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Florida Property & Casualty > Property Basics > Flashcards

Flashcards in Property Basics Deck (25)
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1
Q

Accident

A

A sudden event from which loss or damage results. Unintended.

2
Q

Occurence

A

An accident includes continuous exposure to the same harmful conditions.

3
Q

Pro Rata Cancellation

A

Cancellation of insurance that refunds premium to the insured based on the exact number of days coverage was in effect.

4
Q

Short Rate Cancellation

A

A cancellation that incurs a financial penalty.

5
Q

Flat Cancellation

A

A cancellation that is retroactive to the effective date of the policy. No coverage is provided and the insurer must refund the premium paid.

6
Q

Proximate Cause

A

If two or more perils contributed to a loss, the proximate cause is the one causing the most damage/loss.

7
Q

Binder

A

Max length is 60 days.
-
Contains name of the insurer, the amount, and type of insurance, and the perils insured against.

8
Q

Arbitration

A

Process whereby a disputed claim is decided by a neutral third party.

9
Q

Concurrent Causation

A

A principle holding that when two perils simultaneously cause a loss (both perils are considered proximate cause), the insurer must pay the loss even if one peril is not covered.

10
Q

Non-Concurrency

A

Two or more policies covering the same exposures that don’t have the same policy periods.

11
Q

Difference between Bailee and Bailor?

A

Bailee - A person or any organization to which property is entrusted. Mechanic, valet, etc

Bailor - A person that entrust property to a bailee.

12
Q

Functional Replacement Value

A

The cost to replace property with other property that performs the same function, although it is not identical. Typically used with older homes (victorian).

13
Q

Specific Limit

A

Insures a single item of property for a single limit of insurance.

14
Q

Scheduled Limit

A

insures one or more items of property on a single policy and the amount applying to each is shown on a schedule.

Example: One farm policy insures the home for $100k and the barn for $200k

15
Q

Blanket Limit

A

Insures property located at more than one location OR more than one type of property at the same location OR both.

Example: I got a fat mansion in Gville and a small crib in Ocala. It covers both as well as the business personal property contained in each building.

16
Q

What is the standardized policy structure?

Hint: 4 Parts

A

D - Declarations
I - Insuring Agreement
C - Conditions
E - Exclusions

Additional coverage and endorsements.

17
Q

What’s stated on the Declarations Page?

A

Who, What, Where, When, How much.

18
Q

What’s stated by the insuring agreement?

A

It is the insurance company’s promise to pay the insured.

19
Q

What is stated in the conditions section?

A

States the obligations of the parties to the contract, as well as any other conditions of coverage.

20
Q

Liberalization Clause

A

The insurer can broaden coverage with no increase in premium, without an endorsement.

21
Q

What are the 4 types of Insured?

A
Named Insured
- 
Insured
-
First Named Insured
-
Additional Insured
22
Q

Named Insured

A

If insuring a property, the named insured should be the owner, same with vehicles.

23
Q

First Named Insured

A

The person whose name appears on the declarations first. They are granted rights and responsibilities by the policy that are no granted to other insureds.

24
Q

Additional Insured

A

Under property policy’s, an additional insured is often a co-owner of real property.

25
Q

Coinsurance

A

Only applies in the even of a PARTIAL LOSS.