Fall Semester 2026–2027 Florida Insurance Exam Updated 2026 | 190+
Questions and Answers | Florida Insurance Licensing Exam Study Guide,
Practice Exam, Comprehensive Review, Exam Prep Test Bank, Property
and Casualty Insurance, Life Insurance, Health Insurance, Insurance
Regulations, Ethics, Risk Management, Policy Provisions, Claims Handling,
Detailed Rationales and Complete Revision Material
Question 1: Under Florida law, what is the maximum penalty an insurer can face for
a willful violation of the Insurance Code that results in significant financial harm to
a policyholder?
A. A fine of $10,000 per violation
B. A fine of $20,000 per violation
C. A fine of $40,000 per violation
D. A fine of $60,000 per violation
CORRECT ANSWER: C. A fine of $40,000 per violation
Rationale: Under Florida Statutes, the Office of Insurance Regulation can impose
administrative fines. For willful violations that cause significant financial harm, the
maximum fine is $40,000 per violation, which is higher than the standard $10,000 or
$20,000 penalties.
Question 2: An insurance agent in Florida is required to report a change of address
to the Department of Financial Services within what timeframe?
A. 10 days
B. 20 days
C. 30 days
D. 60 days
CORRECT ANSWER: C. 30 days
Rationale: Florida law mandates that licensed agents report any change in their
residential, business, or mailing address to the DFS within 30 days to ensure accurate
records and communication.
Question 3: Which of the following is NOT an unfair trade practice under Florida's
Insurance Code?
A. Rebating
B. Twisting
C. Defamation
D. Underwriting based on actuarial data
CORRECT ANSWER: D. Underwriting based on actuarial data
Rationale: Underwriting based on actuarial data is a legitimate practice. Rebating,
twisting, and defamation are explicitly prohibited as unfair trade practices under Florida
Statute 626.9541.
,Question 4: In Florida, what is the minimum capital and surplus requirement for a
domestic property and casualty insurance company?
A. $1 million
B. $2 million
C. $4 million
D. $6 million
CORRECT ANSWER: C. $4 million
Rationale: Florida law requires domestic property and casualty insurers to maintain a
minimum capital and surplus of $4 million to ensure financial solvency and the ability to
pay claims.
Question 5: How long is the initial license term for a newly licensed insurance
agent in Florida?
A. 1 year
B. 2 years
C. 3 years
D. 4 years
CORRECT ANSWER: B. 2 years
Rationale: The initial Florida insurance agent license is valid for two years, after which it
must be renewed with proof of continuing education.
Question 6: The Florida Insurance Guaranty Association (FIGA) provides coverage
for policyholders of insolvent insurers. What is the maximum coverage limit for a
single property claim?
A. $100,000
B. $200,000
C. $300,000
D. $500,000
CORRECT ANSWER: C. $300,000
Rationale: FIGA covers covered claims up to $300,000 per property claim, as outlined
in Florida law to protect residents from insurer insolvency.
Question 7: Which Florida entity is responsible for investigating and prosecuting
insurance fraud?
A. Office of Insurance Regulation (OIR)
B. Department of Financial Services (DFS), Division of Insurance Fraud
C. Florida Association of Insurance Agents (FAIA)
D. Florida Department of Health
CORRECT ANSWER: B. Department of Financial Services (DFS), Division of
Insurance Fraud
,Rationale: The DFS Division of Insurance Fraud is the state agency tasked with
investigating and prosecuting insurance fraud, working with law enforcement to combat
fraudulent activities.
Question 8: Under Florida law, an insurance agent must report a conviction of a
felony to the DFS within what timeframe?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
CORRECT ANSWER: C. 30 days
Rationale: Florida law requires agents to report any felony conviction within 30 days to
the DFS to maintain licensure standards.
Question 9: What is the minimum amount of Errors and Omissions (E&O) insurance
coverage required for a licensed Florida insurance agent?
A. $100,000
B. $250,000
C. $500,000
D. There is no state-mandated minimum
CORRECT ANSWER: D. There is no state-mandated minimum
Rationale: Florida does not mandate a specific E&O coverage amount for insurance
agents, though many agencies require it; the state leaves this to the discretion of the
licensee.
