FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
When the insurer elects to end coverage at the end of the policy period, the policy is said to be which
of the following?
A.) Abandoned
B.) Nonrenewed
C.) Lapsed
D.) Cancelled
B.) Nonrenewed
Which of the following is true about the right of salvage?
A.) Damaged property must be disposed of after a loss.
B.) The insurer has the right to take possession of damaged property after payment of a loss
C.) The insurer is required to take possession of damaged property after a loss
D.) The insured has the right to keep damaged property after payment of a loss
B.) The insurer has the right to take possession of damaged property after payment of a loss
Losses that cannot be calculated objectively, such as pain and suffering or mental anguish, are
considered:
A.) Special damages
B.) Physical damages
C.) Punitive damages
D.) General damages
D.) General damages
Under the Personal Auto Policy, when the insured and the insurer do not agree on the insured's legal
right to recovery of damages or the amount recoverable by the insured, what system is used to
resolve the disagreement?
A.) Financial Responsibility
B.) Compromise
C.) Subrogation
D.) Arbitration
D.) Arbitration
Who among the following applicants for a motorcycle license would be required to complete a
motorcycle education course?
A.) All first-time applicants
B.) First-time applicants under the age of 16
,C.) First-time applicants under the age of 21
D.) Applicants with a prior DUI conviction
C.) First-time applicants under the age of 21
When operating a motor vehicle, the holder of a learner's permit:
A.) May practice driving alone only during daylight hours after 3 months
B.) May practice driving alone only during daylight hours
C.) Must be accompanied by any driver with a valid license and who is sitting in the passenger seat
D.) Must be accompanied by a driver with a valid license and who is at least age 21 and sitting in the
passenger seat
D.) Must be accompanied by a driver with a valid license and who is at least age 21 and sitting in the
passenger seat
Which of the following defenses against negligence prevents recovery for injuries caused by a
negligent party if the claimant was also negligent?
A.) Contributory negligence
B.) Assumption of risk
C.) Intervening cause
D.) Comparative negligence
A.) Contributory negligence
Which of the following is correct with regard to surplus lines?
A.) The policy form under which the insurance is exported may be more favorable in coverage or rates
to the insured than similar contracts in actual current use in Florida by the majority of authorized
insurers
B.) Residential and multi-peril residential policies are subject to the diligent effort requirements
C.) The premium rate at which the coverage is exported may be lower than the rate in actual and
current use by a majority of the authorized insurers for the same coverage on a similar risk
D.) Applicants for surplus lines coverage must verify that a diligent effort has been made to procure
the full amount of required insurance from an authorized insurer before pursuing surplus lines
coverage
B.) Residential and multi-peril residential policies are subject to the diligent effort requirements
Which of the following statements about liability insurance is false?
A.) Loss of consortium means the loss of companionship of a spouse
B.) Property damage includes physical injury to tangible property and loss of use
C.) Personal injury includes libel, slander, and false arrest
D.) Bodily injury includes personal injury, sickness, and disease
D.) Bodily injury includes personal injury, sickness, and disease
, The maximum amount payable for all losses within a policy period is known as the:
A.) Aggregate limit
B.) Combined single limit
C.) Per person limit
D.) Per occurrence limit
A.) Aggregate limit
Which of the following is not eligible for coverage under the Personal Auto Policy?
A.) A pickup
B.) A van weighing 5,200 pounds
C.) A vehicle being used in a share-the-expense carpool
D.) A vehicle with fewer than four wheels
D.) A vehicle with fewer than four wheels
Which type of damages is ordered by the courts to punish a negligent party?
A.) Punitive
B.) Special
C.) General
D.) Specific
A.) Punitive
X's neighbor shoots off fireworks on July 4th and puts the shells in X's trash can, causing a fire and
damaging X's garage. X's company pays the loss and contacts the neighbor for reimbursement. This is
an example of:
A.) Subrogation
B.) Loss Settlement
C.) Appraisal
D.) Reimbursement
A.) Subrogation
Short-rate cancellation occurs when:
A.) The policy is nonrenewed
B.) The insured cancels the policy mid-term
C.) An insurer cancels the policy mid-term
D.) A policy is flat cancelled
B.) The insured cancels the policy mid-term
Unendorsed Personal Auto policies would refuse to provide liability coverage for:
QUESTIONS WITH VERIFIED A+ ANSWERS
When the insurer elects to end coverage at the end of the policy period, the policy is said to be which
of the following?
