FLORIDA PERSONAL LINES Exam Questions
and Answers | 2026 Simplified Cheat Sheet
| A+ Verified
• Which of the following is true regarding the Fine Arts Floater?
A.) Coverage is limited to the United States, Canada, and Mexico
B.) Coverage is primarily for stamps and coins
C.) It provides automatic coverage on newly acquired items for 90 days
D.) It settles losses on an ACV basis -✓✓C.) It provides automatic coverage on newly
acquired items for 90 days
• All of the following statements are correct about a Homeowners Policy, except:
A.) Home schooling is covered under a Homeowners Policy
B.) Coverage D of a Homeowners Policy includes loss of income from an incidental
business
C.) A Homeowners Policy will not cover theft of a boat away from premises
D.) Coverage D of a Homeowners Policy covers additional living expenses -✓✓B.)
Coverage D of a Homeowners Policy includes loss of income from an incidental
business
• Under disability income insurance, a monthly benefit will be ________ of the insured's
monthly income.
A.) 80 1/2%
B.) 66 2/3%
C.) 70 2/3%
D.) 50 3/4% -✓✓B.) 66 2/3%
• All of the following items of property are considered property not covered under
Coverage C of a Homeowners policy, except:
A.) Credit cards
B.) Personal property of a guest
C.) Pets
D.) Personal property of a tenant -✓✓B.) Personal property of a guest
• Which of the following is NOT a purpose of licensing?
A.) For the applicant to be familiar with the Florida insurance laws
B.) To authorize and enable the licensee to actively and in good faith engage in the
insurance business as an agent
,C.) To facilitate the public supervision of such activities in the public interest
D.) To authorize the agent to insure risks -✓✓D.) To authorize the agent to insure risks
• Liability coverage provided by a Personal Auto policy would cover which of the
following damages?
A.) Damage to property being transported by the insured in a covered auto
B.) Damage to a private garage rented to the insured, caused by the insured's child
driving a covered auto
C.) Damage to a neighbor's riding lawn mower that is in the care of the insured
D.) Damage to a storefront caused by a valet driver operating a covered auto -✓✓B.)
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?
A.) Conditions
B.) Additional Coverages
C.) Exclusions
D.) Declarations -✓✓C.) Exclusions
• When an underlying policy does not cover a particular loss, the insured's Umbrella
Liability policy will drop down and cover the entire loss, after payment by the insured of
a:
A.) Deductible
B.) Self-insured retention
C.) Copayment
D.) Commission -✓✓B.) Self-insured retention
• Liability coverage may be provided by a Homeowners policy for the insured's use of
which of the following watercraft?
A.) 20-foot sailing boat
B.) Private yacht owned by the insured
C.) Rented pontoon boat to entertain business clients
D.) Racing cruiser -✓✓A.) 20-foot sailing boat
• An insured owns a home with a replacement cost of $300,000 and a market value of
$250,000. What is the most a valued policy will pay in the event of a total loss without a
deductible?
A.) $240,000
B.) $250,000
C.) The policy limit
D.) $300,000 -✓✓C.) The policy limit
,• Policyholder J hit a deer with their Honda. J has collision coverage with a $250
deductible and other than collision coverage with a $50 deductible. The damage to J's
car was $450. How much will the policy pay?
A.) $200
B.) Nothing
C.) $400
D.) $150 -✓✓C.) $400
• Under all the Dwelling Forms, the dwelling described in the Declarations is covered
under:
A.) Coverage A
B.) Coverage B
C.) Coverage E
D.) Coverage C -✓✓A.) Coverage A
• If an owner-occupied home is totally destroyed without fraud by a fire, the amount of
the loss is based on:
A.) The coinsurance value
B.) The replacement value
C.) The market value
D.) The policy limit -✓✓D.) The policy limit
• A false statement in the application for insurance is called a:
A.) Warranty
B.) Concealment
C.) Representation
D.) Misrepresentation -✓✓D.) Misrepresentation
• When a claimant brings a negligence claim against the insured, the court determines
that the claimant is partially responsible for the loss, and the damages they are owed is
reduced by the amount of their responsibility. This describes which defense against
negligence?
