Florida Personal Lines Exam Questions and
Verified Answers
Question 1
Which of the following is not a qualification to apply for an insurance license in
Florida?
A.) Must have a high school diploma or GED
B.) Must be at least 18 years old
C.) Legal alien with U.S. work authorization
D.) U.S. Citizen
Correct Answer
A.) Must have a high school diploma or GED
Question 2
Unendorsed Personal Auto policies would refuse to provide liability coverage for:
A.) A non-owned golf cart
B.) An SUV used in a share-the-expense car pool
C.) A 5,000-pound pickup truck used to transport farm goods
D.) A vehicle with fewer than four wheels
Correct Answer
D.) A vehicle with fewer than four wheels
Question 3
Which type of standard policy includes coverage options that would not exclude
damage by flood?
A.) Commercial property policies
B.) Dwelling policies
C.) Personal Auto policies
D.) Homeowners policies
Correct Answer
C.) Personal Auto policies
Page 1 of 104
,Question 4
When both parties to a contract must perform certain duties in order to make the
contract enforceable, this is known as a(n):
A.) Conditional contract
B.) Contract of adhesion
C.) Unilateral contract
D.) Aleatory contract
Correct Answer
A.) Conditional contract
Question 5
Which of the following is true regarding the Fine Arts Floater?
A.) Loss is paid on an actual cash value basis
B.) It has automatic coverage for only 30 days on newly acquired articles
C.) Coverage is limited to the United States, Canada, and Mexico
D.) It covers such items as paintings, rare manuscripts and antiques
Correct Answer
D.) It covers such items as paintings, rare manuscripts and antiques
Question 6
A manufacturer is held liable if a product caused an injury whether the product was or
was not defective. This describes what type of liability?
A.) Contingent liability
B.) Vicarious liability
C.) Strict liability
D.) Operations liability
Correct Answer
C.) Strict liability
Page 2 of 104
,Question 7
With respect to a producer's fiduciary capacity, which of the following is true?
A.) An agent may commingle the insurer's funds with his/her personal funds
B.) The payment of premiums to the agent by the insured is not the same as giving
the money directly to the insurer
C.) An agent must maintain separate bank accounts for each insurer he/she
represents
D.) An agent must remit premiums to the insurer entitled to them within 60 days after
receipt
Correct Answer
C.) An agent must maintain separate bank accounts for each insurer he/she
represents
Question 8
Which of the following statements is true regarding loss settlements?
A.) If the payment is not made within 20 days, it must include interest at a rate of 10%
per year from the date of the agreement
B.) The insurer must pay according to the terms of the agreement within 20 days after
the settlement is reached
C.) The insurer must pay according to the terms of the agreement within 30 days after
the settlement is reached
D.) If the payment is not made within 30 days, it must include interest at a rate of 12%
per year from the date of the agreement
Correct Answer
B.) The insurer must pay according to the terms of the agreement within 20 days
after the settlement is reached
Page 3 of 104
, Question 9
Under a Dwelling Policy, the coverage extension of Debris Removal will pay for:
A.) The removal of the debris caused by an insured peril
B.) The removal of debris resulting from the action of a civil authority
C.) The removal of the debris from an automobile accident on the insured location
D.) The removal of debris resulting from demolition required by an ordinance or law
Correct Answer
A.) The removal of the debris caused by an insured peril
Question 10
A Broad Form Homeowners policy would NOT cover which of the following losses?
A.) Damage to a dwelling's contents from water used to put out a fire
B.) Water damage to personal property stored in the basement after a sump pump
overflows
C.) Water damage resulting from frozen pipes of an automatic fire sprinkler system
D.) Hardwood damage after an accidental discharge of water from a dishwasher
Correct Answer
B.) Water damage to personal property stored in the basement after a sump pump
overflows
Question 11
If an insured has comprehensive physical damage coverage provided by their
Personal Auto policy, the insurer would deny which of the following physical damage
claims?
A.) Loss to the covered auto's electronic ignition equipment
B.) Loss to the covered auto's tires caused by road damage
C.) Loss to sound reproduction equipment permanently installed in the covered auto
D.) Earthquake damage to the covered auto
Correct Answer
B.) Loss to the covered auto's tires caused by road damage
Page 4 of 104
Verified Answers
Question 1
Which of the following is not a qualification to apply for an insurance license in
Florida?
