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136 Cards in this Set
- Front
- Back
- 3rd side (hint)
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In a homeowners policy, the term ___ ___ ___ is defined as the cost to repair or replace the damaged property less depreciation.
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Actual cash value
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Does coverage under a property policy extend to include a legal representative of the named insured's estate in the event of the death of the named insured? (Yes or No)
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yes
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Could an order to vacate the property possibly cause an insurer to cancel a commercial property policy?
(Yes or No) |
yes
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The ____ clause allows insurers to automatically broaden coverage without endorsement on existing policies with no increase in premium.
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liberalization
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FL Personal Lines Blue Book Ch. 1 Retention Question
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in the event of a loss under a Homeowner's policy, a proof of loss must be signed and sworn by the ___.
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insured
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Would a stated amount method of valuation likely be used when insuring gold bullion?
yes or no |
No
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FL Personal Lines Blue Book Ch. 1 Retention Question
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For replacement cost coverage to apply in Dwelling policies, the insured must carry insurance at least equal to ___% of the cost of the replacement of the building.
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80
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FL Personal Lines Blue Book Ch. 1 Retention Question
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When an insured desires to add coverage to a policy, the insurer usually will ___ the policy.
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endorse
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FL Personal Lines Blue Book Ch. 1 Retention Question
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open peril policies include losses caused by theft.
True or False |
True
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FL Personal Lines Blue Book Ch. 1 Retention Question
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When an insured suffers a loss, they are required to prepare an inventory of the damaged property at the ___ request.
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insurer's
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Which part or portion of a property insurance policy is it that specifies the causes of loss (perils) that are not covered?
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Exclusions
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Which condition or provision of a property insurance policy applies when the insured and insurer cannot agree on the amount of the loss?
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Appraisal
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Which of the following is an example of a hostile fire?
A. A fire in a fireplace B. A burning cigarette C. A grass fire set intentionally by a rancher D. An ember from a fireplace jumps out and burns a hole in the carpet |
D
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FL Personal Lines Blue Book Ch. 1 Retention Question
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When property is damaged by fire, the loss is said to be a(n) ____ loss.
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Direct
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FL Personal Lines Blue Book Ch. 1 Retention Question
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War is typically excluded in property policies.
True or False |
True
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The name of the insured is found on the Declarations page of the policy.
True or False |
True
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FL Personal Lines Blue Book Ch. 1 Retention Question
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A building that has neither occupants nor personal property is ___.
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vacant
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FL Personal Lines Blue Book Ch. 1 Retention Question
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When the insurer cancels a property policy, the unearned premium is returned ___.
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Pro rata
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The ___ part or portion of a property policy sets forth the rights, rules, duties, and obligations of the insurer and insured to be followed throughout the policy period.
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conditions
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The ___ ___ law requires an insurer to pay the full amount of insurance on an insured structure in the event of a total loss.
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valued policy
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FL Personal Lines Blue Book Ch. 1 Retention Question
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When a property policy has been in effect less than 60 days and the insurer cancels for nonpayment of premium, the insurer must give the insured ___ days written notice.
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10
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The amount of the deductible is found in the ___ part or portion of a property policy.
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Declarations
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FL Personal Lines Blue Book Ch. 1 Retention Question
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When more than 1 property policy covers the same loss, each policy pays no more than its ___ share of the loss.
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pro rata
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FL Personal Lines Blue Book Ch. 1 Retention Question
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An insurer may nonrenew a Homeowners policy with oral notice to the insured.
True or False |
False
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FL Personal Lines Blue Book Ch. 1 Retention Question
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If a property owner does not desire any deduction for depreciation following a covered loss, he/she should purchase a(n) ___ ___ policy.
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Replacement cost
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FL Personal Lines Blue Book Ch. 1 Retention Question
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A condition or defect that exists within property itself that causes the property to spoil, break, become defective, or destroy itself, is known as ___ ____.
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Inherent Vice
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Policy A is written for $100,000, and an excess Policy B is written for $200,000 on the sme property. In the event of a $20,000 loss, how much will each policy pay?
