Florida 2-20 General Lines Agent License
Exam (2025) – Actual Exam with 150
Questions and Detailed Correct Answers | A
Grade | Latest Version
ACTUAL EXAM WITH 150 QUESTIONS | DETAILED CORRECT ANSWERS 100%
VERIFIED | A GRADE | LATEST 2025 CURRICULUM (FLOIR/DFS UPDATES)
Q1. The Florida Surplus Lines Service Office (FSLSO) was created to: Oversee the surplus
lines industry in the state. Rationale: FSLSO administers surplus lines laws, collects taxes, and
maintains records for non-admitted insurers.
Q2. Which of the following is NOT a required qualification for a General Lines Agent? Seeking
the license only to write controlled business. Rationale: Controlled business (family/friends)
cannot be primary reason for licensure; must be active in business.
Q3. The Department of Financial Services performs the following, EXCEPT: Pays insurance
claims. Rationale: DFS regulates agents and insurers; claims paid by insurers, not state.
Q4. Once licensed, you have how long to obtain an appointment? 48 hours. Rationale: Fla. Stat.
§626.112(3); must be appointed by insurer to transact.
Q5. From a risk management viewpoint, insurance is used to: Transfer the cost of losses.
Rationale: Insurance shifts financial risk from insured to insurer.
Q6. Liability coverage for loss exposures arising from a business organization's premises and
operations, its products, or its completed work is typically provided by: Commercial general
liability insurance. Rationale: CGL covers third-party claims for bodily injury/property
damage.
,Q7. A storm causes power lines to break ten miles from the insured's premises. The insured's
property is damaged by a falling tree. Which of the following statements is true? The damage is
covered. Rationale: HO-3 covers windstorm damage regardless of cause of loss.
Q8. According to "no-fault" vehicle laws in Florida, anyone who owns or drives a vehicle must
have: Personal injury protection and property damage insurance. Rationale: Fla. Stat.
§627.736; PIP $10K minimum, PD $10K.
Q9. Which one of the following has special limits of liability within Coverage C of the HO-3—
Special Form (HO-3)? Theft of firearms. Rationale: HO-3 limits $1,000 for firearms, $2,500
for jewelry.
Q10. Adam and the insurer will each select an appraiser, and the two appraisers will submit their
differences to an impartial umpire who will reach a resolution. This is called: Appraisal.
Rationale: Contract provision to resolve disputes over loss amount.
Q11. All of the following are duties of the 'Office of Insurance Regulation' EXCEPT: Paying
claims. Rationale: OIR regulates rates/forms; claims handled by insurers.
Q12. When the insurer pays the proportion, which its limit bears to all limits this is called: Pro-
rata liability. Rationale: Contributes proportionally to total loss.
Q13. A condition that states that if an insurer adopts a revision which would broaden coverage
without additional premium, the insured would receive the benefit called: Liberalization clause.
Rationale: Applies to policies in force <60 days.
Q14. The Florida Surplus Lines Service Office (FSLSO) was created to: Oversee the surplus
lines industry. Rationale: Collects taxes, reviews policies.
, Q15. Which of the following is NOT a required qualification for a General Lines Agent: Seeking
the license only to write controlled business. Rationale: Controlled business cannot be
primary motivation.
Q16. The Department of Financial Services performs the following, EXCEPT: Pays insurance
claims. Rationale: Regulates, does not pay claims.
Q17. Once licensed, you have how long to obtain an appointment? 48 hours. Rationale: Must
be appointed to transact.
Q18. From a risk management viewpoint, insurance is used to: Transfer the cost of losses.
Rationale: Shifts financial burden.
Q19. Liability coverage for business premises/operations/products/completed work:
Commercial general liability insurance. Rationale: Covers third-party liability.
Q20. A storm causes power lines to break ten miles from the insured's premises. The insured's
property is damaged by a falling tree. Which statement is true? The damage is covered.
Rationale: Windstorm coverage applies.
Q21. According to “no-fault” vehicle laws in Florida, anyone who owns or drives a vehicle must
have: Personal injury protection and property damage insurance. Rationale: Minimum PIP
$10K, PD $10K.
Q22. Which one of the following has special limits of liability within Coverage C of the HO-3—
Special Form (HO-3)? Theft of firearms. Rationale: $1,000 limit for firearms.
Q23. Adam and the insurer will each select an appraiser, and the two appraisers will submit their
differences to an impartial umpire who will reach a resolution. This is called: Appraisal.
