Florida Insurance 20-44 Exam Study
1. insurance ________________ is a contract whereby one undertakes to indemnify another
or pay or allow a specified amount or a determinable benefit upon determinable
contingencies.
2. casualty ______________ insurance is insurance which pays on behalf of the insured's
legal liability.
3. liberalization The ______________ provision broadens an insured's coverage without an in-
crease in premium when the insurer has adopted a generic global policy revision.
4. severability "________________ of Interest" means insurance applies separately to each
insured.
5. policy A _________ is a written contract of or a written agreement for or affecting
insurance.
6. $40,000 A homeowner with a Homeowners policy with $500,000 of coverage and a 2%
windstorm deductible suffers a windstorm loss of $50,000 - how much will the
insured collect on their claim?
7. pro-rata The "Other Policy" provision which apportions responsibility with each company
paying in proportion to the limit it bears in relation to all limits.
8. physical hazard A physical characteristic which increase the probability and severity of loss is a....
9. $200,000 A private passenger automobile policy has a single bodily injury liability limit of
$500,000 - the insured is involved in an at-fault accident and four individuals in
the other car have injuries of $50,000 each - how much will the policy pay in total?
10. indirect An example of an ______________ loss is the loss of use of tangible property.
11. $1,550 An insured has a $250 Collision deductible on her auto policy - the insured hit a
large oak tree in a single vehicle accident resulting in $1,800 in damages - how
much will the insurance company pay the insured?
, Florida Insurance 20-44 Exam Study
12. franchise Which type of deductible specifies that no payment will be made until loss equals
or exceeds a prescribed amount; then the loss is paid in full.
13. concealment Bill Williams, your insured, has failed to reveal some relevant facts when he is
applying for insurance. What is this is considered?
14. 60 No notice of cancellation or non-renewal of a binder is required unless a binder
exceeds how many days?
15. insured Insurance contracts are considered Contracts of Adhesion. Ambiguities in the
contract are resolved in favor of the ___________________________.
16. proximate cause What is the fundamental doctrine in property insurance that holds that when there
is an unbroken connection between an occurrence and damage that grows out
of the occurrence, then the resulting damage is a part of the occurrence.
17. conditional Property and liability insurance policies are said to be ___________ contracts
because the obligation of the insurer to perform may be conditioned upon the
insured satisfying certain conditions.
18. negligence Ready Ralph Reiger, your insured, has not exercised the degree of care to pro-
tect his neighbor from injury on his property; this is commonly referred to as
_______________.
19. loss Risk means the chance of financial _____________.
20. amount of loss The appraisal condition is only used to resolve issues of?
21. depreciation The basic definition of Actual Cash Value is "current cost to replace" less an
allowance for _____________________.
22. $250,000
, Florida Insurance 20-44 Exam Study
What amount will be paid to an insured who has an insurance policy with separate
limits of $250,000 per building on two buildings and a $275,000 loss occurs to
one of the buildings?
23. probability Physical, Moral, and Morale Hazards increase the ________________and/or
severity of loss?
24. Pure Risk only a chance of loss
25. Speculative Risk Chance of loss or gain
26. Law of Large A principle stating that the larger the number of similar exposure units consid-
Numbers ered, the more closely the losses reported will equal the underlying probability of
loss.
27. endorsement _______________ is the modification of original policy, usually adds coverage or
conforms to State requirement.
28. Binders _________ Precede Policy Issuance; coverage is "put into effect" PRIOR to is-
suance of policy.
29. oral or written Binders enable immediate change and can be ___________ __ ___________
30. 60 days Company does not have to give notice of cancellation or non-renewal unless
Binder exceeds __________
31. Personal con- Insurance contracts are ________ _________ that cover losses sustained by the
tracts person(s), focus is on the person(s).
32. Conditional Con- Insured has to satisfy certain conditions in order for the Insurer to preform duties
tracts
33. Contract of Adhe- Insured cannot negotiate the terms or language of the contract in a _______ __
sion ________.
, Florida Insurance 20-44 Exam Study
34. economic inter- Insurable Interest must exist before a policy will pay for a loss and is the
est __________________ in the preservation of the subject.
35. Subrogation Sally's car has been damaged by fault of Paul, her damages total 250,000. Sally
files a claim with her own insurance with a split limit of 200/300, while Paul has a
single limit of $100,000.
Sally gains $200,000 and nothing from Paul, this is called _____________.
36. Direct Loss Physical harm to tangible property is _________ _____.
37. Indirect ________ Loss is the economic loss which flows as a consequence of Direct loss.
38. Loans and Leases Lender Interest Insurance also protects the collateral of creditors who have pro-
vided ________ ___ ________ to an insured such as car loans, mortgages, etc.
39. Coininsurance In Florida, insured must insure property to 80% of total value or higher or suffer
a penalty of loss.
40. 5 years Statute of limitation is ___________ for a breach of contract
41. 4 years Statute of limitation is ___________ for Tort
42. 3 years Statute of limitation is ___________ for an Insurance claim against Insurance
company
43. 2 years Statute of limitation is ___________ for a wrongful death claim
44. Pro-Rata A ____-________ are when two insurances happen to cover the same occurrence
and ,must split the coverage for the shared Insured.
45. Moral A ____________ Hazard is a conscious mental attitude which increase the prob-
ability or severity of loss.