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Policy A $20,000
Policy B $0 |
FL Personal Lines Blue Book Ch. 1 Retention Question
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if a fire on the premises caused a power outage, which caused meat in the freexer to spoil, would the meat spoilage be considered a direct loss or an indirect loss?
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Indirect
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Insuring more than 1 property on 1 policy for a single amount of insurance that applies to all properties covered under the policy is known as ___ coverage.
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blanket
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The provision contained in most policies insuring commercial property that is used to encourage the insured to purchase and maintain insurance to value is the ___ provision.
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coinsurance
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FL Personal Lines Blue Book Ch. 1 Retention Question
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What part or portion of a property policy contains the effective and expiration dates of the policy?
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Declarations
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FL Personal Lines Blue Book Ch. 1 Retention Question
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What method of loss valuation allows the replacement of damaged property with less costly property when replacement with identical property is impossible due to some technological change?
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Functional Replacement cost
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FL Personal Lines Blue Book Ch. 1 Retention Question
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What part or portion of the policy is it that contain's the insurer's promise of protecton to the insured?
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insuring agreement
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Under a Commercial Lines property policy, who is responsible for making the premium payments in a timely manner and has the right to request changes to the policy?
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First named insured
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FL Personal Lines Blue Book Ch. 1 Retention Question
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An individual or organization who has taken into their care, custody, and/or control the property of another for servicing, repair, or storage is known as a ____.
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Bailee
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FL Personal Lines Blue Book Ch. 1 Retention Question
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A fire is said to be a ____ of a potential loss.
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cause
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FL Personal Lines Blue Book Ch. 1 Retention Question
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Company A has issued a policy in the amount of $200,000, and a Company B has issued a policy in the amount of $300,000. Under the Other Insurance or Pro Rata Liability condition or provision, how much will Company A pay of a $100,000 loss?
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$40,000
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FL Personal Lines Blue Book Ch. 1 Retention Question
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The Declarations includes all of the following information, except:
A. The named insured B. The deductible C. duties after a loss D. The policy effective date |
C
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Ch 2 Property basics slideshow
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The insuring agreement includes which of the following?
A. Insurer's promise of payment B. Exclusions C. The obligations the insured and insurer agree to follow D. Loss payable clause |
A
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Ch 2 Property basics slideshow
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The insured's duties after a loss include all the following, EXCEPT:
A. notify police in the event of a theft B. Have property repaired quickly, then notify insurer C. Prepare an inventory of damaged property D. Give prompt written notice to the insurer |
B
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Ch 2 Property basics slideshow
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Which of the following is NOT contained in the conditions section of an insurance policy?
A. exclusions B. Appraisal C. Changes D. assignment |
A
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Ch 2 Property basics slideshow
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The address and legal description of insured property are found in the:
A. Declarations B. Insuring agreement C. Conditions D. Exclusions |
A
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Ch 2 Property basics slideshow
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A policy that provides coverage for all perils except those specifically excluded is called:
A. Open perils B. Actual perils C. Direct perils D. stated perils |
A
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Ch 2 Property basics slideshow
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A policy that pays the full cost to replace or repair damage to property without any adjustment for depreciation is called:
A. a depreciated policy B. A replacement value policy C. A valued policy D. A direct loss policy |
B
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Ch 2 Property basics slideshow
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A policy insures two types of property on one policy and each is insured for a different limit. The policy is written on what basis?
A. Blanket limit B. Scheduled limit C. Specific limit D. conditional limit |
B
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Ch 2 Property basics slideshow
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When a policy pays for the cost to repair or replace damaged property at its current value less depreciation, the loss settlement is on what basis?
A. Stated Value B. Scheduled value C. Actual cash value D. Pro-rata |
C
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Ch 2 Property basics slideshow
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A loss that occurs as a consequence of direct damage to property is known as:
A. a second loss B. an indirect loss C. a direct loss D. a non-concurrent loss |
B
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Ch 2 Property basics slideshow
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The person or organization whose name appears first on the Declarations is known as:
A. named insured B. First named insured C. Mortgagee D. Loss Payee |
B
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Ch 2 Property basics slideshow
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Which of the following has certain rights and duties that don't apply to other insureds?
