of 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? - ANSWER $0
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
home owner’s 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
2023/2024 QUESTIONS AND VERIFIED CORRECT
ANSWERS/ALREADY GRADED A++
The Florida Surplus Service Lines Office (FSLSO) was created to -
ANSWER oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines
Agent: - ANSWER Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: -
ANSWER Pays insurance claims
Once license, you have how long to obtain an appointment? - ANSWER 48
months
Which of the following is NOT a duty of the Office of Insurance Regulation?
- ANSWER Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - ANSWER Contractors
must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to - ANSWER
Transfer the cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically
provided by - ANSWER Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits
provided by insurance? - ANSWER Insurance helps reduce the financial
burden to society by compensating accident victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through -
ANSWER Noninsurance transfer techniques.
,Oscar's custom-built vehicle looks like a sausage sandwich on 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? - ANSWER Large number of similar
exposure units
Liability coverage to individuals and families for bodily injury and property
damage arising from the insured's personal premises or activities is
typically provided by - ANSWER Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and 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 - ANSWER Risk transfer.
One of the costs of insurance is said to be opportunity costs. 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 -
ANSWER Society
Retention is often used in combination with insurance as a way of treating
loss exposures. One of the major downsides of individuals using retention
alone is - ANSWER The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - ANSWER Indemnification
Sometimes the existence of insurance encourages losses. The result of
this phenomenon is that it - ANSWER Increases the total cost of insurance
A small business owner concerned about something happening and not
being able to work or earn a living for an extended period of time due to an
accident should purchase - ANSWER Disability insurance.
,Which of the following is/are not a "your covered auto" under a Personal
Auto Policy for Liability? - ANSWER The 1990 Chevy 22 days after you
purchase it as an additional vehicle for your son who just got his license.
Joe has a Personal Auto Policy with one car with liability of 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? - ANSWER $0
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
home owner’s 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
