FLORIDA GENERAL LINES EXAMS SET 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔Which of the following does the term proximate cause refer to?
a)Reason for filing a lawsuit
b)Negligence that leads to an injury
c)Injury that leads to monetary compensation
d)Duty of the defendant to act - ✔✔b)Negligence that leads to an injury
Proximate cause is the reasonably foreseeable act or event that results in an injury or
damage. Negligence may often be the proximate cause of the damage; without it, the
accident would not have happened. This is also called direct liability.
✔✔What is the basic limit for costs incurred at the place a vehicle is disabled provided
by the towing and labor costs endorsement?
a)$25
b)$50
c)$75
d)$100 - ✔✔a)$25
This endorsement provides a basic limit of $25 for towing and labor costs incurred at the
place a vehicle is disabled. Higher limits are available for an additional premium.
✔✔An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated?
a)To extend coverage to motorized vehicles rented for recreation
b)To expand the definition of a covered auto to include various motorized vehicles
c)To limit coverage to various motorized vehicles only
d)To provide coverage for hit-and-run accidents The miscellaneous type vehicle
endorsement is used to - ✔✔B.) to expand the definition of a covered auto to a include
various motorized vehicles
The miscellaneous type vehicle endorsement is used to expand the definition of a
covered auto to include motorized vehicles such as motorcycles, motor homes, golf
carts, dune buggies, and other recreational vehicles.
✔✔Which of the following is a method of claim settlement used in casualty insurance
when the insured and insurer cannot agree on how to settle a claim?
a)It provides excess liability coverage over underlying personal liability.
,b)It provides errors and omissions coverage for an agency.
c)It may cover certain exposures not provided under the primary layer.
d)It may require the payment of a self-insured retention. - ✔✔b)It provides errors and
omissions coverage for an agency.
Personal umbrella policies cover the personal exposure of the insured. Errors and
omissions coverage is provided only in a professional liability policy.
✔✔The ABC Corporation has $100,000 of coverage on its building through insurance
Company A, and $50,000 of identical coverage on the same building through insurance
Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and
the pro rata method is used, how much will each insurer pay?
a)Company A will pay $20,000; Company B will pay $4,000.
b)Company A will pay $12,000; Company B will pay $12,000.
c)Company A will pay $24,000; Company B will pay $0.
d)Company A will pay $16,000; Company B will pay $8,000. - ✔✔d)Company A will pay
$16,000; Company B will pay $8,000.
Each policy pays its pro rata share of the loss based upon each policy's share of the
total amount of coverage.
✔✔Johanna purchased a National Flood Insurance policy 10 days after her community
entered an emergency program. When would her coverage be effective?
a)30 days after the application has been accepted
b)12:01 pm on the 5th day after the endorsement request has been mailed
c)5 days after the application and premium payment are mailed
d)12:01 am the day after the application and premium payment are mailed - ✔✔d)12:01
am the day after the application and premium payment are mailed
During the first 30 days after a community enters the emergency or normal programs,
coverage on a flood policy begins at 12:01 a.m. the day after application and premium
payment have been mailed.
✔✔The regular National Flood Insurance Program would insure an eligible single-family
dwelling for up to
a)$150,000.
, b)$200,000.
c)$250,000.
d)$100,000. - ✔✔c)$250,000.
It is written for the value of the dwelling up to $250,000 on a replacement cost basis.
✔✔Which of the following is NOT a responsibility of the Office of Insurance Regulation?
a)Instituting legal proceedings
b)Enacting new insurance laws
c)Enforcing the Insurance Code
d)Issuing certificates of authority - ✔✔b)Enacting new insurance laws
New laws are enacted by the state legislature.
✔✔In Florida, the Financial Responsibility Law is administered by
a)State Attorney General.
b)The Department of Insurance.
c)Department of Highway Safety and Motor Vehicles.
d)Florida No-Fault Motor Vehicle Commission. - ✔✔c)Department of Highway Safety
and Motor Vehicles.
The Department of Highway Safety and Motor Vehicles has established specific
financial requirement as a condition for registering and operating a motor vehicle in the
state.
✔✔Under special circumstances, continuing education requirements may be extended
beyond the 2-year period for a maximum period of
a)6 months.
b)9 months.
c)12 months.
d)3 months. - ✔✔c)12 months.
Excess classroom hours accumulated during any 2-year period may be carried forward
to the next 2-year period. If good cause is shown, the department may grant an
extension not to exceed 1 year.
