Florida 2-20 Agents License Exam
Questions well answered already
passed
oversee the surplus lines industry in the state - correct answer ✔✔The Florida Surplus Service
Lines Office (FSLSO) was created to
Seeking the license only to write controlled business - correct answer ✔✔Which of the
following is NOT a required qualification for a General Lines Agent:
Pays insurance claims - correct answer ✔✔The Department of Financial Services performs the
following, EXCEPT:
48 months - correct answer ✔✔Once license, you have how long to obtain an appointment?
Submit rate filings and underwriting rules for approval - correct answer ✔✔Which of the
following is NOT a duty of the Office of Insurance Regulation?
Contractors must usually provide evidence of liability insurance before a construction contract is
granted. - correct answer ✔✔Which one of the following statements is correct?
Transfer the cost of losses. - correct answer ✔✔From a risk management viewpoint, insurance is
used to
Commercial general liability insurance. - correct answer ✔✔Liability coverage for loss exposures
arising from a business organization's premises and operations, its products, or its completed
work is typically provided by
,Insurance helps reduce the financial burden to society by compensating accident victims. -
correct answer ✔✔Which one of the following statements is correct regarding the benefits
provided by insurance?
Noninsurance transfer techniques. - correct answer ✔✔Insurance is not the only risk
management transfer technique. When circumstances are appropriate, transfer can be
accomplished through
Large number of similar exposure units - correct answer ✔✔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?
Personal liability insurance. - correct answer ✔✔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
Risk transfer. - correct answer ✔✔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
Society - correct answer ✔✔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
The potential for financial ruin. - correct answer ✔✔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
,Indemnification - correct answer ✔✔The process of restoring an individual or organization to a
pre-loss financial condition is the process of
Increases the total cost of insurance - correct answer ✔✔Sometimes the existence of insurance
encourages losses. The result of this phenomenon is that it
Disability insurance. - correct answer ✔✔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
The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who just got
his license. - correct answer ✔✔Which of the following is/are not a "your covered auto" under a
Personal Auto Policy for Liability?
$0 - correct answer ✔✔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?
No, because Keith is involved in a share-the-expense car pool. - correct answer ✔✔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)?
Each insurer pays its pro rata share based on the proportion that its limit of liability bears to the
total of applicable limits. - correct answer ✔✔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,
, Limit of Liability - correct answer ✔✔The Insuring Agreement in Part A - Liability Coverage of
the Personal Auto Policy contains descriptions of all of the following EXCEPT:
$1,700 - correct answer ✔✔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 and
steals the following items: •$500 cash•$50,000 stock certificates. Ignoring any deductible that
may apply, how much, if any, will Tom and Martha's insurer pay for the loss of the items?
Establishes the process for determining the amount to be paid for a property loss. - correct
answer ✔✔Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition
Excluded. - correct answer ✔✔Property described in Coverages A, B, and C of an HO-3—Special
Form (HO-3) that is destroyed, confiscated, or seized by order of any governmental or public
authority is
Adam and the insurer will each select an appraiser, and the two appraisers will submit their
differences to an impartial umpire who will reach a resolution. - correct answer ✔✔Adam and
his insurer disagree on the amount of a loss covered by his homeowners policy. Adam wants the
insurer to pay $10,000 toward the loss. The insurer's representative feels that the loss should be
valued at $5,000. How could the appraisal process resolve this situation?
Theft of firearms - correct answer ✔✔Which one of the following has special limits of liability
within Coverage C of the HO-3—Special Form (HO-3)?
Excluded because the power failure occurred off the residence premises. - correct answer ✔✔A
storm causes power lines to break ten miles from the insured's premises. The loss of electrical
power causes food in the insured's freezer to thaw and spoil. Coverage for this loss is
Governmental Action exclusion. - correct answer ✔✔If law enforcement officials seize an
insured's personal computer to search for files that might be related to a crime, the insured
Questions well answered already
passed
oversee the surplus lines industry in the state - correct answer ✔✔The Florida Surplus Service
Lines Office (FSLSO) was created to
Seeking the license only to write controlled business - correct answer ✔✔Which of the
following is NOT a required qualification for a General Lines Agent:
Pays insurance claims - correct answer ✔✔The Department of Financial Services performs the
following, EXCEPT:
48 months - correct answer ✔✔Once license, you have how long to obtain an appointment?
Submit rate filings and underwriting rules for approval - correct answer ✔✔Which of the
following is NOT a duty of the Office of Insurance Regulation?
Contractors must usually provide evidence of liability insurance before a construction contract is
granted. - correct answer ✔✔Which one of the following statements is correct?
Transfer the cost of losses. - correct answer ✔✔From a risk management viewpoint, insurance is
used to
Commercial general liability insurance. - correct answer ✔✔Liability coverage for loss exposures
arising from a business organization's premises and operations, its products, or its completed
work is typically provided by
,Insurance helps reduce the financial burden to society by compensating accident victims. -
correct answer ✔✔Which one of the following statements is correct regarding the benefits
provided by insurance?
Noninsurance transfer techniques. - correct answer ✔✔Insurance is not the only risk
management transfer technique. When circumstances are appropriate, transfer can be
accomplished through
Large number of similar exposure units - correct answer ✔✔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?
Personal liability insurance. - correct answer ✔✔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
Risk transfer. - correct answer ✔✔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
Society - correct answer ✔✔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
The potential for financial ruin. - correct answer ✔✔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
,Indemnification - correct answer ✔✔The process of restoring an individual or organization to a
pre-loss financial condition is the process of
Increases the total cost of insurance - correct answer ✔✔Sometimes the existence of insurance
encourages losses. The result of this phenomenon is that it
Disability insurance. - correct answer ✔✔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
The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who just got
his license. - correct answer ✔✔Which of the following is/are not a "your covered auto" under a
Personal Auto Policy for Liability?
$0 - correct answer ✔✔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?
No, because Keith is involved in a share-the-expense car pool. - correct answer ✔✔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)?
Each insurer pays its pro rata share based on the proportion that its limit of liability bears to the
total of applicable limits. - correct answer ✔✔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,
, Limit of Liability - correct answer ✔✔The Insuring Agreement in Part A - Liability Coverage of
the Personal Auto Policy contains descriptions of all of the following EXCEPT:
$1,700 - correct answer ✔✔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 and
steals the following items: •$500 cash•$50,000 stock certificates. Ignoring any deductible that
may apply, how much, if any, will Tom and Martha's insurer pay for the loss of the items?
Establishes the process for determining the amount to be paid for a property loss. - correct
answer ✔✔Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition
Excluded. - correct answer ✔✔Property described in Coverages A, B, and C of an HO-3—Special
Form (HO-3) that is destroyed, confiscated, or seized by order of any governmental or public
authority is
Adam and the insurer will each select an appraiser, and the two appraisers will submit their
differences to an impartial umpire who will reach a resolution. - correct answer ✔✔Adam and
his insurer disagree on the amount of a loss covered by his homeowners policy. Adam wants the
insurer to pay $10,000 toward the loss. The insurer's representative feels that the loss should be
valued at $5,000. How could the appraisal process resolve this situation?
Theft of firearms - correct answer ✔✔Which one of the following has special limits of liability
within Coverage C of the HO-3—Special Form (HO-3)?
Excluded because the power failure occurred off the residence premises. - correct answer ✔✔A
storm causes power lines to break ten miles from the insured's premises. The loss of electrical
power causes food in the insured's freezer to thaw and spoil. Coverage for this loss is
Governmental Action exclusion. - correct answer ✔✔If law enforcement officials seize an
insured's personal computer to search for files that might be related to a crime, the insured
