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FLORIDA 2-20 AGENTS LICENSE
ACTUAL EXAM 2026 QUESTIONS AND
VERIFIED ANSWERS | ALREADY A
GRADED | NEW AND REVISED
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
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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
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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
homeowners 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
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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 cost of the house. A fire destroys the house including a
collection of blueprints belonging to Sally's employer, valued at
$10,000. Sally was storing the blueprints at her home while her office
was changing locations. Assuming no deductible applies, how much, if
any, will Sally's HO-3 insurer pay to replace the blueprints? -
ANSWER- $0
One of the main factors used in developing a base premium for a
homeowners policy is - ANSWER- The public protection class.
FLORIDA 2-20 AGENTS LICENSE
ACTUAL EXAM 2026 QUESTIONS AND
VERIFIED ANSWERS | ALREADY A
GRADED | NEW AND REVISED
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
,2|Page
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
,3|Page
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
homeowners 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
, 4|Page
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 cost of the house. A fire destroys the house including a
collection of blueprints belonging to Sally's employer, valued at
$10,000. Sally was storing the blueprints at her home while her office
was changing locations. Assuming no deductible applies, how much, if
any, will Sally's HO-3 insurer pay to replace the blueprints? -
ANSWER- $0
One of the main factors used in developing a base premium for a
homeowners policy is - ANSWER- The public protection class.
