Florida Adjuster Exam Questions with correct Answers
What is Insurance? - Answer - A financial tool that protects people from their losses.
Transfers risk from one party to another:
1. Insured (people) purchase
...
Florida Adjuster Exam Questions with correct Answers
What is Insurance? - Answer - A financial tool that protects people from their losses.
Transfers risk from one party to another:
1. Insured (people) purchases an insurance policy
2. Insurer provides financial protection to the insured
How does Insurance work? - Answer - 1. Insured pays a premium
2. Insurer promises to pay for specified losses if they occur
3. Insurer's promise gives peace of mind to insured
Spreading Risk (How Insurance works) - Answer - 1. Collected premiums (from ALL insured) go into a pool called a "reserve"
2. Policyholder can file a claim for covered losses
3. After filing a claim, the insured becomes a claimant
4. Insurer pays for claims out of the "reserved" premiums
5. Reserve should always be enough to cover losses
Principle of Indemnity - Answer - Restoration to previous financial condition; no more, no less.
Indemnification - Answer - Being restored to the financial condition you were in before a loss
Insurance Policy (ACCL) - Answer - 1. Contract to provide financial protection for a fee
2. Legally binding because it meets the 4 requirements of a legal contract
Four Qualification (Insurance Policy-Legal Contract) - Answer - 1. Agreement: mutual consent (signature or handshake)
2. Consideration: all parties bring something of value (money in exchange for a car)
3. Competent parties: 18 years old, sober, and sane
4. Legal purpose: no contract for money laundering (has to be legal)
Insured - Answer - Individual or organization that pays premiums in exchange for protection
Insurer - Answer - Company, group, or government agency offering financial protection
Risk (meaning) - Answer - When an insurer issues an insurance policy, the actual item, person, or organization that is being insured.
Personal
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