FLORIDA 2-20 GENERAL LINES AGENT
LICENSE FINAL EXAM COMPREHENSIVE
STUDY GUIDE 2026
Pass your Florida insurance licensing exam on the first attempt with this
definitive, high-yield study resource engineered for the 2-20 General Lines
Agent credential. This targeted preparation guide provides deep-dive
structural coverage of property and casualty insurance principles, Florida
state statutes, regulatory updates, and commercial liability frameworks.
Perfect for aspiring agents and insurance professionals, this
comprehensive package ensures you master complex policy language and
state insurance codes to eliminate testing anxiety and secure your career
path.
1. A Florida insurance agent is reviewing a commercial property policy that
contains an 80% coinsurance clause. The building has a replacement cost of
$500,000, but the insured carries only $300,000 in coverage. A $100,000
partial loss occurs. How much will the insurer pay (ignoring any
deductible)?**
A) $75,000
B) $100,000
C) $80,000
D) $60,000
**Correct Answer: A – $75,000***
*Rationale: The coinsurance penalty formula is (Insurance carried ÷
Insurance required) × Loss. Insurance required = 80% × $500,000 =
$400,000. ($300,000 ÷ $400,000) × $100,000 = 0.75 × $100,000 = $75,000.
The insured absorbs the remaining $25,000 as a coinsurance penalty.
,2. A Florida homeowners policy (HO-3) provides open-peril coverage
on the dwelling. Which of the following losses would be excluded
unless specifically endorsed?
A) Damage from a windstorm
B) Damage from a fire
C) Damage from a flood
D) Damage from hail
Correct Answer: C – Damage from a flood
Rationale: Flood is excluded under standard homeowners policies and
requires a separate flood insurance policy, typically through the NFIP or a
private insurer. Windstorm, fire, and hail are covered perils under an HO-3.
3. A Florida businessowner is purchasing a Businessowners Policy
(BOP). Which of the following coverages is typically included in a BOP?
A) Workers' compensation
B) Commercial general liability
C) Professional liability
D) Commercial auto liability
Correct Answer: B – Commercial general liability
Rationale: A BOP combines property coverage and commercial general
liability into a single package policy. Workers' compensation, professional
liability, and commercial auto are typically written separately.
**4. An insured has a personal auto policy with liability limits of 100/300/50.
The insured causes an accident with total bodily injury damages of
$350,000 to three people. The insured has no other insurance. How much
will the insurer pay for bodily injury?**
A) $100,000
,B) $300,000
C) $350,000
D) $50,000
**Correct Answer: B – $300,000***
*Rationale: The split limits are $100,000 per person and $300,000 per
accident for bodily injury. The insurer pays up to $300,000 for all bodily injury
claims arising from the accident. The insured is personally responsible for the
remaining $50,000.
5. Which of the following is a key difference between a claims-made
CGL policy and an occurrence CGL policy?
A) Claims-made policies cover only claims reported during the policy
period, while occurrence policies cover incidents that occur during the
policy period regardless of when reported
B) Claims-made policies are always more expensive
C) Occurrence policies only cover claims reported during the policy period
D) There is no difference
Correct Answer: A – Claims-made policies cover only claims reported
during the policy period, while occurrence policies cover incidents that
occur during the policy period regardless of when reported
Rationale: A claims-made policy responds to claims first made during the
policy period, subject to a retroactive date. An occurrence policy responds to
incidents that occur during the policy period, regardless of when the claim is
reported.
6. A Florida agent is placing coverage for a client with a unique, high-
risk exposure that admitted insurers will not write. The agent must
place the business with a surplus lines insurer. What must the agent
, document before placing the coverage?
A) A diligent effort showing that coverage was unavailable from admitted
insurers
B) The client's credit score
C) The agent's commission
D) The insurer's AM Best rating only
Correct Answer: A – A diligent effort showing that coverage was
unavailable from admitted insurers
Rationale: Florida law requires the surplus lines broker to conduct a diligent
effort to obtain coverage from admitted insurers and document that effort
before placing business with a non-admitted insurer.
7. A Florida homeowners policy includes Coverage D – Loss of Use.
Which of the following expenses would be covered under this
coverage?
A) The cost to repair the damaged roof
B) Additional living expenses incurred while the home is uninhabitable due
to a covered loss
C) The cost to replace damaged furniture
D) The mortgage payment on the damaged home
Correct Answer: B – Additional living expenses incurred while the home
is uninhabitable due to a covered loss
Rationale: Coverage D pays for necessary increases in living expenses and fair
rental value when a covered loss makes the residence premises
uninhabitable. Repair costs are covered under Coverage A; furniture under
Coverage C.
