FLORIDA 2-20 AGENTS LICENSE
2026 EXAM REAL EXAM
COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS
()|A+ GRADE
The Florida Surplus Service Lines Office (FSLSO) was created to - ANSWER-oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
ANSWER-Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - ANSWER-
Pays insurance claims
Once license, you have how long to obtain an appointment? - ANSWER-48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
ANSWER-Submit rate filings and underwriting rules for approval
,Which one of the following statements is correct? - ANSWER-Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
From a risk management viewpoint, insurance is used to - ANSWER-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 - ANSWER-Commercial general liability insurance.
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.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through - ANSWER-
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? - ANSWER-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 -
ANSWER-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 - ANSWER-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 - ANSWER-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 -
ANSWER-The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - ANSWER-Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - ANSWER-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 - ANSWER-Disability insurance.
, 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.
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? - ANSWER-$0
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)? - ANSWER-No, because Keith is involved in a share-the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments
coverage, - ANSWER-Each insurer pays its pro rata share based on the proportion
that its limit of liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: - ANSWER-Limit of Liability
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
2026 EXAM REAL EXAM
COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS
()|A+ GRADE
The Florida Surplus Service Lines Office (FSLSO) was created to - ANSWER-oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
ANSWER-Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - ANSWER-
Pays insurance claims
Once license, you have how long to obtain an appointment? - ANSWER-48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
ANSWER-Submit rate filings and underwriting rules for approval
,Which one of the following statements is correct? - ANSWER-Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
From a risk management viewpoint, insurance is used to - ANSWER-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 - ANSWER-Commercial general liability insurance.
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.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through - ANSWER-
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? - ANSWER-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 -
ANSWER-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 - ANSWER-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 - ANSWER-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 -
ANSWER-The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - ANSWER-Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - ANSWER-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 - ANSWER-Disability insurance.
, 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.
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? - ANSWER-$0
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)? - ANSWER-No, because Keith is involved in a share-the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments
coverage, - ANSWER-Each insurer pays its pro rata share based on the proportion
that its limit of liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: - ANSWER-Limit of Liability
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
