Free FL P&C Exam Flashcards

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

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

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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

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

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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

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

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.

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

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.

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.

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

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.

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.

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.

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

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.

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

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.