46. unconscious Morale Hazard is the ________________ mental attitude which increase the
probability or severity of loss
1. insurance ________________ is a contract whereby one undertakes to indemnify another
or pay or allow a specified amount or a determinable benefit upon determinable
contingencies.
2. casualty ______________ insurance is insurance which pays on behalf of the insured's
legal liability.
3. liberalization The ______________ provision broadens an insured's coverage without an in-
crease in premium when the insurer has adopted a generic global policy revision.
4. severability "________________ of Interest" means insurance applies separately to each
insured.
5. policy A _________ is a written contract of or a written agreement for or affecting
insurance.
6. $40,000 A homeowner with a Homeowners policy with $500,000 of coverage and a 2%
windstorm deductible suffers a windstorm loss of $50,000 - how much will the
insured collect on their claim?
7. pro-rata The "Other Policy" provision which apportions responsibility with each company
paying in proportion to the limit it bears in relation to all limits.
8. physical hazard A physical characteristic which increase the probability and severity of loss is a....
9. $200,000 A private passenger automobile policy has a single bodily injury liability limit of
$500,000 - the insured is involved in an at-fault accident and four individuals in
the other car have injuries of $50,000 each - how much will the policy pay in total?
10. indirect An example of an ______________ loss is the loss of use of tangible property.
11. $1,550 An insured has a $250 Collision deductible on her auto policy - the insured hit a
large oak tree in a single vehicle accident resulting in $1,800 in damages - how
much will the insurance company pay the insured?
, Florida Insurance 20-44 Exam Study
12. franchise Which type of deductible specifies that no payment will be made until loss equals
or exceeds a prescribed amount; then the loss is paid in full.
13. concealment Bill Williams, your insured, has failed to reveal some relevant facts when he is
applying for insurance. What is this is considered?
14. 60 No notice of cancellation or non-renewal of a binder is required unless a binder
exceeds how many days?
15. insured Insurance contracts are considered Contracts of Adhesion. Ambiguities in the
contract are resolved in favor of the ___________________________.
16. proximate cause What is the fundamental doctrine in property insurance that holds that when there
is an unbroken connection between an occurrence and damage that grows out
of the occurrence, then the resulting damage is a part of the occurrence.
17. conditional Property and liability insurance policies are said to be ___________ contracts
because the obligation of the insurer to perform may be conditioned upon the
insured satisfying certain conditions.
18. negligence Ready Ralph Reiger, your insured, has not exercised the degree of care to pro-
tect his neighbor from injury on his property; this is commonly referred to as
_______________.
19. loss Risk means the chance of financial _____________.
20. amount of loss The appraisal condition is only used to resolve issues of?
21. depreciation The basic definition of Actual Cash Value is "current cost to replace" less an
allowance for _____________________.
22. $250,000
, Florida Insurance 20-44 Exam Study
What amount will be paid to an insured who has an insurance policy with separate
limits of $250,000 per building on two buildings and a $275,000 loss occurs to
one of the buildings?
23. probability Physical, Moral, and Morale Hazards increase the ________________and/or
severity of loss?
24. Pure Risk only a chance of loss
25. Speculative Risk Chance of loss or gain
26. Law of Large A principle stating that the larger the number of similar exposure units consid-
Numbers ered, the more closely the losses reported will equal the underlying probability of
loss.
27. endorsement _______________ is the modification of original policy, usually adds coverage or
conforms to State requirement.
28. Binders _________ Precede Policy Issuance; coverage is "put into effect" PRIOR to is-
suance of policy.
29. oral or written Binders enable immediate change and can be ___________ __ ___________
30. 60 days Company does not have to give notice of cancellation or non-renewal unless
Binder exceeds __________
31. Personal con- Insurance contracts are ________ _________ that cover losses sustained by the
tracts person(s), focus is on the person(s).
32. Conditional Con- Insured has to satisfy certain conditions in order for the Insurer to preform duties
tracts
33. Contract of Adhe- Insured cannot negotiate the terms or language of the contract in a _______ __
sion ________.
, Florida Insurance 20-44 Exam Study
34. economic inter- Insurable Interest must exist before a policy will pay for a loss and is the
est __________________ in the preservation of the subject.
35. Subrogation Sally's car has been damaged by fault of Paul, her damages total 250,000. Sally
files a claim with her own insurance with a split limit of 200/300, while Paul has a
single limit of $100,000.
Sally gains $200,000 and nothing from Paul, this is called _____________.
36. Direct Loss Physical harm to tangible property is _________ _____.
37. Indirect ________ Loss is the economic loss which flows as a consequence of Direct loss.
38. Loans and Leases Lender Interest Insurance also protects the collateral of creditors who have pro-
vided ________ ___ ________ to an insured such as car loans, mortgages, etc.
39. Coininsurance In Florida, insured must insure property to 80% of total value or higher or suffer
a penalty of loss.
40. 5 years Statute of limitation is ___________ for a breach of contract
41. 4 years Statute of limitation is ___________ for Tort
42. 3 years Statute of limitation is ___________ for an Insurance claim against Insurance
company
43. 2 years Statute of limitation is ___________ for a wrongful death claim
44. Pro-Rata A ____-________ are when two insurances happen to cover the same occurrence
and ,must split the coverage for the shared Insured.
45. Moral A ____________ Hazard is a conscious mental attitude which increase the prob-
ability or severity of loss.
46. unconscious Morale Hazard is the ________________ mental attitude which increase the
probability or severity of loss
