Florida Property & Casualty Insurance Exam Prep | 500+ Practice Questions | Tested and Verified for Guaranteed Success | Graded A+

Florida Property & Casualty Insurance Exam Prep | 500+ Practice Questions | Tested and Verified for Guaranteed Success | Graded A+ Florida Automobile Joint Underwriting Association: - ansA market source for persons who are unable to purchase Auto insurance through normal channels. It is a syndicate of all licensed companies in Florida that write Auto insurance, with direct operations performed in their behalf by a group of servicing carriers. Forgery or Alteration Coverage Form: - ansA Commercial Crime form that covers loss from forgery or alteration of checks, drafts, promissory notes or similar instruments. Franchise Bond: - ansA Surety bond that may be required by a public body when it awards a franchise. Franchise Deductible: - ansA deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid is paid in full. Fraud: - ansA false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy. Freight Coverage: - ansAn Ocean Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid. Garage Coverage Form: - ansA coverage form that is part of the Commercial Auto Coverage Part and which provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc). Includes coverage for liability, physical damage and garagekeepers losses arising out of owned, non-owned and hired autos. Garagekeepers Liability: - ansA coverage that is part of the Garage coverage form. Covers a garage risk's legal liability for customer's autos in the care, custody or control of the garage. At the insured's option, can also apply without regard to fault, for an additional premium. General Average: - ansAn Ocean Marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison). Each party shares in the loss in proportion to their total interest in property being transported. General Liability: - ansA category of insurance that includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability. Grace Period: - ansIn Health Insurance, a period during which the policy will remain in force, if unpaid by the premium due date. Florida law specifies the required length of the grace period. Guaranteed Renewable: - ansA Health insurance policy provision that states that the insurer must renew the policy to a certain age. While the company cannot fail to renew the policy until the specified age, it can increase the premium. Hangarkeepers Liability: - ansA form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping. Hazard: - ansSomething that increases the chance of loss. For instance, faulty wiring is a hazard because it increases the chance of a fire loss. Health Insurance: - ansInsurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting in sickness, and every insurance appertaining thereto. Health Maintenance Organization (HMO): - ansA noninsurance alternative to dealing with the risks of health care costs. An HMO provides comprehensive health services to its members for prepaid fixed fee, equivalent to an insurance premium. Homeowners Policy: - ansA personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degrees of protection. Hospital Indemnity Insurance: - ansHealth insurance that pays a flat amount per day of hospitalization, regardless of expenses or other insurance. Its primary purpose is to supplement other coverage that may be inadequate due to rising costs. Hospitalization Expense Insurance: - ansHealth insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies, and related items. Hull Insurance: - ansIn Ocean Marine or Aviation insurance against physical damage to plane or ship. Improvements and Betterments: - ansPermanent alterations that a tenant makes to the rented property that will not be removed when the tenant leaves. Indemnitor: - ansIn a Surety agreement, one who agrees to reimburse the surety for any loss it may suffer from having bonded the principal. Indemnity: - ansA principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse. Indemnity Bond: - ansA License bond that holds the government harmless from injuries or damages caused by the principal's activities. Indirect Loss: - ansLoss that is a result or consequence of a direct loss. Inflation Guard: - ansA property insurance option that provides that the policy limits will increase a certain percentage at regular intervals, for instance, annually. Inland Marine Insurance: - ansA form of insurance originally designed as an extension of Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property. Insolvency Bond: - ansFiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors. Installation Form: - ansAn uncontrolled Inland Marine form that covers property in transit and at premises where an installation is to be made. Installment Sales Floaters: - ansAn Inland Marine form that covers property sold on an installment basis. Instrumentalities of Transportation and Communication - ansA category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, ect. Insurable Interest: - ansAny actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance from loss or destruction or financial damage or impairment. A claim may be paid only when an insurable interest exists. Insurance: - ansA contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. Insurance Service Office (ISO): - ansAn organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also develops standardized forms. Insuring Agreement: - ansThe section of an insurance policy that states which losses will be indemnified, what property is covered, which