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!

Practice this question and more.

If an insured's TV is damaged due to a sudden stop while being transported for repairs, how does the Personal Auto Policy respond?

The PAP will pay ACV for the TV damage
The PAP will respond under physical damage section minus deductible
The PAP will pay Replacement Cost for the TV
The PAP will not respond

The correct answer is: The PAP will not respond

The Personal Auto Policy will not respond to this specific scenario because coverage for personal property in transit is typically excluded in the policy. Option A is incorrect because the Actual Cash Value (ACV) coverage applies to the insured vehicle, not personal property inside. Option B is incorrect because the physical damage section of the policy only applies to the insured vehicle, not personal property inside. Option C is incorrect because Replacement Cost coverage also only applies to the insured vehicle, not personal property.