FLORIDA HEALTH INSUARANCE 2-20 / NEWEST
INSURANCE FLORIDA 1-20 PRACTICE EXAM (A NEW
UPDATED VERSION) ACTUAL TEST QUESTIONS AND
CORRECT VERIFIED ANSWERS |ALREADY GRADED A+
(BRAND NEW!!)
Abandonment Clause - ANSWER: often contained in a p/c policy stating that the
insured cannot abandon damaged property to the (dump on) insurer and demand
reimbursement for the full value.
Accident - ANSWER: Sudden fortuitous event
Accounts Receivable Coverage Form - ANSWER: Inland Marine Coverage form which
insures against loss the insured suffers becasuse of an inability to collect from
customers when AR records are damaged.
Actual Cash Value (ACV) - ANSWER: Current cost to replace and item of property at
the time of loss, less an allowance for depreciation. Most basic way to determine
amount of reimbursement for a loss (Replacement Costs -Depreciation).
Admitted Aircraft Liability Coverage - ANSWER: Coverage sometimes written in
conjunction w/ Aircraft Passenger Liability which can provide reimbursement for
death of dismemberment.
Aggregate Limit - ANSWER: Type of policy limit found in liability policies which limits
coverage to a specified total amount for all losses occurring within the policy period.
Agreed Value - ANSWER: Written with property insurance policies. It waives the
coinsurance clause and requires the insured to carry insurance equal to at least 80%
of a signed statement of values filed with the company
Aircraft Hull Insurance - ANSWER: Physical damage insurance provided to cover the
loss or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Liability Insurance - ANSWER: Coverage written to cover public and
passenger liability and property damage
Airport and Air Meet Liability - ANSWER: Coverage that provides protection to
airports for bodily injury and property damage liability
Allied Lines - ANSWER: Property coverages which are closely associated and
frequently sold w/ fire ins. i.e. Dwelling, Earthquake, Sprinkler ins.
,All Risk Insurance - ANSWER: Better known as "open perils" insurance. Ins protecting
insured from loss arising from any peril other than those perils specifically excluded
by name. Opposite of Named Perils
Annual Transit Policy - ANSWER: Inland Marine transportation insurance which
insures a property owner for goods being transported.
Appraisal Clause - ANSWER: provides an appraisal procedure when the insured and
the insurer are in disagreement regarding the amount of the loss. Insured and
insurer each choose and appraiser, who, failing to agree, select and umpire.
Assignment Clause - ANSWER: Condition in policy that specifies that transferring the
policy to another is not valid unless the company consent in writing.
Automobile Mechanical Breakdown Insurance - ANSWER: Coverage designed to
indemnify against the costs of mechanical failures or breakdowns not covered under
the manufacturer's warranty.
Avaition Insurance - ANSWER: provides both liability and physical damage coverage
for aircraft. aka Aircraft Hull Insurance. Liablity coverage available seperately for
hangarkeepers and airport owners.
Bail Bond - ANSWER: Surey bond that guarantees the principal will appear in criminal
proceedings.
Bailee - ANSWER: One who has temporary custody of property belonging to another.
i.e. dry cleaners
Bailee's Policy - ANSWER: Inland Marine ins. obtained by bailee, to cover loss or
damage to customers' property in the bailee's custody, without regard to liability.
Barratry - 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 hijacking,
abandonment and embezzlement of cargo.
Bid Bonds - ANSWER: Type of K bond which guarantees the obligee that if a
contractor's bid is accepted, the contracor will provide the required performance
bond.
Binder - ANSWER: Oral or written statment providing immediate insurance
protection, valid for a specified period. Desined to provide temporary coverage until
a policy can be issued or denied.
Blanket Insurance - ANSWER: Insurance where a single amount of insurance applies
to two or more coverage items which are subject to specific ratings. May result in
coverage advantages to the insured.
