FLORIDA 2-20 AGENTS LICENSE EXAM ACTUAL

FLORIDA 2-20 AGENTS LICENSE EXAM ACTUAL

EXAM WITH 300 QUESTIONS AND 100% CORRECT

ANSWERS|A+ GRADE

Liability coverage for loss exposures arising from a business organization's premises and operations, its products, or its completed work is typically provided by

Commercial General 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

Risk Transfer

Which one of the following statements is correct regarding the benefits provided by insurance?

Insurance helps reduce the financial burden to society by compensating the accident victims

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

Disability Insurance

Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it

Increases the total cost of insurance

Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability?

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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?

$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)?

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,

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:

Limit of Liability

Renee is an insured under an unendorsed HO-3—Special Form (HO- 3) with a Coverage C—Personal Property limit of $100,000. She owns a secondary residence that contains $15,000 of personal property. Only her primary residence is listed on the declarations page of the HO-3 policy. A fire destroys all of Renee's personal property at her secondary residence. How much of this loss will be paid by Renee's HO-3 policy? 2 / 3

$0

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

Excluded

A homeowners policy premium is determined by first developing the base premium. The base premium is influenced by certain factors, including which one of the following?

Dwelling location

The Florida Valued Policy Law applies to:

Total losses to a building only if caused by fire

For a Dwelling Flood policy, which is correct:

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?

$0

Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement condition

Establishes the process for determining the amount to be paid for a property loss.

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

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