FLORIDA STATUTES 220 EXAM QUESTIONS AND
ANSWERS
All of the following are grounds for compulsory refusal, suspension, or
revocation EXCEPT:
A. Unlawfully rebating
B. Fraudulent submission of a Workers' Comp app
C. Lack of reasonably adequate knowledge
D. Soliciting insurance in other areas of the state - Answers :D. Soliciting insurance in
other areas of the state
How long is a temporary license good for?
A. 12 months
B. 6 months
C. 4 months
D. 2 months - Answers :B. 6 months
Which of the following is not a type of insurance that can be transacted
with a "general lines" insurance license?
A. Health insurance written by a carrier which is also
represented for P&C
B. Marine insurance
C. Life insurance written by carrier which is also
represented for P&C
D. Surety - Answers :C. Life insurance written by carrier which is also
represented for P&C
When authority is given to a licensee to transact or adjust insurance,
it is called:
A. Certificate of authority
B. Appointment
C. Attorney-in-fact
D. Binder - Answers :B. Appointment
How many hours of continuing education is a newly licensed agent
required to have in their first CE compliance period?
A. None in the first 2 years
B. 24
C. 14
D. 10 - Answers :B. 24
If an agent has been licensed for more than 6 years, how many hours of
continuing education are required every 2 years?
A. None
,B. 28
C. 20
D. 10 - Answers :C. 20
If a licensee has their appointment terminated, how long does he have to
be reappointed before his license is terminated?
A. 48 months
B. 18 months
C. 12 months
D. 24 months - Answers :A. 48 months
If a licensee has a change in name or address, how long does he have to
notify the Department of Insurance?
A. 12 months
B. 6 months
C. 90 days
D. 30 days - Answers :D. 30 days
Rebating is allowed under certain conditions. All of the following are
conditions EXCEPT:
A. Rebate is available to all insureds in the same
actuarial class
B. Rebate schedule is filed with the insurer
C. Rebate schedule does not exceed 5% of the premium
D. Rebate schedule must be kept for 5 years - Answers :C. Rebate schedule does not
exceed 5% of the premium
Willful deception of an insurance policy done by dissemination of
information is called:
A. Misrepresentation
B. Coercion
C. Twisting
D. Churning - Answers :A. Misrepresentation
When the majority of insurance written is for family members it is called:
A. Family insurance plan
B. Controlled business
C. Red lining
D. Joint underwriting - Answers :B. Controlled business
Which of the following is NOT a member of the Financial Service
Commission of Florida?
(A) The Attorney General.
(B) The Commissioner of Agriculture.
(C) The Chief Financial Officer.
(D) The Insurance Commissioner. - Answers :(D) The Insurance Commissioner.
, In Florida, what is the minimum age for entering into (purchasing) a
contract for insurance?
(A) 13
(B) 15
(C) 16
(D) 18 - Answers :(B) 15
The easy way to remember this is that people can begin driving at age 15.
All of the following are true of the Florida Surplus Lines Services Office
(FSLSO) EXCEPT:
(A) It collects taxes and service fees related to surplus lines insurance.
(B) It provides training and education to surplus lines agents.
(C) It oversees the surplus lines industry in the state.
(D) It was created by the Florida cabinet. - Answers :(D) It was created by the Florida
cabinet.
FSLSO, and its equivalent organization in most other states, was created by the
state legislature.
Which of the following can a licensed agent share commissions with?
A. A non-resident agent
B. A customer representative
C. A car dealer
D. A real estate agent - Answers :A. A non-resident agent
Jim and Glenda go to the local branch of their bank for a home loan.
The loan officer tells them that in order to qualify for the loan they must
purchase insurance from the bank. This is an example of
A. Misrepresentation
B. Coercion
C. Twisting
D. Rebating - Answers :B. Coercion
Knowingly using an incomplete comparison of insurance policies in order to
get the insured to buy a policy from you is called:
A. Misrepresentation
B. Coercion
C. Twisting
D. Rebating - Answers :C. Twisting
Charging an applicant for a specific ancillary coverage in addition to the
cost of the auto insurance coverage applied for without his consent is called:
A. Misrepresentation
B. Churning
C. Sliding
D. Coercion - Answers :C. Sliding
ANSWERS
All of the following are grounds for compulsory refusal, suspension, or
revocation EXCEPT:
A. Unlawfully rebating
B. Fraudulent submission of a Workers' Comp app
C. Lack of reasonably adequate knowledge
D. Soliciting insurance in other areas of the state - Answers :D. Soliciting insurance in
other areas of the state
How long is a temporary license good for?
