Florida Public all lines adjuster questions and answers 100% correct
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Course
Public Adjuster
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Liberty University
Subordination Correct Answer: When the insured collets damages from his or her own insurance company and those damages were caused by negligent third-party, the insurance company steps into the shoes of the insured and is entitled to recover the damages actually paid to the insured from the neglig...
florida public all lines adjuster questions and answers 100 correct
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Public Adjuster
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Florida Public all lines adjuster questions and
answers 100% correct
Subordination Correct Answer: When the insured collets damages from his or her own insurance
company and those damages were caused by negligent third-party, the insurance company steps
into the shoes of the insured and is entitled to recover the damages actually paid to the insured
from the negligent party
liability insurance Correct Answer: Means that the payment by the insurance company will be
made to a third-party injured or damaged by the insured. An insured can we never recover
damages from their own liability policy.
DICE: Declarations, insuring agreement , condition, and exclusions. Correct Answer: For
fundamental parts of all property and liability insurance contracts
Proof of Loss Correct Answer: The evidence offered by the insured to support the claim for
damages and, assigned sworn statement by the insured verifying that the required according to
the policy or the insurance company.
Severability Correct Answer: Insurance applies separately to each insured as if the other insured
does not exist. Example: A homeowner who intentionally set fire to the house will not prevent
the bank that holds the mortgage from recovering insurance for the damage done to the home.
risk Correct Answer: Insurance policies transfer risk, or the chance of financial loss.
Primary Policy Correct Answer: A basic, fundamental insurance policy which pays first with
respect to other outstanding policies followed by an Excess Policy.
Pro-rata policies Correct Answer: Will pay the proportion that it's limit bears to all limits that
applied to the loss.
Correct Answer: Policy A has a limit of 25,000; policy B has a limit of $50K; A loss is $6000.
If we add the policy limits, we have a total of $75,000. Policy A's limit is the 1/3 of the total
limit, therefore policy I will pay 1/3 of the loss, or $2000. Policy B limit is 2/3 of the total limit
therefore policy be will pay 2/3 of the loss or $4000.
peril Correct Answer: Fire, windstorm, earthquakes, and flood. Insurance companies only cover
perils
Hazards Correct Answer: Increase the loss by a peril. There are three types of hazards.
A physical hazard is illustrated by a broken smoke alarm. The physical condition of the alarm
increases the chance of lost by fire.
, Moral hazard is the consensus attitude of the insured. And insured that intends to commit arson
increases the chance that there will be a loss by fire.
A morale hazard is an unconscious attitude of the insured, i.e. carelessness. A driver that is text
messaging while operating a motor vehicle increases the chance of loss in an automobile
accident.
Lender interests Correct Answer: Insurance company protect a lender as an insured. A lender
that makes a loan secured by real property is protected by a mortgage clause or a mortgagee
clause. A lender that makes a loan secured by personal property, such as an auto loan, is
protected by a loss payable clause and is referred to as a loss payee
Actual Cash Value Correct Answer: replacement cost minus depreciation
Replacement Cost Correct Answer: Common on buildings however this valuation appears to
violate the principle of indemnity. The principal of Indemnity provides that the insured shall not
profit from the payment made for loss. Replacement cost provides new for old and therefore
appears to violate this principle
Coinsurance Correct Answer: Loss x policy amt/ coinsurmace % * FMV = Recovery
Direct Loss Correct Answer: Defined as physical harm or damage to tangible property. Tangible
property is a property that you can see touch and feel. Fire damage to an office building is a
direct loss.
Indirect Loss Correct Answer: Is the economic loss that results from a direct loss. Therefore the
indirect laws that arises from fire damage office building would be the cost of relocation and any
loss of profits while repairing the business location.
straight deductible Correct Answer: Is a flat amount subtracted from the loss. It is the amount of
the loss the insured has agreed to be responsible for.
Percentage Deductible Correct Answer: Requires a deduction of a percentage of the value of the
property or percentage of the policy limits. Example: uninsured has a 5% hurricane deductible. If
the value of the property is $100,000, and hurricane causes $6000 of damage, the insurance
deductible will be $5000 subtracted from the loss and the insurance company will pay the
remaining $1000.
Franchise Deductible Correct Answer: Specifies that when the loss is equal to or more than the
deductible, the loss will be paid in full. Example: a franchise deductible is $5000: a loss is
$4999; no insurance payment will be made. If the loss is $5000 or more, the deductible will
disappear and the loss will be paid in full.
Coinsurance Definition Correct Answer: Most commercial policies contain a coinsurance clause
that provide that an insured must carry a specific amount of coverage in order to recover 100%
of a loss within a policy limits. In the event an insured carries less than the required amount, a
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