Florida Insurance Claims Adjuster License Practice Exam

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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!

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What is a Contract of Indemnity?

A contract that covers all insurable interests.
A contract ensuring premium returns.
A principle ensuring restoration to the financial condition before the loss.
A contract that only covers direct losses.

The correct answer is: A principle ensuring restoration to the financial condition before the loss.

A Contract of Indemnity is an agreement between two parties where one party agrees to compensate the other party for any loss or damages they may experience. This type of contract is designed to restore the injured party to the same financial position they were in before the loss occurred. Hence, options A and B are incorrect because a Contract of Indemnity does not cover all insurable interests and it is not solely focused on ensuring premium returns. Option D is also incorrect because a Contract of Indemnity can cover both direct and indirect losses.