FLORIDA PERSONAL LINES EXAM QUESTIONS
WITH ANSWERS
Under Part A of a Personal Auto Policy, which of the following losses would be covered?
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
A.) Damage to property being transported by the insured
cv cv cv cv cv cv cv cv
B.) Damage to a neighbor's parked car
cv cv cv cv cv cv
C.) Damage to a neighbor's lawn mower in the care of the insured
cv cv cv cv cv cv cv cv cv cv cv cv
D.) Damage to the home the insured owns - ans-B.) Damage to a neighbor's parked car
cv cv cv cv cv cv cv cv cvcv cv cv cv cv cv cv
Which of the following is true regarding the Fine Arts Floater?
cv cv cv cv cv cv cv cv cv cv
A.) Coverage is limited to the United States, Canada, and Mexico
cv cv cv cv cv cv cv cv cv cv
B.) Coverage is primarily for stamps and coins
cv cv cv cv cv cv cv
C.) It provides automatic coverage on newly acquired items for 90 days
cv cv cv cv cv cv cv cv cv cv cv
D.) It settles losses on an ACV basis - ans-
cv cv cv cv cv cv cv cv cvcv
C.) It provides automatic coverage on newly acquired items for 90 days
cv cv cv cv cv cv cv cv cv cv cv
All of the following statements are correct about a Homeowners Policy, except:
cv cv cv cv cv cv cv cv cv cv cv
A.) Home schooling is covered under a Homeowners Policy
cv cv cv cv cv cv cv cv
B.) Coverage D of a Homeowners Policy includes loss of income from an incidental busines
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
s
C.) A Homeowners Policy will not cover theft of a boat away from premises
cv cv cv cv cv cv cv cv cv cv cv cv cv
D.) Coverage D of a Homeowners Policy covers additional living expenses - ans-
cv cv cv cv cv cv cv cv cv cv cv cvcv
B.) Coverage D of a Homeowners Policy includes loss of income from an incidental busines
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
s
Under disability income insurance, a monthly benefit will be ________ of the insured's mon
cv cv cv cv cv cv cv cv cv cv cv cv cv
thly income. cv
A.) 80 1/2%
cv cv
B.) 66 2/3%
cv cv
C.) 70 2/3%cv cv
D.) 50 3/4% - ans-B.) 66 2/3%
cv cv cv cvcv cv cv
All of the following items of property are considered property not covered under Coverage
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
C of a Homeowners policy, except:
cv cv cv cv cv
A.) Credit cards
cv cv
B.) Personal property of a guest
cv cv cv cv cv
C.) Pets cv
D.) Personal property of a tenant - ans-B.) Personal property of a guest
cv cv cv cv cv cv cvcv cv cv cv cv cv
,Which of the following is NOT a purpose of licensing?
cv cv cv cv cv cv cv cv cv
A.) For the applicant to be familiar with the Florida insurance laws
cv cv cv cv cv cv cv cv cv cv cv
B.) To authorize and enable the licensee to actively and in good faith engage in the insuranc
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
e business as an agent
cv cv cv cv
C.) To facilitate the public supervision of such activities in the public interest
cv cv cv cv cv cv cv cv cv cv cv cv
D.) To authorize the agent to insure risks - ans-D.) To authorize the agent to insure risks
cv cv cv cv cv cv cv cv cvcv cv cv cv cv cv cv cv
Liability coverage provided by a Personal Auto policy would cover which of the following da
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
mages?
