FLORIDA 440 EXAM Q AND A STUDY
GUIDE SOLVED QUESTIONS GRADED
◉ The Commercial Property Contract includes: Answer: Declarations
Common policy conditions
Commercial property conditions
Coverage form Causes of loss form - Basic, Broad or Special
Endorsements (varies)
◉ Declarations. Answer: The Declaration states:
The Insured(s) and Property covered
The limits of insurance
Deductible(s)
Inception and expiration dates of coverage
Identify the forms and endorsements that apply
Contain certain other information relevant to the risk, such as
identification of mortgage holders
◉ Conditions :Cancellation/Non-renewal. Answer: Florida law requires
an insurer to give the insured at least 45 days advance written notice of
non-renewal. The notice must state the reason or reasons why the policy
is not to be renewed. The insurer must also give 45 days advance written
,notice of cancellation, including the reasons for such cancellation,
except for cancellation for nonpayment of premium or cancellation
during the first 90 days during which the insurance is in force. For
cancellation for nonpayment of premium, 10 days written notice of
cancellation, accompanied by the reason, must be given. For
cancellation other than for nonpayment of premium during the first 90
days the policy is in force, at least 20 days advance notice, and the
reason for cancellation, must be given, except where there has been
material misrepresentation or misstatement or a failure to comply with
the underwriting requirements of the insurer.
Non-renewal of a commercial residential property policy requires a 120-
day notice to the insured while non-renewal of any other type of non-
residential commercial property policy requires a 45-day notice.
Insurance companies (other than Surplus Lines) are also required to give
insureds 45-days advance notice of the renewal premiums.
◉ Conditions: Changes. Answer: The policy may be changed only by
endorsement, agreed to between the company and the first named
insured in the policy.
◉ Conditions: Transfer. Answer: The insured may not transfer any rights
or duties under the policy except with written consent of the company.
Rights and duties are automatically transferred if the insured dies, first to
one who has legal temporary custody of the property and then to the
legal representative.
, ◉ Conditions:Concealment, Misrepresentation, Fraud. Answer:
Coverage is declared to be void if, related to the coverage, the insured
engages in any fraud or intentionally conceals or misrepresents material
facts.
◉ Conditions: Control of Property. Answer: Protection for the insured is
not impaired by acts of others beyond the insured's direction and control.
If an act or neglect of the insured relates to one covered location, it does
not impair coverage for any other locations covered in the policy.
◉ Conditions: liberalization. Answer: The insured gets the benefit of any
broadened coverage if the company, within 45 days of inception, adopts
a form revision that is broader and without increase in premium.
◉ Conditions: Other Insurance. Answer: When there is other insurance
written on the same basis (same plan, term, conditions and provisions)
the policy prorates with such other policy(s). If there is other insurance
which covers the same loss but is subject to a different plan or
provisions, the policy is excess over such other policy(s), whether
collectible or not.
◉ Conditions:Policy Term and Territory. Answer: policy covers only
loss which commences during the policy period and only in the United
States, territories and possessions, Puerto Rico and Canada.
GUIDE SOLVED QUESTIONS GRADED
◉ The Commercial Property Contract includes: Answer: Declarations
Common policy conditions
Commercial property conditions
Coverage form Causes of loss form - Basic, Broad or Special
Endorsements (varies)
◉ Declarations. Answer: The Declaration states:
The Insured(s) and Property covered
The limits of insurance
Deductible(s)
Inception and expiration dates of coverage
Identify the forms and endorsements that apply
Contain certain other information relevant to the risk, such as
identification of mortgage holders
◉ Conditions :Cancellation/Non-renewal. Answer: Florida law requires
an insurer to give the insured at least 45 days advance written notice of
non-renewal. The notice must state the reason or reasons why the policy
is not to be renewed. The insurer must also give 45 days advance written
,notice of cancellation, including the reasons for such cancellation,
except for cancellation for nonpayment of premium or cancellation
during the first 90 days during which the insurance is in force. For
cancellation for nonpayment of premium, 10 days written notice of
cancellation, accompanied by the reason, must be given. For
cancellation other than for nonpayment of premium during the first 90
days the policy is in force, at least 20 days advance notice, and the
reason for cancellation, must be given, except where there has been
material misrepresentation or misstatement or a failure to comply with
the underwriting requirements of the insurer.
Non-renewal of a commercial residential property policy requires a 120-
day notice to the insured while non-renewal of any other type of non-
residential commercial property policy requires a 45-day notice.
Insurance companies (other than Surplus Lines) are also required to give
insureds 45-days advance notice of the renewal premiums.
◉ Conditions: Changes. Answer: The policy may be changed only by
endorsement, agreed to between the company and the first named
insured in the policy.
◉ Conditions: Transfer. Answer: The insured may not transfer any rights
or duties under the policy except with written consent of the company.
Rights and duties are automatically transferred if the insured dies, first to
one who has legal temporary custody of the property and then to the
legal representative.
, ◉ Conditions:Concealment, Misrepresentation, Fraud. Answer:
Coverage is declared to be void if, related to the coverage, the insured
engages in any fraud or intentionally conceals or misrepresents material
facts.
◉ Conditions: Control of Property. Answer: Protection for the insured is
not impaired by acts of others beyond the insured's direction and control.
If an act or neglect of the insured relates to one covered location, it does
not impair coverage for any other locations covered in the policy.
◉ Conditions: liberalization. Answer: The insured gets the benefit of any
broadened coverage if the company, within 45 days of inception, adopts
a form revision that is broader and without increase in premium.
◉ Conditions: Other Insurance. Answer: When there is other insurance
written on the same basis (same plan, term, conditions and provisions)
the policy prorates with such other policy(s). If there is other insurance
which covers the same loss but is subject to a different plan or
provisions, the policy is excess over such other policy(s), whether
collectible or not.
◉ Conditions:Policy Term and Territory. Answer: policy covers only
loss which commences during the policy period and only in the United
States, territories and possessions, Puerto Rico and Canada.
