Florida Surplus Lines study guide
Florida Surplus Lines · Work through your exam, one topic at a time.
The Florida surplus lines agent license - often called the 3-20 license - is a Florida Department of Financial Services credential for insurance professionals who place coverage with eligible non-admitted (surplus lines) insurers when the admitted market cannot or will not write the risk. It is aimed at licensed agents and brokers who already understand basic property and casualty concepts and now need to work within Florida's surplus lines placement rules, including diligent-effort search requirements and premium tax and filing obligations. Licensing exams for Florida are delivered through Pearson VUE, the state's testing vendor. The exam is organized into four content areas: insurance terms and related concepts; policy provisions and contract law; Florida laws, rules and regulations; and surplus lines placement and regulation. The Florida Surplus Lines study guide has 4 sections and about 1,390 words.
01Insurance Terms and Related Concepts
Surplus lines questions test whether you can separate the cause of loss from the condition that makes loss more likely or more severe. Risk is the chance of loss; peril is the cause of loss (fire, wind, theft); hazard is a condition that increases the chance or severity of loss.
344 words, about 2 min02Policy Provisions and Contract Law
An insurance policy is a contract requiring offer, acceptance, consideration, legal purpose, and competent parties . The application is usually the offer; policy issuance or binder acceptance; the premium is consideration.
339 words, about 2 min03Florida Laws, Rules and Regulations
Florida regulates insurance through the Department of Financial Services and the Office of Insurance Regulation. Agents and adjusters must be licensed , and appointments tie a licensee to an insurer.
339 words, about 2 min04Surplus Lines Placement and Regulation
Surplus lines is the placement of coverage with an insurer not authorized in Florida when the admitted market cannot or will not write the risk. A Florida-licensed surplus lines agent must first make and document a diligent effort to place the risk with authorized insurers.
368 words, about 2 min