A.) Damage to property being transported by the insured in a covered auto
cv cv cv cv cv cv cv cv cv cv cv cv
B.) Damage to a private garage rented to the insured, caused by the insured's child driving
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
a covered auto
cv cv
C.) Damage to a neighbor's riding lawn mower that is in the care of the insured
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
D.) Damage to a storefront caused by a valet driver operating a covered auto - ans-
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cvcv
B.) Damage to a private garage rented to the insured, caused by the insured's child driving
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
a covered auto
cv cv
Which policy provision omits certain risks from coverage?
cv cv cv cv cv cv cv
A.) Conditions
cv
B.) Additional Coverages
cv cv
C.) Exclusions
cv
D.) Declarations - ans-C.) Exclusions
cv cv cvcv cv
When an underlying policy does not cover a particular loss, the insured's Umbrella Liability
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
policy will drop down and cover the entire loss, after payment by the insured of a:
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
A.) Deductible
cv
B.) Self-insured retention
cv cv
C.) Copayment
cv
D.) Commission - ans-B.) Self-insured retention
cv cv cvcv cv cv
Liability coverage may be provided by a Homeowners policy for the insured's use of which o
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
f the following watercraft?
cv cv cv
A.) 20-foot sailing boat
cv cv cv
B.) Private yacht owned by the insured
cv cv cv cv cv cv
C.) Rented pontoon boat to entertain business clients
cv cv cv cv cv cv cv
D.) Racing cruiser - ans-A.) 20-foot sailing boat
cv cv cv cvcv cv cv cv
An insured owns a home with a replacement cost of $300,000 and a market value of $250,0
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
00. What is the most a valued policy will pay in the event of a total loss without a deductible?
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
,A.) $240,000 cv
B.) $250,000 cv
C.) The policy limit
cv cv cv
D.) $300,000 - ans-C.) The policy limit
cv cv cvcv cv cv cv
Policyholder J hit a deer with their Honda. J has collision coverage with a $250 deductible a
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
nd other than collision coverage with a $50 deductible. The damage to J's car was $450. Ho
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
w much will the policy pay?
cv cv cv cv cv
A.) $200 cv
B.) Nothing cv
C.) $400 cv
D.) $150 - ans-C.) $400
cv cv cvcv cv
Under all the Dwelling Forms, the dwelling described in the Declarations is covered under:
cv cv cv cv cv cv cv cv cv cv cv cv cv
A.) Coverage A
cv cv
B.) Coverage B
cv cv
C.) Coverage E cv cv
D.) Coverage C - ans-A.) Coverage A
cv cv cv cvcv cv cv
If an owner-
cv cv
occupied home is totally destroyed without fraud by a fire, the amount of the loss is based o
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
n:
A.) The coinsurance value
cv cv cv
B.) The replacement value
cv cv cv
C.) The market value
cv cv cv
D.) The policy limit - ans-D.) The policy limit
cv cv cv cv cvcv cv cv cv
A false statement in the application for insurance is called a:
cv cv cv cv cv cv cv cv cv cv
A.) Warranty cv
B.) Concealment
cv
C.) Representation
cv
D.) Misrepresentation - ans-D.) Misrepresentation
cv cv cvcv cv
When a claimant brings a negligence claim against the insured, the court determines that th
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
e claimant is partially responsible for the loss, and the damages they are owed is reduced b
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
y the amount of their responsibility. This describes which defense against negligence?
cv cv cv cv cv cv cv cv cv cv cv
A.) Comparative negligence
cv cv
B.) Contributory negligence
cv cv
C.) Contributory risk
cv cv
D.) Comparative risk - ans-A.) Comparative negligence
cv cv cv cvcv cv cv
, All of the following statements about liability are true, except:
cv cv cv cv cv cv cv cv cv
A.) The burden of proof is on the injured party to prove that the other party was negligent
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
B.) Liability policies pay costs incurred by an insured to sue negligent third parties
cv cv cv cv cv cv cv cv cv cv cv cv cv
C.) An insured may be liable for damages to an injured party, even if they are not deemed n
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
egligent
D.) Breach of contract is not considered an act of negligence - ans-
cv cv cv cv cv cv cv cv cv cv cv cvcv
B.) Liability policies pay costs incurred by an insured to sue negligent third parties
cv cv cv cv cv cv cv cv cv cv cv cv cv
Under Part A - cv cv cv
Liability Coverage of a Personal Auto policy, which of the following statements regarding th
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
e limit of liability is incorrect?
