Florida Property and Casualty
Insurance Exam With Actual Questions
& Verified Answers,Plus
Rationales/Expert Verified For
Guaranteed Pass Graded A+/2026
/Latest Update/Instant Download Pdf
1. Which of the following is NOT considered a peril in property insurance?
A. Fire
B. Theft
C. Flood
D. Moral hazard
D. Moral hazard
Rationale: Moral hazard refers to the increased risk of loss due to the
insured’s behavior, not a specific peril covered by property insurance.
2. In Florida, which type of homeowners policy provides coverage for
named perils only?
A. HO-3
B. HO-2
C. HO-5
D. HO-8
B. HO-2
Rationale: HO-2 is a broad form policy covering only named perils specified in
the policy, unlike HO-3 which covers all risks except those specifically
excluded.
, 3. Which of the following is the standard deductible approach in most
property insurance policies?
A. Fixed-dollar deductible
B. Percentage deductible
C. Franchise deductible
D. Split deductible
A. Fixed-dollar deductible
Rationale: Most property insurance policies have a fixed-dollar deductible
that applies to each loss.
4. Which type of insurance protects against legal liability for injury or
damage to others?
A. Property insurance
B. Casualty insurance
C. Life insurance
D. Health insurance
B. Casualty insurance
Rationale: Casualty insurance covers liability for harm to others or their
property, such as in auto or general liability policies.
5. Which Florida law requires insurance companies to pay claims promptly?
A. Florida Insurance Code
B. Florida Prompt Payment of Claims Act
C. Florida Consumer Protection Act
D. Florida Unfair Trade Practices Act
B. Florida Prompt Payment of Claims Act
Rationale: This law mandates timely claims payment and specifies penalties
for delays.
6. In auto insurance, which coverage pays for damage to the insured’s car
caused by another driver who is uninsured?
A. Liability
B. Collision
C. Comprehensive
D. Uninsured motorist
, D. Uninsured motorist
Rationale: Uninsured motorist coverage protects the insured when the at-
fault driver has no insurance.
7. The purpose of a binder in insurance is to:
A. Permanently provide coverage
B. Serve as a temporary proof of coverage
C. Cancel the policy
D. Adjust the premium
B. Serve as a temporary proof of coverage
Rationale: A binder is a temporary contract providing proof of coverage until
the policy is issued.
8. In property insurance, “replacement cost” refers to:
A. Actual cash value minus depreciation
B. Cost to replace with like kind and quality
C. Market value of property
D. Appraised value by insurer
B. Cost to replace with like kind and quality
Rationale: Replacement cost coverage pays the amount necessary to repair or
replace damaged property without deducting for depreciation.
9. What type of liability is imposed by law regardless of fault?
A. Strict liability
B. Vicarious liability
C. Negligence
D. Absolute liability
A. Strict liability
Rationale: Strict liability holds a party legally responsible for damage or
injury regardless of fault.
10.Which insurance principle states that the insured cannot profit from a
loss?
A. Indemnity
B. Subrogation
Insurance Exam With Actual Questions
& Verified Answers,Plus
Rationales/Expert Verified For
Guaranteed Pass Graded A+/2026
/Latest Update/Instant Download Pdf
1. Which of the following is NOT considered a peril in property insurance?
A. Fire
B. Theft
C. Flood
D. Moral hazard
D. Moral hazard
Rationale: Moral hazard refers to the increased risk of loss due to the
insured’s behavior, not a specific peril covered by property insurance.
2. In Florida, which type of homeowners policy provides coverage for
named perils only?
A. HO-3
B. HO-2
C. HO-5
D. HO-8
B. HO-2
Rationale: HO-2 is a broad form policy covering only named perils specified in
the policy, unlike HO-3 which covers all risks except those specifically
excluded.
, 3. Which of the following is the standard deductible approach in most
property insurance policies?
A. Fixed-dollar deductible
B. Percentage deductible
C. Franchise deductible
D. Split deductible
A. Fixed-dollar deductible
Rationale: Most property insurance policies have a fixed-dollar deductible
that applies to each loss.
4. Which type of insurance protects against legal liability for injury or
damage to others?
A. Property insurance
B. Casualty insurance
C. Life insurance
D. Health insurance
B. Casualty insurance
Rationale: Casualty insurance covers liability for harm to others or their
property, such as in auto or general liability policies.
5. Which Florida law requires insurance companies to pay claims promptly?
A. Florida Insurance Code
B. Florida Prompt Payment of Claims Act
C. Florida Consumer Protection Act
D. Florida Unfair Trade Practices Act
B. Florida Prompt Payment of Claims Act
Rationale: This law mandates timely claims payment and specifies penalties
for delays.
6. In auto insurance, which coverage pays for damage to the insured’s car
caused by another driver who is uninsured?
A. Liability
B. Collision
C. Comprehensive
D. Uninsured motorist
, D. Uninsured motorist
Rationale: Uninsured motorist coverage protects the insured when the at-
fault driver has no insurance.
7. The purpose of a binder in insurance is to:
A. Permanently provide coverage
B. Serve as a temporary proof of coverage
C. Cancel the policy
D. Adjust the premium
B. Serve as a temporary proof of coverage
Rationale: A binder is a temporary contract providing proof of coverage until
the policy is issued.
8. In property insurance, “replacement cost” refers to:
A. Actual cash value minus depreciation
B. Cost to replace with like kind and quality
C. Market value of property
D. Appraised value by insurer
B. Cost to replace with like kind and quality
Rationale: Replacement cost coverage pays the amount necessary to repair or
replace damaged property without deducting for depreciation.
9. What type of liability is imposed by law regardless of fault?
A. Strict liability
B. Vicarious liability
C. Negligence
D. Absolute liability
A. Strict liability
Rationale: Strict liability holds a party legally responsible for damage or
injury regardless of fault.
10.Which insurance principle states that the insured cannot profit from a
loss?
A. Indemnity
B. Subrogation
