Florida 2-20 General Lines Agent License Exam
Recommended Study Guide Question Practice Test
with Answers & Rationales| pdf
1. What is the minimum pre-licensing education requirement for a 2-20 General
Lines Agent in Florida?
A) 100 hours
B) 150 hours
C) 200 hours
D) 250 hours
Rationale: Florida requires 200 hours of pre-licensing education for the 2-20
license.
2. Which of the following is NOT an element of a valid insurance contract?
A) Offer
B) Acceptance
C) Consideration
D) Mutual indemnity
Rationale: Valid insurance contracts require offer, acceptance, consideration,
competent parties, and legal purpose; mutual indemnity is not a contract
element.
3. An agent deposits client premiums into their personal bank account. Which
duty is violated?
A) Legal
B) Contractual
,C) Fiduciary
D) Ethical
Rationale: Agents have a fiduciary duty to handle premiums and client funds
separately.
4. HO-3 homeowners insurance covers which type of perils for the dwelling?
A) Named perils
B) Open perils
C) Limited perils
D) None
Rationale: HO-3 policies cover the dwelling on an open-peril basis, while
personal property is covered for named perils.
5. In Florida, the state-backed insurer for high-risk residential properties is:
A) Florida Windstorm Association
B) FRPCJUA
C) Citizens Property Insurance
D) National Flood Program
Rationale: Citizens Property Insurance is a state-backed insurer for properties
unable to secure coverage in the private market.
6. Which of the following is NOT a type of insurance authority?
A) Express
B) Implied
C) Apparent
D) Constructive
, Rationale: Only express, implied, and apparent authority are recognized in
insurance agency law.
7. Coinsurance encourages insureds to:
A) Purchase lower deductibles
B) Maintain adequate insurance relative to property value
C) Avoid claims
D) Overinsure property
Rationale: Coinsurance penalties apply when property is underinsured.
8. Which coverage is usually bundled in a Businessowners Policy (BOP)?
A) Life and health
B) Property and liability
C) Workers’ compensation only
D) Auto and home
Rationale: A BOP combines property and liability coverage for small businesses.
9. Named perils policies cover:
A) All risks except exclusions
B) Only perils listed in the policy
C) Fire and flood only
D) Natural disasters only
Rationale: Named peril policies cover only those risks explicitly listed in the
policy.
10. The Florida Department of Financial Services can:
Recommended Study Guide Question Practice Test
with Answers & Rationales| pdf
1. What is the minimum pre-licensing education requirement for a 2-20 General
Lines Agent in Florida?
A) 100 hours
B) 150 hours
C) 200 hours
D) 250 hours
Rationale: Florida requires 200 hours of pre-licensing education for the 2-20
license.
2. Which of the following is NOT an element of a valid insurance contract?
A) Offer
B) Acceptance
C) Consideration
D) Mutual indemnity
Rationale: Valid insurance contracts require offer, acceptance, consideration,
competent parties, and legal purpose; mutual indemnity is not a contract
element.
3. An agent deposits client premiums into their personal bank account. Which
duty is violated?
A) Legal
B) Contractual
,C) Fiduciary
D) Ethical
Rationale: Agents have a fiduciary duty to handle premiums and client funds
separately.
4. HO-3 homeowners insurance covers which type of perils for the dwelling?
A) Named perils
B) Open perils
C) Limited perils
D) None
Rationale: HO-3 policies cover the dwelling on an open-peril basis, while
personal property is covered for named perils.
5. In Florida, the state-backed insurer for high-risk residential properties is:
A) Florida Windstorm Association
B) FRPCJUA
C) Citizens Property Insurance
D) National Flood Program
Rationale: Citizens Property Insurance is a state-backed insurer for properties
unable to secure coverage in the private market.
6. Which of the following is NOT a type of insurance authority?
A) Express
B) Implied
C) Apparent
D) Constructive
, Rationale: Only express, implied, and apparent authority are recognized in
insurance agency law.
7. Coinsurance encourages insureds to:
A) Purchase lower deductibles
B) Maintain adequate insurance relative to property value
C) Avoid claims
D) Overinsure property
Rationale: Coinsurance penalties apply when property is underinsured.
8. Which coverage is usually bundled in a Businessowners Policy (BOP)?
A) Life and health
B) Property and liability
C) Workers’ compensation only
D) Auto and home
Rationale: A BOP combines property and liability coverage for small businesses.
9. Named perils policies cover:
A) All risks except exclusions
B) Only perils listed in the policy
C) Fire and flood only
D) Natural disasters only
Rationale: Named peril policies cover only those risks explicitly listed in the
policy.
10. The Florida Department of Financial Services can:
