Florida Public All Lines Adjuster/74 Questions And
Answers/100% Correct
Subordination - Correct Answer -When the insured collets damages from his
or her own insurance company and those damages were caused by negligent
third-party, the insurance company steps into the shoes of the insured and is
entitled to recover the damages actually paid to the insured from the
negligent party
liability insurance - Correct Answer -Means that the payment by the
insurance company will be made to a third-party injured or damaged by the
insured. An insured can we never recover damages from their own liability
policy.
DICE: Declarations, insuring agreement , condition, and exclusions. - Correct
Answer -For fundamental parts of all property and liability insurance
contracts
Proof of Loss - Correct Answer -The evidence offered by the insured to
support the claim for damages and, assigned sworn statement by the
insured verifying that the required according to the policy or the insurance
company.
Severability - Correct Answer -Insurance applies separately to each insured
as if the other insured does not exist. Example: A homeowner who
intentionally set fire to the house will not prevent the bank that holds the
mortgage from recovering insurance for the damage done to the home.
risk - Correct Answer -Insurance policies transfer risk, or the chance of
financial loss.
Primary Policy - Correct Answer -A basic, fundamental insurance policy which
pays first with respect to other outstanding policies followed by an Excess
Policy.
Pro-rata policies - Correct Answer -Will pay the proportion that it's limit bears
to all limits that applied to the loss.
- Correct Answer -Policy A has a limit of 25,000; policy B has a limit of $50K;
A loss is $6000. If we add the policy limits, we have a total of $75,000. Policy
A's limit is the 1/3 of the total limit, therefore policy I will pay 1/3 of the loss,
or $2000. Policy B limit is 2/3 of the total limit therefore policy be will pay 2/3
of the loss or $4000.
This study source was downloaded by 100000860579690 from CourseHero.com on 05-18-2023 02:24:51 GMT -05:00
https://www.coursehero.com/file/183473958/Florida-Public-All-Lines-Adjusterdocx/
, peril - Correct Answer -Fire, windstorm, earthquakes, and flood. Insurance
companies only cover perils
Hazards - Correct Answer -Increase the loss by a peril. There are three types
of hazards.
A physical hazard is illustrated by a broken smoke alarm. The physical
condition of the alarm increases the chance of lost by fire.
Moral hazard is the consensus attitude of the insured. And insured that
intends to commit arson increases the chance that there will be a loss by
fire.
A morale hazard is an unconscious attitude of the insured, i.e. carelessness.
A driver that is text messaging while operating a motor vehicle increases the
chance of loss in an automobile accident.
Lender interests - Correct Answer -Insurance company protect a lender as an
insured. A lender that makes a loan secured by real property is protected by
a mortgage clause or a mortgagee clause. A lender that makes a loan
secured by personal property, such as an auto loan, is protected by a loss
payable clause and is referred to as a loss payee
Actual Cash Value - Correct Answer -replacement cost minus depreciation
Replacement Cost - Correct Answer -Common on buildings however this
valuation appears to violate the principle of indemnity. The principal of
Indemnity provides that the insured shall not profit from the payment made
for loss. Replacement cost provides new for old and therefore appears to
violate this principle
Coinsurance - Correct Answer -Loss x policy amt/ coinsurmace % * FMV =
Recovery
Direct Loss - Correct Answer -Defined as physical harm or damage to tangible
property. Tangible property is a property that you can see touch and feel. Fire
damage to an office building is a direct loss.
Indirect Loss - Correct Answer -Is the economic loss that results from a direct
loss. Therefore the indirect laws that arises from fire damage office building
would be the cost of relocation and any loss of profits while repairing the
business location.
straight deductible - Correct Answer -Is a flat amount subtracted from the
loss. It is the amount of the loss the insured has agreed to be responsible for.
