Download Personal Lines - Florida Questions And 100% Correct Answers 2025-2026 and more Exams Advanced Education in PDF only on Docsity!
Personal Lines - Florida Questions And 100% Correct
Answers 2025-
5 Qualifications to obtain a General Lines License - Answer 1. Be 18 years of age
- Be a resident of FL or have a place of business in FL
- Completion of 200-hour course or have 1 yr experience in all lines4. Application cannot be for writing controlled business
- Exam waived for CPCU designation of college degree with 15 hours in insurance controlled business - Answer receives more than 50% of income from businessesapplicant is involved in, ie family business
Department of Financial Services - Means no rating and underwriting rules risk - Means chance of financial loss insurance policy - Means the written contract, including all clauses, riders,endorsements, and papers
insurance - Means a contract wherein one undertakes to indemnify another or pay aspecified sum upon the happening of a determinable event
binder - Answer temporary insurance - oral or written; Auto 5 days for cancellation, allothers 60 days
property insurance - Answer payment by insurer (company) is made to insured
liability insurance - Answer payment by insurer (company) is made to others oninsured's behalf
personal contract - Answer contracts cover persons - not property or operations conditional contract - Answer obligations of insurer may depend upon insured satisfyingsome conditions
contract of adhesion - Answer insureds can not negotiate the terms; one-sided contract indemnity contract - Answer one should not profit from teh proceeds of the policy butshould be made whole
Exceptions to indemnity - Answer 1. Valued policies2. Florida Value Policy Law
- Replacement cost
- Liability insurance Insurable interest - Answer Must exist at the time of loss peril - Answer condition or occurrence that may cause a loss - fire, wind, theft, collision hazard - Answer increases the likelihood of a loss physical hazard - Answer physical characteristic increases the likelihood of a loss - wetfloor
moral hazard - Answer intentional loss - taking drugs
Blanket Insurance - A single amount of coverage on more than one building Deductible - Straight Answer amount percentage deductible - Answer percent of value of property or policy limits franchise deductibles - Answer no payment until loss equals or exceeds amount, thenloss paid in full (ocean marine)
property insurance - Answer payment by insurer, company directly to the insured Single policy limits - Answer single amount maximum liability paid out in an occurrencefor all persons injured and property damage
Split Limits - two figures, maximum payable in one occurrence for each persons injuredand for all injuries
Aggregate - the limit of answer represents total limit that is available for a policy term Duties following a loss: Property AND Liability - Prompt notice given, to cooperate withinsurer, to act in a way to preserve insurer's rights
Duties after a loss: Property - Answer account for damaged property, protect propertyfrom further loss, exhibit damaged property, provide records & docs, report thefts, disclose any other applicable insurance, file proof of loss Duties after a loss: Liability - Answer notify insurer of claimants/witnesses, forward legalpapers, cooperate with insurer in settlements, refrain from assuming obligations
subrogation - Answer transfer of the insured's rights (to collect) to the insurer
assignment - Answer transfer of policy to another willn ot be valied unless consented toin writing by insurer
severability - Answer insurance applies separately to each insured policy period - Answer Inception at 12:01 am/expiration at 12:01 am Pro rata liability - Answer company will pay its proportionate part that its limits bear tothe total amount of all policy limits on given risk (property and liability)Example: Policy A has $200, 000. B has $100, 000 limit. Combined $300,000 coverage. For a loss, A pays 2/3, B pays 1/3. Equal shares - Answer payments based on number of policies without regards to limits.Example: policies pay equally up to their limits (liability only)
Primary - Answer this policy applies first, up to its limits, before others apply (liability) excess - Answer this policy pays after all other insurance is exhausted -- property orliability
liberalization - Answer the policy will automatically be increased without endorsement appraisal - Answer agreement of two appraisers is binding abandonment - Answer dumping damaged property on insurer and demanding full value warranty - Answer policy condition
Florida No-Fault covers - Answer Bodily injury ONLY Motor Vehicle - Answer Self-propelled vehicle with 4 or more wheels designed for use onFL highways. Trailers and semi-trailers designed for use with those vehicles.
