Florida 2-20 General Lines Agent License Exam Questions | 100%
Correct Answers with Detailed Rationales (2026/2027 Edition)
SECTION 1: Florida Insurance Regulations and Statutes
Question 1
Under Florida Statute §624.404, which of the following is a permissible method for a
licensed 2-20 General Lines Agent to receive compensation for insurance transactions?
A. The agent may only accept commissions from the insurer and may never charge the
insured any fee.
B. The agent may accept commissions from the insurer and may also charge the
insured a consultation fee, provided the fee is fully disclosed in writing before the
transaction.
C. The agent may accept commissions from the insurer and may charge the insured a
fee only if the fee exceeds the commission amount.
D. The agent may accept commissions from the insurer and may charge the insured a
fee only for surplus lines transactions.
Correct Answer: B
Rationale: Florida Statute §624.404 permits licensed agents to receive compensation
from both the insurer (commissions) and the insured (fees), provided all fees are fully
disclosed in writing to the insured prior to the transaction. Option A is incorrect because
agents are not prohibited from charging fees. Option C is incorrect because there is no
statutory requirement that the fee exceed the commission. Option D is incorrect
because fee authority is not limited to surplus lines transactions.
Question 2
,A licensed 2-20 General Lines Agent in Florida wishes to place coverage with a
non-admitted insurer for a commercial property risk that has been declined by three
admitted insurers. Under Florida surplus lines law, which of the following is required?
A. The agent must be a licensed surplus lines agent (3-20) and must obtain a diligent
search affidavit documenting the declinations.
B. The agent may place the coverage directly without any additional license or
documentation because the 2-20 license includes surplus lines authority.
C. The agent must obtain a temporary surplus lines permit from the Florida Department
of Financial Services for each individual transaction.
D. The agent must refer the insured to an unlicensed intermediary who can place the
coverage in the non-admitted market.
Correct Answer: A
Rationale: Under Florida law, only a licensed surplus lines agent (3-20) may place
coverage with non-admitted insurers. A diligent search affidavit documenting
declinations from admitted insurers is required. Option B is incorrect because the 2-20
license does not include surplus lines authority. Option C is incorrect because there is
no temporary surplus lines permit for individual transactions. Option D is incorrect
because referring to unlicensed intermediaries violates Florida licensing laws.
Question 3
Which Florida statute governs the licensing requirements for insurance agents,
including the 2-20 General Lines Agent license, and is administered by the Florida
Department of Financial Services?
A. Florida Statutes Chapter 440 (Workers' Compensation)
B. Florida Statutes Chapter 624 (Insurance Code: Insurers and General Provisions)
C. Florida Statutes Chapter 626 (Insurance Code: Insurance Agents, Agencies, and
Adjusters)
D. Florida Statutes Chapter 627 (Insurance Code: Insurance Contracts)
Correct Answer: C
,Rationale: Florida Statutes Chapter 626 specifically governs the licensing, appointment,
and conduct of insurance agents, agencies, and adjusters. Option A governs workers'
compensation. Option B governs general insurance provisions and insurer
requirements. Option D governs insurance contract requirements and policy provisions.
Question 4
Under Florida law, an insurance agent who knowingly makes a false, incomplete, or
misleading statement in connection with an insurance transaction for the purpose of
inducing a person to purchase insurance commits which of the following offenses?
A. A civil infraction punishable only by a fine not exceeding $500.
B. A misdemeanor of the first degree under Florida Statute §817.234.
C. A felony of the third degree under Florida Statute §817.234 if the value exceeds $300.
D. A felony of the second degree regardless of the value involved.
Correct Answer: C
Rationale: Under Florida Statute §817.234, insurance fraud involving false statements to
induce insurance transactions is a felony of the third degree if the value exceeds $300.
Option A is incorrect because it is not merely a civil infraction. Option B is incorrect
because it is not classified as a misdemeanor when the value threshold is met. Option D
is incorrect because it is not automatically a second-degree felony regardless of value.
Question 5
A Florida 2-20 General Lines Agent must complete continuing education requirements
to maintain licensure. Under current Florida Administrative Code rules, how many hours
of continuing education are required during each biennial license period?
A. 10 hours, including 3 hours of ethics
B. 20 hours, including 5 hours of law and ethics
C. 24 hours, including 5 hours of law and ethics update
D. 30 hours, including 6 hours of ethics and 6 hours of Florida-specific law
, Correct Answer: C
Rationale: Florida requires 24 hours of continuing education every two years, including 5
hours of law and ethics update. Option A is insufficient. Option B's hour requirement is
incorrect. Option D overstates the requirement.
Question 6
Under Florida Statute §626.112, which of the following activities requires a person to
hold a valid 2-20 General Lines Agent license?
A. A salaried employee of an insurance company who merely takes information for
claims processing and does not sell, solicit, or negotiate insurance.
B. A person who sells, solicits, or negotiates property, casualty, surety, and health
insurance on behalf of an insurance company in Florida.
C. A licensed attorney who incidentally provides insurance advice as part of legal
representation.
D. A trust officer of a bank who provides general information about insurance products
available through the bank's affiliated agency.
Correct Answer: B
Rationale: Florida Statute §626.112 requires a license for any person who sells, solicits,
or negotiates insurance. Option A describes an activity exempt from licensing. Option C
is exempt as incidental to legal practice. Option D describes a referral activity that does
not constitute selling, soliciting, or negotiating.
Question 7
The Florida Insurance Guaranty Association (FIGA) provides protection to policyholders
when an admitted insurer becomes insolvent. Under Florida law, which of the following
claims is FIGA obligated to pay?
A. All claims without any monetary limit, including punitive damages and attorney fees.
B. Claims up to the policy limits or statutory caps, whichever is less, excluding punitive
damages and attorney fees.
