Florida Claims Adjuster Exam, 6-20 All
Lines Adjuster- Florida- Review
Questions With Answers
Peril - Answer-Something that causes a loss.
/.Hazard - Answer-Something that increases the probability that a loss will occur.
/.Warranty - 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 - Answer-An untrue statement by the insured, made in an
application for insurance but which does not become a part of the policy.
/.Concealment - Answer-The failure of the insured to reveal relevant facts known to the
insured in applying for insurance.
/.Abandonment - 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 - Answer-The insurance applies separately to each insured as if other
insureds did not exist.
/.Proximate Cause - Answer-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 - Answer-Physical harm to tangible property.
/.Indirect Loss - Answer-Economic loss which flows as a result of direct loss.
/.Actual Cash Value(ACV) - Answer-Replacement Cost minus Depreciation
/.Coinsurance - Answer-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 - Answer-Policies cover people who own and operate things, such
as automobiles.
/.Conditional Contract - Answer-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 - Answer-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 - Answer-the reasonable concern of a person to obtain insurance for
any individual or property against unforeseen events such as death, losses, etc.
/.Waiver - Answer-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 - Answer-Occurs when the insurer or its representative knowingly
gives up a known right under the insurance contract.
/.Implied Waiver - Answer-A waiver that is assumed to be in effect from a person's
behavior and shows he is waiving a right.
/.Damages - Answer-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 - 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 - Answer-All policies provide that any changes to the policy be made by the
insurer, in writing.
/.Policy Period - 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 - Answer-Condition limiting coverage to occurrences or losses that
take place only within a stated geographical region.
,/.Other Insurance - Answer-The principle of indemnity dictates against duplicate
recovery for the same loss.
/.Cancellation - 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 - 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 - 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 - Answer-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? -
Answer-5 days.
/.Property Insurance - Answer-Any insurance wherein payment by the insurer will be
paid directly to the insured or other specifically named interests.
/.Liability Insurance - 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 - 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 - 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 - Answer-Covers items that are not permanently attached to the main
dwelling, such as a shed, fence, etc.
/.Commercial Inland Marine - Answer-Helps identify the kinds of risk which are eligible
for either ocean or inland Marine insurance.
/.Building Ordinance Coverage - Answer-This endorsement covers the insured for
enforcement of laws which require demolition of undamaged portions of buildings.
/.Umbrella Policy - 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 - Answer-Prevents an insured from coverage if the insured knew the loss
was probable at the time of the insurance contract.
/.Value Reporting - Answer-The limit of coverage is set at an amount somewhat higher
than expected peak values.
/.Commercial Property Insurance - Answer-Covers direct and indirect losses related to
properties other than one to four family dwellings and farm properties.
/.Employee Theft - 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 - Answer-Aggreement to fulfill a contractual obligation used frequently in
construction and supplying goods.
/.Health Maintenance Organization (HMO) - Answer-Provides comprehensive health
services to its members for a prepaid fixed fee, equivalent to an insurance premium.
/.Preferred Provider Organization
(PPO) - 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 - 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 - Answer-Motor vehicle or mobile home is a total loss.
/.Junk - 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 - Answer-Agent for a principal/Client. The legal or special relationship
of trust, confidence, or responsibility between 2 or more parties.
/.Domestic Insurer - Answer-Insurer is one formed under the laws of its this state.
/.Foreign Insurer - Answer-Insurer is one formed under the laws of any state, district
territory, or commonwealth of the United States other than this State.