A.) Comparative negligence
B.) Contributory negligence
C.) Contributory risk
D.) Comparative risk -✓✓A.) Comparative negligence
• All of the following statements about liability are true, except:
, A.) The burden of proof is on the injured party to prove that the other party was
negligent
B.) Liability policies pay costs incurred by an insured to sue negligent third parties
C.) An insured may be liable for damages to an injured party, even if they are not
deemed negligent
D.) Breach of contract is not considered an act of negligence -✓✓B.) Liability policies
pay costs incurred by an insured to sue negligent third parties
• Under Part A - Liability Coverage of a Personal Auto policy, which of the following
statements regarding the limit of liability is incorrect?
A.) The limit of liability is the maximum the policy will pay regardless of the number of
insureds
B.) The limit of liability is the maximum the policy will pay regardless of the number of
vehicles involved in the accident
C.) If the loss is covered under more than one part of the policy, payment will be
duplicated
D.) A combined single limit is the maximum the policy will pay in any one accident for
bodily injury and property damage -✓✓C.) If the loss is covered under more than one
part of the policy, payment will be duplicated
• Actual cash value may be defined as:
A.) The cost to replace or repair property, minus depreciation
B.) The cost to replace or repair the property
C.) The original purchase price of property, minus depreciation
D.) The agreed upon specific value determined before the policy was issued -✓✓A.)
The cost to replace or repair property, minus depreciation
• Policyholder N insures an owner-occupied home under a Special Form Dwelling Policy
with a limit of $100,000. If the dwelling is damaged in a fire, what is the limit of
insurance that will apply to Coverage E - Additional Living Expense?
A.) $50,000
B.) $20,000
C.) $10,000
D.) $40,000 -✓✓B.) $20,000
• As used in casualty insurance, bodily injury is best described as:
A.) Any injury causing hospitalization, disability, or loss of income
B.) Physical injury, sickness, or death arising from the negligent acts of an insured
C.) All financially measurable injuries directly sustained, including libel and false arrest
D.) Any injury resulting in bleeding, bruising, bone fractures, or disfigurement -✓✓B.)
Physical injury, sickness, or death arising from the negligent acts of an insured
and Answers | 2026 Simplified Cheat Sheet
| A+ Verified
• Which of the following is true regarding the Fine Arts Floater?
A.) Coverage is limited to the United States, Canada, and Mexico
B.) Coverage is primarily for stamps and coins
C.) It provides automatic coverage on newly acquired items for 90 days
D.) It settles losses on an ACV basis -✓✓C.) It provides automatic coverage on newly
acquired items for 90 days
• All of the following statements are correct about a Homeowners Policy, except:
A.) Home schooling is covered under a Homeowners Policy
B.) Coverage D of a Homeowners Policy includes loss of income from an incidental
business
C.) A Homeowners Policy will not cover theft of a boat away from premises
D.) Coverage D of a Homeowners Policy covers additional living expenses -✓✓B.)
Coverage D of a Homeowners Policy includes loss of income from an incidental
business
• Under disability income insurance, a monthly benefit will be ________ of the insured's
monthly income.
A.) 80 1/2%
B.) 66 2/3%
C.) 70 2/3%
D.) 50 3/4% -✓✓B.) 66 2/3%
• All of the following items of property are considered property not covered under
Coverage C of a Homeowners policy, except:
A.) Credit cards
B.) Personal property of a guest
C.) Pets
D.) Personal property of a tenant -✓✓B.) Personal property of a guest
• Which of the following is NOT a purpose of licensing?
A.) For the applicant to be familiar with the Florida insurance laws
B.) To authorize and enable the licensee to actively and in good faith engage in the
insurance business as an agent
,C.) To facilitate the public supervision of such activities in the public interest
D.) To authorize the agent to insure risks -✓✓D.) To authorize the agent to insure risks
• Liability coverage provided by a Personal Auto policy would cover which of the
following damages?
A.) Damage to property being transported by the insured in a covered auto
B.) Damage to a private garage rented to the insured, caused by the insured's child
driving a covered auto
C.) Damage to a neighbor's riding lawn mower that is in the care of the insured
D.) Damage to a storefront caused by a valet driver operating a covered auto -✓✓B.)
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?
