Florida 2-20 General Lines Insurance Questions & Answers

Florida 2-20 General Lines Insurance 5 qualifications to become a General Lines agent - Answer- 1. At least 18 years of age 2. United States citizen or legal alien 3. Bona fide resident of Florida 4. Place of business located in Florida 5. Not licensed for purpose of writing controlled business Department of Financial Services (DFS) - Answer- 1. Approves issuance of licenses to agents, CR, and adjusters 2. Supervisions of claims 3. Investigate charges of unethical conduct and take judicial actions Office of Insurance Regulation (OIR) - Answer- 1. Examines the qualifications of the insurance companies doing business in FL 2. Examines the financial conditions of companies 3. Approves forms, rules, and rates Office of Financial Regulation (OFR) - Answer- 1. Provides regulatory oversight to FL's financial providers 2. Reports to the FL Service Commission FL Surplus Lines Service Office - Answer- 1. Oversees the surplus lines industry 2. Reviews all surplus lines policies and documents 3. Collects surplus lines and taxes and fees Risk - Answer- Chance of financial loss Policy - Answer- Is a written contract for effecting insurance and includes clauses, riders, endorsements, and papers which are apart of the contract Insurance - Answer- Is a contract where one undertakes to indemnify another or pay a specified amount determined on contingencies Binders - Answer- Temporary insurance which can be made orally or written. The insurer shall give 5 days' prior notice of cancelling a binder unless the binder is replace by a policy. No notice is required unless the binder exceeds 60 days. Property Insurance - Answer- Where payment is made directly to the insured or other named interest Liability Insurance - Answer- Where payment is made on behalf of the insured to another Contract of Adhesion - Answer- Parties have unequal bargaining power such as the insured cannot negotiate the terms of the insurer. Ambiguities found in the policy are usually found in favor of the insured.