Florida Personal Lines Insurance License Exam — All Questions

How does Florida handle liability for auto accidents?

• a.It is a traditional at-fault (tort) state with no PIP
• b.It bars all lawsuits and routes claims through a state fund
• c.It is a no-fault state; a driver's own personal injury protection (PIP) pays their medical costs regardless of fault✓
• d.It requires only uninsured motorist coverage

Florida is a no-fault state. Each driver's own personal injury protection (PIP) pays their medical costs up to the policy limit regardless of who caused the crash. Source: Florida DFS and state motor-vehicle law. Confirm current rules with the Florida DFS (https://myfloridacfo.com/).

What are the two core coverages a standard Florida personal auto policy must carry to register a vehicle?

• a.Bodily injury liability and collision
• b.$10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL)✓
• c.Comprehensive and uninsured motorist only
• d.$25,000 bodily injury per person and $50,000 per accident

Florida requires $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). Notably, Florida does not require bodily injury liability as a baseline for most drivers (though it can be required after certain violations). Verify current figures with the Florida DFS (https://myfloridacfo.com/).

A Florida applicant asks why a standard policy did not automatically include bodily injury (BI) liability. What is the best answer?

• a.BI liability is illegal to sell in Florida
• b.BI liability is the same thing as PIP
• c.Florida requires BI liability of 25/50 on every policy
• d.Florida does not mandate BI liability as a baseline for most drivers; it is optional but strongly recommended, and may be required after certain violations✓

Unlike most states, Florida does not require bodily injury liability as a baseline — only PIP and property damage liability. BI liability is optional but strongly recommended to protect the insured's assets, and it can be mandated after events such as a DUI (FR-44) or certain at-fault crashes. Confirm current rules with the Florida DFS.

A Florida homeowner cannot find private windstorm/hurricane coverage in the private market. What state-created option is the common backstop?

• a.The federal Department of Insurance writes the policy
• b.No coverage is possible; the home must be uninsured
• c.Citizens Property Insurance Corporation, Florida's state-created insurer of last resort✓
• d.The county tax office issues the policy

Florida created Citizens Property Insurance Corporation to act as an insurer of last resort for property owners (including windstorm/hurricane exposure) who cannot find coverage in the private market. Eligibility and rules are set by state law — confirm current details with the Florida DFS or Citizens before advising a client.

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Florida?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Florida Department of Financial Services✓

Florida restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. Florida also has special notice rules for property policies. The exact number of days varies by reason and line — verify the current Florida notice periods with the Florida DFS.