Florida Personal Lines 20-44 Definitions Exam Questions And Answers

Florida Personal Lines 20-44 Definitions Exam Questions And Answers Abandonment Clause - ANS 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 - ANS A sudden fortuitous event Actual Cash Value (ACV) - ANS 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 (ACV=Replacement cost - depreciation) Aggregate Limit - ANS A type of policy limit found in liability policies which limits coverage to a specified total amount for all losses occurring within the policy period Agreed Value - ANS Written with property insurance policies. It waives the Coinsurance clause and required the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company Alien Insurer - ANS An insurer formed outside the United States All Risk Insurance - ANS Known as "Open Perils" insurance, it is insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with Named Peril insurance, which names the peril or perils insured against. Appraisal Clause - ANS Clause which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose an appraiser, who, failing to agree, select an umpire. Agreement of any two of the three will be decisive Assignment Clause - ANS 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 - ANS Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's warranty Bailee - ANS One who has temporary custody of property belonging to another (Example-Dry Cleaners)