Florida 2-20 – Statutes Practice Exam

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• What act is described as inducing a person to cancel insurance through misleading information?
• How many hours of continuing education are required for licensed insurance agents in Florida every two years?
• What type of organization is typically created to benefit a specific group or community through insurance?
• Which roof type is eligible for a discount under certain conditions?
• For the calculation of recovery after a loss, what formula should an insured remember?
• What distinguishes 'actual cash value' from 'replacement cost'?
• What does 'full coverage' refer to in an auto insurance policy?
• An insurance company formed under Florida laws is referred to as:
• Which department oversees the Florida Comprehensive Hurricane Damage Mitigation Program?
• What is a surplus lines insurer?
• How many days notice can an insurer give for cancellation within the first 90 days of a policy?
• What endorsement is available with the standard homeowners forms used by Citizens Property Insurance Corporation?
• If a licensee fails to be appointed, how long will it take before the license is terminated?
• If a licensee's appointment is terminated, how long do they have to be reappointed before their license is terminated?
• What part of an insurance policy summarizes the guarantees provided by the insurance company?
• If an agent has been licensed for more than 6 years, how many hours of continuing education are required every 2 years?
• What is the purpose of underwriting in insurance?
• What does 'co-insurance' mean regarding property insurance?
• With whom can a licensed agent share commissions?
• An insurance agent without an appointment from a Homeowners insurance carrier can:
• When making a claim, the policyholder will likely need to provide:
• For wind mitigation premium discount eligibility, roof coverings must be:
• How is self-insurance characterized in terms of risk management?
• Deceiving people for one's own material gain can be called:
• Which type of coverage is NOT available in policies issued through Citizens Property Insurance Corporation?
• Which of the following is NOT a penalty for aiding an unauthorized insurer?
• When Frank's homeowners insurer went bankrupt, what should he do?
• If there is not a more specific statute for a particular type of policy, the number of days notice required for cancellation or non-renewal is probably:
• What is the maximum service fee for financing premium that an agent or agency can charge?
• What does the term 'loss ratio' signify in the insurance industry?
• Under which market condition is fraudulent activity by unauthorized insurers more likely to occur?
• What is the primary purpose of the Florida Statutes in relation to insurance?
• What term best describes the act of pressuring a borrower to purchase insurance from the bank when applying for a loan?
• What is typically included in an employer’s group health plan?
• What is it called when the majority of insurance written is for family members?
• What are 'personal lines' in the context of insurance?
• What is the term for knowingly making misleading representations of any insurance policy to induce a person to cancel their insurance?
• What is the term used to describe the insurance coverage that is mandated by state law?
• What term refers to parts of an insurance policy that remove coverage for certain circumstances?
• A General Lines Agent may share his commission with all of the following, EXCEPT:
• Which of the following contributes to the financial integrity of insurance operations?
• What does 'subrogation' mean in insurance terminology?
• An insurance company structured in a different state is termed:
• How long must an agent maintain records of an insurance policy in their office?
• What are the steps to obtaining an insurance license?
• What is the minimum amount of liability coverage legally required for automobile insurance in Florida?
• What is the main purpose of the Florida Surplus Lines Services Office?
• What is the formal process of denying claims through misleading information called?
• What is it called when one makes a false or malicious statement to injure someone?
• Which elements must be included in an insurance contract for it to be valid in Florida?
• What is required for an insurer to transact insurance in Florida?
• What can an agent who does not represent any insurer do to keep their license?
• What is 'insurance premium tax' in Florida?
• Which of the following scenarios suggests ethical misconduct in insurance practice?
• What is the main focus of Florida Statute 627 concerning insurance?
• Tammy says her inventory was stolen by local bandits. The insurance company asks her to file a proof of loss form with supporting evidence. What is likely to happen next?
• How long are insurers required to maintain records of claims and policies?
• What type of insurance is where payment is made on behalf of the insured to another party?
• Which type of insurance cannot be transacted with a general lines insurance license?
• What information must be included on an insurance policy declaration page?
• Which statement about the Florida Surplus Lines Services Office (FSLSO) is NOT true?
• What must happen before an insurance contract can be canceled by an insurer?
• What is the purpose of the 'Florida Insurance Guaranty Association'?
• How is a licensee's authority to represent an insurance company documented?
• Which type of coverage involves compensating for damages related to wrongful acts?
• Under ERISA, what was a major goal concerning health plans?
• If someone would suffer economic loss from damage to their property, they have:
• Which part of an insurance policy contains the details of the coverage provided?
• What best describes 'premium financing'?
• Which term describes misleading information provided to clients about insurance policies?
• How do statutory policies primarily differ from non-statutory policies?
• What is the term for charging an applicant for additional coverage without consent?
• Which organization maintains a fund to guarantee claim payments for bankrupt insurance carriers?
