Florida Insurance Exam verified answers
Risk - the chance of financial loss
Risk is NOT the loss itself, but the _________ of loss. - CHANCE
Policy - a written contract for effecting insurance and includes Clauses, Riders,
endorsements, and papers which are part of the contract
Insurance - a contract where one undertakes to indemnify another or pay a
specific amount determined on contingencies
Binders - temporary insurance which can be made orally or written
property insurance - where payment is made directly to the insured or other
named interest
liability insurance - where payment is made on behalf of the insured to another
Indemnity contract - one-party should be put back in the same Financial condition
they were before the loss. Never profit from A Loss.
,Florida Insurance Exam verified answers
replacement cost - given new for old
agreed value - specific amount agreed in advance
Florida value policy law - paid limit for total loss
liability - pays amount that exceeds insured's resources
insurable interest - insured would suffer economic loss
peril - a contingency that may cause a loss example Wind, Fire, theft
hazard - a condition that increases the likelihood of a loss from a covered peril
physical hazard - physical characteristics that increase the probability and severity
of loss example ice-covered steps
moral hazard - intentional loss
example steal from employer
, Florida Insurance Exam verified answers
Morale hazard - accident prone or carelessness example did not lock the car door
proximate cause - root 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 - physical harm to tangible property
indirect loss - economic loss which flows as a consequence of the direct loss
example hotel stay after a fire
actual cash value - is the current cost to replace the item minus depreciation
replacement cost - is the actual cost to repair or replace property
valued policy - is 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
Risk - the chance of financial loss
Risk is NOT the loss itself, but the _________ of loss. - CHANCE
Policy - a written contract for effecting insurance and includes Clauses, Riders,
endorsements, and papers which are part of the contract
Insurance - a contract where one undertakes to indemnify another or pay a
specific amount determined on contingencies
Binders - temporary insurance which can be made orally or written
property insurance - where payment is made directly to the insured or other
named interest
liability insurance - where payment is made on behalf of the insured to another
Indemnity contract - one-party should be put back in the same Financial condition
they were before the loss. Never profit from A Loss.
,Florida Insurance Exam verified answers
replacement cost - given new for old
agreed value - specific amount agreed in advance
Florida value policy law - paid limit for total loss
liability - pays amount that exceeds insured's resources
insurable interest - insured would suffer economic loss
peril - a contingency that may cause a loss example Wind, Fire, theft
hazard - a condition that increases the likelihood of a loss from a covered peril
physical hazard - physical characteristics that increase the probability and severity
of loss example ice-covered steps
moral hazard - intentional loss
example steal from employer
, Florida Insurance Exam verified answers
Morale hazard - accident prone or carelessness example did not lock the car door
proximate cause - root 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 - physical harm to tangible property
indirect loss - economic loss which flows as a consequence of the direct loss
example hotel stay after a fire
actual cash value - is the current cost to replace the item minus depreciation
replacement cost - is the actual cost to repair or replace property
valued policy - is 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