LICENSE FINAL EXAM COMPREHENSIVE
STUDY GUIDE 2026
Pass your Florida insurance licensing exam on the first attempt with this
definitive, high-yield study resource engineered for the 2-20 General Lines
Agent credential. This targeted preparation guide provides deep-dive
structural coverage of property and casualty insurance principles, Florida
state statutes, regulatory updates, and commercial liability frameworks.
Perfect for aspiring agents and insurance professionals, this
comprehensive package ensures you master complex policy language and
state insurance codes to eliminate testing anxiety and secure your career
path.
1. A Florida insurance agent is reviewing a commercial property policy that
contains an 80% coinsurance clause. The building has a replacement cost of
$500,000, but the insured carries only $300,000 in coverage. A $100,000
partial loss occurs. How much will the insurer pay (ignoring any
deductible)?**
A) $75,000
B) $100,000
C) $80,000
D) $60,000
**Correct Answer: A – $75,000***
*Rationale: The coinsurance penalty formula is (Insurance carried ÷
Insurance required) × Loss. Insurance required = 80% × $500,000 =
$400,000. ($300,000 ÷ $400,000) × $100,000 = 0.75 × $100,000 = $75,000.
The insured absorbs the remaining $25,000 as a coinsurance penalty.
,2. A Florida homeowners policy (HO-3) provides open-peril coverage
on the dwelling. Which of the following losses would be excluded
unless specifically endorsed?
A) Damage from a windstorm
B) Damage from a fire
C) Damage from a flood
D) Damage from hail
Correct Answer: C – Damage from a flood
Rationale: Flood is excluded under standard homeowners policies and
requires a separate flood insurance policy, typically through the NFIP or a
private insurer. Windstorm, fire, and hail are covered perils under an HO-3.
3. A Florida businessowner is purchasing a Businessowners Policy
(BOP). Which of the following coverages is typically included in a BOP?
A) Workers' compensation
B) Commercial general liability
C) Professional liability
D) Commercial auto liability
Correct Answer: B – Commercial general liability
Rationale: A BOP combines property coverage and commercial general
liability into a single package policy. Workers' compensation, professional
liability, and commercial auto are typically written separately.
**4. An insured has a personal auto policy with liability limits of 100/300/50.
The insured causes an accident with total bodily injury damages of
$350,000 to three people. The insured has no other insurance. How much
will the insurer pay for bodily injury?**
A) $100,000
,B) $300,000
C) $350,000
D) $50,000
**Correct Answer: B – $300,000***
*Rationale: The split limits are $100,000 per person and $300,000 per
accident for bodily injury. The insurer pays up to $300,000 for all bodily injury
claims arising from the accident. The insured is personally responsible for the
remaining $50,000.
5. Which of the following is a key difference between a claims-made
CGL policy and an occurrence CGL policy?
A) Claims-made policies cover only claims reported during the policy
period, while occurrence policies cover incidents that occur during the
policy period regardless of when reported
B) Claims-made policies are always more expensive
C) Occurrence policies only cover claims reported during the policy period
D) There is no difference
Correct Answer: A – Claims-made policies cover only claims reported
during the policy period, while occurrence policies cover incidents that
occur during the policy period regardless of when reported
Rationale: A claims-made policy responds to claims first made during the
policy period, subject to a retroactive date. An occurrence policy responds to
incidents that occur during the policy period, regardless of when the claim is
reported.
6. A Florida agent is placing coverage for a client with a unique, high-
risk exposure that admitted insurers will not write. The agent must
place the business with a surplus lines insurer. What must the agent
, document before placing the coverage?
A) A diligent effort showing that coverage was unavailable from admitted
insurers
B) The client's credit score
C) The agent's commission
D) The insurer's AM Best rating only
Correct Answer: A – A diligent effort showing that coverage was
unavailable from admitted insurers
Rationale: Florida law requires the surplus lines broker to conduct a diligent
effort to obtain coverage from admitted insurers and document that effort
before placing business with a non-admitted insurer.
7. A Florida homeowners policy includes Coverage D – Loss of Use.
Which of the following expenses would be covered under this
coverage?
A) The cost to repair the damaged roof
B) Additional living expenses incurred while the home is uninhabitable due
to a covered loss
C) The cost to replace damaged furniture
D) The mortgage payment on the damaged home
Correct Answer: B – Additional living expenses incurred while the home
is uninhabitable due to a covered loss
Rationale: Coverage D pays for necessary increases in living expenses and fair
rental value when a covered loss makes the residence premises
uninhabitable. Repair costs are covered under Coverage A; furniture under
Coverage C.
