FL P&C Exam Flashcards

Q: How many questions are on the Florida 2-20 General Lines exam?

Pearson VUE's 2026 Florida content outline lists the General Lines exam at 160 scored questions plus 15 pretest questions, for 175 total delivered questions, with a 3-hour time limit and 70% passing score.

Q: What prelicensing does Florida require for a 2-20 license?

The standard resident route requires a 200-hour DFS-approved property and casualty course completed within 4 years of application, unless the applicant qualifies through an approved alternative such as certain work experience or an exempting designation.

Q: What are Florida's basic auto insurance minimums?

Florida's no-fault system requires at least $10,000 of Personal Injury Protection (PIP) and $10,000 of Property Damage Liability (PDL) for registered vehicles. Bodily injury liability is not a standard registration minimum but may be required after certain events.

Q: What is Citizens Property Insurance Corporation?

Citizens is Florida's state-created property insurer of last resort for eligible property owners who cannot obtain private-market coverage. It can write homeowners, dwelling, wind-only, and certain commercial residential property coverage.

Q: What does FIGA cover?

The Florida Insurance Guaranty Association protects covered P&C claimants when an admitted insurer becomes insolvent. Most covered claims are capped at $300,000, a $100 deductible can apply to first-party claims, and surplus lines claims are not covered.

Question 1

Florida Department of Financial Services (DFS)

Accepted Answer

DFS oversees agent and agency licensing, consumer services, insurance fraud investigation, and producer compliance. It is headed by Florida's elected Chief Financial Officer.

Question 2

Florida Office of Insurance Regulation (OIR)

Accepted Answer

OIR regulates insurance companies, including insurer licensing, solvency, rates, forms, and market conduct. Do not confuse OIR's insurer role with DFS agent licensing.

Question 3

Florida Chief Financial Officer (CFO)

Accepted Answer

The CFO is elected statewide and heads DFS. The Financial Services Commission, made up of the Governor and Cabinet, oversees OIR through the insurance regulatory structure.

Question 4

Florida 2-20 General Lines license

Accepted Answer

The 2-20 license authorizes a resident agent to transact broad property, casualty, surety, marine, health, and miscellaneous general lines authority, including auto, homeowners, workers' comp, and bonds.

Question 5

Florida 4-40 Customer Representative

Accepted Answer

A 4-40 customer representative may perform insurance service and sales activities only under proper supervision and appointment through a licensed general lines agent or agency.

Question 6

Florida 200-hour prelicensing requirement

Accepted Answer

The standard 2-20 resident route requires a 200-hour DFS-approved course in property and casualty insurance completed within 4 years of application, unless a qualifying alternative applies.

Question 7

Florida General Lines exam format

Accepted Answer

Pearson VUE's 2026 outline lists 160 scored questions plus 15 pretest questions for the Florida General Lines exam, with a 3-hour time limit.

Question 8

Florida passing score and score validity

Accepted Answer

Florida insurance exams require 70% to pass. A passing score is valid for 1 year; if licensing is not completed within that year, the candidate must retake and pass the exam.

Question 9

Florida appointment requirement

Accepted Answer

A license alone is not enough to transact insurance. The agent must be appointed for the class of insurance, and failure to obtain required appointments can cause license authority to expire.

Question 10

Florida continuing education

Accepted Answer

Florida agents generally complete continuing education every 2 years. General Lines agents should track the 24-hour cycle, including the required Law and Ethics update course for their license type.

Question 11

Florida PIP and PDL minimums

Accepted Answer

Florida registered vehicles generally need at least $10,000 Personal Injury Protection (PIP) and $10,000 Property Damage Liability (PDL).

Question 12

Florida no-fault auto system

Accepted Answer

Injured persons first look to their own PIP benefits regardless of fault. Property damage remains fault-based, so PDL pays for damage the insured causes to another person's property.

Question 13

Florida PIP medical benefit

Accepted Answer

PIP generally pays 80% of reasonable and necessary medical expenses up to the policy limit. If there is no emergency medical condition, benefits may be limited to $2,500.

Question 14

Florida tort threshold

Accepted Answer

An injured person may step outside no-fault and sue for broader damages only when the injury meets the threshold, such as death, permanent injury, or significant permanent scarring or disfigurement.

Question 15

Florida bodily injury liability minimum

Accepted Answer

Florida does not require bodily injury liability as a standard registration minimum for ordinary private passenger vehicles, but BI can be required after certain crashes or violations and is often recommended.

Question 16

Florida UM offer and rejection

Accepted Answer

Uninsured motorist coverage is optional in Florida, but insurers must offer it. If the insured declines or selects lower limits, the rejection or selection should be documented in writing.

Question 17

Florida proof of insurance penalties

Accepted Answer

Failure to maintain required PIP/PDL coverage can lead to driver license or registration suspension and reinstatement fees. Proof of insurance must be available when required.

Question 18

HO-3 policy in Florida

Accepted Answer

The HO-3 is the common homeowners form for single-family homes. It generally covers the dwelling on an open-perils basis and personal property on a named-perils basis.

Question 19

Florida hurricane deductible

Accepted Answer

A hurricane deductible is commonly a percentage of Coverage A, such as 2%, 5%, or 10%. It applies to covered hurricane losses rather than ordinary non-hurricane claims.

Question 20

Hurricane deductible trigger

Accepted Answer

Florida hurricane deductibles are tied to a named storm or hurricane event as defined by policy and law. Ordinary wind or thunderstorm damage uses the standard deductible unless another special deductible applies.

Question 21

Windstorm coverage in Florida

Accepted Answer

Windstorm coverage may be included, limited, or excluded depending on the policy and location. If excluded, insureds may need wind-only coverage or Citizens coverage where eligible.

