Florida 2-20 Agents License Exam
Complete Questions and Guide Answers
100% Verified Graded A+
1. The Florida Surplus Service Lines Office (FSLSO) was created to
Answer: oversee the surplus lines industry in the state
2. Which of the following is NOT a required qualification for a General Lines
Agent
Answer: Seeking the license only to write controlled business
3. The Department of Financial Services performs the following, EXCEPT
Answer: Pays insurance claims
4. Once license, you have how long to obtain an appointment?
Answer: 48 months
5. Which of the following is NOT a duty of the Office of Insurance Regulation?
Answer: -
Submit rate filings and underwriting rules for approval
,6. Which one of the following statements is correct?
Answer: Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
7. From a risk management viewpoint, insurance is used to
Answer: Transfer the cost of losses.
8. Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically pro-
vided by
Answer: Commercial general liability insurance.
9. Which one of the following statements is correct regarding the benefits provided
by insurance?
Answer: Insurance helps reduce the financial burden to society by compensating accident victims.
10. Insurance is not the only risk management transfer technique. When circum-
stances are appropriate, transfer can be accomplished through
Answer: Noninsurance transfer techniques.
11. 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?
Answer: Large number of similar exposure units
12. 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
Answer: Personal liability insurance.
13. 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
Answer: Risk transfer.
14. 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
Answer: Society
15. 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
Answer: The potential for financial ruin.
16. The process of restoring an individual or organization to a pre-loss financial
condition is the process of
Answer: Indemnification
17. Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it
Answer: Increases the total cost of insurance
18. 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
Answer: Disability insurance.
19. Which of the following is/are not a "your covered auto" under a Personal
Auto Policy for Liability?
Answer: The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who just got his
license.
20. 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
Complete Questions and Guide Answers
100% Verified Graded A+
1. The Florida Surplus Service Lines Office (FSLSO) was created to
Answer: oversee the surplus lines industry in the state
2. Which of the following is NOT a required qualification for a General Lines
Agent
Answer: Seeking the license only to write controlled business
3. The Department of Financial Services performs the following, EXCEPT
Answer: Pays insurance claims
4. Once license, you have how long to obtain an appointment?
Answer: 48 months
5. Which of the following is NOT a duty of the Office of Insurance Regulation?
Answer: -
Submit rate filings and underwriting rules for approval
,6. Which one of the following statements is correct?
Answer: Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
7. From a risk management viewpoint, insurance is used to
Answer: Transfer the cost of losses.
8. Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically pro-
vided by
Answer: Commercial general liability insurance.
9. Which one of the following statements is correct regarding the benefits provided
by insurance?
Answer: Insurance helps reduce the financial burden to society by compensating accident victims.
10. Insurance is not the only risk management transfer technique. When circum-
stances are appropriate, transfer can be accomplished through
Answer: Noninsurance transfer techniques.
11. 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?
Answer: Large number of similar exposure units
12. 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
Answer: Personal liability insurance.
13. 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
Answer: Risk transfer.
14. 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
Answer: Society
15. 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
Answer: The potential for financial ruin.
16. The process of restoring an individual or organization to a pre-loss financial
condition is the process of
Answer: Indemnification
17. Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it
Answer: Increases the total cost of insurance
18. 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
Answer: Disability insurance.
19. Which of the following is/are not a "your covered auto" under a Personal
Auto Policy for Liability?
Answer: The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who just got his
license.
20. 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
