FLORIDA INSURANCE EXAM
Questions and Answers
1.Risk
Answer the chance of financial loss
2.Risk is NOT the loss itself, but the of loss.
Answer CHANCE
3.Policy
Answer a written contract for effecting insurance and includes Clauses,
Riders, endorsements, and papers which are part of the contract
4.Insurance
Answer a contract where one undertakes to indemnify another or
pay a specific amount determined on contingencies
5.Binders
Answer temporary insurance which can be made orally or written
6.property insurance
Answer where payment is made directly to the insured or other
named interest
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,7.liability insurance
Answer where payment is made on behalf of the insured to another
8.Indemnity contract
Answer one-party should be put back in the same Financial condi- tion
they were before the loss. Never profit from A Loss.
9.replacement cost
Answer given new for old
10.agreed value
Answer specific amount agreed in advance
11.Florida value policy law
Answer paid limit for total loss
12.liability
Answer pays amount that exceeds insured's resources
13.insurable interest
Answer insured would suffer economic loss
14.peril
Answer a contingency that may cause a loss example Wind, Fire, theft
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, 15.hazard
Answer a condition that increases the likelihood of a loss from a
covered peril
16.physical hazard
Answer physical characteristics that increase the probability and
severity of loss example ice-covered steps
17.moral hazard
Answer intentional loss
example steal from employer
18.Morale hazard
Answer accident prone or carelessness example did not lock the car
door
19.proximate cause
Answer root cause
a doctrine that states when there is an unbroken connection between An
Occurrence and damage that grows out of the occurrence, then the
resultant damage is all part of the occurrence.
20.direct loss
Answer physical harm to tangible property
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Questions and Answers
1.Risk
Answer the chance of financial loss
2.Risk is NOT the loss itself, but the of loss.
Answer CHANCE
3.Policy
Answer a written contract for effecting insurance and includes Clauses,
Riders, endorsements, and papers which are part of the contract
4.Insurance
Answer a contract where one undertakes to indemnify another or
pay a specific amount determined on contingencies
5.Binders
Answer temporary insurance which can be made orally or written
6.property insurance
Answer where payment is made directly to the insured or other
named interest
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21
,7.liability insurance
Answer where payment is made on behalf of the insured to another
8.Indemnity contract
Answer one-party should be put back in the same Financial condi- tion
they were before the loss. Never profit from A Loss.
9.replacement cost
Answer given new for old
10.agreed value
Answer specific amount agreed in advance
11.Florida value policy law
Answer paid limit for total loss
12.liability
Answer pays amount that exceeds insured's resources
13.insurable interest
Answer insured would suffer economic loss
14.peril
Answer a contingency that may cause a loss example Wind, Fire, theft
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21
, 15.hazard
Answer a condition that increases the likelihood of a loss from a
covered peril
16.physical hazard
Answer physical characteristics that increase the probability and
severity of loss example ice-covered steps
17.moral hazard
Answer intentional loss
example steal from employer
18.Morale hazard
Answer accident prone or carelessness example did not lock the car
door
19.proximate cause
Answer root cause
a doctrine that states when there is an unbroken connection between An
Occurrence and damage that grows out of the occurrence, then the
resultant damage is all part of the occurrence.
20.direct loss
Answer physical harm to tangible property
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