Florida General Lines Agent Exam
Questions And Answers
Avcontractorvhiredvavsubcontractorvandvthevsubcontractorvnegligentlyvleftvavpitvopenvatvthevj
obvsitevandvavchildvfellvinvthevholevandvwasvinjured.vWouldvthevcontractorvbevheldvliablevforvth
evnegligencevofvthevsubcontractor?v-vCORRECTvvANSWER-
Thevcontractorvwouldvbevheldvlegallyvliabilityvforvthevactionsvofvanyvemployeevundervthevvica
riousvliabilityvlaw.
Avcontractor'svemployeevfellvoffvavroofvhevwasvrepairingvforvthevcontractorvandvwasvinjured.v
WhatvCGLvcoveragevwouldvrespondvtovthevworker'svinjury?v-vCORRECTvvANSWER-
NovCGLvcoveragevwouldvrespondvtovemployeevinjuries
Avcustomervwasvinjuredvfromvavconditionvthatvexistedvonvthevpremisesvofvanvinsured'svbusin
ess.vWhatvCGLvcoveragevwouldvprotectvthevbusinessvownervshouldvthevcustomervsuevforvle
galvdamages?v-vCORRECTvvANSWER-Thevpremisesvliabilityvcoverage.
AvFloridavresidentvwithv10/20/10vliabilityvlimitsvgotvinvanvaccidentvinvavstatevthatvrequiresv25/
50/10vliabilityvlimitsvundervthatvstatevfinancialvresponsibilityvlaw.vWhatvlimitvwouldvapplyvtovt
hevaccidentvinvthevothervstate?v-vCORRECTvvANSWER-
25/50/10,vthevothervstatevrequiredvlimitvwouldvapply
AvFloridavresidentvwithvphysicalvdamagevcoveragevsubjectvtovavdeductiblevofv$500vgotvinvan
vaccidentvthatvdamagevthevautovglassvandvitvwouldvcostv$1,500vtovrepair.vWhatvcoveragevw
ouldvapplyvtovthevglassvdamage?v-vCORRECTvvANSWER-
$1,500v(novdeductiblevapplyvtovglassvdamagevinvFlorida
Avhomeownervhiredvavcontractorvtovinstalledvcarpetvandvhisvsonvwasvinjuredvduringvthevinst
allationvofvthevcarpet.vWhatvCGLvcoveragevwouldvprotectvthevcontractorvifvthevhomeownervs
uedvforvthevinjuryvofvhisvson?
a.Thevoperationsvliabilityvcoverage
b.Thevproductsvliabilityvcoverage
c.Thevpremisesvliabilityvcoverage
d.Thevcompletedvoperationsvliabilityvcoveragev-vCORRECTvvANSWER-b
,Avpersonvwasvinjuredvduevtovtaintedvfoodvdeliveredvatvhisvhomevbyvavrestaurant.vWhatvCGLv
coveragevwouldvcovervthevrestaurantvownervshouldvthevpersonvsuevforvlegalvdamages?v-
vCORRECTvvANSWER-Thevproductvliabilityvcoverage.
Avpersonvwasvinjuredvfromvgasvescapingvfromvavgasvpipevaftervavcontractorvinstalledvavgasv
heater.vWhatvCGLvcoveragevwouldvcovervthevcontractorvshouldvthevpersonvsuevforvlegalvda
mages?v-vCORRECTvvANSWER-Thevcompletedvoperationsvliabilityvcoverage
Avpersonvwhovdoesvnotvownvanvauto,vbutvisvrequiredvtovcomplyv(filevSR-
22)vwithvFloridavfinancialvresponsibilityvlawvforvusevofvnon-ownvvehicles,vcanvpurchase?v-
vCORRECTvvANSWER-Thevnamedvnon-ownervpolicy
Avpolicyvwithvonevlimitvthatvwouldvapplyvtovallvlossesvthatvoccurvduringvthevpolicyvperiodvwou
ldvbevconsideredvasvwhatvtypevofvliabilityvlimit?v-vCORRECTvvANSWER-
aggregatevlimitvofvliability
Avpropertyvisvinsuredvwithvavfranchisevdeductiblevofv$500vandvtherevisvav$5,000vloss.vWhatv
amountvofvthevlossvwouldvbevpayablevbyvthevinsurer?v-vCORRECTvvANSWER-
$5,000v(theventirevlossvwouldvbevpaidvasvthevlossvexceedvthevdeductible).
