Florida Insurance Exam Questions and Answers 100% Pass

Florida Insurance Exam Questions and Answers 100% Pass 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 resources insurable interest insured would suffer economic loss peril a contingency that may cause a loss example Wind, Fire, theft hazard a condition that increases the likelihood of a loss from a covered peril physical hazard physical characteristics that increase the probability and severity of loss example ice-covered steps moral hazard intentional loss example steal from employer Morale hazard accident prone or carelessness example did not lock the car door proximate cause 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. direct loss physical harm to tangible property indirect loss economic loss which flows as a consequence of the direct loss example hotel stay after a fire actual cash value is the current cost to replace the item minus depreciation replacement cost is the actual cost to repair or replace property valued policy is where the insurer agrees, in adv