FLORIDA 2-20 AGENTS LICENSE
EXAM REAL/BEST EXAM
2024/2025 200 QUESTIONS AND
CORRECT DETAILED
ANSWERS|A+GRADED
1.The Florida Surplus Service Lines Office (FSLSO) was created to – oversee the
surplus lines industry in the state
2.Which of the following is NOT a required qualification for a General Lines Agent: -
Seeking the license only to write controlled business
3.The Department of Financial Services performs the following, EXCEPT: - Pays
insurance claims
4.Once license, you have how long to obtain an appointment? - 48 months
5.Which of the following is NOT a duty of the Office of Insurance Regulation? - Submit
rate filings and underwriting rules for approval
6.Which one of the following statements is correct? - Contractors must usually provide
evidence of liability insurance before a construction contract is granted.
7.From a risk management viewpoint, insurance is used to - Transfer the cost of losses.
8.Liability coverage for loss exposures arising from a business organization's premises
and operations, its products, or its completed work is typically provided by - Commercial
general liability insurance.
9.Which one of the following statements is correct regarding the benefits provided by
insurance? - Insurance helps reduce the financial burden to society by compensating
accident victims.
10.Insurance is not the only risk management transfer technique. When circumstances
are appropriate, transfer can be accomplished through - Noninsurance transfer
techniques.
11.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? - Large number of
similar exposure units
12.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 -
Personal liability insurance.
13.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 - Risk transfer.
14.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 - Society
15.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 - The
potential for financial ruin.
16.The process of restoring an individual or organization to a pre-loss financial condition
is the process of - Indemnification
17.Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - Increases the total cost of insurance
18.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 - Disability insurance.
19.Which of the following is/are not a "your covered auto" under a Personal Auto Policy
for Liability? - The 1990 Chevy 22 days after you purchase it as an additional vehicle for
your son who just got his license.
20.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? - $0
21.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)? - No, because
Keith is involved in a share-the-expense car pool.
, 22.An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments coverage, -
Each insurer pays its pro rata share based on the proportion that its limit of liability
bears to the total of applicable limits.
23.The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: - Limit of Liability
24.Tom and Martha insure their house with an unendorsed HO-3—Special Form (HO-3)
with a Coverage A—Dwelling limit of $300,000, which is the replacement cost of the
house. A thief breaks into the house while Tom and Martha are on vacation and steals
the following items: •$500 cash•$50,000 stock certificates. Ignoring any deductible that
may apply, how much, if any, will Tom and Martha's insurer pay for the loss of the
items? - $1,700
25.Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - Establishes the process for determining the amount to be paid for a property
loss.
26.Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3) that
is destroyed, confiscated, or seized by order of any governmental or public authority is -
Excluded.
27.Adam and his insurer disagree on the amount of a loss covered by his homeowners
policy. Adam wants the insurer to pay $10,000 toward the loss. The insurer's
representative feels that the loss should be valued at $5,000. How could the appraisal
process resolve this situation? - Adam and the insurer will each select an appraiser, and
the two appraisers will submit their differences to an impartial umpire who will reach a
resolution.
28.Which one of the following has special limits of liability within Coverage C of the HO-
3—Special Form (HO-3)? - Theft of firearms
29.A storm causes power lines to break ten miles from the insured's premises. The loss
of electrical power causes food in the insured's freezer to thaw and spoil. Coverage for
this loss is - Excluded because the power failure occurred off the residence premises.
30.If law enforcement officials seize an insured's personal computer to search for files
that might be related to a crime, the insured under an HO-3—Special Form (HO-3) may
be unsuccessful in claiming a theft loss on the computer due to the - Governmental
Action exclusion.