cv cv cv cv cv
A.) The limit of liability is the maximum the policy will pay regardless of the number of insure
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
ds
B.) The limit of liability is the maximum the policy will pay regardless of the number of vehicl
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
es involved in the accident
cv cv cv cv
C.) If the loss is covered under more than one part of the policy, payment will be duplicated
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
D.) A combined single limit is the maximum the policy will pay in any one accident for bodily i
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
njury and property damage - ans-
cv cv cv cv cvcv
C.) If the loss is covered under more than one part of the policy, payment will be duplicated
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
Actual cash value may be defined as:
cv cv cv cv cv cv
A.) The cost to replace or repair property, minus depreciation
cv cv cv cv cv cv cv cv cv
B.) The cost to replace or repair the property
cv cv cv cv cv cv cv cv
C.) The original purchase price of property, minus depreciation
cv cv cv cv cv cv cv cv
D.) The agreed upon specific value determined before the policy was issued - ans-
cv cv cv cv cv cv cv cv cv cv cv cv cvcv
A.) The cost to replace or repair property, minus depreciation
cv cv cv cv cv cv cv cv cv
Policyholder N insures an owner- cv cv cv cv
occupied home under a Special Form Dwelling Policy with a limit of $100,000. If the dwellin
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
g is damaged in a fire, what is the limit of insurance that will apply to Coverage E -
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
Additional Living Expense?
cv cv cv
A.) $50,000 cv
B.) $20,000 cv
C.) $10,000 cv
D.) $40,000 - ans-B.) $20,000
cv cv cvcv cv
As used in casualty insurance, bodily injury is best described as:
cv cv cv cv cv cv cv cv cv cv
A.) Any injury causing hospitalization, disability, or loss of income
cv cv cv cv cv cv cv cv cv
B.) Physical injury, sickness, or death arising from the negligent acts of an insured
cv cv cv cv cv cv cv cv cv cv cv cv cv
C.) All financially measurable injuries directly sustained, including libel and false arrest
cv cv cv cv cv cv cv cv cv cv cv
WITH ANSWERS
Under Part A of a Personal Auto Policy, which of the following losses would be covered?
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
A.) Damage to property being transported by the insured
cv cv cv cv cv cv cv cv
B.) Damage to a neighbor's parked car
cv cv cv cv cv cv
C.) Damage to a neighbor's lawn mower in the care of the insured
cv cv cv cv cv cv cv cv cv cv cv cv
D.) Damage to the home the insured owns - ans-B.) Damage to a neighbor's parked car
cv cv cv cv cv cv cv cv cvcv cv cv cv cv cv cv
Which of the following is true regarding the Fine Arts Floater?
cv cv cv cv cv cv cv cv cv cv
A.) Coverage is limited to the United States, Canada, and Mexico
cv cv cv cv cv cv cv cv cv cv
B.) Coverage is primarily for stamps and coins
cv cv cv cv cv cv cv
C.) It provides automatic coverage on newly acquired items for 90 days
cv cv cv cv cv cv cv cv cv cv cv
D.) It settles losses on an ACV basis - ans-
cv cv cv cv cv cv cv cv cvcv
C.) It provides automatic coverage on newly acquired items for 90 days
cv cv cv cv cv cv cv cv cv cv cv
All of the following statements are correct about a Homeowners Policy, except:
cv cv cv cv cv cv cv cv cv cv cv
A.) Home schooling is covered under a Homeowners Policy
cv cv cv cv cv cv cv cv
B.) Coverage D of a Homeowners Policy includes loss of income from an incidental busines
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
s
C.) A Homeowners Policy will not cover theft of a boat away from premises
cv cv cv cv cv cv cv cv cv cv cv cv cv
D.) Coverage D of a Homeowners Policy covers additional living expenses - ans-
cv cv cv cv cv cv cv cv cv cv cv cvcv
B.) Coverage D of a Homeowners Policy includes loss of income from an incidental busines
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
s
Under disability income insurance, a monthly benefit will be ________ of the insured's mon
cv cv cv cv cv cv cv cv cv cv cv cv cv
thly income. cv
A.) 80 1/2%
cv cv
B.) 66 2/3%
cv cv
C.) 70 2/3%cv cv
D.) 50 3/4% - ans-B.) 66 2/3%
cv cv cv cvcv cv cv
All of the following items of property are considered property not covered under Coverage
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
C of a Homeowners policy, except:
cv cv cv cv cv
A.) Credit cards
cv cv
B.) Personal property of a guest
cv cv cv cv cv
C.) Pets cv
D.) Personal property of a tenant - ans-B.) Personal property of a guest
cv cv cv cv cv cv cvcv cv cv cv cv cv
,Which of the following is NOT a purpose of licensing?
