Florida 2-20 General Lines Agent License Exam
2026/2027 Actual Exam- Practice – Questions
with Detailed Correct Answers Latest Version |
100% Verified | Graded A+
Q1 Which of the following is NOT one of the four elements required to prove negligence?
Answer: Punitive damages
Rationale: The four elements of negligence are: Duty, Breach, Causation, and Damages.
Punitive damages are a remedy, not an element required to prove the tort.
Q2 What is the purpose of the Florida Unfair Trade Practices Act?
Answer: To prohibit unfair methods of competition and unfair or deceptive acts or practices in
the business of insurance
Rationale: Florida Statute § 626.9541 defines and prohibits unfair trade practices to protect
consumers and maintain ethical standards in insurance sales.
Q3 An insurance producer who knowingly misrepresents policy benefits to induce a sale is guilty
of:
Answer: Twisting
Rationale: Twisting involves misrepresenting the benefits, advantages, conditions, or terms of
any insurance policy to induce replacement or new purchase (Florida Statute § 626.9541).
Q4 What is the maximum civil penalty the DFS may impose for a single violation of Florida
insurance law by an agent?
Answer: $5,000
, Rationale: Per § 626.621, the maximum administrative fine for a single violation is $5,000
(increased from previous levels in recent updates).
Q5 Which of the following is considered an unfair claims settlement practice?
Answer: Failing to affirm or deny coverage within a reasonable time after proof of loss is
submitted
Rationale: Florida Statute § 626.9541(1)(i) lists several unfair claims practices, including
unreasonable delay in affirming/denying coverage.
Q6 An insurance company may not cancel an automobile policy for which of the following
reasons after the policy has been in effect for 60 days?
Answer: The insured has filed two claims within the last 3 years
Rationale: Florida law prohibits cancellation for claims frequency alone after the initial 60-day
period (non-renewal may still be possible with proper notice).
Q7 The Florida Insurance Guaranty Association (FIGA) provides coverage for which of the
following?
Answer: Property and casualty insurance policies when the insurer becomes insolvent
Rationale: FIGA is the state guaranty fund that protects policyholders when a property/casualty
insurer becomes insolvent (not life/health).
Q8 Which of the following is a required provision in a Florida automobile insurance policy?
Answer: Personal Injury Protection (PIP)
Rationale: Florida is a no-fault state; every auto policy must include a minimum of $10,000 PIP
coverage.
Q9 What is the minimum bodily injury liability limit required in Florida for a private passenger
auto policy?
2026/2027 Actual Exam- Practice – Questions
with Detailed Correct Answers Latest Version |
100% Verified | Graded A+
Q1 Which of the following is NOT one of the four elements required to prove negligence?
Answer: Punitive damages
Rationale: The four elements of negligence are: Duty, Breach, Causation, and Damages.
Punitive damages are a remedy, not an element required to prove the tort.
Q2 What is the purpose of the Florida Unfair Trade Practices Act?
Answer: To prohibit unfair methods of competition and unfair or deceptive acts or practices in
the business of insurance
Rationale: Florida Statute § 626.9541 defines and prohibits unfair trade practices to protect
consumers and maintain ethical standards in insurance sales.
Q3 An insurance producer who knowingly misrepresents policy benefits to induce a sale is guilty
of:
Answer: Twisting
Rationale: Twisting involves misrepresenting the benefits, advantages, conditions, or terms of
any insurance policy to induce replacement or new purchase (Florida Statute § 626.9541).
Q4 What is the maximum civil penalty the DFS may impose for a single violation of Florida
insurance law by an agent?
Answer: $5,000
, Rationale: Per § 626.621, the maximum administrative fine for a single violation is $5,000
(increased from previous levels in recent updates).
Q5 Which of the following is considered an unfair claims settlement practice?
Answer: Failing to affirm or deny coverage within a reasonable time after proof of loss is
submitted
Rationale: Florida Statute § 626.9541(1)(i) lists several unfair claims practices, including
unreasonable delay in affirming/denying coverage.
Q6 An insurance company may not cancel an automobile policy for which of the following
reasons after the policy has been in effect for 60 days?
Answer: The insured has filed two claims within the last 3 years
Rationale: Florida law prohibits cancellation for claims frequency alone after the initial 60-day
period (non-renewal may still be possible with proper notice).
Q7 The Florida Insurance Guaranty Association (FIGA) provides coverage for which of the
following?
Answer: Property and casualty insurance policies when the insurer becomes insolvent
Rationale: FIGA is the state guaranty fund that protects policyholders when a property/casualty
insurer becomes insolvent (not life/health).
Q8 Which of the following is a required provision in a Florida automobile insurance policy?
Answer: Personal Injury Protection (PIP)
Rationale: Florida is a no-fault state; every auto policy must include a minimum of $10,000 PIP
coverage.
Q9 What is the minimum bodily injury liability limit required in Florida for a private passenger
auto policy?
