Exam (elaborations)
Florida 2-20 Agents License Exam Questions & answers.
- Course
- Institution
Florida 2-20 Agents License Exam Questions & answers.
[Show more]
Seller
Follow
Content preview
Florida 2-20 Agents License ExamQuestions & answers.
The Florida Surplus Service Lines Office (FSLSO) was created to ANS - oversee the surplus lines industry
in the state
Which of the following is NOT a required qualification for a General Lines Agent: ANS - Seeking the
license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: ANS - Pays insurance claims
Once license, you have how long to obtain an appointment? ANS - 48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? ANS - Submit rate filings
and underwriting rules for approval
Which one of the following statements is correct? ANS - Contractors must usually provide evidence of
liability insurance before a construction contract is granted.
From a risk management viewpoint, insurance is used to ANS - 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 ANS - Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by insurance? ANS -
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 ANS - 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?
ANS - Large 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 ANS - 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 ANS - 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 ANS - 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 ANS - The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial condition is the process of
ANS - Indemnification
Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it ANS -
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 ANS - Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability? ANS -
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? ANS - $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)? ANS - 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, ANS - 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: ANS - 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? ANS - $1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement condition ANS -
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 ANS - 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? ANS - 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)? ANS - 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 ANS - 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 ANS - 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? ANS - $1,500
The Florida Valued Policy Law applies to: ANS - mobile homes
For a Dwelling Flood policy, which is correct: ANS - 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? ANS - $0
One of the main factors used in developing a base premium for a homeowners policy is ANS - 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? ANS - $30,000
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now