FLORIDA 2-20 STATE EXAM
PRACTICE ACTUAL EXAM 2026/2027
| Florida Insurance Requirements |
Verified Q&A | Pass Guaranteed - A+
Graded
SECTION 1: FLORIDA INSURANCE LAWS AND
REGULATIONS (35 Questions)
Q1: Under Florida law, what is the minimum prelicensing education requirement for a 2-20
General Lines Agent license?
A. 20 hours of classroom instruction
B. 40 hours of approved prelicensing education [CORRECT]
C. 60 hours including 20 hours of ethics
D. 80 hours of combined classroom and self-study
Correct Answer: B
Rationale: Florida Statute 626.741 requires all applicants for a 2-20 General Lines Agent
license to complete 40 hours of approved prelicensing education before taking the state
examination. This includes specific instruction on Florida insurance laws and regulations.
Florida Note: The 40-hour requirement must be completed through a Department-approved
education provider, and the certificate is valid for 4 years from completion date.
Q2: The Florida Insurance Guaranty Association (FIGA) provides protection to policyholders
when:
A. Their insurer becomes insolvent [CORRECT]
B. Their agent commits errors and omissions
,C. The policyholder fails to pay premiums
D. Natural disasters exceed reinsurance limits
Correct Answer: A
Rationale: Under Florida Statute 631.57, FIGA exists to protect policyholders, claimants, and
creditors of insolvent insurance companies licensed to do business in Florida. FIGA covers
unpaid claims up to statutory limits when an insurer becomes insolvent.
Florida Note: FIGA coverage limits are $300,000 for most claims, with higher limits available
for workers' compensation and specific circumstances.
Q3: Which of the following is TRUE regarding Florida's Continuing Education requirements for
2-20 license holders?
A. 24 hours biennially, including 5 hours of ethics/law [CORRECT]
B. 24 hours annually, including 10 hours of ethics
C. 40 hours biennially with no specific ethics requirement
D. 20 hours every three years, including 3 hours of ethics
Correct Answer: A
Rationale: Florida Administrative Code 69B-228.200 requires 2-20 General Lines Agents to
complete 24 hours of approved continuing education every two years, including 5 hours
specifically dedicated to ethics and Florida insurance law.
Florida Note: Licensees must complete CE requirements by the last day of their birth month
in renewal years.
Q4: Under Florida's Personal Injury Protection (PIP) law, what is the statutory limit for medical
benefits per person?
A. $5,000
B. $10,000 [CORRECT]
C. $25,000
D. $50,000
,Correct Answer: B
Rationale: Florida Statute 627.736 mandates that every motor vehicle insurance policy issued
in Florida must provide Personal Injury Protection (PIP) benefits of $10,000 per person for
medical expenses, regardless of fault.
Florida Note: The $10,000 limit applies per person, per accident, and benefits are paid without
regard to fault (no-fault system).
Q5: What is the statutory death benefit under Florida's PIP coverage?
A. $1,000
B. $2,500 [CORRECT]
C. $5,000
D. $10,000
Correct Answer: B
Rationale: Florida Statute 627.736(1)(b) provides that in addition to the $10,000 medical
benefits, PIP includes a $2,500 death benefit per person for death-related expenses such as
funeral and burial costs.
Florida Note: This death benefit is separate from and in addition to the $10,000 medical limit.
Q6: Under Florida law, how long does an insurance company have to notify the Department of
Financial Services after terminating an agent's appointment?
A. 10 days
B. 15 days
C. 30 days [CORRECT]
D. 45 days
Correct Answer: C
Rationale: Florida Statute 626.112(7) requires insurers to notify the Department of Financial
Services within 30 days of terminating an agent's appointment, stating the reasons for
termination.
, Florida Note: The insurer must also provide written notice to the agent within the same
timeframe.
Q7: Which entity regulates insurance rates and forms in Florida?
A. Florida Department of Financial Services
B. Florida Office of Insurance Regulation (OIR) [CORRECT]
C. Florida Insurance Guaranty Association
D. National Association of Insurance Commissioners
Correct Answer: B
Rationale: The Florida Office of Insurance Regulation (OIR) has authority under Florida Statute
624.3081 to regulate insurance rates, policy forms, and market conduct for insurers operating
in Florida.
Florida Note: While the Department of Financial Services handles agent licensing and
consumer protection, OIR specifically handles rate and form regulation.
Q8: What is the Florida Hurricane Catastrophe Fund (FHCF)?
A. A private reinsurance company for Florida insurers
B. A state-managed fund providing reinsurance to Florida property insurers [CORRECT]
C. A federal disaster relief program
D. A premium subsidy program for low-income homeowners
Correct Answer: B
Rationale: Established under Florida Statute 215.555, the Florida Hurricane Catastrophe Fund
is a state-managed fund that provides affordable reinsurance to Florida residential property
insurers to ensure capacity in the hurricane-exposed market.
Florida Note: The FHCF is funded by assessments on most property and casualty insurance
policies in Florida if necessary to pay claims.
Q9: Under Florida law, what is the statute of limitations for filing a lawsuit on an insurance
contract?
PRACTICE ACTUAL EXAM 2026/2027
| Florida Insurance Requirements |
Verified Q&A | Pass Guaranteed - A+
Graded
SECTION 1: FLORIDA INSURANCE LAWS AND
REGULATIONS (35 Questions)
Q1: Under Florida law, what is the minimum prelicensing education requirement for a 2-20
General Lines Agent license?
A. 20 hours of classroom instruction
B. 40 hours of approved prelicensing education [CORRECT]
C. 60 hours including 20 hours of ethics
D. 80 hours of combined classroom and self-study
Correct Answer: B
Rationale: Florida Statute 626.741 requires all applicants for a 2-20 General Lines Agent
license to complete 40 hours of approved prelicensing education before taking the state
examination. This includes specific instruction on Florida insurance laws and regulations.
Florida Note: The 40-hour requirement must be completed through a Department-approved
education provider, and the certificate is valid for 4 years from completion date.
Q2: The Florida Insurance Guaranty Association (FIGA) provides protection to policyholders
when:
A. Their insurer becomes insolvent [CORRECT]
B. Their agent commits errors and omissions
,C. The policyholder fails to pay premiums
D. Natural disasters exceed reinsurance limits
Correct Answer: A
Rationale: Under Florida Statute 631.57, FIGA exists to protect policyholders, claimants, and
creditors of insolvent insurance companies licensed to do business in Florida. FIGA covers
unpaid claims up to statutory limits when an insurer becomes insolvent.
Florida Note: FIGA coverage limits are $300,000 for most claims, with higher limits available
for workers' compensation and specific circumstances.
Q3: Which of the following is TRUE regarding Florida's Continuing Education requirements for
2-20 license holders?
A. 24 hours biennially, including 5 hours of ethics/law [CORRECT]
B. 24 hours annually, including 10 hours of ethics
C. 40 hours biennially with no specific ethics requirement
D. 20 hours every three years, including 3 hours of ethics
Correct Answer: A
Rationale: Florida Administrative Code 69B-228.200 requires 2-20 General Lines Agents to
complete 24 hours of approved continuing education every two years, including 5 hours
specifically dedicated to ethics and Florida insurance law.
Florida Note: Licensees must complete CE requirements by the last day of their birth month
in renewal years.
Q4: Under Florida's Personal Injury Protection (PIP) law, what is the statutory limit for medical
benefits per person?
A. $5,000
B. $10,000 [CORRECT]
C. $25,000
D. $50,000
,Correct Answer: B
Rationale: Florida Statute 627.736 mandates that every motor vehicle insurance policy issued
in Florida must provide Personal Injury Protection (PIP) benefits of $10,000 per person for
medical expenses, regardless of fault.
Florida Note: The $10,000 limit applies per person, per accident, and benefits are paid without
regard to fault (no-fault system).
Q5: What is the statutory death benefit under Florida's PIP coverage?
A. $1,000
B. $2,500 [CORRECT]
C. $5,000
D. $10,000
Correct Answer: B
Rationale: Florida Statute 627.736(1)(b) provides that in addition to the $10,000 medical
benefits, PIP includes a $2,500 death benefit per person for death-related expenses such as
funeral and burial costs.
Florida Note: This death benefit is separate from and in addition to the $10,000 medical limit.
Q6: Under Florida law, how long does an insurance company have to notify the Department of
Financial Services after terminating an agent's appointment?
A. 10 days
B. 15 days
C. 30 days [CORRECT]
D. 45 days
Correct Answer: C
Rationale: Florida Statute 626.112(7) requires insurers to notify the Department of Financial
Services within 30 days of terminating an agent's appointment, stating the reasons for
termination.
, Florida Note: The insurer must also provide written notice to the agent within the same
timeframe.
Q7: Which entity regulates insurance rates and forms in Florida?
A. Florida Department of Financial Services
B. Florida Office of Insurance Regulation (OIR) [CORRECT]
C. Florida Insurance Guaranty Association
D. National Association of Insurance Commissioners
Correct Answer: B
Rationale: The Florida Office of Insurance Regulation (OIR) has authority under Florida Statute
624.3081 to regulate insurance rates, policy forms, and market conduct for insurers operating
in Florida.
Florida Note: While the Department of Financial Services handles agent licensing and
consumer protection, OIR specifically handles rate and form regulation.
Q8: What is the Florida Hurricane Catastrophe Fund (FHCF)?
A. A private reinsurance company for Florida insurers
B. A state-managed fund providing reinsurance to Florida property insurers [CORRECT]
C. A federal disaster relief program
D. A premium subsidy program for low-income homeowners
Correct Answer: B
Rationale: Established under Florida Statute 215.555, the Florida Hurricane Catastrophe Fund
is a state-managed fund that provides affordable reinsurance to Florida residential property
insurers to ensure capacity in the hurricane-exposed market.
Florida Note: The FHCF is funded by assessments on most property and casualty insurance
policies in Florida if necessary to pay claims.
Q9: Under Florida law, what is the statute of limitations for filing a lawsuit on an insurance
contract?