QUESTIONS AND SOLUTIONS GRADED A+
✔✔Which of the following does the term proximate cause refer to?
a)Reason for filing a lawsuit
b)Negligence that leads to an injury
c)Injury that leads to monetary compensation
d)Duty of the defendant to act - ✔✔b)Negligence that leads to an injury
Proximate cause is the reasonably foreseeable act or event that results in an injury or
damage. Negligence may often be the proximate cause of the damage; without it, the
accident would not have happened. This is also called direct liability.
✔✔What is the basic limit for costs incurred at the place a vehicle is disabled provided
by the towing and labor costs endorsement?
a)$25
b)$50
c)$75
d)$100 - ✔✔a)$25
This endorsement provides a basic limit of $25 for towing and labor costs incurred at the
place a vehicle is disabled. Higher limits are available for an additional premium.
✔✔An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated?
a)To extend coverage to motorized vehicles rented for recreation
b)To expand the definition of a covered auto to include various motorized vehicles
c)To limit coverage to various motorized vehicles only
d)To provide coverage for hit-and-run accidents The miscellaneous type vehicle
endorsement is used to - ✔✔B.) to expand the definition of a covered auto to a include
various motorized vehicles
The miscellaneous type vehicle endorsement is used to expand the definition of a
covered auto to include motorized vehicles such as motorcycles, motor homes, golf
carts, dune buggies, and other recreational vehicles.
✔✔Which of the following is a method of claim settlement used in casualty insurance
when the insured and insurer cannot agree on how to settle a claim?
a)It provides excess liability coverage over underlying personal liability.
,b)It provides errors and omissions coverage for an agency.
c)It may cover certain exposures not provided under the primary layer.
d)It may require the payment of a self-insured retention. - ✔✔b)It provides errors and
omissions coverage for an agency.
Personal umbrella policies cover the personal exposure of the insured. Errors and
omissions coverage is provided only in a professional liability policy.
✔✔The ABC Corporation has $100,000 of coverage on its building through insurance
Company A, and $50,000 of identical coverage on the same building through insurance
Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and
the pro rata method is used, how much will each insurer pay?
a)Company A will pay $20,000; Company B will pay $4,000.
b)Company A will pay $12,000; Company B will pay $12,000.
c)Company A will pay $24,000; Company B will pay $0.
d)Company A will pay $16,000; Company B will pay $8,000. - ✔✔d)Company A will pay
$16,000; Company B will pay $8,000.
Each policy pays its pro rata share of the loss based upon each policy's share of the
total amount of coverage.
✔✔Johanna purchased a National Flood Insurance policy 10 days after her community
entered an emergency program. When would her coverage be effective?
a)30 days after the application has been accepted
b)12:01 pm on the 5th day after the endorsement request has been mailed
c)5 days after the application and premium payment are mailed
d)12:01 am the day after the application and premium payment are mailed - ✔✔d)12:01
am the day after the application and premium payment are mailed
During the first 30 days after a community enters the emergency or normal programs,
coverage on a flood policy begins at 12:01 a.m. the day after application and premium
payment have been mailed.
✔✔The regular National Flood Insurance Program would insure an eligible single-family
dwelling for up to
a)$150,000.
, b)$200,000.
c)$250,000.
d)$100,000. - ✔✔c)$250,000.
It is written for the value of the dwelling up to $250,000 on a replacement cost basis.
✔✔Which of the following is NOT a responsibility of the Office of Insurance Regulation?
a)Instituting legal proceedings
b)Enacting new insurance laws
c)Enforcing the Insurance Code
d)Issuing certificates of authority - ✔✔b)Enacting new insurance laws
New laws are enacted by the state legislature.
✔✔In Florida, the Financial Responsibility Law is administered by
a)State Attorney General.
b)The Department of Insurance.
c)Department of Highway Safety and Motor Vehicles.
d)Florida No-Fault Motor Vehicle Commission. - ✔✔c)Department of Highway Safety
and Motor Vehicles.
The Department of Highway Safety and Motor Vehicles has established specific
financial requirement as a condition for registering and operating a motor vehicle in the
state.
✔✔Under special circumstances, continuing education requirements may be extended
beyond the 2-year period for a maximum period of
a)6 months.
b)9 months.
c)12 months.
d)3 months. - ✔✔c)12 months.
Excess classroom hours accumulated during any 2-year period may be carried forward
to the next 2-year period. If good cause is shown, the department may grant an
extension not to exceed 1 year.
