2025| Florida Licensing (3 versions) |2025 UPDATE|FREQUENTLY
TESTED QUESTIONS / Recently testing real exam questions|
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS| already
graded A+
If a boiler explodes and damages a building, contents and property of others, what
coverage would apply - ANSWER-The policy covers the entire loss. The coverage is
not just limited to damage to covered equipment
Automatic coverage is provided for newly acquired equipment for - ANSWER-90
days provided the insured reports the newly acquired property to the insurer
within 90 days of acquisition
Mr. Simpson owns a dwelling in a rural area close to a small wooded area. He is
covered under a DP3 form. A deer sees its reflection in a picture window and
jumps through and enters the dwelling causing severe wall and floor damages.
Some of the furniture is damaged and must be replaced. He is covered for $100K
on the dwelling and $50K on the contents. What would apply - ANSWER-Deny the
contents claim and pay the dwelling loss on a replacement cost basis. DP3 is an
open peril form as regards the dwelling, dwelling damage is covered. The contents
coverage is provided on a broad named peril basis. This type of loss would not be
covered for the contents damage as it is not a listed peril
,The insured is covered under a DP1 dwelling form with cov on the dwelling in the
amount of $100K. He has a detached garage valued at $10K. Both structures are
destroyed by a fire. What is the total amount recoverable under the policy -
ANSWER-$100K. Under the DP1 form the 10% of coverage A for other detached
structures is NOT additional coverage. It is part of the dwelling limit. The policy
cannot pay more than the total dwelling limit of $100K
The insured lived close to Mount Saint Helens and carried a DP2 dwelling policy.
The volcano erupted and the movement of the earth caused his home to collapse.
What would the result be - ANSWER-The claim would be denied. Earth movement is
not covered under the volcanic eruption peril. The insured would need earthquake
coverage
A water pipe has busted and the insured has suffered floor and ceiling damage in
his tow story home. He is covered under a DP2 form with dwelling and contents
coverage. The buildings codes now require that special piping installation is
needed at an additional cost of $500 over and above the normal cost to repair.
His dwelling limit is $100K. What will the policy pay if the normal cost to repair is
$400 - ANSWER-The policy will pay a total of $900. The policy provides 10% of cov
A for an increase in building costs as a result of building codes under the
Ordinance or Law coverage provided by the other coverage of the policy
Mr. Jones purchases a policy on the dwelling in the amount of $40K. His wife also
purchases a policy in the amount of $20K unbeknown to her husband from
another company. In case of a $15K loss, what will her company pay on the loss -
ANSWER-$5K. The other insurance clause deals with this issue. Her company has
,one third of the total coverage. Therefore her company will pay $5,000 or one
third of the claim
The insured has purchased a DP3 form to cover his dwelling that is valued at a
replacement cost of $100K. He insures it for $60K and has a $30K fire loss. What
will be paid? - ANSWER-$22.5K. She is underinsured by 25% so the policy will pay
75% of the $30K or $22.5K. The company can also pay the ACV of the loss
The insured has forgotten to close an upstairs window. A strong storm blows
through and wind and water severely damage the contents and floors of the
dwelling. The insured carries a DP2 dwelling form. What will be the outcome? -
ANSWER-The claim will be denied because the peril of wind did not create an
opening in the structure. The insured was negligent in leaving the window open
The insured is coered under a DP3 with contents coverage. He has a hunting rifle
stolen by forcible entry into the dwelling. The front door is severely damaged and
must be replaced. What is the outcome - ANSWER-Only the damage caused by the
burglars will be paid. Theft is not a covered peril unless endorse on the policy
What does a contract have to meet in order to be legal and valid? - ANSWER-1. A
manifestation of assent(Agreement) to its terms by the parties who make the
contract
2. Value/payment for promise
3. Legal capacity of the parties to contract
, 4. Not against public policy or otherwise illegal
Policy - ANSWER-a written contract/written agreement for or effecting insurance,
or the certificate thereof, by whatever name called, and includes all clauses,
riders, endorsements and papers
Insurance - ANSWER-A contract that one undertakes to indemnify another or pay
or allow a specified amount or a determined benefit upon determinable
contingencies
Elements that the constitute the "consideration" for a valid insurance contract -
ANSWER-premium and agreement to the terms and conditions in the policy by both
the insurer and the insured
A standard policy - ANSWER-Policies written by all/most of the companies in the
field for given coverage
ex. custom and common law, statute, or intercompany agreement
A statutory policy - ANSWER-Standardized through state law, few of these policies
but many minimum standard statutory provisions to be included in insurance
contracts
TESTED QUESTIONS / Recently testing real exam questions|
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS| already
graded A+
If a boiler explodes and damages a building, contents and property of others, what
coverage would apply - ANSWER-The policy covers the entire loss. The coverage is
not just limited to damage to covered equipment
Automatic coverage is provided for newly acquired equipment for - ANSWER-90
days provided the insured reports the newly acquired property to the insurer
within 90 days of acquisition
Mr. Simpson owns a dwelling in a rural area close to a small wooded area. He is
covered under a DP3 form. A deer sees its reflection in a picture window and
jumps through and enters the dwelling causing severe wall and floor damages.
