FLORIDA 2-20 AGENTS LICENSE FINAL EXAM AND STUDY GUIDE NEWEST 2024 2025 ACTUAL EXAM, Exams of Real Estate Management

Download FLORIDA 2-20 AGENTS LICENSE FINAL EXAM AND STUDY GUIDE NEWEST 2024 2025 ACTUAL EXAM and more Exams Real Estate Management in PDF only on Docsity! FLORIDA 2-20 AGENTS LICENSE FINAL EXAM AND STUDY GUIDE NEWEST 2024 2025 ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS. GRADED A "Additional Coverage", under a Commercial Property policy include all of the following except: - ANSNewly acquired locations for up to 60 days 10% for a self-storage facility does not apply to personal property that is moved from the residence premises because: - ANSIt's being repaired A _____________ is required in order for an insurer to transact insurance in Florida. - ANSCertificate if Authority A claim under an ISO Commercial Crime Coverage Form is subject to the Valuation —Settlement condition. Which one of the following is true regarding this Valuation—Settlement condition? - ANSDamaged property is valued at replacement cost or the insurer can repair or replace the property A Commercial Package Policy (CPP) premium may be modified by a package modification factor. This factor - ANSIs a discount justified by the greater efficiency in providing a package policy. A Commercial Package policy may include the following coverage types EXCEPT: - ANSHealth A condominium unit owner would use which form? - ANSHO-6 A description of the property insured, a list of mortgagees, and the applicable coinsurance percentage(s) are shown on which one of the following documents? - ANSCommercial property declarations A Florida insured has a Personal Auto Policy providing PIP coverage with a $1,000 deductible. The insured is injured in his vehicle and sustains $15,000 in medical bills. How much will his policy pay under PIP? - ANS$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? - ANSDwelling location All of the following are BI and PD exclusions under the CGL EXCEPT: - ANSExcessive Liability All of the following are controlled Commercial Inland Marine lines EXCEPT: - ANSAnnual Transit All of the following are coverage extensions found in the Building and Personal Property Coverage form except: - ANSOff premises sign coverage up to $2,500 All of the following are deductibles for FAJUA Physical Damage Coverage EXCEPT: - ANS$2,500 All of the following are eligible for a homeowners policy EXCEPT: - ANSOwner- occupants of a 1-6 family dwelling All of the following are eligible for the PAP policy EXCEPT: - ANSCorporations All of the following are exclusions under Garage Insurance Physical Damage coverage EXCEPT: - ANSExpected losses All of the following are Major Medical Insurance exclusions EXCEPT: - ANSCosmetic surgery required by accident All of the following are not true regarding property coverages under the Businessowners policy EXCEPT: - ANSACV on personal property All of the following are Optional Coverages under the Buisnessowners policy EXCEPT: - ANSCollapse All of the following are penalties under the Florida No-Fault Law EXCEPT: - ANSSR 22 denied All of the following are true of the Supplemental Extended Reporting Period (SERP) under a Claims-made CGL policy except: - ANSThe coverage is automatic and need not be requested by the insured. All of the following can be an insured under the Lawyers Professional Liability policy EXCEPT: - ANSLawyers for their services after termination All of the following coverages are available for FAJUA commercial vehicles over 10,000 lbs EXCEPT: - ANSCollision All of the following fall under the definition of sliding EXCEPT: - ANSGiving the applicant a portion of the commission All of the following forms will apply to owner-occupants of 1-4 family dwellings EXCEPT: - ANSHO-6 All of the following Special Limits can be increased EXCEPT: - ANSFirearms from $2,500 to $10,000 Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains $2,500 in medical bills, $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? - ANS$2,500 Alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them are referred to as - ANSImprovements and betterments. 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 organizations for loss to wildlife. Does Betty's Commercial General Liability (CGL) Coverage Form cover the cost to withdraw the birdhouses and feeders? - ANSNo, because the cost to withdraw Betty's product is excluded Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive their own autos while on company business. Which one of the following exposures is created if Bilo decides in favor of employee-owned autos? - ANSEmployer's Nonownership Liability Bob, an employee of Tank's Trucks, is backing one of Tank's trucks toward the loading dock on the insured premises. Bob accidentally strikes Alice, another employee, while she is directing Bob toward the loading dock. Alice sues Bob for her injuries. Is Bob covered under Tank's Trucks' unendorsed Business Auto Coverage Form for liability coverage? - ANSNo, because fellow employees' suits are excluded. Business Auto policy extends to trailers with a load capacity of: - ANS2,000 lbs of less Business Income and Extra Expense under the Businessowners policy includes all of the following EXCEPT: - ANS$500,000 limit Carl's Cabinets sells and installs cabinets in apartment buildings. After installation but before an apartment is occupied, two of the cabinets are damaged when they fall from the wall as a result of improper installation. Carl's