Rationale: Disputes loss amount.
Exam (2025) – Actual Exam with 150
Questions and Detailed Correct Answers | A
Grade | Latest Version
ACTUAL EXAM WITH 150 QUESTIONS | DETAILED CORRECT ANSWERS 100%
VERIFIED | A GRADE | LATEST 2025 CURRICULUM (FLOIR/DFS UPDATES)
Q1. The Florida Surplus Lines Service Office (FSLSO) was created to: Oversee the surplus
lines industry in the state. Rationale: FSLSO administers surplus lines laws, collects taxes, and
maintains records for non-admitted insurers.
Q2. Which of the following is NOT a required qualification for a General Lines Agent? Seeking
the license only to write controlled business. Rationale: Controlled business (family/friends)
cannot be primary reason for licensure; must be active in business.
Q3. The Department of Financial Services performs the following, EXCEPT: Pays insurance
claims. Rationale: DFS regulates agents and insurers; claims paid by insurers, not state.
Q4. Once licensed, you have how long to obtain an appointment? 48 hours. Rationale: Fla. Stat.
§626.112(3); must be appointed by insurer to transact.
Q5. From a risk management viewpoint, insurance is used to: Transfer the cost of losses.
Rationale: Insurance shifts financial risk from insured to insurer.
Q6. Liability coverage for loss exposures arising from a business organization's premises and
operations, its products, or its completed work is typically provided by: Commercial general
liability insurance. Rationale: CGL covers third-party claims for bodily injury/property
damage.
,Q7. A storm causes power lines to break ten miles from the insured's premises. The insured's
property is damaged by a falling tree. Which of the following statements is true? The damage is
covered. Rationale: HO-3 covers windstorm damage regardless of cause of loss.
Q8. According to "no-fault" vehicle laws in Florida, anyone who owns or drives a vehicle must
have: Personal injury protection and property damage insurance. Rationale: Fla. Stat.
§627.736; PIP $10K minimum, PD $10K.
Q9. Which one of the following has special limits of liability within Coverage C of the HO-3—
Special Form (HO-3)? Theft of firearms. Rationale: HO-3 limits $1,000 for firearms, $2,500
for jewelry.
Q10. Adam and the insurer will each select an appraiser, and the two appraisers will submit their
differences to an impartial umpire who will reach a resolution. This is called: Appraisal.
Rationale: Contract provision to resolve disputes over loss amount.
Q11. All of the following are duties of the 'Office of Insurance Regulation' EXCEPT: Paying
claims. Rationale: OIR regulates rates/forms; claims handled by insurers.
Q12. When the insurer pays the proportion, which its limit bears to all limits this is called: Pro-
rata liability. Rationale: Contributes proportionally to total loss.
Q13. A condition that states that if an insurer adopts a revision which would broaden coverage
without additional premium, the insured would receive the benefit called: Liberalization clause.
Rationale: Applies to policies in force <60 days.
Q14. The Florida Surplus Lines Service Office (FSLSO) was created to: Oversee the surplus
lines industry. Rationale: Collects taxes, reviews policies.
, Q15. Which of the following is NOT a required qualification for a General Lines Agent: Seeking
the license only to write controlled business. Rationale: Controlled business cannot be
primary motivation.
Q16. The Department of Financial Services performs the following, EXCEPT: Pays insurance
claims. Rationale: Regulates, does not pay claims.
Q17. Once licensed, you have how long to obtain an appointment? 48 hours. Rationale: Must
be appointed to transact.
Q18. From a risk management viewpoint, insurance is used to: Transfer the cost of losses.
Rationale: Shifts financial burden.
Q19. Liability coverage for business premises/operations/products/completed work:
Commercial general liability insurance. Rationale: Covers third-party liability.
Q20. A storm causes power lines to break ten miles from the insured's premises. The insured's
property is damaged by a falling tree. Which statement is true? The damage is covered.
Rationale: Windstorm coverage applies.
Q21. According to “no-fault” vehicle laws in Florida, anyone who owns or drives a vehicle must
have: Personal injury protection and property damage insurance. Rationale: Minimum PIP
$10K, PD $10K.
Q22. Which one of the following has special limits of liability within Coverage C of the HO-3—
Special Form (HO-3)? Theft of firearms. Rationale: $1,000 limit for firearms.
Q23. Adam and the insurer will each select an appraiser, and the two appraisers will submit their
differences to an impartial umpire who will reach a resolution. This is called: Appraisal.
Rationale: Disputes loss amount.
