Florida Adjuster Exam Questions
with correct Answers
What is Insurance? - Answer - A financial tool that protects people from their losses.
Transfers risk from one party to another:
1. Insured (people) purchases an insurance policy
2. Insurer provides financial protection to the insured
How does Insurance work? - Answer - 1. Insured pays a premium
2. Insurer promises to pay for specified losses if they occur
3. Insurer's promise gives peace of mind to insured
Spreading Risk (How Insurance works) - Answer - 1. Collected premiums (from ALL insured)
go into a pool called a "reserve"
2. Policyholder can file a claim for covered losses
3. After filing a claim, the insured becomes a claimant
4. Insurer pays for claims out of the "reserved" premiums
5. Reserve should always be enough to cover losses
Principle of Indemnity - Answer - Restoration to previous financial condition; no more, no less.
Indemnification - Answer - Being restored to the financial condition you were in before a loss
Insurance Policy (ACCL) - Answer - 1. Contract to provide financial protection for a fee
2. Legally binding because it meets the 4 requirements of a legal contract
Four Qualification (Insurance Policy-Legal Contract) - Answer - 1. Agreement: mutual consent
(signature or handshake)
2. Consideration: all parties bring something of value (money in exchange for a car)
3. Competent parties: 18 years old, sober, and sane
4. Legal purpose: no contract for money laundering (has to be legal)
Insured - Answer - Individual or organization that pays premiums in exchange for protection
Insurer - Answer - Company, group, or government agency offering financial protection
Risk (meaning) - Answer - When an insurer issues an insurance policy, the actual item, person,
or organization that is being insured.
, Florida Adjuster Exam Questions
with correct Answers
Personal
(Six Special Characteristics of Insurance Contracts) - Answer - The insured person is protected
from losses; not the covered property
D.I.C.E. - Answer - 1. Declarations Page (aka "Dec Page")/Definitions Section
2. Insuring Agreement
3. Conditions
4. Exclusions/Endorsements
Declarations Page ("Dec Page") - Answer - Makes contract specific to the policyholder (names
of both parties; location & description of insured item; value of insured item; dates of the policy
(beginning and end); amount and limit of coverage; deductible; and premium.
Definitions Section - Answer - 1. Not technically essential, but common in policies 2.
defines terms used to write policy including:
- "collision," "decay," "like kind and quality."
3. includes important language for adjusters to know
Insuring Agreement Section - Answer - Insurer agrees:
- what is covered
- which causes of loss are covered
- any service provided
- any exclusions to coverage
- the maximum limit of policy coverage in dollars
Conditions Section - Answer - The Insurer specifies any limits or qualifications the policyholder
must meet
(example)
Requiring a security guard for a jewelry store
How to file a proof of loss
How to protect the property after a loss
Exclusions Section - Answer - List what the policy DOES NOT cover:
Common Exclusions (in nearly all property policies)
- earthquakes
- flooding
- war
with correct Answers
What is Insurance? - Answer - A financial tool that protects people from their losses.
Transfers risk from one party to another:
1. Insured (people) purchases an insurance policy
2. Insurer provides financial protection to the insured
How does Insurance work? - Answer - 1. Insured pays a premium
2. Insurer promises to pay for specified losses if they occur
3. Insurer's promise gives peace of mind to insured
Spreading Risk (How Insurance works) - Answer - 1. Collected premiums (from ALL insured)
go into a pool called a "reserve"
2. Policyholder can file a claim for covered losses
3. After filing a claim, the insured becomes a claimant
4. Insurer pays for claims out of the "reserved" premiums
5. Reserve should always be enough to cover losses
Principle of Indemnity - Answer - Restoration to previous financial condition; no more, no less.
Indemnification - Answer - Being restored to the financial condition you were in before a loss
Insurance Policy (ACCL) - Answer - 1. Contract to provide financial protection for a fee
2. Legally binding because it meets the 4 requirements of a legal contract
Four Qualification (Insurance Policy-Legal Contract) - Answer - 1. Agreement: mutual consent
(signature or handshake)
2. Consideration: all parties bring something of value (money in exchange for a car)
3. Competent parties: 18 years old, sober, and sane
4. Legal purpose: no contract for money laundering (has to be legal)
Insured - Answer - Individual or organization that pays premiums in exchange for protection
Insurer - Answer - Company, group, or government agency offering financial protection
Risk (meaning) - Answer - When an insurer issues an insurance policy, the actual item, person,
or organization that is being insured.
, Florida Adjuster Exam Questions
with correct Answers
Personal
(Six Special Characteristics of Insurance Contracts) - Answer - The insured person is protected
from losses; not the covered property
D.I.C.E. - Answer - 1. Declarations Page (aka "Dec Page")/Definitions Section
2. Insuring Agreement
3. Conditions
4. Exclusions/Endorsements
Declarations Page ("Dec Page") - Answer - Makes contract specific to the policyholder (names
of both parties; location & description of insured item; value of insured item; dates of the policy
(beginning and end); amount and limit of coverage; deductible; and premium.
Definitions Section - Answer - 1. Not technically essential, but common in policies 2.
defines terms used to write policy including:
- "collision," "decay," "like kind and quality."
3. includes important language for adjusters to know
Insuring Agreement Section - Answer - Insurer agrees:
- what is covered
- which causes of loss are covered
- any service provided
- any exclusions to coverage
- the maximum limit of policy coverage in dollars
Conditions Section - Answer - The Insurer specifies any limits or qualifications the policyholder
must meet
(example)
Requiring a security guard for a jewelry store
How to file a proof of loss
How to protect the property after a loss
Exclusions Section - Answer - List what the policy DOES NOT cover:
Common Exclusions (in nearly all property policies)
- earthquakes
- flooding
- war