cv cv cv cv cv cv cv cv cv
A.) For the applicant to be familiar with the Florida insurance laws
cv cv cv cv cv cv cv cv cv cv cv
B.) To authorize and enable the licensee to actively and in good faith engage in the insuranc
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
e business as an agent
cv cv cv cv
C.) To facilitate the public supervision of such activities in the public interest
cv cv cv cv cv cv cv cv cv cv cv cv
D.) To authorize the agent to insure risks - ans-D.) To authorize the agent to insure risks
cv cv cv cv cv cv cv cv cvcv cv cv cv cv cv cv cv
Liability coverage provided by a Personal Auto policy would cover which of the following da
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
mages?
A.) Damage to property being transported by the insured in a covered auto
cv cv cv cv cv cv cv cv cv cv cv cv
B.) Damage to a private garage rented to the insured, caused by the insured's child driving
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
a covered auto
cv cv
C.) Damage to a neighbor's riding lawn mower that is in the care of the insured
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
D.) Damage to a storefront caused by a valet driver operating a covered auto - ans-
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cvcv
B.) Damage to a private garage rented to the insured, caused by the insured's child driving
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
a covered auto
cv cv
Which policy provision omits certain risks from coverage?
cv cv cv cv cv cv cv
A.) Conditions
cv
B.) Additional Coverages
cv cv
C.) Exclusions
cv
D.) Declarations - ans-C.) Exclusions
cv cv cvcv cv
When an underlying policy does not cover a particular loss, the insured's Umbrella Liability
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
policy will drop down and cover the entire loss, after payment by the insured of a:
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
A.) Deductible
cv
B.) Self-insured retention
cv cv
C.) Copayment
cv
D.) Commission - ans-B.) Self-insured retention
cv cv cvcv cv cv
Liability coverage may be provided by a Homeowners policy for the insured's use of which o
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
f the following watercraft?
cv cv cv
A.) 20-foot sailing boat
cv cv cv
B.) Private yacht owned by the insured
cv cv cv cv cv cv
C.) Rented pontoon boat to entertain business clients
cv cv cv cv cv cv cv
D.) Racing cruiser - ans-A.) 20-foot sailing boat
cv cv cv cvcv cv cv cv
An insured owns a home with a replacement cost of $300,000 and a market value of $250,0
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
00. What is the most a valued policy will pay in the event of a total loss without a deductible?
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
,A.) $240,000 cv
B.) $250,000 cv
C.) The policy limit
cv cv cv
D.) $300,000 - ans-C.) The policy limit
cv cv cvcv cv cv cv
Policyholder J hit a deer with their Honda. J has collision coverage with a $250 deductible a
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
nd other than collision coverage with a $50 deductible. The damage to J's car was $450. Ho
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
w much will the policy pay?
