Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
1. Peril Something that causes a loss.
2. Hazard Something that increases the probability that a loss
will occur.
3. Warranty A policy condition, either based on information in
the insureds application or inserted by the insurer.
It is a guarantee of a fact.
4. Misrepresentation An untrue statement by the insured, made in an ap-
plication for insurance but which does not become
a part of the policy.
, Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
5. Concealment The failure of the insured to reveal relevant facts
known to the insured in applying for insurance.
6. Abandonment Property insurance policies usually contain an aban-
donment clause, stating the insured cannot dump
damaged property on the insurer and demand its
full value.
7. Severability The insurance applies separately to each insured as
if other insureds did not exist.
, Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
8. Proximate Cause 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.
9. Direct Loss Physical harm to tangible property.
10. Indirect Loss Economic loss which flows as a result of direct loss.
11. Actual Cash Value(ACV) Replacement Cost minus Depreciation
, Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
12. Coinsurance The amount, generally expressed as a fixed percent-
age, 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.
13. Personal Contract Policies cover people who own and operate things,
such as automobiles.
14. Conditional Contract 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 con-
ditional contract is enforceable and the parties are
bound to carry out the terms of the contract.
15. Contract of Indemnity Principle of insurance that provides that when a
loss occurs, the insured should be restored to the
1. Peril Something that causes a loss.
2. Hazard Something that increases the probability that a loss
will occur.
3. Warranty A policy condition, either based on information in
the insureds application or inserted by the insurer.
It is a guarantee of a fact.
4. Misrepresentation An untrue statement by the insured, made in an ap-
plication for insurance but which does not become
a part of the policy.
, Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
5. Concealment The failure of the insured to reveal relevant facts
known to the insured in applying for insurance.
6. Abandonment Property insurance policies usually contain an aban-
donment clause, stating the insured cannot dump
damaged property on the insurer and demand its
full value.
7. Severability The insurance applies separately to each insured as
if other insureds did not exist.
, Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
8. Proximate Cause 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.
9. Direct Loss Physical harm to tangible property.
10. Indirect Loss Economic loss which flows as a result of direct loss.
11. Actual Cash Value(ACV) Replacement Cost minus Depreciation
, Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review
12. Coinsurance The amount, generally expressed as a fixed percent-
age, 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.
13. Personal Contract Policies cover people who own and operate things,
such as automobiles.
14. Conditional Contract 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 con-
ditional contract is enforceable and the parties are
bound to carry out the terms of the contract.
15. Contract of Indemnity Principle of insurance that provides that when a
loss occurs, the insured should be restored to the
