Exam 1 insurance licensing florida Questions and Answers(Graded A)

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. Breach of contract by a carrier or its adjuster, through non-payment or non-compliance with policy requirements, could have which of the following consequences for a carrier (select one from the following): - ANSWER-If found guilty of a breach of contract, the carrier could be punished with a "bad faith" verdict that would cost it millions of dollars. When you purchase insurance, you are buying: - ANSWER-Peace of mind that if an insured event does occur, that the insurance company will keep its promise and provide the financial protection that you purchased.