• Which function can be accomplished using the Appraisal clause of a policy?
• What is the Florida Mediator Program designed to do?
• What should ethical conduct as an agent prioritize?
• A General Lines Agent licensed for less than six years must complete how many hours of continuing education every two years?
• In which situation would one not have an insurable interest?
• What does the term 'Admitted Insurer' refer to?
• In Florida, what is the required notice period for an insurer to cancel a policy for non-payment?
• What does 'waiting period' refer to in health insurance policies?
• What is one of the significant roles of the Chief Financial Officer in Florida's Financial Services Commission?
• What is the function of a 'rider' in insurance policies?
• Under what condition would an insurance company deny a claim for lack of proper documentation?
• What is the main purpose of the Florida Consumer Insurance Advocate?
• Which of the following deductibles is not eligible for private passenger autos with the Florida Auto Joint Underwriting Association?
• What is required to obtain a Florida 2-20 license?
• Which of the following is NOT overseen by the Office of Insurance Regulation?
• How often must insurers submit their financial statements to the Department?
• What conditions allow a policyholder to cancel a policy during the free look period?
• Which insurance concept involves covering risks that an individual or entity cannot afford independently?
• What part of an insurance policy provides details such as the name of the insured and the policy limits?
• What will the insured recover based on a $40,000 loss if her coverage is $60,000 with an 80% coinsurance clause and the building's value at the time of loss is $100,000?
• In Florida, what is the timeframe for notifying changes in an agency's ownership?
• What is the liability coverage limit available through Florida Auto JU?
• Which of the following is a requirement for roof covering to qualify for wind mitigation discounts?
• How much coverage must a policy holder have to meet the implications of an 80% coinsurance clause?
• What is a common practice that can be identified as “churning”?
• What is defined as any unfair practice among the competition in the insurance industry?
• The possible consequence of loss or damage to property creates an insurable interest. This indicates that a person has an insurable interest to the extent of:
• How long is a temporary insurance license valid?
• In the event of a loss, how much will Mac recover under his property policy, considering his coinsurance clause?
• Which is a requirement for obtaining a standard insurance license in Florida?
• A social organization that provides insurance or other benefits only to its members is referred to as?
• What is the primary role of the Florida Department of Financial Services?
• Which of the following is considered "transacting insurance"?
• The role of the Commissioner in Florida's insurance regulation primarily involves:
• What does the 'telemarketing rule' regarding insurance solicitation prohibit?
• What does 'contractual liability' mean in insurance?
• Which responsibility does the Office of Insurance Regulation NOT hold?
• What does the Florida Insurance Code primarily regulate?
• What is the maximum period for suspension or revocation specified by the CFO?
• Which syndicate consists of all licensed companies in Florida that write auto insurance?
• What action can a policyholder take if they believe a claim was wrongfully denied?
• To indemnify is best described as which of the following?
• What generally signifies a successful employer group health plan?
• The office of Florida government that is specifically charged with approving policy forms for admitted insurance carriers is:
• Which type of coverage is typically NOT included for commercial automobiles in the Florida Auto Joint Underwriting Association?
• In Florida, what is the minimum age for entering into a contract for insurance?
• What is NOT a function of the Office of Insurance Regulation?
• Which of the following is eligible for coverage with Citizens Property Insurance Corporation?
• For a General Lines Agent licensed for more than six years, how many continuing education hours are required every two years?
• How long does a licensee have to notify the Department of Insurance about a change in name or address?
• How is 'negligence' defined in the context of liability insurance?
• The term for when an insurance policy has restrictions based on certain risks is?
• The term 'insuring agreement' refers to which part of an insurance policy?
• What does 'excess and surplus lines insurance' cover?
• What do you call an insurance company formed in any state other than Florida?
• An insurance contract is:
• What significant requirement must be fulfilled by insurance companies under the regulation?
• An insurance company that is owned by policyholders is called a:
• What are 'exclusions' in an insurance policy?
• What is a crucial factor that determines the loss ratio for an insurance company?
• What is defined as 'moral hazard' in insurance terms?
• An insurance company established in Zurich, Switzerland is classified as:
• How can a policyholder contest a denied claim under Florida law?
• Which of the following is NOT regulated by the Office of Financial Regulation?
• What constitutes an exception to Citizen's uninsurable properties?
• What is the primary responsibility of the CFO of Florida?
• Which of the following is NOT a member of the Financial Service Commission of Florida?
• What is the purpose of insurance provided by an employer’s group plan?
• What is a 'Certificate of Authority' in the context of insurance?
• When an insurer denies a claim, what disclosure must it provide?
• What is the maximum percentage a rebate schedule can exceed according to regulations?
• Which of the following best describes the waiting period in insurance?
• Which is a valid reason for including coinsurance clauses in insurance policies?
