Florida 2-20 General Lines Study Manual 27th Edition
with complete solution
1.4 Qualifications for General Lines License
1. 18 or older
2. resident of FL or place of business in FL
3. will be active in business, business is accessible and identifiable by public
4. not licensing for writing or handling controlled business
5. Qualified via:
a) 200 hr course
b) one year full time employee in all lines of property casualty insurance
c) one year as a customer rep, personal lines agent, or service rep and 40 hr course
d) earned insurance degree that includes 18 hr semester
e) held valid FL license for atleast a year
f) have an original letter from the American Institute for Chartered Property Casualty
Underwriters
1.4 Qualifications for General License Statute
F.S. 626.371 (3)(a), 626.381
Once licensed, you have 48 months to obtain an appointment (the authority given by an
insurer or employer to transact insurance or adjust claims). If the appointment is
submitted late. the appointing entity will be responsible for the late fee of $250 plus the
statutory appointment fee of $60. Once your license has gone beyond 48 months
without an appointment, you will have to qualify as a first-time applicant.
1.7 Duties and Functions of the DFS
The Department of Financial Services
1. Supervise claims activities of various companies so policyholders may be assured of
fair treatment and prompt settlement of loss under a policy
2. Investigate charges of unethical conduct and take judicious actions in such cases
3. DFS Division of Agent and Agency Services- approves issuances of licenses to
agents, customer representatives, and claims adjustors
1.7 Duties and Functions of OIR
The Office of Insurance Regulation
1. Examine qualifications of insurance companies seeking to do business in FL,
admitting them to the state when they have met the requirements, and then checking
their financial condition periodically
2. Responsible for insurance policy forms, rules, and ratings; they approve forms before
use, and review companies' rules and rates every so often
1.7 Duties and Functions of OFR
The Office of Financial Regulation
1. Provides regulatory oversight to Florida financial service provides like banks, credit
unions, finance companies, and security industries
It was created in 2003 and reports to the Financial Service Commission. It has three
divisions and one bureau and is headed by a commissioner who is appointed via the
commission
, 1.7 Duties and Functions of FSLSO
The Florida Surplus Lines Service Office
1. Reviews all surplus lines insurance policies and documents
2. Maintains records of policies and reports to the DFS
3. Collect surplus lines taxes
4. Collects service fees
5. Trains and educates surplus lines agents
2.1 Risk
The chance of financial loss
All insurance is designed to offset the financial impact based on loss, and how much of
the risk the insured is willing to absorb determines the type of insurance needed,
against what perils, and for what amount
2.2 Insurance Policy
Statutory Definition:
A written contract of or written agreement for or effecting insurance (or whatever else
you want to call it) which includes all clauses, riders, endorsements, and papers which
are a part of thereof
2.2 Insurance
Statutory Definition:
A contract whereby one undertakes to indemnify another or pay or allow a specified
amount or a determinable benefit upon determinable contingencies
2.3 Binders
An oral or written statement providing immediate insurance protection that is valid for a
specified period. Designed to provide temporary coverage until a policy can be issued
or denied
Includes all terms of a policy
No notice of cancellation or notice of nonrenewal otherwise required by this unit shall be
required unless the duration of the binder exceeds 60 days
2.3 Binder Statute
F.S.627.728 and 627.7281
Regarding auto coverage, an insurer shall give 5 days prior notice of cancellation of a
binder, unless the binder is replaced by a policy or another binder in the same or
another company
2.4 Casualty Insurance
Casualty, or otherwise known as property, is insurance that may include all kinds of
insurance other than life and health
2.4 Property Insurance
Any insurance wherein payment by the insurer will be paid directly to the insured or
other specifically named interests
2.4 Liability Insurance
Any insurance wherein payment will be made on behalf of the insured to another, based
upon the insured's liability to the recipient
2.4 Health Insurance
Health insurance has its own category, but its included here because licensing statutes
authorize agents licensed for "property and liability" to sell health insurance
with complete solution
1.4 Qualifications for General Lines License
1. 18 or older
2. resident of FL or place of business in FL
3. will be active in business, business is accessible and identifiable by public
4. not licensing for writing or handling controlled business
5. Qualified via:
a) 200 hr course
b) one year full time employee in all lines of property casualty insurance
c) one year as a customer rep, personal lines agent, or service rep and 40 hr course
d) earned insurance degree that includes 18 hr semester
e) held valid FL license for atleast a year
f) have an original letter from the American Institute for Chartered Property Casualty
Underwriters
1.4 Qualifications for General License Statute
F.S. 626.371 (3)(a), 626.381
Once licensed, you have 48 months to obtain an appointment (the authority given by an
insurer or employer to transact insurance or adjust claims). If the appointment is
submitted late. the appointing entity will be responsible for the late fee of $250 plus the
statutory appointment fee of $60. Once your license has gone beyond 48 months
without an appointment, you will have to qualify as a first-time applicant.
