Florida Claims Adjuster Examination 6-20 All Lines Adjuster Practice Questions and Study Guide by Insurance Licensing Preparation Resource

Florida Claims Adjuster Exam, 6-20 All
Lines Adjuster- Florida- Review
Questions and Correct Answers
Peril - Correct Answer: Something that causes a loss.



Hazard - Correct Answer: Something that increases the probability that a loss will occur.



Warranty - Correct Answer: A policy condition, either based on information in the insureds application or
inserted by the insurer. It is a guarantee of a fact.



Misrepresentation - Correct Answer: An untrue statement by the insured, made in an application for
insurance but which does not become a part of the policy.



Concealment - Correct Answer: The failure of the insured to reveal relevant facts known to the insured
in
applying for insurance.



Abandonment - Correct Answer: Property insurance policies usually contain an abandonment clause,
stating the insured cannot dump damaged property on the insurer and demand its full value.



Severability - Correct Answer: The insurance applies separately to each insured as if other insureds did
not exist.



Proximate Cause - Correct Answer: The cause having the most significant impact in bringing about the
loss under a first-party property insurance policy, when two or more independent perils operate at the
same time (i.e., concurrently) to produce a loss. Courts employ a set of rules to resolve causation
disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is
more than one peril at work in a fact pattern. Under common law, whether the policy provides coverage
depends on which peril is chosen as the proximate cause.



Direct Loss - Correct Answer: Physical harm to tangible property.

,Indirect Loss - Correct Answer: Economic loss which flows as a result of direct loss.



Actual Cash Value(ACV) - Correct Answer: Replacement Cost minus Depreciation



Coinsurance - Correct Answer: The amount, generally expressed as a fixed percentage, an insured
must pay against a claim after the deductible is satisfied. It's ultimately a way for the insured and
insurer to share responsibility for the risk. It can also help reduce the cost of the insurance policy
premium. Coinsurance can be written on an 80/20, 90/100, or 100% rule.



Personal Contract - Correct Answer: Policies cover people who own and operate things, such as
automobiles.



Conditional Contract - Correct Answer: Also called a hypothetical contract, is a contract agreement
that only requires performance once the delineated conditions are met. This legal agreement requires
prior performance of another agreement or clause in order to be enforceable. If the other agreement
or condition is performed, then the conditional contract is enforceable and the parties are bound to
carry out the terms of the contract.



Contract of Indemnity - Correct Answer: Principle of insurance that provides that when a loss occurs, the
insured should be restored to the approximate financial condition he/she occupied before the loss
occurred, no better or no worse.



Insurable Interest - Correct Answer: the reasonable concern of a person to obtain insurance for any
individual or property against unforeseen events such as death, losses, etc.



Waiver - Correct Answer: 1.) Implied voluntary relinquishment, abandoning a legal advantage, need,
claim or right.

2.) Agreement or added clause of a policy that excludes some losses or limits the sum of a claim, or
extends coverage to add items not in a normal policy.



Express Waiver - Correct Answer: Occurs when the insurer or its representative knowingly gives up a
known right under the insurance contract.

,Implied Waiver - Correct Answer: A waiver that is assumed to be in effect from a person's behavior and
shows he is waiving a right.



Damages - Correct Answer: Monetary compensation that is awarded by a court in a civil action to an
individual who has been injured through the wrongful conduct of another party.



Subrogation - Correct Answer: When an insured has a right to collect damages from another party, but
instead elects to claim the damages under his insurance policy, his rights against the other party are
transferred to the insurer.



Changes-CorrectAnswer:Allpoliciesprovidethatanychangestothepolicybemadebytheinsurer,inwriting.
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PolicyPeriod- i i




CorrectAnswer:Theconditionstatesthatcoverageappliesonlytolossesoroccurrencesthattakeplaceduring
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thepolicyperiod.(Priortothestateddateandtimeoftermination).
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PolicyTerritory- i i




CorrectAnswer:Conditionlimitingcoveragetooccurrencesorlossesthattakeplaceonlywithinastatedgeo
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graphicalregion. i




OtherInsurance- i i




CorrectAnswer:Theprincipleofindemnitydictatesagainstduplicaterecoveryforthesameloss.
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Cancellation- i




CorrectAnswer:Theinsuredmaycancelatanytime,foranyreason,withoutadvancenotice.Iftheconpanywis
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hestocancel,itmustprovidesomedegreeofadvancenoticesotheinsuredwillhavetimetoreplacethecovera
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ge.



Appraisal- i




CorrectAnswer:Awrittencontractoforwrittenagreementfororeffectinginsurance,orthecertificatethereof,
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bywhatevernamecalled,andincludesallclauses,riders,endorsementsandpaperswhichareapartthereof.
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Insurance- i




CorrectAnswer:Isacontractwherebyoneundertakestoindemnifyanotherorpayorallowaspecifiedamounto
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radeterminablebenefitupondeterminablecontingencies.
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, Binder-CorrectAnswer:Actsasatemporarycontractuntilthepolicyisissued.
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Howmanydaysshouldaninsurergiveforpriornoticeofcancellationofabinder?-CorrectAnswer:5days.
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PropertyInsurance- i i




CorrectAnswer:Anyinsurancewhereinpaymentbytheinsurerwillbepaiddirectlytotheinsuredorotherspecif
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icallynamedinterests. i i




LiabilityInsurance- i i




CorrectAnswer:Paymentwillbeonbehalfoftheinsuredtoanother,basedupontheinsuredsliabilitytotherecip
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ient.Simplystated,Liabilityis"NegligenceoftheInsured".
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LossPayeeClause- i i i




CorrectAnswer:AClauseinacontractofinsurancethatprovides,intheeventofpaymentbeingmadeunderthe
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policyinrelationtotheinsuredrisk,thatpaymentwillbemadetoa3rdpartyratherthantotheinsuredbeneficiar
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yofthepolicy.
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MortgageClause- i i




CorrectAnswer:Apropertyinsuranceprovisiongrantingspecialprotectionfortheinterestofamortgageenam
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edinthepolicy,ineffectsettingupaseparatecontentbetweentheinsurerandthemortgagee.
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OtherStructures- i i




CorrectAnswer:Coversitemsthatarenotpermanentlyattachedtothemaindwelling,suchasashed,fence,etc.
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CommercialInlandMarine- i i i




CorrectAnswer:HelpsidentifythekindsofriskwhichareeligibleforeitheroceanorinlandMarineinsurance.
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BuildingOrdinanceCoverage- i i i




CorrectAnswer:Thisendorsementcoverstheinsuredforenforcementoflawswhichrequiredemolitionofund
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amagedportionsofbuildings. i i i




UmbrellaPolicy- i i




CorrectAnswer:Coversamuchhigherlimitandgoesaboveandbeyondclaimsdirectlyrelatingtoyourhomeand
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auto,itprovidesyourassetsfromanunforeseenevent,suchasatragicaccidentinwhichyouareheldresponsible
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fordamagesorbodilyinjuries.
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