FLORIDA 2-20 AGENTS LICENSE EXAM QUESTIONS AND DEFINITIONS

Admitted Aircraft Liability Coverage - ANSWER- A coverage sometimes written in conjunction with Aircraft Passenger Liability which can provide reimbursement for death or dismemberment without requiring legal action. Appraisal Clause - ANSWER- 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 - ANSWER- A condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents to it in writing. Barrartry - ANSWER- Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. this Ocean marine peril includes hijaking abandonment and embezzlement. Concealment - ANSWER- The withholding of known facts which, if material, can void a contract. contingent liability - ANSWER- Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability. exemplary damages - ANSWER- Damages awarded to make an example of the wrongdoer. fiduciary - ANSWER- A person or institution which has responsibility for the money, property or financial affairs of another. improvements and betterments - ANSWER- Permanent alterations which a tenant makes to the rented property which will not be removed when the tenant leaves. liberalization clause - ANSWER- A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened of loss - ANSWER- (1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy. punitive damages - ANSWER- damages that punish the wrong doer for antisocial actions, rather than compensating for loss. theatrical property coverage form - ANSWER- All risks Commercial Inland Marine coverage form that covers scenery, costumes and theatrical property for either a single production or blanket for all productions Unfair Insurance Trade Practices Act - ANSWER- a FL law describing certain practices that are prohibited, such as misrepresentations, denying claims without reasonable investigation, ect. waiver - ANSWER- the voluntary or intentional relinquishment of a known right. a waiver may be expressed or implied Mutual Insurance Company is owed by _________, while stock company is owned by _________. - ANSWER- Policy Holders, Shareholdsers the possibility that a loss might happen. - ANSWER- Risk Only the possibility of a loss. - ANSWER- Pure Risk Possibility of a loss or a gain. - ANSWER- Speculative Risk Does insurance deal with speculative risk? - ANSWER- no the more data you have, the more accurate your measurements and predictions will be when using data. used to predict frequency of losses and accurately set rates. - ANSWER- law of large numbers lessening the possibility of a loss. - ANSWER- Risk mitigation this is also known as risk reduction. - ANSWER- risk mitigation choosing not to do something. - ANSWER- risk avoidance collecting risk together. - ANSWER- risk pooling when you buy an insurance policy and you transfer some of your risk of financial loss to an insurance company. - ANSWER- risk transfer the cause of a loss. - ANSWER- peril