FLORIDA PERSONAL LINES Exam Questions
and Answers | 2026 Complete Exam Prep |
A+ Verified
• Insurer. CORRECT ANSWER: the person or entity that agrees to indemnify the
insured person or organization under an insurance or annuity contract.
** must have a certificate of authority from the Office of Insurance Regulation (OIR).
• Domestic. CORRECT ANSWER: is formed under the laws of Florida.
• Foreign Insurer. CORRECT ANSWER: is formed under the laws of a state, district,
territory, or commonwealth of the United States other than Florida.
• Alien insurer. CORRECT ANSWER: is incorporated and organized in any country
other than the United States.
• Admitted or Authorized Insurer. CORRECT ANSWER: An insurer that has a certificate
of authority
• Nonadmitted or Unauthorized Insurer. CORRECT ANSWER: A company that does not
have a certificate of authority
• unlicensed or unauthorized insurer. CORRECT ANSWER: is an insurer that that has
not been approved by the Office of Insurance Regulation to write insurance in the state
• Stock Insurer. CORRECT ANSWER: an incorporated insurer owned by stockholders.
Ownership is evidenced by shares of stock, and profits are distributed as stock
dividends.
• Mutual Insurer. CORRECT ANSWER: an incorporated insurer but is owned by its
policyholders, who hold policies as their evidence of ownership.
*not have permanent capital stock and has a governing body elected by its
policyholders.
• Risk Retention Group. CORRECT ANSWER: a group of similar entities who agree to
self-insure their losses. They spread the liability risk of individual members to all
members of the group.
• Fraternal Life Insurance Organizations. CORRECT ANSWER: A fraternal benefit
society is a nonprofit entity that
-operates on the lodge system;
, -has a representative form of government;
-has no capital stock; and
-sells insurance primarily to its members.
• Mutualization. CORRECT ANSWER: When a domestic fraternal benefit society may
be converted and licensed as a mutual life insurance company.
• Florida Life and Health Guaranty Association- Purpose. CORRECT ANSWER:
protects policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life
insurance policies, health insurance policies, and annuity contracts if an insurer fails to
perform its contractual obligations because it becomes impaired or insolvent.
**ALL insurers must be members including fraternity
• Florida Life and Health Guaranty Association- Powers & Duties. CORRECT ANSWER:
If a domestic insurer becomes impaired, the association can
-guarantee, assume, or reinsure the insurer's policies and contracts;
-provide money, pledges, and guarantees to assume payment of the insurer's
obligations; and
-loan money to the insurer.
If a domestic insurer becomes insolvent, the association can
-guarantee, assume, or reinsure an insurer's policies; and
-provide money, pledges, notes, or guarantees to assure payment of the insurer's
contractual obligations.
• Can an insurer advertise the that they are in membership with the FL Life and Health
Guaranty Association?. CORRECT ANSWER: No. It is unfair practice to use the
existence of this association to sell insurance.
• Reinsurance. CORRECT ANSWER: How an insurer protect their policyholder surplus.
Insurers re-insure some of the risk they have assumed by insuring it with another
insurance company.
• the ceding company. CORRECT ANSWER: insurer seeking to transfer some of its risk
• Reinsuring company. CORRECT ANSWER: insurer accepting the risk being
transferred
• Treaty Reinsurance Agreement. CORRECT ANSWER: the reinsurer agrees to cover a
negotiated share of all losses that exceed the amount the primary insurer agrees to
retain.
• Facultative Reinsurance Agreement. CORRECT ANSWER: negotiated on a risk by
risk basis and may be written on highly unusual risks, risks of very high value, and risks
and Answers | 2026 Complete Exam Prep |
A+ Verified
• Insurer. CORRECT ANSWER: the person or entity that agrees to indemnify the
insured person or organization under an insurance or annuity contract.
** must have a certificate of authority from the Office of Insurance Regulation (OIR).
• Domestic. CORRECT ANSWER: is formed under the laws of Florida.
• Foreign Insurer. CORRECT ANSWER: is formed under the laws of a state, district,
territory, or commonwealth of the United States other than Florida.
• Alien insurer. CORRECT ANSWER: is incorporated and organized in any country
other than the United States.
• Admitted or Authorized Insurer. CORRECT ANSWER: An insurer that has a certificate
of authority
• Nonadmitted or Unauthorized Insurer. CORRECT ANSWER: A company that does not
have a certificate of authority
• unlicensed or unauthorized insurer. CORRECT ANSWER: is an insurer that that has
not been approved by the Office of Insurance Regulation to write insurance in the state
• Stock Insurer. CORRECT ANSWER: an incorporated insurer owned by stockholders.
Ownership is evidenced by shares of stock, and profits are distributed as stock
dividends.
• Mutual Insurer. CORRECT ANSWER: an incorporated insurer but is owned by its
policyholders, who hold policies as their evidence of ownership.
*not have permanent capital stock and has a governing body elected by its
policyholders.
• Risk Retention Group. CORRECT ANSWER: a group of similar entities who agree to
self-insure their losses. They spread the liability risk of individual members to all
members of the group.
• Fraternal Life Insurance Organizations. CORRECT ANSWER: A fraternal benefit
society is a nonprofit entity that
-operates on the lodge system;
, -has a representative form of government;
-has no capital stock; and
-sells insurance primarily to its members.
• Mutualization. CORRECT ANSWER: When a domestic fraternal benefit society may
be converted and licensed as a mutual life insurance company.
• Florida Life and Health Guaranty Association- Purpose. CORRECT ANSWER:
protects policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life
insurance policies, health insurance policies, and annuity contracts if an insurer fails to
perform its contractual obligations because it becomes impaired or insolvent.
**ALL insurers must be members including fraternity
• Florida Life and Health Guaranty Association- Powers & Duties. CORRECT ANSWER:
If a domestic insurer becomes impaired, the association can
-guarantee, assume, or reinsure the insurer's policies and contracts;
-provide money, pledges, and guarantees to assume payment of the insurer's
obligations; and
-loan money to the insurer.
If a domestic insurer becomes insolvent, the association can
-guarantee, assume, or reinsure an insurer's policies; and
-provide money, pledges, notes, or guarantees to assure payment of the insurer's
contractual obligations.
• Can an insurer advertise the that they are in membership with the FL Life and Health
Guaranty Association?. CORRECT ANSWER: No. It is unfair practice to use the
existence of this association to sell insurance.
• Reinsurance. CORRECT ANSWER: How an insurer protect their policyholder surplus.
Insurers re-insure some of the risk they have assumed by insuring it with another
insurance company.
• the ceding company. CORRECT ANSWER: insurer seeking to transfer some of its risk
• Reinsuring company. CORRECT ANSWER: insurer accepting the risk being
transferred
• Treaty Reinsurance Agreement. CORRECT ANSWER: the reinsurer agrees to cover a
negotiated share of all losses that exceed the amount the primary insurer agrees to
retain.
• Facultative Reinsurance Agreement. CORRECT ANSWER: negotiated on a risk by
risk basis and may be written on highly unusual risks, risks of very high value, and risks