perils are insured against. Jettison: - ansA voluntary action to rid the ship of cargo in order to prevent further damage or peril. Jewelers Block: - ansAn all risk Inland Marine form for retail jewelers that covers the insured's stock in trade and the property of others, while at the insured's premises, in transit and elsewhere. Judicial Bond and Bonds Required By Courts: - ansSee Fiduciary Bonds and Court Bonds. Labor and Materials Bond: - ansSee Payment Bond. The FAJU The Discovery Period is: - ans12 months or within 60 days after its expiration Which of the following is NOT true of the Supplemental Extended Reporting Period? - ansprovides for one new aggregate limit The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is: - ans25k Which of the following is NOT covered under an Aircraft Liability Policy? - anscargo liability Under a Boiler and Machinery Coverage Form, the insurer will defend the insured against claims or suits arising out of covered occurrences. What is the dollar limit for this coverage? - ansno limit Law of Large Numbers: - ansThe statistical theory that states the larger the number of similar exposure units the more predictable and accurate the estimate of expected losses. Abandonment Clause: - ansA clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to reimbursed for its full value. Absolute Liability: - ansLiability that does not require proving negligence. Accident: - ansA sudden fortuitous event. Accounts Receivable Coverage Form: - ansAn Inland Marine Coverage form that insures against loss the insured suffers because of an inability to collect from customers when accounts receivable records are damaged. Actual Cash Value (ACV): - ansThe cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost Depreciation). Admitted Aircraft Liability Coverage: - ansA coverage sometimes written in conjunction with Aircraft Passenger Liability which can provide reimbursement for death or dismemberment without requiring legal action. Affiliated Party: - ansAny person who directs or participates in the conduct of affairs of a licensee and who is an officer, stockholder, owner or other person who directly controls the company. Aggregate Limit - ansA type of policy limit found in Liability policies that limits coverage to a specified total amount for all losses occurring within the policy period. Agreed Value: - ansWritten 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: - ansPhysical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both. Aircraft Liability Insurance: - ansCoverage written to cover public and passenger liability and property damage liability. Airport and Air Meet Liability - ansCoverage that provides protection to airports for bodily injury and property damage liability. Allied Lines: - ansProperty coverages that are closely associated and frequently sold with fire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, ect. All Risk Insurance: - ansBetter known as "open perils" insurance, it is insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with Named Peril insurance, which names the peril or perils insured against. Annual Transit Policy: - ansInland Marine transportation insurance which insures a property owner for goods being transported. Appraisal Clause: - ansClause that 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, selects an umpire. Agreement of any two of the three will be decisive. Assignment Clause: - ansA condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents it in writing. Automobile Mechanical Breakdown Insurance: - ansCoverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's warranty. Aviation Insurance: - ansInsurance that provides both liability and physical damage coverage for an aircraft. Liability coverage available separably for hangar keepers and airport owners or operators. Bail Bond: - ansSurety bond that guarantees that the principle will appear in a criminal proceeding. Bailee: - ansOne who has temporary custody of property belonging to another. Bailees Policy: - ansInland Marine insurance obtained by a bailee, to cover loss or damage to customer's property in the bailee's custody, without regard to liability. Barratry: - ansIllegal 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 the cargo. Bid Bonds: - ansA type of Contract bond, which guarantees the obligee that if a contractor's bid is accepted, the contractor will provide the required Performance bond. Binder: - ansAn oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied. Blanket Insurance: - ansInsurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Also a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage. Blue Sky Bond: - ansSurety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public. Bodily Injury: - ansUsually defined to include physical harm, sickness, disease, or death resulting from any of these. Boiler and Machinery Coverage Form: - ansInsurance that covers the insured against loss, both liability and physical damage, arising out of the use of steam boilers or other machinery Builders Risk Coverage Form: - ansInsurance that 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 Property portion of the Commercial Package Policy. Building and Personal Property Coverage Form: - ansThe primary coverage form of the Commercial Package policy's Commercial Property Coverage part. Covers a business's buildings, business personal property and the personal property of others. Burglary: - ansAs it is defined in Crime Insurance Policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit. Business