FL P&C COMPREHENSIVE PRACTICE TEST
EXAM QUESTIONS WITH ACTUAL ANSWERS
2026 – 2027 .
Liability Insurance is a two-party contract with payments made to which of the following?
A
The insured
B
The party of the first part
C
A third party
D
The party of the second part - correct Answers -Oops! The correct answer was C.
The parties to the Liability Insurance Contract are the insured and the insurer. Under the terms of
the policy, the insurer will pay those sums owed by the insured to a third party, whom the
insured may have negligently damaged by a tort.
Which of the following is NOT correct with respect to premium financing?
A. A premium finance agreement provides that the premium finance company will premiums to
the insurer to be repaid by the insured.
B. The service charge by an insurer may not be more than 1/2 of the additional charge by the
premium finance company companies.
C. The service charge allowed for a premium finance company is the same as the service charge
allowed for an agent.
D. A premium finance company must file all forms, service charge, and interest rate plants with
the Office for approval. - correct Answers -C. The service charge allowed for a premium
company is up to a maximum of $12 per $100 per year, plus a nonrefundable additional charge
up to $20, whereas the service charge allowed for an agent or agency cannot exceed $3 per
installment, or $36 year year.
1
,Which of the following best describes Towing and Labor Costs endorsement to the Personal
Auto Policy?
A. It provides coverage for towing a covered auto involved in an collision
B. It provides coverage for towing charges incurred when towing a disabled vehicle to the
insureds home
C. It provides payment for towing to a garage, or for labor that is performed at the site of a
mechanical disablement.
D. It provides coverage for labor costs incurred after being towed to a repair shop. - correct
Answers -C. Towing and Labor Costs Coverage pays for towing a mechanically disabled auto to
a garage or for labor performed at the site of disablement.
Under the Basic Dwelling Form, losses are paid on which basis? - correct Answers -Actual Cash
Value
The DP-1 pays on an actual cash value, rather than replacement cost basis.
All of the following are elements of an insurable risk, except:
A. The loss must be accidental
B. The loss may be catastrophic
C. The loss must be measurable
D. There must be a large number of homogenous units with the same exposure. - correct
Answers -B. Insurers want to avoid insuring against catastrophic perils.
Which of the following coverages is not provided by the Personal Liability endorsement?
A. Medical payments to others
B. Defense costs
C. First aid expenses
D. Injury caused to a regular resident of the dwelling - correct Answers -D. Liability coverage
applies to expenses incurred by resident employees, but not the named insured or regular
residents of the named insured household.
2
, Which of the following would be covered under the Damage to Property of Others additional
coverage of the Homeowners Policy?
A. Damage to the property owned by the insured
B. Damage arising out of the insured's business pursuits
C. Damage to the property owned by the insured's tenant
D. Damage caused intentionally by the insured 10-year-old son - correct Answers -Intentional
damage by a child under the age of 13 us covered.
Which of the following is not an element of negligence?
A. Assumption of risk
B. Foreseeable consequences
C. Proximate cause
D. Duty owed - correct Answers -A. The elements of negligence are: Duty of care, violation of
the duty of care, proximate cause, and damages that are foreseeable. Assumption of risk is
defense against negligence, rather than an element of it.
An exported insurance policy may not provide for deductible amounts other than those available
under similar policies in actual and current use, except for:
A. Commercial policies
B. Flood policies
C. Auto liability policies
D. Windstorm policies - correct Answers -D. Except for windstorm policies, an exported
insurance policy may not provide for deductible amounts other than those available under similar
policies in actual and current use.
In Florida, how much must be covered at a minimum under a unit owners residential property
policy in property loss assessment coverage? - correct Answers -$2000
At least $2000 must be covered under a unit owner's residential property policy loss assessment
coverage.
3
EXAM QUESTIONS WITH ACTUAL ANSWERS
2026 – 2027 .
Liability Insurance is a two-party contract with payments made to which of the following?
A
The insured
B
The party of the first part
C
A third party
D
The party of the second part - correct Answers -Oops! The correct answer was C.
The parties to the Liability Insurance Contract are the insured and the insurer. Under the terms of
the policy, the insurer will pay those sums owed by the insured to a third party, whom the
insured may have negligently damaged by a tort.
Which of the following is NOT correct with respect to premium financing?
A. A premium finance agreement provides that the premium finance company will premiums to
the insurer to be repaid by the insured.
B. The service charge by an insurer may not be more than 1/2 of the additional charge by the
premium finance company companies.
C. The service charge allowed for a premium finance company is the same as the service charge
allowed for an agent.
D. A premium finance company must file all forms, service charge, and interest rate plants with
the Office for approval. - correct Answers -C. The service charge allowed for a premium
company is up to a maximum of $12 per $100 per year, plus a nonrefundable additional charge
up to $20, whereas the service charge allowed for an agent or agency cannot exceed $3 per
installment, or $36 year year.
1
,Which of the following best describes Towing and Labor Costs endorsement to the Personal
Auto Policy?
A. It provides coverage for towing a covered auto involved in an collision
B. It provides coverage for towing charges incurred when towing a disabled vehicle to the
insureds home
C. It provides payment for towing to a garage, or for labor that is performed at the site of a
mechanical disablement.
D. It provides coverage for labor costs incurred after being towed to a repair shop. - correct
Answers -C. Towing and Labor Costs Coverage pays for towing a mechanically disabled auto to
a garage or for labor performed at the site of disablement.
Under the Basic Dwelling Form, losses are paid on which basis? - correct Answers -Actual Cash
Value
The DP-1 pays on an actual cash value, rather than replacement cost basis.
All of the following are elements of an insurable risk, except:
A. The loss must be accidental
B. The loss may be catastrophic
C. The loss must be measurable
D. There must be a large number of homogenous units with the same exposure. - correct
Answers -B. Insurers want to avoid insuring against catastrophic perils.
Which of the following coverages is not provided by the Personal Liability endorsement?
A. Medical payments to others
B. Defense costs
C. First aid expenses
D. Injury caused to a regular resident of the dwelling - correct Answers -D. Liability coverage
applies to expenses incurred by resident employees, but not the named insured or regular
residents of the named insured household.
2
, Which of the following would be covered under the Damage to Property of Others additional
coverage of the Homeowners Policy?
A. Damage to the property owned by the insured
B. Damage arising out of the insured's business pursuits
C. Damage to the property owned by the insured's tenant
D. Damage caused intentionally by the insured 10-year-old son - correct Answers -Intentional
damage by a child under the age of 13 us covered.
Which of the following is not an element of negligence?
A. Assumption of risk
B. Foreseeable consequences
C. Proximate cause
D. Duty owed - correct Answers -A. The elements of negligence are: Duty of care, violation of
the duty of care, proximate cause, and damages that are foreseeable. Assumption of risk is
defense against negligence, rather than an element of it.
An exported insurance policy may not provide for deductible amounts other than those available
under similar policies in actual and current use, except for:
A. Commercial policies
B. Flood policies
C. Auto liability policies
D. Windstorm policies - correct Answers -D. Except for windstorm policies, an exported
insurance policy may not provide for deductible amounts other than those available under similar
policies in actual and current use.
In Florida, how much must be covered at a minimum under a unit owners residential property
policy in property loss assessment coverage? - correct Answers -$2000
At least $2000 must be covered under a unit owner's residential property policy loss assessment
coverage.
3
