Florida Insurance Claims Adjuster License Practice Exam

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What is concealment in insurance terms?

  1. The act of causing a loss

  2. A guarantee of a fact

  3. The failure to reveal relevant facts

  4. An abandonment clause

The correct answer is: The failure to reveal relevant facts

Concealment in insurance terms refers to the failure to reveal or disclose relevant facts that may affect the insurance policy or coverage. Option A, causing a loss, is not related to concealment and is not a factor in insurance terms. Option B, guaranteeing a fact, is also not related to concealment and is not a common term in insurance. Option D, an abandonment clause, refers to the actions taken by an insured to give up their right to make a claim on their insurance policy, and is not directly related to the concept of concealment. Therefore, option C, the failure to reveal relevant facts, is the most accurate and applicable definition of concealment in insurance terms.

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