FLORIDA 2-20 AGENTS LICENSE EXAM
Questions and Answers
1.The Florida Surplus Service Lines Office (FSLSO) was created to
Answer oversee the surplus lines industry in the state
2.Which of the following is NOT a required qualification for a General
Lines Agent
Answer Seeking the license only to write controlled business
3.The Department of Financial Services performs the following, EXCEPT
Answer -
Pays insurance claims
4.Once license, you have how long to obtain an appointment?
Answer 48 months
5.Which of the following is NOT a duty of the Office of Insurance Regulation?-
Answer Submit rate filings and underwriting rules for approval
6.Which one of the following statements is correct?
Answer Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
,7.From a risk management viewpoint, insurance is used to
Answer Transfer the cost of losses.
8.Liability coverage for loss exposures arising from a business
organization's premises and operations, its products, or its completed work
is typically provided by
Answer Commercial general liability insurance.
9.Which one of the following statements is correct regarding the benefits
provided by insurance?
Answer Insurance helps reduce the financial burden to society by
compensating accident victims.
10.Insurance is not the only risk management transfer technique. When cir-
cumstances are appropriate, transfer can be accomplished through
Answer Noninsur- ance transfer techniques.
11.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?
Answer Large number of similar exposure units
,12.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
Answer Personal liability insurance.
13.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
Answer Risk transfer.
14.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
Answer Society
15.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
Answer The potential for financial ruin.
, 16.The process of restoring an individual or organization to a pre-loss
finan- cial condition is the process of
Answer Indemnification
17.Sometimes the existence of insurance encourages losses. The result
of this phenomenon is that it
Answer Increases the total cost of insurance
18.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
Answer Disability insurance.
19.Which of the following is/are not a "your covered auto" under a
Personal Auto Policy for Liability?
Answer The 1990 Chevy 22 days after you purchase it as an additional
vehicle for your son who just got his license.
20.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?
Questions and Answers
1.The Florida Surplus Service Lines Office (FSLSO) was created to
Answer oversee the surplus lines industry in the state
2.Which of the following is NOT a required qualification for a General
Lines Agent
Answer Seeking the license only to write controlled business
3.The Department of Financial Services performs the following, EXCEPT
Answer -
Pays insurance claims
4.Once license, you have how long to obtain an appointment?
Answer 48 months
5.Which of the following is NOT a duty of the Office of Insurance Regulation?-
Answer Submit rate filings and underwriting rules for approval
6.Which one of the following statements is correct?
Answer Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
,7.From a risk management viewpoint, insurance is used to
Answer Transfer the cost of losses.
8.Liability coverage for loss exposures arising from a business
organization's premises and operations, its products, or its completed work
is typically provided by
Answer Commercial general liability insurance.
9.Which one of the following statements is correct regarding the benefits
provided by insurance?
Answer Insurance helps reduce the financial burden to society by
compensating accident victims.
10.Insurance is not the only risk management transfer technique. When cir-
cumstances are appropriate, transfer can be accomplished through
Answer Noninsur- ance transfer techniques.
11.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?
Answer Large number of similar exposure units
,12.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
Answer Personal liability insurance.
13.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
Answer Risk transfer.
14.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
Answer Society
15.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
Answer The potential for financial ruin.
, 16.The process of restoring an individual or organization to a pre-loss
finan- cial condition is the process of
Answer Indemnification
17.Sometimes the existence of insurance encourages losses. The result
of this phenomenon is that it
Answer Increases the total cost of insurance
18.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
Answer Disability insurance.
19.Which of the following is/are not a "your covered auto" under a
Personal Auto Policy for Liability?
Answer The 1990 Chevy 22 days after you purchase it as an additional
vehicle for your son who just got his license.
20.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?
