Florida Pearson VUE Property and Casualty Practice Test
1 Questions & Correct Answers | 20-44 Personal Lines |
2026-2027 Edition
This comprehensive practice test is designed to help you prepare for the Florida
20-44 Personal Lines Insurance License Exam administered by Pearson VUE . The
20-44 license permits agents to transact personal lines property and casualty
insurance (auto, homeowners, dwelling, personal liability) for individuals and
families for non-commercial purposes . Candidates must complete 60 hours of
pre-licensing education and pass a state exam consisting of 108 questions .
Exam Overview
Detail Information
License Type 20-44 Personal Lines Agent
Pre-Licensing Hours 60 hours
Exam Provider Pearson VUE
Exam Length 108 questions
Passing Score 70%
Exam Domains Auto, Homeowners, Dwelling, Liability, Florida Statutes, Ethics
Course Provider FAIA (Florida Association of Insurance Agents)
SECTION 1: INSURANCE BASICS & CONCEPTS (Questions 1-80)
Question 1: An insurance policy is a "Contract of Adhesion" because:
A) Both parties negotiate the terms equally
B) One party draws up the contract and the other must accept it as written
,C) It is based on an exchange of unequal values
D) It depends on the occurrence of an uncertain event
Correct Answer: B
Rationale: A contract of adhesion is a "take-it-or-leave-it" contract. The insurer prepares the
policy language, and the insured has little or no ability to negotiate the terms. Ambiguities in
the contract are interpreted in favor of the insured . The Florida Department of Financial
Services regulates contract standards to protect consumers.
Question 2: Which of the following is a requirement for a valid insurance contract?
A) Profit motive
B) Written format only
C) Legal purpose
D) Notary public signature
Correct Answer: C
Rationale: For a contract to be enforceable, it must have a legal purpose . Contracts for illegal
acts are void. Other required elements include offer and acceptance, consideration, and
competent parties. Insurance contracts must also meet the statutory requirements of Florida
law.
Question 3: What is a moral hazard?
A) Leaving the front door unlocked
B) An oily rag left near a furnace
C) An insured intentionally setting fire to their house to collect insurance
, D) A lightning strike during a thunderstorm
Correct Answer: C
Rationale: Moral hazard refers to the tendency of individuals to act dishonestly or with a lack of
integrity because they have insurance coverage . Intentionally causing a loss is a moral hazard.
Physical hazards include unlocked doors or oily rags. Pure perils are unexpected events like
lightning.
Question 4: In Florida, an agent's license is considered:
A) A right granted to any citizen
B) A permanent appointment regardless of activity
C) A privilege granted by the state
D) Valid only for 12 months
Correct Answer: C
Rationale: An insurance license is a privilege, not a right, and is subject to state regulations,
including continuing education and ethical conduct. The Florida Department of Financial
Services (DFS) licenses and regulates insurance agents .
Question 5: If an insurance agent makes a false statement about a competitor's financial
condition, they are guilty of:
A) Churning
B) Twisting
C) Defamation
D) Coercion
1 Questions & Correct Answers | 20-44 Personal Lines |
2026-2027 Edition
This comprehensive practice test is designed to help you prepare for the Florida
20-44 Personal Lines Insurance License Exam administered by Pearson VUE . The
20-44 license permits agents to transact personal lines property and casualty
insurance (auto, homeowners, dwelling, personal liability) for individuals and
families for non-commercial purposes . Candidates must complete 60 hours of
pre-licensing education and pass a state exam consisting of 108 questions .
Exam Overview
Detail Information
License Type 20-44 Personal Lines Agent
Pre-Licensing Hours 60 hours
Exam Provider Pearson VUE
Exam Length 108 questions
Passing Score 70%
Exam Domains Auto, Homeowners, Dwelling, Liability, Florida Statutes, Ethics
Course Provider FAIA (Florida Association of Insurance Agents)
SECTION 1: INSURANCE BASICS & CONCEPTS (Questions 1-80)
Question 1: An insurance policy is a "Contract of Adhesion" because:
A) Both parties negotiate the terms equally
B) One party draws up the contract and the other must accept it as written
,C) It is based on an exchange of unequal values
D) It depends on the occurrence of an uncertain event
Correct Answer: B
Rationale: A contract of adhesion is a "take-it-or-leave-it" contract. The insurer prepares the
policy language, and the insured has little or no ability to negotiate the terms. Ambiguities in
the contract are interpreted in favor of the insured . The Florida Department of Financial
Services regulates contract standards to protect consumers.
Question 2: Which of the following is a requirement for a valid insurance contract?
A) Profit motive
B) Written format only
C) Legal purpose
D) Notary public signature
Correct Answer: C
Rationale: For a contract to be enforceable, it must have a legal purpose . Contracts for illegal
acts are void. Other required elements include offer and acceptance, consideration, and
competent parties. Insurance contracts must also meet the statutory requirements of Florida
law.
Question 3: What is a moral hazard?
A) Leaving the front door unlocked
B) An oily rag left near a furnace
C) An insured intentionally setting fire to their house to collect insurance
, D) A lightning strike during a thunderstorm
Correct Answer: C
Rationale: Moral hazard refers to the tendency of individuals to act dishonestly or with a lack of
integrity because they have insurance coverage . Intentionally causing a loss is a moral hazard.
Physical hazards include unlocked doors or oily rags. Pure perils are unexpected events like
lightning.
Question 4: In Florida, an agent's license is considered:
A) A right granted to any citizen
B) A permanent appointment regardless of activity
C) A privilege granted by the state
D) Valid only for 12 months
Correct Answer: C
Rationale: An insurance license is a privilege, not a right, and is subject to state regulations,
including continuing education and ethical conduct. The Florida Department of Financial
Services (DFS) licenses and regulates insurance agents .
Question 5: If an insurance agent makes a false statement about a competitor's financial
condition, they are guilty of:
A) Churning
B) Twisting
C) Defamation
D) Coercion
