FLORIDA 2-20 AGENTS LICENSE FINAL EXAM AND STUDY
GUIDE NEWEST ACTUAL EXAM
Question 1
The Florida Surplus Lines Service Office (FSLSO) was created to:
A) Process all insurance claims in Florida.
B) Oversee the surplus lines industry in the state.
C) Issue licenses to insurance agents.
D) Regulate standard admitted insurance carriers.
E) Collect state premium taxes from all insurers.
Correct Answer: B) oversee the surplus lines industry in the state
Rationale: The FSLSO is a self-funded, non-profit organization established to provide
services to the Florida surplus lines market, primarily collecting taxes, maintaining
a database, and ensuring compliance.
Question 2
Which of the following is NOT a required qualification for a General Lines Agent in Florida?
A) Be at least 18 years of age.
B) Be a resident of Florida.
C) Complete pre-licensing education requirements.
D) Pass a state licensing examination.
E) Seeking the license only to write controlled business.
Correct Answer: E) Seeking the license only to write controlled business
Rationale: Florida law prohibits individuals from obtaining an insurance license
primarily for the purpose of writing "controlled business" (insurance on
themselves, family members, or business associates). The other options are
standard qualification requirements.
,Question 3
The Department of Financial Services (DFS) performs the following, EXCEPT:
A) Licenses and appoints insurance agents.
B) Investigates insurance fraud.
C) Pays insurance claims.
D) Protects consumers.
E) Administers various state insurance programs.
Correct Answer: C) Pays insurance claims
Rationale: The Department of Financial Services (and its Office of Insurance
Regulation) is a regulatory body. Insurance companies (insurers) are responsible
for paying claims, not the state regulatory department.
Question 4
Once licensed as a general lines agent in Florida, you have how long to obtain an appointment
with an insurer?
A) 12 months
B) 24 months
C) 36 months
D) 48 months
E) 60 months
Correct Answer: D) 48 months
Rationale: In Florida, an individual must obtain an appointment with an insurance
company within 48 months of becoming licensed. Failure to do so will result in the
license becoming inactive.
,Question 5
Which of the following is NOT a duty of the Office of Insurance Regulation (OIR) in Florida?
A) Approve insurance policy forms.
B) Regulate insurance company solvency.
C) Investigate market conduct of insurers.
D) Submit rate filings and underwriting rules for approval.
E) Protect insurance consumers.
Correct Answer: D) Submit rate filings and underwriting rules for approval
Rationale: Insurance companies (insurers) submit rate filings and underwriting rules
to the OIR for approval, but the OIR itself does not perform this submission; it
reviews and approves them.
Question 6
Which one of the following statements is correct regarding contractor insurance requirements?
A) Contractors are never required to provide evidence of liability insurance.
B) Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
C) Only large commercial contractors need liability insurance.
D) Liability insurance is optional for all contractors.
E) Contractors are only required to have workers' compensation insurance.
Correct Answer: B) Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
Rationale: General liability insurance is a standard requirement for contractors to
, protect against claims of bodily injury or property damage arising from their
operations, and clients typically demand proof of coverage.
Question 7
From a risk management viewpoint, insurance is used to:
A) Avoid all risks.
B) Reduce the frequency of losses.
C) Transfer the cost of losses.
D) Retain all losses.
E) Eliminate all risk exposure.
Correct Answer: C) Transfer the cost of losses.
Rationale: Insurance is a mechanism for risk transfer, where an individual or entity
pays a premium to an insurer, who then assumes the financial burden of covered
losses.
Question 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:
A) Commercial property insurance.
B) Workers' compensation insurance.
C) Commercial general liability insurance.
D) Professional liability insurance.
E) Business interruption insurance.
Correct Answer: C) Commercial general liability insurance.
Rationale: Commercial General Liability (CGL) insurance is a broad type of
GUIDE NEWEST ACTUAL EXAM
Question 1
The Florida Surplus Lines Service Office (FSLSO) was created to:
A) Process all insurance claims in Florida.
B) Oversee the surplus lines industry in the state.
C) Issue licenses to insurance agents.
D) Regulate standard admitted insurance carriers.
E) Collect state premium taxes from all insurers.
Correct Answer: B) oversee the surplus lines industry in the state
Rationale: The FSLSO is a self-funded, non-profit organization established to provide
services to the Florida surplus lines market, primarily collecting taxes, maintaining
a database, and ensuring compliance.
Question 2
Which of the following is NOT a required qualification for a General Lines Agent in Florida?
A) Be at least 18 years of age.
B) Be a resident of Florida.
C) Complete pre-licensing education requirements.
D) Pass a state licensing examination.
E) Seeking the license only to write controlled business.
Correct Answer: E) Seeking the license only to write controlled business
Rationale: Florida law prohibits individuals from obtaining an insurance license
primarily for the purpose of writing "controlled business" (insurance on
themselves, family members, or business associates). The other options are
standard qualification requirements.
,Question 3
The Department of Financial Services (DFS) performs the following, EXCEPT:
A) Licenses and appoints insurance agents.
B) Investigates insurance fraud.
C) Pays insurance claims.
D) Protects consumers.
E) Administers various state insurance programs.
Correct Answer: C) Pays insurance claims
Rationale: The Department of Financial Services (and its Office of Insurance
Regulation) is a regulatory body. Insurance companies (insurers) are responsible
for paying claims, not the state regulatory department.
Question 4
Once licensed as a general lines agent in Florida, you have how long to obtain an appointment
with an insurer?
A) 12 months
B) 24 months
C) 36 months
D) 48 months
E) 60 months
Correct Answer: D) 48 months
Rationale: In Florida, an individual must obtain an appointment with an insurance
company within 48 months of becoming licensed. Failure to do so will result in the
license becoming inactive.
,Question 5
Which of the following is NOT a duty of the Office of Insurance Regulation (OIR) in Florida?
A) Approve insurance policy forms.
B) Regulate insurance company solvency.
C) Investigate market conduct of insurers.
D) Submit rate filings and underwriting rules for approval.
E) Protect insurance consumers.
Correct Answer: D) Submit rate filings and underwriting rules for approval
Rationale: Insurance companies (insurers) submit rate filings and underwriting rules
to the OIR for approval, but the OIR itself does not perform this submission; it
reviews and approves them.
Question 6
Which one of the following statements is correct regarding contractor insurance requirements?
A) Contractors are never required to provide evidence of liability insurance.
B) Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
C) Only large commercial contractors need liability insurance.
D) Liability insurance is optional for all contractors.
E) Contractors are only required to have workers' compensation insurance.
Correct Answer: B) Contractors must usually provide evidence of liability insurance
before a construction contract is granted.
Rationale: General liability insurance is a standard requirement for contractors to
, protect against claims of bodily injury or property damage arising from their
operations, and clients typically demand proof of coverage.
Question 7
From a risk management viewpoint, insurance is used to:
A) Avoid all risks.
B) Reduce the frequency of losses.
C) Transfer the cost of losses.
D) Retain all losses.
E) Eliminate all risk exposure.
Correct Answer: C) Transfer the cost of losses.
Rationale: Insurance is a mechanism for risk transfer, where an individual or entity
pays a premium to an insurer, who then assumes the financial burden of covered
losses.
Question 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:
A) Commercial property insurance.
B) Workers' compensation insurance.
C) Commercial general liability insurance.
D) Professional liability insurance.
E) Business interruption insurance.
Correct Answer: C) Commercial general liability insurance.
Rationale: Commercial General Liability (CGL) insurance is a broad type of