31.Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-3)
policy. Sam stores a small fishing boat and trailer behind the house. While they are out
for the evening, a fire destroys most of their kitchen and completely destroys the boat
and trailer. Assuming Sam's boat and trailer are valued at $4,000 and ignoring any
EXAM REAL/BEST EXAM
2024/2025 200 QUESTIONS AND
CORRECT DETAILED
ANSWERS|A+GRADED
1.The Florida Surplus Service Lines Office (FSLSO) was created to – oversee the
surplus lines industry in the state
2.Which of the following is NOT a required qualification for a General Lines Agent: -
Seeking the license only to write controlled business
3.The Department of Financial Services performs the following, EXCEPT: - Pays
insurance claims
4.Once license, you have how long to obtain an appointment? - 48 months
5.Which of the following is NOT a duty of the Office of Insurance Regulation? - Submit
rate filings and underwriting rules for approval
6.Which one of the following statements is correct? - Contractors must usually provide
evidence of liability insurance before a construction contract is granted.
7.From a risk management viewpoint, insurance is used to - Transfer the cost of losses.
8.Liability coverage for loss exposures arising from a business organization's premises
and operations, its products, or its completed work is typically provided by - Commercial
general liability insurance.
9.Which one of the following statements is correct regarding the benefits provided by
insurance? - Insurance helps reduce the financial burden to society by compensating
accident victims.
10.Insurance is not the only risk management transfer technique. When circumstances
are appropriate, transfer can be accomplished through - Noninsurance transfer
techniques.
11.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? - Large number of
similar exposure units
12.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 -
Personal liability insurance.
13.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 - Risk transfer.
14.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 - Society
15.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 - The
potential for financial ruin.
16.The process of restoring an individual or organization to a pre-loss financial condition
is the process of - Indemnification
17.Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - Increases the total cost of insurance
18.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 - Disability insurance.
19.Which of the following is/are not a "your covered auto" under a Personal Auto Policy
for Liability? - The 1990 Chevy 22 days after you purchase it as an additional vehicle for
your son who just got his license.
20.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? - $0
21.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)? - No, because
Keith is involved in a share-the-expense car pool.
, 22.An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments coverage, -
Each insurer pays its pro rata share based on the proportion that its limit of liability
bears to the total of applicable limits.
23.The Insuring Agreement in Part A - Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: - Limit of Liability
24.Tom and Martha insure their house with an unendorsed HO-3—Special Form (HO-3)
with a Coverage A—Dwelling limit of $300,000, which is the replacement cost of the
house. A thief breaks into the house while Tom and Martha are on vacation and steals
the following items: •$500 cash•$50,000 stock certificates. Ignoring any deductible that
may apply, how much, if any, will Tom and Martha's insurer pay for the loss of the
items? - $1,700
25.Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss Settlement
condition - Establishes the process for determining the amount to be paid for a property
loss.
26.Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3) that
is destroyed, confiscated, or seized by order of any governmental or public authority is -
Excluded.
27.Adam and his insurer disagree on the amount of a loss covered by his homeowners
policy. Adam wants the insurer to pay $10,000 toward the loss. The insurer's
representative feels that the loss should be valued at $5,000. How could the appraisal
process resolve this situation? - Adam and the insurer will each select an appraiser, and
the two appraisers will submit their differences to an impartial umpire who will reach a
resolution.
28.Which one of the following has special limits of liability within Coverage C of the HO-
3—Special Form (HO-3)? - Theft of firearms
29.A storm causes power lines to break ten miles from the insured's premises. The loss
of electrical power causes food in the insured's freezer to thaw and spoil. Coverage for
this loss is - Excluded because the power failure occurred off the residence premises.
30.If law enforcement officials seize an insured's personal computer to search for files
that might be related to a crime, the insured under an HO-3—Special Form (HO-3) may
be unsuccessful in claiming a theft loss on the computer due to the - Governmental
Action exclusion.
31.Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO-3)
policy. Sam stores a small fishing boat and trailer behind the house. While they are out
for the evening, a fire destroys most of their kitchen and completely destroys the boat
and trailer. Assuming Sam's boat and trailer are valued at $4,000 and ignoring any