1.7 Duties and Functions of the DFS
The Department of Financial Services
1. Supervise claims activities of various companies so policyholders may be assured of
fair treatment and prompt settlement of loss under a policy
2. Investigate charges of unethical conduct and take judicious actions in such cases
3. DFS Division of Agent and Agency Services- approves issuances of licenses to
agents, customer representatives, and claims adjustors
1.7 Duties and Functions of OIR
The Office of Insurance Regulation
1. Examine qualifications of insurance companies seeking to do business in FL,
admitting them to the state when they have met the requirements, and then checking
their financial condition periodically
2. Responsible for insurance policy forms, rules, and ratings; they approve forms before
use, and review companies' rules and rates every so often
1.7 Duties and Functions of OFR
The Office of Financial Regulation
1. Provides regulatory oversight to Florida financial service provides like banks, credit
unions, finance companies, and security industries
It was created in 2003 and reports to the Financial Service Commission. It has three
divisions and one bureau and is headed by a commissioner who is appointed via the
commission
, 1.7 Duties and Functions of FSLSO
The Florida Surplus Lines Service Office
1. Reviews all surplus lines insurance policies and documents
2. Maintains records of policies and reports to the DFS
3. Collect surplus lines taxes
4. Collects service fees
5. Trains and educates surplus lines agents
2.1 Risk
The chance of financial loss
All insurance is designed to offset the financial impact based on loss, and how much of
the risk the insured is willing to absorb determines the type of insurance needed,
against what perils, and for what amount
2.2 Insurance Policy
Statutory Definition:
A written contract of or written agreement for or effecting insurance (or whatever else
you want to call it) which includes all clauses, riders, endorsements, and papers which
are a part of thereof
2.2 Insurance
Statutory Definition:
A contract whereby one undertakes to indemnify another or pay or allow a specified
amount or a determinable benefit upon determinable contingencies
2.3 Binders
An oral or written statement providing immediate insurance protection that is valid for a
specified period. Designed to provide temporary coverage until a policy can be issued
or denied
Includes all terms of a policy
No notice of cancellation or notice of nonrenewal otherwise required by this unit shall be
required unless the duration of the binder exceeds 60 days
2.3 Binder Statute
F.S.627.728 and 627.7281
Regarding auto coverage, an insurer shall give 5 days prior notice of cancellation of a
binder, unless the binder is replaced by a policy or another binder in the same or
another company
2.4 Casualty Insurance
Casualty, or otherwise known as property, is insurance that may include all kinds of
insurance other than life and health
2.4 Property Insurance
Any insurance wherein payment by the insurer will be paid directly to the insured or
other specifically named interests
2.4 Liability Insurance
Any insurance wherein payment will be made on behalf of the insured to another, based
upon the insured's liability to the recipient
2.4 Health Insurance
Health insurance has its own category, but its included here because licensing statutes
authorize agents licensed for "property and liability" to sell health insurance
