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Florida ACA Claims Licensing Exam 2024/2025 already graded A+
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Florida ACA Claims Licensing Exam 2024/2025 already graded A+
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Florida ACA Claims Licensing ExamInsurance - ANStransfer of risk by contract to insurers who agree to indemnify insureds for
losses
Risk - ANSchance of loss
pure risk - ANSonly outcomes are loss or no loss
personal risk - ANSpremature death, insufficient income, poor health, unemployment
property risk - ANSloss of real property or personal property (on the land not the land itself)
Liability risk - ANSsomething that results in loss to another (3rd party buyout)
Controlling risk - ANSrisk management; minimal loss
speculative risk - ANSeither profit or loss is possible (NOT insurable)
indemnify - ANScompensate for loss, damage, or injury; reimburse; repay
Law of Large Numbers - ANSmust have a large pool of insureds to be able to predict losses so
that the outcomes will reflect the probability of the results
Direct loss - ANSResults from the damage, destruction, or theft of property by a covered peril
indirect loss - ANSa financial loss that results from the occurrence of a direct physical damage
or theft loss
When can there be a pay out on liability risk - ANSnegligence is proven
negligence - ANSfailure to use due care; otherwise known as the prudent person rule
Strict or Absolute Liability - ANSLiability assigned by statute without regard for negligence (set
by the state or industry, no allowable defense)
Indemnity Principle - ANSone should be in approximately the same position after a loss as he
was before the loss
Insurer - ANSA person or company that underwrites an insurance risk; the party in an insurance
contract undertaking to pay compensation.
, Insured - ANSone who is named or covered by insurance
Insurable interest - ANSmust exist at the time of loss and usually means an economic or other
interest in the event or in a particular property ex: bank loans or mortgage companies
What is the measure of insurable interest - ANSthe extent to which the insured might be
damnified by loss, injury, or impairment thereof
Policy - ANSa written document containing coverage, exclusions, conditions and endorsements
Binder - ANScan be oral or written and places the insurance "in effect"
Requirements of a valid contract - ANSconsent of all parties (offer and acceptance), valuable
consideration (monetary exchange), all parties must be of legal capacity (competent), and it
must be for legal purposes to be enforceable
Characteristics of an insurance contract - ANSpersonal, conditional, contract of adhesion (gray
area, will side on the behalf of the insured), principle of indemnity, aleatory (exchange is not
equal), unilateral (payment for a promise)
Domestic insurance company - ANSA company that resides and is incorporated under the laws
of the state in which it is operating
Foreign Insurance Company - ANSAn insurance company that is incorporated outside the state
where it is conducting business
Alien Insurance Company - ANSAn insurance company incorporated outside the country
Peril - ANSsomething that causes a loss ex: Fire, lightening
Hazard - ANSsomething that increases the probability a loss will occur or increases the severity
Physical hazard - ANSA physical characteristic that may increase the likelihood of loss (wet
floor, icy roads)
Moral hazard - ANSa conscious act that may cause a loss to occur (deliberate theft)
Morale hazard - ANSan unconscious act that may cause a loss to occur (out of your control)
Proximate cause - ANSif there is an unbroken chain of events from the occurrence and damage
from that occurrence, all damage is a result of that occurrence (water damage from a fire)
property insurance - ANSA type of insurance that covers damage to property, such as a home.
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