FLORIDA 2-20 AGENTS LICENSE EXAM QUESTIONS LATEST UPDATED 2026/2027 (GRADED A+)
The Florida Surplus Service Lines Office (FSLSO) was created to ✔️oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: ✔️Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: ✔️Pays insurance claims
Once license, you have how long to obtain an appointment? ✔️48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? ✔️Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? ✔️Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to ✔️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 ✔️Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by insurance? ✔️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
✔️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? ✔️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 ✔️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 ✔️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 ✔️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 ✔️The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial condition is the process of ✔️Indemnification
Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it ✔️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 ✔️Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability? ✔️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? ✔️$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)? ✔️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, ✔️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: ✔️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? ✔️$1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement condition ✔️Establishes the process for determining the
amount to be paid for a property loss.
Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3) that is destroyed, confiscated, or seized by order of any
governmental or public authority is ✔️Excluded.
Adam and his insurer disagree on the amount of a loss covered by his homeowners policy. Adam wants the insurer to pay $10,000 toward the
loss. The insurer's representative feels that the loss should be valued at $5,000. How could the appraisal process resolve this situation? ✔️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.
Which one of the following has special limits of liability within Coverage C of the HO-3—Special Form (HO-3)? ✔️Theft of firearms
A storm causes power lines to break ten miles from the insured's premises. The loss of electrical power causes food in the insured's freezer to
thaw and spoil. Coverage for this loss is ✔️Excluded because the power failure occurred off the residence premises.
If law enforcement officials seize an insured's personal computer to search for files that might be related to a crime, the insured under an HO-
3—Special Form (HO-3) may be unsuccessful in claiming a theft loss on the computer due to the ✔️Governmental Action exclusion.
Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-3) policy. Sam stores a small fishing boat and trailer behind the
house. While they are out for the evening, a fire destroys most of their kitchen and completely destroys the boat and trailer. Assuming Sam's
boat and trailer are valued at $4,000 and ignoring any deductible that may apply, what amount will their HO-3 insurer pay for the loss of the
boat and trailer? ✔️$1,500
The Florida Valued Policy Law applies to: ✔️mobile homes
For a Dwelling Flood policy, which is correct: ✔️Primary residences are covered at replacement cost on building losses.
Sally insures her house with an unendorsed HO-3—Special Form (HO-3) with a Coverage A—Dwelling limit of $275,000, which is the
replacement cost of the house. A fire destroys the house including a collection of blueprints belonging to Sally's employer, valued at $10,000.
Sally was storing the blueprints at her home while her office was changing locations. Assuming no deductible applies, how much, if any, will
Sally's HO-3 insurer pay to replace the blueprints? ✔️$0
One of the main factors used in developing a base premium for a homeowners policy is ✔️The public protection class.
Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage is $35,000. Ignoring any deductible that
may apply, how much will Bert and Maggie's insurer pay to replace the detached garage? ✔️$30,000
Coverage for other structures is automatically provided under the HO-3—Special Form (HO-3) policy with a limit that is ✔️10 percent of the
Coverage A limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a Coverage C—Personal Property limit of $100,000. She owns a
secondary residence that contains $15,000 of personal property. Only her primary residence is listed on the declarations page of the HO-3
policy. A fire destroys all of Renee's personal property at her secondary residence. How much of this loss will be paid by Renee's HO-3 policy?
✔️$10,000
A homeowners policy premium is determined by first developing the base premium. The base premium is influenced by certain factors,
including which one of the following? ✔️Dwelling location
The Florida Surplus Service Lines Office (FSLSO) was created to ✔️oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: ✔️Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: ✔️Pays insurance claims
Once license, you have how long to obtain an appointment? ✔️48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? ✔️Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? ✔️Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
From a risk management viewpoint, insurance is used to ✔️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 ✔️Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided by insurance? ✔️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
✔️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? ✔️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 ✔️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 ✔️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 ✔️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 ✔️The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial condition is the process of ✔️Indemnification
Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it ✔️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 ✔️Disability insurance.
Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability? ✔️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? ✔️$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)? ✔️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, ✔️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: ✔️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? ✔️$1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement condition ✔️Establishes the process for determining the
amount to be paid for a property loss.
Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3) that is destroyed, confiscated, or seized by order of any
governmental or public authority is ✔️Excluded.
Adam and his insurer disagree on the amount of a loss covered by his homeowners policy. Adam wants the insurer to pay $10,000 toward the
loss. The insurer's representative feels that the loss should be valued at $5,000. How could the appraisal process resolve this situation? ✔️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.
Which one of the following has special limits of liability within Coverage C of the HO-3—Special Form (HO-3)? ✔️Theft of firearms
A storm causes power lines to break ten miles from the insured's premises. The loss of electrical power causes food in the insured's freezer to
thaw and spoil. Coverage for this loss is ✔️Excluded because the power failure occurred off the residence premises.
If law enforcement officials seize an insured's personal computer to search for files that might be related to a crime, the insured under an HO-
3—Special Form (HO-3) may be unsuccessful in claiming a theft loss on the computer due to the ✔️Governmental Action exclusion.
Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-3) policy. Sam stores a small fishing boat and trailer behind the
house. While they are out for the evening, a fire destroys most of their kitchen and completely destroys the boat and trailer. Assuming Sam's
boat and trailer are valued at $4,000 and ignoring any deductible that may apply, what amount will their HO-3 insurer pay for the loss of the
boat and trailer? ✔️$1,500
The Florida Valued Policy Law applies to: ✔️mobile homes
For a Dwelling Flood policy, which is correct: ✔️Primary residences are covered at replacement cost on building losses.
Sally insures her house with an unendorsed HO-3—Special Form (HO-3) with a Coverage A—Dwelling limit of $275,000, which is the
replacement cost of the house. A fire destroys the house including a collection of blueprints belonging to Sally's employer, valued at $10,000.
Sally was storing the blueprints at her home while her office was changing locations. Assuming no deductible applies, how much, if any, will
Sally's HO-3 insurer pay to replace the blueprints? ✔️$0
One of the main factors used in developing a base premium for a homeowners policy is ✔️The public protection class.
Bert and Maggie 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 fire destroys their detached garage. The cost to replace the garage is $35,000. Ignoring any deductible that
may apply, how much will Bert and Maggie's insurer pay to replace the detached garage? ✔️$30,000
Coverage for other structures is automatically provided under the HO-3—Special Form (HO-3) policy with a limit that is ✔️10 percent of the
Coverage A limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a Coverage C—Personal Property limit of $100,000. She owns a
secondary residence that contains $15,000 of personal property. Only her primary residence is listed on the declarations page of the HO-3
policy. A fire destroys all of Renee's personal property at her secondary residence. How much of this loss will be paid by Renee's HO-3 policy?
✔️$10,000
A homeowners policy premium is determined by first developing the base premium. The base premium is influenced by certain factors,
including which one of the following? ✔️Dwelling location
