Personal Lines License 20-44 Exam Questions and Answers (RATED A+)

Misrepresentation - ANSWER-an untrue statement by the insured, made in an application but does not become a part of the policy Broad Evidence Rule - ANSWER-a method of determing the true insurable worth of a structure or vehicle according to any measure that will prvoide the most accurate analysis of that property's value State - ANSWER-a jurisdiction other than the state of Florida (any state, district, territory, or commonwealth in the U.S.) authorized insurer - ANSWER-one authorized by a subsisting certificate of authority issued by the department to transact insurance in this state Office of Insurance Regulation - ANSWER-regulation, compliance, and enforcement of statutes related to the business of insurance and the monitoring of industry markets (regulatory oversight of company solvency, policy forms and rates, market conduct performance, and new company entrants in the FL market Causes of Loss Form - ANSWER-specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to special. An earthquake form is also available Split Limits - ANSWER-policy limits that apply one limit to each person injured, another for BI claims of all persons insured in a single accident, and a separate limit for all property damage arising out of a single accident (i.e. 15/30/10) Severability - ANSWER-insurance applies separately to each insureds Arbitration Clause - ANSWER-in the event the insured and the insurer cannot agree on amount of claim settlement, each appoints an appraiser Liberalization - ANSWER-if insurer broadens coverage w/out additional premium w/in some period of time prior to the policy period (60 days) or during the policy period, the insured receives the benefit Pro Rata - ANSWER-pay the proportion (limit: all limits) (i.e.$25,000/$100,000 =1/4)