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 is the purpose of the Loss Payee Clause in an insurance contract?

To ensure the insurer profits
To prevent any payment
To make payment to a third party
To insure international risks

The correct answer is: To make payment to a third party

The purpose of the Loss Payee Clause is to ensure payment is made to a third party, typically a lender or financial institution, in the event of a covered loss. Option A is incorrect because the primary purpose of insurance is to protect against financial loss, not to guarantee profits. Option B is incorrect because insurance contracts are designed to provide financial protection, not prevent payment. Option D is incorrect because a Loss Payee Clause is typically found in domestic insurance policies, not international ones.