2-20 Florida Insurance flashcards verified answers
Pure Risk ️a situation that presents the opportunity for loss, but no opportunity for gain.
due to physical damage or bodily injury.
Ex. Fire Loss- not anticipated but poss.
Speculative Risk ️We speculate or have uncertainty about an e...
2-20 Florida Insurance flashcards verified answers Pure Risk ✔️a situation that presents the opportunity for loss, but no opportunity for gain. due to physical damage or bodily injury. Ex. Fire Loss - not anticipated but poss. Speculative Risk ✔️We speculate or have uncertainty about an event under consideration that could produce either profit or loss. Ex. Lottery or Betting Policy ✔️Written contract or agreement effect ing insurance, including clauses and endorsements. Insurance ✔️A contract in which one party indemnifies another party a specific amount (a pre -
determined benefit for pre -determined contingencies) Casualty Insurance ✔️All insurance other than Life and Health Property Insurance ✔️Carrier pays directly to the Insured (First Party). Liability Insurance ✔️Carrier pays on behalf of the insured (Third Party). Assumed Risk ✔️Amount of risk that insured is willing to absorb. Whatever part of the risk maintained(responsible) by the insured. . How do pure risk and speculative risk differ? ✔️Pure risk is insurable and speculative risk is not. What is the law of large numbers? ✔️Statistical theory that the larger the # of individual risks (or exposures) that are studied in a group, the more predictable and accurate the estimate of expected losses for the group. What are the four parts that make up an insurance policy? ✔️1. Declaration Page - info page 2. In suring Agreement - promise to pay 3. Conditions - rules of the policy 4. Exclusions - situations which are not covered How do endorsements alter the policy? ✔️A written form attached to an insurance policy that alters the policy. Binder ✔️Temporary insuranc e (no longer than 60 days) - oral or written & includes all terms of the policy. What is the difference between an insurance policy and a binder? ✔️Binder is temporary until they receive there policy in the mail. The most accurate description of Pure Ri sk is which of the following? ✔️Insurable Which of the following can be found in Definitions? ✔️Who is an insured? Which of the following can be found in "Conditions"? ✔️Duties of the Insured at time of loss All of the following choices are found on Declarations page EXCEPT: ✔️Exclusions What is an "Exclusion?" ✔️Events not payable under the policy What is a Deposit Premium? ✔️Partial premium placed as a down payment at the start of the policy Which of the following best describes a "binder"? ✔️Temporary insurance What is an "Exclusion?" ✔️Events not payable under the policy What are personal contracts? ✔️covers persons - not property the property & casualty policies cover persons for their financial loss , not the damage to their property. Who has an insurable interest? ✔️Someone must possibly suffer an economic loss. The extent of the insurable interest establishes the % paid. It must exist at the same time of the loss. Who are the sources of underwriti ng? ✔️1. Insurance Policy Application 2. Insurer questionnaires 3. Inspections 4. in house indexes 5. Producer visits 6. Public records 7. Credit reports The most accurate definition of a Contract of Adhesion is: ✔️Contract created by insurance company; insured cannot negotiate terms; ambiguities in favor of insured What section in the PAP describes payments to others if the insured damages others? ✔️Liabi lity What is NOT a source of underwriting? ✔️Exclusions What type of hazards exist? ✔️Physical, Morale, and Moral Physical Hazard ✔️When an object is in the right place at the wrong time. Physical characteristic of an object. Moral Hazard ✔️Intentional Loss Ex. Arson & Insurance Fraud Morale Hazard ✔️Carelessness, accident What is the Proximate Cause Doctrine? ✔️Unbroken connection between a covered occurrence and the damage from the occurrence. If covered property is damaged by a covered peril, the carrier will pay all of the resulting damage, as long as it is continuous. Direct Loss ✔️damage to the covered real or personal property caused by a covered peril. Can Be Seen. Indirect Loss ✔️Economic loss as a consequence of Direct Loss. x. own 2 pr operties, Rent one. Fire. Loss of rent. loss of income. What is the Lender's Interest? ✔️"Mortgage Clause" or "Mortgage Rights" - makes lender a payee in any covered loss. - gives mortgagee advance notice of cancellation/non -renewal. - Mortgagee is covered even if insured is engaged in act of omission preventing payment. - Mortgagee can continue policy if premium is not paid.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