A. additional insureds B. Second insured C. first names insured D. Last insured |
C
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Ch 2 Property basics slideshow
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All of the following are true of coinsurance EXCEPT:
A. the higher the coinsurance percentage, the lower the premium rate B.It only applies to total losses C. It's used in most commercial property policies D. It's used to encourage the purchase of insurance to value |
B
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Ch 2 Property basics slideshow
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Actual Cash Value is defined as:
A. Cost at today's prices, to replace or repair damaged property, less depreciation B. Cost, at purchase, to replace or repair damaged property, less depreciation C. Cost to replace or repair the damaged property at today's value D. Depreciated value |
A
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Ch 2 Property basics slideshow
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A building was purchased 10 years ago for $100,000. It currently has a replacement value of $200,000. It has depreciated 3% each year. What is the building's actual cash value today?
A. $200,000 B. $140,000 C. $70,000 D. $100,000 |
B
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Ch 2 Property basics slideshow
current replacement cost of an item minus applicable depreciation and obsolescence |
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The McCoys own and insure a building for $300,000. The policy has an 80% coinsurance clause. A $10,000 fire loss occurs and the replacement value at the time of the loss is $500,000. How much will the policy pay for the loss?
A. $12,000 B. $9,000 C. $7,500 D. $6,000 |
C
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Ch 2 Property basics slideshow
DID divided by SHOULD multiplied by loss = amount paid |
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Which of the following conditions applies when the insured and the insurer cannot agree on the amount of a loss?
A.abandonment B. loss payable C. Claim settlement D. Appraisal |
D
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Ch 2 Property basics slideshow
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if an insured must insure a building to 80% of its replacement value, what policy condition applies?
A. coinsurance B. appraisal C. Nonrenewal D. Cancellation |
A
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Ch 2 Property basics slideshow
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What would an insurer use to revise coverage provided by a property insurance policy?
A. endorsement B. arbitration C. concurrent causation D. a binder |
A
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Ch 2 Property basics slideshow
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Which of the following parties must sign and submit a proof of loss after a loss?
A. insurer B. insured C. Appraiser D. Adjuster |
B
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Ch 2 Property basics slideshow
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In a property policy, when an insurer automatically increases coverage mid-term without an increase in premium, what condition applies?
A. extra coverage B. liberalization C. endorsement D. actual cash value |
B
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Ch 2 Property basics slideshow
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An ember pops out of a fireplace and burns a hole in the carpet. This is said to be what type of a fire?
A. an out of bounds fire B. a covered fire C. a hostile fire D. a friendly fire |
C
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Ch 2 Property basics slideshow
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A property policy excludes which of the following perils, or causes of loss?
A. wind B. aircraft C. hail D. war |
D
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Ch 2 Property basics slideshow
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The named insured is found in what section of a property policy?
A. insuring agreement B. declarations C. conditions D. definitions |
B
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Ch 2 Property basics slideshow
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When a building contains insufficient personal property or furnishings to support its intended occupancy or use, it is:
A. unoccupied B. vacant C. empty D. cancelled |
B
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Ch 2 Property basics slideshow
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The section of a property policy that specifies the obigations and duties of the insured and insurer is the:
A. insuring agreement B. conditions C. declarations D. loss evaluation |
B
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Ch 2 Property basics slideshow
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The amount of a property policy's deductible is found in what section?
A. insuring agreement B. conditions C. provisions D. declarations |
D
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Ch 2 Property basics slideshow
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A property policy's limits of coverage are stated in what section?
A. insuring agreement B. conditions C. declarations D. provisions |
C
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Ch 2 Property basics slideshow
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When duplicate coverage exists, what policy condition determines how loss payment is made?
A. other insurance B. nonrenewal C. pro-rata D. cancellation |
C
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Ch 2 Property basics slideshow
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Policy A is a primary policy that insures a building for $200,000. Policy B is an excess policy that insures the same building for $400,000. In the event of a covered $40,000 loss, how much will policy B pay for the loss?
