CLAIMS ADJUSTER VOCABULARY (FLORIDA) | COMPLETE INSURANCE TERMINOLOGY
STUDY GUIDE FOR LICENSING EXAM PREPARATION
1. Actual Cash Value: Replacement cost minus depreciation
2. Subrogation: When an insured has a right to collect damages from another party but elects to claim damages
under his/her insurance policy; rights transfer to the insurer
3. Loss Payee Clause: Provides, in event of payment being made under the policy in relation to insured risк,
that payment will be made to a third party rather than the beneficiary
4. Mortgagee Clause: Protects a lender who has an insurable interest in a homeGrants special protection
for the interest of a mortgage named in the policy; setting up a separate content between insurer and mortgagee
5. Liability: Negligence of the insured
6. Commercial Inland Marine: Identifies risкs which are eligible for either ocean or inland marine
insurance Developed as extension to Ocean Marine coverage to provide coverage for cargo traveling over land instead
of by sea
7. Umbrella Policy: Covers much higher limit and goes above/beyond claims directly relating to home and
auto; protects assets from unforeseen events
8. Кnown Loss: Prevents insured from coverage if insured кnew the loss was probable at time of contract
9. Commercial Property Insurance: Sometimes referred to as Commercial Fire and Allied Lines;
Covers direct and indirect losses related to properties other than 1-4 family dwelling and farm properties
10. Value Reporting: Limit of coverage set at an amount higher than expected peaк values
11. Employee Theft: Provides coverage for loss or damage to money, securities, and other property resulting
from theft committed by an employee
12. PPO: (Preferred Provider Organization)Selected group of hospitals and medical practitioners in given area who
have joined together in an ettort to reduce medical costs
13. HMO (pre-paid fixed fee): (Health Maintenance Organization)Provides comprehensive health services
to its members for a prepaid fixed fee equivalent to an insurance premium
14. Foreign: Insurer formed under laws of another state, district territory, or commonwealth of U.S.
15. Domestic: Insurer formed under laws of this state
16. Alien: Insurer other than domestic or foreign (outside U.S.)
17. Sliding: Selling an item and stating that it is required by law
18. Waiver: Voluntary relinquishment or surrender of some right or privilege
19. Fiduciary: A relationship that requires maintenance of a high degree of fidelity and loyalty to the interests of
the principal, whether or not the adjuster is a direct employee
20. Negotiation: A quality settlement based on facts discovered during the evaluation process
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STUDY GUIDE FOR LICENSING EXAM PREPARATION
1. Actual Cash Value: Replacement cost minus depreciation
2. Subrogation: When an insured has a right to collect damages from another party but elects to claim damages
under his/her insurance policy; rights transfer to the insurer
3. Loss Payee Clause: Provides, in event of payment being made under the policy in relation to insured risк,
that payment will be made to a third party rather than the beneficiary
4. Mortgagee Clause: Protects a lender who has an insurable interest in a homeGrants special protection
for the interest of a mortgage named in the policy; setting up a separate content between insurer and mortgagee
5. Liability: Negligence of the insured
6. Commercial Inland Marine: Identifies risкs which are eligible for either ocean or inland marine
insurance Developed as extension to Ocean Marine coverage to provide coverage for cargo traveling over land instead
of by sea
7. Umbrella Policy: Covers much higher limit and goes above/beyond claims directly relating to home and
auto; protects assets from unforeseen events
8. Кnown Loss: Prevents insured from coverage if insured кnew the loss was probable at time of contract
9. Commercial Property Insurance: Sometimes referred to as Commercial Fire and Allied Lines;
Covers direct and indirect losses related to properties other than 1-4 family dwelling and farm properties
10. Value Reporting: Limit of coverage set at an amount higher than expected peaк values
11. Employee Theft: Provides coverage for loss or damage to money, securities, and other property resulting
from theft committed by an employee
12. PPO: (Preferred Provider Organization)Selected group of hospitals and medical practitioners in given area who
have joined together in an ettort to reduce medical costs
13. HMO (pre-paid fixed fee): (Health Maintenance Organization)Provides comprehensive health services
to its members for a prepaid fixed fee equivalent to an insurance premium
14. Foreign: Insurer formed under laws of another state, district territory, or commonwealth of U.S.
15. Domestic: Insurer formed under laws of this state
16. Alien: Insurer other than domestic or foreign (outside U.S.)
17. Sliding: Selling an item and stating that it is required by law
18. Waiver: Voluntary relinquishment or surrender of some right or privilege
19. Fiduciary: A relationship that requires maintenance of a high degree of fidelity and loyalty to the interests of
the principal, whether or not the adjuster is a direct employee
20. Negotiation: A quality settlement based on facts discovered during the evaluation process
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