FLORIDA LICENSE QUESTIONS WITH ACCURATE
ANSWERS
What does a contract have to meet in order to be legal and valid?
Accurate Answer - 1. A manifestation of assent(Agreement) to its terms by
the parties who make the contract
2. Value/payment for promise
3. Legal capacity of the parties to contract
4. Not against public policy or otherwise illegal
Policy Accurate Answer - a written contract/written agreement for
or effecting insurance, or the certificate thereof, by whatever name called,
and includes all clauses, riders, endorsements and papers
Insurance Accurate Answer - A contract that one undertakes to
indemnify another or pay or allow a specified amount or a determined
benefit upon determinable contingencies
Elements that the constitute the "consideration" for a valid insurance
contract Accurate Answer - premium and agreement to the terms
and conditions in the policy by both the insurer and the insured
A standard policy Accurate Answer - Policies written by all/most of
the companies in the field for given coverage
ex. custom and common law, statute, or intercompany agreement
A statutory policy Accurate Answer - Standardized through state
law, few of these policies but many minimum standard statutory provisions
to be included in insurance contracts
When is insurance placed into effect? Accurate Answer - Once it is
bound, prior to issuance of a policy contract for convenience
Binders for temporary insurance Accurate Answer - May be made
orally or in writing. No notice needed for cancellation/nonrenewal unless
exceeds 60 days.
,F.S. insurer gives 5 days prior notice of cancellation of a binder unless
replaced by a policy or another binder
Loss payment in Property insurance Accurate Answer - payment by
the insurer will be directly to the insured or named interests
Loss
Payment for Liability insurance Accurate Answer - payment will be
on behalf of the insured to another based on insured's liability
A single policy Accurate Answer - may be both property and
liability
License to sell Health insurance Accurate Answer - Agents licensed
for property and liability are also authorized to sell health insurance
Insurance contracts parts (DICE) Accurate Answer - Declarations,
Insurance Agreement, Conditions, Exclusions
Declarations Accurate Answer - subjects covered, persons insured,
premium paid, period of coverage, policy limits
Insuring agreement Accurate Answer - define broadly the coverages
given under the policy
Exclusions & Conditions Accurate Answer - Modifies the insuring
agreement
Exclusions are necessary to eliminate coverages which would
Accurate Answer - 1. duplicate those in other policies which may be
available to the insured
2. be uninsurable perils
3. be coverages of a specialized nature that the insurer is not qualified or
prepared to offer or that require special underwriting and rating
General Insured's Duties Accurate Answer - 1. give prompt notice of
loss
2. cooperate with insurer
3. act in a way which preserves the insurer's rights
,Liability policy require insured to: Accurate Answer - 1, give written
notice of loss
2. send copies of notices/legal papers received
3. authorize insured to obtain pertinent records
4. aid in settling as required by insurer
5. avoid voluntary payments or assumption of obligation
Property policy require insured to: Accurate Answer - 1. give
prompt notice to insurer and police
2. protect from further damage
3. prepare inventory of damages
4. show the damaged property, provide records and documents and submit
to questions under oath
5. reveal any other insurance that exists
6. submit written proof of loss
Proof of loss in property insurance contracts refers to Accurate
Answer - 1. evidence offered by the insured to prove entitlement to collect
the amount claimed from insurer
2. the statement, signed and sworn to by the insured
Abandonment clause Accurate Answer - a clause often contained in
property insurance policies stating that the insured cannot abandon
damaged property to the insurer and demand to be reimbursed for its full
value
Accident Accurate Answer - a sudden fortuitous event
Accounts receivable coverage form Accurate Answer - an inland
marine coverage form that insures against loss the insured suffers because
of an inability to collect from customers when accounts receivable records
are damaged
Actual cash value (ACV) Accurate Answer - The cost to replace an
item of property at the time of loss, less an allowance for depreciation.
Often used to determine amount of reimbursement for a loss
, Adjuster Accurate Answer - or claims rep. is one who is involved in
the investigation, adjustment, negotiation and/or trial prep. of claims
arising under policies of insurance
Adjustment Accurate Answer - The ultimate disposition of a claim
Aggregate limit Accurate Answer - A type of policy limit found in
liability policies that limits coverage to a specified total amount for all
losses occurring within the policy period
Agreed value Accurate Answer - written with property insurance
policies. It waives the Coinsurance clause and requires the insured to carry
insurance equal to at least 80% of a signed statement of values filed with
the company
Agreement of Guiding Principles Accurate Answer - a guide for
apportioning losses when nonconcurrent policy provisions apply to a
single claim
All risk insurance Accurate Answer - Aka "open perils" insurance, it
protects the insured from loss arising from any peril other than those
perils specifically excluded by name
Named Peril insurance Accurate Answer - names the peril or perils
against the insured
Annual transit policy Accurate Answer - inland marine
transportation insurance that insures a property owner for goods being
transported
Answer in a liability claim case Accurate Answer - the answer is the
statement of the defendant's defense
Apportionment Accurate Answer - a method for determining how
much will be contributed by each company toward a loss covered under
more than one policy.
