FLORIDA 2-20 GENERAL LINES AGENT LICENSE
EXAM SCRIPT 2026 TESTED QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
◉ Controlled Business. Answer: Insurance (more than 50%) written
on his or her own interests or those of his or her family or of any
firm, corporation, or association with which he or she is associated
with directly or indirectly or has an interest other than the
insurance.
◉ Duties of the Department of Financial Services. Answer: Approve
issuance of licenses to agents, CR, and adjusters.
◉ Duties of the Office of Insurance Regulation. Answer: Examine the
qualifications of insurance companies doing business in Florida.
◉ Risk. Answer: The chance of financial loss.
◉ Binders. Answer: Temporary insurance policies, which can be
made orally or written.
,◉ Insurance Policy. Answer: A written contract for effecting
insurance and includes clauses, riders, endorsements, and papers
which are part of the contract.
◉ Insurance. Answer: A contract where one undertakes to indemnify
another or pay a specified amount determined on contingencies.
◉ Property Insurance. Answer: Where payment is made directly to
the insured or other named interests.
◉ Liability Insurance. Answer: Where payment is made on behalf of
the insured to another.
◉ Insurance Contract Characteristics. Answer: The insurer shall give
5 days prior notice of cancelling a binder unless the binder is
replaced by a policy. No notice is required unless the binder exceeds
60 days.
◉ Personal Contract. Answer: Covers persons, not property or
operations.
◉ Indemnity Contract. Answer: One party should be put back in the
same financial condition they were in before the loss. (Never profit
from a loss).
,◉ Conditional Contract. Answer: Obligations of insurer to perform,
may depend on the insured satisfying certain conditions.
◉ Contract of Adhesion. Answer: Parties have unequal bargaining
power, such as the insured cannot negotiate the terms of the insurer.
Ambiguities found in the policy are usually found in favor of the
insured.
◉ Insurable Interest. Answer: Must exist at the time of loss and the
insured would suffer economic loss.
◉ Replacement Cost. Answer: Given new for old.
◉ Agreed Value. Answer: Specific amount agreed upon in advance.
◉ Florida Value Policy Law. Answer: Policy limits are paid for total
loss.
◉ Liability. Answer: Pays amount that exceeds insured's resources.
◉ Peril. Answer: A contingency that causes a loss.
◉ Hazard. Answer: A condition that increases the likelihood of a loss
from a covered peril.
, ◉ Classifications of Hazards. Answer: Direct vs.
◉ Indirect Loss. Answer: Economic loss that flows as a consequence
of the direct loss.
◉ Direct Loss. Answer: Physical harm to tangible property.
◉ Moral Loss. Answer: Intentional loss.
◉ Morale Loss. Answer: Accident-prone or carelessness.
◉ Physical Loss. Answer: Physical characteristics that increase the
probability and severity of loss.
◉ Lender Interest. Answer: Lender's interest is named in the
Mortgage Clause, Mortgagee Clause, or Mortgage Holders.
◉ Proximate Clause. Answer: A doctrine that states when there is an
unbroken connection between an occurrence and damage that
grows out of the occurrence, then the resultant damage is all part of
the occurrence.
EXAM SCRIPT 2026 TESTED QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
◉ Controlled Business. Answer: Insurance (more than 50%) written
on his or her own interests or those of his or her family or of any
firm, corporation, or association with which he or she is associated
with directly or indirectly or has an interest other than the
insurance.
◉ Duties of the Department of Financial Services. Answer: Approve
issuance of licenses to agents, CR, and adjusters.
◉ Duties of the Office of Insurance Regulation. Answer: Examine the
qualifications of insurance companies doing business in Florida.
◉ Risk. Answer: The chance of financial loss.
◉ Binders. Answer: Temporary insurance policies, which can be
made orally or written.
,◉ Insurance Policy. Answer: A written contract for effecting
insurance and includes clauses, riders, endorsements, and papers
which are part of the contract.
◉ Insurance. Answer: A contract where one undertakes to indemnify
another or pay a specified amount determined on contingencies.
◉ Property Insurance. Answer: Where payment is made directly to
the insured or other named interests.
◉ Liability Insurance. Answer: Where payment is made on behalf of
the insured to another.
◉ Insurance Contract Characteristics. Answer: The insurer shall give
5 days prior notice of cancelling a binder unless the binder is
replaced by a policy. No notice is required unless the binder exceeds
60 days.
◉ Personal Contract. Answer: Covers persons, not property or
operations.
◉ Indemnity Contract. Answer: One party should be put back in the
same financial condition they were in before the loss. (Never profit
from a loss).
,◉ Conditional Contract. Answer: Obligations of insurer to perform,
may depend on the insured satisfying certain conditions.
◉ Contract of Adhesion. Answer: Parties have unequal bargaining
power, such as the insured cannot negotiate the terms of the insurer.
Ambiguities found in the policy are usually found in favor of the
insured.
◉ Insurable Interest. Answer: Must exist at the time of loss and the
insured would suffer economic loss.
◉ Replacement Cost. Answer: Given new for old.
◉ Agreed Value. Answer: Specific amount agreed upon in advance.
◉ Florida Value Policy Law. Answer: Policy limits are paid for total
loss.
◉ Liability. Answer: Pays amount that exceeds insured's resources.
◉ Peril. Answer: A contingency that causes a loss.
◉ Hazard. Answer: A condition that increases the likelihood of a loss
from a covered peril.
, ◉ Classifications of Hazards. Answer: Direct vs.
◉ Indirect Loss. Answer: Economic loss that flows as a consequence
of the direct loss.
◉ Direct Loss. Answer: Physical harm to tangible property.
◉ Moral Loss. Answer: Intentional loss.
◉ Morale Loss. Answer: Accident-prone or carelessness.
◉ Physical Loss. Answer: Physical characteristics that increase the
probability and severity of loss.
◉ Lender Interest. Answer: Lender's interest is named in the
Mortgage Clause, Mortgagee Clause, or Mortgage Holders.
◉ Proximate Clause. Answer: A doctrine that states when there is an
unbroken connection between an occurrence and damage that
grows out of the occurrence, then the resultant damage is all part of
the occurrence.