A.) Conditions
B.) Additional Coverages
C.) Exclusions
D.) Declarations -✓✓C.) Exclusions
• When an underlying policy does not cover a particular loss, the insured's Umbrella
Liability policy will drop down and cover the entire loss, after payment by the insured of
a:
A.) Deductible
B.) Self-insured retention
C.) Copayment
D.) Commission -✓✓B.) Self-insured retention
• Liability coverage may be provided by a Homeowners policy for the insured's use of
which of the following watercraft?
A.) 20-foot sailing boat
B.) Private yacht owned by the insured
C.) Rented pontoon boat to entertain business clients
D.) Racing cruiser -✓✓A.) 20-foot sailing boat
• An insured owns a home with a replacement cost of $300,000 and a market value of
$250,000. What is the most a valued policy will pay in the event of a total loss without a
deductible?
A.) $240,000
B.) $250,000
C.) The policy limit
D.) $300,000 -✓✓C.) The policy limit
,• Policyholder J hit a deer with their Honda. J has collision coverage with a $250
deductible and other than collision coverage with a $50 deductible. The damage to J's
car was $450. How much will the policy pay?
A.) $200
B.) Nothing
C.) $400
D.) $150 -✓✓C.) $400
• Under all the Dwelling Forms, the dwelling described in the Declarations is covered
under:
A.) Coverage A
B.) Coverage B
C.) Coverage E
D.) Coverage C -✓✓A.) Coverage A
• If an owner-occupied home is totally destroyed without fraud by a fire, the amount of
the loss is based on:
A.) The coinsurance value
B.) The replacement value
C.) The market value
D.) The policy limit -✓✓D.) The policy limit
• A false statement in the application for insurance is called a:
A.) Warranty
B.) Concealment
C.) Representation
D.) Misrepresentation -✓✓D.) Misrepresentation
• When a claimant brings a negligence claim against the insured, the court determines
that the claimant is partially responsible for the loss, and the damages they are owed is
reduced by the amount of their responsibility. This describes which defense against
negligence?
A.) Comparative negligence
B.) Contributory negligence
C.) Contributory risk
D.) Comparative risk -✓✓A.) Comparative negligence
• All of the following statements about liability are true, except:
, A.) The burden of proof is on the injured party to prove that the other party was
negligent
B.) Liability policies pay costs incurred by an insured to sue negligent third parties
C.) An insured may be liable for damages to an injured party, even if they are not
deemed negligent
D.) Breach of contract is not considered an act of negligence -✓✓B.) Liability policies
pay costs incurred by an insured to sue negligent third parties
• Under Part A - Liability Coverage of a Personal Auto policy, which of the following
statements regarding the limit of liability is incorrect?
A.) The limit of liability is the maximum the policy will pay regardless of the number of
insureds
B.) The limit of liability is the maximum the policy will pay regardless of the number of
vehicles involved in the accident
C.) If the loss is covered under more than one part of the policy, payment will be
duplicated
D.) A combined single limit is the maximum the policy will pay in any one accident for
bodily injury and property damage -✓✓C.) If the loss is covered under more than one
part of the policy, payment will be duplicated
• Actual cash value may be defined as:
A.) The cost to replace or repair property, minus depreciation
B.) The cost to replace or repair the property
C.) The original purchase price of property, minus depreciation
D.) The agreed upon specific value determined before the policy was issued -✓✓A.)
The cost to replace or repair property, minus depreciation
• Policyholder N insures an owner-occupied home under a Special Form Dwelling Policy
with a limit of $100,000. If the dwelling is damaged in a fire, what is the limit of
insurance that will apply to Coverage E - Additional Living Expense?
A.) $50,000
B.) $20,000
C.) $10,000
D.) $40,000 -✓✓B.) $20,000
• As used in casualty insurance, bodily injury is best described as:
A.) Any injury causing hospitalization, disability, or loss of income
B.) Physical injury, sickness, or death arising from the negligent acts of an insured
C.) All financially measurable injuries directly sustained, including libel and false arrest
D.) Any injury resulting in bleeding, bruising, bone fractures, or disfigurement -✓✓B.)
Physical injury, sickness, or death arising from the negligent acts of an insured