, Blue Sky Bond - ANSWER: Surey bond required of investment companies,
guaranteeing against misrepresentations of securities and defrauding the public.
Bodily Injury - ANSWER: Usually defined to include physical harm, sickness, disease,
or death resulting from any of these.
Boiler and Machinery Coverage Form - ANSWER: covers the insured against loss
(liability and physical damage) arising out of the use of steam boilers or other
machinery. Part of a Commercial Package Policy.
Builder's Risk Coverage Form - ANSWER: provides coverage for buildings under
construction as well as equipment to service the building, owned materials and
supplies, and temporary structures used in construction. Part of the Commercial
Propery portion of the Commericial Pakage Policy.
Building and Personal Property Coverage Form - ANSWER: primary coverage form of
the Commercial Package policy's Commercial Propery Coverage part. Covers a
business's buildings, business personal property and personal property of others.
Burglary - ANSWER: defined in Crime insurance policies, the taking of property by a
person unlawfully entering or leaving the premises, as evidence by visible signs of
forced entry or exit.
Business Auto Coverage Form - ANSWER: form which is part of the Commercial Auto
Coverages and is designed to cover the auto exposures of business, other than
truckers or garages.
Business Income Form - ANSWER: coverage which reimburses the insured for loss of
earning due to an interruption in operations caused by a covered peril: available w/
or w/out extra expense. One of the Commercial Property forms available as part of
the Commercial Package Policy.
Business Pursuits Endorsement - ANSWER: endorsement to Homeowners policy
which provides coverage against occupational liabilities for those who are employed
by others.
Businessowner's Policy - ANSWER: multi-peril, multi-line package policy designed to
provide broad property and casualty coverages for small businesses.
Camera and Musical Instrument Dealers Form - ANSWER: all risk Inland Marine
dealers form that covers stocks of merchandise at the insured's premises, in transit,
away in an employee's custody or elsewhere.
Cargo Liability Coverage - ANSWER: Protects against legal liability for loss or damage
to cargo or baggage. May be part of an Ocean Marine or Aviation Policy
INSURANCE FLORIDA 1-20 PRACTICE EXAM (A NEW
UPDATED VERSION) ACTUAL TEST QUESTIONS AND
CORRECT VERIFIED ANSWERS |ALREADY GRADED A+
(BRAND NEW!!)
Abandonment Clause - ANSWER: often contained in a p/c policy stating that the
insured cannot abandon damaged property to the (dump on) insurer and demand
reimbursement for the full value.
Accident - ANSWER: Sudden fortuitous event
Accounts Receivable Coverage Form - ANSWER: Inland Marine Coverage form which
insures against loss the insured suffers becasuse of an inability to collect from
customers when AR records are damaged.
Actual Cash Value (ACV) - ANSWER: Current cost to replace and item of property at
the time of loss, less an allowance for depreciation. Most basic way to determine
amount of reimbursement for a loss (Replacement Costs -Depreciation).
Admitted Aircraft Liability Coverage - ANSWER: Coverage sometimes written in
conjunction w/ Aircraft Passenger Liability which can provide reimbursement for
death of dismemberment.
Aggregate Limit - ANSWER: Type of policy limit found in liability policies which limits
coverage to a specified total amount for all losses occurring within the policy period.
Agreed Value - ANSWER: Written with property insurance policies. It waives the
coinsurance clause and requires the insured to carry insurance equal to at least 80%
of a signed statement of values filed with the company
Aircraft Hull Insurance - ANSWER: Physical damage insurance provided to cover the
loss or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Liability Insurance - ANSWER: Coverage written to cover public and
passenger liability and property damage
Airport and Air Meet Liability - ANSWER: Coverage that provides protection to
airports for bodily injury and property damage liability
Allied Lines - ANSWER: Property coverages which are closely associated and
frequently sold w/ fire ins. i.e. Dwelling, Earthquake, Sprinkler ins.
