FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
What losses are covered under Part A of a Personal Auto Policy?
Damage to a neighbor's parked car is covered under Part A of a Personal Auto Policy.
What is true regarding the Fine Arts Floater?
It provides automatic coverage on newly acquired items for 90 days.
Which statement about a Homeowners Policy is incorrect?
Home schooling is covered under a Homeowners Policy.
What is the monthly benefit under disability income insurance?
A monthly benefit will be 66 2/3% of the insured's monthly income.
Which property is covered under Coverage C of a Homeowners policy?
Personal property of a guest is covered under Coverage C.
What is NOT a purpose of licensing in insurance?
To authorize the agent to insure risks.
What damages does liability coverage in a Personal Auto policy cover?
Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto.
Which policy provision omits certain risks from coverage?
Exclusions.
What does an Umbrella Liability policy cover after an underlying policy does not?
The insured must pay a self-insured retention before the Umbrella Liability policy covers the loss.
What type of watercraft is covered by a Homeowners policy?
Liability coverage may be provided for a 20-foot sailing boat.
What is the maximum payment for a total loss under a valued policy?
The policy limit, which is $300,000 in this case.
How much will the policy pay for damage to J's car?
The policy will pay $400 after applying the $250 deductible.
What coverage applies to the dwelling in Dwelling Forms?
Coverage A.
How is the loss amount determined if an owner-occupied home is totally destroyed?
, The amount of the loss is based on the policy limit.
What is a false statement in an insurance application called?
Misrepresentation.
What is the defense against negligence when the claimant is partially responsible?
Comparative negligence.
What is the burden of proof in liability cases?
The burden of proof is on the injured party to prove that the other party was negligent.
What do liability policies cover?
Liability policies pay costs incurred by an insured to sue negligent third parties.
Can an insured be liable for damages without being negligent?
Yes, an insured may be liable for damages to an injured party, even if they are not deemed negligent.
Is breach of contract considered an act of negligence?
No, breach of contract is not considered an act of negligence.
What is the limit of liability in a Personal Auto policy?
The limit of liability is the maximum the policy will pay regardless of the number of insureds or vehicles
involved in the accident.
What happens if a loss is covered under more than one part of a policy?
Payment will not be duplicated; the limit of liability applies to the total amount payable.
What is actual cash value?
Actual cash value is defined as the cost to replace or repair property, minus depreciation.
What is the limit of insurance for Coverage E - Additional Living Expense?
The limit of insurance that will apply is typically a percentage of the dwelling coverage, often around
20%.
How is bodily injury defined in casualty insurance?
Bodily injury is best described as physical injury, sickness, or death arising from the negligent acts of an
insured.
Which part of a property insurance policy describes the perils?
The Insuring Agreement describes the perils covered by the policy.
What coverage pays for a windshield broken by a bird?
Other than collision coverage would pay for the loss.
QUESTIONS WITH VERIFIED A+ ANSWERS
What losses are covered under Part A of a Personal Auto Policy?
Damage to a neighbor's parked car is covered under Part A of a Personal Auto Policy.
What is true regarding the Fine Arts Floater?
It provides automatic coverage on newly acquired items for 90 days.
Which statement about a Homeowners Policy is incorrect?
Home schooling is covered under a Homeowners Policy.
What is the monthly benefit under disability income insurance?
A monthly benefit will be 66 2/3% of the insured's monthly income.
Which property is covered under Coverage C of a Homeowners policy?
Personal property of a guest is covered under Coverage C.
What is NOT a purpose of licensing in insurance?
To authorize the agent to insure risks.
What damages does liability coverage in a Personal Auto policy cover?
Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto.
Which policy provision omits certain risks from coverage?
Exclusions.
What does an Umbrella Liability policy cover after an underlying policy does not?
The insured must pay a self-insured retention before the Umbrella Liability policy covers the loss.
What type of watercraft is covered by a Homeowners policy?
Liability coverage may be provided for a 20-foot sailing boat.
What is the maximum payment for a total loss under a valued policy?
The policy limit, which is $300,000 in this case.
How much will the policy pay for damage to J's car?
The policy will pay $400 after applying the $250 deductible.
What coverage applies to the dwelling in Dwelling Forms?
Coverage A.
How is the loss amount determined if an owner-occupied home is totally destroyed?
, The amount of the loss is based on the policy limit.
What is a false statement in an insurance application called?
Misrepresentation.
What is the defense against negligence when the claimant is partially responsible?
Comparative negligence.
What is the burden of proof in liability cases?
The burden of proof is on the injured party to prove that the other party was negligent.
What do liability policies cover?
Liability policies pay costs incurred by an insured to sue negligent third parties.
Can an insured be liable for damages without being negligent?
Yes, an insured may be liable for damages to an injured party, even if they are not deemed negligent.
Is breach of contract considered an act of negligence?
No, breach of contract is not considered an act of negligence.
What is the limit of liability in a Personal Auto policy?
The limit of liability is the maximum the policy will pay regardless of the number of insureds or vehicles
involved in the accident.
What happens if a loss is covered under more than one part of a policy?
Payment will not be duplicated; the limit of liability applies to the total amount payable.
What is actual cash value?
Actual cash value is defined as the cost to replace or repair property, minus depreciation.
What is the limit of insurance for Coverage E - Additional Living Expense?
The limit of insurance that will apply is typically a percentage of the dwelling coverage, often around
20%.
How is bodily injury defined in casualty insurance?
Bodily injury is best described as physical injury, sickness, or death arising from the negligent acts of an
insured.
Which part of a property insurance policy describes the perils?
The Insuring Agreement describes the perils covered by the policy.
What coverage pays for a windshield broken by a bird?
Other than collision coverage would pay for the loss.
