Florida Personal Lines 2025/2026 QUESTIONS AND ANSWERS
GUARANTEE A+
What are the three types of hazards - Physical, Moral, and Morale
What do individuals use to transfer their risk of loss to a larger group? - Insurance
An insurer discovers that an applicant for a policy has submitted a fraudulent insurance claim in
the past, What type of hazard does this represent? - Moral
What determines an insurer's responsibility for payment, as a stated in an insurance policy? -
Limits of liability
What term defines an exact, direct, and uninterrupted cause of loss? - Proximate cause
Under absolute liability, does an injured party need to prove negligence? - No, Absolute liability
exist when a condition or conduct is inherently dangerous. so proof of negligence is not required.
An insured's business is damaged by a fire, and temporarily shuts down for repairs. As a result,
the insured suffers loss of income. What type of loss is the loss of income? - Indirect
A policy that covers all causes of loss except for those specifically excluded is known as what
type of policy? - Open Peril ( or special) form.
What type of limits of liability has the limits separately stated for different coverages? - Split
limits
How are direct and indirect losses related? - Direct loses can cause indirect losses.
,In property insurance, when must the insurable interest exist? - At time of loss
What provision found in property policies prevent an insured from collecting twice for the same
loss: once from the insurer and again from a third party? - Subrogation
Insurance is a contract that protects the insured from what? - Loss
what is a risk? - Uncertainty of loss
What is the term for the causes of loss insured against in an insurance policy? - Peril
A situation in which a person can experience only a loss and no gain presents what type of risk? -
Pure risk
A tornado that destroys a property would be an example of what? - Peril
What provision states that if a policy allows for a greater benefit than the financial loss incurred,
the insured may be compensated only for the amount lost. - Indemnity
In property insurance , what is the actual cash value? - Replacement cost at the time of loss,
minus depreciation
What term describes a loss caused by continuous exposure to a condition? - Occurrence
What law protects consumers from circulation of inaccurate or obsolete information - The Fair
Credit Reporting Act
What is burglary? - A forced entry into another's premises with felonious intent.
, Conditions that increase the chances of loss are known as what? - Hazards
Both robbery and burglary can be considered what? - Theft
What sublimit in a liability policy puts a ceiling on the payment for all claims that arise from a
single accident? - Per occurrence
What are the two types of compensatory damages? - Special and general
What is a deductible in an insurance policy? - A specified dollar amount that the insured must
pay before the insurer will pay the policy benefits.
What does indemnify mean in insurance? - to restore an insured to the same financial status as
before a loss.
What is negligence? - Failure to act as a reasonable, prudent person under given circumstances.
What is the difference between vacancy and unoccupancy? - vacancy refers to an insured
structure in which NO people have been living or working and no property has been stored for
the specified period of time. Unoccupancy refers an insured structure in which no people have
been living or working within the required period of time, but some property is stored.
In return premium, an insurance company must - Be fair in underwriting and pay covered losses
Who is responsible for filling out a notice of claim form? - insured
A mortgage company is named as a loss payee on the insured's homeowners policy, under the
standard mortgage clause. If the insured suffers a loss due to a fire, which of the following is
true? - The loss is payable to the insured and the mortgage
GUARANTEE A+
What are the three types of hazards - Physical, Moral, and Morale
What do individuals use to transfer their risk of loss to a larger group? - Insurance
An insurer discovers that an applicant for a policy has submitted a fraudulent insurance claim in
the past, What type of hazard does this represent? - Moral
What determines an insurer's responsibility for payment, as a stated in an insurance policy? -
Limits of liability
What term defines an exact, direct, and uninterrupted cause of loss? - Proximate cause
Under absolute liability, does an injured party need to prove negligence? - No, Absolute liability
exist when a condition or conduct is inherently dangerous. so proof of negligence is not required.
An insured's business is damaged by a fire, and temporarily shuts down for repairs. As a result,
the insured suffers loss of income. What type of loss is the loss of income? - Indirect
A policy that covers all causes of loss except for those specifically excluded is known as what
type of policy? - Open Peril ( or special) form.
What type of limits of liability has the limits separately stated for different coverages? - Split
limits
How are direct and indirect losses related? - Direct loses can cause indirect losses.
,In property insurance, when must the insurable interest exist? - At time of loss
What provision found in property policies prevent an insured from collecting twice for the same
loss: once from the insurer and again from a third party? - Subrogation
Insurance is a contract that protects the insured from what? - Loss
what is a risk? - Uncertainty of loss
What is the term for the causes of loss insured against in an insurance policy? - Peril
A situation in which a person can experience only a loss and no gain presents what type of risk? -
Pure risk
A tornado that destroys a property would be an example of what? - Peril
What provision states that if a policy allows for a greater benefit than the financial loss incurred,
the insured may be compensated only for the amount lost. - Indemnity
In property insurance , what is the actual cash value? - Replacement cost at the time of loss,
minus depreciation
What term describes a loss caused by continuous exposure to a condition? - Occurrence
What law protects consumers from circulation of inaccurate or obsolete information - The Fair
Credit Reporting Act
What is burglary? - A forced entry into another's premises with felonious intent.
, Conditions that increase the chances of loss are known as what? - Hazards
Both robbery and burglary can be considered what? - Theft
What sublimit in a liability policy puts a ceiling on the payment for all claims that arise from a
single accident? - Per occurrence
What are the two types of compensatory damages? - Special and general
What is a deductible in an insurance policy? - A specified dollar amount that the insured must
pay before the insurer will pay the policy benefits.
What does indemnify mean in insurance? - to restore an insured to the same financial status as
before a loss.
What is negligence? - Failure to act as a reasonable, prudent person under given circumstances.
What is the difference between vacancy and unoccupancy? - vacancy refers to an insured
structure in which NO people have been living or working and no property has been stored for
the specified period of time. Unoccupancy refers an insured structure in which no people have
been living or working within the required period of time, but some property is stored.
In return premium, an insurance company must - Be fair in underwriting and pay covered losses
Who is responsible for filling out a notice of claim form? - insured
A mortgage company is named as a loss payee on the insured's homeowners policy, under the
standard mortgage clause. If the insured suffers a loss due to a fire, which of the following is
true? - The loss is payable to the insured and the mortgage
