Florida Insurance Claims Adjuster License Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Florida Insurance Claims Adjuster Test. Access multiple choice questions, flashcards, and detailed explanations to enhance your knowledge and confidence. Start mastering the material today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does 'risk' refer to in the insurance industry?

The possibility of a policy cancellation
The chance of financial loss
The certainty of an audit
The potential for insurance fraud

The correct answer is: The chance of financial loss

In the insurance industry, 'risk' refers to the likelihood of financial loss. It is not the possibility of a policy cancellation (A) as not all policies are cancelled due to risk. It is also not the certainty of an audit (C) as this is a separate process from evaluating risk. Finally, it is not the potential for insurance fraud (D) as this refers to deliberate deceit by policyholders, while risk is an inherent aspect of insurance. Therefore, the answer is B - the chance of financial loss.