Not a motor vehicle - Answer Mobile homes, taxicabs, limo, govt owned vehicles used inmass transit, school buses
Owner of a vehicle - Answer DOLL = Debtor in posessionOne who holds the title Leasing with option to purchase Leasing for 6 or more monthsInsurance & substitutes-for PIP and Financial Responsibility Law-Answer CABS = Cash Auto insuranceBonds Self-insurance Penalties for not having PIP - Answer RIP =Registration and DL suspended Immunity from legal liability deniedPersonally liable for PIP benefits up to $10, PIP Benefits -Answer MIDS = Medical 80%Income Loss 60% Death $ Services (household) 100%
When does non-resident have to comply with PIP? - Answer Vehicle is in FL for 90 of theprior 365 days
PIP is primary except.? - Answer Excess over Worker's Comp. Extended PIP - Answer MIDS = Medical 100%Income Loss 80% Death Same Services (household) Same Additional PIP - Answer REQUIRES EXTEND PIP deductible - Answer $250, $500, or $1000 - comes off of medical bills beforepercentages are applied
PIP Exclusions - Answer SOFI = Stealing Owned, but not coveredFelony related injury Intentional self-inflicted injury Tort Exemption - Follows the vehicle - You cannot be sued for non-economic losses aslong as you have PIP. Official definition is: Immunity from suits of others concerning non-economic losses (pain, suffering, mental anguish, inconvenience) is granted tothose who comply with the No-Fault law.
Benefits under PIP follow.? - The insured.
Part A - Answer Liability coverage Liability coverage - Answer pays on behalf of Insured for bodily injury and propertydamage; includes defense against claims
Supplementary Payments under Part A - Answer LIABLE =Loss of earnings - $200/day - to attend trail/hearing Interest on judgementsAppeal bonds Bail bonds - $ Legal expensesExpenses incurred at insurer's(company) request
Minimum limits for Auto - Answer 10 - Bodily Injury10 - Property damage 10 - PIP or $30, Auto coverage is primary. - Answer Vehicles owned by insured. Auto coverage is excess. - Answer Vehicles not owned by insured. Liability and Property Exclusions - Auto - Answer PIRATES BELS =Property damage (property owned/rented/used Intentional Injury Regularly furnished vehicleAuto dealers Transporting using vehicles
Employee injury (except no Worker's Comp) Stealing Business useEnergy (nuclear) policy Less than 4 wheelsSpeed contests Part B - Answer Medical Payments Medical Payments - Answer pays medical and funeral expenses regardless of faultwithin 3 years
Medical Payments Limits - Answer $500, $1000, $2000, and $5000 - apply per personper accident.
Pays in excess above PIP - Answer Medical payments Medical Exclusions - Auto - Answer STORM BOS =Stealing Transporting using vehicle Occupying as residenceRegularly furnished vehicle Motorcycle Business use Occupational injuryiesSpeed contests
Part C - Answer Uninsured motorist coverage
of the named insured or family member Collision - means upset or impact with another object Other than collision - means direct and accidental loss not covered by collision otherthan as excluded
Transportation expense - 24hrs after loss, 48hrs after theft. $20/day, $600 max. Nodeductible
Exclusions - Damage to your Auto - Answer CREE CAR ACT =Carrying people/property for a fee Reproductive sound equipment & accessories EquipmentElectrical or Mechanical breakdown
Custom equipmentAuto dealers Radar detectors Awnings and cabanas Confiscation by governmental authoritiesTrailer or camper
Trailer or camper - 14 days automatic coverage if acquired during policy period Auto losses paid - Answer Lesser of ACV or cost to repair or replace
Non-owned trailer limit - Answer $ Part E - Answer Duties following a loss Part F - Answer General provisions Extended Non-owned Coverage - Answer extends coverage for Liability and optionallyMedPay to non-owned auto furnished or available for regular use
Towing and Labor - Answer $25, $50, $75, or $100 limits per disablement Excluded Equipment Coverage - Answer Permanently installed electronic and mediaequipment - no deductible; tapes, records, discs, etc. $200 limit. Customizing equipment for pickups and vans for specific amount Named Non-owner Coverage - Answer Non-owner who regularly drives other autosrecieves coverage for Liability, MedPay, and UM ONLY
Miscellaneous Type Vehicle - Answer Motorcycle, golf carts, motor home, ATV Increased Limits Transportation Expenses Coverage Answers increase $20/day, $600max to any selected limit
Joint Ownership Answer 2 or more relatives whether or not residing together orindividuals residing together
Cancellation Auto First 60 days Answer May cancel for failure to respond to notice ofadditional premium. May cancel for total destruction, purchasing insurance elsewhere, or after selling thevehicle.
