Florida 2-20 Agents License Exam
Questions And Correct Answers
The Florida Surplus Service Lines Office (FSLSO) was created to
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent:
Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT:
Pays insurance claims
Once license, you have how long to obtain an appointment?
48 months
Which of the following is NOT a duty of the Office of Insurance Regulation?
Submit rate filings and underwriting rules for approval
,Which one of the following statements is correct?
Contractors must usually provide evidence of liability insurance before a
construction contract is granted.
From a risk management viewpoint, insurance is used to
Transfer the cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically provided
by
Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided
by insurance?
Insurance helps reduce the financial burden to society by compensating accident
victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through
Noninsurance transfer techniques.
,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?
Large number of similar exposure units
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
Personal liability insurance.
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
Risk transfer.
, 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
Society
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
The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of
Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it
Increases the total cost of insurance
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
Disability insurance.
Questions And Correct Answers
The Florida Surplus Service Lines Office (FSLSO) was created to
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent:
Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT:
Pays insurance claims
Once license, you have how long to obtain an appointment?
48 months
Which of the following is NOT a duty of the Office of Insurance Regulation?
Submit rate filings and underwriting rules for approval
,Which one of the following statements is correct?
Contractors must usually provide evidence of liability insurance before a
construction contract is granted.
From a risk management viewpoint, insurance is used to
Transfer the cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically provided
by
Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided
by insurance?
Insurance helps reduce the financial burden to society by compensating accident
victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through
Noninsurance transfer techniques.
,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?
Large number of similar exposure units
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
Personal liability insurance.
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
Risk transfer.
, 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
Society
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
The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of
Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it
Increases the total cost of insurance
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
Disability insurance.