Auto Coverage Form: - ansA form that is a part of the Commercial Auto coverages and is designed to cover the auto exposures of businesses, other than truckers or garages. Business Income Form: - ansA coverage that reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package Policy. Business Pursuits Endorsement: - ansAn endorsement to a Homeowners Policy that provides coverage against occupational liabilities for those who are employed by others. Businessowners Policy: - ansA multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses. Camera and Musical Instrument Dealers Form: - ansAn 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 - ansProtects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy. Casualty Insurance: - ansA line of insurance which historically has included a wide variety of unrelated coverages other than Life and Health. One important coverage in the casualty line is Liability. Casualty also includes Aviation, Auto, Boiler and Machinery, Crime, Workers Compensation and Surety Bonds. Causes of Loss Form: - ansA form that is a part of the Commercial Property Coverage Part of the Commercial Package Policy. It specifics what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to Special. An earthquake form is also available. Claim: - ansThe assertion of a legal right against an insurer that carries with it a demand for appropriate relief. Claims-Made Form: - ansA liability policy in which the insurer pays only those claims arising during the policy period (as opposed to those claims arising after the policy period is over, regardless of whether the incident took place during the policy period). Coinsurance Clause: - ansA clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of the loss. Collision: - ansA type of physical damage insurance that covers loss due to the insureds object striking another object. Collision may also include upset of the insured object. Commercial Articles Coverage Form: - ansA simplified, easy-to-read Commercial Package Policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime/Employee Dishonesty, Boiler and Machinery, Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and Employment-Related Practices Liability. Forms may be used in the package policy or may be used to issue monoline policies. Common Policy Conditions: - ansA form containing conditions that apply to all coverages issued under the Commercial Package Policy program. Comprehensive Coverage: - ansIn automobile insurance, a broad physical damage coverage which covers all property losses except collision and those perils or property which are specifically excluded. Computer Fraud Coverage Form: - ansA form that is a part of the Commercial Computer Crime Coverage part of the Commercial Package Policy. It covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premises. Concealment: - ansThe withholding of a material fact from the insurance company. May void the policy. Conditionally Renewable: - ansA type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy. Conditions: - ansThe portion of an insurance contract that sets forth the rights and duties of the Insured and the insurance company. Condominium Association Coverage Form: - ansA part of the Commercial Property Coverage part of the Commercial Package Policy, which covers the buildings in a condominium complex (not the unit-owner's personal property). Condominium Commercial Unit-Owners Coverage Form - ansA part of the commercial property coverage part of the commercial package policy which covers the unit owners business personal property. Consequential Damages: - ansDamage that occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, ect. Not generally covered under property policies unless specified. Conservation Bond: - ansFiduciary bond for those appointed to manage and preserve property other than estates of decedents. Constructive Total Loss: - ansIn Ocean Marine insurance, a loss that occurs when property is not completely destroyed but the cost to salvage or repair the property would exceed its value Contingent Liability: - ansLiability that an insured person or business incurs because of the actions of others (family or employees). Also called Vicarious Liability. Contract: - ansA legal agreement between two parties promising a certain performance in exchange for a certain consideration. Contract Bond: - ansA category of Surety bonds, which guarantees the fulfillment of contractual obligations; includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds and Supply Contract bonds. Contractors Equipment Coverage Form: - ansPart of the Inland Marine Coverage part of the Commercial Package Policy. It covers various types of contractors mobile equipment needed to conduct business. Contractual Liability: - ansProvides coverage against liability arising out of an insured's contractual obligations. Excluded in the Commercial General Liability Policy, subject to several exceptions. Controlled Lines: - ansClasses of Inland Marine coverage for which standardized forms have been prepared as part of the Commercial Package Policy. Contrasts uncontrolled lines. Court Bonds: - ansA category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeal, bail bonds, ect. (Includes Bail bonds, Litigation bonds) Coverage Trigger: - ansThe event which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage which occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is BI or PD which occurs on or after the retroactive date and for which claim is made during the policy period.