Some of the furniture is damaged and must be replaced. He is covered for $100K
on the dwelling and $50K on the contents. What would apply - ANSWER-Deny the
contents claim and pay the dwelling loss on a replacement cost basis. DP3 is an
open peril form as regards the dwelling, dwelling damage is covered. The contents
coverage is provided on a broad named peril basis. This type of loss would not be
covered for the contents damage as it is not a listed peril
,The insured is covered under a DP1 dwelling form with cov on the dwelling in the
amount of $100K. He has a detached garage valued at $10K. Both structures are
destroyed by a fire. What is the total amount recoverable under the policy -
ANSWER-$100K. Under the DP1 form the 10% of coverage A for other detached
structures is NOT additional coverage. It is part of the dwelling limit. The policy
cannot pay more than the total dwelling limit of $100K
The insured lived close to Mount Saint Helens and carried a DP2 dwelling policy.
The volcano erupted and the movement of the earth caused his home to collapse.
What would the result be - ANSWER-The claim would be denied. Earth movement is
not covered under the volcanic eruption peril. The insured would need earthquake
coverage
A water pipe has busted and the insured has suffered floor and ceiling damage in
his tow story home. He is covered under a DP2 form with dwelling and contents
coverage. The buildings codes now require that special piping installation is
needed at an additional cost of $500 over and above the normal cost to repair.
His dwelling limit is $100K. What will the policy pay if the normal cost to repair is
$400 - ANSWER-The policy will pay a total of $900. The policy provides 10% of cov
A for an increase in building costs as a result of building codes under the
Ordinance or Law coverage provided by the other coverage of the policy
Mr. Jones purchases a policy on the dwelling in the amount of $40K. His wife also
purchases a policy in the amount of $20K unbeknown to her husband from
another company. In case of a $15K loss, what will her company pay on the loss -
ANSWER-$5K. The other insurance clause deals with this issue. Her company has
,one third of the total coverage. Therefore her company will pay $5,000 or one
third of the claim
The insured has purchased a DP3 form to cover his dwelling that is valued at a
replacement cost of $100K. He insures it for $60K and has a $30K fire loss. What
will be paid? - ANSWER-$22.5K. She is underinsured by 25% so the policy will pay
75% of the $30K or $22.5K. The company can also pay the ACV of the loss
The insured has forgotten to close an upstairs window. A strong storm blows
through and wind and water severely damage the contents and floors of the
dwelling. The insured carries a DP2 dwelling form. What will be the outcome? -
ANSWER-The claim will be denied because the peril of wind did not create an
opening in the structure. The insured was negligent in leaving the window open
The insured is coered under a DP3 with contents coverage. He has a hunting rifle
stolen by forcible entry into the dwelling. The front door is severely damaged and
must be replaced. What is the outcome - ANSWER-Only the damage caused by the
burglars will be paid. Theft is not a covered peril unless endorse on the policy
What does a contract have to meet in order to be legal and valid? - ANSWER-1. A
manifestation of assent(Agreement) to its terms by the parties who make the
contract
2. Value/payment for promise
3. Legal capacity of the parties to contract
, 4. Not against public policy or otherwise illegal
Policy - ANSWER-a written contract/written agreement for or effecting insurance,
or the certificate thereof, by whatever name called, and includes all clauses,
riders, endorsements and papers
Insurance - ANSWER-A contract that one undertakes to indemnify another or pay
or allow a specified amount or a determined benefit upon determinable
contingencies
Elements that the constitute the "consideration" for a valid insurance contract -
ANSWER-premium and agreement to the terms and conditions in the policy by both
the insurer and the insured
A standard policy - ANSWER-Policies written by all/most of the companies in the
field for given coverage
ex. custom and common law, statute, or intercompany agreement
A statutory policy - ANSWER-Standardized through state law, few of these policies
but many minimum standard statutory provisions to be included in insurance
contracts