Commercial General Liability (CGL) Coverage Form excludes coverage for the damage to the cabinets because of which one of the following exclusions? - ANSDamage to Your Work Chuckie's chicken distributor researches the benefits of consuming chicken versus consuming beef. In November 2011, Chuckie's publishes a brochure outlining the potential health hazards of consuming beef and explaining why chicken is a healthier alternative. Chuckie continues to publish and distribute the same brochure for six months. In March 2012, several beef distributors file a suit against Chuckie's for personal and advertising injury. Which one of the following exclusions would apply to this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form (CGL) with a policy period of January 2012 - January 2013? - ANSMaterial published prior to the policy period Citizens homeowners does not include coverage on all the following EXCEPT: - ANSBuilding under construction for named insured Citizens provides commercial coverage for which one of the following? - ANSCondo Associations Coverage for other structures is automatically provided under the HO-3—Special Form (HO-3) policy with a limit that is - ANS10 percent of the Coverage A limit Crime loss exposures of financial institutions are covered by financial institution bonds. These policies were developed by - ANSThe Surety and Fidelity Association of America (SFAA). Employee Theft includes coverage for the following EXCEPT: - ANSWork loss Entities eligible for financial institution bonds are - ANSNot eligible for the ISO Commercial Crime Forms. Federal workers compensation statutes apply to which one of the following workers? - ANSAn interstate railroad worker Florida Law requires not less than a ________ day notice for cancellation of a health insurance policy. - ANS20 day Florida law requires not less than a _________ day grace period for monthly premium policies. - ANS10 day Homeowners Insurance is designed to protect all of the following EXCEPT: - ANSlegal liabilities for damages to home How can a Corporate Officer be exempt from WC coverage? - ANSFile a notice with the Division of Corporations How can partners and sole proprietors elect to be covered for WC? - ANSFile election form with the Division How does Part D-Damage to Your Auto apply to a nonowned auto? - ANSThe Broadest coverage applicable on your covered auto on an excess basis How long do appointments last? - ANS24 months How many days does an agent have to notify the DFS if their contact information changed? - ANS30 days How many days does the Building and Personal Property Coverage form extend coverage for newly acquired buildings or new buildings under construction? - ANS30 days How many days of automatic coverage are provided for an accident to an object at a newly acquired location, subject to the highest limit and deductible as stated in the Declarations for the same type of object? - ANS90 How many parties are there in a surety contract? - ANSThree If a loss is covered by recoverable insurance, the Crime policy will be: - ANSExcess If a tenant is injured, would the CGL, Coverage C: Medical Payments pay for the injury? - ANSNo, if the tenant is on the part of the premises the tenant normally occupies If an agent violates any provision of the Unfair Methods of Competition and Unfair or Deceptive Acts statute they could be subject to the following fines: - ANS$5,000 for each non willful violation and $40,000 for each willfull violation If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of the following policy conditions prevents the insured from suing the insurer if the insured is not satisfied with the insurer's handling of the claim? - ANSLegal Action Against the Insurer 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 - ANSGovernmental Action exclusion. If the FWCJUA experiences a deficit in either Tier 1 or 2, funding would come from where? - ANSAn assessment for 1 year on all WC policies in the voluntary market If the insured is building a new home, is he eligible for a homeowners policy on the new home while under construction? - ANSYes In a Personal Auto Policy, which of the following statements is incorrect? - ANSThe maximum amount payable under the Supplementary Payments is $250 In the liability coverage agreement of the business auto policy, the insurer expresses its three distinct duties. Which one of the following is among these duties? - ANSA duty to pay covered pollution cost In the Liability section of the Businessowners policy, the General Aggregate limit is: - ANSEqual to twice the Liability and Medical Expenses limit 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 car. 