Florida Insurance Licensing 2025 – 400 Free Practice Questions to Pass the Exam

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Question: 1 / 400

An insured has 25/50/25 limits and injured another person. How much is paid by the insured's insurance company for a $30,000 tort claim and $7,500 attorney fees?

0, since the insured was at-fault

$50,000, the policy limit

$37,500, the actual damages and the attorney's fees for defense

$32,500, the policy limit and the attorney's fees for defense

Option A is incorrect because even if the insured was at-fault, their insurance company would still cover the cost of damages up to their policy limit.

Option B is incorrect because the policy limit only applies to bodily injury or property damage caused by the insured to a third party, not including attorney fees.

Option C is incorrect because the insurance company will only pay up to the policy limit for damages, in this case $30,000, and the insured may be responsible for paying the remaining $7,500 in attorney fees out of pocket.

Option D is the correct answer because the insured's policy limit of 25/50/25 means their insurance company will pay up to $25,000 for bodily injury or death to one person, $50,000 total for bodily injury or death to multiple people, and $25,000 for property damage, plus the $7,500

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