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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Joe borrows Sue's car, has an accident injuring a pedestrian who incurs $22,000 in medical bills. Joe has 10/20/10 limits, and Sue has 15/30/15. How much is paid from Liability?

Sue's policy pays $15,000 & Joe's policy pays $7,000
Sue's policy pays $11,000 & Joe's policy pays $11,000 (pro-rata)
Sue's policy pays $15,000 & Joe's policy pays $10,000
Sue's policy pays $7,000 & Joe's policy pays $15,000

The correct answer is: Sue's policy pays $15,000 & Joe's policy pays $7,000

Sue's policy will cover up to $15,000 in medical bills for the injured pedestrian as she has 15/30/15 limits. Joe's policy has lower limits of 10/20/10, so once Sue's policy reaches its limit, Joe's policy will cover up to $7,000. The total paid from liability will be $15,000 from Sue's policy and $7,000 from Joe's policy, totaling $22,000 which covers the full medical bills for the injured pedestrian. The other options are incorrect because they either do not add up to cover the full $22,000 in medical bills or have incorrect pro-rata calculations.