Florida Insurance Exam All Possible Questions and Answers with complete solution

Risk - the chance of financial loss Risk is NOT the loss itself, but the _________ of loss. - CHANCE Policy - a written contract for effecting insurance and includes Clauses, Riders, endorsements, and papers which are part of the contract Insurance - a contract where one undertakes to indemnify another or pay a specific amount determined on contingencies Binders - temporary insurance which can be made orally or written property insurance - where payment is made directly to the insured or other named interest liability insurance - where payment is made on behalf of the insured to another Indemnity contract - one-party should be put back in the same Financial condition they were before the loss. Never profit from A Loss. replacement cost - given new for old agreed value - specific amount agreed in advance Florida value policy law - paid limit for total loss liability - pays amount that exceeds insured's resourcesinsurable interest - insured would suffer economic loss