Terms & Concepts 1
A chance of a financial lost is defined as:
Risk
Non-residents of Florida must comply with the Florida No-Fault Law if residing in the state for more than how many days?
90 days
When must insurable interest exist?
At the time of the covered loss
How much coverage is provided for lost wages with the Extended PIP endorsement?
80%
What is the loss settlement valuation that is given on a DP1 building claim?
ACV
Which entity within the insurance industry investigates charges of unethical conduct, supervises claims activities and approves the issuance of agent licenses?
Department of Financial Services
**DAILY DOUBLE***
The law that requires an operator of a motor vehicle to respond for damages caused in his/her auto and to show proof of financial ability to respond to such damages is known as the
Florida Financial Responsibility Law
The loss settlement valuation that covers personal property based on "New for Old" is known as:
Replacement Cost
When can an insurer cancel a policy after the first 60 days? Hint-3 reasons
Non-payment, material misrepresentation or fraud or suspension/revocation of a drivers license or registration.
Which Homeowners policy form provides the greatest degree of coverages and is known to be the most comprehensive ?
HO5
Temporary insurance that can be granted either orally or written is defined as:
Binder
List the 4 coverage benefits of coverage included in PIP insurance
1.Medical – 80%
2.Wage loss – 60%
3.Replacement services – 100%
4.Death - $5,000
The Florida Law that states that if a property has a total loss, the insurer must pay the policy limits is known as:
Florida Value Policy Law
Rob has PIP with a $1,000 deductible. He has an accident and incurs $5,000 in medical bills. How much will his PIP pay?
$3200
$5000 in bills, minus his $1,000 deductible, then multiply by 80% (which is how much is covered for medical expenses)
If an insured has an HO-3 policy with $150,000 for Coverage A. How much Coverage D does he have?
$45,000 (30% of Coverage A)
To return the insured back in the same financial status they were prior to the loss is called?
Contract of Indemnity
What 2 coverages are required in order to comply with the Florida Financial Responsibility Law are:
Bodily Injury and Property Damage Liability
When the insured transfers his rights against the other party to his insurer, is known as:
Subrogation
***DAILY DOUBLE****
List the order of auto coverages that would apply in the event of an accident, assuming that the insured was fully covered
PIP
Liability
Uninsured Motorist
Medical Payments
What are the basic limits for Section II coverages E & F under the homeowners policy?
$100,000 liability / $1,000 medical Payments
Name the 3 loss settlement valuations:
Actual Cash Value
Agreed Value
Replacement
List the three options available to an insured when selecting or rejecting Uninsured Motorist coverage
1. Reject UM coverage
2. Elect UM coverage with limits equal to or lower than the bodily injury limits
3. Elect Non-stacked UM coverage
List the 3 rights of a mortgage company/lender:
1. Receive advance notice of cancellation
2. Pay mortgage even if the insured commits fraudulent acts
3. Pay the premium on behalf of the insured
Mechanical Break Insurance provides coverage for new and used vehicles up to how many month and miles, respectively
New – 36 months or 36,000 miles
Used – 12 months or 12,000 miles
List 3 controlled lines in regards to an Personal Inland Marine policy.
Cameras, musical instruments, fine arts, stamps/coins, jewelry, golfers equipment, silver, & furs