Correct Answers with Detailed Rationales (2026/2027 Edition)
SECTION 1: Florida Insurance Regulations and Statutes
Question 1
Under Florida Statute §624.404, which of the following is a permissible method for a
licensed 2-20 General Lines Agent to receive compensation for insurance transactions?
A. The agent may only accept commissions from the insurer and may never charge the
insured any fee.
B. The agent may accept commissions from the insurer and may also charge the
insured a consultation fee, provided the fee is fully disclosed in writing before the
transaction.
C. The agent may accept commissions from the insurer and may charge the insured a
fee only if the fee exceeds the commission amount.
D. The agent may accept commissions from the insurer and may charge the insured a
fee only for surplus lines transactions.
Correct Answer: B
Rationale: Florida Statute §624.404 permits licensed agents to receive compensation
from both the insurer (commissions) and the insured (fees), provided all fees are fully
disclosed in writing to the insured prior to the transaction. Option A is incorrect because
agents are not prohibited from charging fees. Option C is incorrect because there is no
statutory requirement that the fee exceed the commission. Option D is incorrect
because fee authority is not limited to surplus lines transactions.
Question 2
,A licensed 2-20 General Lines Agent in Florida wishes to place coverage with a
non-admitted insurer for a commercial property risk that has been declined by three
admitted insurers. Under Florida surplus lines law, which of the following is required?
A. The agent must be a licensed surplus lines agent (3-20) and must obtain a diligent
search affidavit documenting the declinations.
B. The agent may place the coverage directly without any additional license or
documentation because the 2-20 license includes surplus lines authority.
C. The agent must obtain a temporary surplus lines permit from the Florida Department
of Financial Services for each individual transaction.
D. The agent must refer the insured to an unlicensed intermediary who can place the
coverage in the non-admitted market.
Correct Answer: A
Rationale: Under Florida law, only a licensed surplus lines agent (3-20) may place
coverage with non-admitted insurers. A diligent search affidavit documenting
declinations from admitted insurers is required. Option B is incorrect because the 2-20
license does not include surplus lines authority. Option C is incorrect because there is
no temporary surplus lines permit for individual transactions. Option D is incorrect
because referring to unlicensed intermediaries violates Florida licensing laws.
Question 3
Which Florida statute governs the licensing requirements for insurance agents,
including the 2-20 General Lines Agent license, and is administered by the Florida
Department of Financial Services?
A. Florida Statutes Chapter 440 (Workers' Compensation)
B. Florida Statutes Chapter 624 (Insurance Code: Insurers and General Provisions)
C. Florida Statutes Chapter 626 (Insurance Code: Insurance Agents, Agencies, and
Adjusters)
D. Florida Statutes Chapter 627 (Insurance Code: Insurance Contracts)
Correct Answer: C
,Rationale: Florida Statutes Chapter 626 specifically governs the licensing, appointment,
and conduct of insurance agents, agencies, and adjusters. Option A governs workers'
compensation. Option B governs general insurance provisions and insurer
requirements. Option D governs insurance contract requirements and policy provisions.
Question 4
Under Florida law, an insurance agent who knowingly makes a false, incomplete, or
misleading statement in connection with an insurance transaction for the purpose of
inducing a person to purchase insurance commits which of the following offenses?
A. A civil infraction punishable only by a fine not exceeding $500.
B. A misdemeanor of the first degree under Florida Statute §817.234.
C. A felony of the third degree under Florida Statute §817.234 if the value exceeds $300.
D. A felony of the second degree regardless of the value involved.
Correct Answer: C
Rationale: Under Florida Statute §817.234, insurance fraud involving false statements to
induce insurance transactions is a felony of the third degree if the value exceeds $300.
Option A is incorrect because it is not merely a civil infraction. Option B is incorrect
because it is not classified as a misdemeanor when the value threshold is met. Option D
is incorrect because it is not automatically a second-degree felony regardless of value.
Question 5
A Florida 2-20 General Lines Agent must complete continuing education requirements
to maintain licensure. Under current Florida Administrative Code rules, how many hours
of continuing education are required during each biennial license period?
A. 10 hours, including 3 hours of ethics
B. 20 hours, including 5 hours of law and ethics
C. 24 hours, including 5 hours of law and ethics update
D. 30 hours, including 6 hours of ethics and 6 hours of Florida-specific law
, Correct Answer: C
Rationale: Florida requires 24 hours of continuing education every two years, including 5
hours of law and ethics update. Option A is insufficient. Option B's hour requirement is
incorrect. Option D overstates the requirement.
Question 6
Under Florida Statute §626.112, which of the following activities requires a person to
hold a valid 2-20 General Lines Agent license?
A. A salaried employee of an insurance company who merely takes information for
claims processing and does not sell, solicit, or negotiate insurance.
B. A person who sells, solicits, or negotiates property, casualty, surety, and health
insurance on behalf of an insurance company in Florida.
C. A licensed attorney who incidentally provides insurance advice as part of legal
representation.
D. A trust officer of a bank who provides general information about insurance products
available through the bank's affiliated agency.
Correct Answer: B
Rationale: Florida Statute §626.112 requires a license for any person who sells, solicits,
or negotiates insurance. Option A describes an activity exempt from licensing. Option C
is exempt as incidental to legal practice. Option D describes a referral activity that does
not constitute selling, soliciting, or negotiating.
Question 7
The Florida Insurance Guaranty Association (FIGA) provides protection to policyholders
when an admitted insurer becomes insolvent. Under Florida law, which of the following
claims is FIGA obligated to pay?
A. All claims without any monetary limit, including punitive damages and attorney fees.
B. Claims up to the policy limits or statutory caps, whichever is less, excluding punitive
damages and attorney fees.
