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Florida Property & Casualty Insurance, Glossary for
220 License, Florida 2-20 Agents License Exam
Questions With Verified Answer 2025
The FAJUA is composed of: - Correct Answer All companies licensed to write auto insurance in Florida The FAJUA is composed of: - Correct Answer All companies licensed to write auto insurance in Florida A coverage that is similar to premises and operations coverage in the Commercial General Liability Policy covering bodily injury and property damage liability for aviation risks is defined as: - Correct Answer Airport and Air Meet Liability A coverage that is similar to premises and operations coverage in the Commercial General Liability Policy covering bodily injury and property damage liability for aviation risks is defined as: - Correct Answer Airport and Air Meet Liability Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000. Insured losses include $25,000 furniture, clothing and other ordinary personal property plus $5,000 damage to guns and $5,000 damage to jewelry, furs. Insured will recover: - Correct Answer $29,000 less any deductible Homeowners HO-3 policy - severe theft loss. Coverage A limit is $100,000. Insured losses include $25,000 furniture, clothing and other ordinary personal property plus $5,000 damage to guns and $5,000 damage to jewelry, furs. Insured will recover: - Correct Answer $29,000 less any deductible Each of the following divisions falls under The Department of Financial Services EXCEPT? - Correct Answer The Division of Consumer Activities Each of the following divisions falls under The Department of Financial Services EXCEPT? - Correct Answer The Division of Consumer Activities Which of the following provides for loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance, or destruction? - Correct Answer Outside the Premises Which of the following provides for loss of money and securities outside the premises in the care, custody and control of a messenger or armored car service resulting from theft, disappearance, or destruction? - Correct Answer Outside the Premises What is the standard All Perils deductible in the Commercial Property Policy? - Correct Answer $
What is the standard All Perils deductible in the Commercial Property Policy? - Correct Answer $ Which of the following best describes a "Controlled" Inland Marine Form? - Correct Answer Standard provisions form is written according to filed rules and rates Which of the following best describes a "Controlled" Inland Marine Form? - Correct Answer Standard provisions form is written according to filed rules and rates Under a Personal Articles Floater, which of the following is covered as valued property?
- Correct Answer Fine Arts Under a Personal Articles Floater, which of the following is covered as valued property?
- Correct Answer Fine Arts Under the Dwelling Program forms, vandalism is not covered after the building has been vacant for how many days? - Correct Answer 60 days Under the Dwelling Program forms, vandalism is not covered after the building has been vacant for how many days? - Correct Answer 60 days Under a Commercial General Liability Contract, how many days notice of cancellation must the insurer provide for non-payment of premium? - Correct Answer 10 Under a Commercial General Liability Contract, how many days notice of cancellation must the insurer provide for non-payment of premium? - Correct Answer 10 Under Additional Coverages, how much applies for loss assessments imposed by an association against the insured for damage to property caused by a peril insured against under Coverage A? - Correct Answer $1, Under Additional Coverages, how much applies for loss assessments imposed by an association against the insured for damage to property caused by a peril insured against under Coverage A? - Correct Answer $1, The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT: - Correct Answer Loss Settlement Contract The following are basic characteristics of a Property or Liability Insurance Contract EXCEPT: - Correct Answer Loss Settlement Contract Rob has PIP with a $1,000 deductible. He has an auto accident causing $6,000 in medical bills. How much will his PIP pay? - Correct Answer $4,
- $6,000 - $1,000 deductible = $5,000 x 80% = $4,
All of the following are located on a Boiler and Machinery Coverage form EXCEPT: - Correct Answer Exhibits The Motor Truck Cargo Policy: - Correct Answer Insures a truck carrier for liability arising out of the transportation of cargo. The Motor Truck Cargo Policy: - Correct Answer Insures a truck carrier for liability arising out of the transportation of cargo. All of the following are types of property that can be covered under a Personal Articles Floater EXCEPT: - Correct Answer Firearms All of the following are types of property that can be covered under a Personal Articles Floater EXCEPT: - Correct Answer Firearms What is the standard deductible for Employee Theft coverage? - Correct Answer $ What is the standard deductible for Employee Theft coverage? - Correct Answer $ The Forgery or Alteration coverage under a Businessowners Policy is: - Correct Answer $2, The Forgery or Alteration coverage under a Businessowners Policy is: - Correct Answer $2, How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period? - Correct Answer 24 How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period? - Correct Answer 24 Which of the following is NOT true regarding sole proprietors and partners in the non- construction industry as they relate to Workers Compensation? - Correct Answer A maximum of three can elect to be covered Which of the following is NOT true regarding sole proprietors and partners in the non- construction industry as they relate to Workers Compensation? - Correct Answer A maximum of three can elect to be covered Which of the following is not a way to purchase Uninsured Motorist Coverage? - Correct Answer More than your bodily injury limits Which of the following is not a way to purchase Uninsured Motorist Coverage? - Correct Answer More than your bodily injury limits
Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not actually install them until Tuesday. What kind of policy will they need to cover any loss to the cabinets? - Correct Answer Installation Floater Camden's Wood Shop will be dropping off new cabinets at a jobsite on Monday, but will not actually install them until Tuesday. What kind of policy will they need to cover any loss to the cabinets? - Correct Answer Installation Floater This Hospital Form applies with "medical incident" defined as an act or omission in furnishing of professional services related to making of a blood donation under the supervision of the insured: - Correct Answer Blood Banks This Hospital Form applies with "medical incident" defined as an act or omission in furnishing of professional services related to making of a blood donation under the supervision of the insured: - Correct Answer Blood Banks Which of the following is not a valid deductible for hurricane in the Dwelling program? - Correct Answer 1% Which of the following is not a valid deductible for hurricane in the Dwelling program? - Correct Answer 1% If a loss occurs under the Building and Personal Property Coverage Form with the optional replacement cost provision, how long does the insured have to give intent to replace the damaged item in order to receive replacement cost adjustment? - Correct Answer 180 If a loss occurs under the Building and Personal Property Coverage Form with the optional replacement cost provision, how long does the insured have to give intent to replace the damaged item in order to receive replacement cost adjustment? - Correct Answer 180 Which of the following is NOT a common deductible in an Aircraft Hull Policy? - Correct Answer 2% Which of the following is NOT a common deductible in an Aircraft Hull Policy? - Correct Answer 2% How many insuring agreements are there in a Commercial Crime Policy? - Correct Answer 7 How many insuring agreements are there in a Commercial Crime Policy? - Correct Answer 7 Barry was driving his car in Florida where he has lived all his life when he is hit by an at- fault driver. Barry has $10,000 in medical bills, basic PIP with a $1,000 deductible and
Established in 1973, this association was created for applicants who are unable to obtain automobile insurance in the private market: - Correct Answer FAJUA The typical coverage for rental reimbursement on a Mechanical Breakdown policy is: - Correct Answer $15 per day/$75 maximum The typical coverage for rental reimbursement on a Mechanical Breakdown policy is: - Correct Answer $15 per day/$75 maximum Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license? - Correct Answer Life insurance written by carrier who is also represented for Property and Casualty Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license? - Correct Answer Life insurance written by carrier who is also represented for Property and Casualty Another name for a "Cost Plus" plan is: - Correct Answer Retrospective Rating Plan Another name for a "Cost Plus" plan is: - Correct Answer Retrospective Rating Plan What amount applies to Business Personal Property other than "Money and Securities," "Valuable Papers and Records" and "Accounts Receivable" while off premises? - Correct Answer $5, What amount applies to Business Personal Property other than "Money and Securities," "Valuable Papers and Records" and "Accounts Receivable" while off premises? - Correct Answer $5, This program provides comprehensive health services to members for a prepaid fixed fee with a goal of preventive activity: - Correct Answer HMO This program provides comprehensive health services to members for a prepaid fixed fee with a goal of preventive activity: - Correct Answer HMO The Retroactive Date: - Correct Answer Establishes the date when claims made coverage begins The Retroactive Date: - Correct Answer Establishes the date when claims made coverage begins This endorsement will extend liability insurance and any physical damage insurance to cover the insured while driving a non-owned vehicle: - Correct Answer Individual Named Insured
This endorsement will extend liability insurance and any physical damage insurance to cover the insured while driving a non-owned vehicle: - Correct Answer Individual Named Insured Trey has a collection of rare foreign coins, which are stolen. His Crime Policy provides coverage for these coins as part of his business property. The collectible value of the coins is $5,000; the monetary value of the coins is $300. Assuming there is no deductible, how much will Trey's policy pay? - Correct Answer $
- Money is valued at its face value Trey has a collection of rare foreign coins, which are stolen. His Crime Policy provides coverage for these coins as part of his business property. The collectible value of the coins is $5,000; the monetary value of the coins is $300. Assuming there is no deductible, how much will Trey's policy pay? - Correct Answer $
