Florida Insurance Licensing Practice Exam

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Prepare for the Florida Insurance Licensing Exam using comprehensive questions and in-depth explanations. Perfect your understanding of essential insurance concepts and ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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An insured with Basic PIP and no deductible incurs $8,000 in medical bills, $1,000 in lost wages, and $500 in replacement services. How much will PIP portion of policy pay?

$7,500
$9,500
$6,400
$8,000

The correct answer is: $7,500

Explanation The PIP portion of the policy will pay a maximum of $8,000, which is the total for medical bills, lost wages, and replacement services. However, the insured has a Basic PIP with no deductible, so $500 of the medical bills will be covered by the insured's personal injury protection. This means that the PIP portion of the policy will pay $7,500 (the maximum of $8,000 minus the $500 covered by the Basic PIP). Option B is incorrect because it includes the $500 that the insured is responsible for paying through their Basic PIP. Option C is incorrect because it only includes the medical bills and does not account for the lost wages and replacement services that are also covered under PIP. Option D is incorrect because it does not take into account the deductible for the Basic PIP.