Citizens Property Insurance Corporation (Citizens)

Citizens Property Insurance Corporation is Florida’s residual market property insurer.

It exists to provide property insurance when coverage is not available through the regular admitted market under qualifying circumstances.

Why this matters

• Citizens is one of the most testable Florida property concepts because it is unique to Florida’s market conditions.

Important Point

Citizens is not the first choice market. It is a residual market mechanism, meaning coverage of last resort when the standard market is unavailable.

Sidenote

Exam Tip

If the question involves a homeowner who cannot obtain property insurance in the ordinary market, think Citizens.

Surplus Lines

Surplus lines insurance applies when a risk cannot be placed with admitted insurers and must be exported to the nonadmitted market under Florida rules.

This topic appears on the Personal Lines exam because some personal property risks may end up in the surplus lines market.

Florida Surplus Lines Service Office

Florida uses a surplus lines regulatory structure that includes the Florida Surplus Lines Service Office.

For exam purposes, you should recognize that Florida has a formal system for handling surplus lines placements and compliance.

Eligibility for Export

A risk may be exported to the surplus lines market when coverage cannot be obtained in the admitted market under the applicable rules.

Important Point

Surplus lines is not simply a convenience option. It exists for risks that the admitted market will not cover.

Example

A high-risk coastal property cannot obtain coverage from admitted insurers. That kind of scenario may point toward surplus lines eligibility.

Sidenote

Exam Tip**

** If the admitted market cannot provide the needed coverage, and the question mentions export or nonadmitted placement, think surplus lines.

Auto Insurance

Florida personal auto law is heavily tested on the Personal Lines exam.

This section usually focuses on:

• Required coverages
• Financial responsibility
• PIP
• UM/UIM
• Cancellation and nonrenewal
• Motorcycles

Required Coverages

Financial Responsibility Law

Florida requires certain drivers to demonstrate financial responsibility for damages they may cause.

The exam may test whether the driver satisfied Florida’s legal requirements.

Personal Injury Protection (PIP)

Florida is strongly associated with PIP. PIP pays certain medical and related expenses regardless of fault, subject to Florida law and policy terms.

Important Point

PIP is one of the most important Florida personal auto concepts.

Sidenote

Exam Tip

** If the question is about Florida-required auto coverage, look closely for PIP.

Limits

The exam may test whether a policy carries the required limits or whether the insured has satisfied Florida’s financial responsibility rules.

Important Point

Read limit questions carefully. Florida auto questions often turn on the exact type of required coverage rather than broad assumptions.

Uninsured / Underinsured Motorists Coverage

UM/UIM coverage protects an insured who is injured by a driver with:

• No insurance or not enough insurance

Why this matters

• This is a common exam topic because it adds another layer beyond required liability or PIP coverage.

Important Point

UM/UIM is about protection against the other driver’s lack of insurance or inadequate insurance.

Cancellation / Nonrenewal

As with homeowners, Florida regulates cancellation and nonrenewal of personal auto policies.

The exam may test whether:

• Proper notice was given
• The insurer had a valid basis
• The action was cancellation or nonrenewal

Motorcycle Coverage

Motorcycle insurance is another favorite test area because students often assume motorcycles are treated exactly like private passenger autos.

Be careful.

Important Point

Do not automatically assume every rule that applies to a personal auto applies exactly the same way to a motorcycle.

Sidenote

Exam Tip

If the question involves a motorcycle, slow down and do not assume it follows every standard auto rule automatically.

Comparative Negligence / Fault

Florida liability questions may test how fault is shared between parties.

Important Point

Comparative negligence means more than one person may share responsibility for an accident, and that can affect recovery or liability.

Example

If Driver A is mostly at fault, but Driver B also contributed to the accident, the exam may ask how that shared fault affects the outcome.

This section is usually tested more as a legal concept than as a complicated math problem.

Florida Automobile Joint Underwriting Association (FAJUA)

FAJUA is Florida’s residual market mechanism for certain auto risks that cannot obtain coverage in the normal market.

Why this matters

• Like Citizens in property insurance, FAJUA exists to provide access to coverage when the voluntary market is unavailable.

Important Point

FAJUA is a residual market solution, not a standard admitted-market insurer.

Sidenote

Exam Tip

If a driver cannot obtain auto coverage in the regular market, the question may be pointing you toward FAJUA.