Page | 1
FLORIDA 2-20 AGENTS
LICENSE EXAM
The Florida Surplus Service Lines Office (FSLSO) was created
to - ANSWER-oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a
General Lines Agent: - ANSWER-Seeking the license only to
write controlled business
The Department of Financial Services performs the following,
EXCEPT: - ANSWER-Pays insurance claims
Once license, you have how long to obtain an appointment? -
ANSWER-48 months
Which of the following is NOT a duty of the Office of Insurance
Regulation? - ANSWER-Submit rate filings and underwriting
rules for approval
, Page | 2
Which one of the following statements is correct? - ANSWER-
Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
From a risk management viewpoint, insurance is used to -
ANSWER-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 - ANSWER-Commercial
general liability insurance.
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.
Insurance is not the only risk management transfer technique.
When circumstances are appropriate, transfer can be
accomplished through - ANSWER-Noninsurance transfer
techniques.
, Page | 3
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
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.
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.
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
, Page | 4
insurance business, they could be used elsewhere and making
other productive contributions to - ANSWER-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 - ANSWER-The potential for
financial ruin.
The process of restoring an individual or organization to a pre-
loss financial condition is the process of - ANSWER-
Indemnification
Sometimes the existence of insurance encourages losses. The
result of this phenomenon is that it - ANSWER-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 - ANSWER-
Disability insurance.
FLORIDA 2-20 AGENTS
LICENSE EXAM
The Florida Surplus Service Lines Office (FSLSO) was created
to - ANSWER-oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a
General Lines Agent: - ANSWER-Seeking the license only to
write controlled business
The Department of Financial Services performs the following,
EXCEPT: - ANSWER-Pays insurance claims
Once license, you have how long to obtain an appointment? -
ANSWER-48 months
Which of the following is NOT a duty of the Office of Insurance
Regulation? - ANSWER-Submit rate filings and underwriting
rules for approval
, Page | 2
Which one of the following statements is correct? - ANSWER-
Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
From a risk management viewpoint, insurance is used to -
ANSWER-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 - ANSWER-Commercial
general liability insurance.
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.
Insurance is not the only risk management transfer technique.
When circumstances are appropriate, transfer can be
accomplished through - ANSWER-Noninsurance transfer
techniques.
, Page | 3
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
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.
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.
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
, Page | 4
insurance business, they could be used elsewhere and making
other productive contributions to - ANSWER-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 - ANSWER-The potential for
financial ruin.
The process of restoring an individual or organization to a pre-
loss financial condition is the process of - ANSWER-
Indemnification
Sometimes the existence of insurance encourages losses. The
result of this phenomenon is that it - ANSWER-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 - ANSWER-
Disability insurance.
