Florida Insurance Exam Questions and Answers 100% Correct

Florida Insurance Exam Questions and Answers 100% Correct Risk - Correct Answer ️️ -the chance of financial loss Risk is NOT the loss itself, but the _________ of loss. - Correct Answer ️️ -CHANCE Policy - Correct Answer ️️ -a written contract for effecting insurance and includes Clauses, Riders, endorsements, and papers which are part of the contract Insurance - Correct Answer ️️ -a contract where one undertakes to indemnify another or pay a specific amount determined on contingencies Binders - Correct Answer ️️ -temporary insurance which can be made orally or written property insurance - Correct Answer ️️ -where payment is made directly to the insured or other named interest liability insurance - Correct Answer ️️ -where payment is made on behalf of the insured to another Indemnity contract - Correct Answer ️️ -one-party should be put back in the same Financial condition they were before the loss. Never profit from A Loss. replacement cost - Correct Answer ️️ -given new for old agreed value - Correct Answer ️️ -specific amount agreed in advance Florida value policy law - Correct Answer ️️ -paid limit for total loss liability - Correct Answer ️️ -pays amount that exceeds insured's resources insurable interest - Correct Answer ️️ -insured would suffer economic loss peril - Correct Answer ️️ -a contingency that may cause a loss example Wind, Fire, theft hazard - Correct Answer ️️ -a condition that increases the likelihood of a loss from a covered peril physical hazard - Correct Answer ️️ -physical characteristics that increase the probability and severity of loss example ice-covered steps moral hazard - Correct Answer ️️ -intentional loss example steal from employer Morale hazard - Correct Answer ️️ -accident prone or carelessness example did not lock the car door proximate cause - Correct Answer ️️ -root cause a doctrine that states when there is an unbroken connection between An Occurrence and damage that grows out of the occurrence, then the resultant damage is all part of the occurrence. direct loss - Correct Answer ️️ -physical harm to tangible property indirect loss - Correct Answer ️️ -economic loss which flows as a consequence of the direct loss example hotel stay after a fire actual cash value - Correct Answer ️️ -is the current cost to replace the item minus depreciation replacement cost - Correct Answer ️️ -is the actual cost to repair or replace property valued policy - Correct Answer ️️ -is where the insurer agrees, in advance, that the covered limit applicable to the item will be considered its value. This applies to items where ACV or replacement cost is difficu