Florida 2-20 General Lines Insurance
1. 5 qualifications to 1. At least 18 years of age
become a Gener- 2. United States citizen or legal alien
al Lines agent 3. Bona fide resident of Florida
4. Place of business located in Florida
5. Not licensed for purpose of writing controlled business
2. Department of Fi- 1. Approves issuance of licenses to agents, CR, and adjusters
nancial Services 2. Supervisions of claims
(DFS) 3. Investigate charges of unethical conduct and take judicial actions
3. Office of Insur- 1. Examines the qualifications of the insurance companies doing business in FL
ance Regulation 2. Examines the financial conditions of companies
(OIR) 3. Approves forms, rules, and rates
4. Office of Finan- 1. Provides regulatory oversight to FL's financial providers
cial Regulation 2. Reports to the FL Service Commission
(OFR)
5. FL Surplus Lines 1. Oversees the surplus lines industry
Service Office 2. Reviews all surplus lines policies and documents
3. Collects surplus lines and taxes and fees
6. Risk Chance of financial loss
7. Policy Is a written contract for effecting insurance and includes clauses, riders, endorse-
ments, and papers which are apart of the contract
8. Insurance Is a contract where one undertakes to indemnify another or pay a specified amount
determined on contingencies
9. Binders Temporary insurance which can be made orally or written. The insurer shall give
5 days' prior notice of cancelling a binder unless the binder is replace by a policy.
No notice is required unless the binder exceeds 60 days.
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, Florida 2-20 General Lines Insurance
10. Property Insur- Where payment is made directly to the insured or other named interest
ance
11. Liability Insur- Where payment is made on behalf of the insured to another
ance
12. Contract of Adhe- Parties have unequal bargaining power such as the insured cannot negotiate the
sion terms of the insurer. Ambiguities found in the policy are usually found in favor of
the insured.
13. Indemnity Con- One party should be put back in the same financial condition they were before the
tract loss. Never profit from a loss.
14. Peril Contingency that may cause a loss
15. Hazard Condition that increases the likelihood of a loss from a covered peril.
16. Physical Hazard Physical Characteristics that increases the probability and severity of loss (i.e.
Ice-covered steps)
17. Moral Hazard Intentional Loss (i.e. Intentionally burning down your house to collect insurance
payout)
18. Morale Hazard Accident-prone or carelessness (i.e. Insured drives recklessly because that's what
insurance is for)
19. Proximate Cause A doctrine that states when there is an unbroken connection between an occur-
rence and damage that grows out of the occurrence, then the resultant damage is
all part of the occurrence.
20. Direct Loss Physical harm to tangible property
21. Indirect Loss Economic loss which flows as a consequence of the direct loss.
22. Actual Cash Value The current cost that losses will be settled based on Actual Cash Value
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1. 5 qualifications to 1. At least 18 years of age
become a Gener- 2. United States citizen or legal alien
al Lines agent 3. Bona fide resident of Florida
4. Place of business located in Florida
5. Not licensed for purpose of writing controlled business
2. Department of Fi- 1. Approves issuance of licenses to agents, CR, and adjusters
nancial Services 2. Supervisions of claims
(DFS) 3. Investigate charges of unethical conduct and take judicial actions
3. Office of Insur- 1. Examines the qualifications of the insurance companies doing business in FL
ance Regulation 2. Examines the financial conditions of companies
(OIR) 3. Approves forms, rules, and rates
4. Office of Finan- 1. Provides regulatory oversight to FL's financial providers
cial Regulation 2. Reports to the FL Service Commission
(OFR)
5. FL Surplus Lines 1. Oversees the surplus lines industry
Service Office 2. Reviews all surplus lines policies and documents
3. Collects surplus lines and taxes and fees
6. Risk Chance of financial loss
7. Policy Is a written contract for effecting insurance and includes clauses, riders, endorse-
ments, and papers which are apart of the contract
8. Insurance Is a contract where one undertakes to indemnify another or pay a specified amount
determined on contingencies
9. Binders Temporary insurance which can be made orally or written. The insurer shall give
5 days' prior notice of cancelling a binder unless the binder is replace by a policy.
No notice is required unless the binder exceeds 60 days.
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, Florida 2-20 General Lines Insurance
10. Property Insur- Where payment is made directly to the insured or other named interest
ance
11. Liability Insur- Where payment is made on behalf of the insured to another
ance
12. Contract of Adhe- Parties have unequal bargaining power such as the insured cannot negotiate the
sion terms of the insurer. Ambiguities found in the policy are usually found in favor of
the insured.
13. Indemnity Con- One party should be put back in the same financial condition they were before the
tract loss. Never profit from a loss.
14. Peril Contingency that may cause a loss
15. Hazard Condition that increases the likelihood of a loss from a covered peril.
16. Physical Hazard Physical Characteristics that increases the probability and severity of loss (i.e.
Ice-covered steps)
17. Moral Hazard Intentional Loss (i.e. Intentionally burning down your house to collect insurance
payout)
18. Morale Hazard Accident-prone or carelessness (i.e. Insured drives recklessly because that's what
insurance is for)
19. Proximate Cause A doctrine that states when there is an unbroken connection between an occur-
rence and damage that grows out of the occurrence, then the resultant damage is
all part of the occurrence.
20. Direct Loss Physical harm to tangible property
21. Indirect Loss Economic loss which flows as a consequence of the direct loss.
22. Actual Cash Value The current cost that losses will be settled based on Actual Cash Value
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