FLORIDA 20-44 PERSONAL LINES
AGENT EXAM PRACTICE QUESTIONS
AND ANSWERS
1. Under the Florida No-Fault Law, if an insured is injured in a motor vehicle accident and has
$10,000 in PIP coverage, what is the maximum death benefit provided?
A. $2,500
B. $1,000
C. $10,000
D. $5,000
Answer: D
Conceptual Explanation: In Florida, the PIP death benefit is a flat $5,000, which is in
addition to the $10,000 available for medical and disability benefits.
2. Which of the following would NOT be covered under the Section II Liability portion of a
Homeowners policy?
A. A guest slips on a rug and breaks their arm
B. The insured’s dog bites a neighbor
,C. The insured’s own medical expenses after falling down their stairs
D. The insured accidentally breaks a window at a friend’s house
Answer: C
Conceptual Explanation: Section II Liability and Medical Payments to Others covers third
parties, not the insured or regular residents of the household.
3. In Florida, the ‘Valued Policy Law’ applies to which type of loss?
A. Total loss of a building by any covered peril
B. Total loss of a building by fire, lightning, or explosion
C. Partial loss of a building by fire
D. Theft of personal property
Answer: B
Conceptual Explanation: Florida’s Valued Policy Law (Statute 627.702) requires the
insurer to pay the full policy limit for a total loss of a building caused by fire, lightning, or
explosion.
4. A Personal Umbrella policy typically provides coverage on what basis?
A. Excess over underlying limits
B. Named Peril
C. Primary coverage for auto only
, D. Only for professional liability
Answer: A
Conceptual Explanation: An Umbrella policy provides excess liability coverage above the
limits of underlying policies like Auto or Homeowners.
5. Under a Personal Auto Policy, ‘Your Covered Auto’ includes a newly acquired vehicle. For
‘Coverage Other Than Collision’ to apply, when must the insured notify the insurer if they
already have that coverage on at least one auto?
A. Within 4 days
B. Within 30 days
C. Within 14 days
D. Immediately
Answer: C
Conceptual Explanation: If the insured already has ‘Other Than Collision’ coverage, they
generally have 14 days to report the new vehicle to the insurer.
6. Which Homeowners form is specifically designed for condominium unit owners?
A. HO-2
B. HO-4
C. HO-8
D. HO-6
AGENT EXAM PRACTICE QUESTIONS
AND ANSWERS
1. Under the Florida No-Fault Law, if an insured is injured in a motor vehicle accident and has
$10,000 in PIP coverage, what is the maximum death benefit provided?
A. $2,500
B. $1,000
C. $10,000
D. $5,000
Answer: D
Conceptual Explanation: In Florida, the PIP death benefit is a flat $5,000, which is in
addition to the $10,000 available for medical and disability benefits.
2. Which of the following would NOT be covered under the Section II Liability portion of a
Homeowners policy?
A. A guest slips on a rug and breaks their arm
B. The insured’s dog bites a neighbor
,C. The insured’s own medical expenses after falling down their stairs
D. The insured accidentally breaks a window at a friend’s house
Answer: C
Conceptual Explanation: Section II Liability and Medical Payments to Others covers third
parties, not the insured or regular residents of the household.
3. In Florida, the ‘Valued Policy Law’ applies to which type of loss?
A. Total loss of a building by any covered peril
B. Total loss of a building by fire, lightning, or explosion
C. Partial loss of a building by fire
D. Theft of personal property
Answer: B
Conceptual Explanation: Florida’s Valued Policy Law (Statute 627.702) requires the
insurer to pay the full policy limit for a total loss of a building caused by fire, lightning, or
explosion.
4. A Personal Umbrella policy typically provides coverage on what basis?
A. Excess over underlying limits
B. Named Peril
C. Primary coverage for auto only
, D. Only for professional liability
Answer: A
Conceptual Explanation: An Umbrella policy provides excess liability coverage above the
limits of underlying policies like Auto or Homeowners.
5. Under a Personal Auto Policy, ‘Your Covered Auto’ includes a newly acquired vehicle. For
‘Coverage Other Than Collision’ to apply, when must the insured notify the insurer if they
already have that coverage on at least one auto?
A. Within 4 days
B. Within 30 days
C. Within 14 days
D. Immediately
Answer: C
Conceptual Explanation: If the insured already has ‘Other Than Collision’ coverage, they
generally have 14 days to report the new vehicle to the insurer.
6. Which Homeowners form is specifically designed for condominium unit owners?
A. HO-2
B. HO-4
C. HO-8
D. HO-6
