Florida 3-20 Public Adjusters State Exam (Set 1) Study Guide Solutions

Florida 3-20 Public Adjusters State Exam (Set 1) Study Guide Solutions The insurer and insured agree to a specific value of insured item - Ans:-Agreed Value Policies Someone who has care, custody or control of another's property - Ans:-Bailee Claim filed by policy holder against his _ - Ans:-First Party Claim When a person who entrusts another with an object and it results in injury to someone can be held liable for the injury to someone. Can be held liable for the injury i.e. Firearm or DWI - Ans:-Negligent Entrustment Hazard that results from a conscious decision made by an insured to participate in a manner or behavior more likely to result in a loss because they have insurance - Ans:-Moral Hazard Used to provide temporary insurance coverage until an insurance policy can be written - Ans:-Binder Required by lenders to guarantee that outstanding loans against a job are paid upon completion - Ans:-Completion Bonds The section of an insurance policy identifying the insured, endorsements, coverages, limits, and premiums - Ans:-Declarations ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/19 Policyholder cannot transfer the policy to someone else without written permission from their insurance company - Ans:-Assignment An instance, behavior or environment that increases the likelihood of a loss on an insured item - Ans:-Hazard Actual cause or source of an incidence of destruction, injury, or loss - Ans:-Peril An insurance company organized and domiciled outside the US - Ans:-Alien When there is an unbroken chain of events between an occurrence and a loss, then the loss is part of the original occurrence - Ans:-Proximate Cause Is proximate cause of all subsequent damages - Ans:-Original Occurance An individual who contracts with an adjusting firm as an independent contractor and handles claims for the insurance companies - Ans:-Independent Adjuster Action or practice of the insured party is permitted to continue because any defense against a continuation of said action or practice has been waived by the insurer - Ans:-Estoppel Operate for profit, collect premiums, reserve a portion of premiums to pay claims - Ans:-Commercial Insurers ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/19 Any person who investigates or adjusts losses on behalf of either an insurer or a self-insured - Ans:- Independent Adjuster The result of an insured's tort or wrongdoing. Consequences of a loss or amount or type of losses suffered - Ans:-Damages Requires the insured to insure the named property for a specific amount of insurance as required by the insurance company - Ans:-Agreed Value Physical harm to tangible property caused by peril (loss to property or person in which a covered peril is the proximate cause of damage or destruction) - Ans:-Direct loss The entity that is the "recipient" to the Principal - Ans:-Obligee Insurance contracts are written on a take it or leave it basis to the policy owner. - Ans:-Adhesion Event or circumstance that causes damage - Ans:-Occurance Coverage provides for payment of losses if civil authority denies access to the insured premises due to a covered peril - Ans:-Civil Authority Voluntary relinquishment of a known legal right - Ans:-Waiver An insurer domiciled outside the state where it writes insurance - Ans:-Foreign A state officer who administers the state's insurance laws and regulations - Ans:-Commissioner ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/19 Used as a promise to accept a bid if awarded to a company - Ans:-Bid bond Damaged property an insurer takes over to reduce their loss after paying a claim - Ans:-Salvage Factual statements upon which an insurance policy is based - Ans:-Representations A contract between two parties that offer the consumer little to no leeway to negotiate the terms of the contract - Ans:-Contract of adhesion Publication in any media by the insured about goods or services - Ans:-Advertisements Also known as Absolute Liability, based on the theory of the duty of making something sage that is inherently dangerous - Ans:-Strict Torts A house, structure, also referred to as a "primary risk" - Ans:-Dwell