Exam (elaborations)
2-20 General Lines Florida Insurance Questions and Answers 2024
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2-20 General Lines Florida Insurance
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2-20 General Lines Florida InsuranceAbandonment Clause - answer often contained in a p/c policy stating that the insured
cannot abandon damaged property to the (dump on) insurer and demand
reimbursement for the full value.
Accounts Receivable Coverage Form - answer Inland Marine Coverage form which
insures against loss the insured suffers because of an inability to collect from customers
when AR records are damaged.
Accident - answerA sudden fortuitous event
Actual Cash Value (ACV) - answerCurrent cost to replace and item of property at the
time of loss, less an allowance for depreciation. Most basic way to determine amount of
reimbursement for a loss (Replacement Costs -Depreciation). Safeguards in place to
ensure no profit by insureds ("new for old"). i.e coinsurance or stipulations that the
repairs must be done prior to payment. Contrasts to "valued policies"
Admitted Aircraft Liability Coverage - answerCoverage sometimes written in conjunction
w/ Aircraft Passenger Liability which can provide reimbursement for death of
dismemberment.
Aggregate Limit - answerType of policy limit found in liability policies which limits
coverage to a specified total amount for all losses occurring within the policy period.
Agreed Value - answerWritten with property insurance policies. It waives the
coinsurance clause and requires the insured to carry insurance equal to at least 80% of
a signed statement of values filed with the company
Aircraft Hull Insurance - answerPhysical damage insurance provided to cover the loss
or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Liability Insurance - answerCoverage written to cover public and passenger
liability and property damage
Airport and Air Meet Liability - answerCoverage that provides protection to airports for
bodily injury and property damage liability
Allied Lines - answerProperty coverages which are closely associated and frequently
sold w/ fire ins. i.e. Dwelling, Earthquake, Sprinkler ins.
,All Risk Insurance - answerBetter known as "open perils" insurance. Ins protecting
insured from loss arising from any peril other than those perils specifically excluded by
name. Opposite of Named Perils
Annual Transit Policy - answerInland Marine transportation insurance which insures a
property owner for goods being transported.
appraisal clause - answerprovides an appraisal procedure when the insured and the
insurer are in disagreement regarding the amount of the loss. Insured and insurer each
choose and appraiser, who, failing to agree, select and umpire. Agreement by 2/3 will
be decisive (court might be the 3rd). Note the appraisal process is not for the purpose of
determining if the claim is covered, only to determine the proper loss payment.
Assignment Clause - answerCondition in policy that specifies that transferring the policy
to another is not valid unless the company consent in writing.
Automobile Mechanical Breakdown Insurance - answerCoverage designed to indemnify
against the costs of mechanical failures or breakdowns not covered under the
manufacturer's warranty.
Avaition Insurance - answerprovides both liability and physical damage coverage for
aircraft. aka Aircraft Hull Insurance. Liablity coverage available seperately for
hangarkeepers and airport owners.
Bail Bond - answerSurey bond that guarantees the principal will appear in criminal
proceedings.
Bailee - answerOne who has temporary custody of property belonging to another. i.e.
dry cleaners
Bailee's Policy - answerInland Marine ins. obtained by bailee, to cover loss or damage
to customers' property in the bailee's custody, without regard to liability.
Barratry - answerIllegal acts committed willfully by a ship's master or crew for the
purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking,
abandonment and embezzlement of cargo.
Bid Bonds - answerType of K bond which guarantees the obligee that if a contractor's
bid is accepted, the contracor will provide the required performance bond.
Binder - answerOral or written statment providing immediate insurance protection, valid
for a specified period. Desined to provide temporary coverage until a policy can be
issued or denied.
Blanket Insurance - answerInsurance where a single amount of insurance applies to two
or more coverage items which are subject to specific ratings. May result in coverage
,advantages to the insured. $300 blanket on 2 buildings (100K and 200K). Building #1 is
detroyed. Insured recovers 110K under blanket policy. Contrast against Specific
Insurance. Also, a type of Employee Dishonesty coverage that covers the loss caused
by any employee. Contrast Name Schedule coverage and Position Schedule coverage.
