Florida Insurance Claims Adjuster License Practice Exam

What does the abandonment clause in property insurance policies state?

1. Insurance applies separately to each insured

2. Insured cannot dump damaged property on the insurer and demand its full value

3. Physical harm to tangible property is covered

4. A guarantee of a fact

The correct answer is: Insured cannot dump damaged property on the insurer and demand its full value

The abandonment clause in property insurance policies prevents the insured from simply dumping their damaged property on the insurer and demanding its full value. This clause protects insurance companies from having to pay for property that may not have actually been damaged or that may have been intentionally damaged by the insured. It ensures that property damage is properly assessed and prevents fraudulent claims. Option A is incorrect because it refers to the "separate insurance" clause, which states that the insurance applies to each insured individually and not as a group. Option C is incorrect because it refers to the "physical harm" clause, which states that physical damage to tangible property is covered by the insurance policy. Option D is incorrect because it does not pertain to property insurance policies. It refers to a "guarantee of fact," which is not relevant to the abandonment clause in property insurance policies.