Florida Claims Adjuster Exam, 6-20 All Lines
Adjuster- Florida- Review| 332 Questions| 41 Pages
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 Correct Answer: All policies provide that any changes to the policy be made by the
insurer, in writing.
Policy Period Correct Answer: The condition states that coverage applies only to losses or
occurrences that take place during the policy period. (Prior to the stated date and time of
termination).
Policy Territory Correct Answer: Condition limiting coverage to occurrences or losses that take
place only within a stated geographical region.
Other Insurance Correct Answer: The principle of indemnity dictates against duplicate recovery
for the same loss.
,Cancellation Correct Answer: The insured may cancel at any time, for any reason, without
advance notice. If the conpany wishes to cancel, it must provide some degree of advance notice
so the insured will have time to replace the coverage.
Appraisal Correct Answer: A written contract of or written agreement for or effecting insurance,
or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements
and papers which are a part thereof.
Insurance Correct Answer: Is a contract whereby one undertakes to indemnify another or pay or
allow a specified amount or a determinable benefit upon determinable contingencies.
Binder Correct Answer: Acts as a temporary contract until the policy is issued.
How many days should an insurer give for prior notice of cancellation of a binder? Correct
Answer: 5 days.
Property Insurance Correct Answer: Any insurance wherein payment by the insurer will be paid
directly to the insured or other specifically named interests.
Liability Insurance Correct Answer: Payment will be on behalf of the insured to another, based
upon the insureds liability to the recipient. Simply stated, Liability is "Negligence of the
Insured".
Loss Payee Clause Correct Answer: A Clause in a contract of insurance that provides, in the
event of payment being made under the policy in relation to the insured risk, that payment will
be made to a 3rd party rather than to the insured beneficiary of the policy.
Mortgage Clause Correct Answer: A property insurance provision granting special protection
for the interest of a mortgagee named in the policy, in effect setting up a separate content
between the insurer and the mortgagee.
Other Structures Correct Answer: Covers items that are not permanently attached to the main
dwelling, such as a shed, fence, etc.
Commercial Inland Marine Correct Answer: Helps identify the kinds of risk which are eligible
for either ocean or inland Marine insurance.
Building Ordinance Coverage Correct Answer: This endorsement covers the insured for
enforcement of laws which require demolition of undamaged portions of buildings.
Umbrella Policy Correct Answer: Covers a much higher limit and goes above and beyond
claims directly relating to your home and auto, it provides your assets from an unforeseen event,
such as a tragic accident in which you are held responsible for damages or bodily injuries.
Known Loss Correct Answer: Prevents an insured from coverage if the insured knew the loss
was probable at the time of the insurance contract.
, Value Reporting Correct Answer: The limit of coverage is set at an amount somewhat higher
than expected peak values.
Commercial Property Insurance Correct Answer: Covers direct and indirect losses related to
properties other than one to four family dwellings and farm properties.
Employee Theft Correct Answer: Provides coverage for loss of or damage to money, securities,
and other property resulting from theft committed by an employee. Theft is defined as the
unlawful taking of money, securities or other property to the deprivation of the insured.
Bid Correct Answer: Aggreement to fulfill a contractual obligation used frequently in
construction and supplying goods.
Health Maintenance Organization (HMO) Correct Answer: Provides comprehensive health
services to its members for a prepaid fixed fee, equivalent to an insurance premium.
Preferred Provider Organization
(PPO) Correct Answer: A selected group of hospital's and medical practitioners in a given area
who have joined together in an effort to reduce medical costs.
Estoppel Correct Answer: Is an equitable principle to the effect that if one intentionally or
unintentionally creates the impression that a certain fact exists, and an innocent party relies on
that impression and is damaged as a result, the guilty party may be legally prohibited(estopped)
from asserting that the fact does not exist.
Salvage Correct Answer: Motor vehicle or mobile home is a total loss.
Junk Correct Answer: Any material which is or may have been a motor vehicle or mobile home,
with or without all component parts, which is inoperable and which material is in such condition
that its highest or primary value is either in its sale or transfer as scrap metal.
Fiduciary Agent Correct Answer: Agent for a principal/Client. The legal or special relationship
of trust, confidence, or responsibility between 2 or more parties.
Domestic Insurer Correct Answer: Insurer is one formed under the laws of its this state.
Foreign Insurer Correct Answer: Insurer is one formed under the laws of any state, district
territory, or commonwealth of the United States other than this State.
Alien Insurer Correct Answer: Insurer is an insurer other than a domestic or foreign insurer.
Appointment Correct Answer: The authority given by an insurer or employer to a licensee to
transact insurance or adjust claims on behalf an insurer or employer.
