FLORIDA 3-20 PUBLIC ADJUSTER STATE EXAM
140 CONCEPT REVIEW GUIDE 2026 CLAIM
INVESTIGATION AND SETTLEMENT PRACTICES
◉ Insurance applies separately to each insured as if other insureds
did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above.
Answer: A. Severability
◉ Property insurance policies usually contain a(n) __________ clause,
stating the insured cannot dump damaged property on the insurer
and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above.
Answer: B. Abandonment
,◉ A(n) __________ is one wherein economic loss would be suffered
from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest.
Answer: D. Insurable Interest
◉ States that if the insurer adopts a revision which would broaden
coverage without additional premium within some period of time
prior to the policy period or during the policy period, the insured
receives the benefit of such broadened coverage.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization.
Answer: D. Liberalization
The time frame is typically 60 days.
◉ The __________ states 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.
A. Doctrine of Proximate Cause
,B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance.
Answer: A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire
but further damage is caused by smoke, water used to extinguish,
and the process of moving property away - fire is considered to be
the *proximate cause* of all of the damage.
◉ The Loss Settlement Valuation that subtracts an allowance for
depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
D. None of the Above.
Answer: A. Actual Cash Value
◉ A policy condition, either based on information in the insured's
application or inserted by the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above.
, Answer: A. Warranty
◉ The following are basic characteristics of a property or liability
insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion.
Answer: C. Loss of Settlement Contract
◉ The Insurer's responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to avoid
the loss, to protect the property against further loss, and to give the
insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above.
Answer: A. Conditional Contract
"may be conditioned"
◉ Which of the following is not one of the "Thresholds" in the "No-
Fault" law?
140 CONCEPT REVIEW GUIDE 2026 CLAIM
INVESTIGATION AND SETTLEMENT PRACTICES
◉ Insurance applies separately to each insured as if other insureds
did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above.
Answer: A. Severability
◉ Property insurance policies usually contain a(n) __________ clause,
stating the insured cannot dump damaged property on the insurer
and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above.
Answer: B. Abandonment
,◉ A(n) __________ is one wherein economic loss would be suffered
from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest.
Answer: D. Insurable Interest
◉ States that if the insurer adopts a revision which would broaden
coverage without additional premium within some period of time
prior to the policy period or during the policy period, the insured
receives the benefit of such broadened coverage.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization.
Answer: D. Liberalization
The time frame is typically 60 days.
◉ The __________ states 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.
A. Doctrine of Proximate Cause
,B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance.
Answer: A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire
but further damage is caused by smoke, water used to extinguish,
and the process of moving property away - fire is considered to be
the *proximate cause* of all of the damage.
◉ The Loss Settlement Valuation that subtracts an allowance for
depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
D. None of the Above.
Answer: A. Actual Cash Value
◉ A policy condition, either based on information in the insured's
application or inserted by the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above.
, Answer: A. Warranty
◉ The following are basic characteristics of a property or liability
insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion.
Answer: C. Loss of Settlement Contract
◉ The Insurer's responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to avoid
the loss, to protect the property against further loss, and to give the
insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above.
Answer: A. Conditional Contract
"may be conditioned"
◉ Which of the following is not one of the "Thresholds" in the "No-
Fault" law?
