FLORIDA PROPERTY AND CASUALTY
INSURANCE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026
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 || |P | a | g | e
, 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.
| | | | | | | |
2 || |P | a | g | e
, 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.
| | | |
3 || |P | a | g | e
INSURANCE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026
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 || |P | a | g | e
, 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.
| | | | | | | |
2 || |P | a | g | e
, 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.
| | | |
3 || |P | a | g | e
