Florida Claims Adjuster Exam, 6-20 All Lines
Adjuster- Florida- Review 2023
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
Adjuster- Florida- Review 2023
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
