Florida Claims Adjuster Exam, 6-20 All
Lines Adjuster- Florida- Review
Questions and Correct Answers
Peril - Correct Answer: Something that causes a loss.
Hazard - Correct Answer: Something that increases the probability that a loss will occur.
Warranty - Correct Answer: A policy condition, either based on information in the insureds application or
inserted by the insurer. It is a guarantee of a fact.
Misrepresentation - Correct Answer: An untrue statement by the insured, made in an application for
insurance but which does not become a part of the policy.
Concealment - Correct Answer: The failure of the insured to reveal relevant facts known to the insured
in
applying for insurance.
Abandonment - Correct Answer: Property insurance policies usually contain an abandonment clause,
stating the insured cannot dump damaged property on the insurer and demand its full value.
Severability - Correct Answer: The insurance applies separately to each insured as if other insureds did
not exist.
Proximate Cause - Correct Answer: 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 - Correct Answer: Physical harm to tangible property.
,Indirect Loss - Correct Answer: Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV) - Correct Answer: Replacement Cost minus Depreciation
Coinsurance - Correct Answer: 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 - Correct Answer: Policies cover people who own and operate things, such as
automobiles.
Conditional Contract - Correct Answer: 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 - Correct Answer: 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 - Correct Answer: the reasonable concern of a person to obtain insurance for any
individual or property against unforeseen events such as death, losses, etc.
Waiver - Correct Answer: 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 - Correct Answer: Occurs when the insurer or its representative knowingly gives up a
known right under the insurance contract.
,Implied Waiver - Correct Answer: A waiver that is assumed to be in effect from a person's behavior and
shows he is waiving a right.
Damages - Correct Answer: 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 - Correct Answer: 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 - Correct Answer: All policies provide that any changes to the policy be made by the insurer, in
writing.
Policy Period - Correct Answer: 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 - Correct Answer: Condition limiting coverage to occurrences or losses that take place
only within a stated geographical region.
Other Insurance - Correct Answer: The principle of indemnity dictates against duplicate recovery for the
same loss.
Cancellation - Correct Answer: 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 - Correct Answer: 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 - Correct Answer: Is a contract whereby one undertakes to indemnify another or pay or allow
a specified amount or a determinable benefit upon determinable contingencies.
, Binder - Correct Answer: 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? - Correct Answer: 5
days.
Property Insurance - Correct Answer: Any insurance wherein payment by the insurer will be paid directly
to the insured or other specifically named interests.
Liability Insurance - Correct Answer: Payment will be on behalf of the insured to another, based upon
the insureds liability to the recipient. Simply stated, Liability is "Negligence of the Insured".
Loss Payee Clause - Correct Answer: A Clause in a contract of insurance that provides, in the event of
payment being made under the policy in relation to the insured risk, that payment will be made to a 3rd
party rather than to the insured beneficiary of the policy.
Mortgage Clause - Correct Answer: A property insurance provision granting special protection for the
interest of a mortgagee named in the policy, in effect setting up a separate content between the insurer
and the mortgagee.
Other Structures - Correct Answer: Covers items that are not permanently attached to the main
dwelling, such as a shed, fence, etc.
Commercial Inland Marine - Correct Answer: Helps identify the kinds of risk which are eligible for either
ocean or inland Marine insurance.
Building Ordinance Coverage - Correct Answer: This endorsement covers the insured for enforcement of
laws which require demolition of undamaged portions of buildings.
Umbrella Policy - Correct Answer: Covers a much higher limit and goes above and beyond claims directly
relating to your home and auto, it provides your assets from an unforeseen event, such as a tragic
accident in which you are held responsible for damages or bodily injuries.
Lines Adjuster- Florida- Review
Questions and Correct Answers
Peril - Correct Answer: Something that causes a loss.
Hazard - Correct Answer: Something that increases the probability that a loss will occur.
Warranty - Correct Answer: A policy condition, either based on information in the insureds application or
inserted by the insurer. It is a guarantee of a fact.
Misrepresentation - Correct Answer: An untrue statement by the insured, made in an application for
insurance but which does not become a part of the policy.
Concealment - Correct Answer: The failure of the insured to reveal relevant facts known to the insured
in
applying for insurance.
Abandonment - Correct Answer: Property insurance policies usually contain an abandonment clause,
stating the insured cannot dump damaged property on the insurer and demand its full value.
Severability - Correct Answer: The insurance applies separately to each insured as if other insureds did
not exist.
Proximate Cause - Correct Answer: 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 - Correct Answer: Physical harm to tangible property.
,Indirect Loss - Correct Answer: Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV) - Correct Answer: Replacement Cost minus Depreciation
Coinsurance - Correct Answer: 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 - Correct Answer: Policies cover people who own and operate things, such as
automobiles.
Conditional Contract - Correct Answer: 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 - Correct Answer: 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 - Correct Answer: the reasonable concern of a person to obtain insurance for any
individual or property against unforeseen events such as death, losses, etc.
Waiver - Correct Answer: 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 - Correct Answer: Occurs when the insurer or its representative knowingly gives up a
known right under the insurance contract.
,Implied Waiver - Correct Answer: A waiver that is assumed to be in effect from a person's behavior and
shows he is waiving a right.
Damages - Correct Answer: 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 - Correct Answer: 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 - Correct Answer: All policies provide that any changes to the policy be made by the insurer, in
writing.
Policy Period - Correct Answer: 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 - Correct Answer: Condition limiting coverage to occurrences or losses that take place
only within a stated geographical region.
Other Insurance - Correct Answer: The principle of indemnity dictates against duplicate recovery for the
same loss.
Cancellation - Correct Answer: 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 - Correct Answer: 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 - Correct Answer: Is a contract whereby one undertakes to indemnify another or pay or allow
a specified amount or a determinable benefit upon determinable contingencies.
, Binder - Correct Answer: 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? - Correct Answer: 5
days.
Property Insurance - Correct Answer: Any insurance wherein payment by the insurer will be paid directly
to the insured or other specifically named interests.
Liability Insurance - Correct Answer: Payment will be on behalf of the insured to another, based upon
the insureds liability to the recipient. Simply stated, Liability is "Negligence of the Insured".
Loss Payee Clause - Correct Answer: A Clause in a contract of insurance that provides, in the event of
payment being made under the policy in relation to the insured risk, that payment will be made to a 3rd
party rather than to the insured beneficiary of the policy.
Mortgage Clause - Correct Answer: A property insurance provision granting special protection for the
interest of a mortgagee named in the policy, in effect setting up a separate content between the insurer
and the mortgagee.
Other Structures - Correct Answer: Covers items that are not permanently attached to the main
dwelling, such as a shed, fence, etc.
Commercial Inland Marine - Correct Answer: Helps identify the kinds of risk which are eligible for either
ocean or inland Marine insurance.
Building Ordinance Coverage - Correct Answer: This endorsement covers the insured for enforcement of
laws which require demolition of undamaged portions of buildings.
Umbrella Policy - Correct Answer: Covers a much higher limit and goes above and beyond claims directly
relating to your home and auto, it provides your assets from an unforeseen event, such as a tragic
accident in which you are held responsible for damages or bodily injuries.
