Claims Adjuster Vocabulary (Florida) Exam Questions & Answers

Subrogation - ANSWER-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 Loss Payee Clause - ANSWER-Provides, in event of payment being made under the policy in relation to insured risk, that payment will be made to a third party rather than the beneficiary Mortgagee Clause - ANSWER-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 Liability - ANSWER-Negligence of the insured Commercial Inland Marine - ANSWER-Identifies risks 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 Umbrella Policy - ANSWER-Covers much higher limit and goes above/beyond claims directly relating to home and auto; protects assets from unforeseen events Known Loss - ANSWER-Prevents insured from coverage if insured knew the loss was probable at time of contract Commercial Property Insurance - ANSWER-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