A. $0 B. $10,000 C. $20,000 D. $30,000 |
A
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Ch 2 Property basics slideshow
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if a fire damages a building and causes a power outage that, in turn, causes contents of a freezer to spoil, the food spoilage is what type of loss?
A. direct B. property C. indirect D. second |
C
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Ch 2 Property basics slideshow
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the _____ clause of a property policy requires a certain percentage of property's replacement value to be insured.
A. value B. Stated C. agreed D. coinsurance |
D
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Ch 2 Property basics slideshow
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What happens when an insured chooses a property deductible of $250 instead of $1000?
A. a lower deductible results in lower premiums B. a lower deductible results in the submission of a greater number of small claims C. a higher deductible results in the submission of a greater number of small claims D. a higher deductible is tax-deductible |
B
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Ch 2 Property basics slideshow
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Which of the following defines "proximate cause?"
A. an unexplainable event or circumstance that causes a loss B. a suspicious cause of a loss C. the primary cause of loss in an unbroken chain of events D. the negligent act that causes boldily injury or property damage |
C
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Ch 2 Property basics slideshow
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Property policies only cover losses specifically listed in the policy are referred to as;
A. stated peril policies B. open peril policies C. named peril policies D. fixed peril policies |
C
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Ch 2 Property basics slideshow
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If a policy had a concurrent causation exclusion, which of the following is true?
A. if a loss results from two or more perils that occur at the same time, no coverage is provided if any of the perils is excluded B. If a loss results from two or more perils that occur at the same time, coverage is provided--even if one of the perils are excluded C. There is no coverage if a loss is caused by more than one peril D. only the first peril causing loss is covered |
A
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Ch 2 Property basics slideshow
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Who is the 'first party' to an insurance contract?
A. the agent B. the insured C. the claimant D. the insurance company |
B
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Ch 2 Property basics slideshow
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Which components of an insurance policy indicate who and what are insured?
A. conditions B. perils C. insuring agreement D. declarations |
D
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Ch 2 Property basics slideshow
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A copy machine was purchased 8 years ago for $9,000. It had depreciated 50% at the time of loss and will cost the insured $12,000 to replace. If the policy's loss settlement provision is on an Actual Cash Value basis, how much will the insurer pay for the insured's loss of the copier?
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$6,000
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Ch 2 Property basics slideshow
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The replacement value of an insured building is $200,000. In the standard commercial property policy, what is the SMALLEST coverage amount required for full replacement valuation to apply if a loss occurs?
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$160,000
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Ch 2 Property basics slideshow
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What section of a property insurance policy summarizes the insurer's promise to make payment?
A. definitions B. conditions C. insuring agreement D. declarations |
C
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Ch 2 Property basics slideshow
p 26 |
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If two seperate causes result in a loss, and the policy excludes one of the causes but not the other, what provision in the policy describes how losses will be paid?
A. concurrency B. nonconcurrency C. concurrent causation D. other insurance |
C
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Ch 2 Property basics slideshow
p 27 |
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As the fire dept doses a fire to an insured dwelling, the dwelling sustains severe fire and water damage. The fire damage is what type of loss?
A. indirect loss B. consequential loss C. contingent loss D. direct loss |
D
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Ch 2 Property basics slideshow
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Which of the following causes of loss does an open perils policy include?
A. ocean and see perils B. perils that would affect business C. perils that are not specifically excluded D. perils named in the policy |
C
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Ch 2 Property basics slideshow
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A breach of warranty under an insurance company may______ the contract.
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Void
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Ch 9 FL Personal Lines book
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When there is a possibility of loss or gain, the risk is deemed a(n) ___ risk
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Speculative
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Ch 9 FL Personal Lines book
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A person who may be dishonest is said to be a(n) ___ hazard.
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moral
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Ch 9 FL Personal Lines book
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A peril is defined as a cause of loss. True or False
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TRUE
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Ch 9 FL Personal Lines book
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Something that increases the chance or likelihood of a loss is known as a(n) ________.
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hazard
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Ch 9 FL Personal Lines book
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Would the storage of flammables on the premesis be considered a physical hazard?
yes or no |
yes
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Ch 9 FL Personal Lines book
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Indifference to loss is called a(n) ___ hazard.
