Florida Claims Adjuster Exam, 6-20 All Lines
Adjuster 2026 update
Peril
Something that causes a loss.
Hazard
Something that increases the probability that a loss will occur.
Warranty
A policy condi on, either based on informa on in the insureds applica on or inserted by the
insurer. It is a guarantee of a fact.
Misrepresenta on
An untrue statement by the insured, made in an applica on for insurance but which does
not become a part of the policy.
Concealment
The failure of the insured to reveal relevant facts known to the insured in applying for
insurance.
Abandonment
Property insurance policies usually contain an abandonment clause, sta ng the insured
cannot dump damaged property on the insurer and demand its full value.
Severability
The insurance applies separately to each insured as if other insureds did not exist.
Proximate Cause
The cause having the most significant impact in bringing about the loss under a first-party
property insurance policy, when two or more independent perils operate at the same me
(i.e., concurrently) to produce a loss. Courts employ a set of rules to resolve causa on
disputes when a property policy states that it covers or excludes losses "caused by" a peril
and there is more than one peril at work in a fact pa+ern. Under common law, whether the
policy provides coverage depends on which peril is chosen as the proximate cause.
Direct Loss
Physical harm to tangible property.
,Indirect Loss
Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV)
Replacement Cost minus Deprecia on
Coinsurance
The amount, generally expressed as a fixed percentage, an insured must pay against a claim
a3er the deduc ble is sa sfied. It's ul mately a way for the insured and insurer to share
responsibility for the risk. It can also help reduce the cost of the insurance policy premium.
Coinsurance can be wri+en on an 80/20, 90/100, or 100% rule.
Personal Contract
Policies cover people who own and operate things, such as automobiles.
Condi onal Contract
Also called a hypothe cal contract, is a contract agreement that only requires performance
once the delineated condi ons are met. This legal agreement requires prior performance of
another agreement or clause in order to be enforceable. If the other agreement or condi on
is performed, then the condi onal contract is enforceable and the par es are bound to carry
out the terms of the contract.
Contract of Indemnity
Principle of insurance that provides that when a loss occurs, the insured should be restored
to the approximate financial condi on he/she occupied before the loss occurred, no be+er
or no worse.
Insurable Interest
the reasonable concern of a person to obtain insurance for any individual or property
against unforeseen events such as death, losses, etc.
Waiver
1.) Implied voluntary relinquishment, abandoning a legal advantage, need, claim or right.
2.) Agreement or added clause of a policy that excludes some losses or limits the sum of a
claim, or extends coverage to add items not in a normal policy.
Express Waiver
Occurs when the insurer or its representa ve knowingly gives up a known right under the
insurance contract.
Implied Waiver
,A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a
right.
Damages
Monetary compensa on that is awarded by a court in a civil ac on to an individual who has
been injured through the wrongful conduct of another party.
Subroga on
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
All policies provide that any changes to the policy be made by the insurer, in wri ng.
Policy Period
The condi on states that coverage applies only to losses or occurrences that take place
during the policy period. (Prior to the stated date and me of termina on).
Policy Territory
Condi on limi ng coverage to occurrences or losses that take place only within a stated
geographical region.
Other Insurance
The principle of indemnity dictates against duplicate recovery for the same loss.
Cancella on
The insured may cancel at any me, for any reason, without advance no ce. If the conpany
wishes to cancel, it must provide some degree of advance no ce so the insured will have
me to replace the coverage.
Appraisal
A wri+en contract of or wri+en agreement for or effec ng insurance, or the cer ficate
thereof, by whatever name called, and includes all clauses, riders, endorsements and papers
which are a part thereof.
Insurance
Is a contract whereby one undertakes to indemnify another or pay or allow a specified
amount or a determinable benefit upon determinable con ngencies.
Binder
, Acts as a temporary contract un l the policy is issued.
How many days should an insurer give for prior no ce of cancella on of a binder?
5 days.
Property Insurance
Any insurance wherein payment by the insurer will be paid directly to the insured or other
specifically named interests.
Liability Insurance
Payment will be on behalf of the insured to another, based upon the insureds liability to the
recipient. Simply stated, Liability is "Negligence of the Insured".
Loss Payee Clause
A Clause in a contract of insurance that provides, in the event of payment being made under
the policy in rela on to the insured risk, that payment will be made to a 3rd party rather
than to the insured beneficiary of the policy.
Mortgage Clause
A property insurance provision gran ng special protec on for the interest of a mortgagee
named in the policy, in effect seEng up a separate content between the insurer and the
mortgagee.
Other Structures
Covers items that are not permanently a+ached to the main dwelling, such as a shed, fence,
etc.
Commercial Inland Marine
Helps iden fy the kinds of risk which are eligible for either ocean or inland Marine
insurance.
Building Ordinance Coverage
This endorsement covers the insured for enforcement of laws which require demoli on of
undamaged por ons of buildings.
Umbrella Policy
Covers a much higher limit and goes above and beyond claims directly rela ng to your home
and auto, it provides your assets from an unforeseen event, such as a tragic accident in
which you are held responsible for damages or bodily injuries.
