Unit 10: Select Topics in Insurance Flashcards
________________ is the geological activity resulting in ALL of the following:
ABRUPT collapse of the ground cover
Depression in the ground cover CLEARLY VISIBLE TO THE NAKED EYE
STRUCTURAL DAMAGE to the building/dwelling
CONDEMNATION of the building/dwelling by the authorized governmental agency to issue such an order
Catastrophic ground cover collapse
means a landform created by subsidence of soil, sediment, or rock as underlying strata are dissolved by groundwater.
- forms by collapse into subterranean voids created by dissolution of limestone or dolostone or by subsidence as these strata are dissolved.
- If ______ coverage is endorsed deductible options of 1%/2%/5% or 10% of the policy dwelling limit may apply.
Sinkhole
_____________ are the damages incurred by windstorm during a hurricane including the resultant rain, hail and dirt/dust damage to the interior of a building/dwelling if the direct force of the hurricane damaged the building to such an extent that an opening was created.
Hurricane occurrences
Insurer must offer deductibles equal to: $500, 2%, 5%, or 10% of the dwelling limit. Any policy containing a separate hurricane deductible must include in18 point or larger font in bold:
“THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU”.
Any policy with a percentage hurricane deductible (2%/5%/10%) must compute the dollar amount of the deductible and display the deductible in exact dollar terms.
Hurricane Deductibles
Homeowners with dwelling values of less than $_______ may not have a hurricane deductible greater than 10% of the dwelling unless they complete an application form where they must hand-write the following:
“I do not want the insurance on my home to pay for the first (specify dollar amount here) of damage from hurricanes. I will pay those costs. My insurance will not.”
- must obtain a written statement
- hurricane deductibles ARE on a calendar year NOT per occurrence basis
500,000
- is commonly referred to as “mold” and includes any type of fungus, mold, or mildew.
- coverage has been limited by policy language and covered by endorsement in Florida for a very long time.
- limits are $10,000 for each covered loss and $20,000 for the annual policy period.
- There is also a $50,000 limit for Section II Coverage E for Liability for related claims.
Fungi
typically covers –
- total of all losses paid under the endorsement.
- including the cost to remove the fungi.
- including the cost to tear out and replace parts of
the building to access the fungi. - including the cost of testing air or property to
confirm the presence of the fungi.
Fungi coverage
In Florida the HO-6 Condo policy is required to have a minimum of $______ for the Coverage of Loss Assessment.
- Any applicable loss assessment must be made as a result of a direct loss to property.
- Loss assessment coverage is statutorily excess over any other insurance.
2,000
__________________ are for watercraft that are:
- owned inboard or inboard-outboard watercraft.
- rented watercraft exceeding 50 horsepower.
- owned or rented watercraft if powered by a jet
pump.
- owned or rented sailboats if 26 feet or longer.
- owned outboard motorized watercraft exceeding
25 horsepower excluded at inception but covered
if acquired during the policy term.
Homeowner’s Watercraft Policy Exclusions
_________ Coverage may be endorsed to cover Liability for certain watercraft as follows –
- sailboats 26 feet or more in length can be covered, with or without ancillary power; also
- watercraft up to 26 feet in length and powered by an outboard motor exceeding 25 horsepower can be covered with either an inboard motor or an inboard-overboard motor.
Watercraft Coverage may be endorsed to cover Liability for certain watercraft as follows –
___________ in Florida insurance policies –
- Hurricane Deductibles: $500 minimum applies.
- Company must offer insured hurricane deductibles
of 2%, 5%, or 10% - Hurricane deductible applies on an annual basis;
not per occurrence - Hurricane deductibles can only be changed at
renewal - Windstorm coverage can be completely rejected
- Any insured who rejects windstorm coverage must
hand write a specific statement and sign the
statement
Windstorm peril
F.S. 627.712 ________________ requires a Home insurance policyholder who wishes to exclude Wind coverage in their Home Insurance policy to personally hand write the following statutory statement:
“I do not want the insurance on my mobile home to pay for damage from windstorms. I will pay those costs. My insurance will not.”
Windstorm - Wind Exclusion
are required to be fair and timely.
Loss Payments
- Insurance companies are required to provide
copies of estimates relied upon in payment of a
claim. - First part losses may be on an Actual Cash Value,
Replacement Cost Value, or Stated Value Basis. - Payments are made up to policy limits and
respective to any:
- deductibles
- coinsurance
- any other available insurance - In the event of first party losses the insurance
company and insured may use the Arbitration
provision to resolve a dispute.
Loss Settlement
The ______________ requires financial institutions like insurance companies to explain their information-sharing practices to their customers and to safeguard sensitive data.
Insurers are required to –
Provide Financial Privacy.
Safeguard customer’s personal information.
Gramm-Leach-Bliley Act
