Florida Public all lines adjuster questions and answers
100% correct
Subordination - -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 - -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. - -For
fundamental parts of all property and liability insurance contracts
Proof of Loss - -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 - -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 - -Insurance policies transfer risk, or the chance of financial loss.
Primary Policy - -A basic, fundamental insurance policy which pays first with respect
to other outstanding policies followed by an Excess Policy.
Pro-rata policies - -Will pay the proportion that it's limit bears to all limits that
applied to the loss.
- -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.
peril - -Fire, windstorm, earthquakes, and flood. Insurance companies only cover
perils
Hazards - -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.
, Florida Public all lines adjuster questions and answers
100% correct
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 - -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 - -replacement cost minus depreciation
Replacement Cost - -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 - -Loss x policy amt/ coinsurmace % * FMV = Recovery
Direct Loss - -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 - -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 - -Is a flat amount subtracted from the loss. It is the amount of
the loss the insured has agreed to be responsible for.
Percentage Deductible - -Requires a deduction of a percentage of the value of the
property or percentage of the policy limits. Example: uninsured has a 5% hurricane
deductible. If the value of the property is $100,000, and hurricane causes $6000 of
damage, the insurance deductible will be $5000 subtracted from the loss and the
insurance company will pay the remaining $1000.
Franchise Deductible - -Specifies that when the loss is equal to or more than the
deductible, the loss will be paid in full. Example: a franchise deductible is $5000: a loss is
100% correct
Subordination - -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 - -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. - -For
fundamental parts of all property and liability insurance contracts
Proof of Loss - -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 - -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 - -Insurance policies transfer risk, or the chance of financial loss.
Primary Policy - -A basic, fundamental insurance policy which pays first with respect
to other outstanding policies followed by an Excess Policy.
Pro-rata policies - -Will pay the proportion that it's limit bears to all limits that
applied to the loss.
- -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.
peril - -Fire, windstorm, earthquakes, and flood. Insurance companies only cover
perils
Hazards - -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.
, Florida Public all lines adjuster questions and answers
100% correct
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 - -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 - -replacement cost minus depreciation
Replacement Cost - -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 - -Loss x policy amt/ coinsurmace % * FMV = Recovery
Direct Loss - -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 - -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 - -Is a flat amount subtracted from the loss. It is the amount of
the loss the insured has agreed to be responsible for.
Percentage Deductible - -Requires a deduction of a percentage of the value of the
property or percentage of the policy limits. Example: uninsured has a 5% hurricane
deductible. If the value of the property is $100,000, and hurricane causes $6000 of
damage, the insurance deductible will be $5000 subtracted from the loss and the
insurance company will pay the remaining $1000.
Franchise Deductible - -Specifies that when the loss is equal to or more than the
deductible, the loss will be paid in full. Example: a franchise deductible is $5000: a loss is
