Florida Insurance Licensing Practice Exam

Liability refers to one's legal responsibility for something, while coverage refers to the protection or financial support one has in case of an event. These two terms are often associated with insurance, where liability insurance covers the costs of damages or injuries caused by the insured person, while coverage refers to the extent or amount of protection and benefits provided by an insurance policy. Therefore, option A and B are incorrect as there is a clear difference between liability and coverage. Option D is also incorrect as both liability and coverage can be legal obligations depending on the situation.