Florida 2-20 General Lines (Property & Casualty)
Licensing Exam Test Questions And Correct
Answers (Verified Answers) Plus Rationales
2025/2026 Q&A | Instant Download Pdf
1. What is the primary purpose of the Florida 2-20 license?
To sell and service property and casualty insurance
The 2-20 license authorizes agents to transact property and casualty
insurance in Florida, including underwriting and servicing policies.
2. Which of the following best describes a peril?
A cause of loss
A peril is the specific event that causes a loss, such as fire, wind, or theft.
3. In Florida, what is the minimum liability limit for auto insurance under the
Financial Responsibility Law?
10/20/10
The minimum liability limits are $10,000 per person, $20,000 per accident
for bodily injury, and $10,000 for property damage.
4. What is subrogation?
The insurer’s right to recover from a third party after paying a claim
Subrogation allows the insurer to pursue reimbursement from the party
responsible for the loss.
,5. Which coverage part in a commercial package policy (CPP) covers loss of
income after a covered loss?
Business income coverage
Business income coverage compensates for lost income during the period
of restoration following a covered peril.
6. Which type of hazard involves dishonest tendencies of an insured?
Moral hazard
Moral hazard arises from intentional acts or dishonest behavior by the
insured.
7. Under Florida law, how many hours of continuing education must a 2-20
agent complete every two years?
24 hours
Florida requires 24 hours of CE every two years, including ethics and
specific line requirements.
8. Which policy provision requires an insured to protect damaged property
from further damage after a loss?
Duties after loss
This provision outlines the insured’s responsibilities after a loss, including
mitigating further damage.
9. What does Coverage C in a homeowners policy typically cover?
Personal property
Coverage C insures the policyholder’s personal belongings anywhere in
the world.
,10.What type of auto coverage pays for medical expenses for you and
passengers regardless of fault in Florida?
Personal Injury Protection (PIP)
Florida is a no-fault state, and PIP covers medical expenses regardless of
fault.
11.What is the purpose of coinsurance in property insurance?
To encourage the insured to carry adequate insurance
Coinsurance penalizes underinsurance and rewards maintaining coverage
near full value.
12.What is the waiting period for coverage under the National Flood Insurance
Program (NFIP)?
30 days
NFIP policies have a 30-day waiting period unless purchased for a new
loan or due to map revision.
13.Which commercial policy would cover theft by employees?
Commercial crime policy
Commercial crime coverage includes employee theft, forgery, and fraud.
14.In property insurance, what is the standard deductible for a hurricane in
Florida?
A percentage of the dwelling limit
Hurricane deductibles are a percentage (e.g., 2%, 5%) of the dwelling
coverage amount.
15.Which part of a policy describes the covered perils, property, and
exclusions?
, Insuring agreement
The insuring agreement specifies the coverage details and obligations of
the insurer.
16.What is the maximum fine the Florida Department of Financial Services can
impose per non-willful violation?
$2,500
For non-willful violations, fines can be up to $2,500 per violation in
Florida.
17.Which of the following is NOT typically covered by homeowners insurance?
Earthquake
Earthquake coverage is excluded and must be purchased separately.
18.What is indemnity in insurance?
Restoring the insured to their financial position before the loss
Indemnity ensures no profit from a loss; the insured is made whole, not
better off.
19.Which policy covers legal liability of a business for injuries from its
products?
Products liability insurance
This covers claims arising from defective products causing injury or
damage.
20.In a BOP, which coverage automatically includes business income and extra
expense?
Special form
Licensing Exam Test Questions And Correct
Answers (Verified Answers) Plus Rationales
2025/2026 Q&A | Instant Download Pdf
1. What is the primary purpose of the Florida 2-20 license?
To sell and service property and casualty insurance
The 2-20 license authorizes agents to transact property and casualty
insurance in Florida, including underwriting and servicing policies.
2. Which of the following best describes a peril?
A cause of loss
A peril is the specific event that causes a loss, such as fire, wind, or theft.
3. In Florida, what is the minimum liability limit for auto insurance under the
Financial Responsibility Law?
10/20/10
The minimum liability limits are $10,000 per person, $20,000 per accident
for bodily injury, and $10,000 for property damage.
4. What is subrogation?
The insurer’s right to recover from a third party after paying a claim
Subrogation allows the insurer to pursue reimbursement from the party
responsible for the loss.
,5. Which coverage part in a commercial package policy (CPP) covers loss of
income after a covered loss?
Business income coverage
Business income coverage compensates for lost income during the period
of restoration following a covered peril.
6. Which type of hazard involves dishonest tendencies of an insured?
Moral hazard
Moral hazard arises from intentional acts or dishonest behavior by the
insured.
7. Under Florida law, how many hours of continuing education must a 2-20
agent complete every two years?
24 hours
Florida requires 24 hours of CE every two years, including ethics and
specific line requirements.
8. Which policy provision requires an insured to protect damaged property
from further damage after a loss?
Duties after loss
This provision outlines the insured’s responsibilities after a loss, including
mitigating further damage.
9. What does Coverage C in a homeowners policy typically cover?
Personal property
Coverage C insures the policyholder’s personal belongings anywhere in
the world.
,10.What type of auto coverage pays for medical expenses for you and
passengers regardless of fault in Florida?
Personal Injury Protection (PIP)
Florida is a no-fault state, and PIP covers medical expenses regardless of
fault.
11.What is the purpose of coinsurance in property insurance?
To encourage the insured to carry adequate insurance
Coinsurance penalizes underinsurance and rewards maintaining coverage
near full value.
12.What is the waiting period for coverage under the National Flood Insurance
Program (NFIP)?
30 days
NFIP policies have a 30-day waiting period unless purchased for a new
loan or due to map revision.
13.Which commercial policy would cover theft by employees?
Commercial crime policy
Commercial crime coverage includes employee theft, forgery, and fraud.
14.In property insurance, what is the standard deductible for a hurricane in
Florida?
A percentage of the dwelling limit
Hurricane deductibles are a percentage (e.g., 2%, 5%) of the dwelling
coverage amount.
15.Which part of a policy describes the covered perils, property, and
exclusions?
, Insuring agreement
The insuring agreement specifies the coverage details and obligations of
the insurer.
16.What is the maximum fine the Florida Department of Financial Services can
impose per non-willful violation?
$2,500
For non-willful violations, fines can be up to $2,500 per violation in
Florida.
17.Which of the following is NOT typically covered by homeowners insurance?
Earthquake
Earthquake coverage is excluded and must be purchased separately.
18.What is indemnity in insurance?
Restoring the insured to their financial position before the loss
Indemnity ensures no profit from a loss; the insured is made whole, not
better off.
19.Which policy covers legal liability of a business for injuries from its
products?
Products liability insurance
This covers claims arising from defective products causing injury or
damage.
20.In a BOP, which coverage automatically includes business income and extra
expense?
Special form