- Money is valued at its face value Which of the following is not an eligibility requirement for the RCBAP Flood Policy? - Correct Answer 25% mercantile floor area Which of the following is not an eligibility requirement for the RCBAP Flood Policy? - Correct Answer 25% mercantile floor area All of the following are covered under Personal and Advertising Injury EXCEPT: - Correct Answer Bodily Injury All of the following are covered under Personal and Advertising Injury EXCEPT: - Correct Answer Bodily Injury This bond is required of investment companies guaranteeing against misrepresentation of Securities: - Correct Answer Blue Sky Bond This bond is required of investment companies guaranteeing against misrepresentation of Securities: - Correct Answer Blue Sky Bond All of the following coverages can be added to the Business Auto Coverage Form by separate endorseĀ¬ment EXCEPT: - Correct Answer Liability All of the following coverages can be added to the Business Auto Coverage Form by separate endorseĀ¬ment EXCEPT: - Correct Answer Liability Which of the following is NOT a benefit under PIP? - Correct Answer Replacement services paid at 10% Which of the following is NOT a benefit under PIP? - Correct Answer Replacement services paid at 10%
has $12,000 in medical bills and Jim has $20,000 in medical bills. How much will PIP pay for Jim? - Correct Answer $10, $20,000 x 80% = $16,000 HOWEVER, PIP only pays a maximum of $10, Which of the following roof types will be eligible for a Wind Mitigation discount? - Correct Answer Hip Which of the following roof types will be eligible for a Wind Mitigation discount? - Correct Answer Hip An amount is stated up front, and in the event of a loss, the insured will receive that same amount, regardless of any external factors. This is defined as: - Correct Answer Valued Policy Law An amount is stated up front, and in the event of a loss, the insured will receive that same amount, regardless of any external factors. This is defined as: - Correct Answer Valued Policy Law All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: - Correct Answer Soliciting insurance in other areas of the state All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: - Correct Answer Soliciting insurance in other areas of the state An Excess Policy that provides the same coverages, provisions, and exclusions as the underlying policy is called: - Correct Answer Follow Form Excess An Excess Policy that provides the same coverages, provisions, and exclusions as the underlying policy is called: - Correct Answer Follow Form Excess All of the following are features of Major Medical Insurance EXCEPT? - Correct Answer Has limited coverage for most expenses All of the following are features of Major Medical Insurance EXCEPT? - Correct Answer Has limited coverage for most expenses What are the two coverage forms offered in the Businessowners program? - Correct Answer Basic Form/Special Form What are the two coverage forms offered in the Businessowners program? - Correct Answer Basic Form/Special Form Jenny and Sue are riding with Jim in Jim's car. All individuals are Florida residents who own cars and carry basic PIP with no deductible. Jenny has $4,000 in medical bills, Sue
has $12,000 in medical bills, and Jim has $20,000 in medical bills. How much will PIP pay for Jenny? - Correct Answer $3,
- $4,000 (no deductible is mentioned so we do not need to subtract anything from the $4,000) x 80% = $3, Jenny and Sue are riding with Jim in Jim's car. All individuals are Florida residents who own cars and carry basic PIP with no deductible. Jenny has $4,000 in medical bills, Sue has $12,000 in medical bills, and Jim has $20,000 in medical bills. How much will PIP pay for Jenny? - Correct Answer $3,
- $4,000 (no deductible is mentioned so we do not need to subtract anything from the $4,000) x 80% = $3, Who is responsible for enforcing and administering all aspects of Rating? - Correct Answer National Council on Compensation Insurance Who is responsible for enforcing and administering all aspects of Rating? - Correct Answer National Council on Compensation Insurance After two years from the date of issue only fraudulent misstatements in the application can be used to void the policy or deny a claim. This is defined as: - Correct Answer Limitations on insurer defenses After two years from the date of issue only fraudulent misstatements in the application can be used to void the policy or deny a claim. This is defined as: - Correct Answer Limitations on insurer defenses Which of the following is an example of an instrumentality move transportation or communication? - Correct Answer Television tower Which of the following is an example of an instrumentality move transportation or communication? - Correct Answer Television tower One night while driving home from dinner, Doug hits an animal on a dark stretch of road. He is carrying Part D-damage to your auto, on his vehicle with a $250 deductible for other than collision coverage and a $500 deductible for collision. The damage to his vehicle is $3,250. How much will his policy pay? - Correct Answer $3, One night while driving home from dinner, Doug hits an animal on a dark stretch of road. He is carrying Part D-damage to your auto, on his vehicle with a $250 deductible for other than collision coverage and a $500 deductible for collision. The damage to his vehicle is $3,250. How much will his policy pay? - Correct Answer $3, Any claim for which the Umbrella Policy is primary is subject to a deductible known as the: - Correct Answer Self-Insured Retention
