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Florida Personal Lines Insurance NEWEST 2026 ACTUAL EXAM TEST- COMPLETE
REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ (MOST RECENT!!)
Florida Personal Lines Insurance
(Auto, Homeowners, Personal Insurance)
General Insurance Concepts (1–10)
1. Which principle requires an insured to have a financial interest in the property?
A. Indemnity
B. Insurable interest
C. Subrogation
D. Contribution
Answer: B
2. Insurance contracts are considered contracts of:
A. Adhesion
B. Bailment
C. Warranty
D. Agency
Answer: A
3. The purpose of insurance is to:
A. Prevent loss
B. Transfer risk
C. Eliminate risk
D. Create profit
2026 2027 GRADED A+
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Answer: B
4. Which element is required for a valid insurance contract?
A. Witness
B. Consideration
C. Notarization
D. Recording
Answer: B
5. Which principle prevents an insured from profiting from a loss?
A. Insurable interest
B. Subrogation
C. Indemnity
D. Contribution
Answer: C
6. The insured’s consideration is:
A. The promise to pay claims
B. The premium
C. The policy
D. The application
Answer: B
7. Ambiguities in insurance contracts are interpreted in favor of the:
A. Insurer
B. Agent
C. Insured
D. State
Answer: C
8. Risk that affects large groups of people is called:
A. Pure risk
2026 2027 GRADED A+
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B. Speculative risk
C. Particular risk
D. Fundamental risk
Answer: D
9. Which type of risk is insurable?
A. Gambling
B. Investment loss
C. Fire damage
D. Business speculation
Answer: C
10. A policy endorsement is used to:
A. Cancel coverage
B. Modify coverage
C. Renew coverage
D. Replace policy
Answer: B
Personal Auto Insurance (11–25)
11. Florida is a(n):
A. At-fault state
B. No-fault state
C. Comparative negligence state
D. Strict liability state
Answer: B
12. Personal Injury Protection (PIP) pays up to:
A. $5,000
B. $10,000
C. $25,000
D. $50,000
2026 2027 GRADED A+
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Answer: B
13. PIP covers:
A. Property damage
B. Medical expenses and lost wages
C. Vehicle repairs
D. Liability claims
Answer: B
14. Which coverage pays for damage to another person’s property?
A. Collision
B. Comprehensive
C. Property Damage Liability
D. Medical Payments
Answer: C
15. Florida minimum Property Damage Liability is:
A. $5,000
B. $10,000
C. $25,000
D. $50,000
Answer: B
16. Collision coverage pays for damage:
A. From theft
B. From vandalism
C. From impact with another object
D. From flood
Answer: C
17. Comprehensive coverage includes damage from:
A. Collision only
2026 2027 GRADED A+
Florida Personal Lines Insurance NEWEST 2026 ACTUAL EXAM TEST- COMPLETE
REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ (MOST RECENT!!)
Florida Personal Lines Insurance
(Auto, Homeowners, Personal Insurance)
General Insurance Concepts (1–10)
1. Which principle requires an insured to have a financial interest in the property?
A. Indemnity
B. Insurable interest
C. Subrogation
D. Contribution
Answer: B
2. Insurance contracts are considered contracts of:
A. Adhesion
B. Bailment
C. Warranty
D. Agency
Answer: A
3. The purpose of insurance is to:
A. Prevent loss
B. Transfer risk
C. Eliminate risk
D. Create profit
2026 2027 GRADED A+
,2|Page
Answer: B
4. Which element is required for a valid insurance contract?
A. Witness
B. Consideration
C. Notarization
D. Recording
Answer: B
5. Which principle prevents an insured from profiting from a loss?
A. Insurable interest
B. Subrogation
C. Indemnity
D. Contribution
Answer: C
6. The insured’s consideration is:
A. The promise to pay claims
B. The premium
C. The policy
D. The application
Answer: B
7. Ambiguities in insurance contracts are interpreted in favor of the:
A. Insurer
B. Agent
C. Insured
D. State
Answer: C
8. Risk that affects large groups of people is called:
A. Pure risk
2026 2027 GRADED A+
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B. Speculative risk
C. Particular risk
D. Fundamental risk
Answer: D
9. Which type of risk is insurable?
A. Gambling
B. Investment loss
C. Fire damage
D. Business speculation
Answer: C
10. A policy endorsement is used to:
A. Cancel coverage
B. Modify coverage
C. Renew coverage
D. Replace policy
Answer: B
Personal Auto Insurance (11–25)
11. Florida is a(n):
A. At-fault state
B. No-fault state
C. Comparative negligence state
D. Strict liability state
Answer: B
12. Personal Injury Protection (PIP) pays up to:
A. $5,000
B. $10,000
C. $25,000
D. $50,000
2026 2027 GRADED A+
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Answer: B
13. PIP covers:
A. Property damage
B. Medical expenses and lost wages
C. Vehicle repairs
D. Liability claims
Answer: B
14. Which coverage pays for damage to another person’s property?
A. Collision
B. Comprehensive
C. Property Damage Liability
D. Medical Payments
Answer: C
15. Florida minimum Property Damage Liability is:
A. $5,000
B. $10,000
C. $25,000
D. $50,000
Answer: B
16. Collision coverage pays for damage:
A. From theft
B. From vandalism
C. From impact with another object
D. From flood
Answer: C
17. Comprehensive coverage includes damage from:
A. Collision only
2026 2027 GRADED A+
