Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-
Florida- Review QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/2026ALREADY GRADED A+
Peril - CORRECT ANSWERS Something that causes a loss.
Hazard - CORRECT ANSWERS Something that increases the probability that a loss will occur.
Warranty - CORRECT ANSWERS 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 ANSWERS An untrue statement by the insured, made in an application for insurance but which does
not become a part of the policy.
Concealment - CORRECT ANSWERS The failure of the insured to reveal relevant facts known to the insured in applying for insurance.
Abandonment - CORRECT ANSWERS 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 ANSWERS The insurance applies separately to each insured as if other insureds did not exist.
Proximate Cause - CORRECT ANSWERS 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 ANSWERS Physical harm to tangible property.
Indirect Loss - CORRECT ANSWERS Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV) - CORRECT ANSWERS Replacement Cost minus Depreciation
,Coinsurance - CORRECT ANSWERS 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 ANSWERS Policies cover people who own and operate things, such as automobiles.
Conditional Contract - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS the reasonable concern of a person to obtain insurance for any individual or property against
unforeseen events such as death, losses, etc.
Waiver - CORRECT ANSWERS 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 ANSWERS Occurs when the insurer or its representative knowingly gives up a known right under the
insurance contract.
Implied Waiver - CORRECT ANSWERS A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a
right.
Damages - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS All policies provide that any changes to the policy be made by the insurer, in writing.
Policy Period - CORRECT ANSWERS 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 ANSWERS Condition limiting coverage to occurrences or losses that take place only within a stated
geographical region.
Other Insurance - CORRECT ANSWERS The principle of indemnity dictates against duplicate recovery for the same loss.
Cancellation - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 5 days.
Property Insurance - CORRECT ANSWERS Any insurance wherein payment by the insurer will be paid directly to the insured or other
specifically named interests.
Liability Insurance - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS Covers items that are not permanently attached to the main dwelling, such as a shed, fence,
etc.
, Commercial Inland Marine - CORRECT ANSWERS Helps identify the kinds of risk which are eligible for either ocean or inland Marine
insurance.
Building Ordinance Coverage - CORRECT ANSWERS This endorsement covers the insured for enforcement of laws which require
demolition of undamaged portions of buildings.
Umbrella Policy - CORRECT ANSWERS Covers a much higher limit and goes above and beyond claims directly relating to your home
and auto, it provides your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily
injuries.
Known Loss - CORRECT ANSWERS Prevents an insured from coverage if the insured knew the loss was probable at the time of the
insurance contract.
Value Reporting - CORRECT ANSWERS The limit of coverage is set at an amount somewhat higher than expected peak values.
Commercial Property Insurance - CORRECT ANSWERS Covers direct and indirect losses related to properties other than one to four
family dwellings and farm properties.
Employee Theft - CORRECT ANSWERS Provides coverage for loss of or damage to money, securities, and other property resulting
from theft committed by an employee. Theft is defined as the unlawful taking of money, securities or other property to the deprivation of the
insured.
Bid - CORRECT ANSWERS Aggreement to fulfill a contractual obligation used frequently in construction and supplying goods.
Health Maintenance Organization (HMO) - CORRECT ANSWERS Provides comprehensive health services to its members for a prepaid
fixed fee, equivalent to an insurance premium.
Preferred Provider Organization
(PPO) - CORRECT ANSWERS A selected group of hospital's and medical practitioners in a given area who have joined together in an
effort to reduce medical costs.
Estoppel - CORRECT ANSWERS Is an equitable principle to the effect that if one intentionally or unintentionally creates the
impression that a certain fact exists, and an innocent party relies on that impression and is damaged as a result, the guilty party may be legally
prohibited(estopped) from asserting that the fact does not exist.
Salvage - CORRECT ANSWERS Motor vehicle or mobile home is a total loss.
Florida- Review QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/2026ALREADY GRADED A+
Peril - CORRECT ANSWERS Something that causes a loss.
Hazard - CORRECT ANSWERS Something that increases the probability that a loss will occur.
Warranty - CORRECT ANSWERS 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 ANSWERS An untrue statement by the insured, made in an application for insurance but which does
not become a part of the policy.
Concealment - CORRECT ANSWERS The failure of the insured to reveal relevant facts known to the insured in applying for insurance.
Abandonment - CORRECT ANSWERS 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 ANSWERS The insurance applies separately to each insured as if other insureds did not exist.
Proximate Cause - CORRECT ANSWERS 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 ANSWERS Physical harm to tangible property.
Indirect Loss - CORRECT ANSWERS Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV) - CORRECT ANSWERS Replacement Cost minus Depreciation
,Coinsurance - CORRECT ANSWERS 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 ANSWERS Policies cover people who own and operate things, such as automobiles.
Conditional Contract - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS the reasonable concern of a person to obtain insurance for any individual or property against
unforeseen events such as death, losses, etc.
Waiver - CORRECT ANSWERS 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 ANSWERS Occurs when the insurer or its representative knowingly gives up a known right under the
insurance contract.
Implied Waiver - CORRECT ANSWERS A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a
right.
Damages - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS All policies provide that any changes to the policy be made by the insurer, in writing.
Policy Period - CORRECT ANSWERS 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 ANSWERS Condition limiting coverage to occurrences or losses that take place only within a stated
geographical region.
Other Insurance - CORRECT ANSWERS The principle of indemnity dictates against duplicate recovery for the same loss.
Cancellation - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 5 days.
Property Insurance - CORRECT ANSWERS Any insurance wherein payment by the insurer will be paid directly to the insured or other
specifically named interests.
Liability Insurance - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS Covers items that are not permanently attached to the main dwelling, such as a shed, fence,
etc.
, Commercial Inland Marine - CORRECT ANSWERS Helps identify the kinds of risk which are eligible for either ocean or inland Marine
insurance.
Building Ordinance Coverage - CORRECT ANSWERS This endorsement covers the insured for enforcement of laws which require
demolition of undamaged portions of buildings.
Umbrella Policy - CORRECT ANSWERS Covers a much higher limit and goes above and beyond claims directly relating to your home
and auto, it provides your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily
injuries.
Known Loss - CORRECT ANSWERS Prevents an insured from coverage if the insured knew the loss was probable at the time of the
insurance contract.
Value Reporting - CORRECT ANSWERS The limit of coverage is set at an amount somewhat higher than expected peak values.
Commercial Property Insurance - CORRECT ANSWERS Covers direct and indirect losses related to properties other than one to four
family dwellings and farm properties.
Employee Theft - CORRECT ANSWERS Provides coverage for loss of or damage to money, securities, and other property resulting
from theft committed by an employee. Theft is defined as the unlawful taking of money, securities or other property to the deprivation of the
insured.
Bid - CORRECT ANSWERS Aggreement to fulfill a contractual obligation used frequently in construction and supplying goods.
Health Maintenance Organization (HMO) - CORRECT ANSWERS Provides comprehensive health services to its members for a prepaid
fixed fee, equivalent to an insurance premium.
Preferred Provider Organization
(PPO) - CORRECT ANSWERS A selected group of hospital's and medical practitioners in a given area who have joined together in an
effort to reduce medical costs.
Estoppel - CORRECT ANSWERS Is an equitable principle to the effect that if one intentionally or unintentionally creates the
impression that a certain fact exists, and an innocent party relies on that impression and is damaged as a result, the guilty party may be legally
prohibited(estopped) from asserting that the fact does not exist.
Salvage - CORRECT ANSWERS Motor vehicle or mobile home is a total loss.
