Florida Insurance Claims Adjuster License Practice Exam

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What is the purpose of a Personal Auto Policy?

  1. To insure the automobile exposures of businesses

  2. To insure the automobile exposures of individuals and families

  3. To provide general liability insurance

  4. To insure against natural disasters only

The correct answer is: To insure the automobile exposures of individuals and families

A and C are incorrect because they reference insuring businesses and general liability, which are outside the scope of a Personal Auto Policy. D is incorrect because it only mentions insuring against natural disasters, which is only a small part of what a Personal Auto Policy covers. B is the correct answer as it accurately describes the purpose of a Personal Auto Policy, which is to provide insurance for the automobile exposures of individuals and families. This includes coverage for property damage, bodily injury, and other losses that may occur while operating a personal vehicle.

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