FLORIDA 20-44 PERSONAL LINES
AGENT FINAL EXAM STUDY GUIDE
QUESTIONS AND ANSWERS
1. Under the Florida Valued Policy Law, what happens if a total loss occurs to a residential
structure by a covered peril?
A. The insurer pays the full limit of liability stated in the policy.
B. The insurer pays the actual cash value of the property.
C. The insurer pays the replacement cost regardless of the policy limit.
D. The insurer is only liable for the amount determined by a neutral evaluator.
Answer: A
Conceptual Explanation: The Valued Policy Law (Statute 627.702) requires that in the
event of a total loss of a building or structure by a covered peril, the insurer’s liability is the
amount of money for which such property was insured.
2. In a Personal Auto Policy (PAP), what is the standard death benefit under Florida Personal
Injury Protection (PIP)?
A. $2,500
,B. $7,500
C. $10,000
D. $5,000
Answer: D
Conceptual Explanation: Florida PIP provides $10,000 for medical/disability benefits, but
the death benefit is a separate fixed amount of $5,000 per individual.
3. Which of the following Homeowners forms is specifically designed for the owners of
condominium units?
A. HO-2
B. HO-3
C. HO-6
D. HO-4
Answer: C
Conceptual Explanation: The HO-6 Unit-Owners Form is tailored for the unique needs of
condominium owners, covering walls-in improvements and personal property.
4. A policyholder has an HO-3 policy. During a hurricane, a tree falls on the house causing
$10,000 in damage. How much is typically covered for the removal of the tree debris?
A. Nothing, tree removal is an excluded peril
B. Unlimited coverage if the tree damages a covered structure
, C. Up to $500 per tree, maximum $1,000
D. A flat $2,500 for all debris
Answer: C
Conceptual Explanation: Standard HO policies provide up to $500 for the removal of any
one tree, with a maximum of $1,000 for one occurrence, if the tree damages a covered
structure.
5. Under the Florida Financial Responsibility Law, what is the minimum required limit for
Property Damage Liability?
A. $10,000
B. $5,000
C. $20,000
D. $30,000
Answer: A
Conceptual Explanation: The Florida Financial Responsibility Law requires every motor
vehicle owner to carry at least $10,000 in Property Damage Liability (PDL) and $10,000 in
Personal Injury Protection (PIP).
6. Which peril is NOT covered under a basic DP-1 Dwelling Policy without endorsements?
A. Fire
B. Lightning
AGENT FINAL EXAM STUDY GUIDE
QUESTIONS AND ANSWERS
1. Under the Florida Valued Policy Law, what happens if a total loss occurs to a residential
structure by a covered peril?
A. The insurer pays the full limit of liability stated in the policy.
B. The insurer pays the actual cash value of the property.
C. The insurer pays the replacement cost regardless of the policy limit.
D. The insurer is only liable for the amount determined by a neutral evaluator.
Answer: A
Conceptual Explanation: The Valued Policy Law (Statute 627.702) requires that in the
event of a total loss of a building or structure by a covered peril, the insurer’s liability is the
amount of money for which such property was insured.
2. In a Personal Auto Policy (PAP), what is the standard death benefit under Florida Personal
Injury Protection (PIP)?
A. $2,500
,B. $7,500
C. $10,000
D. $5,000
Answer: D
Conceptual Explanation: Florida PIP provides $10,000 for medical/disability benefits, but
the death benefit is a separate fixed amount of $5,000 per individual.
3. Which of the following Homeowners forms is specifically designed for the owners of
condominium units?
A. HO-2
B. HO-3
C. HO-6
D. HO-4
Answer: C
Conceptual Explanation: The HO-6 Unit-Owners Form is tailored for the unique needs of
condominium owners, covering walls-in improvements and personal property.
4. A policyholder has an HO-3 policy. During a hurricane, a tree falls on the house causing
$10,000 in damage. How much is typically covered for the removal of the tree debris?
A. Nothing, tree removal is an excluded peril
B. Unlimited coverage if the tree damages a covered structure
, C. Up to $500 per tree, maximum $1,000
D. A flat $2,500 for all debris
Answer: C
Conceptual Explanation: Standard HO policies provide up to $500 for the removal of any
one tree, with a maximum of $1,000 for one occurrence, if the tree damages a covered
structure.
5. Under the Florida Financial Responsibility Law, what is the minimum required limit for
Property Damage Liability?
A. $10,000
B. $5,000
C. $20,000
D. $30,000
Answer: A
Conceptual Explanation: The Florida Financial Responsibility Law requires every motor
vehicle owner to carry at least $10,000 in Property Damage Liability (PDL) and $10,000 in
Personal Injury Protection (PIP).
6. Which peril is NOT covered under a basic DP-1 Dwelling Policy without endorsements?
A. Fire
B. Lightning
