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CURRENTLY TESTING SOLUTIONS FLORIDA 2-20 STATE
EXAM AND PRACTICE EXAM (FINAL EXAM) WITH
ACTUAL CORRECT DETAILED ANSWERS
Who may appoint a Customer Representative? Select one: A. A surplus lines agent holding a general lines license and a surplus lines license B. A general lines agent or a general lines insurance agency C. An adjuster D. An insurance company - ANSWER-B. A general lines agent or a general lines insurance agency Mr. Smith lives in New Jersey but visits Florida each year. When does he come under the Florida No-Fault system, in any 365-day period? Select one: A. After 60 days in Florida B. After 30 days in Florida C. After 14 days in Florida D. After 90 days in Florida - ANSWER-D. After 90 days in Florida A Hospital Indemnity Policy covers which of the following expenses? Select one: A. A flat amount per day for hospital room and board B. Nursing care in the insured's home C. Medical supplies D. Surgical fees incurred in the hospital - ANSWER-A. A flat amount per day for hospital room and board
Under the Garagekeepers coverage, Section III of the Garage policy, the insured suffers a single vandalism loss to nine (9) vehicles belonging to customers. Damage is $100 per vehicle. How much will the policy pay? Select one: A. $ B. $ C. Nothing D. $400 - ANSWER-D. $ Bob, an accountant of XYZ, drives his own car to the bank to make a deposit for XYZ. Bob has an at-fault accident. If XYZ carries $1,000,000 Bodily Injury/Property Damage coverage with a Symbol 2 for covered autos, and Bob carries no insurance, how much coverage is applicable for XYZ? Select one: A. No coverage B. $10,000/$20,000 Bodily Injury and $10,000 Property Damage C. $1,000, D. $500,000 - ANSWER-A. No coverage Unless properly licensed an general lines agent cannot Select one: A. All of these answers are correct B. Receive any money on account for any insurer or receive money to be transmitted to an insurer for a policy, renewal, endorsement or certificate C. Solicit insurance or procure applications for insurance D. Directly or indirectly represent himself or herself to be an agent or receive, deliver or forward any insurance policy within the state - ANSWER-A. All of these answers are correct At the time of a loss, it is found that the covered building had been vacant for the period of 75 consecutive days immediately preceding the loss. Which of the following perils would not be covered? Select one:
D. 45 days - ANSWER-C. 90 days Florida Statutes establish standards, which must be met by Medicare Supplement insurance. Which of the following is not a standard? Select one: A. The policy may not limit coverage for more than 6 months because of a pre-existing health condition B. Policies must be written in understandable language C. The policy is returnable within one year for full premium refund D. The policy must be accompanied by an outline of coverage and a Medicare Supplement Buyer's Guide
- ANSWER-C. The policy is returnable within one year for full premium refund Which of the following does not have an insurable interest in a property? Select one: A. A mortgage company B. A friend who purchased insurance in his own name because the owner refuses to buy insurance C. The son of owner who expects to inherit property D. A mother-in-law who gives cash as a gift - ANSWER-D. A mother-in-law who gives cash as a gift What are possible consequences for aiding and abetting an unauthorized insurer? Select one: A. Conviction of a third-degree felony B. All of these answers are correct C. Subject to suspension or revocation of all insurance licenses D. Liability for all unpaid claims of the unauthorized insurer - ANSWER-B. All of these answers are correct Actual Cash Value is best defined as: Select one: A. Replacement cost less tax depreciation B. Original cost less tax depreciation
C. Original cost less physical depreciation D. Replacement cost less physical depreciation - ANSWER-D. Replacement cost less physical depreciation A Customers Representative's authority does not include: Select one: A. Conducting sales work outside of the agent's office B. Taking insurance applications, giving quotes, interpreting policies, and giving insurance advice C. Binding new and additional coverages D. Performing preliminary work to assist in processing claims - ANSWER-A. Conducting sales work outside of the agent's office Which of the following are covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability policy? Select one: A. All of these answers are correct B. Liability due to one's products injuring others C. Contingent Liability caused by a subcontractor of the insured D. Liability assumed under a lease contract - ANSWER-A. All of these answers are correct An employee was furnished a company automobile for his business and personal uses. While driving to a movie one evening, his automobile was struck by another vehicle at an intersection. The employee and two members of his family were injured. Which of the following statements is true? Select one: A. All injuries would be covered by Part Two of the policy B. Workers' Compensation policy would pay for employee's injury C. Workers' Compensation policy would pay for employee's injury under Part One and injuries to family members under Part Two (Employer's Liability) D. No coverage under the Workers' Compensation policy - ANSWER-D. No coverage under the Workers' Compensation policy
