Personal Lines - Florida Exam Questions
With Complete Solution latest Version
2024/2025
5 Qualifications for a General Lines License - CORRECT ANSWER-1. 18 years old
2. resident of FL or place of business in FL
3. 200-hour course or 1 yr experience in all lines
4. cannot be for writing controlled business
5. Exam waived for CPCU designation or college degree with 15 hours in insurance
controlled business - CORRECT ANSWER-more than 50% of income from businesses
applicant is involved in, such as family business
Department of Financial Services - CORRECT ANSWER-does not make rating and
underwriting rules
risk - CORRECT ANSWER-chance of financial loss
insurance policy - CORRECT ANSWER-written contract, including all clauses, riders,
endorsements, and papers
insurance - CORRECT ANSWER-a contract wherein one undertakes to indemnify
another or pay a specified sum upon the happening of a determinable event
binder - CORRECT ANSWER-temporary insurance - oral or written; Auto 5 days for
cancellation, all others 60 days
property insurance - CORRECT ANSWER-payment by insurer (company) is made to
insured
,liability insurance - CORRECT ANSWER-payment by insurer (company) is made to
others on insured's behalf
personal contract - CORRECT ANSWER-contracts cover persons - not property or
operations
conditional contract - CORRECT ANSWER-obligations of insurer may depend upon
insured satisfying some conditions
contract of adhesion - CORRECT ANSWER-insureds can not negotiate the terms; one-
sided contract
indemnity contract - CORRECT ANSWER-one should not profit from teh proceeds of
the policy but should be made whole
Exceptions to indemnity - CORRECT ANSWER-1. Valued policies
2. Florida Value Policy Law
3. Replacement cost
4. Liability insurance
Insurable interest - CORRECT ANSWER-Must exist at the time of loss
peril - CORRECT ANSWER-condition or occurrence that may cause a loss (fire, wind,
theft, collision)
hazard - CORRECT ANSWER-increases the likelihood of a loss
physical hazard - CORRECT ANSWER-physical characteristic increases the likelihood
of a loss - wet floor
moral hazard - CORRECT ANSWER-intentional loss - taking drugs
, morale hazard - CORRECT ANSWER-carelessness - leaving cash drawer open in a
business
doctrine of proximate cause - CORRECT ANSWER-unbroken connection between an
occurrence and damage which grows out of the occurrence
direct loss - CORRECT ANSWER-physical harm to tangible property
indirect loss - CORRECT ANSWER-economic loss as a consequence of a direct loss -
ex) rental car fees
mortgage holder - CORRECT ANSWER-has lender's interest in property
lender interest - CORRECT ANSWER-named in loss payable clause and called loss
payee - personal property; named mortgage/mortgagee clause and called mortgage
holders - real property
real property - CORRECT ANSWER-buildings and land
personal property - CORRECT ANSWER-can be taken when you move away
loss settlement valuation - CORRECT ANSWER-actual cash value = replacement -
depreciation
replacement cost - CORRECT ANSWER-actual cost to repair or replace property;
awnings, flooring, appliances, TV antennaes are excluded
Florida Valued Policy Law - CORRECT ANSWER-insurer must pay the amount
provided in teh policy for which premium has been paid for a total loss by an insured
peril
With Complete Solution latest Version
2024/2025
5 Qualifications for a General Lines License - CORRECT ANSWER-1. 18 years old
2. resident of FL or place of business in FL
3. 200-hour course or 1 yr experience in all lines
4. cannot be for writing controlled business
5. Exam waived for CPCU designation or college degree with 15 hours in insurance
controlled business - CORRECT ANSWER-more than 50% of income from businesses
applicant is involved in, such as family business
Department of Financial Services - CORRECT ANSWER-does not make rating and
underwriting rules
risk - CORRECT ANSWER-chance of financial loss
insurance policy - CORRECT ANSWER-written contract, including all clauses, riders,
endorsements, and papers
insurance - CORRECT ANSWER-a contract wherein one undertakes to indemnify
another or pay a specified sum upon the happening of a determinable event
binder - CORRECT ANSWER-temporary insurance - oral or written; Auto 5 days for
cancellation, all others 60 days
property insurance - CORRECT ANSWER-payment by insurer (company) is made to
insured
,liability insurance - CORRECT ANSWER-payment by insurer (company) is made to
others on insured's behalf
personal contract - CORRECT ANSWER-contracts cover persons - not property or
operations
conditional contract - CORRECT ANSWER-obligations of insurer may depend upon
insured satisfying some conditions
contract of adhesion - CORRECT ANSWER-insureds can not negotiate the terms; one-
sided contract
indemnity contract - CORRECT ANSWER-one should not profit from teh proceeds of
the policy but should be made whole
Exceptions to indemnity - CORRECT ANSWER-1. Valued policies
2. Florida Value Policy Law
3. Replacement cost
4. Liability insurance
Insurable interest - CORRECT ANSWER-Must exist at the time of loss
peril - CORRECT ANSWER-condition or occurrence that may cause a loss (fire, wind,
theft, collision)
hazard - CORRECT ANSWER-increases the likelihood of a loss
physical hazard - CORRECT ANSWER-physical characteristic increases the likelihood
of a loss - wet floor
moral hazard - CORRECT ANSWER-intentional loss - taking drugs
, morale hazard - CORRECT ANSWER-carelessness - leaving cash drawer open in a
business
doctrine of proximate cause - CORRECT ANSWER-unbroken connection between an
occurrence and damage which grows out of the occurrence
direct loss - CORRECT ANSWER-physical harm to tangible property
indirect loss - CORRECT ANSWER-economic loss as a consequence of a direct loss -
ex) rental car fees
mortgage holder - CORRECT ANSWER-has lender's interest in property
lender interest - CORRECT ANSWER-named in loss payable clause and called loss
payee - personal property; named mortgage/mortgagee clause and called mortgage
holders - real property
real property - CORRECT ANSWER-buildings and land
personal property - CORRECT ANSWER-can be taken when you move away
loss settlement valuation - CORRECT ANSWER-actual cash value = replacement -
depreciation
replacement cost - CORRECT ANSWER-actual cost to repair or replace property;
awnings, flooring, appliances, TV antennaes are excluded
Florida Valued Policy Law - CORRECT ANSWER-insurer must pay the amount
provided in teh policy for which premium has been paid for a total loss by an insured
peril
