Florida Final exam 2-20 | 84 Questions and Answers With Complete Solutions
Question : The Florida Surplus Service Lines Office (FSLSO)
was created to
Correct answer: oversee the surplus lines industry in the state
Question : Which of the following is NOT a required
qualification for a General Lines Agent:
Correct answer: Seeking the license only to write controlled
business
Question : The Department of Financial Services performs the
following, EXCEPT:
Correct answer: Pays insurance claims
Question : Once license, you have how long to obtain an
appointment?
Correct answer: 48 months
Question : Which of the following is NOT a duty of the
Office of Insurance Regulation?
Correct answer: Submit rate filings and underwriting rules for
approval
Question : Which one of the following statements is correct?
Correct answer: Contractors must usually provide evidence of
liability insurance before a construction contract is granted.
Question : From a risk management viewpoint, insurance is
used to
Correct answer: Transfer the cost of losses.
Question : Liability coverage for loss exposures arising from
a business organization's premises and operations, its products, or its completed work is typically provided by
Correct answer: Commercial general liability insurance.
Question : Which one of the following statements is correct
regarding the benefits provided by insurance?
Correct answer: Insurance helps reduce the financial burden
to society by compensating accident victims.
Question : Insurance is not the only risk management transfer
technique. When circumstances are appropriate, transfer can be accomplished through
Correct answer: Noninsurance transfer techniques.
Question : 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?
Correct answer: Large number of similar exposure units
Question : 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
Correct answer: Personal liability insurance.
Question : 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
Correct answer: Risk transfer.
Question : 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
Correct answer: Society
Question : 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
