FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM WITH 300 QUESTIONS AND CORRECT DETAILED ANSWERS ALREADY GRADED A+

The Florida Surplus Service Lines Office (FSLSO) was created to - Correct Answeroversee the surplus lines industry in the state Which of the following is NOT a required qualification for a General Lines Agent: - Correct Answer- Seeking the license only to write controlled business The Department of Financial Services performs the following, EXCEPT: - Correct Answer- Pays insurance claims Once license, you have how long to obtain an appointment? - Correct Answer- 48 months Which of the following is NOT a duty of the Office of Insurance Regulation? - Correct Answer- Submit rate filings and underwriting rules for approval Which one of the following statements is correct? - 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 - Correct 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 - Correct Answer- Commercial general liability insurance. Which one of the following statements is correct regarding the benefits provided by insurance? - Correct 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 - Correct 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? - Correct AnswerLarge 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 - Correct 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 - Correct 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 - Correct 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 - Correct Answer- The potential for financial ruin. The process of restoring an individual or organization to a pre-loss financial condition is the process of - Correct Answer- Indemnification Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it - Correct 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 - Correct Answer- Disability insurance. Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability? - Correct 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? - Correct 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)? - Correct AnswerNo, 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, - Correct 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: - Correct 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? - Correct Answer- $1,700 Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement condition - Correct 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 - Correct 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? - Correct Answer- Adam and the insurer will each selectan 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