FLORIDA CLAIMS ADJUSTER EXAM, 6-20 ALL LINES ADJUSTER- FLORIDA- REVIEW
1. Peril Something that causes a loss.
2. Hazard Something that increases the
... [Show More] proba- bility that a loss will occur.
3. Warranty A policy condition, either based on information in the insureds applica- tion or inserted by the insurer. It is a guarantee of a fact.
4. Misrepresentation An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy.
5. Concealment The failure of the insured to reveal relevant facts known to the insured in applying for insurance.
6. Abandonment Property insurance policies usual- ly contain an abandonment clause, stating the insured cannot dump damaged property on the insurer and demand its full value.
7. Severability The insurance applies separately to each insured as if other insureds did not exist.
8. Proximate Cause The cause having the most signif- icant impact in bringing about the loss under a first-party property in- surance policy, when two or more independent perils operate at the same time (i.e., concurrently) to pro-
duce a loss. Courts employ a set of rules to resolve causation 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 pattern.
Under common law, whether the pol- icy provides coverage depends on which peril is chosen as the proxi- mate cause.
9. Direct Loss Physical harm to tangible property.
10. Indirect Loss Economic loss which flows as a re- sult of direct loss.
11. Actual Cash Value(ACV) Replacement Cost minus Deprecia-
tion
12. Coinsurance The amount, generally expressed as a fixed percentage, an insured must
pay against a claim after the de- ductible is satisfied. It's ultimately 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. Coinsur- ance can be written on an 80/20, 90/100, or 100% rule.
13. Personal Contract Policies cover people who own and operate things, such as automo- biles.
14. Conditional Contract Also called a hypothetical contract, is a contract agreement that only requires performance once the de- lineated conditions are met. This le- gal agreement requires prior per- formance of another agreement or clause in order to be enforceable. If the other agreement or condition is performed, then the conditional con- tract is enforceable and the parties are bound to carry out the terms of the contract.
15. Contract of Indemnity Principle of insurance that provides that when a loss occurs, the insured
should be restored to the approxi- mate financial condition he/she oc- cupied before the loss occurred, no better or no worse.
16. Insurable Interest the reasonable concern of a person to obtain insurance for any individ- ual or property against unforeseen events such as death, losses, etc.
17. Waiver 1.) Implied voluntary relinquish- ment, abandoning a legal advan- tage, 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 nor- mal policy.
18. Express Waiver Occurs when the insurer or its rep- resentative knowingly gives up a known right under the insurance contract.
19. Implied Waiver A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a right.
20. Damages Monetary compensation that is awarded by a court in a civil action to an individual who has been injured through the wrongful conduct of an- other party.
21. Subrogation When an insured has a right to col- lect damages from another party, but instead elects to claim the damages under his insurance policy, his rights against the other party are trans- ferred to the insurer.
22. Changes All policies provide that any changes to the policy be made by the insurer, in writing.
23. Policy Period The condition states that coverage applies only to losses or occur- rences that take place during the policy period. (Prior to the stated date and time of termination).
24. Policy Territory Condition limiting coverage to occur- rences or losses that take place only within a stated geographical region.
25. Other Insurance The principle of indemnity dictates against duplicate recovery for the same loss.
26. Cancellation The insured may cancel at any time, for any reason, without advance no-
tice. If the conpany wishes to cancel, it must provide some degree of ad- [Show Less]