• An Adjuster can operate under which department's regulation?
• The part of an insurance contract that contains rules and obligations of the insured and the carrier is called what?
• If an insurer in Florida runs out of money to pay claims, the Department of Financial Services will likely do what?
• Which of the following is NOT a characteristic of self-insurance?
• What is the term for knowingly making a false statement on an insurance application?
• Whenever an agent accepts premiums, the agent is a(n):
• What is it called when the insured fails to reveal a known fact that affects the policy?
• What term is used for the unauthorized practice of utilizing certain endorsements to pressure clients?
• An insurance company formed in London that conducts business in Florida is classified as:
• Which of the following is NOT a responsibility of the Division of Agents and Agency Services?
• Which of the following is NOT a requirement for agents in Florida when rebating a portion of their commissions?
• What is a convenience used to provide temporary insurance called?
• Which bureau is responsible for holding onto unclaimed property, checks, and financial instruments?
• Under what conditions is rebating allowed?
• What must an agent report to the Department of Insurance within a specific time frame?
• What is the consequence for failing to maintain an appointment in Florida?
• What role does risk management play in the insurance sector?
• What does 'underwriting' in the context of the insurance industry involve?
• What does a high loss ratio indicate about an insurance company?
• How many hours of continuing education is a newly licensed agent required to have in their first compliance period?
• What is 'deductible' in insurance policies?
• What is the maximum fine for each non-willful violation under the CFO for unfair methods of competition?
• How many days does a licensee have to notify the Department of Insurance after changing their name or address?
• Using an incomplete comparison of insurance policies to persuade a client is known as?
• Which of the following is not an eligible coverage for commercial automobiles in the Florida Auto Joint Underwriting Association?
• What involves re-issuing the same policy to generate commissions?
• What is the maximum penalty for an insurance company failing to file a rate with the Department of Financial Services?
• What is the legal time frame to report a claim for a property policy in Florida?
• What must insurers do if they change the terms of a policy mid-term?
• FIGA, the Florida Insurance Guaranty Association, is best described as:
• What role do waiting periods typically serve in health insurance policies?
• What does MEW stand for in the context of insurance?
• What is the maximum continuing education hours required for a General Lines Agent every two years if licensed for six years or more?
• Which of the following is NOT an example of opening protection?
• What does the concept of 'indemnity' in insurance imply?
• Which entity is regulated by the Office of Financial Regulation (OFR)?
• What does 'claims handling' refer to?
• Statutes of limitations serve to?
• Which type of insurance company is NOT categorized as an 'Alien' company?
• In which section of a policy would the 'Duties after a loss has occurred' clause typically be found?
• What term best describes transferring risk from insured to insurer?
• What is it called when an insurer adopts a provision that provides broader coverage automatically?
• Which of the following accurately describes arbitration in the context of an insurance dispute?
• What is defined as a risk management technique where an entity retains risks and pays for losses directly?
• What is one of the main responsibilities of a claims adjuster?
• Which department primarily enforces the statutory law known as ERISA?
• How much will Jane recover under her property policy if her total property value is destroyed, given an 80% coinsurance clause?
• What term refers to the authority given to a licensee to transact or adjust insurance?
• Which Florida statute pertains specifically to insurance fraud?
• If an insured experiences a total loss, how does the Valued Policy Law apply?
• What type of form is attached to a property insurance policy to clarify which perils are covered?
• Which entity is primarily responsible for regulating banks in Florida?
• What is a 'provisional license' in the context of Florida insurance?
• What is 'binding authority' in the context of insurance agents?
• What type of insurance involves the insurer paying the insured directly?
• In Florida, how is 'unfair trade practice' defined?
• What does the term 'insurable interest' signify in insurance?
• Which type of insurance specifically protects against harm to third parties?
• Which of the following actions is NOT considered sliding?
• What penalty is imposed for each non-willful violation under the CFO's regulations?
• What is the insurance provision that helps to lower rates when insured values are close to property values?
• What is a primary function of the Office of Insurance Regulation in Florida?
• Statutory insurance policies are best defined as?
• Which entity handles complaints regarding denied claims in Florida?
• Under the CFO, what is the Department of Financial Services required to investigate?
• Which of the following are grounds for compulsory refusal, suspension, or revocation of a license?
• The continuing education statutes require a minimum of how many hours on the subject of ethics?
• What is the term for willful deception of an insurance policy through the dissemination of information?
• Which document typically governs the relationship and responsibilities between the insurer and insured?
• What is the maximum fine for failing to notify the Insurance Department of a change of address?
• What is the minimum number of continuing education hours required for a General Lines Agent every two years if licensed for less than six years?
• What do you call an insurance company that is authorized to operate in Florida?
• What type of insurance can be purchased only for certain select individuals according to Florida law?
• A license for writing insurance only on family members or business relationships is referred to as?