Florida Public all lines adjuster Exam Questions With Complete Solutions
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Florida Public all lines adjuster
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Florida Public All Lines Adjuster
Florida Public all lines adjuster Exam Questions With Complete Solutions
Subordination - Answer-When the insured collets damages from his or her own insurance company and those damages were caused by negligent third-party, the insurance company steps into the shoes of the insured and is entitled...
Florida Public all lines adjuster Exam
Questions With Complete Solutions
Subordination - Answer-When the insured collets damages from his or her own
insurance company and those damages were caused by negligent third-party, the
insurance company steps into the shoes of the insured and is entitled to recover the
damages actually paid to the insured from the negligent party
/.liability insurance - Answer-Means that the payment by the insurance company will be
made to a third-party injured or damaged by the insured. An insured can we never
recover damages from their own liability policy.
/.DICE: Declarations, insuring agreement , condition, and exclusions. - Answer-For
fundamental parts of all property and liability insurance contracts
/.Proof of Loss - Answer-The evidence offered by the insured to support the claim for
damages and, assigned sworn statement by the insured verifying that the required
according to the policy or the insurance company.
/.Severability - Answer-Insurance applies separately to each insured as if the other
insured does not exist. Example: A homeowner who intentionally set fire to the house
will not prevent the bank that holds the mortgage from recovering insurance for the
damage done to the home.
/.risk - Answer-Insurance policies transfer risk, or the chance of financial loss.
/.Primary Policy - Answer-A basic, fundamental insurance policy which pays first with
respect to other outstanding policies followed by an Excess Policy.
/.Pro-rata policies - Answer-Will pay the proportion that it's limit bears to all limits that
applied to the loss.
/. - Answer-Policy A has a limit of 25,000; policy B has a limit of $50K; A loss is $6000. If
we add the policy limits, we have a total of $75,000. Policy A's limit is the 1/3 of the total
limit, therefore policy I will pay 1/3 of the loss, or $2000. Policy B limit is 2/3 of the total
limit therefore policy be will pay 2/3 of the loss or $4000.
/.peril - Answer-Fire, windstorm, earthquakes, and flood. Insurance companies only
cover perils
/.Hazards - Answer-Increase the loss by a peril. There are three types of hazards.
A physical hazard is illustrated by a broken smoke alarm. The physical condition of the
alarm increases the chance of lost by fire.
, Moral hazard is the consensus attitude of the insured. And insured that intends to
commit arson increases the chance that there will be a loss by fire.
A morale hazard is an unconscious attitude of the insured, i.e. carelessness. A driver
that is text messaging while operating a motor vehicle increases the chance of loss in
an automobile accident.
/.Lender interests - Answer-Insurance company protect a lender as an insured. A lender
that makes a loan secured by real property is protected by a mortgage clause or a
mortgagee clause. A lender that makes a loan secured by personal property, such as
an auto loan, is protected by a loss payable clause and is referred to as a loss payee
/.Actual Cash Value - Answer-replacement cost minus depreciation
/.Replacement Cost - Answer-Common on buildings however this valuation appears to
violate the principle of indemnity. The principal of Indemnity provides that the insured
shall not profit from the payment made for loss. Replacement cost provides new for old
and therefore appears to violate this principle
/.Direct Loss - Answer-Defined as physical harm or damage to tangible property.
Tangible property is a property that you can see touch and feel. Fire damage to an
office building is a direct loss.
/.Indirect Loss - Answer-Is the economic loss that results from a direct loss. Therefore
the indirect laws that arises from fire damage office building would be the cost of
relocation and any loss of profits while repairing the business location.
/.straight deductible - Answer-Is a flat amount subtracted from the loss. It is the amount
of the loss the insured has agreed to be responsible for.
/.Percentage Deductible - Answer-Requires a deduction of a percentage of the value of
the property or percentage of the policy limits. Example: uninsured has a 5% hurricane
deductible. If the value of the property is $100,000, and hurricane causes $6000 of
damage, the insurance deductible will be $5000 subtracted from the loss and the
insurance company will pay the remaining $1000.
/.Franchise Deductible - Answer-Specifies that when the loss is equal to or more than
the deductible, the loss will be paid in full. Example: a franchise deductible is $5000: a
loss is $4999; no insurance payment will be made. If the loss is $5000 or more, the
deductible will disappear and the loss will be paid in full.
/.Coinsurance Definition - Answer-Most commercial policies contain a coinsurance
clause that provide that an insured must carry a specific amount of coverage in order to
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