Florida Insurance Exam| 120 Questions| Correct 100%

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