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FLORIDA GENERAL LINES AGENT
AND CUSTOMER REP STUDY
MANUAL GLOSSARY Questions and
Correct Answers Rated A+ Latest
Versions 2025
A deductible, which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy, limits. - ANSWER-Percentage Deductible: A Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims without reasonable investigation, etc.
- ANSWER-Unfair Insurance Trade Practices Act: This form belongs to the Commercial General Liability coverage part ofthe Commercial Package Policy. It covers liquor liability, which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, sewing or furnishing alcoholic beverages. - ANSWER-Liquor Liability Coverage: A Boiler and Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs, i.e., overtime, or express transportation charges. - ANSWER-Expediting Expenses: An endorsement to the Business Auto Policy, which covers named persons for non—business use of autos, they do not own. Used when the named insured furnishes an auto to another, such as an employee, who does not own his or her own car. - ANSWER-Drive Other Car Coverage: A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage which occur during the policy period, regardless of when claim is made.
The party (often the insurance company), which agrees to be responsible for loss, which may result if the principal does not keep his promise. - ANSWER-Surety: Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public. - ANSWER- Blue Sky Bond: Coverage that can be added to a Garage policy by endorsement to insure a dealer against loss from voluntarily parting with a covered auto by trick or scheme or from acquiring an auto from someone who does not have legal title. - ANSWER-False Pretense Coverage: A form, which is a part ofthe Commercial Property Coverage Part ofthe 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. An earthquake form is also available. - ANSWER-Causes of Loss Form: Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party. - ANSWER-Surety Bonds: A category of Surety bonds furnished by principals who are elected or appointed to till positions of trust, guaranteeing their faithful and honest performance in office. - ANSWER-Public Official Bonds: A principle of insurance, which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse. - ANSWER- Indemnity: In Ocean Marine insurance, a loss, which occurs when property is not completely destroyed but the cost to salvage or repair the property, would exceed its value. - ANSWER-Constructive Total Loss:
Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc. - ANSWER-Supplementary Payments: In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims ofall persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits. - ANSWER-Split Limits: Coverage provided under a Worker's Compensation policy to cover the employers' liability arising out of employee's work-related injuries. - ANSWER-Employers' Liability Coverage: Damages awarded to make an example of the wrongdoer. - ANSWER- Exemplary Damages: A Commercial Crime Coverage form that covers loss to property other than money or securities from robbery of a custodian, robbery outside the premises and safe burglary. - ANSWER-Robbery And Safe Burglary Coverage: Insurance that provides 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 Property portion of the Commercial Package Policy. - ANSWER- Builder's Risk Coverage Form: Those coverages under which the insured obtains protection against a legal obligation to pay damages to others because of injuries to persons or damage to property. - ANSWER-Third—Party Insurance Coverage:
A standard Liability insurance clause that means that insurance applies separately to each insured. - ANSWER-Severability Clause: Part of the Commercial Package policy, the Farm Coverage Part provides both property and liability forms that can be used to provide farm coverage on either a monoline or package basis. - ANSWER-Farm Coverage Part: A Boiler and Machinery Coverage form for small a business that provides somewhat broader coverage than the standard Small Business Boiler and Machinery. - ANSWER-Small Business Boiler And Machinery Broad Form: Statement of something that is known to be untrue. - ANSWER- Misrepresentation: Insurance which covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. Part of the Commercial Package Policy. - ANSWER-Boiler and Machinery Coverage Form: Automobile coverage designed to provide protection for the insured should he or she be in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss. - ANSWER- Uninsured Motorist Coverage: Insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with "Named Perils" insurance, which names the peril or perils insured against. - ANSWER-AII Risk Insurance: A type of Health insurance that cannot be canceled during the policy term, but for which the company reserves the right to non renew the policy at expiration. - ANSWER-Optionally Renewable:
All Risks Commercial Inland l/larine Coverage form that covers scenery, costumes and theatrical property for either a single production or blanket for all productions. - ANSWER-Theatrical Property Coverage Form: When two or more coverages or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less. See Excess insurance. - ANSWER-Primary Insurance: The withholding of a material fact from the insurance company. May void the policy. - ANSWER-Concealment: In bonds, the party who promises to do (or not to do) a specific thing. - ANSWER-Principal: Part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It covers insureds in the medical and dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments. - ANSWER-Physician's and Surgeon's Equipment Coverage Form: Part of the Boiler and Machinery Coverage part of the Commercial Package Policy. Defines the objects covered by the Boiler and Machinery Coverage form in great detail. - ANSWER-Objects Definition Form: A form containing conditions that apply to all coverages issued under the Commercial Package Policy program. - ANSWER-Common Policy Conditions: An organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and tiles standard rates for many lines of insurance. Also develops standardized forms. - ANSWER-Insurance Service Office (ISO):
The primary coverage form of the Commercial Package policy's Commercial Property Coverage part. Covers a business's buildings, business personal property and the personal property of others. - ANSWER-Building and Personal Property Coverage Form: A form that is part of the Commercial Auto Coverage Part and is designed specifically for the trucking industry. Includes Trailer Interchange insurance. - ANSWER-Trucker's Coverage Form: Written 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. - ANSWER- Agreed Value: A Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances. - ANSWER- Double Indemnity: Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors. - ANSWER-Insolvency Bond: A deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss. - ANSWER-Straight Deductible: A simplified, easy-to-read Commercial Package Policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime/Employee Dishonesty, Boiler and Machinery, Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and EmpIoyment—Related Practices Liability. Forms may be used in the package policy or may be used to issue monoline policies. - ANSWER-Commercial Package Policy: (1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and
sworn by the insured, setting forth the claim information required by the policy. - ANSWER-Proof of Loss: See Personal injury Protection. - ANSWER-No—Fault Insurance: Health insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies and related items. - ANSWER-Hospitalization Expense Insurance: A Surety bond that can be provided as evidence of compliance for an insurance requirement. - ANSWER-Self-Insurance Bond: Insurance, which provides both liability and physical damage (also called Aircraft Hull insurance) coverage for aircraft. Liability coverage is available separately for hangar keepers and airport owners or operators. - ANSWER-Aviation Insurance: A Commercial Crime form that covers loss from forgery or alteration of checks, drafts, promissory notes or similar instruments. - ANSWER- Forgery or Alteration Coverage Form: The event, which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage, which occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is Bl or PD, which occurs on or after the retroactive date and for which claim is made during the policy period. - ANSWER-Coverage Trigger: A form, which is a part of the Commercial Auto Coverages and is designed to cover the auto exposures of businesses, other than truckers or garages. - ANSWER-Business Auto Coverage Form:
Property coverages which are closely associated and frequently sold with tire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, etc. - ANSWER-Allied Lines: One of the Commercial Crime Coverage forms, which are a part of the Commercial Package policy. Provides coverage for property other than money and securities if caused by burglary or attempted burglary or robbery of a watchperson. - ANSWER-Premises Burglary Coverage Form: In automobile insurance, a broad physical damage coverage, which covers all property losses except collision and those perils or property, which are specifically excluded. - ANSWER-Comprehensive Coverage: The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances. - ANSWER- Negligence: An Inland Marine form, which covers property sold on an installment basis. - ANSWER-Installment Sales Floater: A coverage form that is part of the Commercial Auto Coverage Part and which provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc). Includes coverage for liability, physical damage and garagekeepers losses arising out of owned, non-owned and hired autos. - ANSWER-Garage Coverage Form: A period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage with insurance that has a retroactive date later than the date shown in the Declarations, or with an Occurrence form. The Basic
Extended Reporting Period runs five years. The Supplemental Extended Reporting Period has unlimited duration but is available only by endorsement for an extra charge. - ANSWER-Extended Reporting Period: A type of Health insurance intended to provide protection against catastrophic losses. Some forms are designed to complement or supplement basic hospital/surgical insurance; others provide both basic and catastrophic illness coverage. - ANSWER-Major Medical Insurance: A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. - ANSWER-Insurance: The amount of a bond. - ANSWER-Penalty: A form of insurance, which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately. - ANSWER-Products and Completed Operations: Covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package Policy. (p.68) - ANSWER-Extra Expense Coverage Form: See Court bond. - ANSWER-Litigation Bond: A Commercial Inland Marine Coverage form that provides "all risk" coverage for neon, fluorescent, automatic or mechanical electrical signs.