Question 10: In Florida, what is the statute of limitations for bringing a civil action
against an insurer for bad faith?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
CORRECT ANSWER: D. 5 years
Rationale: Florida law generally allows a 5-year statute of limitations for bad faith
actions against insurers, starting from the date the cause of action accrues, often after
the underlying claim is resolved.
Question 11: Which of the following is considered a "controlled business"
limitation in Florida?
A. Writing more than 25% of one's annual premium in a single insurance company
B. Writing more than 50% of one's annual premium on the agent's own interests or
family
, C. Selling insurance to out-of-state residents
D. Charging different premiums based on gender
CORRECT ANSWER: B. Writing more than 50% of one's annual premium on the
agent's own interests or family
Rationale: Florida restricts agents from writing over 50% of their annual premium on
their own property, life, or health, or that of their immediate family, to prevent conflicts
of interest.
Question 12: Under Florida's "No-Fault" auto insurance law, what is the minimum
amount of Personal Injury Protection (PIP) coverage required per person?
A. $5,000
B. $10,000
C. $15,000
D. $20,000
CORRECT ANSWER: B. $10,000
Rationale: Florida law mandates a minimum of $10,000 in PIP coverage per person to
cover medical expenses and lost wages, regardless of fault in an auto accident.
Question 13: The Florida Office of Insurance Regulation (OIR) has the authority to
do all of the following EXCEPT:
A. Approve rate filings
B. Issue insurance licenses
C. Examine insurer financial solvency
D. Enforce market conduct standards
CORRECT ANSWER: B. Issue insurance licenses
Rationale: The OIR regulates rates, solvency, and market conduct. Licensing is handled
by the Department of Financial Services (DFS), not the OIR.
Question 14: How often must a Florida insurer file a detailed financial statement
with the OIR?
A. Annually
B. Semi-annually
C. Quarterly
D. Monthly
CORRECT ANSWER: C. Quarterly
Rationale: Florida insurers are required to submit quarterly financial statements to the
OIR to ensure ongoing solvency and regulatory compliance.
Question 15: Under Florida law, an agent who knowingly makes a false statement in
an insurance application could be charged with:
Questions and Answers | Florida Insurance Licensing Exam Study Guide,
Practice Exam, Comprehensive Review, Exam Prep Test Bank, Property
and Casualty Insurance, Life Insurance, Health Insurance, Insurance
Regulations, Ethics, Risk Management, Policy Provisions, Claims Handling,
Detailed Rationales and Complete Revision Material
Question 1: Under Florida law, what is the maximum penalty an insurer can face for
a willful violation of the Insurance Code that results in significant financial harm to
a policyholder?
A. A fine of $10,000 per violation
B. A fine of $20,000 per violation
C. A fine of $40,000 per violation
D. A fine of $60,000 per violation
CORRECT ANSWER: C. A fine of $40,000 per violation
Rationale: Under Florida Statutes, the Office of Insurance Regulation can impose
administrative fines. For willful violations that cause significant financial harm, the
maximum fine is $40,000 per violation, which is higher than the standard $10,000 or
$20,000 penalties.
Question 2: An insurance agent in Florida is required to report a change of address
to the Department of Financial Services within what timeframe?
A. 10 days
B. 20 days
C. 30 days
D. 60 days
CORRECT ANSWER: C. 30 days
Rationale: Florida law mandates that licensed agents report any change in their
residential, business, or mailing address to the DFS within 30 days to ensure accurate
records and communication.
Question 3: Which of the following is NOT an unfair trade practice under Florida's
Insurance Code?
A. Rebating
B. Twisting
C. Defamation
D. Underwriting based on actuarial data
CORRECT ANSWER: D. Underwriting based on actuarial data
Rationale: Underwriting based on actuarial data is a legitimate practice. Rebating,
twisting, and defamation are explicitly prohibited as unfair trade practices under Florida
Statute 626.9541.
,Question 4: In Florida, what is the minimum capital and surplus requirement for a
domestic property and casualty insurance company?
A. $1 million
B. $2 million
C. $4 million
D. $6 million
CORRECT ANSWER: C. $4 million
Rationale: Florida law requires domestic property and casualty insurers to maintain a
minimum capital and surplus of $4 million to ensure financial solvency and the ability to
pay claims.
