FLORIDA 2-20 AGENT’S LICENSE FINAL
ACTUAL PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ 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
◉ 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.
◉ 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 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.
◉ 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.
◉ 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? Answer: $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)?
ACTUAL PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ 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
◉ 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.
◉ 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 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.
◉ 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.
◉ 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? Answer: $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)?