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morale
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Ch 9 FL Personal Lines book
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An individual who negotiates insurance contracts on behalf of the prospective insured is called a(n)_________.
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Broker
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Ch 9 FL Personal Lines book
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____ is defined as the reduction in, decrease in, or disappearance of value
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Loss
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Ch 9 FL Personal Lines book
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The ____ ____ doctrine states that an insured is entitled to coverage that a reasonable and prudent buyer can expect.
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reasonable expectation
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Ch 9 FL Personal Lines book
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Underwriters like to select insureds whose actual loss will be similar to expected losses.
true or false |
true
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Ch 9 FL Personal Lines book
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A ______ contract is an arrangement where one insurer transfers or shares the risk with another insurer.
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reinsurance
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Ch 9 FL Personal Lines book
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The insurance contract is a contract of ___ ___ ___ because each party is entitled to rely upon the assumption that there has been full, fair, and honest disclosure.
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utmost good faith
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Ch 9 FL Personal Lines book
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An insurer's failure to enforse a provision in an insurance contract is called a(n) _____.
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waiver
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Ch 9 FL Personal Lines book
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When rates cannot be used until they are approved by the Dept or Division of Insurance, they are called ___ ___ rates.
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prior approval
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Ch 9 FL Personal Lines book
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When someone provides misleading or false information to the insurer on the application it is considered _______.
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misrepresentation
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Ch 9 FL Personal Lines book
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When an insurance policy is not clear, the court will usually interpret in favor of the insured, because the policy is a contract of ______.
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Adhesion
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Ch 9 FL Personal Lines book
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A producer's/agent's binding authority is stated in his/her contract with the insurer.
true or false |
true
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Ch 9 FL Personal Lines book
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A producer's/agent's powers that are stated in his/her agency contract are called _____ powers.
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express
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Ch 9 FL Personal Lines book
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A contract whereby only one party is bound to future performance is said to be a(n) _____ contract.
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unilateral
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Ch 9 FL Personal Lines book
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Does a producer/agent have the responsibility to promote profitable policies?
yes or no |
No
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Ch 9 FL Personal Lines book
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The determination of acceptable risks is the primary function of the ____.
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underwriter
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Ch 9 FL Personal Lines book
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In insurance, wet leaves allowed to remain on a homeowner's sidewalk could be considered a ___ hazard.
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physical
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Ch 9 FL Personal Lines book
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insurance is designed to provide protection against _____ risk.
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Pure risk
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Ch 9 FL Personal Lines book
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The fact that an insured would profit from a loss, would be a violation of the ___ ___ ___.
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Principle of Indemnity
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Ch 9 FL Personal Lines book
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Can one purchase an insurance policy to cover losses which result from an operation of drug smuggling?
yes or no |
no
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Ch 9 FL Personal Lines book
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When a producer/agent violates the power expressed in his/her agency contract, can he/she be held personally liable?
yes or no |
yes
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Ch 9 FL Personal Lines book
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When an applicant intentionally fails to make a material fact this is known as ____.
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concealment
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Ch 9 FL Personal Lines book
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A mutual insurance company is owned by its ______.
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policyholders
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Ch 9 FL Personal Lines book
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The value that each party gives the other in an insurance contract is said to be the ____.
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consideration
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Ch 9 FL Personal Lines book
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____ is defined as the uncertainty concerning a loss.
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risk
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Ch 9 FL Personal Lines book
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When a producer/agent compares benefits of several policies he/she is guilty of misrepresentation.
true or false |
false
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Ch 9 FL Personal Lines book
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When the number of similar units increase the predictability of the loss improves according to the __ of __ __.
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Law of large Numbers
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Ch 9 FL Personal Lines book
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independent agents are actually emloyees of the insurer
true or false |
FALSE
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Ch 9 FL Personal Lines book
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In most states, a nonadmitted insurer may be used if a producer/agent has made a great effort to place insurance through an admitted insurer.
True or false |
TRUE
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Ch 9 FL Personal Lines book
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Risk ____ is when one takes action to prevent or reduce potential loss.
