FLORIDA 2 15 INSURANCE LICENSE EXAM
2026 ACTUAL EXAM 300 QUESTIONS AND
ANSWERS WITH RATIONALES 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
2026 ACTUAL EXAM 300 QUESTIONS AND
ANSWERS WITH RATIONALES 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
