FLORIDA Personal Lines License Exam New Updated Version
2026 Questions And Correct Verified Answers
What level of authority is given to the Office of Insurance Regulation with respect to examination of
6
insurer's activities to determine compliance Unfair Trade Practice laws?
a)Civil
2
b)Absolute
20
c)Voluntary
d)Limited - ANSWER-b)Absolute
Florida statutes provide the Office of Insurance Regulation with an absolute right to examine the affairs of
am
every person (insurers and licensees) involved in the business of insurance to see if they are engaged in any
unfair trade practices.
Bob insists that the insurer owes him $10,000 for liability damages, while his insurer asserts that they owe
Ex
him no more than $7,000. Which of the following would most likely describe the type of claim settlement that
they might pursue?
a)Appraisal hearing
s
b)Arbitration
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c)Small claims court
d)Independent audit - ANSWER-b)Arbitration
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When an insured and insurer cannot agree on how to settle a claim, arbitration is often used. The settlement
is submitted to an arbitrator(s) whose decision may or may not be binding on both parties dependent on
state law.
Ex
For cancellation of a commercial property policy during the first 90 days, for a reason other than nonpayment of
premium, the insurer must give the insured advance written notice of at least how many days?
a)10 days
b)20 days
c)30 days
d)45 days - ANSWER-b)20 days
,Cancellation of a policy by the insurer during the first 90 days requires that it gives the insured advance written
notice of 20 days and state the reason(s) for the cancellation.
Which of the following is a method of claim settlement used in casualty insurance when the insured and insurer
cannot agree on how to settle a claim?
26
a)Appraisal
b)Arbitration
c)Proof of loss
20
d)Restoration - ANSWER-b)Arbitration
Arbitration is a method of casualty claim settlement used when the insured and insurer cannot agree on how to
settle a claim. The arbitrator's decision is binding to both parties.
am
Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?
a)No more than the per occurrence limit applies, no matter how many insureds are involved.
Ex
b)Pro rata liability applies.
c)A homeowners policy can have no more than one insured.
d)The full limit applies to each insured individually. - ANSWER-a)No more than the per occurrence limit applies, no
s
matter how many insureds are involved.
The insurance applies separately to each insured. This condition does not increase the insurer's liability for any one
rt
occurrence.
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Which of the following is true regarding branch agency licensing?
a)The branch must secure an agency license.
Ex
b)There are no special licensing requirements.
c)Agent in charge must be licensed.
d)All its agents must be licensed. - ANSWER-c)Agent in charge must be licensed.
Each branch location established by an agent, agency, firm, corporation, or association must be in the active full-
time charge of a licensed general lines, or life and/or health agent who is appointed to represent one or more
insurers.
,How can an agent determine if an insurer is authorized to transact insurance in the state of Florida?
a)Ask the insurer to provide documentation
b)Review the company's annual report
c)Obtain a copy of the company's business plan
d)Visit the OIR website and conduct a company search - ANSWER-d)Visit the OIR website and conduct a
company search
2 6
All of the following are true regarding deposit premium EXCEPT
20
a)It could be adjusted by the audit.
b)It must be paid in advance.
c)It is an estimated premium paid at the policy issue.
am
d)It is 50% of the actual premium. - ANSWER-D.)It is 50% of the actual premium.
Deposit premium is an estimated premium paid in advance at the time the policy is issued that may be
adjusted by the audit based on actual exposures.
Ex
All of the following are considered parts of the policy structure EXCEPT
a)Insuring clause.
b)Conditions.
ts
c)Provisions.
r
d)Exclusions. - ANSWER-c)Provisions.
Provisions is a broad term used to referto the sections or clauses of an insurance policy that communicate
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the policy's benefits, conditions, etc. The essential parts of the policy are declarations,insuring clause,
conditions and exclusions.
Ex
Al, permanently injured by Jim in an accident, has total damages of $60,000. Al has PIP and Uninsured
Motorist coverage of $100,000. Jim has the minimum limit of liability required by Florida. How much would Al
collect under U/M?
a)$50,000
b)$40,000
c)$20,000
d)$60,000 - ANSWER-b)$40,000
, U/M is not intended to duplicate payments otherwise available. Al could recover $10,000 from PIP,$10,000
(the per person limit under Jim's policy), and $40,000 from his U/M coverage.
What is the deductible of a personal liability umbrella policy called?
a)The PIL
26
b)The CGL
c)The CPP
20
d)The SIR - ANSWER-d)The SIR
The self-insured retention (SIR) is an initial part of a loss the insured pays before the umbrella pays if no other
policy covers the loss.
am
Which of the following entities has the authority to make changes to an insurance policy?
a)Agent
b)Insured
Ex
c)Insurance company's executive officer
d)Either agent or insurance company's executive officer. - ANSWER-c)Insurance company's executive
officer
s
Only an executive officer of the company, not an agent, has authority to make any changes to the policy.
rt
The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other
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structures on land.
a)Leased by the owner of the land.
Ex
b)Owned or leased by the resident of the mobilehome.
c)Owned or leased by a landlord who does not reside on the premises.
d)Owned by a landlord who does not use the mobilehome located on it. - ANSWER-b)Owned or leased by the
resident of the mobilehome.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other
structures on land owned or leased by the resident of the mobilehome.
