FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
The Florida Insurance Guaranty Association will assume the contractual obligations of an insolvent
insurer up to _________ for any one policy.
A.) $250,000
B.) $100,000
C.) $150,000
D.) $300,000
D.) $300,000
An underwriter will consider each of the following factors when evaluating a risk, except:
A.) Hazards
B.) Rates
C.) Claim history
D.) Nature of the risk
B.) Rates
The Department may revoke, suspend, or refuse to renew a license for all the following, except:
A.) Having failed to remit due premiums to an insurer
B.) Having been convicted of a felony
C.) Issued insufficient coverage to a customer through apparent authority
D.) Cheated on an insurance examination
C.) Issued insufficient coverage to a customer through apparent authority
With regard to civil immunity and testimony, which of the following is false?
A.) Any person may provide the Department of Financial Services or Office of Insurance Regulation
with information about the financial condition of an insurer
B.) A person providing truthful information about the financial condition of an insurer may still be
subject to civil liability
C.) A person may ask to be excused from testifying or producing records involving an examination,
hearing, or investigation conducted by the Department of Financial Services or Office of Insurance
Regulation, for fear of self-incrimination
D.) Only a person providing untruthful information about the financial condition of an insurer may be
subject to civil liability
B.) A person providing truthful information about the financial condition of an insurer may still be
subject to civil liability
The predictability of loss improves when the number of similar units increase because of which
principle?
,A.) The Golden Rule of Underwriting
B.) The Law of Averages
C.) Accumulated Experience
D.) The Law of Large Numbers
D.) The Law of Large Numbers
Which of the following is NOT an exception to the requirement to inspect a motor vehicle prior to
issuing physical damage coverage?
A.) A renewal policy
B.) A policyholder who has been insured for at least one year, if the agent of the insurer verifies the
previous coverage
C.) An unused motor vehicle purchased from a licensed motor vehicle dealer or leasing company
subject to certain requirements
D.) A temporary substitute motor vehicle
B.) A policyholder who has been insured for at least one year, if the agent of the insurer verifies the
previous coverage
All of the following are true of liability policies, except:
A.) They do not cover medical expenses incurred by the insured
B.) They are designed to cover third party injuries or damages
C.) They will pay sums that the insured becomes legally liable to pay
D.) They will cover damage to the insured's own property
D.) They will cover damage to the insured's own property
Which of the following handles unclaimed property?
A.) The Division of Rehabilitation and Liquidation
B.) The Department of Financial Services
C.) The Division of Consumer Services
D.) The Department of Commerce Division of Unclaimed Funds
D.) The Department of Commerce Division of Unclaimed Funds
Which term describes the equal sharing of a loss by two or more insurers until the loss is paid, or until
each insurer has exhausted its limits of insurance, whichever comes first?
A.) Contribution by equal shares
B.) Pro rata liability
C.) Primary insurance
D.) Excess insurance
A.) Contribution by equal shares
, Which of the following is incorrect about insurance company appointments?
A.) An agent may broker business
B.) An agent may present a proposal to a company without being appointed
C.) Also applies to health applications
D.) An agent must be appointed for property and casualty insurance separately
D.) An agent must be appointed for property and casualty insurance separately
An insured placed with the FAJUA must be notified in writing that the insurance coverage is not
through the private market within _________ of placement.
A.) 10 days
B.) 36 hours
C.) 3 days
D.) 14 days
A.) 10 days
Which of the following statements best describes the Other Insurance condition on a standard
property insurance policy, when two separate property policies provide coverage for the same loss?
A.) One policy pays up to its limits and the other policy pays the balance
B.) Each policy pays an equal share
C.) Each policy pays its pro rata share of the loss
D.) Neither policy will make payment for the loss
C.) Each policy pays its pro rata share of the loss
An agent may have no more than ________ of his total business within a 12-month period be from
controlled business.
A.) 25%
B.) 65%
C.) 35%
D.) 50%
D.) 50%
All of the following are included in the Declarations of a property policy, except:
A.) The named insured's mailing address
B.) The amount of coverage
C.) The amount of premium
D.) The perils insured against
D.) The perils insured against
QUESTIONS WITH VERIFIED A+ ANSWERS
The Florida Insurance Guaranty Association will assume the contractual obligations of an insolvent
insurer up to _________ for any one policy.