A.) Abandoned
B.) Nonrenewed
C.) Lapsed
D.) Cancelled
B.) Nonrenewed
Which of the following is true about the right of salvage?
A.) Damaged property must be disposed of after a loss.
B.) The insurer has the right to take possession of damaged property after payment of a loss
C.) The insurer is required to take possession of damaged property after a loss
D.) The insured has the right to keep damaged property after payment of a loss
B.) The insurer has the right to take possession of damaged property after payment of a loss
Losses that cannot be calculated objectively, such as pain and suffering or mental anguish, are
considered:
A.) Special damages
B.) Physical damages
C.) Punitive damages
D.) General damages
D.) General damages
Under the Personal Auto Policy, when the insured and the insurer do not agree on the insured's legal
right to recovery of damages or the amount recoverable by the insured, what system is used to
resolve the disagreement?
A.) Financial Responsibility
B.) Compromise
C.) Subrogation
D.) Arbitration
D.) Arbitration
Who among the following applicants for a motorcycle license would be required to complete a
motorcycle education course?
A.) All first-time applicants
B.) First-time applicants under the age of 16
,C.) First-time applicants under the age of 21
D.) Applicants with a prior DUI conviction
C.) First-time applicants under the age of 21
When operating a motor vehicle, the holder of a learner's permit:
A.) May practice driving alone only during daylight hours after 3 months
B.) May practice driving alone only during daylight hours
C.) Must be accompanied by any driver with a valid license and who is sitting in the passenger seat
D.) Must be accompanied by a driver with a valid license and who is at least age 21 and sitting in the
passenger seat
D.) Must be accompanied by a driver with a valid license and who is at least age 21 and sitting in the
passenger seat
Which of the following defenses against negligence prevents recovery for injuries caused by a
negligent party if the claimant was also negligent?
A.) Contributory negligence
B.) Assumption of risk
C.) Intervening cause
D.) Comparative negligence
A.) Contributory negligence
Which of the following is correct with regard to surplus lines?
A.) The policy form under which the insurance is exported may be more favorable in coverage or rates
to the insured than similar contracts in actual current use in Florida by the majority of authorized
insurers
B.) Residential and multi-peril residential policies are subject to the diligent effort requirements
C.) The premium rate at which the coverage is exported may be lower than the rate in actual and
current use by a majority of the authorized insurers for the same coverage on a similar risk
D.) Applicants for surplus lines coverage must verify that a diligent effort has been made to procure
the full amount of required insurance from an authorized insurer before pursuing surplus lines
coverage
B.) Residential and multi-peril residential policies are subject to the diligent effort requirements
Which of the following statements about liability insurance is false?
A.) Loss of consortium means the loss of companionship of a spouse
B.) Property damage includes physical injury to tangible property and loss of use
C.) Personal injury includes libel, slander, and false arrest
D.) Bodily injury includes personal injury, sickness, and disease
D.) Bodily injury includes personal injury, sickness, and disease
, The maximum amount payable for all losses within a policy period is known as the:
A.) Aggregate limit
B.) Combined single limit
C.) Per person limit
D.) Per occurrence limit
A.) Aggregate limit
Which of the following is not eligible for coverage under the Personal Auto Policy?
A.) A pickup
B.) A van weighing 5,200 pounds
C.) A vehicle being used in a share-the-expense carpool
D.) A vehicle with fewer than four wheels
D.) A vehicle with fewer than four wheels
Which type of damages is ordered by the courts to punish a negligent party?
A.) Punitive
B.) Special
C.) General
D.) Specific
A.) Punitive
X's neighbor shoots off fireworks on July 4th and puts the shells in X's trash can, causing a fire and
damaging X's garage. X's company pays the loss and contacts the neighbor for reimbursement. This is
an example of:
A.) Subrogation
B.) Loss Settlement
C.) Appraisal
D.) Reimbursement
A.) Subrogation
Short-rate cancellation occurs when:
A.) The policy is nonrenewed
B.) The insured cancels the policy mid-term
C.) An insurer cancels the policy mid-term
D.) A policy is flat cancelled
B.) The insured cancels the policy mid-term
Unendorsed Personal Auto policies would refuse to provide liability coverage for:
