Where must the insurance policy on your Florida-registered vehicle be purchased?
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A.
From an insurance agency licensed to do business in Florida Correct
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B.
From any company that is licensed in any US state
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C.
From a federally chartered insurer only
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D.
From any online insurance broker operating nationwide
The answer is "From an insurance agency licensed to do business in Florida"
The manual requires you to purchase the policy from an insurance agency licensed to do business in Florida. Option B traps drivers who carry driver-license reciprocity over to insurance, assuming a company licensed anywhere in the country satisfies Florida, when the state instead checks the agency's Florida license.
The traps in the wrong answers
B. From any company that is licensed in any US state
An agency licensed only in another state cannot sell the policy that satisfies Florida's No-Fault Law. This answer assumes an insurance company advertising nationally must be licensed in every state, so a separate Florida agency license is unnecessary.
C. From a federally chartered insurer only
Auto-insurance agencies are licensed by the state, and the manual points to no federal-charter option. This answer imports the federal-charter framework from national banks into auto insurance, though states handle every step of insurance-agency licensing.
D. From any online insurance broker operating nationwide
An online broker still has to be an insurance agency licensed to do business in Florida for the policy to satisfy the No-Fault Law. This answer treats a nationwide broker's marketing footprint as if it were the Florida agency license the No-Fault Law actually requires.
This question tests your knowledge of Insurance & Financial Responsibility in Florida. Source: Florida Driver Manual, "Insurance Laws: No-Fault Law," p.23..
Related Florida questions
- Before registering your car in Florida, what minimum Personal Injury Protection (PIP) coverage must you show under the No-Fault Law? →
- Under Florida's No-Fault Law, what does Personal Injury Protection (PIP) coverage pay for? →
- What does Property Damage Liability (PDL) insurance pay for in Florida? →
- You are driving your own car in Florida. What proof of insurance does state law require you to have with you? →
- Besides carrying insurance from a Florida-licensed company, how else may you prove financial responsibility for damages after a crash? →
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