Severability - ANSWER Insurance applies separately to each insured as if other insureds did not exist.
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.*
Insurabl...
Florida Claims Adjuster Exam ACCURATE
100%
Severability - ANSWER Insurance applies separately to each insured as if other insureds did not exist.
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
Which of the following is not one of the rating factors for a Homeowner's Policy? - ANSWER Age &
Gender of Insured
On a Homeowner's Policy, covers items that are not permanently attached to the dwelling. This is
defined as: - ANSWER Other Structures
Examples include sheds, fences, pool houses, detached car ports, etc.
A lender has an insurable interest in a home and finds protection in the: - ANSWER Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
Which of the following forms is "all-risk" on the dwelling policy? - ANSWER DP-3, or the Special Form
When the basic liability limits provided by the policy are insufficient for an insureds needs, two coverage
forms are used to provide the additional amounts of coverage:
A. Excess Liability
B. Umbrella
C. Both A & B
D. None of the Above - ANSWER Both A & B
Which of the following is not covered under Coverage C, Personal Property?
A. A fire breaks out in the residence and an overnight guest loses his clothes in the fire
B. A fish dies because he has been left alone for a week without food
C. The insureds daughters tennis racket is stolen from her locker
,D. The insureds suitcase and clothing, valued at $1,500, are stolen from his hotel - ANSWER B. A fish dies
because he has been left alone for a week without food
Animals are listed as an "exclusion" under a Homeowner's policy.
All of the following are eligible for a Homeowner's Policy, except?
A. An apartment tenant
B. A condominium owner
C. Four-family dwelling owner-occupant
D. A business condo owned by a local insurance company - ANSWER D. A business condo owned by a
local insurance company
Commercial property is not eligible for a Homeowner's policy.
Which of the following are characteristics of Homeowner's Insurance?
A. Protects against economic loss to residences and household property and legal liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of building
D. All of the Above - ANSWER D. All of the Above
Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit owners
and cooperative apartment occupants
Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is averaged at
$25,000 and Jeremy decides to stay in a hotel because most of the damage is to his bedroom and
kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel room bill?
A. Fair Rental Value
B. Value Obligation
, C. Loss of Use
D. Insurers Duties - ANSWER C. Loss of Use
The insurer will pay any necessary and reasonable expenses associated with a daily living routine.
An insured who wishes to purchase flood insurance, but is located in a moderate or low risk flood zone
may do so by purchasing a: - ANSWER Preferred Risk Flood Policy
Although Flood Insurance is provided by the Federal Government, those who are not in a "flood zone"
may purchase a preferred risk policy to cover them for a flood claim.
Used only for Commercial Condominiums, it covers the unit-owners business personal property and the
personal property of others in the insured's care, custody or control: - ANSWER Condominium Unit
Owners Form
The Commercial Property Contract includes all of the following, except:
A. Common Policy Conditions
B. Commercial Property Conditions
C. Coverage Form
D. Commercial Loss Schedule - ANSWER Commercial Loss Schedule
Also included: Declarations, Causes of Loss Form, Endorsements
Insures a condominium association against direct physical loss or damage to buildings, business personal
property and personal property of others in the care, custody or control of the association and located at
the premises: - ANSWER Condominium Association Form
This, along with Condo Unit Owners Form, is located under Condo Coverage.
Sometimes referred to as commercial fire and allied lines, this is the form of insurance that covers direct
and indirect losses related to properties other than one-to-four family dwellings and farm properties: -
ANSWER Commercial Property Insurance
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