FLORIDA CLAIMS ADJUSTER EXAM 206
COMPREHENSIVE STUDY GUIDE 2026
INSURANCE CLAIMS HANDLING AND
ADJUSTING PRINCIPLES
◉ Abandonment.
Answer: Property insurance policies usually contain a(n) __________
clause, *stating the insured cannot dump damaged property on the
insurer and demand its full value.*
◉ Insurable Interest.
Answer: One wherein economic loss would be suffered from an
adverse happening to the subject.
◉ Liberalization.
Answer: States that if the insurer adopts a revision which would
broaden coverage without additional premium within some period
of time prior to the policy period or during the policy period, the
insured receives the benefit of such broadened coverage..
◉ Doctrine of Proximate Cause.
,Answer: States that when there is an unbroken connection between
an occurrence and damage that grows out of the occurrence, then
the resultant damage is all a part of the occurrence.
◉ Actual Cash Value.
Answer: The Loss Settlement Valuation that subtracts an allowance
for depreciation
◉ Warranty.
Answer: A policy condition, either based on information in the
insured's application or inserted by the insurer
◉ Conditional Contract.
Answer: The Insurer's responsibility to pay for a property loss may
be conditioned on the insured having used reasonable means to
avoid the loss, to protect the property against further loss, and to
give the insurer proof of the loss is defined as?
◉ Under Mechanical Breakdown Coverage, *new cars are eligible for
service up to:*.
Answer: 36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
,◉ If financial responsibility doesn't exist at the time of an accident,
what happens?.
Answer: The legally valid claims of others must be satisfied
(10/20/10)
The owner and operator must provide certification of future
responsibility for future accidents
◉ As to required proof for future accidents by purchase of auto
liability insurance, the insurer must make a filing (Form SR-22)
certifying that coverage is in effect, and this certification must
remain on file for __________ years.
Answer: 3
◉ The Business Automobile Policy includes all of the following
coverage forms except:.
Answer: The Trailer Interchange Coverage Form
◉ Personal Injury Protection, or PIP, has a __________ per person, per
accident limit..
Answer: 10,000
◉ Used to insure businesses engaged in selling, servicing, repairing,
parking or storing automobiles:.
, Answer: Garage Coverage Form
◉ The following examples are referred to as __________ liability limits:
25/50/25 or 10/20/10..
Answer: Split
10/20/10 =
10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
◉ Jeremy has a not at fault accident. If he has PIP with a $1,000
deductible, how much can he expect his PIP coverage to pay toward
his medical bills that total $3,000?.
Answer: $1,600
3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
◉ Frank has a not-at-fault accident, he has basic PIP, no deductible
and Med pay of $5,000. How much will his Med Pay contribute to
medical bills of $15,000?.
COMPREHENSIVE STUDY GUIDE 2026
INSURANCE CLAIMS HANDLING AND
ADJUSTING PRINCIPLES
◉ Abandonment.
Answer: Property insurance policies usually contain a(n) __________
clause, *stating the insured cannot dump damaged property on the
insurer and demand its full value.*
◉ Insurable Interest.
Answer: One wherein economic loss would be suffered from an
adverse happening to the subject.
◉ Liberalization.
Answer: States that if the insurer adopts a revision which would
broaden coverage without additional premium within some period
of time prior to the policy period or during the policy period, the
insured receives the benefit of such broadened coverage..
◉ Doctrine of Proximate Cause.
,Answer: States that when there is an unbroken connection between
an occurrence and damage that grows out of the occurrence, then
the resultant damage is all a part of the occurrence.
◉ Actual Cash Value.
Answer: The Loss Settlement Valuation that subtracts an allowance
for depreciation
◉ Warranty.
Answer: A policy condition, either based on information in the
insured's application or inserted by the insurer
◉ Conditional Contract.
Answer: The Insurer's responsibility to pay for a property loss may
be conditioned on the insured having used reasonable means to
avoid the loss, to protect the property against further loss, and to
give the insurer proof of the loss is defined as?
◉ Under Mechanical Breakdown Coverage, *new cars are eligible for
service up to:*.
Answer: 36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
,◉ If financial responsibility doesn't exist at the time of an accident,
what happens?.
Answer: The legally valid claims of others must be satisfied
(10/20/10)
The owner and operator must provide certification of future
responsibility for future accidents
◉ As to required proof for future accidents by purchase of auto
liability insurance, the insurer must make a filing (Form SR-22)
certifying that coverage is in effect, and this certification must
remain on file for __________ years.
Answer: 3
◉ The Business Automobile Policy includes all of the following
coverage forms except:.
Answer: The Trailer Interchange Coverage Form
◉ Personal Injury Protection, or PIP, has a __________ per person, per
accident limit..
Answer: 10,000
◉ Used to insure businesses engaged in selling, servicing, repairing,
parking or storing automobiles:.
, Answer: Garage Coverage Form
◉ The following examples are referred to as __________ liability limits:
25/50/25 or 10/20/10..
Answer: Split
10/20/10 =
10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
◉ Jeremy has a not at fault accident. If he has PIP with a $1,000
deductible, how much can he expect his PIP coverage to pay toward
his medical bills that total $3,000?.
Answer: $1,600
3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
◉ Frank has a not-at-fault accident, he has basic PIP, no deductible
and Med pay of $5,000. How much will his Med Pay contribute to
medical bills of $15,000?.