Avpropertyvpolicyvisvinsuredvwithvavstandardvdeductiblevofv$500vandvtherevisvavlossvofv$5,00
0.vWhatvwouldvthevinsurervpayvforvthevloss?v-vCORRECTvvANSWER-$4,500v($5,000v-
v$500)
Avpropertyvvaluedvatv$100,000visvinsuredvforv$56,000vonvavpropertyvpolicyvthatvhasvavcoins
urancevrequirementvofv80%.vWhatvamountvofvthevlossvisvpayablevbyvthevinsurervifvtherevisvavl
ossvofv$20,000?vThevcoinsurancevformulavisvCv/vRvxvLvwherevCvisvthevamountvofvinsurancev
CARRIEDvbyvthevinsuredvonvthevproperty.vRvisvthevamountvofvinsurancevcoveragevREQUIR
EDvbyvthevinsurervbasedvonvthevcoinsurancevrequirementvandvLvisvthevamountvofvthevLOSS
.vThevamountvpayablevforvthevlossvwouldvbe?v-vCORRECTvvANSWER-
lossvwouldvbev$14,000v($56,000v/v$80,000v(80%vofv$100,000)vxv$20,000.
Avstatementvofvfactvthatvisvmadevpartvofvanvinsurancevcontractvandvavbreachvwouldvresultvinv
thevcontractvbeingvvoidablevbyvthevinsurervis?
a.Avconcealment
b.Avrepresentation
c.Avmisrepresentation
d.Avwarrantyv-vCORRECTvvANSWER-d
Allvofvthevfollowingvarevcoveragesvundervthevgaragevliabilityvcoveragevexcept?
a.Liabilityvresultingvfromvthevpremisesvofvavgaragevbusiness
b.Allvarevcovered
c.Liabilityvarisingvfromvthevoperationsvofvavgaragevbusiness
,d.Liabilityvarisingvfromvdefectivevproductsvandvfaultyvworkmanshipv-
vCORRECTvvANSWER-b
Anvagreementvthatvpaysvonvbehalfvofvanvinsuredvasvdefinedvbyvthevpolicyvorvcoveragevtheva
mountvthatvthevinsurervisvlegallyvliablevforvupvtovthevlimitsvofvthevpolicyvisvconsidered?v-
vCORRECTvvANSWER-legalvliability
Anvinsuredvautovisvinsuredvforv$30,000vliabilityvcoveragevthatvappliesvtovbothvbodilyvinjuryva
ndvpropertyvdamagevwouldvbevconsideredvas?
a.Singlevlimitvofvliability
b.Totalvliability
c.Aggregatevlimitvofvliability
d.Splitvlimitsvofvliabilityv-vCORRECTvvANSWER-a
Anvinsuredvhasv$10,000vPIPvcoveragevwithv$1,000vdeductiblevandvgotvinvanvaccidentvthatvr
esultedvmedicalvexpensesvofv$11,000.vWhatvisvthevPIPvcoveragevforvthevmedicalvexpenses
?v-vCORRECTvvANSWER-$8,000v($11,000v-
v$1,000vdeductiblev@v80%);Note:ifvaftervthevcalculationvthevamountvhadvexceededvthevcov
eragevlimitvofv$10,000vthenvthevamountvwouldvhavevbeenvthevcoveragevlimitvasvthevlossvcan
notvexceedvthevcoveragevlimit
Anvinsuredvhasv2vCGLvpoliciesvonvanvoccurrencevbasis.vPolicyvAvcoveragevwasvfromv1/1/20
11vtov12/31/2011.vPolicyvBvwasvfromv1/1/2012vtov12/31/2012.vAvlossvoccurredvonv12/01/20
11vandvreportedvtovthevinsurervonv1/15/2012.vWhatvpolicyvwouldvcovervthevloss?v-
vCORRECTvvANSWER-
PolicyvAvwouldvcovervthevlossvasvitvoccurredvduringvitsvpolicyvperiodvofv1/1/2011vtov12/31/20
11.