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 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 Joe has a Personal Auto Policy with two cars and UM limits of 25/50 stacked. He also has basic PIP and $1,000 Med Pay. He is involved in an accident where a hit and run driver runs into his car. He has $42,000 in medical bills. How much would his UM pay? - ANS$31,000 Joe has a standard DP-3 on his Florida home with the following coverages: A- $80,000; C-$20,000. Which of the following would be covered, ignoring a deductible: - ANSA $3,000 TV set burns in a fire Joe has Personal Articles Floater covering a musical keyboard he uses for personal use only. While away on vacation in Europe the keyboard is stolen. He had it scheduled for $1,000. To purchase a new keyboard the cost would be $1,250. The company could get the same item at a used musical store for $750. What would the policy pay? - ANS$750 Joe is out for an evening cruise on his 100 ft yacht. The fog rolls in and he loses all visability. Then suddenly slams into another boat moored nearby. The damage to the other boat is roughly $20,000. Under what section of Joe's Ocean Marine Policy would there be coverage for the other boat? - ANSRunning Down Clause Joe Motors, which services automobiles, wants to maintain the goodwill of its customers. This is best accomplished by - ANSPurchasing garagekeepers insurance. Joe works for Tastee Burger, Inc. As part if his compensation package, he is supplied with a company car that he gets to take home each night. Joe wants to make sure that the Liability coverage under his own Personal Auto Policy covers him while driving the company car. What should he ask his agent to add to his own policy? - ANSExtended Nonowned Liability coverage Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no car himself since he always drives a company 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? - ANSOther Car coverage 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)? - ANSNo, because Keith is involved in a share-the-expense car pool. Kenneth, the named insured under a Business Auto Coverage Form with symbol 1 shown for liability coverage, causes an automobile accident while driving a rental car on a business trip. Is Kenneth covered under the liability insuring agreement of his Business Auto Coverage Form for this accident? - ANSYes, because Kenneth, the named insured, is an insured for any auto. Knowingly making false or maliciously critical comments to injure a person is known as: - ANSDefamation Liability coverage for loss exposures arising from a business organization's premises and operations, its products, or its completed work is typically provided by - ANSCommercial general liability insurance. ANSOmicron should include Utah, Arizona, and New Mexico in Item 3.C on the Information Page and advise the insurer immediately if the company begins operations in any of those states. Once license, you have how long to obtain an appointment? - ANS48 months 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 - ANSSociety One of the main factors used in developing a base premium for a homeowners policy is - ANSThe public protection class. 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? - ANSLarge number of similar exposure units Part D-Damage To Your Auto has an additional benefit automatically included called: - ANSTransportation expense Part D-Damage to Your Auto pays claims by - ANSPaying the ACV or cost to repair Part One of the Workers Compensation and Employers Liability Insurance Policy provides that the insured will reimburse the insurer for which one of the following? - ANSPenalties required under a workers compensation law because of the employer's willful misconduct. Personal Inland Marine coverages are generally rated based on a rate per ______ dollars, varying by class. - ANS100 Physical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both, is___________ insurance. - ANSAircraft Hull Property coverage under the Businessowners policy is written: - ANSOpen perils/endorsed for named perils 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 - ANSExcluded. 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. Disregarding any deductible that may apply, will Ralph's HO-3 insurer pay for the loss of the coins? - ANSYes, the coins are covered up to a specified 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 residence. How much of this loss will be paid by Renee's HO-3 policy? - ANS$10,000 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 - ANSThe potential for financial ruin. 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 Technical Corporation (TC) is covered by an ISO Commercial Crime Coverage Form with Inside the Premises and Outside the Premises insuring agreements. During a recent audit, TC discovered a significant monetary loss due to an accounting omission. Which of the following best explains the insurer's response to a claim presented by TC? - ANSLoss due to accounting omission is excluded. Temporary insurance is effected through: - ANSBinders The __________ is an uncontrolled form that covers heavy equipment, machinery and tools contractors used in the course of business. - ANSContractors Equipment Floater The "maximum period of indemnity" endorsement is an optional endorsement in the Business Income Coverage form and it provides coverage after the period of restoration for what period of time: - ANS120 days The 3 categories of benefits under the WC law are all of the following EXCEPT: - ANSHousehold services up to 60 days The basic limits for loss assessments for both Section I and II of the HO-3 are - ANS$1,000 in both Section I and II The Business Auto Coverage form has no provision for what is known as "bobtailing." The motor carrier's coverage form does provide coverage for bobtailing. Which of the following activities is considered "bobtailing" as it relates to an owner-operator's liability coverage? - ANSOperating a power unit without a trailer The Causes of Loss—Basic Form differs from the Causes of Loss—Broad Form in which one of the following ways? - ANSThe Broad Form provides coverage for loss caused by collapse of a building or personal property resulting from specified perils. The Commercial Property Floater Dealer's policy