Florida Property & Casualty 2-20 Course Notes

HO-2 is a named-peril homeowners form; HO-3 generally uses open-peril dwelling coverage with named-peril personal property; HO-5 is broader open-peril coverage for dwelling and personal property, subject to exclusions. HO-4 is the tenants/renters form; HO-6 is the condominium unit-owners form; HO-8 is designed for certain older homes where modified coverage/valuation is appropriate. Always separate Coverage A/B property, Coverage C personal property, loss of use, liability, and medical-payments concepts; the form and endorsements control the details. DP-1 is the basic dwelling form with limited named-peril coverage; DP-2 is broader named-peril coverage; DP-3 generally provides open-peril coverage on the dwelling/other structures with personal property on a named-peril basis, subject to the form. Dwelling policies are often used for non-owner-occupied or otherwise non-homeowners risks and do not automatically provide the same package of liability protections as a homeowners policy. Do not reverse coverage breadth: DP-3 is generally broader than DP-1.

• Memorizing a slogan instead of reading the policy form or statutory trigger.

• Name the exposure first, then the coverage. Do not start with the answer choices.

Property insurance requires an actual, lawful, and substantial economic interest in the safety or preservation of the property, and Florida law measures it at the time of loss. Ownership is sufficient in many cases but not necessary: mortgagees and others can have an economic interest that would be harmed by property loss. Direct loss is the immediate physical property loss; indirect or consequential loss arises because of the direct loss, such as business-income loss or extra expense. A covered direct property loss does not automatically mean every consequential loss is covered; separate business-income/extra-expense provisions and conditions matter. Actual cash value generally reflects replacement cost less applicable depreciation; replacement cost does not deduct depreciation when the policy conditions for replacement-cost settlement are met. For Florida homeowners dwelling claims, know the statutory payment framework in §627.7011 and distinguish initial payment obligations from later replacement-cost amounts as repairs are performed.

• Memorizing a slogan instead of reading the policy form or statutory trigger.

• Name the exposure first, then the coverage. Do not start with the answer choices.

CGL Coverage A addresses bodily injury and property damage liability; Coverage B addresses personal and advertising injury; Coverage C provides medical payments, subject to policy terms. Core exposures include premises/operations and products-completed operations. Limits include an each-occurrence limit and aggregate limits. CGL is liability insurance for covered third-party claims; it is not the normal coverage for the insured’s own building or inventory damage. Florida personal auto topics include liability, PIP, medical payments, collision, other-than-collision, UM/UIM, insured status, and cancellation/nonrenewal. Florida PIP generally pays 80% of qualifying medical expenses and 60% of qualifying disability/lost-income benefits, subject to statutory terms and limits; initial services/care generally must occur within 14 days. Florida financial responsibility includes a $10,000 property-damage liability requirement in the circumstances governed by §324.022; do not confuse PDL with bodily injury liability.

• Memorizing a slogan instead of reading the policy form or statutory trigger.

• Name the exposure first, then the coverage. Do not start with the answer choices.

Core policy parts include declarations, insuring agreement, definitions, conditions, exclusions/limitations, and endorsements. Read them together rather than treating any one part as the entire contract. Declarations identify the risk and limits; the insuring agreement states the coverage promise; exclusions/limitations narrow it; conditions impose duties; endorsements modify the policy. Applications are underwriting representations and must be complete and accurate; material misrepresentation or concealment can create serious coverage/contract issues. A binder is temporary evidence of insurance. Florida §627.420 permits oral or written binders for covered lines, subject to statutory and insurer-authority limitations, and generally incorporates the usual policy terms except as superseded by the binder. Cancellation ends coverage before the policy expiration date; nonrenewal means the insurer will not continue coverage for a new term. Notice rules depend on policy type, timing, and reason. Do not memorize one universal notice period. Florida residential and auto statutes contain different timelines and exceptions.

• Memorizing a slogan instead of reading the policy form or statutory trigger.

• Name the exposure first, then the coverage. Do not start with the answer choices.

Florida DFS handles functions including agent/adjuster licensing and investigations, consumer services, fraud, and receivership-related responsibilities; the Office of Insurance Regulation (OIR) regulates insurers, rates/forms, and market conduct. The Office of Financial Regulation (OFR) regulates financial-services sectors assigned to it. On exam questions, match the agency to the function rather than treating DFS, OIR, and OFR as interchangeable. A license establishes qualification; an appointment authorizes a licensee to represent an appointing entity where appointment is required. Do not assume an active license alone authorizes every insurance activity. Florida CE generally requires a 4-hour license-specific update course every 2 years plus elective hours. The ordinary elective requirement is 20 hours; a licensee licensed 6 or more years generally has a 16-hour elective requirement, subject to statutory exceptions. Premiums, return premiums, and other insurance funds received in a fiduciary capacity must be properly accounted for, safeguarded, and remitted as required. Commingling, conversion, or failure to account for entrusted funds can lead to discipline; separate-account requirements apply in specified situations.

• Memorizing a slogan instead of reading the policy form or statutory trigger.

• Name the exposure first, then the coverage. Do not start with the answer choices.

Florida residential cancellation/nonrenewal rules are reason- and timing-specific. Separate first-60-day rules, post-60-day restrictions, nonpayment provisions, hurricane/emergency restrictions, and nonrenewal notice rules. Never apply the personal-auto cancellation timetable to homeowners coverage or vice versa. Florida property insurers generally must acknowledge claim communications within 7 calendar days unless a statutory exception applies, and property-claim decision/payment duties are subject to the timelines and exceptions in §627.70131. When all or part of a claim is denied, the insurer must provide the explanation required by the applicable law/policy; late payment can have statutory consequences. Premium finance agreements are regulated contracts. Know written agreement/content requirements, delivery of the agreement, finance-charge disclosure, payment/cancellation mechanics, and the distinction between premium and finance cost. Do not treat premium financing as changing the underlying insurance coverage; it changes how premium is financed and paid.

• Memorizing a slogan instead of reading the policy form or statutory trigger.

• Name the exposure first, then the coverage. Do not start with the answer choices.