Florida Insurance 20-44 Exam Study v v v v
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Florida Insurance 20-44 Exam Study Questions
And Answers
1. insurance: is a contract whereby one undertakes to indem-
v v v v v v v v
vnify another or pay or allow a specified amount or a determinable benefit upon deter
v v v v v v v v v v v v v v
minable contingencies. v
2. casualty: v
insurance is insurance which pays on behalf of the insured's legal liability.
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3. liberalization: The v v
provision broadens an insured's coverage without an increase in premium when the
v v v v v v v v v v v
insurer has adopted a generic global policy revision.
v v v v v v v v
4. severability: " of Interest" means insurance applies sepa- v v v v v v
vrately to each insured. v v v
5. policy: A v v
is a written contract of or a written agreement for or affecting insurance.
v v v v v v v v v v v v
6. $40,000: A homeowner with a Homeowners policy with $500,000 of coverage and a
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2% windstorm deductible suffers a windstorm loss of $50,000 -
v v v v v v v v v
vhow much will the insured collect on their claim?
v v v v v v v v
7. pro-
rata: The "Other Policy" provision which apportions responsibility with each compan
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y paying in proportion to the limit it bears in relation to all limits.
v v v v v v v v v v v v v
8. physical hazard: A physical characteristic which increase the probability and s
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everity of loss is a.... v v v v
9. $200,000: A private passenger automobile policy has a single bodily injury liability li
v v v v v v v v v v v v
mit of $500,000 - the insured is involved in an at-
v v v v v v v v v v
fault accident and four individuals in the other car have injuries of $50,000 each -
v v v v v v v v v v v v v v
how much will the policy pay in total?
v v v v v v v v
10. indirect: An example of an v v v v v
loss is the loss of use of tangible property.
v v v v v v v v
11. $1,550: An insured has a $250 Collision deductible on her auto policy -
v v v v v v v v v v v v
vthe insured hit a large oak tree in a single vehicle accident resulting in $1,800 in
v v v v v v v v v v v v v v v v
damages - how much will the insurance company pay the insured?
v v v v v v v v v v
1v/v41
, Florida Insurance 20-44 Exam Study
v v v v
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12. franchise: Which type of deductible specifies that no payment will be made until lo
v v v v v v v v v v v v v
ss equals or exceeds a prescribed amount; then the loss is paid in full.
v v v v v v v v v v v v v
13. concealment: Bill Williams, your insured, has failed to reveal some relevant facts w
v v v v v v v v v v v v
hen he is applying for insurance. What is this is considered?
v v v v v v v v v v
14. 60: No notice of cancellation or non-
v v v v v v
renewal of a binder is required unless a binder exceeds how many days?
v v v v v v v v v v v v
15. insured: Insurance contracts are considered Contracts of Adhesion. Ambigui-
v v v v v v v v
vties in the contract are resolved in favor of the
v v v v . v v v v v v
16. proximate cause: What is the fundamental doctrine in property insurance that h
v v v v v v v v v v v
olds that when there is an unbroken connection between an occurrence and damag
v v v v v v v v v v v v
e that grows out of the occurrence, then the resulting damage is a part of the occurre
v v v v v v v v v v v v v v v v
nce.
2v/v41
, Florida Insurance 20-44 Exam Study v v v v
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17. conditional: Property and liability insurance policies are said to be v v v v v v v v v
contracts because the obligation of the insurer to perform may be c v v v v v v v v v v v
onditioned upon the insured satisfying certain conditions.
v v v v v v
18. negligence: Ready Ralph Reiger, your insured, has not exercised the degree of c
v v v v v v v v v v v v
are to protect his neighbor from injury on his property; this is commonly referred to as
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.
19. loss: Risk means the chance of financial
v v . v v v v v
20. amount of loss: The appraisal condition is only used to resolve issues of?
v v v v v v v v v v v v
21. depreciation: The basic definition of Actual Cash Value is "current cost to re v v v v v v v v v v v v
place" less an allowance for
v v v . v v
22. $250,000: What amount will be paid to an insured who has an insurance policy wi
v v v v v v v v v v v v v v
th separate limits of $250,000 per building on two buildings and a $275,000 loss occ
v v v v v v v v v v v v v v
urs to one of the buildings?
v v v v v
23. probability: Physical, Moral, and Morale Hazards increase the v v v v v v v
and/or severity of loss? v v v
24. Pure Risk: only a chance of loss
v v v v v v
25. Speculative Risk: Chance of loss or gain v v v v v v
26. Law of Large Numbers: A principle stating that the larger the number of similar e
v v v v v v v v v v v v v v
xposure units considered, the more closely the losses reported will equal the underly
v v v v v v v v v v v v
ing probability of loss.
v v v
27. endorsement: v
is the modification of original policy, usually adds coverage or conforms to State r
v v v v v v v v v v v v v
equirement.
