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