Florida 2-20 Agents License Exam Questions with 100 verified 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 qualificaAon 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 RegulaAon? Submit rate filings and underwriAng rules for approval Which one of the following statements is correct? Contractors must usually provide evidence of liability insurance before a construcAon 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 organizaAon's premises and operaAons, 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 compensaAng accident vicAms. 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 characterisAcs of an insurable risk. Which characterisAc 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 acAviAes 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 Ame she has the burden of student loans. For someone in Sally's circumstances the most pracAcal risk management technique for dealing with her autorelated 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 producAve contribuAons to Society RetenAon is oZen used in combinaAon with insurance as a way of treaAng loss exposures. One of the major downsides of individuals using retenAon alone is The potenAal for financial ruin. The process of restoring an individual or organizaAon to a pre-loss financial condiAon is the process of IndemnificaAon SomeAmes 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 Ame due to an accident should purchase Disability insurance. Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability? The 1990 Chevy 22 days aZer you purchase it as an addiAonal 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 idenAcal 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? $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 acAvity create a public or livery conveyance situaAon that would preclude liability coverage under Keith's Personal Auto Policy (PAP)? No, because Keith is involved in a share-the-expense car pool.