Appraisal clause Accurate Answer - clause that provides an
appraisal procedure when the insured and the insurer are in disagreement
ANSWERS
What does a contract have to meet in order to be legal and valid?
Accurate Answer - 1. A manifestation of assent(Agreement) to its terms by
the parties who make the contract
2. Value/payment for promise
3. Legal capacity of the parties to contract
4. Not against public policy or otherwise illegal
Policy Accurate Answer - a written contract/written agreement for
or effecting insurance, or the certificate thereof, by whatever name called,
and includes all clauses, riders, endorsements and papers
Insurance Accurate Answer - A contract that one undertakes to
indemnify another or pay or allow a specified amount or a determined
benefit upon determinable contingencies
Elements that the constitute the "consideration" for a valid insurance
contract Accurate Answer - premium and agreement to the terms
and conditions in the policy by both the insurer and the insured
A standard policy Accurate Answer - Policies written by all/most of
the companies in the field for given coverage
ex. custom and common law, statute, or intercompany agreement
A statutory policy Accurate Answer - Standardized through state
law, few of these policies but many minimum standard statutory provisions
to be included in insurance contracts
When is insurance placed into effect? Accurate Answer - Once it is
bound, prior to issuance of a policy contract for convenience
Binders for temporary insurance Accurate Answer - May be made
orally or in writing. No notice needed for cancellation/nonrenewal unless
exceeds 60 days.
,F.S. insurer gives 5 days prior notice of cancellation of a binder unless
replaced by a policy or another binder
Loss payment in Property insurance Accurate Answer - payment by
the insurer will be directly to the insured or named interests
Loss
Payment for Liability insurance Accurate Answer - payment will be
on behalf of the insured to another based on insured's liability
A single policy Accurate Answer - may be both property and
liability
License to sell Health insurance Accurate Answer - Agents licensed
for property and liability are also authorized to sell health insurance
Insurance contracts parts (DICE) Accurate Answer - Declarations,
Insurance Agreement, Conditions, Exclusions
Declarations Accurate Answer - subjects covered, persons insured,
premium paid, period of coverage, policy limits
Insuring agreement Accurate Answer - define broadly the coverages
given under the policy
Exclusions & Conditions Accurate Answer - Modifies the insuring
agreement
Exclusions are necessary to eliminate coverages which would
Accurate Answer - 1. duplicate those in other policies which may be
available to the insured
2. be uninsurable perils
3. be coverages of a specialized nature that the insurer is not qualified or
prepared to offer or that require special underwriting and rating
General Insured's Duties Accurate Answer - 1. give prompt notice of
loss
2. cooperate with insurer
3. act in a way which preserves the insurer's rights
,Liability policy require insured to: Accurate Answer - 1, give written
notice of loss
2. send copies of notices/legal papers received
3. authorize insured to obtain pertinent records
4. aid in settling as required by insurer
5. avoid voluntary payments or assumption of obligation
Property policy require insured to: Accurate Answer - 1. give
prompt notice to insurer and police
2. protect from further damage
3. prepare inventory of damages
4. show the damaged property, provide records and documents and submit
to questions under oath
5. reveal any other insurance that exists
6. submit written proof of loss
Proof of loss in property insurance contracts refers to Accurate
Answer - 1. evidence offered by the insured to prove entitlement to collect
the amount claimed from insurer
2. the statement, signed and sworn to by the insured
Abandonment clause Accurate Answer - a clause often contained in
property insurance policies stating that the insured cannot abandon
damaged property to the insurer and demand to be reimbursed for its full
value
Accident Accurate Answer - a sudden fortuitous event
Accounts receivable coverage form Accurate Answer - an inland
marine coverage form that insures against loss the insured suffers because
of an inability to collect from customers when accounts receivable records
are damaged
Actual cash value (ACV) Accurate Answer - The cost to replace an
item of property at the time of loss, less an allowance for depreciation.
Often used to determine amount of reimbursement for a loss
, Adjuster Accurate Answer - or claims rep. is one who is involved in
the investigation, adjustment, negotiation and/or trial prep. of claims
arising under policies of insurance
Adjustment Accurate Answer - The ultimate disposition of a claim
Aggregate limit Accurate Answer - A type of policy limit found in
liability policies that limits coverage to a specified total amount for all
losses occurring within the policy period
Agreed value Accurate Answer - written with property insurance
policies. It waives the Coinsurance clause and requires the insured to carry
insurance equal to at least 80% of a signed statement of values filed with
the company
Agreement of Guiding Principles Accurate Answer - a guide for
apportioning losses when nonconcurrent policy provisions apply to a
single claim
All risk insurance Accurate Answer - Aka "open perils" insurance, it
protects the insured from loss arising from any peril other than those
perils specifically excluded by name
Named Peril insurance Accurate Answer - names the peril or perils
against the insured
Annual transit policy Accurate Answer - inland marine
transportation insurance that insures a property owner for goods being
transported
Answer in a liability claim case Accurate Answer - the answer is the
statement of the defendant's defense
Apportionment Accurate Answer - a method for determining how
much will be contributed by each company toward a loss covered under
more than one policy.
Appraisal clause Accurate Answer - clause that provides an
appraisal procedure when the insured and the insurer are in disagreement