2026 Questions And Correct Verified Answers
What level of authority is given to the Office of Insurance Regulation with respect to examination of
6
insurer's activities to determine compliance Unfair Trade Practice laws?
a)Civil
2
b)Absolute
20
c)Voluntary
d)Limited - ANSWER-b)Absolute
Florida statutes provide the Office of Insurance Regulation with an absolute right to examine the affairs of
am
every person (insurers and licensees) involved in the business of insurance to see if they are engaged in any
unfair trade practices.
Bob insists that the insurer owes him $10,000 for liability damages, while his insurer asserts that they owe
Ex
him no more than $7,000. Which of the following would most likely describe the type of claim settlement that
they might pursue?
a)Appraisal hearing
s
b)Arbitration
rt
c)Small claims court
d)Independent audit - ANSWER-b)Arbitration
pe
When an insured and insurer cannot agree on how to settle a claim, arbitration is often used. The settlement
is submitted to an arbitrator(s) whose decision may or may not be binding on both parties dependent on
state law.
Ex
For cancellation of a commercial property policy during the first 90 days, for a reason other than nonpayment of
premium, the insurer must give the insured advance written notice of at least how many days?
a)10 days
b)20 days
c)30 days
d)45 days - ANSWER-b)20 days
,Cancellation of a policy by the insurer during the first 90 days requires that it gives the insured advance written
notice of 20 days and state the reason(s) for the cancellation.
Which of the following is a method of claim settlement used in casualty insurance when the insured and insurer
cannot agree on how to settle a claim?
26
a)Appraisal
b)Arbitration
c)Proof of loss
20
d)Restoration - ANSWER-b)Arbitration
Arbitration is a method of casualty claim settlement used when the insured and insurer cannot agree on how to
settle a claim. The arbitrator's decision is binding to both parties.
am
Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?
a)No more than the per occurrence limit applies, no matter how many insureds are involved.
Ex
b)Pro rata liability applies.
c)A homeowners policy can have no more than one insured.
d)The full limit applies to each insured individually. - ANSWER-a)No more than the per occurrence limit applies, no
s
matter how many insureds are involved.
The insurance applies separately to each insured. This condition does not increase the insurer's liability for any one
rt
occurrence.
pe
Which of the following is true regarding branch agency licensing?
a)The branch must secure an agency license.
Ex
b)There are no special licensing requirements.
c)Agent in charge must be licensed.
d)All its agents must be licensed. - ANSWER-c)Agent in charge must be licensed.
Each branch location established by an agent, agency, firm, corporation, or association must be in the active full-
time charge of a licensed general lines, or life and/or health agent who is appointed to represent one or more
insurers.
,How can an agent determine if an insurer is authorized to transact insurance in the state of Florida?
a)Ask the insurer to provide documentation
b)Review the company's annual report
c)Obtain a copy of the company's business plan
d)Visit the OIR website and conduct a company search - ANSWER-d)Visit the OIR website and conduct a
company search
2 6
All of the following are true regarding deposit premium EXCEPT
20
a)It could be adjusted by the audit.
b)It must be paid in advance.
c)It is an estimated premium paid at the policy issue.
am
d)It is 50% of the actual premium. - ANSWER-D.)It is 50% of the actual premium.
Deposit premium is an estimated premium paid in advance at the time the policy is issued that may be
adjusted by the audit based on actual exposures.
Ex
All of the following are considered parts of the policy structure EXCEPT
a)Insuring clause.
b)Conditions.
ts
c)Provisions.
r
d)Exclusions. - ANSWER-c)Provisions.
Provisions is a broad term used to referto the sections or clauses of an insurance policy that communicate
pe
the policy's benefits, conditions, etc. The essential parts of the policy are declarations,insuring clause,
conditions and exclusions.
Ex
Al, permanently injured by Jim in an accident, has total damages of $60,000. Al has PIP and Uninsured
Motorist coverage of $100,000. Jim has the minimum limit of liability required by Florida. How much would Al
collect under U/M?
a)$50,000
b)$40,000
c)$20,000
d)$60,000 - ANSWER-b)$40,000
, U/M is not intended to duplicate payments otherwise available. Al could recover $10,000 from PIP,$10,000
(the per person limit under Jim's policy), and $40,000 from his U/M coverage.
What is the deductible of a personal liability umbrella policy called?
a)The PIL
26
b)The CGL
c)The CPP
20
d)The SIR - ANSWER-d)The SIR
The self-insured retention (SIR) is an initial part of a loss the insured pays before the umbrella pays if no other
policy covers the loss.
am
Which of the following entities has the authority to make changes to an insurance policy?
a)Agent
b)Insured
Ex
c)Insurance company's executive officer
d)Either agent or insurance company's executive officer. - ANSWER-c)Insurance company's executive
officer
s
Only an executive officer of the company, not an agent, has authority to make any changes to the policy.
rt
The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other
pe
structures on land.
a)Leased by the owner of the land.
Ex
b)Owned or leased by the resident of the mobilehome.
c)Owned or leased by a landlord who does not reside on the premises.
d)Owned by a landlord who does not use the mobilehome located on it. - ANSWER-b)Owned or leased by the
resident of the mobilehome.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other
structures on land owned or leased by the resident of the mobilehome.