covers primarily: - ANSDamage to merchandise while on the business premises. The commercial umbrella, when primary, is subject to a deductible known as: - ANSSelf-insured retention The Computer Store (TCS) brought a claim under the Employee Theft insuring agreement of its ISO Commercial Crime Coverage Form. TCS's claim is based on an inventory shortage. To overcome the inventory shortages policy exclusion, TCS must demonstrate that the - ANSLoss can be established wholly apart from inventory computations. The contract where one should not profit from the response by the policy is called: - ANSIndemnity contract The contract where the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions is called: - ANSConditional contract The contract wherein the parties are of unequal bargaining power and one party cannot negotiate the terms and has to take the offer as made is called: - ANSContract by Adhesion The controlled _______________from reimburses the insured for the cost of replacing damaged manuscripts, films, maps, drawings, deeds, books or other printed, inscribed or written documents (other than money and securities). - ANSValuable Papers The deductible for the Aircraft Hull policies is normally expressed as: - ANSPercentage deductible The owners of Uncle Reggie's Steakhouse are insured under a Building and Personal Property Coverage Form (BPP) that covers their building and business personal property for $350,000 and $100,000, respectively. The policy has a $2,500 deductible. A fire results in $350,000 worth of damage to the building and a $70,000 loss of business personal property. In what amounts should the policy provide coverage for this loss? - ANS$347,500 Building and $70,000 Property The PAP endorsement that covers motorcycles, golf carts, and all-terrain vehicles is called: - ANSMiscellaneous Type Vehicle The PAP endorsement that provides coverage for an individual who does not own a car is called: - ANSNamed Nonowner Coverage The part of the PAP policy that provides coverage for bodily injury for a accident caused by a driver without liability or with liability limits that do not cover the insured's damages is called: - ANSUninsured motorist The process of restoring an individual or organization to a pre-loss financial condition is the process of - ANSIndemnification The Random Bookstore (Random) is covered by an unendorsed Commercial General Liability (CGL) Coverage Form. A customer in the store tripped over her untied shoelace and fell, breaking her right arm. Which one of the following is a reason Random's insurer might refuse to pay any damages under Random's CGL policy? - ANSThe insured must be legally obligated before the insurer has the duty of paying. The Roof Deck Attachment must have all the following approvals EXCEPT: - ANSHave roof inspected by DFS The standard deductible in the Boiler and Machinery coverage form is: - ANS$500 The supplementary payments section of the Commercial General Liability (CGL) Coverage Form describes which one of the following? - ANSSpecific items to be paid in addition to damages. The territorial limits for the Aviation policy includes all of the following EXCEPT: - ANSUS Possessions The three parties to a contract suretyship are: - ANSPrincipal, Obligee, Surety The valuation clause provides for placement cost coverage on all covered property, except if repair or replacement is not made within how long? - ANS18 months The WB Bank (WBB) uses several outside companies to help process a large number of credit card transactions on a daily basis. WBB carries an ISO Commercial Crime Form with a Computer Fraud insuring agreement selected. After a recent audit, WBB becomes aware that a significant number of credit card transactions have somehow disappeared from the computer system. Which one of the following is most likely true regarding coverage under the Computer Fraud insuring agreement? - ANSCoverage is excluded for credit or debit card transactions. The workers compensation laws of some states are inapplicable to which one of the following? - ANSPartners, sole proprietors, or executive officers. The XYZ Finance Company is insured under an ISO Commercial Crime policy. One month after the policy inception date, XYZ acquired ownership of a smaller finance company including its premises and employees. Which one of the following best describes XYZ's responsibility under the Consolidation—Merger or Acquisition condition of the policy? - ANSCoverage applies automatically for 90 days, but XYZ must promptly notify the insurer and pay the appropriate additional premium for coverage to continue beyond that time. This is an uncontrolled form that protects the shipper or receiver of goods against loss to goods in transit throughout the year. - ANSAnnual Transit Policy This is the authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer - ANSappointment This is the fundamental purpose Medicare Supplement policies. - ANSCover medical costs not payable under the Federal Medicare Program This optional provision states that if the insured becomes totally disabled, premiums are waived but the coverage remains in force. - ANSWaiver of Premium This policy is designed to provide indemnification to the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies and related items. - ANSHospitalization Expense Insurance This provision allows the insured to return the policy within a certain number of days and receive a full refund. - ANSFree Look This Tier is for