Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida-
Review| 332 Questions| 41 Pages
Peril
Something that causes a loss.
Hazard
Something that increases the probability that a loss will occur.
Warranty
A policy condition, either based on information in the insureds application or
inserted by the insurer. It is a guarantee of a fact.
Misrepresentation
An untrue statement by the insured, made in an application for insurance but
which does not become a part of the policy.
Concealment
The failure of the insured to reveal relevant facts known to the insured in applying
for insurance.
Abandonment
Property insurance policies usually contain an abandonment clause, stating the
insured cannot dump damaged property on the insurer and demand its full value.
Severability
The insurance applies separately to each insured as if other insureds did not exist.
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.
Direct Loss
Physical harm to tangible property.
Indirect Loss
Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV)
Replacement Cost minus Depreciation
Coinsurance
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
Policies cover people who own and operate things, such as automobiles.
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
conditional contract is enforceable and the parties are bound to carry out the
terms of the contract.
Contract of Indemnity
,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
the reasonable concern of a person to obtain insurance for any individual or
property against unforeseen events such as death, losses, etc.
Waiver
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
Occurs when the insurer or its representative knowingly gives up a known right
under the insurance contract.
Implied Waiver
A waiver that is assumed to be in effect from a person's behavior and shows he is
waiving a right.
Damages
Monetary compensation that is awarded by a court in a civil action to an
individual who has been injured through the wrongful conduct of another party.
Subrogation
When an insured has a right to collect damages from another party, but instead
elects to claim the damages under his insurance policy, his rights against the other
party are transferred to the insurer.
Changes
All policies provide that any changes to the policy be made by the insurer, in
writing.
, Policy Period
The condition states that coverage applies only to losses or occurrences that take
place during the policy period. (Prior to the stated date and time of termination).
Policy Territory
Condition limiting coverage to occurrences or losses that take place only within a
stated geographical region.
Other Insurance
The principle of indemnity dictates against duplicate recovery for the same loss.
Cancellation
The insured may cancel at any time, for any reason, without advance notice. If the
conpany wishes to cancel, it must provide some degree of advance notice so the
insured will have time to replace the coverage.
Appraisal
A written contract of or written agreement for or effecting insurance, or the
certificate thereof, by whatever name called, and includes all clauses, riders,
endorsements and papers which are a part thereof.
Insurance
Is a contract whereby one undertakes to indemnify another or pay or allow a
specified amount or a determinable benefit upon determinable contingencies.
Binder
Acts as a temporary contract until the policy is issued.
How many days should an insurer give for prior notice of cancellation of a
binder?
5 days.
Property Insurance
Review| 332 Questions| 41 Pages
Peril
Something that causes a loss.
Hazard
Something that increases the probability that a loss will occur.
Warranty
A policy condition, either based on information in the insureds application or
inserted by the insurer. It is a guarantee of a fact.
Misrepresentation
An untrue statement by the insured, made in an application for insurance but
which does not become a part of the policy.
Concealment
The failure of the insured to reveal relevant facts known to the insured in applying
for insurance.
Abandonment
Property insurance policies usually contain an abandonment clause, stating the
insured cannot dump damaged property on the insurer and demand its full value.
Severability
The insurance applies separately to each insured as if other insureds did not exist.
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.
Direct Loss
Physical harm to tangible property.
Indirect Loss
Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV)
Replacement Cost minus Depreciation
Coinsurance
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
Policies cover people who own and operate things, such as automobiles.
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
conditional contract is enforceable and the parties are bound to carry out the
terms of the contract.
Contract of Indemnity
,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
the reasonable concern of a person to obtain insurance for any individual or
property against unforeseen events such as death, losses, etc.
Waiver
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
Occurs when the insurer or its representative knowingly gives up a known right
under the insurance contract.
Implied Waiver
A waiver that is assumed to be in effect from a person's behavior and shows he is
waiving a right.
Damages
Monetary compensation that is awarded by a court in a civil action to an
individual who has been injured through the wrongful conduct of another party.
Subrogation
When an insured has a right to collect damages from another party, but instead
elects to claim the damages under his insurance policy, his rights against the other
party are transferred to the insurer.
Changes
All policies provide that any changes to the policy be made by the insurer, in
writing.
, Policy Period
The condition states that coverage applies only to losses or occurrences that take
place during the policy period. (Prior to the stated date and time of termination).
Policy Territory
Condition limiting coverage to occurrences or losses that take place only within a
stated geographical region.
Other Insurance
The principle of indemnity dictates against duplicate recovery for the same loss.
Cancellation
The insured may cancel at any time, for any reason, without advance notice. If the
conpany wishes to cancel, it must provide some degree of advance notice so the
insured will have time to replace the coverage.
Appraisal
A written contract of or written agreement for or effecting insurance, or the
certificate thereof, by whatever name called, and includes all clauses, riders,
endorsements and papers which are a part thereof.
Insurance
Is a contract whereby one undertakes to indemnify another or pay or allow a
specified amount or a determinable benefit upon determinable contingencies.
Binder
Acts as a temporary contract until the policy is issued.
How many days should an insurer give for prior notice of cancellation of a
binder?
5 days.
Property Insurance