Known Loss
Adjuster 2026 update
Peril
Something that causes a loss.
Hazard
Something that increases the probability that a loss will occur.
Warranty
A policy condi on, either based on informa on in the insureds applica on or inserted by the
insurer. It is a guarantee of a fact.
Misrepresenta on
An untrue statement by the insured, made in an applica on for insurance but which does
not become a part of the policy.
Concealment
The failure of the insured to reveal relevant facts known to the insured in applying for
insurance.
Abandonment
Property insurance policies usually contain an abandonment clause, sta ng the insured
cannot dump damaged property on the insurer and demand its full value.
Severability
The insurance applies separately to each insured as if other insureds did not exist.
Proximate Cause
The cause having the most significant impact in bringing about the loss under a first-party
property insurance policy, when two or more independent perils operate at the same me
(i.e., concurrently) to produce a loss. Courts employ a set of rules to resolve causa on
disputes when a property policy states that it covers or excludes losses "caused by" a peril
and there is more than one peril at work in a fact pa+ern. Under common law, whether the
policy provides coverage depends on which peril is chosen as the proximate cause.
Direct Loss
Physical harm to tangible property.
,Indirect Loss
Economic loss which flows as a result of direct loss.
Actual Cash Value(ACV)
Replacement Cost minus Deprecia on
Coinsurance
The amount, generally expressed as a fixed percentage, an insured must pay against a claim
a3er the deduc ble is sa sfied. It's ul mately a way for the insured and insurer to share
responsibility for the risk. It can also help reduce the cost of the insurance policy premium.
Coinsurance can be wri+en on an 80/20, 90/100, or 100% rule.
Personal Contract
Policies cover people who own and operate things, such as automobiles.
Condi onal Contract
Also called a hypothe cal contract, is a contract agreement that only requires performance
once the delineated condi ons are met. This legal agreement requires prior performance of
another agreement or clause in order to be enforceable. If the other agreement or condi on
is performed, then the condi onal contract is enforceable and the par es are bound to carry
out the terms of the contract.
Contract of Indemnity
Principle of insurance that provides that when a loss occurs, the insured should be restored
to the approximate financial condi on he/she occupied before the loss occurred, no be+er
or no worse.
Insurable Interest
the reasonable concern of a person to obtain insurance for any individual or property
against unforeseen events such as death, losses, etc.
Waiver
1.) Implied voluntary relinquishment, abandoning a legal advantage, need, claim or right.
2.) Agreement or added clause of a policy that excludes some losses or limits the sum of a
claim, or extends coverage to add items not in a normal policy.
Express Waiver
Occurs when the insurer or its representa ve knowingly gives up a known right under the
insurance contract.
Implied Waiver
,A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a
right.
Damages
Monetary compensa on that is awarded by a court in a civil ac on to an individual who has
been injured through the wrongful conduct of another party.
Subroga on
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
All policies provide that any changes to the policy be made by the insurer, in wri ng.
Policy Period
The condi on states that coverage applies only to losses or occurrences that take place
during the policy period. (Prior to the stated date and me of termina on).
Policy Territory
Condi on limi ng coverage to occurrences or losses that take place only within a stated
geographical region.
Other Insurance
The principle of indemnity dictates against duplicate recovery for the same loss.
Cancella on
The insured may cancel at any me, for any reason, without advance no ce. If the conpany
wishes to cancel, it must provide some degree of advance no ce so the insured will have
me to replace the coverage.
Appraisal
A wri+en contract of or wri+en agreement for or effec ng insurance, or the cer ficate
thereof, by whatever name called, and includes all clauses, riders, endorsements and papers
which are a part thereof.
Insurance
Is a contract whereby one undertakes to indemnify another or pay or allow a specified
amount or a determinable benefit upon determinable con ngencies.
Binder
, Acts as a temporary contract un l the policy is issued.
How many days should an insurer give for prior no ce of cancella on of a binder?
5 days.
Property Insurance
Any insurance wherein payment by the insurer will be paid directly to the insured or other
specifically named interests.
Liability Insurance
Payment will be on behalf of the insured to another, based upon the insureds liability to the
recipient. Simply stated, Liability is "Negligence of the Insured".
Loss Payee Clause
A Clause in a contract of insurance that provides, in the event of payment being made under
the policy in rela on to the insured risk, that payment will be made to a 3rd party rather
than to the insured beneficiary of the policy.
Mortgage Clause
A property insurance provision gran ng special protec on for the interest of a mortgagee
named in the policy, in effect seEng up a separate content between the insurer and the
mortgagee.
Other Structures
Covers items that are not permanently a+ached to the main dwelling, such as a shed, fence,
etc.
Commercial Inland Marine
Helps iden fy the kinds of risk which are eligible for either ocean or inland Marine
insurance.
Building Ordinance Coverage
This endorsement covers the insured for enforcement of laws which require demoli on of
undamaged por ons of buildings.
Umbrella Policy
Covers a much higher limit and goes above and beyond claims directly rela ng to your home
and auto, it provides your assets from an unforeseen event, such as a tragic accident in
which you are held responsible for damages or bodily injuries.
Known Loss