A.) $250,000
B.) $100,000
C.) $150,000
D.) $300,000
D.) $300,000
An underwriter will consider each of the following factors when evaluating a risk, except:
A.) Hazards
B.) Rates
C.) Claim history
D.) Nature of the risk
B.) Rates
The Department may revoke, suspend, or refuse to renew a license for all the following, except:
A.) Having failed to remit due premiums to an insurer
B.) Having been convicted of a felony
C.) Issued insufficient coverage to a customer through apparent authority
D.) Cheated on an insurance examination
C.) Issued insufficient coverage to a customer through apparent authority
With regard to civil immunity and testimony, which of the following is false?
A.) Any person may provide the Department of Financial Services or Office of Insurance Regulation
with information about the financial condition of an insurer
B.) A person providing truthful information about the financial condition of an insurer may still be
subject to civil liability
C.) A person may ask to be excused from testifying or producing records involving an examination,
hearing, or investigation conducted by the Department of Financial Services or Office of Insurance
Regulation, for fear of self-incrimination
D.) Only a person providing untruthful information about the financial condition of an insurer may be
subject to civil liability
B.) A person providing truthful information about the financial condition of an insurer may still be
subject to civil liability
The predictability of loss improves when the number of similar units increase because of which
principle?
,A.) The Golden Rule of Underwriting
B.) The Law of Averages
C.) Accumulated Experience
D.) The Law of Large Numbers
D.) The Law of Large Numbers
Which of the following is NOT an exception to the requirement to inspect a motor vehicle prior to
issuing physical damage coverage?
A.) A renewal policy
B.) A policyholder who has been insured for at least one year, if the agent of the insurer verifies the
previous coverage
C.) An unused motor vehicle purchased from a licensed motor vehicle dealer or leasing company
subject to certain requirements
D.) A temporary substitute motor vehicle
B.) A policyholder who has been insured for at least one year, if the agent of the insurer verifies the
previous coverage
All of the following are true of liability policies, except:
A.) They do not cover medical expenses incurred by the insured
B.) They are designed to cover third party injuries or damages
C.) They will pay sums that the insured becomes legally liable to pay
D.) They will cover damage to the insured's own property
D.) They will cover damage to the insured's own property
Which of the following handles unclaimed property?
A.) The Division of Rehabilitation and Liquidation
B.) The Department of Financial Services
C.) The Division of Consumer Services
D.) The Department of Commerce Division of Unclaimed Funds
D.) The Department of Commerce Division of Unclaimed Funds
Which term describes the equal sharing of a loss by two or more insurers until the loss is paid, or until
each insurer has exhausted its limits of insurance, whichever comes first?
A.) Contribution by equal shares
B.) Pro rata liability
C.) Primary insurance
D.) Excess insurance
A.) Contribution by equal shares
, Which of the following is incorrect about insurance company appointments?
A.) An agent may broker business
B.) An agent may present a proposal to a company without being appointed
C.) Also applies to health applications
D.) An agent must be appointed for property and casualty insurance separately
D.) An agent must be appointed for property and casualty insurance separately
An insured placed with the FAJUA must be notified in writing that the insurance coverage is not
through the private market within _________ of placement.
A.) 10 days
B.) 36 hours
C.) 3 days
D.) 14 days
A.) 10 days
Which of the following statements best describes the Other Insurance condition on a standard
property insurance policy, when two separate property policies provide coverage for the same loss?
A.) One policy pays up to its limits and the other policy pays the balance
B.) Each policy pays an equal share
C.) Each policy pays its pro rata share of the loss
D.) Neither policy will make payment for the loss
C.) Each policy pays its pro rata share of the loss
An agent may have no more than ________ of his total business within a 12-month period be from
controlled business.
A.) 25%
B.) 65%
C.) 35%
D.) 50%
D.) 50%
All of the following are included in the Declarations of a property policy, except:
A.) The named insured's mailing address
B.) The amount of coverage
C.) The amount of premium
D.) The perils insured against
D.) The perils insured against
