Florida 2-20 Agents License Exam
Questions
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
Questions
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