employers with an experience modification factor equal or greater than 1.0, but not greater than 1.10. - ANSTier 2 This type of Bond guarantees the appearance of a defendant in court. - ANSBail Bond This type of bond is furnished by both the plaintiffs and defendants in litigation to protect the opposing party from loss in the event the principal fails to show a legal entitlement to the remedy sought. - ANSCourt Bond This type of coverage pays a flat amount per day for hospitalization, regardless of expenses or other insurance. - ANSHospital Indemnity Insurance Tier 1 rates are set at _________ above comparable voluntary market rates. - ANS25 percent To be eligible for Citizens, the applicant must certify they are unable to obtain and have not received an offer, for residential property insurance, from any authorized insurer that is less than ____________ percent higher than the price quoted through Citizens. - ANS15 To coordinate with the Computer Fraud insuring agreement, the Funds Transfer Fraud coverage provided by the Computer Fraud insuring agreement of the ISO Commercial Crime Coverage Form excludes - ANSLoss due to use of a computer to transfer money. To qualify for a general lines license, the applicant must be: - ANS18 years old 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 businessowners policy (BOP) - ANSMany coverages that would require separate policies or coverage parts in the commercial package program are either included or available as options. Under the Businessowners policy, mercantile, wholesaler, service or processing risks gross sales cannot exceed: - ANS$3,000,000 in gross sales What is the basic limit that applies to each occurrence for BI and PD under the CGL? - ANS$100,000 What is the coverage limit for nonowned trailers under Part D-Damage to Your Auto? - ANSNo coverage for nonowned trailers What is the dollar limit applicable to defense of the insured from claims or suits arising out of covered occurrences. - ANSNo dollar limit What is the maximum amount available for expediting expenses under the Boiler and Machinery coverage form? - ANS$25,000 What is the order for claim payments if all of the following applied: Medical Payment, Workers' Compensation, Personal Injury Protection? - ANSWC, PIP, MP What is the standard deductible for Citizens homeowners policies not including mobile homes? - ANS$1,000 all other perils/2% hurricane What is the standard deductible for Commercial Property insurance? - ANS$500 except hurricane What is the standard deductible for Employee Theft? - ANS$500 What satisfies the Florida Financial Responsibility Law for all situations other than DUI? - ANSLiability of 10/20/10. What type of bond guarantees all materials will be paid by the contractor upon completion? - ANSPayment Bond What type of bond guarantees if a bid is accepted, the bidder will satisfy further bonding requirements? - ANSBid Bond What type of bond guarantees performance by a person appointed by the court? - ANSFiduciary and Court Bonds What type of bond guarantees the principal will uphold the oath of office and faithfully perform the duties of office? - ANSPublic Official Bond What type of bond guarantees the principle will uphold the oath of office and faithfully perform the duties of office? - ANSPublic Official Bond What type of bond is required to reissue a stock certificate? - ANSLost Instrument Bond What type of Ocean Marine deductible has no payment until the loss reaches a certain limit? - ANSFranchise deductible When a worker is required to travel to another state and is injured in that other state, which one of the following is a typical consideration in determining which state's law applies for the purpose of determining workers compensation coverage? - ANSThe worker's place of residence When both the Condominium Association form and the Condominium Unit Owner apply to a loss, the claim is paid as follows: - ANSCondominium Association is primary When can the Coverage Extensions apply for Building and Personal Property Coverage Form? - ANSWhen the policy is being subject to 80% or more coinsurance When cargo is shipped __________, the buyer assumes responsibility for the cargo once goods reach the designated point. - ANSFree on Board (FOB) Which of the following is NOT a standard form that Citizens issues policies on? - ANSHO-5 Which of the following is not a valid Covered Auto Symbol in the Garage Coverage form? - ANSSymbol 28 - Garage Service Operation Vehicles Only Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability? - ANSThe 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who just got his license. Which of the following state-created markets provides coverage for employers who are unable to secure workers' compensation coverage? - ANSFWCJUA Which of the following would not be eligible under the Homeowners policy? - ANSOwner of a mobile home Which one of the following best describes one of the major differences between liability coverage provided by the typical businessowners policy (BOP) and the Insurance Services Office (ISO) Commercial General Liability (CGL) Coverage Form? - ANSHired and nonowned autos liability coverage is usually offered by BOPs, either as part of the form or by endorsement. Which one of the following best describes the "property not covered" provisions of the businessowners policy (BOP)? - ANSThe BOP has a relatively short list of 'property not covered' because the insureds eligible for a BOP are generally