FLORIDA 2-20 GENERAL
LINES PRACTICE EXAM
COMPLETE
Question 1: Under Florida law, what is generally required before a person may act or hold himself or herself out as an insurance agent?
Choices:
1) Only an employer identi�cation card 2) A securities registration only 3) A current license and an appropriate appointment 4) Only completion of a prelicensing course
Correct Answer: A current license and an appropriate appointment
Explanation: Florida generally requires an insurance agent to be currently licensed by the Department of Financial Services and appointed by an appropriate appointing entity or person.Page 1
Question 2: After a covered casualty loss, damaged property still has value because it can be sold for parts. What term describes that remaining value?
Choices:
1) Salvage value 2) Coinsurance value 3) Earned premium 4) Face amount
Correct Answer: Salvage value
Explanation: Salvage value is the residual value of damaged property after a loss, such as the amount obtainable from selling usable parts or materials.Question 3: A Florida dwelling is insured on a replacement-cost basis and su�ers a covered building loss. Subject to the policy and statute, what is the usual sequence of payment?
Choices:
1) The insurer may always withhold the entire claim until reconstruction is complete 2) The insurer initially pays only the land value 3) The insurer must pay twice the actual cash value before repairs begin 4) The insurer initially pays at least the actual cash value less the deductible, then pays additional replacement-cost amounts as repair or replacement work is performed and expenses are incurred Correct Answer: The insurer initially pays at least the actual cash value less the deductible, then pays additional replacement-cost amounts as repair or replacement work is performed and expenses are incurred Explanation: Florida law generally requires an initial payment of at least the actual cash value of the insured loss, less the deductible, with remaining replacement-cost amounts paid as work is performed and expenses are incurred, subject to applicable policy and statutory provisions.Page 2
Question 4: An eligible Florida employer cannot obtain workers' compensation
insurance in the voluntary market. Which organization is associated with the residual workers' compensation market?
Choices:
1) Florida Automobile Joint Underwriting Association 2) Citizens Property Insurance Corporation 3) Florida Workers' Compensation Joint Underwriting Association 4) Federal Emergency Management Agency
Correct Answer: Florida Workers' Compensation Joint Underwriting Association
Explanation: The Florida Workers' Compensation Joint Underwriting Association provides a residual-market mechanism for eligible employers unable to obtain workers' compensation coverage in the voluntary market.Question 5: A standard route to qualify for the Florida 2-20 Resident General Lines examination is completion of an approved property and casualty prelicensing course. How many hours is that course?
Choices:
1) 200 hours 2) 40 hours 3) 60 hours 4) 100 hours
Correct Answer: 200 hours
Explanation: Florida DFS identi�es an approved 200-hour property and casualty prelicensing course as one standard route to the 2-20 examination.Page 3