FLORIDA PERSONAL LINES EXAM STUDY GUIDE
2026 COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<LATEST VERSION>
1. Minimum notice for cancelling a personal auto policy after 60 days -
ANSWER ✔ 45 days (20 days for nonpayment)
2. Florida Valued Policy Law - ANSWER ✔ If a total loss occurs from a
covered peril, the insurer must pay the full face value.
3. Deductible rule for hurricane coverage in Florida - ANSWER ✔ It's an
annual deductible, typically 2%, 5%, or 10% of the dwelling limit.
4. Proof of loss submission timeline - ANSWER ✔ Within 60 days unless
otherwise stated in the policy.
5. Clause that helps settle disputes over loss amount - ANSWER ✔ Appraisal
Clause
6. Subrogation - ANSWER ✔ The insurer's right to recover from a third party
after paying a claim.
7. Valued Policy - ANSWER ✔ A policy that pays the insured based on a fixed
value regardless of actual loss.
,8. Requirement for Citizens Property Insurance Corporation coverage -
ANSWER ✔ Applicant must be unable to get coverage from a private
insurer.
9. Difference between replacement cost and actual cash value (ACV) -
ANSWER ✔ ACV = Replacement Cost - Depreciation.
10.Liberalization Clause - ANSWER ✔ If the insurer broadens coverage at no
additional premium, the insured automatically gets the benefit.
11.Essential elements of an insurance contract - ANSWER ✔ B. Representation
is NOT one of the four essential elements.
12.blanket insurance - ANSWER ✔ insurance where a single amount of
insurance applies to two or more coverage items
13.misrepresentation - ANSWER ✔ any untrue statement made in application
so policy will issue
14.mutual company - ANSWER ✔ have no stockholders owned by policy
owners
15.stock company - ANSWER ✔ is incorporated and is owned by its
stockholders
16.churning - ANSWER ✔ is taking values from existing policy to buy another
with same insurer without a benefit for the client
,17.twisting - ANSWER ✔ is replacing a policy with company A to B for new
commissions only
18.sliding - ANSWER ✔ telling insured additional coverage is required by the
law to purchase auto or home, or additional coverage without the insured
knowing
19.coercion - ANSWER ✔ any intimidation in the business of insurance
20.defamation - ANSWER ✔ to harm the reputation by libel or slander to an
agent or insurer
21.unfair methods competition & unfair deceptive act - ANSWER ✔ can be
advertising or misrepresentations non-willful u to $5,000 willful $40,000
22.criminal action - ANSWER ✔ must report within 30 days to the department
if you plead guilty
23.unaffiliated agent - ANSWER ✔ self-appoint and may not be working is
good for 24 months
24.estoppel - ANSWER ✔ a legal process used when a wavier has occurred
25.wavier - ANSWER ✔ voluntary relinquishment of known rights
, 26.controlled business - ANSWER ✔ written on family members or
organizations (50/50)
27.unauthorized - ANSWER ✔ has no certificate of authority issued from the
OIR
28.fraternal - ANSWER ✔ membership based on religious, ethics or charitable
sells to members
29.reinsurance - ANSWER ✔ an arrangement where the insurance company
transfers part of its risk to another insurer called the reinsurer (also knowing
as ceding company)
30.transacting insurance - ANSWER ✔ solict, negotiate, contract, or transact
insurance
31.liberalization - ANSWER ✔ insurer adopts a condition which would
broaden in other similar policies. then the insured receives the benefit of
such coverage without additional premiums
32.risk - ANSWER ✔ is a change of loss not a loss itself
33.insurance policy - ANSWER ✔ written contract with all rider and
endorsements
34.doctrine of proximate cause - ANSWER ✔ an unbroken connection between
the occurrence and damage that grows out of the occurrence then the results
damages is still part of the occurrence
2026 COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<LATEST VERSION>
1. Minimum notice for cancelling a personal auto policy after 60 days -
ANSWER ✔ 45 days (20 days for nonpayment)
2. Florida Valued Policy Law - ANSWER ✔ If a total loss occurs from a
covered peril, the insurer must pay the full face value.
3. Deductible rule for hurricane coverage in Florida - ANSWER ✔ It's an
annual deductible, typically 2%, 5%, or 10% of the dwelling limit.
4. Proof of loss submission timeline - ANSWER ✔ Within 60 days unless
otherwise stated in the policy.
5. Clause that helps settle disputes over loss amount - ANSWER ✔ Appraisal
Clause
6. Subrogation - ANSWER ✔ The insurer's right to recover from a third party
after paying a claim.
7. Valued Policy - ANSWER ✔ A policy that pays the insured based on a fixed
value regardless of actual loss.
,8. Requirement for Citizens Property Insurance Corporation coverage -
ANSWER ✔ Applicant must be unable to get coverage from a private
insurer.
9. Difference between replacement cost and actual cash value (ACV) -
ANSWER ✔ ACV = Replacement Cost - Depreciation.
10.Liberalization Clause - ANSWER ✔ If the insurer broadens coverage at no
additional premium, the insured automatically gets the benefit.
11.Essential elements of an insurance contract - ANSWER ✔ B. Representation
is NOT one of the four essential elements.
12.blanket insurance - ANSWER ✔ insurance where a single amount of
insurance applies to two or more coverage items
13.misrepresentation - ANSWER ✔ any untrue statement made in application
so policy will issue
14.mutual company - ANSWER ✔ have no stockholders owned by policy
owners
15.stock company - ANSWER ✔ is incorporated and is owned by its
stockholders
16.churning - ANSWER ✔ is taking values from existing policy to buy another
with same insurer without a benefit for the client
,17.twisting - ANSWER ✔ is replacing a policy with company A to B for new
commissions only
18.sliding - ANSWER ✔ telling insured additional coverage is required by the
law to purchase auto or home, or additional coverage without the insured
knowing
19.coercion - ANSWER ✔ any intimidation in the business of insurance
20.defamation - ANSWER ✔ to harm the reputation by libel or slander to an
agent or insurer
21.unfair methods competition & unfair deceptive act - ANSWER ✔ can be
advertising or misrepresentations non-willful u to $5,000 willful $40,000
22.criminal action - ANSWER ✔ must report within 30 days to the department
if you plead guilty
23.unaffiliated agent - ANSWER ✔ self-appoint and may not be working is
good for 24 months
24.estoppel - ANSWER ✔ a legal process used when a wavier has occurred
25.wavier - ANSWER ✔ voluntary relinquishment of known rights
, 26.controlled business - ANSWER ✔ written on family members or
organizations (50/50)
27.unauthorized - ANSWER ✔ has no certificate of authority issued from the
OIR
28.fraternal - ANSWER ✔ membership based on religious, ethics or charitable
sells to members
29.reinsurance - ANSWER ✔ an arrangement where the insurance company
transfers part of its risk to another insurer called the reinsurer (also knowing
as ceding company)
30.transacting insurance - ANSWER ✔ solict, negotiate, contract, or transact
insurance
31.liberalization - ANSWER ✔ insurer adopts a condition which would
broaden in other similar policies. then the insured receives the benefit of
such coverage without additional premiums
32.risk - ANSWER ✔ is a change of loss not a loss itself
33.insurance policy - ANSWER ✔ written contract with all rider and
endorsements
34.doctrine of proximate cause - ANSWER ✔ an unbroken connection between
the occurrence and damage that grows out of the occurrence then the results
damages is still part of the occurrence