cv cv cv cv cv
A.) $200 cv
B.) Nothing cv
C.) $400 cv
D.) $150 - ans-C.) $400
cv cv cvcv cv
Under all the Dwelling Forms, the dwelling described in the Declarations is covered under:
cv cv cv cv cv cv cv cv cv cv cv cv cv
A.) Coverage A
cv cv
B.) Coverage B
cv cv
C.) Coverage E cv cv
D.) Coverage C - ans-A.) Coverage A
cv cv cv cvcv cv cv
If an owner-
cv cv
occupied home is totally destroyed without fraud by a fire, the amount of the loss is based o
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
n:
A.) The coinsurance value
cv cv cv
B.) The replacement value
cv cv cv
C.) The market value
cv cv cv
D.) The policy limit - ans-D.) The policy limit
cv cv cv cv cvcv cv cv cv
A false statement in the application for insurance is called a:
cv cv cv cv cv cv cv cv cv cv
A.) Warranty cv
B.) Concealment
cv
C.) Representation
cv
D.) Misrepresentation - ans-D.) Misrepresentation
cv cv cvcv cv
When a claimant brings a negligence claim against the insured, the court determines that th
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
e claimant is partially responsible for the loss, and the damages they are owed is reduced b
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
y the amount of their responsibility. This describes which defense against negligence?
cv cv cv cv cv cv cv cv cv cv cv
A.) Comparative negligence
cv cv
B.) Contributory negligence
cv cv
C.) Contributory risk
cv cv
D.) Comparative risk - ans-A.) Comparative negligence
cv cv cv cvcv cv cv
, All of the following statements about liability are true, except:
cv cv cv cv cv cv cv cv cv
A.) The burden of proof is on the injured party to prove that the other party was negligent
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
B.) Liability policies pay costs incurred by an insured to sue negligent third parties
cv cv cv cv cv cv cv cv cv cv cv cv cv
C.) An insured may be liable for damages to an injured party, even if they are not deemed n
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
egligent
D.) Breach of contract is not considered an act of negligence - ans-
cv cv cv cv cv cv cv cv cv cv cv cvcv
B.) Liability policies pay costs incurred by an insured to sue negligent third parties
cv cv cv cv cv cv cv cv cv cv cv cv cv
Under Part A - cv cv cv
Liability Coverage of a Personal Auto policy, which of the following statements regarding th
cv cv cv cv cv cv cv cv cv cv cv cv cv cv
e limit of liability is incorrect?
cv cv cv cv cv
A.) The limit of liability is the maximum the policy will pay regardless of the number of insure
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
ds
B.) The limit of liability is the maximum the policy will pay regardless of the number of vehicl
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
es involved in the accident
cv cv cv cv
C.) If the loss is covered under more than one part of the policy, payment will be duplicated
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
D.) A combined single limit is the maximum the policy will pay in any one accident for bodily i
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
njury and property damage - ans-
cv cv cv cv cvcv
C.) If the loss is covered under more than one part of the policy, payment will be duplicated
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
Actual cash value may be defined as:
cv cv cv cv cv cv
A.) The cost to replace or repair property, minus depreciation
cv cv cv cv cv cv cv cv cv
B.) The cost to replace or repair the property
cv cv cv cv cv cv cv cv
C.) The original purchase price of property, minus depreciation
cv cv cv cv cv cv cv cv
D.) The agreed upon specific value determined before the policy was issued - ans-
cv cv cv cv cv cv cv cv cv cv cv cv cvcv
A.) The cost to replace or repair property, minus depreciation
cv cv cv cv cv cv cv cv cv
Policyholder N insures an owner- cv cv cv cv
occupied home under a Special Form Dwelling Policy with a limit of $100,000. If the dwellin
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
g is damaged in a fire, what is the limit of insurance that will apply to Coverage E -
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv
Additional Living Expense?
cv cv cv
A.) $50,000 cv
B.) $20,000 cv
C.) $10,000 cv
D.) $40,000 - ans-B.) $20,000
cv cv cvcv cv
As used in casualty insurance, bodily injury is best described as:
cv cv cv cv cv cv cv cv cv cv
A.) Any injury causing hospitalization, disability, or loss of income
cv cv cv cv cv cv cv cv cv
B.) Physical injury, sickness, or death arising from the negligent acts of an insured
cv cv cv cv cv cv cv cv cv cv cv cv cv
C.) All financially measurable injuries directly sustained, including libel and false arrest
cv cv cv cv cv cv cv cv cv cv cv