Anvinsuredvhasvav$1,000,000vUmbrellavpolicyvandvavpersonalvautovpolicyvwithv100/300/100
vliabilityvlimits.vThevinsuredvinjuredvavpersonvinvanvautovaccidentvresultingvinvdamagesvofv$8
00,000.vWhatvwouldvthevUmbrellavpolicyvwouldvpay?v-vCORRECTvvANSWER-
$700,000v($800,000v-v$100,000vthevpersonvautovBIvlimit)
AnvinsuredvhasvavDP-
1vpolicyvwithvavlimitvofv$100,000vonvthevdwellingvandvthevunattachedvgaragevwasvtotallyvdes
troyedvbyvfirevandvitvwillvcostv$15,000vtovbevrepaired.vWhatvisvthevcoveragevlimitvthatvwouldv
applyvtovthevdamagevgarage?v-vCORRECTvvANSWER-$10,000v(10%vofv$100,000)
Anvinsured'svfailurevtovrevealvrelevantvfactsvknownvtovthevinsuredvisvconsideredvas?v-
vCORRECTvvANSWER-concealment
Anvuntruevstatementvmadevbyvanvapplicantvforvinsurancevcoveragevwouldvbevconsideredva
s?v-vCORRECTvvANSWER-misrepresentation
Buildingsvareveligiblevforvfloodvcoveragevinvthevfollowingvsituationsvexcept?
, a.50%vorvmorevofvthevvaluevofvthevbuildingvmustvbevabovevground
b.Thevbuildingvmustvbev100%vcompleted
c.2vorvmorevofvthevoutsidevwallsvmustvbevcompleted
d.Thevroofvmustvbevcompletedvandvattachedvtovthevstructurev-vCORRECTvvANSWER-b
Calculatevthevamountvpayablevforvavlossvofv$50,000vbasedvonvavpropertyvthatvisvvaluedvatv$
200,000vandvthevpropertyvisvinsuredvforv$120,000vonvavpolicyvthatvrequiresvavcoinsuranceva
mountvofv80%?
a.$37,500v($120,000v/v$160,000v(80%vofv$200,000)vxv$50,000)
b.$10,000v(20%vofv$50,000)
c.$50,000v(100%vofv$50,000)
d.$40,000v(80%vofv$50,000)v-vCORRECTvvANSWER-a
Commercialvpropertyvinsurancevcoveragevmayvbevvoidvforvthevfollowingvreasonsvexcept?
a.Intentionalvconcealmentvofvmaterialvfacts
b.Intentionalvmisrepresentationvofvmaterialvfacts
c.Allvwouldvapply
d.Fraudvcommittedvbyvanvinsuredv-vCORRECTvvANSWER-c
Coveragevforvvehiclesvofvautovdealersvisvusuallyvwrittenvundervwhatvcoveragevform?v-
vCORRECTvvANSWER-
Onvavblanketvbasisvwhichvmeansvonevlimitvwouldvapplyvtovanyvonevloss.
Floodvcoveragevforvcontentsvareveligiblevwhen?v-vCORRECTvvANSWER-
Whenvthevbuildingvisvfullyvenclosed
Floodvlossesvarevgenerallyvsettledvundervwhatvsettlementvmethod?v-
vCORRECTvvANSWER-ThevActualvcashvvaluev(ACV)vsettlementvmethod
HowvarevlossesvdistributedvwhenvthevDPvpolicyvandvothervpoliciesvcovervthevsamevloss?v-
vCORRECTvvANSWER-Onvavpro-
ratavbasisvwhichvisveachvpolicyvlimitvinvrelationvtovthevtotalvpoliciesvlimitsvcoveringvthevsamev
loss.
Howvdovliabilityvlimitsvapplyvtovthevphysicians,vsurgeonsvandvdentistv(PS&D)vandvthevhospit
alvprofessionalvliabilityvpolicies?v-vCORRECTvvANSWER-
Coveragevlimitsvapplyvpervclaimv(orvmedicalvincident)vandvanvaggregatevlimitvforvallvclaimsvd
uringvthevpolicyvperiod.
Howvlossesvundervpropertyvinsurancevarevdistributedvwhenvmorevthanvonevpolicyvcoversvth
evsamevlossvbutvhasvdifferentvprovisions?v-vCORRECTvvANSWER-
Thevcommercialvpropertyvpolicyvwouldvbevexcessvovervthevothervpolicy.
