FLORIDA 2-20 STATE EXAM ACTUAL TEST 2026
QUESTIONS WITH VERIFIED ANSWERS
◉ Abandonment. Answer: Prevents telling the insurer "You can have
the house, just give me the money". Insurer does not have to pay the
full value for damaged property, and the damaged property remains
the insureds responsibility.
◉ Severability. Answer: Insurance coverage applies separately to
each insured. If one insured does something criminal or something
that makes them ineligible to submit a claim. Other insured o nthe
policy will still be able to file their claims because this allows us to
"Cut out" anyone who cant main a claim.
◉ Loss. Answer: Actual damage done. Usually has a dollar value
assigned to this.
◉ Peril. Answer: The cause of loss.
◉ Hazards. Answer: Increase the chance of a loss occuring
◉ Moral Hazard. Answer: Intentionally caused losses.
,◉ Morale Hazard. Answer: Attitude of indifference to loss.
◉ Physical Hazard. Answer: Laws of Nature/ Acts of God
◉ Proximate Cause. Answer: That cause which directly through an
unbroken chain of events brings about a loss - of a covered peril is
the proximate cause, the policy must pay.
◉ Market Value. Answer: The cost to buy something in the current
market. Typically the same as RCV.
◉ Stated Value. Answer: An agreed amount that is considered to be
the value of something. An agreed value endorsement can change a
policy to insure a staged value. some policies, such as fine arts, will
always use this kind of valuation.
◉ Salvage Value. Answer: Sometimes there is an undamaged or
partly damaged portion of the property that can be sold, called
salvage. The insurer has rights to the salvage, if they pay a total loss.
◉ Coinsurance. Answer: this helps keep premiums down by
specifying that underinsured policyholders will share a portion of
'partial' losses with the carrier. this does not apply to total losses.
,◉ Specific Insurance. Answer: Separate amount of insurance on each
item insured.
◉ Blanket Insurance. Answer: Single amount of insurance on several
items to be covered. Each location has a deductible. Property
covered can be at any of the locations.
◉ Direct Loss. Answer: Physical harm to tangible property
◉ Indirect Loss. Answer: Economic loss in consequence of direct
loss.
◉ Mortgage clause. Answer: Protects lenders interest in real
property. Policies can not be canceled without notifying the
mortgagee. Acts of the insured that compromise the policy (ex.
committing arson) do not affect the mortgagees ability to collect
their interest from the policy.
◉ Loss Payable clause. Answer: Protects Lenders interest in
personal property
◉ Deductible. Answer: The part of a loss that the insured pays out of
pocket.
, ◉ Limit. Answer: Means the most an insurance company will pay for
a type of loss. This is their 'limit of liability'
◉ Occurrence. Answer: Means a bad thing that happens and is
covered by ones insurance. The exact definitions varies policy to
policy.
◉ Vacancy. Answer: Refers to a building that has no occupants and is
not furnished for people to occupy it.
◉ Unoccupancy. Answer: Refers to building that has no occupants,
but is furnished.
◉ Theft. Answer: Any act of stealing.
◉ Burglary. Answer: Trespassing for the purpose of stealing. Visible
signs of forced entry.
◉ Robbery. Answer: taking property by force or threat of harm.
◉ Mysterious Disappearance. Answer: Disappearance of property
without evidence of what happened.
QUESTIONS WITH VERIFIED ANSWERS
◉ Abandonment. Answer: Prevents telling the insurer "You can have
the house, just give me the money". Insurer does not have to pay the
full value for damaged property, and the damaged property remains
the insureds responsibility.
◉ Severability. Answer: Insurance coverage applies separately to
each insured. If one insured does something criminal or something
that makes them ineligible to submit a claim. Other insured o nthe
policy will still be able to file their claims because this allows us to
"Cut out" anyone who cant main a claim.
◉ Loss. Answer: Actual damage done. Usually has a dollar value
assigned to this.
◉ Peril. Answer: The cause of loss.
◉ Hazards. Answer: Increase the chance of a loss occuring
◉ Moral Hazard. Answer: Intentionally caused losses.
,◉ Morale Hazard. Answer: Attitude of indifference to loss.
◉ Physical Hazard. Answer: Laws of Nature/ Acts of God
◉ Proximate Cause. Answer: That cause which directly through an
unbroken chain of events brings about a loss - of a covered peril is
the proximate cause, the policy must pay.
◉ Market Value. Answer: The cost to buy something in the current
market. Typically the same as RCV.
◉ Stated Value. Answer: An agreed amount that is considered to be
the value of something. An agreed value endorsement can change a
policy to insure a staged value. some policies, such as fine arts, will
always use this kind of valuation.
◉ Salvage Value. Answer: Sometimes there is an undamaged or
partly damaged portion of the property that can be sold, called
salvage. The insurer has rights to the salvage, if they pay a total loss.
◉ Coinsurance. Answer: this helps keep premiums down by
specifying that underinsured policyholders will share a portion of
'partial' losses with the carrier. this does not apply to total losses.
,◉ Specific Insurance. Answer: Separate amount of insurance on each
item insured.
◉ Blanket Insurance. Answer: Single amount of insurance on several
items to be covered. Each location has a deductible. Property
covered can be at any of the locations.
◉ Direct Loss. Answer: Physical harm to tangible property
◉ Indirect Loss. Answer: Economic loss in consequence of direct
loss.
◉ Mortgage clause. Answer: Protects lenders interest in real
property. Policies can not be canceled without notifying the
mortgagee. Acts of the insured that compromise the policy (ex.
committing arson) do not affect the mortgagees ability to collect
their interest from the policy.
◉ Loss Payable clause. Answer: Protects Lenders interest in
personal property
◉ Deductible. Answer: The part of a loss that the insured pays out of
pocket.
, ◉ Limit. Answer: Means the most an insurance company will pay for
a type of loss. This is their 'limit of liability'
◉ Occurrence. Answer: Means a bad thing that happens and is
covered by ones insurance. The exact definitions varies policy to
policy.
◉ Vacancy. Answer: Refers to a building that has no occupants and is
not furnished for people to occupy it.
◉ Unoccupancy. Answer: Refers to building that has no occupants,
but is furnished.
◉ Theft. Answer: Any act of stealing.
◉ Burglary. Answer: Trespassing for the purpose of stealing. Visible
signs of forced entry.
◉ Robbery. Answer: taking property by force or threat of harm.
◉ Mysterious Disappearance. Answer: Disappearance of property
without evidence of what happened.