Which of the following is NOT a characteristic of the Small Business Boiler and Machinery Policy? - Correct Answer Business interruption is 25% of the limit but not an additional amount Which of the following is NOT a characteristic of the Small Business Boiler and Machinery Policy? - Correct Answer Business interruption is 25% of the limit but not an additional amount In the Business Income Coverage Form, the Maximum Period of Indemnity option gives coverage for how many days? - Correct Answer 120 days In the Business Income Coverage Form, the Maximum Period of Indemnity option gives coverage for how many days? - Correct Answer 120 days All licensed residential property insurance companies in Florida must accept this form when reporting mitigation features: - Correct Answer Uniform Mitigation Verification Inspection Form All licensed residential property insurance companies in Florida must accept this form when reporting mitigation features: - Correct Answer Uniform Mitigation Verification Inspection Form ABC Health Insurer does not renew your policy since renewals are being declined on all similar policies within the state of Florida. What type of policy is this? - Correct Answer Conditionally Renewable ABC Health Insurer does not renew your policy since renewals are being declined on all similar policies within the state of Florida. What type of policy is this? - Correct Answer Conditionally Renewable All of the following are rating elements for the Business Auto Coverage Form EXCEPT:
- Correct Answer Age of the driver(s) All of the following are rating elements for the Business Auto Coverage Form EXCEPT:
- Correct Answer Age of the driver(s) When the insured transfers his rights against the other party to his insurer it is defined as: - Correct Answer Subrogation When the insured transfers his rights against the other party to his insurer it is defined as: - Correct Answer Subrogation Which of the following is NOT covered under an Aircraft Liability Policy? - Correct Answer Cargo Liability
Which of the following is NOT covered under an Aircraft Liability Policy? - Correct Answer Cargo Liability Which of the following is NOT true of corporate officers as they relate to Workers Compensation? - Correct Answer No more than 3 officers can be exempted in non- construction operations Which of the following is NOT true of corporate officers as they relate to Workers Compensation? - Correct Answer No more than 3 officers can be exempted in non- construction operations All of the following are considered Employment EXCEPT: - Correct Answer A farm with six full-time employees A small farm with five or less full-time employees is not considered an employment (General Lines Agent Study Manual, Unit 9, Employers and Employees). All of the following are considered Employment EXCEPT: - Correct Answer A farm with six full-time employees A small farm with five or less full-time employees is not considered an employment (General Lines Agent Study Manual, Unit 9, Employers and Employees). A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as: - Correct Answer Self-Insured A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as: - Correct Answer Self-Insured All of the following are used to rate Business Automobile Policies EXCEPT: - Correct Answer Maintenance All of the following are used to rate Business Automobile Policies EXCEPT: - Correct Answer Maintenance If an insured elects a lump sum benefit instead of a monthly disability benefit it is defined as: - Correct Answer Elective Indemnity If an insured elects a lump sum benefit instead of a monthly disability benefit it is defined as: - Correct Answer Elective Indemnity Part Three of a Workers Compensation Policy defines: - Correct Answer Other States Part Three of a Workers Compensation Policy defines: - Correct Answer Other States
The Building and Personal Property Coverage Form contains a vacancy provision that suspends losses from certain perils and reduces losses from other perils. How many days must the building be vacant for the provision to apply? - Correct Answer 60 days All of the following are considered Contract Bonds EXCEPT? - Correct Answer Infrastructure Bond All of the following are considered Contract Bonds EXCEPT? - Correct Answer Infrastructure Bond Pays for physical damage to the business' vehicle resulting from contact with another object: - Correct Answer Collision Pays for physical damage to the business' vehicle resulting from contact with another object: - Correct Answer Collision All of the following are ways that liability limits can be expressed EXCEPT: - Correct Answer Average Limit All of the following are ways that liability limits can be expressed EXCEPT: - Correct Answer Average Limit Which of the following does not trigger the Florida Financial Responsibility Law? - Correct Answer An accident where the police are called Which of the following does not trigger the Florida Financial Responsibility Law? - Correct Answer An accident where the police are called What is the purpose of the Extended Period of indemnity option in the Business Income Coverage Form? - Correct Answer Increases the 30 day Extended Period of Indemnity grant up to 730 days What is the purpose of the Extended Period of indemnity option in the Business Income Coverage Form? - Correct Answer Increases the 30 day Extended Period of Indemnity grant up to 730 days Who guarantees repayment of a bond? - Correct Answer Indemnitor Who guarantees repayment of a bond? - Correct Answer Indemnitor The coverage which pays the cost of temporary repairs and to fasten permanent repairs or replacement is defined as: - Correct Answer Expediting expense coverage The coverage which pays the cost of temporary repairs and to fasten permanent repairs or replacement is defined as: - Correct Answer Expediting expense coverage
