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State-Specific Endorsements Exam 2026–2027
| Comprehensive Question Practice Test with
Answers & Rationales| Free Pdf Access
1. Which of the following states operates under a "choice no-
fault" auto insurance system as of 2026?
a) Florida
b) California
c) Pennsylvania
d) Texas
Answer: c) Pennsylvania
Rationale: Pennsylvania, along with New Jersey and Kentucky, is
a choice no-fault state where drivers select between limited tort
and full tort coverage at policy inception.
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2. Under Florida's no-fault law, the minimum required Personal
Injury Protection (PIP) limit is:
a) 5,000b)5,000b)10,000
c) 15,000d)15,000d)25,000
Answer: b) 10,000∗∗Rationale:∗∗Floridarequires10,000∗∗Ratio
nale:∗∗Floridarequires10,000 in PIP coverage. Additionally,
injured persons must seek medical treatment within 14 days of
the accident.
3. In Pennsylvania, a driver who selects "limited tort" on their
auto policy endorsement:
a) Cannot sue for any damages after an accident
b) Retains the right to sue for economic damages but forfeits the
right to sue for non-economic damages (pain and suffering)
unless injuries meet the "serious injury" threshold
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c) Pays no premium for liability coverage
d) Automatically receives unlimited medical benefits
Answer: b) Retains the right to sue for economic damages but
forfeits the right to sue for non-economic damages (pain and
suffering) unless injuries meet the "serious injury" threshold
Rationale: Under Pennsylvania's Motor Vehicle Financial
Responsibility Law (75 Pa. C.S. § 1705), limited tort restricts
recovery for pain and suffering unless the injury is deemed
"serious".
4. True or False: Michigan drivers have unlimited PIP coverage as
the only option in 2026.
Answer: False
Rationale: Michigan reformed its no-fault law in 2019, now
offering tiered PIP options ranging from $50,000 to unlimited
coverage.
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5. Which endorsement would a New York driver need to add to
their auto policy to increase PIP benefits beyond the mandatory
$50,000 Basic Economic Loss?
a) Additional PIP (APIP) endorsement
b) Umbrella liability endorsement
c) Uninsured motorist endorsement
d) Comprehensive coverage endorsement
Answer: a) Additional PIP (APIP) endorsement
Rationale: New York's mandatory PIP is $50,000. An Additional
Personal Injury Protection (APIP) endorsement provides higher
limits for medical and other economic losses.
6. In no-fault states, PIP coverage pays for:
a) Damage to the insured's vehicle regardless of fault
b) The insured's medical bills and lost wages regardless of who
State-Specific Endorsements Exam 2026–2027
| Comprehensive Question Practice Test with
Answers & Rationales| Free Pdf Access
1. Which of the following states operates under a "choice no-
fault" auto insurance system as of 2026?
a) Florida
b) California
c) Pennsylvania
d) Texas
Answer: c) Pennsylvania
Rationale: Pennsylvania, along with New Jersey and Kentucky, is
a choice no-fault state where drivers select between limited tort
and full tort coverage at policy inception.
,Page 2 of 37
2. Under Florida's no-fault law, the minimum required Personal
Injury Protection (PIP) limit is:
a) 5,000b)5,000b)10,000
c) 15,000d)15,000d)25,000
Answer: b) 10,000∗∗Rationale:∗∗Floridarequires10,000∗∗Ratio
nale:∗∗Floridarequires10,000 in PIP coverage. Additionally,
injured persons must seek medical treatment within 14 days of
the accident.
3. In Pennsylvania, a driver who selects "limited tort" on their
auto policy endorsement:
a) Cannot sue for any damages after an accident
b) Retains the right to sue for economic damages but forfeits the
right to sue for non-economic damages (pain and suffering)
unless injuries meet the "serious injury" threshold
,Page 3 of 37
c) Pays no premium for liability coverage
d) Automatically receives unlimited medical benefits
Answer: b) Retains the right to sue for economic damages but
forfeits the right to sue for non-economic damages (pain and
suffering) unless injuries meet the "serious injury" threshold
Rationale: Under Pennsylvania's Motor Vehicle Financial
Responsibility Law (75 Pa. C.S. § 1705), limited tort restricts
recovery for pain and suffering unless the injury is deemed
"serious".
4. True or False: Michigan drivers have unlimited PIP coverage as
the only option in 2026.
Answer: False
Rationale: Michigan reformed its no-fault law in 2019, now
offering tiered PIP options ranging from $50,000 to unlimited
coverage.
, Page 4 of 37
5. Which endorsement would a New York driver need to add to
their auto policy to increase PIP benefits beyond the mandatory
$50,000 Basic Economic Loss?
a) Additional PIP (APIP) endorsement
b) Umbrella liability endorsement
c) Uninsured motorist endorsement
d) Comprehensive coverage endorsement
Answer: a) Additional PIP (APIP) endorsement
Rationale: New York's mandatory PIP is $50,000. An Additional
Personal Injury Protection (APIP) endorsement provides higher
limits for medical and other economic losses.
6. In no-fault states, PIP coverage pays for:
a) Damage to the insured's vehicle regardless of fault
b) The insured's medical bills and lost wages regardless of who