lower- risk, more homogenous types of businesses. Which one of the following best explains why the premium discount plan for workers compensation insurance provides an increasing credit for premiums in excess of a certain minimum? - ANSMany of the expenses of providing workers compensation insurance do not increase proportionately with increases in premium. Which one of the following claims would be covered under Coverage B - Personal and Advertising Injury Liability of the Commercial General Liability Coverage Form (CGL)? - ANSA store manager accuses a young man of shoplifting, apprehends him, and locks him in a storage room until the police arrive. When it is discovered that the young man is innocent, he files a claim against the store. Which one of the following has special limits of liability within Coverage C of the HO-3—Special Form (HO-3)? - ANSTheft of firearms Which one of the following is a covered cause of loss under the Causes of Loss— Basic Form? - ANSVolcanic action Which one of the following is a type of covered property under employee theft coverage? - ANSSecurities Which one of the following is an example of injury or damage arising from an occurrence that would be covered by the products and completed operations liability portion of the Commercial General Liability (CGL) Coverage Form? - ANSA defective gas range manufactured by the insured explodes causing injury. Which one of the following is an exclusion unique to the Causes of Loss—Special Form? - ANSSmog Which one of the following is correct with respect to the professional liability coverage available under the businessowners policy (BOP) and the Commercial General Liability (CGL) Coverage Form? - ANSAn important difference between the BOP's liability coverage and the CGL's is the availability of optional professional liability coverage endorsements for use with BOP. Which one of the following is not eligible for an HO-4? - ANSCondo unit owners Which one of the following statements is correct with regard to the Causes of Loss —Broad Form? - ANSThe weight of snow, ice, or sleet cause of loss does not cover damage to personal property in the open. Which one of the following statements is correct with respect to eligibility for coverage under a businessowners policy (BOP)? - ANSSome insurers have expanded the eligibility for their BOP programs to include restaurants and contractors. Which one of the following statements is correct with respect to Property Not Covered under the Building and Personal Property Coverage Form (BPP) - ANSOnly contraband or property in the course of illegal transportation or trade is totally uninsurable by endorsement or in other policies. Which one of the following statements is correct with respect to rating a businessowners policy (BOP)? - ANSIt is usually much simpler than rating a comparable commercial package policy. Which one of the following statements is correct with respect to the Building and Personal Property (BPP) Coverage Form? - ANSThe BPP lists several types of classes of property that do not qualify as covered property. Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP) deductible? - ANSThe insurer is not obligated to pay anything to the insured unless the loss exceeds the deductible. Which one of the following statements is correct with respect to the business personal property coverage provided by the Building and Personal Property Coverage Form (BPP)? - ANS'Your business personal property' specifically excludes labor, materials, or services furnished by the insured on the personal property of others. Which one of the following statements is correct with respect to the Commercial Property Conditions? - ANSThey apply to all coverage forms included in a commercial property coverage part, unless a coverage form contains a condition to the contrary. Which one of the following statements is correct with respect to the liability coverage available under a businessowners policy (BOP)? - ANSBoth ISO and AAIS offer BOP endorsements adding employee benefit liability coverage and employment practices liability coverage. Which one of the following statements is correct with respect to the liability coverage available under businessowners policies (BOPs)? - ANSCertain liability coverage options are not part of most BOP programs because the insureds that need them generally do not qualify for BOPs. Which one of the following statements is correct with respect to the liability coverage provided by the businessowners policy (BOP)? - ANSBOP liability coverage closely resembles the coverage provided by the occurrence version of the CGL coverage form. Which one of the following statements is correct with respect to the Newly Acquired or Constructed Property extension of coverage of the Building and Personal Property Coverage Form (BPP)? - ANSIt covers newly acquired buildings, provided the purpose of the newly acquired building is similar to the use of the building described in the declarations. Which one of the following statements is correct with respect to the Non-Owned Detached Trailers coverage extension of the Building and Personal Property Coverage Form (BPP)? - ANSIt permits the insured to extend 'your business personal property' to include trailers leased to expand office space or to provide additional storage or work areas. Which one of the following statements is correct with respect to workers compensation premium adjustment through dividend plans? - ANSUnder a sliding-