6-20 FLORIDA CLAIMS ADJUSTER REVIEWED QUESTION AND ANSWER

6-20 FLORIDA CLAIMS ADJUSTER REVIEWED QUESTION AND ANSWER The following are basic characteristics of a property or liability insurance contract, EXCEPT: A. Personal Contract B. Conditional Contract C. Loss Settlement Contract D. Contract of Adhesion - CORRECT ANSWER-C. Loss Settlement Contract The Insurers responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as? A. Conditional Contract B. Adhesion Contract C. Indemnity Contract D. All of the Above - CORRECT ANSWER-A. Conditional Contract A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject: A. Conditional Contract B. Personal Contract C. Economic Contract D. Insurable Interest - CORRECT ANSWER-D. Insurable Interest The __________ states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. A. Doctrine of Proximate Cause B. Doctrine of Perils & Hazards C. Insurance Policy Handbook D. Doctrine of Property Insurance - CORRECT ANSWER-A. Doctrine of Proximate Cause Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - CORRECT ANSWER-D. All listed interests The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as? A. Actual Cash Value B. Replacement Cost C. "Old For New" D. None of the Above - CORRECT ANSWER-A. Actual Cash Value Insurance applies separately to each insured as if other insureds did not exist. This is defined as: A. Severability B. Conditional C. Warranty D. None of the Above - CORRECT ANSWER-A. Severability States that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage. (Usually 60 days) A. Cancellation Clause B. Policy Period C. Pro Rata D. Liberalization - CORRECT ANSWER-D. Liberalization Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value: A. Pro Rata B. Abandonment C. Liberalization D. All of the Above - CORRECT ANSWER-B. Abandonment A policy condition, either based on information in the insured's application or inserted by the insurer, is defined as: