Claims Adjuster Florida With Correct Answers

For purposes of insurance, a "loss" is best defined as: Correct Answers an unwelcomed, unplanned reduction in economic value An automatic sprinkler system in a hotel building is a risk reduction measure because it: Correct Answers reduces the amount of damage that a fire is likely to do Insuring a new restaurant against business failure is not possible because business success or failure is: Correct Answers a speculative risk Which of the following is an example of pure risk? Correct Answers the possibility of a business being flooded Zenith Insurance Company issues a policy to Best Manufacturing Company. A dispute arises between Zenith and Best on the meaning of an ambiguous clause in their contract. The matter goes to court, which can be expected to interpret the clause in a manner that: Correct Answers favors Best Manufacturing The fact that insurance policy language is written by an insurance company and is nonnegotiable makes insurance policies: Correct Answers contracts of adhesion Which of the following correctly identifies three elements that must be present to create an enforceable contract? Correct Answers acceptance, consideration, and offer Rhonda's parents bought her a car for her sixteenth birthday and made her responsible for maintaining and insuring it. However, when Rhonda applied for auto insurance after getting her driver's license, she was told that she could not enter into a binding insurance contract because, according to the law in her state, a 16-year-old does not qualify as a(n): Correct Answers competent party A fire severely damages Carl's home, making it uninhabitable. He moves his family to a hotel while the house is repaired. The additional expenses incurs in housing the family are considered what type of loss? Correct Answers indirect Butch's Meat Market loses electrical power during a flood. The business closes for several days, during which time there is no refrigeration and a large quantity of meat spoils. The loss of the meat is what type of loss? Correct Answers consequential "Replacement cost minus physical depreciation" describes which type of loss valuation method? Correct Answers actual cash value From a property insurance perspective, which of the following is NOT a basic type of construction? Correct Answers steel