This study source was downloaded by 100000860579690 from CourseHero.com on 05-18-2023 02:24:51 GMT -05:00
https://www.coursehero.com/file/183473958/Florida-Public-All-Lines-Adjusterdocx/
Answers/100% Correct
Subordination - Correct Answer -When the insured collets damages from his
or her own insurance company and those damages were caused by negligent
third-party, the insurance company steps into the shoes of the insured and is
entitled to recover the damages actually paid to the insured from the
negligent party
liability insurance - Correct Answer -Means that the payment by the
insurance company will be made to a third-party injured or damaged by the
insured. An insured can we never recover damages from their own liability
policy.
DICE: Declarations, insuring agreement , condition, and exclusions. - Correct
Answer -For fundamental parts of all property and liability insurance
contracts
Proof of Loss - Correct Answer -The evidence offered by the insured to
support the claim for damages and, assigned sworn statement by the
insured verifying that the required according to the policy or the insurance
company.
Severability - Correct Answer -Insurance applies separately to each insured
as if the other insured does not exist. Example: A homeowner who
intentionally set fire to the house will not prevent the bank that holds the
mortgage from recovering insurance for the damage done to the home.
risk - Correct Answer -Insurance policies transfer risk, or the chance of
financial loss.
Primary Policy - Correct Answer -A basic, fundamental insurance policy which
pays first with respect to other outstanding policies followed by an Excess
Policy.
Pro-rata policies - Correct Answer -Will pay the proportion that it's limit bears
to all limits that applied to the loss.
- Correct Answer -Policy A has a limit of 25,000; policy B has a limit of $50K;
A loss is $6000. If we add the policy limits, we have a total of $75,000. Policy
A's limit is the 1/3 of the total limit, therefore policy I will pay 1/3 of the loss,
or $2000. Policy B limit is 2/3 of the total limit therefore policy be will pay 2/3
of the loss or $4000.
This study source was downloaded by 100000860579690 from CourseHero.com on 05-18-2023 02:24:51 GMT -05:00
https://www.coursehero.com/file/183473958/Florida-Public-All-Lines-Adjusterdocx/
, peril - Correct Answer -Fire, windstorm, earthquakes, and flood. Insurance
companies only cover perils
Hazards - Correct Answer -Increase the loss by a peril. There are three types
of hazards.
A physical hazard is illustrated by a broken smoke alarm. The physical
condition of the alarm increases the chance of lost by fire.
Moral hazard is the consensus attitude of the insured. And insured that
intends to commit arson increases the chance that there will be a loss by
fire.
A morale hazard is an unconscious attitude of the insured, i.e. carelessness.
A driver that is text messaging while operating a motor vehicle increases the
chance of loss in an automobile accident.
Lender interests - Correct Answer -Insurance company protect a lender as an
insured. A lender that makes a loan secured by real property is protected by
a mortgage clause or a mortgagee clause. A lender that makes a loan
secured by personal property, such as an auto loan, is protected by a loss
payable clause and is referred to as a loss payee
Actual Cash Value - Correct Answer -replacement cost minus depreciation
Replacement Cost - Correct Answer -Common on buildings however this
valuation appears to violate the principle of indemnity. The principal of
Indemnity provides that the insured shall not profit from the payment made
for loss. Replacement cost provides new for old and therefore appears to
violate this principle
Coinsurance - Correct Answer -Loss x policy amt/ coinsurmace % * FMV =
Recovery
Direct Loss - Correct Answer -Defined as physical harm or damage to tangible
property. Tangible property is a property that you can see touch and feel. Fire
damage to an office building is a direct loss.
Indirect Loss - Correct Answer -Is the economic loss that results from a direct
loss. Therefore the indirect laws that arises from fire damage office building
would be the cost of relocation and any loss of profits while repairing the
business location.
straight deductible - Correct Answer -Is a flat amount subtracted from the
loss. It is the amount of the loss the insured has agreed to be responsible for.
This study source was downloaded by 100000860579690 from CourseHero.com on 05-18-2023 02:24:51 GMT -05:00
https://www.coursehero.com/file/183473958/Florida-Public-All-Lines-Adjusterdocx/
