FLORIDA CLAIMS ADJUSTER EXAM TEST 2023/2024

FLORIDA CLAIMS ADJUSTER EXAM TEST 2023/2024 Peril - CORRECT ANSWER-Somthing t√dhat causes a loss. Hazard - CORRECT ANSWER-Something that increases the probability that a loss will occur. Warranty - CORRECT ANSWER-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 ANSWER-An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy. Concealment - CORRECT ANSWER-The failure of the insured to reveal relevant facts known to the insured in applying for insurance. Abandonment - CORRECT ANSWER-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 ANSWER-The insurance applies separately to each insured as if other insureds did not exist. Proximate Cause - CORRECT ANSWER-A fundamental doctrine in property insurance holds 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. Direct Loss - CORRECT ANSWER-Physical harm to tangible property. Indirect Loss - CORRECT ANSWER-Economic loss which flows as a result of direct loss. Actual Cash Value(ACV) - CORRECT ANSWER-Replacement Cost minus Depreciation Coinsurance - CORRECT ANSWER-Is a method of providing equity in premiums by granting lower rates to those indureds who accept the responsibility of insuring for amounts which reflect a high percentage of the value of the subject property. Personal Contract - CORRECT ANSWER-Policies cover people who own and operate things, such as automobiles. Conditional Contract - CORRECT ANSWER-The parties are of unequal bargaining power, and the insured cannot negotiate the terms, having to take the offer of the insurer as made. Contract of Indemnity - CORRECT ANSWER-One should return to their same position as they were before the loss occurred. This limits the number of people intentionally causing losses because it was to their economic advantage. Insurable Interest - CORRECT ANSWER-Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. Waiver - CORRECT ANSWER-Generally defined as the voluntary relinquishment or surrender of some rightor privilege. Express Waiver - CORRECT ANSWER-Occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. Implied Waiver - CORRECT ANSWER-May result from some act of neglect on the part of the adjuster. Damages - CORRECT ANSWER-Money Amounts. Subrogation - CORRECT ANSWER-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 ANSWER-All policies provide that any changes to the policy be made by the insurer, in writing. Policy Period - CORRECT ANSWER-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 ANSWER-Condition limiting coverage to occurrences or losses that take place only within a stated geographical region. Other Insurance - CORRECT ANSWER-The principle of indemnity dictates against duplicate recovery for the same loss. Cancellation - CORRECT ANSWER-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 ANSWER-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 ANSWER-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 ANSWER-Acts as a temporary contract until the policy is issued. How many days should a insurer give for a prior notice of concellation of a binder ? - CORRECT ANSWER-5 days. Property Insurance - CORRECT ANSWER-Any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests. Liability Insurance - CORRECT ANSWER-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 ANSWER-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 ANSWER-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 ANSWER-Covers items that are not permanently attached to the main dwelling, such as a shed, fence, etc. Commercial Inland Marine - CORRECT ANSWER-Helps identify the kinds of risk which are eligible for either ocean or inland Marine insurance. Building Ordinance Coverage - CORRECT ANSWER-This endorsement covers the insured for enforcement of laws which require demolition of undamaged portions of buildings. Umbrella Policy - CORRECT ANSWER-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 ANSWER-Prevents an insured from coverage if the insured knew the loss was probable at the time of the insurance contract. Value Reporting - CORRECT ANSWER-The limit of coverage is set at an amount somewhat higher than expected peak values. Commercial Property Insurance - CORRECT ANSWER-Covers direct and indirect losses related to properties other than one to four family dwellings and farm properties. Employee Theft - CORRECT ANSWER-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 ANSWER-Aggreement to fulfill a contractual obligation used frequently in construction and supplying goods. Health Maintenance Organization (HMO) - CORRECT ANSWER-Provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium. Preferred Provider Organization (PPO) - CORRECT ANSWER-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 ANSWER-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 ANSWER-Motor vehicle or mobile home is a total loss. Junk - CORRECT ANSWER-Any material which is or may have been a motor vehicle or mobile home, with or without all component parts, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal. Fiduciary Agent - CORRECT ANSWER-Agent for a principal/Client. The legal or special relationship of trust, confidence, or responsibility between 2 or more parties. Domestic Insurer - CORRECT ANSWER-Insurer is one formed under the laws of its this state. Foreign Insurer - CORRECT ANSWER-Insurer is one formed under the laws of any state, district territory, or commonwealth of the United States other than this State. Alien Insurer - CORRECT ANSWER-Insurer is an insurer other than a domestic or foreign insurer.