FLORIDA PERSONAL LINES EXAM STUDY GUIDE
2026 – COMPLETE CONCEPT REVIEW &
PRACTICE MATERIALS (LATEST EDITION)
FLORIDA PERSONAL LINES EXAM STUDY GUIDE 2026
100 Concept Review Questions & Answers
Section 1: Florida Insurance Regulations & General Concepts
1. Q: What is the primary purpose of Florida's Insurance Code?
A: To regulate the business of insurance and protect the interests of insureds and the
public.
2. Q: Who is the head of the Florida Department of Financial Services?
A: The Florida Chief Financial Officer (CFO).
3. Q: What is the minimum continuing education (CE) requirement for a Florida resident
insurance agent to renew their license?
A: 24 credit hours every two years, including 5 hours of Law and Ethics Update, and 3
hours of Flood Insurance.
4. Q: What must an insurer provide an applicant for personal lines insurance at the time of
application, according to Florida's Consumer Choice Law?
A: A disclosure notice outlining the differences between Actual Cash Value (ACV) and
Replacement Cost Value (RCV) coverage.
5. Q: What is the role of the Florida Office of Insurance Regulation (OIR)?
A: To regulate, monitor, and review insurance companies and products in Florida.
6. Q: What is an "admitted" insurer in Florida?
A: An insurance company licensed and authorized to do business in the state of Florida.
7. Q: What is a "surplus lines" insurer?
A: A non-admitted insurer used to provide coverage when it is not available from
admitted insurers. Policies are not protected by the Florida Insurance Guaranty
Association.
8. Q: What constitutes an "act of dishonesty" by an agent that can lead to license
suspension or revocation?
, A: Fraud, deceit, misrepresentation, theft, or any other criminal activity involving moral
turpitude.
9. Q: What is the Florida Insurance Guaranty Association (FIGA)?
A: An association that pays covered claims of insolvent Florida-admitted property and
casualty insurance companies, subject to statutory limits.
10. Q: What is the purpose of a "Notice of Nonrenewal"?
A: To inform an insured that their policy will not be renewed at the end of the current
term, typically requiring 120 days' notice for non-hurricane reasons and 100 days for
hurricane-related nonrenewals.
Section 2: Homeowners Insurance (HO)
11. Q: Which homeowners form (HO-3) provides "open perils" coverage on the dwelling and
"named perils" coverage on personal property?
A: HO-3 (Special Form).
12. Q: In an HO-3 policy, what are the four covered perils for "Loss of Use" (Additional Living
Expenses)?
A: The same perils that are covered for the dwelling (i.e., all direct physical losses except
those excluded).
13. Q: What is the standard "Other Structures" coverage limit in an HO-3 policy?
A: 10% of the dwelling coverage limit.
14. Q: What is the standard "Personal Property" coverage limit in an HO-3 policy?
A: 50% of the dwelling coverage limit.
15. Q: What is the standard "Loss of Use" coverage limit in an HO-3 policy?
A: 30% of the dwelling coverage limit (increased from 20% in many policies post-2021
legislation).
16. Q: What is the primary difference between "Replacement Cost" (RCV) and "Actual Cash
Value" (ACV)?
A: RCV pays the cost to repair or replace with materials of like kind and quality without
deduction for depreciation. ACV is RCV minus depreciation.
17. Q: Does a standard HO-3 policy cover damage from flood or surface water?
A: No. Flood and surface water are specifically excluded. Separate flood insurance is
required.
18. Q: What is a "hurricane deductible" and how is it typically applied in Florida?
A: It is a percentage deductible (e.g., 2%, 5%, 10%) of the dwelling coverage limit,
, applied to damage caused by a named hurricane. It is separate from the standard all-
peril deductible.
19. Q: What does Ordinance or Law coverage (Coverage A) typically pay for?
A: The increased cost to repair or rebuild a damaged dwelling to comply with current
building codes.
20. Q: What is "Mold Remediation" coverage, and what is the typical sub-limit in Florida
policies?
A: Coverage for the cost to remediate (remove) mold resulting from a covered water
loss. Florida statutes set a minimum required offer of $10,000.
21. Q: Are sinkholes covered under a standard Florida HO-3 policy?
A: No. "Catastrophic ground cover collapse" is covered, but sinkhole damage requires a
specific endorsement or separate policy.
22. Q: What is the purpose of a "Wind Mitigation Inspection"?
A: To identify home features that reduce windstorm damage, which can qualify the
homeowner for significant premium discounts.
23. Q: What is "Guaranteed Replacement Cost" coverage?
A: An endorsement that pays the full cost to rebuild the home, even if it exceeds the
policy's dwelling limit.
24. Q: Under Section I, what is the insured's duty after a loss?
A: To give prompt notice to the insurer, protect property from further damage, prepare
an inventory of damaged personal property, and cooperate with the investigation.
25. Q: What is the purpose of the "Mortgage Clause" in a homeowners policy?
A: It protects the mortgagee's (lender's) insurable interest, often requiring that loss
payments be made jointly to the mortgagee and the insured.