Adjuster- Florida- Review| 332 Questions| 41 Pages
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 Correct Answer: All policies provide that any changes to the policy be made by the
insurer, in writing.
Policy Period Correct Answer: The condition states that coverage applies only to losses or
occurrences that take place during the policy period. (Prior to the stated date and time of
termination).
Policy Territory Correct Answer: Condition limiting coverage to occurrences or losses that take
place only within a stated geographical region.
Other Insurance Correct Answer: The principle of indemnity dictates against duplicate recovery
for the same loss.
,Cancellation Correct Answer: The insured may cancel at any time, for any reason, without
advance notice. If the conpany wishes to cancel, it must provide some degree of advance notice
so the insured will have time to replace the coverage.
Appraisal Correct Answer: A written contract of or written agreement for or effecting insurance,
or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements
and papers which are a part thereof.
Insurance Correct Answer: Is a contract whereby one undertakes to indemnify another or pay or
allow a specified amount or a determinable benefit upon determinable contingencies.
Binder Correct Answer: Acts as a temporary contract until the policy is issued.
How many days should an insurer give for prior notice of cancellation of a binder? Correct
Answer: 5 days.
Property Insurance Correct Answer: Any insurance wherein payment by the insurer will be paid
directly to the insured or other specifically named interests.
Liability Insurance Correct Answer: Payment will be on behalf of the insured to another, based
upon the insureds liability to the recipient. Simply stated, Liability is "Negligence of the
Insured".
Loss Payee Clause Correct Answer: A Clause in a contract of insurance that provides, in the
event of payment being made under the policy in relation to the insured risk, that payment will
be made to a 3rd party rather than to the insured beneficiary of the policy.
Mortgage Clause Correct Answer: A property insurance provision granting special protection
for the interest of a mortgagee named in the policy, in effect setting up a separate content
between the insurer and the mortgagee.
Other Structures Correct Answer: Covers items that are not permanently attached to the main
dwelling, such as a shed, fence, etc.
Commercial Inland Marine Correct Answer: Helps identify the kinds of risk which are eligible
for either ocean or inland Marine insurance.
Building Ordinance Coverage Correct Answer: This endorsement covers the insured for
enforcement of laws which require demolition of undamaged portions of buildings.
Umbrella Policy Correct Answer: Covers a much higher limit and goes above and beyond
claims directly relating to your home and auto, it provides your assets from an unforeseen event,
such as a tragic accident in which you are held responsible for damages or bodily injuries.
Known Loss Correct Answer: Prevents an insured from coverage if the insured knew the loss
was probable at the time of the insurance contract.
, Value Reporting Correct Answer: The limit of coverage is set at an amount somewhat higher
than expected peak values.
Commercial Property Insurance Correct Answer: Covers direct and indirect losses related to
properties other than one to four family dwellings and farm properties.
Employee Theft Correct Answer: Provides coverage for loss of or damage to money, securities,
and other property resulting from theft committed by an employee. Theft is defined as the
unlawful taking of money, securities or other property to the deprivation of the insured.
Bid Correct Answer: Aggreement to fulfill a contractual obligation used frequently in
construction and supplying goods.
Health Maintenance Organization (HMO) Correct Answer: Provides comprehensive health
services to its members for a prepaid fixed fee, equivalent to an insurance premium.
Preferred Provider Organization
(PPO) Correct Answer: A selected group of hospital's and medical practitioners in a given area
who have joined together in an effort to reduce medical costs.
Estoppel Correct Answer: Is an equitable principle to the effect that if one intentionally or
unintentionally creates the impression that a certain fact exists, and an innocent party relies on
that impression and is damaged as a result, the guilty party may be legally prohibited(estopped)
from asserting that the fact does not exist.
Salvage Correct Answer: Motor vehicle or mobile home is a total loss.
Junk Correct Answer: Any material which is or may have been a motor vehicle or mobile home,
with or without all component parts, which is inoperable and which material is in such condition
that its highest or primary value is either in its sale or transfer as scrap metal.
Fiduciary Agent Correct Answer: Agent for a principal/Client. The legal or special relationship
of trust, confidence, or responsibility between 2 or more parties.
Domestic Insurer Correct Answer: Insurer is one formed under the laws of its this state.
Foreign Insurer Correct Answer: Insurer is one formed under the laws of any state, district
territory, or commonwealth of the United States other than this State.
Alien Insurer Correct Answer: Insurer is an insurer other than a domestic or foreign insurer.
Appointment Correct Answer: The authority given by an insurer or employer to a licensee to
transact insurance or adjust claims on behalf an insurer or employer.
