Insurance Terms and Related Concepts. (Florida Edition) Questions and Answers 100% Pass

A person who does not lock the doors to his or her house shows an Indifferent attitude. What type of hazard does this represent? - Correct Answer ️️ -Morale. What sublimit in a liability policy puts a ceiling on the payment for all claims that arise from a single accident? - Correct Answer ️️ -Per occurrence. If a manufactured product is unsafe, what type of liability applies to the manufacturer? - Correct Answer ️️ -Strict liability. In property insurance, what is the purpose of a coinsurance clause? - Correct Answer ️️ -To encourage insureds to insure property close to its value. What term defines an exact, direct, and uninterrupted cause of loss? - Correct Answer ️️ -Proximate cause. What type of limits of liability has the limits separately stated for different coverages? - Correct Answer ️️ -Spilt limits. What does indemnify mean in insurance? - Correct Answer ️️ -To restore an insured to the same financial status as before a loss. How are direct and indirect losses related? - Correct Answer ️️ -Direct losses can cause indirect losses. What provision states that if a policy allows for greater benefits than the financial loss incurred, the insured may be compensated only for the amount loss? - Correct Answer ️️ -Indemnity.