C. Extended Personal Injury Protection D. Increase Uninsured Motorist coverage - ANSWER-B. No additional coverage is necessary to protect the neighbor Under a Commercial Property Policy, the Legal Liability coverage does not provide coverage for the insured against damage to which type of property? Select one: A. In the care, custody, and control of the insured B. Owned by the insured C. Leased equipment - ANSWER-B. Owned by the insured Business Income is defined as which one of the following? Select one: A. Net profit/loss before taxes excluding continuing normal operating expenses B. Net profit/loss after taxes plus continuing normal operating expenses C. Net profit/loss before taxes including continuing normal operating expenses D. Net profit/loss after taxes excluding continuing normal operating expenses - ANSWER-C. Net profit/loss before taxes including continuing normal operating expenses Describe a MEWA (Multiple-Employer Welfare Arrangement). Select one: A. MEWAs require a Certificate of Authority from the Department of Insurance. B. MEWAs are defined as an arrangement that is established or maintained to provide one or more various insurance benefits (health insurance) to the employees of two or more employers C. All of these answers are correct D. MEWAs (Multiple-Employer Welfare Arrangement) are regulated as risk-bearing entities by the Florida Insurance Code - ANSWER-C. All of these answers are correct Personal Liability (Section III) of a Homeowner's policy covers which of the following? Select one:
A. Bodily Injury or Property Damage caused by war B. Bodily Injury to a member of the household by a neighbor's dog C. Damage to the insured's property caused by a visitor D. Bodily Injury or Property Damage caused by personal activities of the insured or family members anywhere in the world - ANSWER-D. Bodily Injury or Property Damage caused by personal activities of the insured or family members anywhere in the world Which of the following would not be considered an "employment" under the worker's compensation law? Select one: A. One or more employees in the construction industry B. Private employments with four or more employees except in the construction industry C. Governmental employments regardless of the number of employees D. Domestic servants in private homes - ANSWER-D. Domestic servants in private homes Under the Commercial Property policy, the Special Causes of Loss Form provides coverage for direct physical loss unless the loss is from which one of the following perils? Select one: A. Employee dishonesty B. All of these answers are correct C. Zoning and planning errors D. Wear and tear - ANSWER-B. All of these answers are correct If Flood is confined to a single building, how much area must be inundated in order for the Flood policy to provide coverage? Select one: A. Two acres or over B. One acre or over C. Three acres or over D. No limit - ANSWER-A. Two acres or over
D. Bodily Injury to Mrs. Smith only - ANSWER-B. Bodily Injury to Mrs. Smith and damage to the kitchen but not the refrigerator Which of the following is a true statement concerning sole proprietors under the worker's compensation law? Select one: A. All partners are considered to be employers and may exempt themselves under the law B. A sole proprietor may elect to be exempt from coverage under the law C. All of these answers are correct D. Sole proprietors and partners in the construction industry may not exempt themselves from coverage
- ANSWER-D. Sole proprietors and partners in the construction industry may not exempt themselves from coverage The insured has a Commercial General Liability policy written on a Claims Made basis. During the policy term an incident occurred and was reported to the agent. No claim was made until two years after expiration of the policy and after coverage had been renewed by another insurer. Which of the following describes how the insurer will respond? Select one: A. The claim will be paid by the current insurance company B. The claim will be denied because the Statute of Limitations has expired C. The claim will be denied because the claim was not presented during the policy period D. The claim is covered by the carrier at the time of the incident since the incident was reported during the policy period and the claim was made within five years of expiration of the claims made policy - ANSWER-D. The claim is covered by the carrier at the time of the incident since the incident was reported during the policy period and the claim was made within five years of expiration of the claims made policy A General Lines Agent is: Select one: A. A personal lines agent who has not complied with the continuing education requirements of the State of Florida B. One approved by a general lines agent to assist in transacting business of private passenger motor vehicles from the agency office
C. One who is appointed by a general lines agent or agency to assist in transacting the business of the agency from the agency office D. One who may transact property insurance, casualty insurance, surety insurance, health insurance, and marine insurance in the State of Florida - ANSWER-D. One who may transact property insurance, casualty insurance, surety insurance, health insurance, and marine insurance in the State of Florida An insured whose legally parked automobile is damaged by a mudslide may collect for damages under which of the following coverages? Select one: A. No coverage B. Other than Collision C. Property Damage Liability D. Collision - ANSWER-B. Other than Collision Under the Building and Personal Property coverage form, which of the following items would be covered for damage by windstorm? Select one: A. Fences B. None of these answers are correct C. Outdoor TV antenna D. Shrubbery - ANSWER-B. None of these answers are correct What coverage form applies for one who leases a building from another, as to the possibility of being responsible to the owner for damage to the building caused by fire due to negligence of the tenant? Select one: A. Builders Risk coverage B. Legal Liability coverage C. Replacement Cost coverage D. Agreed Value coverage - ANSWER-B. Legal Liability coverage Under a Business Income Property form, which coinsurance clauses are available?
