FLORIDA 2-20 AGENTS LICENSE EXAM REAL EXAM 2023/2024 300 QUESTIONS AND CORRECT DETAILED ANSWERS|AGRADE
FLORIDA 2-20 AGENTS LICENSE EXAM
The Florida Surplus Service Lines Office (FSLSO) was created to
oversee the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent:
Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT:
Pays insurance claims
Once license, you have how long to obtain an appointment?
48 months
Which of the following is NOT a duty of the Office of Insurance Regulation?
Submit rate filings and underwriting rules for approval
Which one of the following statements is correct?
Contractors must usually provide evidence of liability insurance before a
construction contract is granted.
From a risk management viewpoint, insurance is used to
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
Commercial general liability insurance.
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.
Insurance is not the only risk management transfer technique. When circumstances
are appropriate, transfer can be accomplished through
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?
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
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
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
Society
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.
The process of restoring an individual or organization to a pre-loss financial condition
is the process of
Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it
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
Disability insurance.
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.
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
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.
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.
The Insuring Agreement in Part A – Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT:
Limit of Liability
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