Questions And Answers
Avcontractorvhiredvavsubcontractorvandvthevsubcontractorvnegligentlyvleftvavpitvopenvatvthevj
obvsitevandvavchildvfellvinvthevholevandvwasvinjured.vWouldvthevcontractorvbevheldvliablevforvth
evnegligencevofvthevsubcontractor?v-vCORRECTvvANSWER-
Thevcontractorvwouldvbevheldvlegallyvliabilityvforvthevactionsvofvanyvemployeevundervthevvica
riousvliabilityvlaw.
Avcontractor'svemployeevfellvoffvavroofvhevwasvrepairingvforvthevcontractorvandvwasvinjured.v
WhatvCGLvcoveragevwouldvrespondvtovthevworker'svinjury?v-vCORRECTvvANSWER-
NovCGLvcoveragevwouldvrespondvtovemployeevinjuries
Avcustomervwasvinjuredvfromvavconditionvthatvexistedvonvthevpremisesvofvanvinsured'svbusin
ess.vWhatvCGLvcoveragevwouldvprotectvthevbusinessvownervshouldvthevcustomervsuevforvle
galvdamages?v-vCORRECTvvANSWER-Thevpremisesvliabilityvcoverage.
AvFloridavresidentvwithv10/20/10vliabilityvlimitsvgotvinvanvaccidentvinvavstatevthatvrequiresv25/
50/10vliabilityvlimitsvundervthatvstatevfinancialvresponsibilityvlaw.vWhatvlimitvwouldvapplyvtovt
hevaccidentvinvthevothervstate?v-vCORRECTvvANSWER-
25/50/10,vthevothervstatevrequiredvlimitvwouldvapply
AvFloridavresidentvwithvphysicalvdamagevcoveragevsubjectvtovavdeductiblevofv$500vgotvinvan
vaccidentvthatvdamagevthevautovglassvandvitvwouldvcostv$1,500vtovrepair.vWhatvcoveragevw
ouldvapplyvtovthevglassvdamage?v-vCORRECTvvANSWER-
$1,500v(novdeductiblevapplyvtovglassvdamagevinvFlorida
Avhomeownervhiredvavcontractorvtovinstalledvcarpetvandvhisvsonvwasvinjuredvduringvthevinst
allationvofvthevcarpet.vWhatvCGLvcoveragevwouldvprotectvthevcontractorvifvthevhomeownervs
uedvforvthevinjuryvofvhisvson?
a.Thevoperationsvliabilityvcoverage
b.Thevproductsvliabilityvcoverage
c.Thevpremisesvliabilityvcoverage
d.Thevcompletedvoperationsvliabilityvcoveragev-vCORRECTvvANSWER-b
,Avpersonvwasvinjuredvduevtovtaintedvfoodvdeliveredvatvhisvhomevbyvavrestaurant.vWhatvCGLv
coveragevwouldvcovervthevrestaurantvownervshouldvthevpersonvsuevforvlegalvdamages?v-
vCORRECTvvANSWER-Thevproductvliabilityvcoverage.
Avpersonvwasvinjuredvfromvgasvescapingvfromvavgasvpipevaftervavcontractorvinstalledvavgasv
heater.vWhatvCGLvcoveragevwouldvcovervthevcontractorvshouldvthevpersonvsuevforvlegalvda
mages?v-vCORRECTvvANSWER-Thevcompletedvoperationsvliabilityvcoverage
Avpersonvwhovdoesvnotvownvanvauto,vbutvisvrequiredvtovcomplyv(filevSR-
22)vwithvFloridavfinancialvresponsibilityvlawvforvusevofvnon-ownvvehicles,vcanvpurchase?v-
vCORRECTvvANSWER-Thevnamedvnon-ownervpolicy
Avpolicyvwithvonevlimitvthatvwouldvapplyvtovallvlossesvthatvoccurvduringvthevpolicyvperiodvwou
ldvbevconsideredvasvwhatvtypevofvliabilityvlimit?v-vCORRECTvvANSWER-
aggregatevlimitvofvliability
Avpropertyvisvinsuredvwithvavfranchisevdeductiblevofv$500vandvtherevisvav$5,000vloss.vWhatv
amountvofvthevlossvwouldvbevpayablevbyvthevinsurer?v-vCORRECTvvANSWER-
$5,000v(theventirevlossvwouldvbevpaidvasvthevlossvexceedvthevdeductible).