D. An insurer formed under Florida laws, but which may provide insurance in other states - ANSWER-C. An insurer formed under the laws of any state, other than Florida Which of the following apply to the separation of insureds condition of the CGL policy? Select one: A. All of these answers are correct B. Coverage only applies to the first named insured on the policy C. Coverage applies separately to each insured as if that interest were the only insured D. Coverage applies separately if there are separate policies for each insured - ANSWER-C. Coverage applies separately to each insured as if that interest were the only insured Which one of the following features is not true about a Health Maintenance Organization (HMO)? Select one: A. Their goal is to practice preventive medical care B. They are known as a program that offers insureds the broadest choices of doctors and specialty care C. They have separate physical facilities to treat patients D. They have few exclusions and a small deductible and co-payment - ANSWER-B. They are known as a program that offers insureds the broadest choices of doctors and specialty care Is a legitimate ERISA Self-Insurance plan necessarily an insurance plan subject to state regulation? Select one: A. A genuine single-employer ERISA plan is not subject to direct state insurance regulation B. A legitimate ERISA Self-Insurance plan is never deemed to be insurance C. None of these answers are correct D. A legitimate ERISA Self-Insurance plan is always deemed to be insurance - ANSWER-A. A genuine single-employer ERISA plan is not subject to direct state insurance regulation The insured has the building covered under the Building and Personal Property Coverage Form in the amount of $100,000. The Replacement Cost Value of the building is $125,000. The policy contains a $5,000 deductible clause. Assuming no other coverage, which of the following is payable in the event of a $120,000 loss?
Select one: A. $80, B. $125, C. $100, D. $95,000 - ANSWER-C. $100, The insured has purchased Mechanical Breakdown coverage. Which of the following are not covered? Select one: A. Radio Antenna B. Engine C. Air Conditioning D. Transmission - ANSWER-A. Radio Antenna An insured with the Building and Personal Property form covering $100,000 on Personal property, left tools and equipment in a company van which was parked just outside (within 75 feet) of the building overnight. What would the insurer pay for a theft loss of tools from the van? Select one: A. No coverage B. 10% of personal property limit would apply, up to $25, C. Only $2,500 extension applies to personal property outside of building D. Entire loss, less deductible (if applicable) - ANSWER-D. Entire loss, less deductible (if applicable) All of the following are covered by Mail Coverage (Inland Marine Form) except: Select one: A. Parcel Post B. Registered Mail C. First Class Mail D. Express Mail - ANSWER-A. Parcel Post
C. Money loss D. Refrigerator - ANSWER-C. Money loss Smith, Inc. provides an automobile for an employee who has no automobile of his own. What additional coverages, of the following, could be added to protect the employee? Select one: A. Additional Personal Injury Protection B. Drive Other Car Endorsement C. Extended Non-Owner D. Miscellaneous Type Vehicles - ANSWER-B. Drive Other Car Endorsement Which of the following is true regarding Farm Property Coverage? Select one: A. Farm Property Coverage covers growing crops B. Farm Property Coverage covers household personal property C. Farm Property Coverage does not cover barns and silos D. Farm Property Coverage does not cover animals - ANSWER-B. Farm Property Coverage covers household personal property An insured is a restaurant operator who carries a Commercial General Liability policy. The insured's premises include a parking area used for valet parking of customer's cars. An employee of the insured, while parking a customer's automobile, hit another automobile in the parking lot. In addition to damage to the automobile, a customer was injured while standing beside the damaged automobile. Which of the following describes how the insurer will respond? Select one: A. Will pay nothing B. Will pay injuries to injured customer C. Will pay damage to customer's automobile D. Will pay for injury to customer and damage to customer's automobile - ANSWER-B. Will pay injuries to injured customer
