Florida Personal Lines 20-44 Definitions 2025/2026 QUESTIONS
AND ANSWERS GUARANTEE A+
Assignment Clause - A condition in insurance policies that specifies that transferring the policy
to another is not valid unless the company consents to it in writing
Automobile Mechanical Breakdown Insurance - Coverage designed to indemnify against the
costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's
warranty
Bailee - One who has temporary custody of property belonging to another (Example-Dry
Cleaners)
Binder - An oral or written statement providing immediate insurance protection, valid for a
specified period. Designed to provide temporary coverage until a policy can be issued or denied.
Bodily Injury - Usually defined to include physical harm, sickness, disease, or death resulting
from any of these
Burglary - As it is defined in Crime insurance policies, the taking of property by a person
unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit
Churning - Policy values in an existing policy are utilized to purchase another policy for the sole
purpose of earning additional compensation.
Coinsurance Clause - A form of Self-insurance where the insured retains part of the risk in
exchange for lower premiums.
Concealment - Failure of the insured to reveal relevant facts in applying for insurance.
, Contingent Liability - Liability which an insured or business incurs because of the actions of
others (i.e. family or employees) Also called vicarious liability.
Contract - A legal agreement between two parties promising a certain performance in exchange
for a certain consideration
Contract of Adhesion - The contract is created by the insurance company. The insured can NOT
negotiate the terms so a court of law would rule in the favor or the insured in the event of any
gray area.
Controlled Lines - Classes of Inland Marine coverage for which standardized forms have been
prepared. (Ex. Cameras, Fine Art, Jewelry, etc)
Debris Removal - A coverage provided in many property contracts which reimburses the insured
for expenses involved in removing debris produced by a loss from a peril insured against.
Declarations - The section of an insurance contract which shows who is insured, what property
or risk is covered, when and where coverage is effective and how much coverage applies.
Deductible - Usually, a dollar amount the insured must pay on each loss to which the deductible
applies. The insurance company pays the remainder of each covered loss up to policy limits.
Types include Franchise, Percentage and Straight Deductibles.
Defamation - Making false statements about a person
Direct Loss - Loss which is a direct result of a peril. Also includes loss due to efforts to end the
peril or to unavoidable exposure following a peril.
Domestic Insurer - An insurer formed under the lawsof this state
AND ANSWERS GUARANTEE A+
Assignment Clause - A condition in insurance policies that specifies that transferring the policy
to another is not valid unless the company consents to it in writing
Automobile Mechanical Breakdown Insurance - Coverage designed to indemnify against the
costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's
warranty
Bailee - One who has temporary custody of property belonging to another (Example-Dry
Cleaners)
Binder - An oral or written statement providing immediate insurance protection, valid for a
specified period. Designed to provide temporary coverage until a policy can be issued or denied.
Bodily Injury - Usually defined to include physical harm, sickness, disease, or death resulting
from any of these
Burglary - As it is defined in Crime insurance policies, the taking of property by a person
unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit
Churning - Policy values in an existing policy are utilized to purchase another policy for the sole
purpose of earning additional compensation.
Coinsurance Clause - A form of Self-insurance where the insured retains part of the risk in
exchange for lower premiums.
Concealment - Failure of the insured to reveal relevant facts in applying for insurance.
, Contingent Liability - Liability which an insured or business incurs because of the actions of
others (i.e. family or employees) Also called vicarious liability.
Contract - A legal agreement between two parties promising a certain performance in exchange
for a certain consideration
Contract of Adhesion - The contract is created by the insurance company. The insured can NOT
negotiate the terms so a court of law would rule in the favor or the insured in the event of any
gray area.
Controlled Lines - Classes of Inland Marine coverage for which standardized forms have been
prepared. (Ex. Cameras, Fine Art, Jewelry, etc)
Debris Removal - A coverage provided in many property contracts which reimburses the insured
for expenses involved in removing debris produced by a loss from a peril insured against.
Declarations - The section of an insurance contract which shows who is insured, what property
or risk is covered, when and where coverage is effective and how much coverage applies.
Deductible - Usually, a dollar amount the insured must pay on each loss to which the deductible
applies. The insurance company pays the remainder of each covered loss up to policy limits.
Types include Franchise, Percentage and Straight Deductibles.
Defamation - Making false statements about a person
Direct Loss - Loss which is a direct result of a peril. Also includes loss due to efforts to end the
peril or to unavoidable exposure following a peril.
Domestic Insurer - An insurer formed under the lawsof this state
