Exam 1 insurance licensing florida Latest 2024/2025 Questions & Answers Verified Answers (100% CORRECT ANSWERS)

What is the primary difference between a staff adjuster and an independent adjuster? - ANSWER A staff adjuster works for an insurance company and an independent adjuster works independently for themselves or for adjusting firms who represent many clients. A couple has insured their home for $150,000. A fire ensues and guts their home, resulting in a total loss. An appraisal of the home prior to loss results in a value of $120,000, yet the adjuster is required by law to pay the couple $150,000. This is known as the application of: - ANSWER The valued policy law. The doctrine of proximate cause is defined as: - ANSWER If there is an unbroken chain of events, or series of consequences, flowing from the initial loss caused by the insured peril to a subsequent loss, the insured peril causing the initial loss will be considered the "proximate cause" of the subsequent loss. An adjuster's responsibility as a fiduciary means: - ANSWER The adjuster represents, and controls, the property and financial interests of the client, to whom he/she owes a high degree of loyalty and good faith. The Adjuster's Code of Ethics starts with a basic premise which states: - ANSWER The work of adjusting engages the public trust