Claims Adjuster Florida questions with correct answers

For purposes of insurance, a "loss" is best defined as: CORRECT ANSWER an unwelcomed, unplanned reduction in economic value An automatic sprinkler system in a hotel building is a risk reduction measure because it: CORRECT ANSWER reduces the amount of damage that a fire is likely to do Insuring a new restaurant against business failure is not possible because business success or failure is: CORRECT ANSWER a speculative risk Which of the following is an example of pure risk? CORRECT ANSWER the possibility of a business being flooded Zenith Insurance Company issues a policy to Best Manufacturing Company. A dispute arises between Zenith and Best on the meaning of an ambiguous clause in their contract. The matter goes to court, which can be expected to interpret the clause in a manner that: CORRECT ANSWER favors Best Manufacturing The fact that insurance policy language is written by an insurance company and is nonnegotiable makes insurance policies: CORRECT ANSWER contracts of adhesion Which of the following correctly identifies three elements that must be present to create an enforceable contract? CORRECT ANSWER acceptance, consideration, and offer