General Insurance + MISC
A person buys a policy on a neighbor’s home “because it might burn down.” The missing requirement is
What is insurable interest?
The authority that exists because the agent’s license is granted by the insurer’s contract.
What is express authority?
The unfair practice of inducing a replacement using misrepresentation (different insurer).
What is twisting?
A PAP provision that extends liability coverage when driving a temporary substitute vehicle.
What is the temporary substitute auto provision?
The dwelling policy form typically used for a tenant (contents-focused).
What is DP-4 (Tenant form)?
Agent’s authority appears real to a customer because the insurer’s actions created that impression, even if not granted in writing.
What is apparent authority?
The insurer can cancel midterm per policy conditions if premium isn’t paid; the insured can’t force the insurer to keep the contract without meeting duties. This describes a ____ contract.
What is a conditional contract?
Replacing a policy with a new policy from the same insurer using misrepresentation is called this.
What is churning?
Collision pays regardless of fault but only for damage to ____.
What is the covered auto (your vehicle)?
A detached garage is normally insured under this homeowners coverage.
What is Coverage B – Other Structures?
This HO form is designed for tenants rather than owners.
What is HO‑4?
Florida rebating: rebates cannot be conditioned on buying “collateral business.” This is explicitly prohibited.
What is conditioning rebating on collateral business (prohibited)?
Florida’s main state agency page that lists exam manuals/education resources for licensees.
What is the Florida Department of Financial Services (DFS) education information for licensees?
This PAP coverage applies regardless of fault but is limited to medical and funeral expenses for covered persons.
What is Medical Payments Coverage (MedPay)?
HO‑8 policies typically settle losses using this valuation method.
What is actual cash value?
Loss of rental income is classified as this type of loss.
What is an indirect (consequential) loss?
When unclear wording is interpreted against the party who wrote the contract.
What is contra proferentem (interpretation against the drafter)?
In Florida, the “hurricane” time period begins when a hurricane warning is issued and ends ____ hours after the last watch/warning terminates.
What is 72 hours?
An insured borrows a friend’s car once and causes an at‑fault accident. The vehicle is not furnished for regular use. Under the PAP, this vehicle is classified as a _____.
What is a non‑owned auto?
Interior rain damage is covered only when wind first damages the structure, creating this condition.
What is an opening?
Insurance contracts are unilateral because only the _____ makes an enforceable promise.
What is the insurer?
Florida cancellation for nonpayment of premium requires at least this many days’ notice.
What is 10 days?
A false statement that does not affect underwriting decisions is classified as _____.
What is an immaterial misrepresentation?
You're the licensing trainer. I'm the student. Explain what following three cover: Bodily Injury, Uninsured Motorist and Underinsured Motorist Coverage.
Bodily Injury-Pays for 3rd parties' medical injuries
Uninsured Motorist- Pays for your medical bills when the party who hit you is no insurance at all
Underinsured Motorist: Pays for your medical bills when the party who hit you, does not have enough coverage
This homeowners coverage applies to the main residence, attached garages and decks, and even materials on or next to the premises meant for repair or renovation—but it does not include the land, and it does not cover a structure separated by clear space or connected only by a fence or utility line.
What is Coverage A (Dwelling)?