Florida Insurance Exam
Risk correct answersthe chance of financial loss
Risk is NOT the loss itself, but the of loss. correct answersCHANCE
Policy correct answersa written contract for effecting insurance and
includes Clauses, Riders, endorsements, and papers which are part of the
contract
Insurance correct answersa contract where one undertakes to indemnify
another or pay a specific amount determined on contingencies
Binders correct answerstemporary insurance which can be made orally or
written
property insurance correct answerswhere payment is made directly to the
insured or other named interest
liability insurance correct answerswhere payment is made on behalf of the
insured to another
Indemnity contract correct answersone-party should be put back in the
same Financial condition they were before the loss. Never profit from A
Loss.
replacement cost correct answersgiven new for old
agreed value correct answersspecific amount agreed in
advance Florida value policy law correct answerspaid
limit for total loss
liability correct answerspays amount that exceeds insured's
resources insurable interest correct answersinsured would
suffer economic loss
peril correct answersa contingency that may cause a loss
example Wind, Fire, theft
hazard correct answersa condition that increases the likelihood of a loss from
a covered peril
physical hazard correct answersphysical characteristics that increase the
probability and severity of loss example ice-covered steps
moral hazard correct answersintentional loss
, example steal from employer
Morale hazard correct answersaccident prone or carelessness example did
not lock the car door
proximate cause correct answersroot 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 correct answersphysical harm to tangible property
indirect loss correct answerseconomic loss which flows as a consequence of
the direct loss
example hotel stay after a fire
actual cash value correct answersis the current cost to replace the
item minus depreciation
replacement cost correct answersis the actual cost to repair or
replace property
valued policy correct answersis where the insurer agrees, in advance, that
the covered limit applicable to the item will be considered its value. This
applies to items where ACV or replacement cost is difficult to establish, such
as with antiques or Fine Arts
coinsurance correct answersa method of encouraging the insured to accept
the responsibility of ensuring for the amount close to the value of the
property. Coinsurance is primarily used in commercial policies and values
vary from 80 to 100%
specific insurance correct answersis coverage subject to separate limits
such as each building or the contents of each building
Blanket Insurance correct answersa single amount of coverage that
applies to two or more coverage items
straight ductable correct answersdeduction of a flat amount
percentage deductible correct answerspercentage of loss of the value of the
property or a percentage of the policy limits
example hurricane deductibles
franchise deductible correct answersno payment is made until the loss
equals or exceeds a prescribed amount, then lost paid in full
Risk correct answersthe chance of financial loss
Risk is NOT the loss itself, but the of loss. correct answersCHANCE
Policy correct answersa written contract for effecting insurance and
includes Clauses, Riders, endorsements, and papers which are part of the
contract
Insurance correct answersa contract where one undertakes to indemnify
another or pay a specific amount determined on contingencies
Binders correct answerstemporary insurance which can be made orally or
written
property insurance correct answerswhere payment is made directly to the
insured or other named interest
liability insurance correct answerswhere payment is made on behalf of the
insured to another
Indemnity contract correct answersone-party should be put back in the
same Financial condition they were before the loss. Never profit from A
Loss.
replacement cost correct answersgiven new for old
agreed value correct answersspecific amount agreed in
advance Florida value policy law correct answerspaid
limit for total loss
liability correct answerspays amount that exceeds insured's
resources insurable interest correct answersinsured would
suffer economic loss
peril correct answersa contingency that may cause a loss
example Wind, Fire, theft
hazard correct answersa condition that increases the likelihood of a loss from
a covered peril
physical hazard correct answersphysical characteristics that increase the
probability and severity of loss example ice-covered steps
moral hazard correct answersintentional loss
, example steal from employer
Morale hazard correct answersaccident prone or carelessness example did
not lock the car door
proximate cause correct answersroot 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 correct answersphysical harm to tangible property
indirect loss correct answerseconomic loss which flows as a consequence of
the direct loss
example hotel stay after a fire
actual cash value correct answersis the current cost to replace the
item minus depreciation
replacement cost correct answersis the actual cost to repair or
replace property
valued policy correct answersis where the insurer agrees, in advance, that
the covered limit applicable to the item will be considered its value. This
applies to items where ACV or replacement cost is difficult to establish, such
as with antiques or Fine Arts
coinsurance correct answersa method of encouraging the insured to accept
the responsibility of ensuring for the amount close to the value of the
property. Coinsurance is primarily used in commercial policies and values
vary from 80 to 100%
specific insurance correct answersis coverage subject to separate limits
such as each building or the contents of each building
Blanket Insurance correct answersa single amount of coverage that
applies to two or more coverage items
straight ductable correct answersdeduction of a flat amount
percentage deductible correct answerspercentage of loss of the value of the
property or a percentage of the policy limits
example hurricane deductibles
franchise deductible correct answersno payment is made until the loss
equals or exceeds a prescribed amount, then lost paid in full
