FLORIDA PERSONAL LINES EXAM QUESTIONS

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FLORIDA PERSONAL LINES EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The location of the insured risk can be found in which part of an insurance policy?A.) The Declarations B.) The Insuring Agreement C.) The Definitions D.) The Conditions

Answer:

A.) The Declarations

Question 2: Which of the following is an example of risk reduction?

A.) Taking action to minimize the severity of a potential loss B.) Eliminating exposure to a specific risk C.) Insuring only those risks that threaten the financial stability of the insured D.) Transferring risk to an insurance company

Answer:

A.) Taking action to minimize the severity of a potential loss Question 3: 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

Answer:

A.) Subrogation Question 4: Which of the following is not a qualification to apply for an insurance license in Florida?A.) Must have a high school diploma or GED B.) Must be at least 18 years old C.) Legal alien with U.S. work authorization D.) U.S. Citizen

Answer:

A.) Must have a high school diploma or GED Question 5: What is the nonrenewal notice requirement after a homeowners or personal auto policy has been in effect for more than 90 days?A.) At least 10 days' written notice B.) At least 15 days' written notice C.) At least 45 days' written notice D.) At least 20 days' written notice

Answer:

C.) At least 45 days' written notice Question 6: Which of the following is false with respect to pure comparative fault?A.) Each party would be able to collect from the other for the amount of damages that equal the percent of being free of fault B.) Only one party may be at fault C.) There is no recovery if a person is injured while under the influence of drugs or alcohol and more than 50% at fault D.) Each party to the action will be evaluated and determined to be a certain percent at fault

Answer:

B.) Only one party may be at fault Question 7: 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

Answer:

B.) Nonrenewed

Question 8: 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

Answer:

D.) The policy limit Question 9: 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

Answer:

C.) If the loss is covered under more than one part of the policy, payment will be duplicated Question 10: Which of the following is not a function of the Division of Consumer Services?A.) Report alleged violations of law by persons licensed by the Department of Financial Services, Office of Insurance Regulation, or Office of Financial Regulation to the appropriate regulator B.) Compile and distribute information the Department of Financial Services deems necessary to assist consumers C.) Receive inquiries and complaints D.) Examine and investigate licensees

Answer:

D.) Examine and investigate licensees Question 11: 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

Answer:

A.) Contributory negligence

Question 12: 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

Answer:

C.) It provides automatic coverage on newly acquired items for 90 days Question 13: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following?A.) Limit of recovery B.) Merit rating C.) Insurable interest D.) Subrogation

Answer:

C.) Insurable interest Question 14: Which of the following statements is incorrect with respect to cancellation and nonrenewal of a personal auto policy?A.) After the first 60 days, the insurer can only cancel an auto policy for certain specific reasons B.) Driver's license suspension is grounds for cancellation C.) Insurers may cancel a personal auto policy solely due to occupation, marital status, or age D.) The insurer must provide 45 days' notice of nonrenewal

Answer:

C.) Insurers may cancel a personal auto policy solely due to occupation, marital status, or age

Question 15: Choose the false statement about the Contributory Negligence Law.

A.) Negligence is a duty that was breached causing an injury to another person B.) Medical expenses are an example of economic damages C.) Comparative fault is determined by charging liability proportionately D.) Contributory fault bars recovery in any other means

Answer:

D.) Contributory fault bars recovery in any other means Question 16: An individual faces the risk of economic loss in the event of property damage because of which of the following insurance concepts?A.) Legal purpose B.) Right of recovery C.) Insurable interest D.) Principle of indemnity