Which of the following best describes the Business Income Coverage provided under the Businessowners policy? - Correct Answer Actual loss sustained up to 12 months with no dollar limit Which of the following best describes the Business Income Coverage provided under the Businessowners policy? - Correct Answer Actual loss sustained up to 12 months with no dollar limit A peril that is unique to policies covering dry cleaners is defined as: - Correct Answer Confusion of Goods A peril that is unique to policies covering dry cleaners is defined as: - Correct Answer Confusion of Goods Which of the following guarantees the faithful performance of a person appointed by a court or named in a will? - Correct Answer Fiduciary Bond Which of the following guarantees the faithful performance of a person appointed by a court or named in a will? - Correct Answer Fiduciary Bond Who is responsible for reviewing company rules and rates to be sure the law is being followed? - Correct Answer Office of Insurance Regulation Who is responsible for reviewing company rules and rates to be sure the law is being followed? - Correct Answer Office of Insurance Regulation Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license? - Correct Answer Life insurance written by carrier who is also represented for Property and Casualty Which of the following is not a type of insurance that can be transacted with a "General Lines" insurance license? - Correct Answer Life insurance written by carrier who is also represented for Property and Casualty If a licensee has their appointment terminated, how long does he or she have to be reappointed before his license is terminated? - Correct Answer 48 months If a licensee has their appointment terminated, how long does he or she have to be reappointed before his license is terminated? - Correct Answer 48 months Charging an applicant for a specific ancillary coverage in addition to the cost of the automobile insurance coverage applied for without his consent is defined as: - Correct Answer Sliding
If a licensee has a change in name or address, how long does he have to notify the Department of Insurance? - Correct Answer 30 days When the majority of insurance written is for family members it is defined as: - Correct Answer Controlled Business When the majority of insurance written is for family members it is defined as: - Correct Answer Controlled Business If an agent had been licensed for more than 6 years, how many hours of continuing education are required every 2 years? - Correct Answer 20 If an agent had been licensed for more than 6 years, how many hours of continuing education are required every 2 years? - Correct Answer 20 How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period? - Correct Answer 24 How many hours of continuing education is a newly licensed agent required to have for their first Continuing Education compliance period? - Correct Answer 24 When authority is given to a licensee to transact or adjust insurance it is defined as: - Correct Answer Appointment When authority is given to a licensee to transact or adjust insurance it is defined as: - Correct Answer Appointment An insurance company formed in London is defined as: - Correct Answer Alien An insurance company formed in London is defined as: - Correct Answer Alien An insurance company formed under the laws of another state is defined as: - Correct Answer Foreign An insurance company formed under the laws of another state is defined as: - Correct Answer Foreign All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: - Correct Answer Soliciting insurance in other areas of the state All of the following are grounds for compulsory refusal, suspension, or revocation EXCEPT: - Correct Answer Soliciting insurance in other areas of the state A licensed insurance agent may share commissions with which of the following? - Correct Answer Non-Resident Agent
Customer Representative Life Insurance Agen A licensed insurance agent may share commissions with which of the following? - Correct Answer Non-Resident Agent Customer Representative Life Insurance Agen A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as: - Correct Answer Self-Insured A plan in which the employer would, from its own funds, bear the financial responsibility for the covered health claims of its own participating employees is defined as: - Correct Answer Self-Insured An employee welfare benefit plan or other arrangement that is established or maintained to provide one or more of various insurance benefits (including health insurance) to the employees of two or more employers is defined as: - Correct Answer MEWA An employee welfare benefit plan or other arrangement that is established or maintained to provide one or more of various insurance benefits (including health insurance) to the employees of two or more employers is defined as: - Correct Answer MEWA Which of the following is NOT a possible consequence for Aiding and Abetting an Unauthorized Insurer: - Correct Answer Conviction of a second-degree felony Which of the following is NOT a possible consequence for Aiding and Abetting an Unauthorized Insurer: - Correct Answer Conviction of a second-degree felony An insurance company formed in Berlin, Germany is defined as: - Correct Answer Alien An insurance company formed in Berlin, Germany is defined as: - Correct Answer Alien Which of the following roof types will be eligible for a Wind Mitigation discount? - Correct Answer Hip
