Florida Claims Adjuster Exam QUESTIONS WITH VERIFIED 100% ANSWERS

Florida Claims Adjuster Exam QUESTIONS WITH VERIFIED 100% ANSWERS Peril - ANSWER Somthing t√dhat causes a loss. Hazard - ANSWER Something that increases the probability that a loss will occur. Warranty - 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 - ANSWER An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy. Concealment - ANSWER The failure of the insured to reveal relevant facts known to the insured in applying for insurance. Abandonment - 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 - ANSWER The insurance applies separately to each insured as if other insureds did not exist. Proximate Cause - ANSWER A fundamental doctrine in property insurance holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. Direct Loss - ANSWER Physical harm to tangible property. Indirect Loss - ANSWER Economic loss which flows as a result of direct loss. Actual Cash Value(ACV) - ANSWER Replacement Cost minus Depreciation Coinsurance - ANSWER Is a method of providing equity in premiums by granting lower rates to those indureds who accept the responsibility of insuring for amounts which reflect a high percentage of the value of the subject property. Personal Contract - ANSWER Policies cover people who own and operate things, such as automobiles. Conditional Contract - ANSWER The parties are of unequal bargaining power, and the insured cannot negotiate the terms, having to take the offer of the insurer as made. Contract of Indemnity - ANSWER One should return to their same position as they were before the loss occurred. This limits the number of people intentionally causing losses because it was to their economic advantage. Insurable Interest - ANSWER Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. Waiver - ANSWER Generally defined as the voluntary relinquishment or surrender of some rightor privilege. Express Waiver - ANSWER Occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. Implied Waiver - ANSWER May result from some act of neglect on the part of the adjuster. Damages - ANSWER Money Amounts. Subrogation - 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 - ANSWER All policies provide that any changes to the policy be made by the insurer, in writing. Policy Period - 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 - ANSWER Condition limiting coverage to occurrences or losses that take place only within a stated geographical region. Other Insurance - ANSWER The principle of indemnity dictates against duplicate recovery for the same loss. Cancellation - 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 - 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 - 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 - ANSWER Acts as a temporary contract until the policy is issued. How many days should a insurer give for a prior notice of concellation of a binder ? - ANSWER 5 days