Question 5: How long is the initial license term for a newly licensed insurance
agent in Florida?
A. 1 year
B. 2 years
C. 3 years
D. 4 years
CORRECT ANSWER: B. 2 years
Rationale: The initial Florida insurance agent license is valid for two years, after which it
must be renewed with proof of continuing education.
Question 6: The Florida Insurance Guaranty Association (FIGA) provides coverage
for policyholders of insolvent insurers. What is the maximum coverage limit for a
single property claim?
A. $100,000
B. $200,000
C. $300,000
D. $500,000
CORRECT ANSWER: C. $300,000
Rationale: FIGA covers covered claims up to $300,000 per property claim, as outlined
in Florida law to protect residents from insurer insolvency.
Question 7: Which Florida entity is responsible for investigating and prosecuting
insurance fraud?
A. Office of Insurance Regulation (OIR)
B. Department of Financial Services (DFS), Division of Insurance Fraud
C. Florida Association of Insurance Agents (FAIA)
D. Florida Department of Health
CORRECT ANSWER: B. Department of Financial Services (DFS), Division of
Insurance Fraud
,Rationale: The DFS Division of Insurance Fraud is the state agency tasked with
investigating and prosecuting insurance fraud, working with law enforcement to combat
fraudulent activities.
Question 8: Under Florida law, an insurance agent must report a conviction of a
felony to the DFS within what timeframe?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
CORRECT ANSWER: C. 30 days
Rationale: Florida law requires agents to report any felony conviction within 30 days to
the DFS to maintain licensure standards.
Question 9: What is the minimum amount of Errors and Omissions (E&O) insurance
coverage required for a licensed Florida insurance agent?
A. $100,000
B. $250,000
C. $500,000
D. There is no state-mandated minimum
CORRECT ANSWER: D. There is no state-mandated minimum
Rationale: Florida does not mandate a specific E&O coverage amount for insurance
agents, though many agencies require it; the state leaves this to the discretion of the
licensee.
Question 10: In Florida, what is the statute of limitations for bringing a civil action
against an insurer for bad faith?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
CORRECT ANSWER: D. 5 years
Rationale: Florida law generally allows a 5-year statute of limitations for bad faith
actions against insurers, starting from the date the cause of action accrues, often after
the underlying claim is resolved.
Question 11: Which of the following is considered a "controlled business"
limitation in Florida?
A. Writing more than 25% of one's annual premium in a single insurance company
B. Writing more than 50% of one's annual premium on the agent's own interests or
family
, C. Selling insurance to out-of-state residents
D. Charging different premiums based on gender
CORRECT ANSWER: B. Writing more than 50% of one's annual premium on the
agent's own interests or family
Rationale: Florida restricts agents from writing over 50% of their annual premium on
their own property, life, or health, or that of their immediate family, to prevent conflicts
of interest.
Question 12: Under Florida's "No-Fault" auto insurance law, what is the minimum
amount of Personal Injury Protection (PIP) coverage required per person?
A. $5,000
B. $10,000
C. $15,000
D. $20,000
CORRECT ANSWER: B. $10,000
Rationale: Florida law mandates a minimum of $10,000 in PIP coverage per person to
cover medical expenses and lost wages, regardless of fault in an auto accident.
Question 13: The Florida Office of Insurance Regulation (OIR) has the authority to
do all of the following EXCEPT:
A. Approve rate filings
B. Issue insurance licenses
C. Examine insurer financial solvency
D. Enforce market conduct standards
CORRECT ANSWER: B. Issue insurance licenses
Rationale: The OIR regulates rates, solvency, and market conduct. Licensing is handled
by the Department of Financial Services (DFS), not the OIR.
Question 14: How often must a Florida insurer file a detailed financial statement
with the OIR?
A. Annually
B. Semi-annually
C. Quarterly
D. Monthly
CORRECT ANSWER: C. Quarterly
Rationale: Florida insurers are required to submit quarterly financial statements to the
OIR to ensure ongoing solvency and regulatory compliance.
Question 15: Under Florida law, an agent who knowingly makes a false statement in
an insurance application could be charged with:
