FLORIDA 6 20 ALL LINES ADJUSTER
LICENSING ASSESSMENT QUESTIONS
SOLUTIONS 2026 GRADED A+
◉ 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.
LICENSING ASSESSMENT QUESTIONS
SOLUTIONS 2026 GRADED A+
◉ 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.