Section 3: Automobile Insurance (Personal Auto Policy - PAP)
26. Q: What is the mandatory minimum coverage for Bodily Injury Liability (BIL) in Florida?
A: $10,000 per person / $20,000 per accident. Note: Florida is a "No-Fault" state, so BIL
is not required to register a vehicle, but it is required to maintain valid PIP coverage.
27. Q: What is Florida's mandatory "No-Fault" insurance called, and what is the minimum
limit?
A: Personal Injury Protection (PIP). Minimum limit is $10,000.
, 28. Q: What does PIP coverage pay for?
A: 80% of reasonable medical expenses and 60% of lost wages, regardless of who is at
fault in an accident, up to the policy limit.
29. Q: What is the mandatory minimum Property Damage Liability (PDL) limit in Florida?
A: $10,000 per accident.
30. Q: Under Florida's No-Fault law, when can an injured party step outside the system and
sue for pain and suffering?
A: When the injury results in significant and permanent loss of an important bodily
function, permanent injury, significant and permanent scarring or disfigurement, or
death.
31. Q: What is the purpose of Uninsured Motorist (UM) coverage?
A: To pay for the insured's injuries, and sometimes property damage, caused by a driver
who has no liability insurance or is a hit-and-run driver.
32. Q: What does "stacking" of UM coverage mean?
A: It allows the insured to combine the limits of UM coverage from multiple vehicles on
the same policy or across different policies.
33. Q: What are the two main Physical Damage coverages for an auto?
A: Collision (covers impact with another object or overturn) and Comprehensive (covers
non-collision losses like theft, fire, vandalism, falling objects, animal strikes).
34. Q: What is "Transportation Expenses" coverage (Part D)?
A: It pays for rental car costs or other transportation expenses if a covered vehicle is
stolen or being repaired due to a covered loss.
35. Q: Who is considered an "insured" under the Liability coverage (Part A) of a PAP?
A: The named insured and resident family members (spouse, relatives) for the use of any
auto; any person using the insured's covered auto; and any person or organization liable
for the acts of an insured.
36. Q: What is Medical Payments Coverage (MedPay), and how does it differ from PIP?
A: MedPay pays medical expenses for the insured and passengers, regardless of fault. It
is secondary to PIP and health insurance, and does not cover lost wages.
37. Q: Does the PAP provide coverage if the insured is driving a rental car for personal use?
A: Yes, the PAP extends coverage to rental cars (both liability and physical damage, if
those coverages are purchased) as long as it's used for personal purposes and not for
hire.
2026 – COMPLETE CONCEPT REVIEW &
PRACTICE MATERIALS (LATEST EDITION)
FLORIDA PERSONAL LINES EXAM STUDY GUIDE 2026
100 Concept Review Questions & Answers
Section 1: Florida Insurance Regulations & General Concepts
1. Q: What is the primary purpose of Florida's Insurance Code?
A: To regulate the business of insurance and protect the interests of insureds and the
public.
2. Q: Who is the head of the Florida Department of Financial Services?
A: The Florida Chief Financial Officer (CFO).
3. Q: What is the minimum continuing education (CE) requirement for a Florida resident
insurance agent to renew their license?
A: 24 credit hours every two years, including 5 hours of Law and Ethics Update, and 3
hours of Flood Insurance.
4. Q: What must an insurer provide an applicant for personal lines insurance at the time of
application, according to Florida's Consumer Choice Law?
A: A disclosure notice outlining the differences between Actual Cash Value (ACV) and
Replacement Cost Value (RCV) coverage.
5. Q: What is the role of the Florida Office of Insurance Regulation (OIR)?
A: To regulate, monitor, and review insurance companies and products in Florida.
6. Q: What is an "admitted" insurer in Florida?
A: An insurance company licensed and authorized to do business in the state of Florida.
7. Q: What is a "surplus lines" insurer?
A: A non-admitted insurer used to provide coverage when it is not available from
admitted insurers. Policies are not protected by the Florida Insurance Guaranty
Association.
8. Q: What constitutes an "act of dishonesty" by an agent that can lead to license
suspension or revocation?
, A: Fraud, deceit, misrepresentation, theft, or any other criminal activity involving moral
turpitude.
9. Q: What is the Florida Insurance Guaranty Association (FIGA)?
A: An association that pays covered claims of insolvent Florida-admitted property and
casualty insurance companies, subject to statutory limits.
10. Q: What is the purpose of a "Notice of Nonrenewal"?
A: To inform an insured that their policy will not be renewed at the end of the current
term, typically requiring 120 days' notice for non-hurricane reasons and 100 days for
hurricane-related nonrenewals.
Section 2: Homeowners Insurance (HO)
11. Q: Which homeowners form (HO-3) provides "open perils" coverage on the dwelling and
"named perils" coverage on personal property?
A: HO-3 (Special Form).
12. Q: In an HO-3 policy, what are the four covered perils for "Loss of Use" (Additional Living
Expenses)?
