FLORIDA PROPERTY AND CASUALTY
INSURANCE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following is a characteristic of a Personal Auto Policy
(PAP)?
A) It covers vehicles used for commercial purposes.
B) It covers only the named insured’s owned vehicles.
C) It provides coverage for the insured and family members using
any vehicle.
D) It excludes liability coverage.
The PAP covers the named insured and family members for liability
while using any auto, not just owned vehicles.
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, 2. In Florida, what is the minimum liability coverage required for
bodily injury per person in an auto policy?
A) $10,000
B) $10,000
C) $20,000
D) $50,000
Florida requires a minimum of $10,000 per person for bodily injury
liability.
3. Which of the following losses is typically covered under a
Commercial Property Policy?
A) Flood damage
B) Earthquake damage
C) Fire damage
D) War damage
Fire damage is a common covered peril under commercial property
policies, while flood, earthquake, and war are usually excluded
unless specifically added.
4. What does the term “named peril” mean in property insurance?
A) Covers all perils except those specifically excluded.
B) Covers only the perils specifically listed in the policy.
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, C) Covers all risks without exclusions.
D) Excludes all perils unless specifically included.
Named peril policies provide coverage only for those perils
specifically listed.
5. Which Florida insurance law requires insurers to pay claims within
90 days after proof of loss?
A) Florida Insurance Code Section 627
B) Florida Prompt Payment of Claims Act
C) Florida Unfair Trade Practices Act
D) Florida Consumer Protection Act
The Prompt Payment of Claims Act mandates timely payment of
claims within 90 days after receipt of proof of loss.
6. Which of the following is NOT covered under the standard
Homeowners (HO-3) policy?
A) Fire damage
B) Flood damage
C) Theft
D) Windstorm damage
Flood damage is excluded in standard HO policies and requires a
separate flood insurance policy.
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INSURANCE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following is a characteristic of a Personal Auto Policy
(PAP)?
A) It covers vehicles used for commercial purposes.
B) It covers only the named insured’s owned vehicles.
C) It provides coverage for the insured and family members using
any vehicle.
D) It excludes liability coverage.
The PAP covers the named insured and family members for liability
while using any auto, not just owned vehicles.
1|Page
, 2. In Florida, what is the minimum liability coverage required for
bodily injury per person in an auto policy?
A) $10,000
B) $10,000
C) $20,000
D) $50,000
Florida requires a minimum of $10,000 per person for bodily injury
liability.
3. Which of the following losses is typically covered under a
Commercial Property Policy?
A) Flood damage
B) Earthquake damage
C) Fire damage
D) War damage
Fire damage is a common covered peril under commercial property
policies, while flood, earthquake, and war are usually excluded
unless specifically added.
4. What does the term “named peril” mean in property insurance?
A) Covers all perils except those specifically excluded.
B) Covers only the perils specifically listed in the policy.
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, C) Covers all risks without exclusions.
D) Excludes all perils unless specifically included.
Named peril policies provide coverage only for those perils
specifically listed.
5. Which Florida insurance law requires insurers to pay claims within
90 days after proof of loss?
A) Florida Insurance Code Section 627
B) Florida Prompt Payment of Claims Act
C) Florida Unfair Trade Practices Act
D) Florida Consumer Protection Act
The Prompt Payment of Claims Act mandates timely payment of
claims within 90 days after receipt of proof of loss.
6. Which of the following is NOT covered under the standard
Homeowners (HO-3) policy?
A) Fire damage
B) Flood damage
C) Theft
D) Windstorm damage
Flood damage is excluded in standard HO policies and requires a
separate flood insurance policy.
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