28. Binders: v
Precede Policy Issuance; coverage is "put into effect" PRIOR to issuance of p
v v v v v v v v v v v v
olicy.
29. oral or written: Binders enable immediate change and can be
v v v v v v v v v v
30. 60 days: Company does not have to give notice of cancellation or non-
v v v v v v v v v v v v
renewal unless Binder exceeds
v v v v
31. Personal contracts: Insurance contracts are v v v v v
that cover losses sustained by the person(s), focus is on the person(s).
v v v v v v v v v v v
32. Conditional Contracts: Insured has to satisfy certain conditions in order for the In
v v v v v v v v v v v v
surer to preform duties
v v v
33. Contract of Adhesion: Insured cannot negotiate the terms or language of the c
v v v v v v v v v v v v
ontract in a v v . v
34. economic interest: Insurable Interest must exist before a policy will pay for a lo
v v v v v v v v v v v v v
ss and is the
v v v in the preservation of the subject.
v v v v v v
35. Subrogation: Sally's car has been damaged by fault of Paul, her damages total 2 v v v v v v v v v v v v v
50,000. Sally files a claim with her own insurance with a split limit of 200/300, while
v v v v v v v v v v v v v v v
3v/v41
, Florida Insurance 20-44 Exam Study v v v v
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Paul has a single limit of $100,000.
v v v v v v
Sally gains $200,000 and nothing from Paul, this is called
v v . v v v v v v v v
36. Direct Loss: Physical harm to tangible property is v . v v v v v v v
37. Indirect: v
Loss is the economic loss which flows as a consequence of Direct loss.
v v v v v v v v v v v v
38. Loans and Leases: Lender Interest Insurance also protects the collateral of c
v v v v v v v v v v v
reditors who have provided v v v v
to an insured such as car loans, mortgages, etc.
v v v v v v v v
39. Coininsurance: In Florida, insured must insure property to 80% of total value or v v v v v v v v v v v v
vhigher or suffer a penalty of loss. v v v v v v
40. 5 years: Statute of limitation is
v for a breach of contract
v v v v v v v v v
41. 4 years: Statute of limitation is
v for Tort v v v v v v
42. 3 years: Statute of limitation is
v v v v v v
for an Insurance claim against Insurance company
v v v v v v
43. 2 years: Statute of limitation is
v for a wrongful death claim
v v v v v v v v v
44. Pro-Rata: A - v v
are when two insurances happen to cover the same occurrence and ,must sp
v v v v v v v v v v v v
lit the coverage for the shared Insured.
v v v v v v
45. Moral: A v v
Hazard is a conscious mental attitude which increase the probability or severity o
v v v v v v v v v v v v
f loss. v
46. unconscious: Morale Hazard is the v v v v v
mental attitude which increase the probability or severity of loss
v v v v v v v v v
47. abrupt: Catastrophic ground cover collapse is the geological activity resulting in a
v v v v v v v v v v v
n v collapse of the ground. v v v
48. 72: The National Weather Service (NWS) categorizes storms through its Nation-
v v v v v v v v v v
val Hurricane Center as a hurricane which includes the time of a warning/watch all th
v v v v v v v v v v v v v v
e way through to
v hours after the NWS terminates the warning.
v v v v v v v v v
49. dollar: Any insurance policy with a percentage hurricane deductible must c
v v v v v v v v v v
ompute and display on the Declarations Page the hurricane deductible in
v v v v v v v v v v
terms.
50. mold: The "fungi" peril is most commonly referred to as
v v . v v v v v v v v
51. excess: The Loss Assessment coverage in the HO-6 policy is statutorily
v v v v v v v v v v
over any other applicable/collectible insurance. v v v v
52. excludes: Liability coverage in the Homeowners policy specifically v v v v v v v
owned inboard or inboard-outboard watercraft. v v v v
53. renewal: When can a Hurricane Deductible be changed in an existing policy?
v v v v v v v v v v v
54. sales tax: If an insured is paid for a total loss on an insured vehicle the claims pa
v v v v v v v v v v v v v v v v v
yment must be for the cost to replace the totaled vehicle plus the applicable
v v v v v v v v v v v v v
.
