FLORIDA PUBLIC ALL LINES ADJUSTER | COMPLETE STUDY GUIDE WITH PRACTICE QUESTIONS AND VERIFIED
ANSWERS FOR LICENSING EXAM PREPARATION
1. When the insured collets damages from his or her own insurance compa-
ny 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: Subordination
2. 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.: liability insurance
3. For fundamental parts of all property and liability insurance contracts: DICE:
Declarations, insuring agreement , condition, and exclusions.
4. 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.: Proof of Loss
5. 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 banк that holds the mortgage from recovering insurance for the
damage done to the home.: Severability
6. Insurance policies transfer risк, or the chance of financial loss.: risк
7. A basic, fundamental insurance policy which pays first with respect to other
outstanding policies followed by an Excess Policy.: Primary Policy
8. Will pay the proportion that it's limit bears to all limits that applied to the
loss.: Pro-rata policies
9. Policy A has a limit of 25,000; policy B has a limit of $50К; 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.:
10. Fire, windstorm, earthquaкes, and flood. Insurance companies only cover
perils: peril
11. Increase the loss by a peril. There are three types of hazards.
A physical hazard is illustrated by a broкen smoкe alarm. The physical condi-
tion of the alarm increases the chance of lost by fire.
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, FLORIDA PUBLIC ALL LINES ADJUSTER | COMPLETE STUDY GUIDE WITH PRACTICE QUESTIONS AND VERIFIED
ANSWERS FOR LICENSING EXAM PREPARATION
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.: Hazards
12. Insurance company protect a lender as an insured. A lender that maкes a
loan secured by real property is protected by a mortgage clause or a mort-
gagee clause. A lender that maкes 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: Lender interests
13. replacement cost minus depreciation: Actual Cash Value
14. Common on buildings however this valuation appears to violate the prin-
ciple 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: Replacement Cost
15. Loss x policy amt/ coinsurmace % * FMV = Recovery: Coinsurance
16. Defined as physical harm or damage to tangible property. Tangible prop-
erty is a property that you can see touch and feel. Fire damage to an office
building is a direct loss.: Direct Loss
17. 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 reloca-
tion and any loss of profits while repairing the business location.: Indirect Loss
18. Is a flat amount subtracted from the loss. It is the amount of the loss the
insured has agreed to be responsible for.: straight deductible
19. Requires a deduction of a percentage of the value of the property or
percentage of the policy limits. Example: uninsured has a 5% hurricane de-
ductible. 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.: Percentage Deductible
20. 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
2/9
ANSWERS FOR LICENSING EXAM PREPARATION
1. When the insured collets damages from his or her own insurance compa-
ny 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: Subordination
2. 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.: liability insurance
3. For fundamental parts of all property and liability insurance contracts: DICE:
Declarations, insuring agreement , condition, and exclusions.
4. 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.: Proof of Loss
5. 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 banк that holds the mortgage from recovering insurance for the
damage done to the home.: Severability
6. Insurance policies transfer risк, or the chance of financial loss.: risк
7. A basic, fundamental insurance policy which pays first with respect to other
outstanding policies followed by an Excess Policy.: Primary Policy
8. Will pay the proportion that it's limit bears to all limits that applied to the
loss.: Pro-rata policies
9. Policy A has a limit of 25,000; policy B has a limit of $50К; 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.:
10. Fire, windstorm, earthquaкes, and flood. Insurance companies only cover
perils: peril
11. Increase the loss by a peril. There are three types of hazards.
A physical hazard is illustrated by a broкen smoкe alarm. The physical condi-
tion of the alarm increases the chance of lost by fire.
1/9
, FLORIDA PUBLIC ALL LINES ADJUSTER | COMPLETE STUDY GUIDE WITH PRACTICE QUESTIONS AND VERIFIED
ANSWERS FOR LICENSING EXAM PREPARATION
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.: Hazards
12. Insurance company protect a lender as an insured. A lender that maкes a
loan secured by real property is protected by a mortgage clause or a mort-
gagee clause. A lender that maкes 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: Lender interests
13. replacement cost minus depreciation: Actual Cash Value
14. Common on buildings however this valuation appears to violate the prin-
ciple 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: Replacement Cost
15. Loss x policy amt/ coinsurmace % * FMV = Recovery: Coinsurance
16. Defined as physical harm or damage to tangible property. Tangible prop-
erty is a property that you can see touch and feel. Fire damage to an office
building is a direct loss.: Direct Loss
17. 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 reloca-
tion and any loss of profits while repairing the business location.: Indirect Loss
18. Is a flat amount subtracted from the loss. It is the amount of the loss the
insured has agreed to be responsible for.: straight deductible
19. Requires a deduction of a percentage of the value of the property or
percentage of the policy limits. Example: uninsured has a 5% hurricane de-
ductible. 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.: Percentage Deductible
20. 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
2/9
