FLORIDA INSURANCE 20-44 PERSONAL
LINES EXAM STUDY GUIDE 2026/2027
QUESTIONS AND ANSWERS
1. Under the Florida No-Fault Law, if an insured is involved in an accident and has a non-
emergency medical condition, what is the maximum Personal Injury Protection (PIP) medical
benefit available?
A. $10,000
B. $2,500
C. $5,000
D. $1,000
Answer: B
Conceptual Explanation: Florida law limits PIP medical benefits to $2,500 unless the
individual is diagnosed with an Emergency Medical Condition (EMC).
2. Which of the following describes the ‘Valued Policy Law’ in Florida?
A. The insurer must pay the actual cash value of the property regardless of the limit.
B. The insurer only pays the replacement cost if the property is rebuilt at the same location.
,C. In the event of a total loss by a covered peril to a building, the insurer must pay the full
policy limit for which a premium was paid.
D. The policy limit is adjusted based on the current market value at the time of loss.
Answer: C
Conceptual Explanation: Florida’s Valued Policy Law (Statute 627.702) requires that for
total losses of buildings by covered perils, the insurer must pay the full amount stated in
the policy.
3. A 20-44 licensed agent must complete how many hours of continuing education every two
years if they have been licensed for less than 6 years?
A. 14 hours
B. 20 hours
C. 30 hours
D. 24 hours
Answer: D
Conceptual Explanation: Florida requires 24 hours of continuing education every two
years, which includes a 4-hour Law and Ethics update course.
4. In a Personal Auto Policy (PAP), ‘Your Covered Auto’ includes a newly acquired vehicle for a
period of how many days for Liability coverage if it is an additional vehicle?
A. 14 days
, B. 4 days
C. 30 days
D. 10 days
Answer: A
Conceptual Explanation: For an additional vehicle (not a replacement), the insured must
notify the insurer within 14 days to have liability coverage apply.
5. The Florida Insurance Guaranty Association (FIGA) handles claims for which of the
following?
A. High-risk drivers in the residual market
B. Self-insured employers
C. Surplus lines insurers
D. Insurers that have become insolvent
Answer: D
Conceptual Explanation: FIGA is a non-profit corporation created by the Florida
Legislature to provide a mechanism for the payment of covered claims under certain
insurance policies when an insurer becomes insolvent.
6. What is the standard deductible for hurricane coverage in Florida for a homeowners
policy?
A. $500
LINES EXAM STUDY GUIDE 2026/2027
QUESTIONS AND ANSWERS
1. Under the Florida No-Fault Law, if an insured is involved in an accident and has a non-
emergency medical condition, what is the maximum Personal Injury Protection (PIP) medical
benefit available?
A. $10,000
B. $2,500
C. $5,000
D. $1,000
Answer: B
Conceptual Explanation: Florida law limits PIP medical benefits to $2,500 unless the
individual is diagnosed with an Emergency Medical Condition (EMC).
2. Which of the following describes the ‘Valued Policy Law’ in Florida?
A. The insurer must pay the actual cash value of the property regardless of the limit.
B. The insurer only pays the replacement cost if the property is rebuilt at the same location.
,C. In the event of a total loss by a covered peril to a building, the insurer must pay the full
policy limit for which a premium was paid.
D. The policy limit is adjusted based on the current market value at the time of loss.
Answer: C
Conceptual Explanation: Florida’s Valued Policy Law (Statute 627.702) requires that for
total losses of buildings by covered perils, the insurer must pay the full amount stated in
the policy.
3. A 20-44 licensed agent must complete how many hours of continuing education every two
years if they have been licensed for less than 6 years?
A. 14 hours
B. 20 hours
C. 30 hours
D. 24 hours
Answer: D
Conceptual Explanation: Florida requires 24 hours of continuing education every two
years, which includes a 4-hour Law and Ethics update course.
4. In a Personal Auto Policy (PAP), ‘Your Covered Auto’ includes a newly acquired vehicle for a
period of how many days for Liability coverage if it is an additional vehicle?
A. 14 days
, B. 4 days
C. 30 days
D. 10 days
Answer: A
Conceptual Explanation: For an additional vehicle (not a replacement), the insured must
notify the insurer within 14 days to have liability coverage apply.
5. The Florida Insurance Guaranty Association (FIGA) handles claims for which of the
following?
A. High-risk drivers in the residual market
B. Self-insured employers
C. Surplus lines insurers
D. Insurers that have become insolvent
Answer: D
Conceptual Explanation: FIGA is a non-profit corporation created by the Florida
Legislature to provide a mechanism for the payment of covered claims under certain
insurance policies when an insurer becomes insolvent.
6. What is the standard deductible for hurricane coverage in Florida for a homeowners
policy?
A. $500