A.) Must have a high school diploma or GED
B.) Must be at least 18 years old
C.) Legal alien with U.S. work authorization
D.) U.S. Citizen
Correct Answer
A.) Must have a high school diploma or GED
Question 2
Unendorsed Personal Auto policies would refuse to provide liability coverage for:
A.) A non-owned golf cart
B.) An SUV used in a share-the-expense car pool
C.) A 5,000-pound pickup truck used to transport farm goods
D.) A vehicle with fewer than four wheels
Correct Answer
D.) A vehicle with fewer than four wheels
Question 3
Which type of standard policy includes coverage options that would not exclude
damage by flood?
A.) Commercial property policies
B.) Dwelling policies
C.) Personal Auto policies
D.) Homeowners policies
Correct Answer
C.) Personal Auto policies
Page 1 of 104
,Question 4
When both parties to a contract must perform certain duties in order to make the
contract enforceable, this is known as a(n):
A.) Conditional contract
B.) Contract of adhesion
C.) Unilateral contract
D.) Aleatory contract
Correct Answer
A.) Conditional contract
Question 5
Which of the following is true regarding the Fine Arts Floater?
A.) Loss is paid on an actual cash value basis
B.) It has automatic coverage for only 30 days on newly acquired articles
C.) Coverage is limited to the United States, Canada, and Mexico
D.) It covers such items as paintings, rare manuscripts and antiques
Correct Answer
D.) It covers such items as paintings, rare manuscripts and antiques
Question 6
A manufacturer is held liable if a product caused an injury whether the product was or
was not defective. This describes what type of liability?
A.) Contingent liability
B.) Vicarious liability
C.) Strict liability
D.) Operations liability
Correct Answer
C.) Strict liability
Page 2 of 104
,Question 7
With respect to a producer's fiduciary capacity, which of the following is true?
A.) An agent may commingle the insurer's funds with his/her personal funds
B.) The payment of premiums to the agent by the insured is not the same as giving
the money directly to the insurer
C.) An agent must maintain separate bank accounts for each insurer he/she
represents
D.) An agent must remit premiums to the insurer entitled to them within 60 days after
receipt
Correct Answer
C.) An agent must maintain separate bank accounts for each insurer he/she
represents
Question 8
Which of the following statements is true regarding loss settlements?
A.) If the payment is not made within 20 days, it must include interest at a rate of 10%
per year from the date of the agreement
B.) The insurer must pay according to the terms of the agreement within 20 days after
the settlement is reached
C.) The insurer must pay according to the terms of the agreement within 30 days after
the settlement is reached
D.) If the payment is not made within 30 days, it must include interest at a rate of 12%
per year from the date of the agreement
Correct Answer
B.) The insurer must pay according to the terms of the agreement within 20 days
after the settlement is reached
Page 3 of 104
, Question 9
Under a Dwelling Policy, the coverage extension of Debris Removal will pay for:
A.) The removal of the debris caused by an insured peril
B.) The removal of debris resulting from the action of a civil authority
C.) The removal of the debris from an automobile accident on the insured location
D.) The removal of debris resulting from demolition required by an ordinance or law
Correct Answer
A.) The removal of the debris caused by an insured peril
Question 10
A Broad Form Homeowners policy would NOT cover which of the following losses?
A.) Damage to a dwelling's contents from water used to put out a fire
B.) Water damage to personal property stored in the basement after a sump pump
overflows
C.) Water damage resulting from frozen pipes of an automatic fire sprinkler system
D.) Hardwood damage after an accidental discharge of water from a dishwasher
Correct Answer
B.) Water damage to personal property stored in the basement after a sump pump
overflows
Question 11
If an insured has comprehensive physical damage coverage provided by their
Personal Auto policy, the insurer would deny which of the following physical damage
claims?
A.) Loss to the covered auto's electronic ignition equipment
B.) Loss to the covered auto's tires caused by road damage
C.) Loss to sound reproduction equipment permanently installed in the covered auto
D.) Earthquake damage to the covered auto
Correct Answer
B.) Loss to the covered auto's tires caused by road damage
Page 4 of 104
