ADJUSTER PRO FLORIDA CERTIFIED ADJUSTER
GLOSSARY 260 2026 POLICY INTERPRETATION
WORKBOOK SOLVED QUESTIONS
COMPILATION
◉ Insuring agreement section.
Answer: What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
◉ Conditions section.
Answer: Insurer specifies any limits or qualifications the policy
holder must meet
◉ Exclusions section.
Answer: losses for which the insured is not covered for
◉ Endorsements.
Answer: Provision that modifies the coverage of the original contract
,Add or subtract coverage
Synonyms - rider, addendum, attachment
◉ Certificate of Insurance.
Answer: A legal document that indicates that an insurance policy has
been issued, and that states both the amounts and types of
insurance provided.
◉ Characteristics of social insurance.
Answer: Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
Government has monopoly
◉ Private Insurers.
Answer: Sell insurance based on needs and preferences
Wide variety of products
Exist to generate a profit
Insured party voluntarily participate
◉ Stock Insurance Companies.
, Answer: Always for profit
Publicly traded
Stockholder provide capital and participate in profit or losses
"Non participation" insurers - no dividends go to policy holders
◉ Mutual Insurance Company.
Answer: No shareholders
Policy holders elect board of directors
"Participating" insurers - policy holders participate in dividends
◉ Re-insurer.
Answer: Provides insurance for insurers to reduce exposure to loss
Pays percentage of insurers loss or any loss over a certain amount
◉ Reciprocal Insurers.
Answer: Unincorporated
Non profit
Operated by attorney in fact
Members pay into individual accounts
Cost of claims shared by whole groups
◉ Fraternal Benefit Societies.
GLOSSARY 260 2026 POLICY INTERPRETATION
WORKBOOK SOLVED QUESTIONS
COMPILATION
◉ Insuring agreement section.
Answer: What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
◉ Conditions section.
Answer: Insurer specifies any limits or qualifications the policy
holder must meet
◉ Exclusions section.
Answer: losses for which the insured is not covered for
◉ Endorsements.
Answer: Provision that modifies the coverage of the original contract
,Add or subtract coverage
Synonyms - rider, addendum, attachment
◉ Certificate of Insurance.
Answer: A legal document that indicates that an insurance policy has
been issued, and that states both the amounts and types of
insurance provided.
◉ Characteristics of social insurance.
Answer: Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
Government has monopoly
◉ Private Insurers.
Answer: Sell insurance based on needs and preferences
Wide variety of products
Exist to generate a profit
Insured party voluntarily participate
◉ Stock Insurance Companies.
, Answer: Always for profit
Publicly traded
Stockholder provide capital and participate in profit or losses
"Non participation" insurers - no dividends go to policy holders
◉ Mutual Insurance Company.
Answer: No shareholders
Policy holders elect board of directors
"Participating" insurers - policy holders participate in dividends
◉ Re-insurer.
Answer: Provides insurance for insurers to reduce exposure to loss
Pays percentage of insurers loss or any loss over a certain amount
◉ Reciprocal Insurers.
Answer: Unincorporated
Non profit
Operated by attorney in fact
Members pay into individual accounts
Cost of claims shared by whole groups
◉ Fraternal Benefit Societies.
