FLORIDA PERSONAL LINES REVIEW
STUDY GUIDE TESTED QUESTIONS
◉ What is true regarding the Fine Arts Floater? Answer: It provides
automatic coverage on newly acquired items for 90 days.
◉ Which statement about a Homeowners Policy is incorrect?
Answer: Home schooling is covered under a Homeowners Policy.
◉ What is the monthly benefit under disability income insurance?
Answer: A monthly benefit will be 66 2/3% of the insured's monthly
income.
◉ Which property is covered under Coverage C of a Homeowners
policy? Answer: Personal property of a guest is covered under
Coverage C.
◉ What is NOT a purpose of licensing in insurance? Answer: To
authorize the agent to insure risks.
◉ What damages does liability coverage in a Personal Auto policy
cover? Answer: Damage to a private garage rented to the insured,
caused by the insured's child driving a covered auto.
,◉ Which policy provision omits certain risks from coverage?
Answer: Exclusions.
◉ What does an Umbrella Liability policy cover after an underlying
policy does not? Answer: The insured must pay a self-insured
retention before the Umbrella Liability policy covers the loss.
◉ What type of watercraft is covered by a Homeowners policy?
Answer: Liability coverage may be provided for a 20-foot sailing
boat.
◉ What is the maximum payment for a total loss under a valued
policy? Answer: The policy limit, which is $300,000 in this case.
◉ How much will the policy pay for damage to J's car? Answer: The
policy will pay $400 after applying the $250 deductible.
◉ What coverage applies to the dwelling in Dwelling Forms?
Answer: Coverage A.
◉ How is the loss amount determined if an owner-occupied home is
totally destroyed? Answer: The amount of the loss is based on the
policy limit.
,◉ What is a false statement in an insurance application called?
Answer: Misrepresentation.
◉ What is the defense against negligence when the claimant is
partially responsible? Answer: Comparative negligence.
◉ What is the burden of proof in liability cases? Answer: The burden
of proof is on the injured party to prove that the other party was
negligent.
◉ What do liability policies cover? Answer: Liability policies pay
costs incurred by an insured to sue negligent third parties.
◉ Can an insured be liable for damages without being negligent?
Answer: Yes, an insured may be liable for damages to an injured
party, even if they are not deemed negligent.
◉ Is breach of contract considered an act of negligence? Answer: No,
breach of contract is not considered an act of negligence.
◉ What is the limit of liability in a Personal Auto policy? Answer:
The limit of liability is the maximum the policy will pay regardless of
the number of insureds or vehicles involved in the accident.
, ◉ What happens if a loss is covered under more than one part of a
policy? Answer: Payment will not be duplicated; the limit of liability
applies to the total amount payable.
◉ What is actual cash value? Answer: Actual cash value is defined as
the cost to replace or repair property, minus depreciation.
◉ What is the limit of insurance for Coverage E - Additional Living
Expense? Answer: The limit of insurance that will apply is typically a
percentage of the dwelling coverage, often around 20%.
◉ How is bodily injury defined in casualty insurance? Answer:
Bodily injury is best described as physical injury, sickness, or death
arising from the negligent acts of an insured.
◉ Which part of a property insurance policy describes the perils?
Answer: The Insuring Agreement describes the perils covered by the
policy.
◉ What coverage pays for a windshield broken by a bird? Answer:
Other than collision coverage would pay for the loss.
◉ What type of agent has agreements with multiple insurers?
Answer: An independent agent has agreements with more than one
insurer.
STUDY GUIDE TESTED QUESTIONS
◉ What is true regarding the Fine Arts Floater? Answer: It provides
automatic coverage on newly acquired items for 90 days.
◉ Which statement about a Homeowners Policy is incorrect?
Answer: Home schooling is covered under a Homeowners Policy.
◉ What is the monthly benefit under disability income insurance?
Answer: A monthly benefit will be 66 2/3% of the insured's monthly
income.
◉ Which property is covered under Coverage C of a Homeowners
policy? Answer: Personal property of a guest is covered under
Coverage C.
◉ What is NOT a purpose of licensing in insurance? Answer: To
authorize the agent to insure risks.
◉ What damages does liability coverage in a Personal Auto policy
cover? Answer: Damage to a private garage rented to the insured,
caused by the insured's child driving a covered auto.
,◉ Which policy provision omits certain risks from coverage?
Answer: Exclusions.
◉ What does an Umbrella Liability policy cover after an underlying
policy does not? Answer: The insured must pay a self-insured
retention before the Umbrella Liability policy covers the loss.
◉ What type of watercraft is covered by a Homeowners policy?
Answer: Liability coverage may be provided for a 20-foot sailing
boat.
◉ What is the maximum payment for a total loss under a valued
policy? Answer: The policy limit, which is $300,000 in this case.
◉ How much will the policy pay for damage to J's car? Answer: The
policy will pay $400 after applying the $250 deductible.
◉ What coverage applies to the dwelling in Dwelling Forms?
Answer: Coverage A.
◉ How is the loss amount determined if an owner-occupied home is
totally destroyed? Answer: The amount of the loss is based on the
policy limit.
,◉ What is a false statement in an insurance application called?
Answer: Misrepresentation.
◉ What is the defense against negligence when the claimant is
partially responsible? Answer: Comparative negligence.
◉ What is the burden of proof in liability cases? Answer: The burden
of proof is on the injured party to prove that the other party was
negligent.
◉ What do liability policies cover? Answer: Liability policies pay
costs incurred by an insured to sue negligent third parties.
◉ Can an insured be liable for damages without being negligent?
Answer: Yes, an insured may be liable for damages to an injured
party, even if they are not deemed negligent.
◉ Is breach of contract considered an act of negligence? Answer: No,
breach of contract is not considered an act of negligence.
◉ What is the limit of liability in a Personal Auto policy? Answer:
The limit of liability is the maximum the policy will pay regardless of
the number of insureds or vehicles involved in the accident.
, ◉ What happens if a loss is covered under more than one part of a
policy? Answer: Payment will not be duplicated; the limit of liability
applies to the total amount payable.
◉ What is actual cash value? Answer: Actual cash value is defined as
the cost to replace or repair property, minus depreciation.
◉ What is the limit of insurance for Coverage E - Additional Living
Expense? Answer: The limit of insurance that will apply is typically a
percentage of the dwelling coverage, often around 20%.
◉ How is bodily injury defined in casualty insurance? Answer:
Bodily injury is best described as physical injury, sickness, or death
arising from the negligent acts of an insured.
◉ Which part of a property insurance policy describes the perils?
Answer: The Insuring Agreement describes the perils covered by the
policy.
◉ What coverage pays for a windshield broken by a bird? Answer:
Other than collision coverage would pay for the loss.
◉ What type of agent has agreements with multiple insurers?
Answer: An independent agent has agreements with more than one
insurer.