4v/v41
Studyvonlinevatvhttps://quizlet.com/_a25yzv
Florida Insurance 20-44 Exam Study Questions
And Answers
1. insurance: is a contract whereby one undertakes to indem-
v v v v v v v v
vnify another or pay or allow a specified amount or a determinable benefit upon deter
v v v v v v v v v v v v v v
minable contingencies. v
2. casualty: v
insurance is insurance which pays on behalf of the insured's legal liability.
v v v v v v v v v v v
3. liberalization: The v v
provision broadens an insured's coverage without an increase in premium when the
v v v v v v v v v v v
insurer has adopted a generic global policy revision.
v v v v v v v v
4. severability: " of Interest" means insurance applies sepa- v v v v v v
vrately to each insured. v v v
5. policy: A v v
is a written contract of or a written agreement for or affecting insurance.
v v v v v v v v v v v v
6. $40,000: A homeowner with a Homeowners policy with $500,000 of coverage and a
v v v v v v v v v v v v v
2% windstorm deductible suffers a windstorm loss of $50,000 -
v v v v v v v v v
vhow much will the insured collect on their claim?
v v v v v v v v
7. pro-
rata: The "Other Policy" provision which apportions responsibility with each compan
v v v v v v v v v v
y paying in proportion to the limit it bears in relation to all limits.
v v v v v v v v v v v v v
8. physical hazard: A physical characteristic which increase the probability and s
v v v v v v v v v v
everity of loss is a.... v v v v
9. $200,000: A private passenger automobile policy has a single bodily injury liability li
v v v v v v v v v v v v
mit of $500,000 - the insured is involved in an at-
v v v v v v v v v v
fault accident and four individuals in the other car have injuries of $50,000 each -
v v v v v v v v v v v v v v
how much will the policy pay in total?
v v v v v v v v
10. indirect: An example of an v v v v v
loss is the loss of use of tangible property.
v v v v v v v v
11. $1,550: An insured has a $250 Collision deductible on her auto policy -
v v v v v v v v v v v v
vthe insured hit a large oak tree in a single vehicle accident resulting in $1,800 in
v v v v v v v v v v v v v v v v
damages - how much will the insurance company pay the insured?
v v v v v v v v v v
1v/v41
, Florida Insurance 20-44 Exam Study
v v v v
Studyvonlinevatvhttps://quizlet.com/_a25yzv
12. franchise: Which type of deductible specifies that no payment will be made until lo
v v v v v v v v v v v v v
ss equals or exceeds a prescribed amount; then the loss is paid in full.
v v v v v v v v v v v v v
13. concealment: Bill Williams, your insured, has failed to reveal some relevant facts w
v v v v v v v v v v v v
hen he is applying for insurance. What is this is considered?
v v v v v v v v v v
14. 60: No notice of cancellation or non-
v v v v v v
renewal of a binder is required unless a binder exceeds how many days?
v v v v v v v v v v v v
15. insured: Insurance contracts are considered Contracts of Adhesion. Ambigui-
v v v v v v v v
vties in the contract are resolved in favor of the
v v v v . v v v v v v
16. proximate cause: What is the fundamental doctrine in property insurance that h
v v v v v v v v v v v
olds that when there is an unbroken connection between an occurrence and damag
v v v v v v v v v v v v
e that grows out of the occurrence, then the resulting damage is a part of the occurre
v v v v v v v v v v v v v v v v
nce.
2v/v41
, Florida Insurance 20-44 Exam Study v v v v
Studyvonlinevatvhttps://quizlet.com/_a25yzv
17. conditional: Property and liability insurance policies are said to be v v v v v v v v v
contracts because the obligation of the insurer to perform may be c v v v v v v v v v v v
onditioned upon the insured satisfying certain conditions.
v v v v v v
18. negligence: Ready Ralph Reiger, your insured, has not exercised the degree of c
v v v v v v v v v v v v
are to protect his neighbor from injury on his property; this is commonly referred to as
v v v v v v v v v v v v v v v v
.
19. loss: Risk means the chance of financial
v v . v v v v v
20. amount of loss: The appraisal condition is only used to resolve issues of?
v v v v v v v v v v v v
21. depreciation: The basic definition of Actual Cash Value is "current cost to re v v v v v v v v v v v v
place" less an allowance for
v v v . v v
22. $250,000: What amount will be paid to an insured who has an insurance policy wi
v v v v v v v v v v v v v v
th separate limits of $250,000 per building on two buildings and a $275,000 loss occ
v v v v v v v v v v v v v v
urs to one of the buildings?
v v v v v
23. probability: Physical, Moral, and Morale Hazards increase the v v v v v v v
and/or severity of loss? v v v
24. Pure Risk: only a chance of loss
v v v v v v
25. Speculative Risk: Chance of loss or gain v v v v v v
26. Law of Large Numbers: A principle stating that the larger the number of similar e
v v v v v v v v v v v v v v
xposure units considered, the more closely the losses reported will equal the underly
v v v v v v v v v v v v
ing probability of loss.
v v v
27. endorsement: v
is the modification of original policy, usually adds coverage or conforms to State r
v v v v v v v v v v v v v
equirement.
