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.

Which of the following statements is false concerning No-Fault Auto Insurance?

There is not complete immunity under Florida's No Fault law
Covers insured's resident relatives
Negligence must be established
It covers loss of income due to injuries from an auto accident

The correct answer is: Negligence must be established

No-Fault Auto Insurance is a type of insurance where the policyholder's own insurance company will pay for damages and injury costs regardless of who is at fault for the accident. In this case, the statement in option C is false because negligence does not need to be established for the insurance to provide coverage. This type of insurance is meant to expedite the claims process and reduce the need for costly legal battles that determine fault. Option A is incorrect because while there is limited immunity for some claims, complete immunity does not exist. Option B is incorrect because No-Fault Insurance covers not only the policyholder but also their resident relatives. Option D is incorrect because No-Fault Insurance does not cover loss of income, only medical expenses and other specified costs related to the accident.