2-20 Florida P&c Insurance Test

Front 1

Moral Hazard

Back 1

Intentionally caused losses

Front 2

Morale Hazard

Back 2

Attitude

Front 3

Physical Hazard

Back 3

Laws of nature

Front 4

Proximate Cause

Back 4

That cause which directly through an unbroken chain of events brings about a loss -- if a covered peril is proximate cause policy must pay.

Front 5

Actual Cash Value (ACV)

Back 5

Replacement cost less depreciation

Front 6

Replacement Cost

Back 6

Actual cost to repair or replace -- no depreciation. Repairs must be done before full payment is made. (New for old)

Front 7

Coinsurance Formula

Back 7

(Amount Carried/Amount Required) Loss

Front 8

Specific Insurance

Back 8

Separate amount of insurance on each item insured. Name each item with an amount.

Front 9

Blanket Insurance

Back 9

Single amount of insurance on several items to be covered. All items under one limit.

Front 10

Direct Loss

Back 10

Physical harm to tangible property e.g. water damage.

Front 11

Indirect Loss

Back 11

Economic loss in consequence of direct loss e.g. financial loss.

Front 12

A mortgage clause protects?

Back 12

Lender's interest in real property.

Front 13

Loss payable clause protects?

Back 13

Lender's interest in personal property.

Front 14

Three ways to be held civilly liable?

Back 14

1. Breaches of contract

2. Intentional torts

3. Torts arising from negligence

Front 15

Tort

Back 15

A civil wrong, which for insurance purposes must be caused by negligence.

Front 16

Negligence

Back 16

The failure, by act of commission or omission, to do what a reasonable and prudent person would do in the same situation.

Front 17

Comparative Negligence

Back 17

When both parties are negligent each shall bear the proportionate share of the other's damage i.e. both parties are at fault.

Front 18

Special Damages

Back 18

Actual economic loss i.e. tangible.

Front 19

General Damages

Back 19

Pain, suffering, anguish, loss of companionship i.e. intangible.

Front 20

Subrogation

Back 20

After paying insured, Company owns rights against party who caused insured's loss.

Front 21

Severablitily

Back 21

Insurance coverage applies to separately to each insured.

Front 22

Primary (insurance payout)

Back 22

Policy pays first; when limit is exhausted Excess policies pay.

Front 23

Pro rata (insurance payout)

Back 23

Each policy pays its proportionate share.

Front 24

Equal Shares (insurance payout)

Back 24

Each policy pays an equal part of loss.

Front 25

Florida No-Fault Law

Back 25

Law that applies to B.I. for Defined Motor Vehicles.

Front 26

Exceptions to Florida No-Fault Law

Back 26

Mobile homes; taxis and limos; government owned transit vehicles for five or more passengers.

Front 27

Residing Relative

Back 27

Anyone related to the named insured by any degree of blood or marriage, who usually lives with the family, even if temporarily living elsewhere.

Front 28

How many days out of the previous year must a car be in Florida to fall under Florida No-Fault?

Back 28

90 out of the last 365

Front 29

P.I.P

Back 29

Coverage under FNF that is mandatory for all owners of Defined Motor Vehicles.

Front 30

Penalties for not holding PIP if in an accident?

Back 30

1. Loses exemption for tort liability.

2. Becomes personally liable for benefits under act.

3. Driver's license and car registration suspended.

Front 31

PIP Coverage applies to whom?

Back 31

Named insureds, residing relatives. In Florida in car or as a pedestrian, elsewhere in insured vehicle only.

Front 32

PIP Benefits

Back 32

1. Medical - reasonable medical, surgical, dental, prosthetic, remedial and rehabilitative treatment. (80%)

2. Disability - pays 60% loss of income, 100 % cost of household services.

3. $5,000 death benefit.

Front 33

PIP Coverage Limits

Back 33

$10,000 per person, per accident, including the $5,000 death benefit; no limit per accident. Recovery under PIP reduces amount recoverable in tort.

Front 34

PIP Deductible

Back 34

$250, $500, $1000 applying to insured and resident relatives available. Deductibles may apply to insured only or insured and dependent resident relatives.

Front 35

PIP Exclusions

Back 35

1. Named Insured, Resident Relative when in another owned defined motor vehicle that isn't covered under policy

2. Anyone who intentionally injures self

3. Injured committing a felony

4. Operating auto without owner's consent

Front 36

PIP Tort Exemption does not apply if?

Back 36

Can be referred to as thresholds. If no threshold is crossed, insured is immune from lawsuit for non-economic loss, no matter how large to economic loss.

1. Permanent loss of important bodily function

2. Permanent injury other than scarring or disfigurement e.g. whiplash

3. Significant scarring or disfigurement

4. Death

Must have one of these to sue under liability.

Front 37

How are benefits for PIP paid out?

Back 37

1. WC (if work related)

2. PIP

3. MedPay

4. UM

Front 38

PAP: Eligible Insureds

Back 38

1. Individual

2. Spouses

3. Family Members

4. Non-related members of the household

Front 39

PAP: Eligible Vehicles

Back 39

1. Private passenger autos.

2. Pickups and vans that weigh less than 10,000 pounds.

Front 40

PAP Scope of Coverage

Back 40

1. Named insured

2. Family members

3. Borrowers

4. Others "legally responsible"

for use of covered auto or other auto not regularly furnished.

Front 41

Covered Auto can be?

Back 41

1. Listed in the declaration

2. Temporary substitute

3. Newly acquired replacement auto for policy period

4. Additional auto for 14 days

Front 42

Part A Non-owned Autos

Back 42

1. Coverage on auto's policy is primary; user's policy is excess.

2. Owned trailers, non-owned trailers while attached.

Front 43

PAP Part A Defense

Back 43

Where coverage exists, company may elect to:

1. Defend*

2. Settle out of court, as it chooses

3. If policy limit is exhausted company has no further obligation to defend.

*If Company defends. defense cost are paid in addition to policy limit.

Front 44

PAP Part A Supplementary Payments

Back 44

B Bail Bond cost up to $250

A Appeal bond or release of attachment bond premiums

I Interest on judgement, until carrier pays its share of same

L Loss of pay up to $200 per day attending court or hearings at company request.

E Expense incurred at company request.

Front 45

PAP Part A

Back 45

Legally responsible - split or single limit. 10/20/10 or 30,000 - Basic Limit

Front 46

PAP Part B

Back 46

Medical Payments