Florida Claims Adjuster Exam 6-20 All Lines
Adjuster Florida Review: Q’s & A’s
Peril Correct Ans ➡ Something that causes a loss.
Hazard Correct Ans ➡ Something that increases the probability that a
loss will occur.
Warranty Correct Ans ➡ 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 Ans ➡ An untrue statement by the insured,
made in an application for insurance but which does not become a part of the
policy.
Concealment Correct Ans ➡ The failure of the insured to reveal relevant
facts known to the insured in applying for insurance.
Abandonment Correct Ans ➡ 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 Ans ➡ The insurance applies separately to each
insured as if other insureds did not exist.
Proximate Cause Correct Ans ➡ 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 Ans ➡ Physical harm to tangible property.
,Indirect Loss Correct Ans ➡ Economic loss which flows as a result of
direct loss.
Actual Cash Value(ACV) Correct Ans ➡ Replacement Cost minus
Depreciation
Coinsurance Correct Ans ➡ 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 Ans ➡ Policies cover people who own and
operate things, such as automobiles.
Conditional Contract Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ the reasonable concern of a person to
obtain insurance for any individual or property against unforeseen events
such as death, losses, etc.
Waiver Correct Ans ➡ 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 Ans ➡ Occurs when the insurer or its
representative knowingly gives up a known right under the insurance
contract.
Implied Waiver Correct Ans ➡ A waiver that is assumed to be in effect
from a person's behavior and shows he is waiving a right.
Damages Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ All policies provide that any changes to the policy
be made by the insurer, in writing.
Policy Period Correct Ans ➡ 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 Ans ➡ Condition limiting coverage to
occurrences or losses that take place only within a stated geographical region.
Other Insurance Correct Ans ➡ The principle of indemnity dictates
against duplicate recovery for the same loss.
Cancellation Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ 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 Ans ➡ 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 Ans ➡ 5 days.
Property Insurance Correct Ans ➡ Any insurance wherein payment by
the insurer will be paid directly to the insured or other specifically named
interests.
Liability Insurance Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ 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 Ans ➡ Covers items that are not permanently
attached to the main dwelling, such as a shed, fence, etc.
Commercial Inland Marine Correct Ans ➡ Helps identify the kinds of risk
which are eligible for either ocean or inland Marine insurance.
Building Ordinance Coverage Correct Ans ➡ This endorsement covers
the insured for enforcement of laws which require demolition of undamaged
portions of buildings.
Umbrella Policy Correct Ans ➡ Covers a much higher limit and goes
above and beyond claims directly relating to your home and auto, it provides
Adjuster Florida Review: Q’s & A’s
Peril Correct Ans ➡ Something that causes a loss.
Hazard Correct Ans ➡ Something that increases the probability that a
loss will occur.
Warranty Correct Ans ➡ 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 Ans ➡ An untrue statement by the insured,
made in an application for insurance but which does not become a part of the
policy.
Concealment Correct Ans ➡ The failure of the insured to reveal relevant
facts known to the insured in applying for insurance.
Abandonment Correct Ans ➡ 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 Ans ➡ The insurance applies separately to each
insured as if other insureds did not exist.
Proximate Cause Correct Ans ➡ 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 Ans ➡ Physical harm to tangible property.
,Indirect Loss Correct Ans ➡ Economic loss which flows as a result of
direct loss.
Actual Cash Value(ACV) Correct Ans ➡ Replacement Cost minus
Depreciation
Coinsurance Correct Ans ➡ 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 Ans ➡ Policies cover people who own and
operate things, such as automobiles.
Conditional Contract Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ the reasonable concern of a person to
obtain insurance for any individual or property against unforeseen events
such as death, losses, etc.
Waiver Correct Ans ➡ 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 Ans ➡ Occurs when the insurer or its
representative knowingly gives up a known right under the insurance
contract.
Implied Waiver Correct Ans ➡ A waiver that is assumed to be in effect
from a person's behavior and shows he is waiving a right.
Damages Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ All policies provide that any changes to the policy
be made by the insurer, in writing.
Policy Period Correct Ans ➡ 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 Ans ➡ Condition limiting coverage to
occurrences or losses that take place only within a stated geographical region.
Other Insurance Correct Ans ➡ The principle of indemnity dictates
against duplicate recovery for the same loss.
Cancellation Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ 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 Ans ➡ 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 Ans ➡ 5 days.
Property Insurance Correct Ans ➡ Any insurance wherein payment by
the insurer will be paid directly to the insured or other specifically named
interests.
Liability Insurance Correct Ans ➡ 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 Ans ➡ 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 Ans ➡ 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 Ans ➡ Covers items that are not permanently
attached to the main dwelling, such as a shed, fence, etc.
Commercial Inland Marine Correct Ans ➡ Helps identify the kinds of risk
which are eligible for either ocean or inland Marine insurance.
Building Ordinance Coverage Correct Ans ➡ This endorsement covers
the insured for enforcement of laws which require demolition of undamaged
portions of buildings.
Umbrella Policy Correct Ans ➡ Covers a much higher limit and goes
above and beyond claims directly relating to your home and auto, it provides