- ANSWER-Signs Coverage Form: The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to
A Boiler and Machinery Coverage form designed specifically for small businesses. Does not require attachment of Objects Definition form, since definitions are built in. - ANSWER-Small Business Boiler And Machinery Coverage: See Payment Bond. - ANSWER-Labor and Materials Bond: An "all risk" Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an empIoyee's custody or elsewhere. - ANSWER-Camera and Musical Instrument Dealers Form: Part 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. - ANSWER-Commercial Articles Coverage Form: An optional provision in Health insurance policies that states that if the insured becomes totally disabled, premiums are waived and coverage remains in force. - ANSWER-Waiver of Premium: Physical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both. - ANSWER-Aircraft Hull Insurance: A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full. - ANSWER-Franchise Deductible: An endorsement to the Homeowner's policy that schedules specific amounts of coverage for one or more of several categories of personal property on an "all risks" basis. - ANSWER-Scheduled Personal Property Endorsement:
Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability. - ANSWER-Contingent Liability: Line of insurance, which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness. - ANSWER-Disability Insurance: Coverage, which applies only after limits of primary insurance have been exhausted. See Primary Insurance. - ANSWER-Excess Coverage: Inland Marine insurance designed to cover computer hardware and software. - ANSWER-Electronic Data Processing Coverage: In Ocean Marine insurance, a partial loss that is not part of a general sacrifice of property (general average). - ANSWER-Particular Average: Personal Inland Marine Floater, which provides "all risk" coverage on unscheduled personal property. - ANSWER-Personal Property Floater: An Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damaging another ship. - ANSWER-Running Down Clause: In Disability or Health insurance, a period of time between issuance and acceptance before sickness benefits begin. - ANSWER-Waiting Period: See Fiduciary Bonds and Court Bonds. - ANSWER-Judicial Bond and Bonds Required By Courts: Insures the individual for financial losses, which arise out of the person's responsibilities to others imposed by law or contract. - ANSWER- Liability Insurance:
Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy. - ANSWER-Cargo Liability Coverage: A multi—peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses. - ANSWER- Businessowner's Policy: Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.
- ANSWER-Mortgagee Rights: Inland Marine coverage form, which provides "all risk" coverage for valuable papers such as manuscripts, blueprints, records, and other printed documents. - ANSWER-Valuable Papers Insurance: An endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto. - ANSWER-Named Non-owner Coverage: A single coverage amount, which applies generally to personal property. Also called blanket insurance. - ANSWER-Unscheduled Coverage: Coverage written to cover public and passenger liability and property damage liability. - ANSWER-Aircraft Liability Insurance: A document, which is attached to the policy and modifies or changes the original policy in some way. - ANSWER-Endorsement: Policy limits that apply to all bodily injury and property damage arising from a single accident. - ANSWER-Single Limits: The assertion of a legal right against an insurer that carries with it a demand for appropriate relief. - ANSWER-Claim:
A clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss orto minimize a loss which has occurred. - ANSWER-Sue and Labor Clause: A type of Employee Dishonesty insurance that covers loss only from named employees. - ANSWER-Name Schedule Coverage: Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability. - ANSWER-Vicarious Liability: An allied lines policy, which provides coverage for the dwellings and personal property of individuals and families against fire and additional perils. - ANSWER-Dwelling Policy: Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs. - ANSWER-Crime Coverage Plans: The section of an insurance policy, which states which losses will be indemnified, what property is covered, which perils are insured against. - ANSWER-Insuring Agreement: A type of Health insurance that reimburses the insured for non—surgicaI care provided by a physician. - ANSWER-Physicians Coverage: The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss Replacement Cost - Depreciation). - ANSWER- Actual Cash Value (ACV): A type of Health insurance designed to cover medical costs not payable under the Federal Medicare program. - ANSWER-Medicare Supplement Insurance:
