FLORIDA PUBLIC ADJUSTER STATE EXAM SET ONE ACTUAL EXAM QUESTIONS AND CORRECT VERIFIED ANSWER 2025

The insurer and insured agree to a specific value of insured item - Correct Answer-Agreed Value Policies Someone who has care, custody or control of another's property - Correct Answer-Bailee Claim filed by policy holder against his _ - Correct Answer-First Party Claim When a person who entrusts another with an object and it results in injury to someone can be held liable for the injury to someone. Can be held liable for the injury i.e. Firearm or DWI - Correct Answer-Negligent Entrustment Hazard that results from a conscious decision made by an insured to participate in a manner or behavior more likely to result in a loss because they have insurance - Correct Answer-Moral Hazard Used to provide temporary insurance coverage until an insurance policy can be written - Correct Answer-Binder Required by lenders to guarantee that outstanding loans against a job are paid upon completion - Correct Answer-Completion Bonds The section of an insurance policy identifying the insured, endorsements, coverages, limits, and premiums - Correct Answer-Declarations Policyholder cannot transfer the policy to someone else without written permission from their insurance company - Correct Answer-Assignment An instance, behavior or environment that increases the likelihood of a loss on an insured item - Correct Answer-Hazard Actual cause or source of an incidence of destruction, injury, or loss - Correct Answer-Peril An insurance company organized and domiciled outside the US - Correct Answer-Alien When there is an unbroken chain of events between an occurrence and a loss, then the loss is part of the original occurrence - Correct Answer-Proximate Cause Is proximate cause of all subsequent damages - Correct Answer-Original Occurance An individual who contracts with an adjusting firm as an independent contractor and handles claims for the insurance companies - Correct Answer-Independent Adjuster Action or practice of the insured party is permitted to continue because any defense against a continuation of said action or practice has been waived by the insurer - Correct Answer-Estoppel Operate for profit, collect premiums, reserve a portion of premiums to pay claims - Correct Answer-Commercial Insurers Any person who investigates or adjusts losses on behalf of either an insurer or a self-insured - Correct Answer-Independent Adjuster The result of an insured's tort or wrongdoing. Consequences of a loss or amount or type of losses suffered - Correct Answer-Damages Requires the insured to insure the named property for a specific amount of insurance as required by the insurance company - Correct Answer-Agreed Value Physical harm to tangible property caused by peril (loss to property or person in which a covered peril is the proximate cause of damage or destruction) - Correct Answer-Direct loss The entity that is the "recipient" to the Principal - Correct Answer-Obligee Insurance contracts are written on a take it or leave it basis to the policy owner. - Correct Answer-Adhesion Event or circumstance that causes damage - Correct Answer-Occurance Coverage provides for payment of losses if civil authority denies access to the insured premises due to a covered peril - Correct Answer-Civil Authority Voluntary relinquishment of a known legal right - Correct Answer-Waiver An insurer domiciled outside the state where it writes insurance - Correct Answer-Foreign A state officer who administers the state's insurance laws and regulations - Correct Answer-Commissioner Used as a promise to accept a bid if awarded to a company - Correct Answer-Bid bond Damaged property an insurer takes over to reduce their loss after paying a claim - Correct Answer-Salvage Factual statements upon which an insurance policy is based - Correct Answer-Representations A contract between two parties that offer the consumer little to no leeway to negotiate the terms of the contract - Correct Answer-Contract of adhesion Publication in any media by the insured about goods or services - Correct Answer-Advertisements Also known as Absolute Liability, based on the theory of the duty of making something sage that is inherently dangerous - Correct Answer-Strict Torts A house, structure, also referred to as a "primary risk" - Correct Answer-Dwelling Condition enforced by the courts to do something bound under law or in a contract - Correct Answer-Strict Torts Amount of loss paid by the policy holder - Correct Answer-Deductible Violation of an agreement between a seller and buyer in reference to the condition, content, quality, or title of an item sold - Correct Answer-Breach of Warranty Compensation, reparation - Correct Answer-Indemnify Provides property coverage on a contractor's interest in equipment intended for permanent installation while it is being transported, unloaded, and installed - Correct Answer-Installation Floater