question

Warranty

answer

policy condition, either based on information in the insured's application or inserted by the insurer

question

Misrepresentation

answer

an untrue statement by the insured, made in an application but does not become a part of the policy

question

Broad Evidence Rule

answer

a method of determing the true insurable worth of a structure or vehicle according to any measure that will prvoide the most accurate analysis of that property's value

question

State

answer

a jurisdiction other than the state of Florida (any state, district, territory, or commonwealth in the U.S.)

question

authorized insurer

answer

one authorized by a subsisting certificate of authority issued by the department to transact insurance in this state

question

Office of Insurance Regulation

answer

regulation, compliance, and enforcement of statutes related to the business of insurance and the monitoring of industry markets (regulatory oversight of company solvency, policy forms and rates, market conduct performance, and new company entrants in the FL market

question

Causes of Loss Form

answer

specifies 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

question

Split Limits

answer

policy limits that apply one limit to each person injured, another for BI claims of all persons insured in a single accident, and a separate limit for all property damage arising out of a single accident (i.e. 15/30/10)

question

Severability

answer

insurance applies separately to each insureds

question

Arbitration Clause

answer

in the event the insured and the insurer cannot agree on amount of claim settlement, each appoints an appraiser

question

Liberalization

answer

if insurer broadens coverage w/out additional premium w/in some period of time prior to the policy period (60 days) or during the policy period, the insured receives the benefit

question

Pro Rata

answer

pay the proportion (limit: all limits) (i.e.$25,000/$100,000 =1/4)

question

Primary

answer

applies 1st up to its limit

question

Excess

answer

all other insurances exhausted before the policy will apply

question

Equal Shares

answer

contribution based on the amount of policies regardless of their limits

question

Assignment

answer

policy transfer from one insured to another

question

Subrogation

answer

insured has the right to collect damages from another party but elects to claim the damages from her own insurance policy

question

Indemnity

answer

a principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occured, no better, no worse

question

Loss Payee

answer

the person designated on an insurance policy as the one to be paid in case the property is damaged/destroyed

question

Damages

answer

money amount w/ which liability insurance is concerned

question

Special Damages

answer

reimbursement for out of pocket expenses

question

General Damages

answer

reimbursement for damages that do not readily have quantitative measurement

question

Punitive Damages

answer

due to negligence by defendent

question

Insurance

answer

a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies

question

Binder

answer

an oral/written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied

question

Contracts of Adhesion

answer

the parties are of unequal bargaining power, and the insured cannot negotiate the terms having to take the offer of the insurer as made

question

Controlled Business

answer

when the majority of insurance written is for family members

question

Insurer

answer

every person engaed as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity

question

Comparative Negligence Rule

answer

reduces a plaintiff's damages by the plaintiff's degree of negligence

question

Contributory Negligence Rule

answer

if one contributed to their own injuries in any way, they could not recovera dime from others

question

Declarations

answer

the section of an insurance contract which shows who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies

question

Percentage Deductible

answer

percentage of the property value of percentage or percentage of the policy limits

question

Limited Customer Representative

answer

customer representative appointed by a general lines agent/agency to assit that agent/agency in transacting only the business of private passenger motor vehicle insurance

question

SR-22 Filing

answer

a form which must be filed by the insurance company stating that auto liability insurance is in effect for aparticular individiaul. Required when insurance provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility

question

Inland Marine Insurance

answer

an extension of Ocean Marine coverage to insure transporation of goods over land. Also covers a variety of portable property

question

Inflation Guard

answer

a property insurance option which provides that policy limits will increase a certain percentage at regular intervals (i.e. annually)

question

Domestic

answer

insurance formed under the laws of this state

question

Sliding

answer

charging an applicant for a specific ancillary coverage in addition to the cost of the auto insurance coverage aplied for without his consent

question

Foreign

answer

insurance formed under laws of any state, district, territory, or commonwealth of the U.S. other than this state

question

Twisting

answer

knowingly using an incomplete comparison of insurance policies in order to the get the insured to buy a policy from you

question

Representations

answer

statement an applicant for insurance believes to be true

question

Temporary License

answer

- not to exceed 6 months - issued for the purpose of continuing or winding up the business affairs of the agent/agency in the event the licensed agent has died or is unable to perform his/her duties b/c of military service or illness, or other physical/mental disability

question

Domicile

answer

the state/country/providence under the laws of which the insurer was formed

question

All Risk Insurance

answer

"open perils" insurance - protecting the insured from loss arising from any peril other than those perils specifically excluded by name

question

Single Limits

answer

policy limits that apply to all BI and property damage arising from a single accident