,All Risk Insurance - ANSWER: Better known as "open perils" insurance. Ins protecting
insured from loss arising from any peril other than those perils specifically excluded
by name. Opposite of Named Perils
Annual Transit Policy - ANSWER: Inland Marine transportation insurance which
insures a property owner for goods being transported.
Appraisal Clause - ANSWER: provides an appraisal procedure when the insured and
the insurer are in disagreement regarding the amount of the loss. Insured and
insurer each choose and appraiser, who, failing to agree, select and umpire.
Assignment Clause - ANSWER: Condition in policy that specifies that transferring the
policy to another is not valid unless the company consent in writing.
Automobile Mechanical Breakdown Insurance - ANSWER: Coverage designed to
indemnify against the costs of mechanical failures or breakdowns not covered under
the manufacturer's warranty.
Avaition Insurance - ANSWER: provides both liability and physical damage coverage
for aircraft. aka Aircraft Hull Insurance. Liablity coverage available seperately for
hangarkeepers and airport owners.
Bail Bond - ANSWER: Surey bond that guarantees the principal will appear in criminal
proceedings.
Bailee - ANSWER: One who has temporary custody of property belonging to another.
i.e. dry cleaners
Bailee's Policy - ANSWER: Inland Marine ins. obtained by bailee, to cover loss or
damage to customers' property in the bailee's custody, without regard to liability.
Barratry - 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 hijacking,
abandonment and embezzlement of cargo.
Bid Bonds - ANSWER: Type of K bond which guarantees the obligee that if a
contractor's bid is accepted, the contracor will provide the required performance
bond.
Binder - ANSWER: Oral or written statment providing immediate insurance
protection, valid for a specified period. Desined to provide temporary coverage until
a policy can be issued or denied.
Blanket Insurance - ANSWER: Insurance where a single amount of insurance applies
to two or more coverage items which are subject to specific ratings. May result in
coverage advantages to the insured.
, Blue Sky Bond - ANSWER: Surey bond required of investment companies,
guaranteeing against misrepresentations of securities and defrauding the public.
Bodily Injury - ANSWER: Usually defined to include physical harm, sickness, disease,
or death resulting from any of these.
Boiler and Machinery Coverage Form - ANSWER: covers the insured against loss
(liability and physical damage) arising out of the use of steam boilers or other
machinery. Part of a Commercial Package Policy.
Builder's Risk Coverage Form - ANSWER: provides coverage for buildings under
construction as well as equipment to service the building, owned materials and
supplies, and temporary structures used in construction. Part of the Commercial
Propery portion of the Commericial Pakage Policy.
Building and Personal Property Coverage Form - ANSWER: primary coverage form of
the Commercial Package policy's Commercial Propery Coverage part. Covers a
business's buildings, business personal property and personal property of others.
Burglary - ANSWER: defined in Crime insurance policies, the taking of property by a
person unlawfully entering or leaving the premises, as evidence by visible signs of
forced entry or exit.
Business Auto Coverage Form - ANSWER: form which is part of the Commercial Auto
Coverages and is designed to cover the auto exposures of business, other than
truckers or garages.
Business Income Form - ANSWER: coverage which reimburses the insured for loss of
earning due to an interruption in operations caused by a covered peril: available w/
or w/out extra expense. One of the Commercial Property forms available as part of
the Commercial Package Policy.
Business Pursuits Endorsement - ANSWER: endorsement to Homeowners policy
which provides coverage against occupational liabilities for those who are employed
by others.
Businessowner's Policy - ANSWER: multi-peril, multi-line package policy designed to
provide broad property and casualty coverages for small businesses.
Camera and Musical Instrument Dealers Form - ANSWER: all risk Inland Marine
dealers form that covers stocks of merchandise at the insured's premises, in transit,
away in an employee's custody or elsewhere.
Cargo Liability Coverage - ANSWER: Protects against legal liability for loss or damage
to cargo or baggage. May be part of an Ocean Marine or Aviation Policy