28. Binders: v
Precede Policy Issuance; coverage is "put into effect" PRIOR to issuance of p
v v v v v v v v v v v v
olicy.
29. oral or written: Binders enable immediate change and can be
v v v v v v v v v v
30. 60 days: Company does not have to give notice of cancellation or non-
v v v v v v v v v v v v
renewal unless Binder exceeds
v v v v
31. Personal contracts: Insurance contracts are v v v v v
that cover losses sustained by the person(s), focus is on the person(s).
v v v v v v v v v v v
32. Conditional Contracts: Insured has to satisfy certain conditions in order for the In
v v v v v v v v v v v v
surer to preform duties
v v v
33. Contract of Adhesion: Insured cannot negotiate the terms or language of the c
v v v v v v v v v v v v
ontract in a v v . v
34. economic interest: Insurable Interest must exist before a policy will pay for a lo
v v v v v v v v v v v v v
ss and is the
v v v in the preservation of the subject.
v v v v v v
35. Subrogation: Sally's car has been damaged by fault of Paul, her damages total 2 v v v v v v v v v v v v v
50,000. Sally files a claim with her own insurance with a split limit of 200/300, while
v v v v v v v v v v v v v v v
3v/v41
, Florida Insurance 20-44 Exam Study v v v v
Studyvonlinevatvhttps://quizlet.com/_a25yzv
Paul has a single limit of $100,000.
v v v v v v
Sally gains $200,000 and nothing from Paul, this is called
v v . v v v v v v v v
36. Direct Loss: Physical harm to tangible property is v . v v v v v v v
37. Indirect: v
Loss is the economic loss which flows as a consequence of Direct loss.
v v v v v v v v v v v v
38. Loans and Leases: Lender Interest Insurance also protects the collateral of c
v v v v v v v v v v v
reditors who have provided v v v v
to an insured such as car loans, mortgages, etc.
v v v v v v v v
39. Coininsurance: In Florida, insured must insure property to 80% of total value or v v v v v v v v v v v v
vhigher or suffer a penalty of loss. v v v v v v
40. 5 years: Statute of limitation is
v for a breach of contract
v v v v v v v v v
41. 4 years: Statute of limitation is
v for Tort v v v v v v
42. 3 years: Statute of limitation is
v v v v v v
for an Insurance claim against Insurance company
v v v v v v
43. 2 years: Statute of limitation is
v for a wrongful death claim
v v v v v v v v v
44. Pro-Rata: A - v v
are when two insurances happen to cover the same occurrence and ,must sp
v v v v v v v v v v v v
lit the coverage for the shared Insured.
v v v v v v
45. Moral: A v v
Hazard is a conscious mental attitude which increase the probability or severity o
v v v v v v v v v v v v
f loss. v
46. unconscious: Morale Hazard is the v v v v v
mental attitude which increase the probability or severity of loss
v v v v v v v v v
47. abrupt: Catastrophic ground cover collapse is the geological activity resulting in a
v v v v v v v v v v v
n v collapse of the ground. v v v
48. 72: The National Weather Service (NWS) categorizes storms through its Nation-
v v v v v v v v v v
val Hurricane Center as a hurricane which includes the time of a warning/watch all th
v v v v v v v v v v v v v v
e way through to
v hours after the NWS terminates the warning.
v v v v v v v v v
49. dollar: Any insurance policy with a percentage hurricane deductible must c
v v v v v v v v v v
ompute and display on the Declarations Page the hurricane deductible in
v v v v v v v v v v
terms.
50. mold: The "fungi" peril is most commonly referred to as
v v . v v v v v v v v
51. excess: The Loss Assessment coverage in the HO-6 policy is statutorily
v v v v v v v v v v
over any other applicable/collectible insurance. v v v v
52. excludes: Liability coverage in the Homeowners policy specifically v v v v v v v
owned inboard or inboard-outboard watercraft. v v v v
53. renewal: When can a Hurricane Deductible be changed in an existing policy?
v v v v v v v v v v v
54. sales tax: If an insured is paid for a total loss on an insured vehicle the claims pa
v v v v v v v v v v v v v v v v v
yment must be for the cost to replace the totaled vehicle plus the applicable
v v v v v v v v v v v v v
.
4v/v41