question

Transacting Insurance

answer

- solicitation or inducement - preliminary negotiations - effecutuation of a contract of insurance - transaction of matters subsequent to effectuation of a contract of insurance and arising out of it

question

Captive Insurance Company

answer

a company that provides risk mitigation services for its parent company

question

Line of Authority

answer

a kind, line, or class of insurance an agent is authorized to transact

question

Uniform Application

answer

the uniform application of the National Association of Insurance Commissioners for nonresident agent licensing, effective Jan 15, 2001, or susequent versions adopted by rule by the department

question

Private Passenger Autos

answer

ordinary cars, station wagons, jeeps, utility autos (pickups, panel trucks, and delivery vans 1,5000 lbs or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto

question

Replacement Cost Endorsement

answer

an endorsement that can be added to an HO3 form to provide replacement cost coverage on personal property (with limitations)

question

Endorsement

answer

a document which is attached to the policy and modifies or changes the original policy in some way

question

Certificate of Authority

answer

- act as an insurer - transact insurance (directly or indirectly) - solicit insurance applications If does so w/out certificate, commits 3rd degree felony

question

Loss of Use Coverage

answer

covers the insured's increased cost of living after loss and rental value of any portion of the dwelling which is rented out

question

Named Nonowner Coverage

answer

an endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto while the insured is operating autos owned by others

question

Brokering Agent

answer

an originating general lines agent placing business w/ a company w/ which he/she is not appointed

question

Self-Insurance

answer

insurance established by or on behalf of any individual, partnership, association, corporation, trustee, governmental unit, employer, or employee organization, or any other organized group (covering more than 10 employees)

question

Commercially Domiciled Insurer

answer

- foreign or alien insurer authorized to do business in this state - during 3 fiscal years - written avg 25%+ direct premiums in this state than in state of domicile - direct premiums are 55%+ of its total premiums written in U.S. during 3 fiscal years

question

Indirect Loss

answer

economic loss which is a result of direct loss

question

Bureaus of Life and Health and Insurer Solvency and Property and Casualty Insurer Solvency

answer

monitors the solvency of life and health and property and casualty insurers authorized to operate in the state of FL - ensure financial viability of insurers

question

Bureau of Market Conduct

answer

monitors the conduct of insurers as it realtes to policyholder treatment - protect the public from unethical insurance practices

question

Bureaus of LIfe and Health Forms and Rates and Property and Casualty Forms and Rates

answer

reveiwing life and health and property and casualty policies that are to be issued to FL residents - reviews and analyzes insurance reates for certain products

question

Direct Loss

answer

physical harm to property due to peril, efforts to end peril, and exposure following peril

question

Personal Auto Policy (PAP)

answer

provides broad coverage for both owned and non-owned autos, used maintained or operated by the insured and family

question

Personal Injury Protection (PIP)

answer

coverage provided in auto policies in FL that covers the insured's own injuries on a 1st part basis w/out regard to fault **required & must be carried by all owners of motor vehicles in FL

question

Hazard

answer

something that increases the probability that a loss will occur

question

Proximate Cause

answer

an unbroken connection between an occurence and damage that grows out of the occurence

question

Risk

answer

the chance of financial loss

question

Appointment

answer

the authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer

question

Home State

answer

the District of Columbia and any state or territory of the U.S. in which an insurance agent maintains his/her principle place of residence or principal place of business and is licensed to act as an insurance agent

question

Actual Cash Value (ACV)

answer

the cost to replace an item or property at the time of loss, minus depreciation

question

Replacement Cost

answer

the cost to replace a damaged or destroyed item of property, w/out deducting depreciation

question

Valued Policy Law

answer

if total loss by a covered peril to a building structure, mobile home, or manufactured housing unit, the insurer must pay the amouynt provided in the policy for whyich the premium has been paid

question

Coinsurance

answer

lower rates for insureds who insure a high percentage of the value of the subject property

question

Coinsurance Clause

answer

requires insured to pay part of loss if coverage is less than the specified percentage of the value of the property at the time of loss Loss x (Limit of Insurance/Value of Property x Coinsurance %) = Loss Settlement

question

Specific Insurance

answer

each property named and covered for a separate amount

question

Blanket Insurance

answer

single amount of coverage applies to ANY loss of injury up to the single amount

question

Aggregate Limit

answer

a type of policy limit which limits coverage to a specified total amount for all losses occuring w/in the policy period

question

Franchise Deductible

answer

no payment is made until loss equals or exceeds proscribed amount, then the loss is paid in full

question

Alien

answer

insurer other than a domestic or foreign insurer

question

WPMLU

answer

Workers Comp, PIP, Med Pay, Liability, Uninsured Motorists

question

Unauthorized Insurer

answer

one not authorized by the department to transact insurance in this state

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