A: The same perils that are covered for the dwelling (i.e., all direct physical losses except
those excluded).
13. Q: What is the standard "Other Structures" coverage limit in an HO-3 policy?
A: 10% of the dwelling coverage limit.
14. Q: What is the standard "Personal Property" coverage limit in an HO-3 policy?
A: 50% of the dwelling coverage limit.
15. Q: What is the standard "Loss of Use" coverage limit in an HO-3 policy?
A: 30% of the dwelling coverage limit (increased from 20% in many policies post-2021
legislation).
16. Q: What is the primary difference between "Replacement Cost" (RCV) and "Actual Cash
Value" (ACV)?
A: RCV pays the cost to repair or replace with materials of like kind and quality without
deduction for depreciation. ACV is RCV minus depreciation.
17. Q: Does a standard HO-3 policy cover damage from flood or surface water?
A: No. Flood and surface water are specifically excluded. Separate flood insurance is
required.
18. Q: What is a "hurricane deductible" and how is it typically applied in Florida?
A: It is a percentage deductible (e.g., 2%, 5%, 10%) of the dwelling coverage limit,
, applied to damage caused by a named hurricane. It is separate from the standard all-
peril deductible.
19. Q: What does Ordinance or Law coverage (Coverage A) typically pay for?
A: The increased cost to repair or rebuild a damaged dwelling to comply with current
building codes.
20. Q: What is "Mold Remediation" coverage, and what is the typical sub-limit in Florida
policies?
A: Coverage for the cost to remediate (remove) mold resulting from a covered water
loss. Florida statutes set a minimum required offer of $10,000.
21. Q: Are sinkholes covered under a standard Florida HO-3 policy?
A: No. "Catastrophic ground cover collapse" is covered, but sinkhole damage requires a
specific endorsement or separate policy.
22. Q: What is the purpose of a "Wind Mitigation Inspection"?
A: To identify home features that reduce windstorm damage, which can qualify the
homeowner for significant premium discounts.
23. Q: What is "Guaranteed Replacement Cost" coverage?
A: An endorsement that pays the full cost to rebuild the home, even if it exceeds the
policy's dwelling limit.
24. Q: Under Section I, what is the insured's duty after a loss?
A: To give prompt notice to the insurer, protect property from further damage, prepare
an inventory of damaged personal property, and cooperate with the investigation.
25. Q: What is the purpose of the "Mortgage Clause" in a homeowners policy?
A: It protects the mortgagee's (lender's) insurable interest, often requiring that loss
payments be made jointly to the mortgagee and the insured.
Section 3: Automobile Insurance (Personal Auto Policy - PAP)
26. Q: What is the mandatory minimum coverage for Bodily Injury Liability (BIL) in Florida?
A: $10,000 per person / $20,000 per accident. Note: Florida is a "No-Fault" state, so BIL
is not required to register a vehicle, but it is required to maintain valid PIP coverage.
27. Q: What is Florida's mandatory "No-Fault" insurance called, and what is the minimum
limit?
A: Personal Injury Protection (PIP). Minimum limit is $10,000.
, 28. Q: What does PIP coverage pay for?
A: 80% of reasonable medical expenses and 60% of lost wages, regardless of who is at
fault in an accident, up to the policy limit.
29. Q: What is the mandatory minimum Property Damage Liability (PDL) limit in Florida?
A: $10,000 per accident.
30. Q: Under Florida's No-Fault law, when can an injured party step outside the system and
sue for pain and suffering?
A: When the injury results in significant and permanent loss of an important bodily
function, permanent injury, significant and permanent scarring or disfigurement, or
death.
31. Q: What is the purpose of Uninsured Motorist (UM) coverage?
A: To pay for the insured's injuries, and sometimes property damage, caused by a driver
who has no liability insurance or is a hit-and-run driver.
32. Q: What does "stacking" of UM coverage mean?
A: It allows the insured to combine the limits of UM coverage from multiple vehicles on
the same policy or across different policies.
33. Q: What are the two main Physical Damage coverages for an auto?
A: Collision (covers impact with another object or overturn) and Comprehensive (covers
non-collision losses like theft, fire, vandalism, falling objects, animal strikes).
34. Q: What is "Transportation Expenses" coverage (Part D)?
A: It pays for rental car costs or other transportation expenses if a covered vehicle is
stolen or being repaired due to a covered loss.
35. Q: Who is considered an "insured" under the Liability coverage (Part A) of a PAP?
A: The named insured and resident family members (spouse, relatives) for the use of any
auto; any person using the insured's covered auto; and any person or organization liable
for the acts of an insured.
36. Q: What is Medical Payments Coverage (MedPay), and how does it differ from PIP?
A: MedPay pays medical expenses for the insured and passengers, regardless of fault. It
is secondary to PIP and health insurance, and does not cover lost wages.
37. Q: Does the PAP provide coverage if the insured is driving a rental car for personal use?
A: Yes, the PAP extends coverage to rental cars (both liability and physical damage, if
those coverages are purchased) as long as it's used for personal purposes and not for
hire.