Question 22

Citizens Property Insurance Corporation

Accepted Answer

Citizens is Florida's state-created insurer of last resort for eligible property owners who cannot obtain private-market property coverage on acceptable terms.

Question 23

Citizens take-out program

Accepted Answer

Private insurers may assume eligible Citizens policies through take-out offers. The goal is depopulation: moving policies from Citizens back into the private market when possible.

Question 24

Citizens assessments

Accepted Answer

If Citizens has a deficit after major losses, assessments or surcharges may be imposed on Citizens policyholders and, in some cases, other Florida policyholders.

Question 25

Florida Hurricane Catastrophe Fund (FHCF)

Accepted Answer

FHCF is a state-backed reinsurance mechanism for participating residential property insurers. It helps insurers pay covered hurricane losses above their retention.

Question 26

Catastrophic ground cover collapse

Accepted Answer

This coverage is included in Florida residential property policies and is narrower than sinkhole loss coverage. It requires severe conditions such as abrupt collapse, visible depression, structural damage, and condemnation.

Question 27

Florida sinkhole loss coverage

Accepted Answer

Insurers must offer sinkhole loss coverage, but the insured may waive it in writing. Sinkhole loss is broader than catastrophic ground cover collapse and can address structural damage from sinkhole activity.

Question 28

Sinkhole claim investigation report

Accepted Answer

If a Florida insurer denies a sinkhole claim after investigation, it should provide a detailed report explaining the basis for denial and the professional evaluation used.

Question 29

Ordinance or Law coverage in Florida

Accepted Answer

This coverage addresses increased repair, demolition, or rebuilding costs caused by enforcement of current building codes after a covered loss, a major issue in hurricane-prone property claims.

Question 30

Additional Living Expense (ALE)

Accepted Answer

ALE pays extra living costs, such as hotel and meal expenses, when a covered loss makes the residence unfit to live in during repair.

Question 31

Coverage C in a Florida HO-3

Accepted Answer

Coverage C insures personal property such as furniture, clothing, and appliances. In an HO-3, it is usually named-perils coverage rather than open-perils coverage.

Question 32

Flood insurance in Florida

Accepted Answer

Standard homeowners policies generally exclude flood. Flood coverage is purchased separately through the NFIP or private flood insurers, especially for homes in Special Flood Hazard Areas.

Question 33

NFIP 30-day waiting period

Accepted Answer

NFIP flood coverage commonly has a 30-day waiting period, but exceptions can apply, such as when flood insurance is required for a loan closing.

Question 34

HO-6 condominium unit policy

Accepted Answer

An HO-6 covers a condo unit owner's personal property, personal liability, loss of use, and unit interior/building property exposures not fully covered by the association master policy.

Question 35

Loss assessment coverage

Accepted Answer

Loss assessment coverage helps pay the unit owner's share of an association assessment for a covered property or liability loss, such as a master-policy deductible after a hurricane.

Question 36

Florida construction workers' compensation threshold

Accepted Answer

Construction industry employers generally need workers' compensation coverage when they have one or more employees. The construction threshold is stricter because of higher occupational risk.

Question 37

Florida non-construction workers' compensation threshold

Accepted Answer

Non-construction employers generally need workers' compensation coverage when they have four or more employees, whether full-time or part-time.

Question 38

Florida workers' compensation benefits

Accepted Answer

Covered employees generally receive medical benefits, wage replacement disability benefits, and death benefits for dependents when a covered workplace injury is fatal.

Question 39

Florida workers' compensation exclusive remedy

Accepted Answer

Workers' compensation is generally the employee's exclusive remedy against the employer for a covered workplace injury, while still allowing possible claims against negligent third parties.

Question 40

CGL Coverage A

Accepted Answer

Commercial General Liability Coverage A covers third-party bodily injury and property damage liability caused by an occurrence, subject to exclusions and policy limits.

Question 41

Occurrence vs. claims-made CGL

Accepted Answer

Occurrence coverage depends on when injury or damage occurs. Claims-made coverage depends on when the claim is first made, and often on any retroactive date.

Question 42

Products-completed operations

Accepted Answer

This CGL hazard covers bodily injury or property damage arising from the insured's product or completed work after the product is away from the premises or the work is finished.

Question 43

Additional insured

Accepted Answer

An additional insured is a person or organization added to a policy for specified liability protection, often required by contract between businesses.

Question 44

Florida surplus lines placement

Accepted Answer

Surplus lines is used for eligible risks that admitted insurers will not write. Placement must be handled by properly licensed surplus lines authority and include required disclosures.

Question 45

Surplus lines disclosure

Accepted Answer

The insured must understand that the policy is written by a nonadmitted insurer and is not protected by FIGA. This disclosure is central to surplus lines compliance.

Question 46

Florida Insurance Guaranty Association (FIGA)

Accepted Answer

FIGA handles covered claims when an admitted P&C insurer becomes insolvent. Most covered claims are capped at $300,000; workers' compensation follows statutory limits.

Question 47

Florida claim acknowledgment timing

Accepted Answer

Florida insurers generally must acknowledge a claim within 14 days, begin investigation promptly, and provide required explanations when denying or limiting claims.

Question 48

Florida bad faith concept

Accepted Answer

Bad faith involves failing to settle or handle claims fairly when the insurer could and should have done so under the circumstances. It can expose the insurer to extra-contractual damages.

Question 49

Twisting, churning, and rebating

Accepted Answer

Twisting uses misrepresentation to induce replacement; churning means excessive replacement for commissions; rebating offers inducements not stated in the policy. All are compliance risks.

Question 50

Premium funds as fiduciary funds

Accepted Answer

Premiums collected by a Florida agent must be handled as fiduciary funds, kept separate from personal money, and remitted according to the agent's authority and insurer agreement.

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