FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
What is false about pure comparative fault?
Only one party may be at fault.
What is incorrect regarding the National Flood Insurance Program?
It provides unlimited insurance coverage for qualified property owners.
What is the insurer's liability for a car accident with 25/50/10 limits?
$49,500.
What is true regarding the HO-3 (Special Form)?
The dwelling and other structures (Coverages A and B) are written on an open perils basis.
What is an open perils basis?
An insurance policy that covers all perils except those specifically excluded in the policy.
What is a replacement cost basis?
A method of valuing insurance claims where the insured is compensated for the cost to replace
damaged property without depreciation.
What is a named perils basis?
An insurance policy that only covers specific risks or perils that are explicitly listed in the policy.
What is an uninsured motor vehicle?
A vehicle that is not covered by any applicable liability insurance policy, including newly acquired
vehicles not reported to the insurer.
What are special damages?
Compensatory damages awarded to an injured party for specific losses, such as medical expenses and
lost earnings.
What is a physical hazard?
A condition that increases the likelihood of a loss occurring, such as wet leaves on a sidewalk.
What are medical payments in a Personal Auto policy?
Coverage that pays for medical expenses incurred by the insured regardless of fault.
What is the principle of assumption of risk?
A legal doctrine that a person may not recover for injuries received when they voluntarily expose
themselves to a known danger.
, What is the aggregate limit in insurance?
The maximum amount an insurer will pay for all claims during a specified policy period.
What is the Terrorism Insurance Program?
A program created by the Terrorism Risk Insurance Act (TRIA) that provides federal reinsurance for
terrorism-related insurance claims.
What does Coverage C on the HO-3 policy cover?
Personal property owned by the insured, including certain losses like vandalism to borrowed property.
Which vehicles are not eligible for coverage under a standard Personal Auto policy?
Vehicles such as pickups with a gross vehicle weight of over 10,000 lbs. are typically not eligible.
What is the Fine Arts Floater?
An insurance policy that provides coverage for fine arts, including paintings and antiques, often on an
agreed value basis.
What is the requirement for loss settlements?
The insurer must pay according to the terms of the agreement within 20 days after the settlement is
reached.
When must insurable interest exist for a property or casualty contract?
Insurable interest must exist at the time of loss for a claim to be paid.
What kind of hazard does stored paint thinner present?
Physical hazard.
What type of vehicle would unendorsed Personal Auto policies refuse to provide liability coverage
for?
A vehicle with fewer than four wheels.
When firefighters extinguish a house fire with water, what is the water damage considered?
Direct loss.
What does Coverage D of the Dwelling Policy provide coverage for?
Fair rental value.
What is a contract where both parties must perform certain duties to make it enforceable?
Conditional contract.
What does collision coverage provided by a Personal Auto policy apply to?
The insured's car, regardless of liability.
QUESTIONS WITH VERIFIED A+ ANSWERS
What is false about pure comparative fault?
Only one party may be at fault.
What is incorrect regarding the National Flood Insurance Program?
It provides unlimited insurance coverage for qualified property owners.
What is the insurer's liability for a car accident with 25/50/10 limits?
$49,500.
What is true regarding the HO-3 (Special Form)?
The dwelling and other structures (Coverages A and B) are written on an open perils basis.
What is an open perils basis?
An insurance policy that covers all perils except those specifically excluded in the policy.
What is a replacement cost basis?
A method of valuing insurance claims where the insured is compensated for the cost to replace
damaged property without depreciation.
What is a named perils basis?
An insurance policy that only covers specific risks or perils that are explicitly listed in the policy.
What is an uninsured motor vehicle?
A vehicle that is not covered by any applicable liability insurance policy, including newly acquired
vehicles not reported to the insurer.
What are special damages?
Compensatory damages awarded to an injured party for specific losses, such as medical expenses and
lost earnings.
What is a physical hazard?
A condition that increases the likelihood of a loss occurring, such as wet leaves on a sidewalk.
What are medical payments in a Personal Auto policy?
Coverage that pays for medical expenses incurred by the insured regardless of fault.
What is the principle of assumption of risk?
A legal doctrine that a person may not recover for injuries received when they voluntarily expose
themselves to a known danger.
, What is the aggregate limit in insurance?
The maximum amount an insurer will pay for all claims during a specified policy period.
What is the Terrorism Insurance Program?
A program created by the Terrorism Risk Insurance Act (TRIA) that provides federal reinsurance for
terrorism-related insurance claims.
What does Coverage C on the HO-3 policy cover?
Personal property owned by the insured, including certain losses like vandalism to borrowed property.
Which vehicles are not eligible for coverage under a standard Personal Auto policy?
Vehicles such as pickups with a gross vehicle weight of over 10,000 lbs. are typically not eligible.
What is the Fine Arts Floater?
An insurance policy that provides coverage for fine arts, including paintings and antiques, often on an
agreed value basis.
What is the requirement for loss settlements?
The insurer must pay according to the terms of the agreement within 20 days after the settlement is
reached.
When must insurable interest exist for a property or casualty contract?
Insurable interest must exist at the time of loss for a claim to be paid.
What kind of hazard does stored paint thinner present?
Physical hazard.
What type of vehicle would unendorsed Personal Auto policies refuse to provide liability coverage
for?
A vehicle with fewer than four wheels.
When firefighters extinguish a house fire with water, what is the water damage considered?
Direct loss.
What does Coverage D of the Dwelling Policy provide coverage for?
Fair rental value.
What is a contract where both parties must perform certain duties to make it enforceable?
Conditional contract.
What does collision coverage provided by a Personal Auto policy apply to?
The insured's car, regardless of liability.
