FL STATUTES-220 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE
2026/2027
What are the limits on lines and products the Customer Representative may handle? - Answers
A customer representative may handle insurance business the specific supervising insurance
agent is appointed to handle.
Why are Professional Employer Organizations (PEO) or Employee Leasing Companies not
exempt from state regulation? - Answers A. Florida Statute 468.529 prohibits PEOs from
sponsoring self-insured health plans.
B. Both of the answers are correct
C. None of the answers are correct
D. Even though a purported "co-employer" relationship exist, the state does not recognize an
employee/employer relationship with the employee and the PEO since the PEO does not control
the hiring and firing of employees, etc. Incorrect
BOTH ARE CORRECT
What lines of insurance are customer representatives qualified to write? - Answers Any classes
of insurance that his or her appointing general lines agent or agency is currently authorized to
transact
What is meant by the term "unauthorized insurer"? - Answers Any insurer who is not authorized
by the state of Florida.
What is meant by the term "foreign insurer"? - Answers C. One who formed their company in any
other state (other than Florida) but within the United States, its territories or possessions.
What are the penalties for diverting or misappropriating "trust funds"? - Answers The penalties
range from first-degree misdemeanor to first-degree felony.
What is meant by the term "Exchange of Business"? - Answers An agent may place business
with an insurer for which he or she is not appointed as an agent as long as he or she is
appointed for such business by another insurer.
What is included in "misrepresentation of insurance applications?" - Answers A. Knowingly
making a false or fraudulent written or oral statement or representation on or relative to any
application or negotiation for insurance policy for the purpose of obtaining a fee, commission,
or any other benefit.
An Alien Insurer is: - Answers An insurer formed in a country other than the United States
, Describe one goal of ERISA. - Answers To encourage individual employers to establish
employee health plans for that employer's employees and dependents
An agent, customer representative or adjust who diverts or misappropriates funds belonging to
an insurer or others (trust funds) may be held responsible as follows: - Answers A. If the
diverted or misappropriated funds are $300 or less, the licensee can be charged with a first-
degree misdemeanor Incorrect
B. If the diverted or misappropriated funds are hundred thousand dollars or more, the licensee
can be charged with a first-degree felony
C. If the diverted or misappropriated funds are $20,000 or more but less than $100,000, the
licensee can be charged with a second-degree felony
D. Any of the answers are correct
any are correct
What are the requirements for a licensee who changes his or her name, residence address,
principal business street address, or mailing address? - Answers D. Each licensee must notify
the department in writing within 30 days of any change of name, residence address, principal
business street address, or mailing address.
What is meant by the term "Department"? - Answers The Florida Department of Financial
Services
Rebating of a portion of an agent's commission is permitted: - Answers If a rebate schedule is
prominently displayed in public view at the agent's place of business
Who may appoint a Customer Representative? - Answers A general lines agent or a general lines
insurance agency
What are conditions under which a licensee can rebate a license? - Answers A. Both of the
answers are correct Correct
B. None of the answers are correct
C. The rebate must be available to all insured in the same actuarial class, uniformly applied and
not subject to discrimination.
D. The rebate must be in accordance with the filed rebating schedule.
both are correct
2026/2027
What are the limits on lines and products the Customer Representative may handle? - Answers
A customer representative may handle insurance business the specific supervising insurance
agent is appointed to handle.
Why are Professional Employer Organizations (PEO) or Employee Leasing Companies not
exempt from state regulation? - Answers A. Florida Statute 468.529 prohibits PEOs from
sponsoring self-insured health plans.
B. Both of the answers are correct
C. None of the answers are correct
D. Even though a purported "co-employer" relationship exist, the state does not recognize an
employee/employer relationship with the employee and the PEO since the PEO does not control
the hiring and firing of employees, etc. Incorrect
BOTH ARE CORRECT
What lines of insurance are customer representatives qualified to write? - Answers Any classes
of insurance that his or her appointing general lines agent or agency is currently authorized to
transact
What is meant by the term "unauthorized insurer"? - Answers Any insurer who is not authorized
by the state of Florida.
What is meant by the term "foreign insurer"? - Answers C. One who formed their company in any
other state (other than Florida) but within the United States, its territories or possessions.
What are the penalties for diverting or misappropriating "trust funds"? - Answers The penalties
range from first-degree misdemeanor to first-degree felony.
What is meant by the term "Exchange of Business"? - Answers An agent may place business
with an insurer for which he or she is not appointed as an agent as long as he or she is
appointed for such business by another insurer.
What is included in "misrepresentation of insurance applications?" - Answers A. Knowingly
making a false or fraudulent written or oral statement or representation on or relative to any
application or negotiation for insurance policy for the purpose of obtaining a fee, commission,
or any other benefit.
An Alien Insurer is: - Answers An insurer formed in a country other than the United States
, Describe one goal of ERISA. - Answers To encourage individual employers to establish
employee health plans for that employer's employees and dependents
An agent, customer representative or adjust who diverts or misappropriates funds belonging to
an insurer or others (trust funds) may be held responsible as follows: - Answers A. If the
diverted or misappropriated funds are $300 or less, the licensee can be charged with a first-
degree misdemeanor Incorrect
B. If the diverted or misappropriated funds are hundred thousand dollars or more, the licensee
can be charged with a first-degree felony
C. If the diverted or misappropriated funds are $20,000 or more but less than $100,000, the
licensee can be charged with a second-degree felony
D. Any of the answers are correct
any are correct
What are the requirements for a licensee who changes his or her name, residence address,
principal business street address, or mailing address? - Answers D. Each licensee must notify
the department in writing within 30 days of any change of name, residence address, principal
business street address, or mailing address.
What is meant by the term "Department"? - Answers The Florida Department of Financial
Services
Rebating of a portion of an agent's commission is permitted: - Answers If a rebate schedule is
prominently displayed in public view at the agent's place of business
Who may appoint a Customer Representative? - Answers A general lines agent or a general lines
insurance agency
What are conditions under which a licensee can rebate a license? - Answers A. Both of the
answers are correct Correct
B. None of the answers are correct
C. The rebate must be available to all insured in the same actuarial class, uniformly applied and
not subject to discrimination.
D. The rebate must be in accordance with the filed rebating schedule.
both are correct
