Exam (elaborations)
II Florida Statutes, Rules and Regulations Pertinent to General Lines Insurance Questions with solutions
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II Florida Statutes, Rules and Regulations Pertinent to General Lines Insurance
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II Florida Statutes, Rules andRegulations Pertinent to General Lines
Insurance
Payment of Claims - answer Specifies how and to whom claims payments are to be
made
Premium Financing - answer If the policyowner pays the premium back to the agency
within 90 days of the premium due date, it is not considered premium financing. If more
than 10% of the agency's premium accounts receivable are being collected more than
90 days after the premium due date, the agency is engaged in premium financing which
requires a special license.
Hurricane Deductible - answer Amount you must pay out-of-pocket before hurricane
insurance will kick in. Many insurers in hurricane-prone states are selling homeowners
insurance policies with percentage deductibles for storm damage, instead of the
traditional dollar deductibles used for claims such as fire and theft. Percentage
deductibles vary from one percent of a home's insured value to 15 percent, depending
on many factors that differ by state and insurer.
Wind Mitigation/code issues - answerThe purpose of a windstorm or wind mitigation
inspection is to determine the appropriateness of a given structure's construction in the
event of strong winds, such as those present in a hurricane. The two prominent roof
types are gable hip
Catastrophic Ground Cover Collapse - answer"Catastrophic ground cover collapse" is
defined as 1). The abrupt collapse of the ground cover; 2). A depression in the ground
cover clearly visible to the naked eye; 3). Structural damage to the building including the
foundation; and 4). The insured structure being condemned and ordered to be vacated
If your home is damaged by sinkhole activity, but does not meet all four criteria for
catastrophic ground cover collapse ,you may have foundation cracks, but the home is
still livable - your insurance may not pay for the damage if you do not have sinkhole
coverage.
Sinkholes - answera large surface crater caused by the collapse of an underground
channel or cavern; often triggered by groundwater withdrawal
Hurricane occurrence - answerThe hurricane deductible applies only once during a
hurricane season. All insurers must offer a hurricane deductible of $500, 2 percent, 5
percent and 10 percent of the policy dwelling or structure limits. The percentages are
, based on the total value of the home. By Florida law, property insurance rate filings
must include mitigation discounts or credits.
Fungi - answerCoverage is only provided for loss caused by "fungi", wet or dry rot, or
bacteria if such "fungi", wet or dry rot, or bacteria is the result of a covered peril. The
fungi itself is not a covered peril, however it is covered if it is in result of another peril
such as pipe burst.
Loss of Assessment (Ho-6) - answerEach HO6 condo unit policy automatically includes
loss assessment coverage. And in Florida each HO6 policy is required to provide at
least $2,000 in coverage per the Florida Statutes. The coverage is excess over any
other policy covering the same property, so the association's policy should always
respond first.
Exclusions - answerAside from coverage limits pertaining to the covered perils, general
exclusions eliminates coverage from earth movement damages, water damage from
flood, rising waters, backup of sewers or drains, or underground seepage, power failure
that occurs away from the residence (power grid failure), war, nuclear hazards.
Loss Settlement - answer-Depending on the contract, losses are generally settled on an
actual cash value (ACV) or replacement cost basis
flood - answerQualifying for the National Flood Insurance Program (NFIP) coverage will
depend on your flood zone and community where the property is located. If your
community does not participate with the NFIP, you could still be eligible through a
private carrier.
Citizens Property Insurance Corporation - answerCitizens was created by the Florida
Legislature in August 2002 as a not-for-profit, tax-exempt, government entity to provide
property insurance to eligible Florida property owners unable to find insurance coverage
in the private market. Must have been denied from 2 other carriers in order to qualify
Surplus Lines - answerSurplus lines insurance protects against a financial risk that a
regular insurance company will not take on.
Surplus lines insurance policies are available in a variety of classifications for both
individuals and businesses.
Surplus lines insurance is generally more expensive than regular insurance because the
risks are higher.
Florida Surplus Lines Service Office - answerThe Florida Surplus Lines Service Office
(FSLSO) is a not-for-profit entity created by statute and regulated by the Florida
Department of Financial Services and the Florida Office of Insurance Regulation.
Eligibility for Export - answerStatute 626.916
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