Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
The Florida Surplus Service Lines Office (FSLSO) was created to -
ANSWER: oversee the surplus lines industry in the state
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 %^%$#&
^*(**^$$
general liability insurance. %^&*^$%
^&%^$^$
Which one of the following statements is correct regarding the &^*%$^*
benefits provided by insurance? - ANSWER: Insurance helps &%#$%^
^&^%%$
reduce the financial burden to society by compensating accident
victims.
,Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
Insurance is not the only risk management transfer technique.
When circumstances are appropriate, transfer can be
accomplished through - ANSWER: Noninsurance transfer
techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on
wheels. He plans to drive it to special events at schools around
the country where it will serve as a mobile billboard to promote
his product. Oscar is surprised to learn that insurers are reluctant
to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is
Oscar's vehicle least likely to meet? - ANSWER: Large number of
similar exposure units
Liability coverage to individuals and families for bodily injury and
property damage arising from the insured's personal premises or
activities is typically provided by - ANSWER: Personal liability
insurance.
Sally is a recent college graduate who lives in the suburbs and
drives to work daily in the city. She recognizes that owning a car
creates both property damage and liability exposures for her and )_(*^&$%
at the same time she has the burden of student loans. For %#$%$%
@%^$%$
someone in Sally's circumstances the most practical risk %^%$#&
management technique for dealing with her auto-related loss ^*(**^$$
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
,Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
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 ^*(**^$$
bills. What is the maximum Joe can collect from UM from all %^&*^$%
^&%^$^$
sources from this accident? - ANSWER: $0 &^*%$^*
&%#$%^
Keith commutes into the city in his car, and he provides a ride to ^&^%%$
two co-workers who live near him. Every other week, the co-
workers take turns buying the gasoline for Keith's car. Does this
activity create a public or livery conveyance situation that would
, Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
preclude liability coverage under Keith's Personal Auto Policy
(PAP)? - ANSWER: No, because Keith is involved in a share-the-
expense car pool.
An insured covers his owned auto with more than one Personal
Auto Policy (PAP), each from a different insurer. In the event of a
claim for medical payments coverage, - ANSWER: Each insurer
pays its pro rata share based on the proportion that its limit of
liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the
Personal Auto Policy contains descriptions of all of the following
EXCEPT: - ANSWER: Limit of Liability
Tom and Martha insure their house with an unendorsed HO-3—
Special Form (HO-3) with a Coverage A—Dwelling limit of
$300,000, which is the replacement cost of the house. A thief
breaks into the house while Tom and Martha are on vacation and
steals the following items: •$500 cash•$50,000 stock certificates.
Ignoring any deductible that may apply, how much, if any, will Tom
and Martha's insurer pay for the loss of the items? - ANSWER:
$1,700 )_(*^&$%
%#$%$%
Under the HO-3—Special Form (HO-3) Section I—Conditions, the @%^$%$
Loss Settlement condition - ANSWER: Establishes the process %^%$#&
^*(**^$$
for determining the amount to be paid for a property loss. %^&*^$%
^&%^$^$
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 - ANSWER: Excluded.
Adam and his insurer disagree on the amount of a loss covered by
his homeowners policy. Adam wants the insurer to pay $10,000
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
The Florida Surplus Service Lines Office (FSLSO) was created to -
ANSWER: oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a
General Lines Agent: - ANSWER: Seeking the license only to write
controlled business
The Department of Financial Services performs the following,
EXCEPT: - ANSWER: Pays insurance claims
Once license, you have how long to obtain an appointment? -
ANSWER: 48 months
Which of the following is NOT a duty of the Office of Insurance
Regulation? - ANSWER: Submit rate filings and underwriting rules
for approval
Which one of the following statements is correct? - ANSWER:
Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
From a risk management viewpoint, insurance is used to -
ANSWER: Transfer the cost of losses.
Liability coverage for loss exposures arising from a business )_(*^&$%
%#$%$%
organization's premises and operations, its products, or its @%^$%$
completed work is typically provided by - ANSWER: Commercial %^%$#&
^*(**^$$
general liability insurance. %^&*^$%
^&%^$^$
Which one of the following statements is correct regarding the &^*%$^*
benefits provided by insurance? - ANSWER: Insurance helps &%#$%^
^&^%%$
reduce the financial burden to society by compensating accident
victims.
,Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
Insurance is not the only risk management transfer technique.
When circumstances are appropriate, transfer can be
accomplished through - ANSWER: Noninsurance transfer
techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on
wheels. He plans to drive it to special events at schools around
the country where it will serve as a mobile billboard to promote
his product. Oscar is surprised to learn that insurers are reluctant
to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is
Oscar's vehicle least likely to meet? - ANSWER: Large number of
similar exposure units
Liability coverage to individuals and families for bodily injury and
property damage arising from the insured's personal premises or
activities is typically provided by - ANSWER: Personal liability
insurance.
Sally is a recent college graduate who lives in the suburbs and
drives to work daily in the city. She recognizes that owning a car
creates both property damage and liability exposures for her and )_(*^&$%
at the same time she has the burden of student loans. For %#$%$%
@%^$%$
someone in Sally's circumstances the most practical risk %^%$#&
management technique for dealing with her auto-related loss ^*(**^$$
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
,Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
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 ^*(**^$$
bills. What is the maximum Joe can collect from UM from all %^&*^$%
^&%^$^$
sources from this accident? - ANSWER: $0 &^*%$^*
&%#$%^
Keith commutes into the city in his car, and he provides a ride to ^&^%%$
two co-workers who live near him. Every other week, the co-
workers take turns buying the gasoline for Keith's car. Does this
activity create a public or livery conveyance situation that would
, Florida 2-20 General Lines Property & Casualty Agent
License | Detailed 2025 Study Resource with Practice
Questions, Correct Answers, Licensing Steps, and Exam
Preparation Tips
preclude liability coverage under Keith's Personal Auto Policy
(PAP)? - ANSWER: No, because Keith is involved in a share-the-
expense car pool.
An insured covers his owned auto with more than one Personal
Auto Policy (PAP), each from a different insurer. In the event of a
claim for medical payments coverage, - ANSWER: Each insurer
pays its pro rata share based on the proportion that its limit of
liability bears to the total of applicable limits.
The Insuring Agreement in Part A - Liability Coverage of the
Personal Auto Policy contains descriptions of all of the following
EXCEPT: - ANSWER: Limit of Liability
Tom and Martha insure their house with an unendorsed HO-3—
Special Form (HO-3) with a Coverage A—Dwelling limit of
$300,000, which is the replacement cost of the house. A thief
breaks into the house while Tom and Martha are on vacation and
steals the following items: •$500 cash•$50,000 stock certificates.
Ignoring any deductible that may apply, how much, if any, will Tom
and Martha's insurer pay for the loss of the items? - ANSWER:
$1,700 )_(*^&$%
%#$%$%
Under the HO-3—Special Form (HO-3) Section I—Conditions, the @%^$%$
Loss Settlement condition - ANSWER: Establishes the process %^%$#&
^*(**^$$
for determining the amount to be paid for a property loss. %^&*^$%
^&%^$^$
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 - ANSWER: Excluded.
Adam and his insurer disagree on the amount of a loss covered by
his homeowners policy. Adam wants the insurer to pay $10,000