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reduction
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Ch 9 FL Personal Lines book
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Would a producer/agent be obligated to obey illegal orders of an insurer?
Yes or No |
No
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Ch 9 FL Personal Lines book
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A mutual ____ insurer can charge a policyholder a pro rata share of losses.
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assessment
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Ch 9 FL Personal Lines book
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In this state, when an insurer becomes licensed to do business here, it is a(n) ____ insurer.
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admitted
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Ch 9 FL Personal Lines book
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The insuring of risks that are more prone to losses than average risks is known as ___ ___.
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Adverse selection
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Ch 9 FL Personal Lines book
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The insurer's promise to pay a covered loss, and the insured's payment of the premium are examples of ____.
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cosideration
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Ch 9 FL Personal Lines book
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Under Aleatory contracts, the consideration may be ___.
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unequal
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Ch 9 FL Personal Lines book
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_____ reinsurance is accepted or rejected on a case by case basis.
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facultative
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Ch 9 FL Personal Lines book
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A stock insurance company is owned by its _____.
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stockholders
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Ch 9 FL Personal Lines book
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The potential of damage to property caused by fire, wind, and hail, would be an example of ____ risk.
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Pure
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Ch 9 FL Personal Lines book
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The formula used to calculate actual cash value is:
A. ACV = Market Value - Overhead B. ACV = Stated Value - Agreed Value C. ACV = Stated Value - Depreciation D. ACV = Replacement Cost - Depreciation |
D
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Ch 2 Property basics slideshow
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The assignment condition of a property policy states an insured may NOT transfer ownership of the policy without which of the following?
A. An attorney's written consent B. The first named insured's signature C. Declaration of Transfer agreement D. Insurer's written permission |
D
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Ch 2 Property basics slideshow
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All property policies list the duties of an insured after a loss. Identify which of the following is NOT a duty of an insured AFTER a loss.
A. Contact the police if the loss is the result of theft B. Prepare an inventory of the damaged property C. Be prepared to answer questions under oath about the loss circumstances while not in the presence of any other named insureds D. Repair property as soon as possible and present the repair receipt to the adjuster |
D
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Ch 2 Property basics slideshow
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A commercial property policy contains a coinsurance clause that;
A. Encourages policyholders to insure property to its replacement value B. Encourages businesses to use more than one insurer to cover its risks C. Determines the cost-sharing between multiple insurers D. Requires a minimum dollar amount to be set aside in a Special Disaster Fund |
A
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Ch 2 Property basics slideshow
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What type of refund is issued when a property policy is cancelled at the request of the insured and the insurance company retains a percentage of unearned premiums to cover its administrative costs?
A. Short-rate B. Pro-rata C. Flat D. Unearned |
A
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Ch 2 Property basics slideshow
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An insured's claim is denied under the terms of a property insurance policy, If the mortgagee submits a claim for the same loss, how will the policy respond?
A. It will add the cost of the loss to the outstanding mortgage balance B. It will pay the loss to the mortgage company if it has followed specific guidelines C. It will allow the insured to skip 3 months of mortgage payments to recover from the loss D. The mortgagee is not entitled to claim payment under a property policy |
B
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What is the primary reason for the coinsurance clause in a property policy?
A. to establish a method for evaluating the value of the property B. to require the insured to always pay a portion of every loss C. to create a means of sharing the risk with another company D. to encourage the purchase of coverage at replacement value of property |
D
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What is the provision in most commercial property policies that encourages the insured to purchase and maintain insurance to value and, if the insured fails to do so, applies a penalty when certain losses are paid?
A. Apportionment B. Other insurance C. Pro-rata Liability D. Coinsurance |
D
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A building is insured by two policies: Company A at $400,000 and Company B at $600,000. If each pays its share of a $100,000 loss, how much will Company B pay?
A. $60,000 B. $50,000 C. $40,000 D. $0 |
A
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The definition of "occurenc" is:
A. A repreated of continuous exposure only B. An accident, including continuous or repeated exposure to the same general harmful conditions C. An intentional injury D. Any dangerous conditions in the insured's products or work |
B
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Ch 2 Property basics slideshow
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