Which of the following are not Unfair Methods of Competition or Unfair or Deceptive Acts? Select one: A. Twisting or Churning B. Giving to an insured, for advertising purposes, an article of merchandise having a value of $25 or less C. Misrepresentation or false advertising of benefits, advantages, conditions or terms of an insurance policy D. Refusal to insure solely because of race, color, creed, marital status, sex, or national origin - ANSWER- B. Giving to an insured, for advertising purposes, an article of merchandise having a value of $25 or less Under the general provisions of the Crime Policy, which of the following valuations is incorrect? Select one: A. Other property is valued at the lesser of actual replacement cost or the cost to repair B. Money is valued at Face Value C. Securities are valued at the time the loss is discovered D. Other property is valued at Replacement Cost at the time the loss is discovered - ANSWER-D. Other property is valued at Replacement Cost at the time the loss is discovered Which of the following cannot be included in a Commercial Package Policy? Select one: A. Workers' Compensation B. Commercial Inland Marine C. Boiler and Machinery D. Commercial Automobile - ANSWER-A. Workers' Compensation The ABC Corp. purchased a new business during the term of its Commercial General Liability policy. A claim occurs for which the new business is liable but before the new business is added to the policy by endorsement. Which of the following statements are true? Select one: A. There is no coverage until the insured has advised the agent of the acquisition B. The loss will be covered by ABC's policy if the loss occurs within 90 days of purchase of the new business
A Builder's Risk coverage form is written in the amount of $100,000. The completed value of the structure is $150,000. The building is completed on June 1. On September 15, while helping the new occupant with his grand opening sale, a clerk sneaks a smoke in the restroom. A fire ensues causing a $10,000 fire loss. How much will the insurer pay? Select one: A. $10, B. Nothing C. $6, D. $7,500 - ANSWER-B. Nothing A product purchased in the U.S. subsequently injured a claimant in Europe. Which of the following best explains the merchant's coverage under his Product's Liability coverage? Select one: A. No coverage as loss was outside the U.S. B. Covered only if the policy is endorsed to provide European coverage C. Covered if any suits are brought in the U.S. or one of the covered territories D. Not covered as product was out of the physical possession of the - ANSWER-C. Covered if any suits are brought in the U.S. or one of the covered territories The Insurance Department may, at its discretion, issue a temporary license: Select one: A. If no other person connected with the agent's business is licensed as a general lines agent B. To a licensed agent's employee, family member, business associate, or personal representative C. All of these answers are correct D. In the event of death, disability, or absence of a general lines agent - ANSWER-C. All of these answers are correct Subrogation may follow which of the following events? Select one: A. An insured collects from his insurance company for damage caused by third party B. A firefighter damages the insured's property while extinguishing a fire
C. Forces of nature damage the insured's property while extinguishing a fire D. An insured causes damage to his own goods - ANSWER-A. An insured collects from his insurance company for damage caused by third party An insured with coverage under a Commercial General Liability policy buys a new crane and immediately drives the crane on the highway to a job site. While driving on the highway, the insured had an at-fault accident. Which of the following describes how the insurer will respond? Select one: A. The insurer will deny the claim as the crane was operated on the highway under its own power B. The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy C. The insurer will deny the claim because only specifically scheduled equipment is covered D. The insurer will pay the claim only if the insured has a Business Auto policy - ANSWER-B. The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy What are the rules that allow for state regulation of MEWAs? Select one: A. All of these answers are correct B. If not fully insured, the MEWA is subject to all state insurance laws not inconsistent with ERISA C. A MEWA that is not an employee benefit plan is subject to state insurance regulation D. If fully insured, the MEWA remains subject to state regulation - ANSWER-A. All of these answers are correct The insured owns an apartment building, which is covered by a Businessowner's Policy. Which limits apply to covered losses to outdoor trees, shrubs, and plants? Select one: A. $250 any one item with a $5,000 maximum B. $250 any one item with a $2,500 maximum C. $500 any one item with a $2,500 maximum D. $500 any one item with a $5,000 maximum - ANSWER-C. $500 any one item with a $2,500 maximum
