Florida Claims Adjuster Exam
Questions and correct answers
Graded A+
Peril - Correct Answer: Somthing t√dhat causes a loss.
Hazard - Correct Answer: Something that increases the probability that a loss will occur.
Warranty - Correct 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 - Correct Answer: An untrue statement by the insured, made in an
application for insurance but which does not become a part of the policy.
Concealment - Correct Answer: The failure of the insured to reveal relevant facts known to the
insured in applying for insurance.
Abandonment - Correct 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 - Correct Answer: The insurance applies separately to each insured as if other
insureds did not exist.
,Proximate Cause - Correct 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 - Correct Answer: Physical harm to tangible property.
Indirect Loss - Correct Answer: Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV) - Correct Answer: Replacement Cost minus Depreciation
Coinsurance - Correct 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 - Correct Answer: Policies cover people who own and operate things, such as
automobiles.
Conditional Contract - Correct 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 - Correct 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 - Correct 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 - Correct Answer: Generally defined as the voluntary relinquishment or surrender of
some rightor privilege.
, Express Waiver - Correct Answer: Occurs when the insurer or its representative knowingly gives
up a known right under the insurance contract.
Implied Waiver - Correct Answer: May result from some act of neglect on the part of the
adjuster.
Damages - Correct Answer: Money Amounts.
Subrogation - Correct 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 - Correct Answer: All policies provide that any changes to the policy be made by the
insurer, in writing.
Policy Period - Correct 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 - Correct Answer: Condition limiting coverage to occurrences or losses that take
place only within a stated geographical region.
Other Insurance - Correct Answer: The principle of indemnity dictates against duplicate recovery
for the same loss.
Cancellation - Correct 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.
Questions and correct answers
Graded A+
Peril - Correct Answer: Somthing t√dhat causes a loss.
Hazard - Correct Answer: Something that increases the probability that a loss will occur.
Warranty - Correct 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 - Correct Answer: An untrue statement by the insured, made in an
application for insurance but which does not become a part of the policy.
Concealment - Correct Answer: The failure of the insured to reveal relevant facts known to the
insured in applying for insurance.
Abandonment - Correct 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 - Correct Answer: The insurance applies separately to each insured as if other
insureds did not exist.
,Proximate Cause - Correct 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 - Correct Answer: Physical harm to tangible property.
Indirect Loss - Correct Answer: Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV) - Correct Answer: Replacement Cost minus Depreciation
Coinsurance - Correct 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 - Correct Answer: Policies cover people who own and operate things, such as
automobiles.
Conditional Contract - Correct 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 - Correct 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 - Correct 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 - Correct Answer: Generally defined as the voluntary relinquishment or surrender of
some rightor privilege.
, Express Waiver - Correct Answer: Occurs when the insurer or its representative knowingly gives
up a known right under the insurance contract.
Implied Waiver - Correct Answer: May result from some act of neglect on the part of the
adjuster.
Damages - Correct Answer: Money Amounts.
Subrogation - Correct 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 - Correct Answer: All policies provide that any changes to the policy be made by the
insurer, in writing.
Policy Period - Correct 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 - Correct Answer: Condition limiting coverage to occurrences or losses that take
place only within a stated geographical region.
Other Insurance - Correct Answer: The principle of indemnity dictates against duplicate recovery
for the same loss.
Cancellation - Correct 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.
