FLORIDA 2-20 AGENTS
LICENSE EXAM STUDY GUIDE.
GRADED A+. QUESTIONS AND
100% VERIFIED ANSWERS.
LATEST 2025/2026 UPDATE
The Florida Surplus Service Lines Office (FSLSO) was created to - Ans✔✔-
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines
Agent: - Ans✔✔-Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: -
Ans✔✔-Pays insurance claims
Once license, you have how long to obtain an appointment? - Ans✔✔-48
months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
Ans✔✔-Submit rate filings and underwriting rules for approval
,Which one of the following statements is correct? - Ans✔✔-Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
From a risk management viewpoint, insurance is used to - Ans✔✔-Transfer the
cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically
provided by - Ans✔✔-Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits
provided by insurance? - Ans✔✔-Insurance helps reduce the financial burden
to society by compensating accident victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through -
Ans✔✔-Noninsurance transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans
to drive it to special events at schools around the country where it will serve as
a mobile billboard to promote his product. Oscar is surprised to learn that
insurers are reluctant to insure his vehicle because it fails to meet one of the
ideal characteristics of an insurable risk. Which characteristic is Oscar's vehicle
least likely to meet? - Ans✔✔-Large number of similar exposure units
Liability coverage to individuals and families for bodily injury and property
damage arising from the insured's personal premises or activities is typically
provided by - Ans✔✔-Personal liability insurance.
,Sally is a recent college graduate who lives in the suburbs and drives to work
daily in the city. She recognizes that owning a car creates both property
damage and liability exposures for her and at the same time she has the
burden of student loans. For someone in Sally's circumstances the most
practical risk management technique for dealing with her auto-related loss
exposures is - Ans✔✔-Risk transfer.
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be
used elsewhere and making other productive contributions to - Ans✔✔-Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is -
Ans✔✔-The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - Ans✔✔-Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - Ans✔✔-Increases the total cost of insurance
A small business owner concerned about something happening and not being
able to work or earn a living for an extended period of time due to an accident
should purchase - Ans✔✔-Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto
Policy for Liability? - Ans✔✔-The 1990 Chevy 22 days after you purchase it as
an additional vehicle for your son who just got his license.
, Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her
care. Joe is driving her car, loses control; and hits a tree. Joe is hurt with
$15,000 in medical bills. What is the maximum Joe can collect from UM from
all sources from this accident? - Ans✔✔-$0
Keith commutes into the city in his car, and he provides a ride to two co-
workers who live near him. Every other week, the co-workers take turns buying
the gasoline for Keith's car. Does this activity create a public or livery
conveyance situation that would preclude liability coverage under Keith's
Personal Auto Policy (PAP)? - Ans✔✔-No, because Keith is involved in a share-
the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy
(PAP), each from a different insurer. In the event of a claim for medical
payments coverage, - Ans✔✔-Each insurer pays its pro rata share based on the
proportion that its limit of liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto
Policy contains descriptions of all of the following EXCEPT: - Ans✔✔-Limit of
Liability
Tom and Martha insure their house with an unendorsed HO-3—Special Form
(HO-3) with a Coverage A—Dwelling limit of $300,000, which is the
replacement cost of the house. A thief breaks into the house while Tom and
Martha are on vacation and steals the following items: •$500 cash•$50,000
stock certificates. Ignoring any deductible that may apply, how much, if any, will
Tom and Martha's insurer pay for the loss of the items? - Ans✔✔-$1,700
LICENSE EXAM STUDY GUIDE.
GRADED A+. QUESTIONS AND
100% VERIFIED ANSWERS.
LATEST 2025/2026 UPDATE
The Florida Surplus Service Lines Office (FSLSO) was created to - Ans✔✔-
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines
Agent: - Ans✔✔-Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: -
Ans✔✔-Pays insurance claims
Once license, you have how long to obtain an appointment? - Ans✔✔-48
months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
Ans✔✔-Submit rate filings and underwriting rules for approval
,Which one of the following statements is correct? - Ans✔✔-Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
From a risk management viewpoint, insurance is used to - Ans✔✔-Transfer the
cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically
provided by - Ans✔✔-Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits
provided by insurance? - Ans✔✔-Insurance helps reduce the financial burden
to society by compensating accident victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through -
Ans✔✔-Noninsurance transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans
to drive it to special events at schools around the country where it will serve as
a mobile billboard to promote his product. Oscar is surprised to learn that
insurers are reluctant to insure his vehicle because it fails to meet one of the
ideal characteristics of an insurable risk. Which characteristic is Oscar's vehicle
least likely to meet? - Ans✔✔-Large number of similar exposure units
Liability coverage to individuals and families for bodily injury and property
damage arising from the insured's personal premises or activities is typically
provided by - Ans✔✔-Personal liability insurance.
,Sally is a recent college graduate who lives in the suburbs and drives to work
daily in the city. She recognizes that owning a car creates both property
damage and liability exposures for her and at the same time she has the
burden of student loans. For someone in Sally's circumstances the most
practical risk management technique for dealing with her auto-related loss
exposures is - Ans✔✔-Risk transfer.
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be
used elsewhere and making other productive contributions to - Ans✔✔-Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is -
Ans✔✔-The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - Ans✔✔-Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - Ans✔✔-Increases the total cost of insurance
A small business owner concerned about something happening and not being
able to work or earn a living for an extended period of time due to an accident
should purchase - Ans✔✔-Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto
Policy for Liability? - Ans✔✔-The 1990 Chevy 22 days after you purchase it as
an additional vehicle for your son who just got his license.
, Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her
care. Joe is driving her car, loses control; and hits a tree. Joe is hurt with
$15,000 in medical bills. What is the maximum Joe can collect from UM from
all sources from this accident? - Ans✔✔-$0
Keith commutes into the city in his car, and he provides a ride to two co-
workers who live near him. Every other week, the co-workers take turns buying
the gasoline for Keith's car. Does this activity create a public or livery
conveyance situation that would preclude liability coverage under Keith's
Personal Auto Policy (PAP)? - Ans✔✔-No, because Keith is involved in a share-
the-expense car pool.
An insured covers his owned auto with more than one Personal Auto Policy
(PAP), each from a different insurer. In the event of a claim for medical
payments coverage, - Ans✔✔-Each insurer pays its pro rata share based on the
proportion that its limit of liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the Personal Auto
Policy contains descriptions of all of the following EXCEPT: - Ans✔✔-Limit of
Liability
Tom and Martha insure their house with an unendorsed HO-3—Special Form
(HO-3) with a Coverage A—Dwelling limit of $300,000, which is the
replacement cost of the house. A thief breaks into the house while Tom and
Martha are on vacation and steals the following items: •$500 cash•$50,000
stock certificates. Ignoring any deductible that may apply, how much, if any, will
Tom and Martha's insurer pay for the loss of the items? - Ans✔✔-$1,700
