Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida-
Review questions and answers 2026\2027 A+ Grade
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".
Review questions and answers 2026\2027 A+ Grade
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".