Blue Sky Bond - answerSurey bond required of investment companies, guaranteeing
against misrepresentations of securities and defrauding the public.
Bodily Injury - answerUsually defined to include physical harm, sickness, disease, or
death resulting from any of these.
Boiler and Machinery coverage form - answercovers the insured against loss (liability
and physical damage) arising out of the use of steam boilers or other machinery. Part of
a Commercial Package Policy.
Builder's Risk Coverage Form - answerprovides coverage for buildings under
construction as well as equipment to service the building, owned materials and supplies,
and temporary structures used in construction. Part of the Commercial Propery portion
of the Commericial Pakage Policy.
Building and Personal Property Coverage Form - answerprimary coverage form of the
Commercial Package policy's Commercial Propery Coverage part. Covers a business's
buildings, business personal property and personal property of others.
Burglary - answerdefined in Crime insurance policies, the taking of property by a person
unlawfully entering or leaving the premises, as evidence by visible signs of forced entry
or exit.
Business auto coverage form - answerform which is part of the Commercial Auto
Coverages and is designed to cover the auto exposures of business, other than truckers
or garages.
Business income form - answercoverage which reimburses the insured for loss of
earning due to an interruption in operations caused by a covered peril: available w/ or
w/out extra expense. One of the Commercial Property forms available as part of the
Commercial Package Policy.
Business pursuits endorsement - answerendorsement to Homeowners policy which
provides coverage against occupational liabilities for those who are employed by others.
Businessowner's Policy - answermulti-peril, multi-line package policy designed to
provide broad property and casualty coverages for small businesses.
Camera and Musical Instrument Dealers Form - answerall risk Inland Marine dealers
form that covers stocks of merchandise at the insured's premises, in transit, away in an
employee's custody or elsewhere.
, Cargo Liability coverage - answerProtects against legal liability for loss or damage to
cargo or baggage. May be part of an Ocean Marine or Aviation Policy
Casualty insurance - answerinsurance line which historically included a wide variety of
unrelated coverages other than life and health. One important coverage is the casualty
line is Liability. Casualty also includes: Aviation, Auto, Boiler and Machinery, Crime,
Workers Comp and Surety Bonds
Causes of Loss Form - answerform which is part of the Commercial Propery Coverage
Part of the Commercial Package Policy. It specifies what perils are insured against and
lists exclusions. Several different versions provide increasingly broad coverage from
Basic to Broad to Special. Earthquake form is also available
Claim - answerAssertation of a legal right against an insurer, that carries with it damand
for appropriate relief.
Claims made form - answerLiability form which is part of the Commercial General
Liability part of the Commecial Package Policy. Covers bodily injury and property
damage which occurs on or after the retroactive date, if any, and for which a claim is
first made during the policy period.
Coinsurance Clause - answerMethod of providing equity in premiums by granting lower
lower rates to those insureds whoc accept the responsibility of insuring for amounts
which reflect a high percentage of value of the subject property. It requires an insured to
pay part of a loss if the coverage provided under the policy limits is less that a specified
percentage of the value of the property at the time of loss.
Collision - answertype of physical damage insurance which covers loss due to the
insured object striking another object. may also include the upset of the insured object.
Commercial articles coverage form - answerPart of the Inland Marine Coverage part of
the Commercial Package Policy. Provides all risk coverage for photographic equipment
and musical instruments on either a scheduled or blanket basis or both.
Commercial Package Policy - answersimplified, easy-to-read Commercial Package
Policy introduced by the ISO. Includes General Liability, Commercial Property,
Commercial Inland Marine, Commercial Crime/Employee Dishonesty, Boiler/Machinery,
Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and
Employment-Related Practices Liability. Forms may be used in the package policy or
may be used to issue monoline policies.
Common Policy Conditions - answerform containing conditions that apply to all
coverages issued under the Commercial Package Policy.
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