Avpropertyvpolicyvisvinsuredvwithvavstandardvdeductiblevofv$500vandvtherevisvavlossvofv$5,00
0.vWhatvwouldvthevinsurervpayvforvthevloss?v-vCORRECTvvANSWER-$4,500v($5,000v-
v$500)
Avpropertyvvaluedvatv$100,000visvinsuredvforv$56,000vonvavpropertyvpolicyvthatvhasvavcoins
urancevrequirementvofv80%.vWhatvamountvofvthevlossvisvpayablevbyvthevinsurervifvtherevisvavl
ossvofv$20,000?vThevcoinsurancevformulavisvCv/vRvxvLvwherevCvisvthevamountvofvinsurancev
CARRIEDvbyvthevinsuredvonvthevproperty.vRvisvthevamountvofvinsurancevcoveragevREQUIR
EDvbyvthevinsurervbasedvonvthevcoinsurancevrequirementvandvLvisvthevamountvofvthevLOSS
.vThevamountvpayablevforvthevlossvwouldvbe?v-vCORRECTvvANSWER-
lossvwouldvbev$14,000v($56,000v/v$80,000v(80%vofv$100,000)vxv$20,000.
Avstatementvofvfactvthatvisvmadevpartvofvanvinsurancevcontractvandvavbreachvwouldvresultvinv
thevcontractvbeingvvoidablevbyvthevinsurervis?
a.Avconcealment
b.Avrepresentation
c.Avmisrepresentation
d.Avwarrantyv-vCORRECTvvANSWER-d
Allvofvthevfollowingvarevcoveragesvundervthevgaragevliabilityvcoveragevexcept?
a.Liabilityvresultingvfromvthevpremisesvofvavgaragevbusiness
b.Allvarevcovered
c.Liabilityvarisingvfromvthevoperationsvofvavgaragevbusiness
,d.Liabilityvarisingvfromvdefectivevproductsvandvfaultyvworkmanshipv-
vCORRECTvvANSWER-b
Anvagreementvthatvpaysvonvbehalfvofvanvinsuredvasvdefinedvbyvthevpolicyvorvcoveragevtheva
mountvthatvthevinsurervisvlegallyvliablevforvupvtovthevlimitsvofvthevpolicyvisvconsidered?v-
vCORRECTvvANSWER-legalvliability
Anvinsuredvautovisvinsuredvforv$30,000vliabilityvcoveragevthatvappliesvtovbothvbodilyvinjuryva
ndvpropertyvdamagevwouldvbevconsideredvas?
a.Singlevlimitvofvliability
b.Totalvliability
c.Aggregatevlimitvofvliability
d.Splitvlimitsvofvliabilityv-vCORRECTvvANSWER-a
Anvinsuredvhasv$10,000vPIPvcoveragevwithv$1,000vdeductiblevandvgotvinvanvaccidentvthatvr
esultedvmedicalvexpensesvofv$11,000.vWhatvisvthevPIPvcoveragevforvthevmedicalvexpenses
?v-vCORRECTvvANSWER-$8,000v($11,000v-
v$1,000vdeductiblev@v80%);Note:ifvaftervthevcalculationvthevamountvhadvexceededvthevcov
eragevlimitvofv$10,000vthenvthevamountvwouldvhavevbeenvthevcoveragevlimitvasvthevlossvcan
notvexceedvthevcoveragevlimit
Anvinsuredvhasv2vCGLvpoliciesvonvanvoccurrencevbasis.vPolicyvAvcoveragevwasvfromv1/1/20
11vtov12/31/2011.vPolicyvBvwasvfromv1/1/2012vtov12/31/2012.vAvlossvoccurredvonv12/01/20
11vandvreportedvtovthevinsurervonv1/15/2012.vWhatvpolicyvwouldvcovervthevloss?v-
vCORRECTvvANSWER-
PolicyvAvwouldvcovervthevlossvasvitvoccurredvduringvitsvpolicyvperiodvofv1/1/2011vtov12/31/20
11.
