FLORIDA INSURANCE 20-44 PERSONAL
LINES AGENT FINAL EXAM
QUESTIONS AND ANSWERS
1. Under Florida’s No-Fault Law, if an insured is involved in an accident and does not have an
‘Emergency Medical Condition’ (EMC), what is the maximum PIP medical benefit payable?
A. $10,000
B. $2,500
C. $5,000
D. $0
Answer: B
Conceptual Explanation: In Florida, if a medical provider does not diagnose the individual
with an Emergency Medical Condition (EMC), the PIP medical benefit is limited to $2,500.
2. Which of the following Homeowners forms provides ‘Open Peril’ coverage for both the
Dwelling (Coverage A) and Personal Property (Coverage C)?
A. HO-3
B. HO-5
,C. HO-2
D. HO-8
Answer: B
Conceptual Explanation: The HO-5 Comprehensive Form provides open peril coverage
for both the dwelling and personal property, whereas the HO-3 only provides open peril for
the dwelling.
3. An insured has a Personal Auto Policy with 10/20/10 limits. They are at fault in an accident
causing $15,000 in bodily injury to one person. How much will the policy pay for this injury?
A. $10,000
B. $15,000
C. $20,000
D. $5,000
Answer: A
Conceptual Explanation: The first number (10) represents the maximum per person
bodily injury limit, which is $10,000.
4. In the event of a total loss by fire to a Florida residence, the insurer must pay the full policy
limit regardless of the actual cash value. This is known as:
A. The Valued Policy Law
B. The Principle of Indemnity
, C. The Liberalization Clause
D. The Coinsurance Clause
Answer: A
Conceptual Explanation: Florida’s Valued Policy Law requires insurers to pay the full
policy limit in the event of a total loss by a covered peril to a building.
5. Which DP (Dwelling Policy) form provides coverage for ‘Weight of Ice, Snow, or Sleet’ as a
named peril?
A. DP-2
B. DP-1
C. All DP forms
D. None of the DP forms
Answer: A
Conceptual Explanation: The DP-2 Broad Form includes coverage for weight of ice, snow,
or sleet, while the DP-1 Basic Form does not.
6. Under the Florida Personal Injury Protection (PIP) system, what percentage of lost wages is
covered?
A. 100%
B. 80%
C. 50%
LINES AGENT FINAL EXAM
QUESTIONS AND ANSWERS
1. Under Florida’s No-Fault Law, if an insured is involved in an accident and does not have an
‘Emergency Medical Condition’ (EMC), what is the maximum PIP medical benefit payable?
A. $10,000
B. $2,500
C. $5,000
D. $0
Answer: B
Conceptual Explanation: In Florida, if a medical provider does not diagnose the individual
with an Emergency Medical Condition (EMC), the PIP medical benefit is limited to $2,500.
2. Which of the following Homeowners forms provides ‘Open Peril’ coverage for both the
Dwelling (Coverage A) and Personal Property (Coverage C)?
A. HO-3
B. HO-5
,C. HO-2
D. HO-8
Answer: B
Conceptual Explanation: The HO-5 Comprehensive Form provides open peril coverage
for both the dwelling and personal property, whereas the HO-3 only provides open peril for
the dwelling.
3. An insured has a Personal Auto Policy with 10/20/10 limits. They are at fault in an accident
causing $15,000 in bodily injury to one person. How much will the policy pay for this injury?
A. $10,000
B. $15,000
C. $20,000
D. $5,000
Answer: A
Conceptual Explanation: The first number (10) represents the maximum per person
bodily injury limit, which is $10,000.
4. In the event of a total loss by fire to a Florida residence, the insurer must pay the full policy
limit regardless of the actual cash value. This is known as:
A. The Valued Policy Law
B. The Principle of Indemnity
, C. The Liberalization Clause
D. The Coinsurance Clause
Answer: A
Conceptual Explanation: Florida’s Valued Policy Law requires insurers to pay the full
policy limit in the event of a total loss by a covered peril to a building.
5. Which DP (Dwelling Policy) form provides coverage for ‘Weight of Ice, Snow, or Sleet’ as a
named peril?
A. DP-2
B. DP-1
C. All DP forms
D. None of the DP forms
Answer: A
Conceptual Explanation: The DP-2 Broad Form includes coverage for weight of ice, snow,
or sleet, while the DP-1 Basic Form does not.
6. Under the Florida Personal Injury Protection (PIP) system, what percentage of lost wages is
covered?
A. 100%
B. 80%
C. 50%
