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FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS|AGRADE
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FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS|AGRADE
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Not one of these were on reflected in the exam do not use this guide
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FLORIDA 2 -20 AGENTS LICENSE EXAM 2023 -2024 REAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS|AGRADE 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 in sured 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 liabil ity 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 un endorsed 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 certific ates. 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 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 re solve 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 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 . Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage is $35,000. Ignoring any deductible that may apply, how much will Bert and Maggie's insurer pay to replace the detached garage? - ANSWER - $30,000 Coverage for other structures is automatically provided under the HO -3—Special Form (HO -3) policy with a limit that is - ANSWER - 10 percent of the Coverage A limit 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 resid ence. How much of this loss will be paid by Renee's HO -3 policy? - ANSWER - $10,000 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? - ANSWER - Dwelling location Ralph has an unendorsed HO -3—Special Form (HO -3) policy. While coming home from a coin show, Ralph discovers that his automobile was broken into and a package containing $2,000 in coins, some tools, and groceries was stolen. Disre garding any deductible that may apply, will Ralph's HO -3 insurer pay for the loss of the coins? - ANSWER - Yes, the coins are covered up to a specified limit. Jim and Sue, a young married couple, are under contract to purchase a condominium unit. Which one of the following ISO policy forms is best designed to meet their homeowners insurance needs? - ANSWER - HO-6—Unit-Owners Form Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains $2,500 in medical bil ls, $3,000 damage to the laptop he was carrying, and $1,000 in lost wages. Allen's business auto policy has $100,000 liability limit and $5,000 medical payments limit. Assuming there is no other coverage, how much will his business auto policy pay? - ANSWE R- $2,500 An animal damaged the interior of an insured's automobile while it was parked with the windows down. Which one of the following types of physical damage coverage under the Business Auto Coverage Form would cover this loss? - ANSWER - Comprehensiv e Martha drives her auto, which is insured under a Business Auto Coverage Form, outside the state in which it is licensed. The other state requires a $25,000 bodily injury limit for underinsured motorists coverage. Martha's policy does not provide underin sured motorists coverage but does provide a $15,000 liability limit for uninsured motorists coverage. How would Martha's Business Auto Coverage Form respond to a $30,000 underinsured motorists bodily injury claim in the other state? - ANSWER - Martha's poli cy would provide the $25,000 bodily injury limit required by the other state for underinsured motorists coverage . Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive their own autos while on company business. Whic h one of the following exposures is created if Bilo decides in favor of employee -owned autos? - ANSWER - Employer's Nonownership Liability Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no car himself since he always drives a c ompany car. If you were the agent, what coverage would you add to the BAP to give Joe liability coverage while he drives a car not owned by the corporation? - ANSWER - Other Car coverage Which one of the following losses would be covered by the business au to policy? - ANSWER - The insured has agreed to pay for liability losses caused by the insured's negligence that a shipper may incur while the insured is hauling goods for the shipper. For commercial auto insurance, a truck, tractor, or trailer is non -zone rated if it is - ANSWER - A light truck operating over any distance. Mitchell is a highway contractor whose company is covered with a workers compensation policy and an unendorsed business auto policy. Which one of the following losses would be covered by his business auto policy? - ANSWER - An employee runs over a subcontra ctor's equipment with an owned auto. Joe Motors, which services automobiles, wants to maintain the goodwill of its customers. This is best accomplished by - ANSWER - Purchasing garagekeepers insurance.
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