Anvinsuredvhasvav$1,000,000vUmbrellavpolicyvandvavpersonalvautovpolicyvwithv100/300/100
vliabilityvlimits.vThevinsuredvinjuredvavpersonvinvanvautovaccidentvresultingvinvdamagesvofv$8
00,000.vWhatvwouldvthevUmbrellavpolicyvwouldvpay?v-vCORRECTvvANSWER-
$700,000v($800,000v-v$100,000vthevpersonvautovBIvlimit)
AnvinsuredvhasvavDP-
1vpolicyvwithvavlimitvofv$100,000vonvthevdwellingvandvthevunattachedvgaragevwasvtotallyvdes
troyedvbyvfirevandvitvwillvcostv$15,000vtovbevrepaired.vWhatvisvthevcoveragevlimitvthatvwouldv
applyvtovthevdamagevgarage?v-vCORRECTvvANSWER-$10,000v(10%vofv$100,000)
Anvinsured'svfailurevtovrevealvrelevantvfactsvknownvtovthevinsuredvisvconsideredvas?v-
vCORRECTvvANSWER-concealment
Anvuntruevstatementvmadevbyvanvapplicantvforvinsurancevcoveragevwouldvbevconsideredva
s?v-vCORRECTvvANSWER-misrepresentation
Buildingsvareveligiblevforvfloodvcoveragevinvthevfollowingvsituationsvexcept?
, a.50%vorvmorevofvthevvaluevofvthevbuildingvmustvbevabovevground
b.Thevbuildingvmustvbev100%vcompleted
c.2vorvmorevofvthevoutsidevwallsvmustvbevcompleted
d.Thevroofvmustvbevcompletedvandvattachedvtovthevstructurev-vCORRECTvvANSWER-b
Calculatevthevamountvpayablevforvavlossvofv$50,000vbasedvonvavpropertyvthatvisvvaluedvatv$
200,000vandvthevpropertyvisvinsuredvforv$120,000vonvavpolicyvthatvrequiresvavcoinsuranceva
mountvofv80%?
a.$37,500v($120,000v/v$160,000v(80%vofv$200,000)vxv$50,000)
b.$10,000v(20%vofv$50,000)
c.$50,000v(100%vofv$50,000)
d.$40,000v(80%vofv$50,000)v-vCORRECTvvANSWER-a
Commercialvpropertyvinsurancevcoveragevmayvbevvoidvforvthevfollowingvreasonsvexcept?
a.Intentionalvconcealmentvofvmaterialvfacts
b.Intentionalvmisrepresentationvofvmaterialvfacts
c.Allvwouldvapply
d.Fraudvcommittedvbyvanvinsuredv-vCORRECTvvANSWER-c
Coveragevforvvehiclesvofvautovdealersvisvusuallyvwrittenvundervwhatvcoveragevform?v-
vCORRECTvvANSWER-
Onvavblanketvbasisvwhichvmeansvonevlimitvwouldvapplyvtovanyvonevloss.
Floodvcoveragevforvcontentsvareveligiblevwhen?v-vCORRECTvvANSWER-
Whenvthevbuildingvisvfullyvenclosed
Floodvlossesvarevgenerallyvsettledvundervwhatvsettlementvmethod?v-
vCORRECTvvANSWER-ThevActualvcashvvaluev(ACV)vsettlementvmethod
HowvarevlossesvdistributedvwhenvthevDPvpolicyvandvothervpoliciesvcovervthevsamevloss?v-
vCORRECTvvANSWER-Onvavpro-
ratavbasisvwhichvisveachvpolicyvlimitvinvrelationvtovthevtotalvpoliciesvlimitsvcoveringvthevsamev
loss.
Howvdovliabilityvlimitsvapplyvtovthevphysicians,vsurgeonsvandvdentistv(PS&D)vandvthevhospit
alvprofessionalvliabilityvpolicies?v-vCORRECTvvANSWER-
Coveragevlimitsvapplyvpervclaimv(orvmedicalvincident)vandvanvaggregatevlimitvforvallvclaimsvd
uringvthevpolicyvperiod.
Howvlossesvundervpropertyvinsurancevarevdistributedvwhenvmorevthanvonevpolicyvcoversvth
evsamevlossvbutvhasvdifferentvprovisions?v-vCORRECTvvANSWER-
Thevcommercialvpropertyvpolicyvwouldvbevexcessvovervthevothervpolicy.