A. 12 months
B. 6 months
C. 4 months
D. 2 months - Answers :B. 6 months
Which of the following is not a type of insurance that can be transacted
with a "general lines" insurance license?
A. Health insurance written by a carrier which is also
represented for P&C
B. Marine insurance
C. Life insurance written by carrier which is also
represented for P&C
D. Surety - Answers :C. Life insurance written by carrier which is also
represented for P&C
When authority is given to a licensee to transact or adjust insurance,
it is called:
A. Certificate of authority
B. Appointment
C. Attorney-in-fact
D. Binder - Answers :B. Appointment
How many hours of continuing education is a newly licensed agent
required to have in their first CE compliance period?
A. None in the first 2 years
B. 24
C. 14
D. 10 - Answers :B. 24
If an agent has been licensed for more than 6 years, how many hours of
continuing education are required every 2 years?
A. None
,B. 28
C. 20
D. 10 - Answers :C. 20
If a licensee has their appointment terminated, how long does he have to
be reappointed before his license is terminated?
A. 48 months
B. 18 months
C. 12 months
D. 24 months - Answers :A. 48 months
If a licensee has a change in name or address, how long does he have to
notify the Department of Insurance?
A. 12 months
B. 6 months
C. 90 days
D. 30 days - Answers :D. 30 days
Rebating is allowed under certain conditions. All of the following are
conditions EXCEPT:
A. Rebate is available to all insureds in the same
actuarial class
B. Rebate schedule is filed with the insurer
C. Rebate schedule does not exceed 5% of the premium
D. Rebate schedule must be kept for 5 years - Answers :C. Rebate schedule does not
exceed 5% of the premium
Willful deception of an insurance policy done by dissemination of
information is called:
A. Misrepresentation
B. Coercion
C. Twisting
D. Churning - Answers :A. Misrepresentation
When the majority of insurance written is for family members it is called:
A. Family insurance plan
B. Controlled business
C. Red lining
D. Joint underwriting - Answers :B. Controlled business
Which of the following is NOT a member of the Financial Service
Commission of Florida?
(A) The Attorney General.
(B) The Commissioner of Agriculture.
(C) The Chief Financial Officer.
(D) The Insurance Commissioner. - Answers :(D) The Insurance Commissioner.
, In Florida, what is the minimum age for entering into (purchasing) a
contract for insurance?
(A) 13
(B) 15
(C) 16
(D) 18 - Answers :(B) 15
The easy way to remember this is that people can begin driving at age 15.
All of the following are true of the Florida Surplus Lines Services Office
(FSLSO) EXCEPT:
(A) It collects taxes and service fees related to surplus lines insurance.
(B) It provides training and education to surplus lines agents.
(C) It oversees the surplus lines industry in the state.
(D) It was created by the Florida cabinet. - Answers :(D) It was created by the Florida
cabinet.
FSLSO, and its equivalent organization in most other states, was created by the
state legislature.
Which of the following can a licensed agent share commissions with?
A. A non-resident agent
B. A customer representative
C. A car dealer
D. A real estate agent - Answers :A. A non-resident agent
Jim and Glenda go to the local branch of their bank for a home loan.
The loan officer tells them that in order to qualify for the loan they must
purchase insurance from the bank. This is an example of
A. Misrepresentation
B. Coercion
C. Twisting
D. Rebating - Answers :B. Coercion
Knowingly using an incomplete comparison of insurance policies in order to
get the insured to buy a policy from you is called:
A. Misrepresentation
B. Coercion
C. Twisting
D. Rebating - Answers :C. Twisting
Charging an applicant for a specific ancillary coverage in addition to the
cost of the auto insurance coverage applied for without his consent is called:
A. Misrepresentation
B. Churning
C. Sliding
D. Coercion - Answers :C. Sliding
