Florida Insurance Claims Adjuster License Practice Exam

What principle places serious responsibilities on claim adjusters regarding their conduct and claims handling activities?

1. The Principle of Utmost Good Faith

2. The Principle of Indemnity

3. The Principle of Insurable Interest

4. The Principle of Contribution

The correct answer is: The Principle of Utmost Good Faith

The Principle of Utmost Good Faith, also known as the Principle of Uberrimae Fidei, is a fundamental principle of insurance that places serious responsibilities on claim adjusters regarding their conduct and claims handling activities. This principle requires both the insurer and the insured to act with honesty, fairness, and utmost good faith towards each other in all aspects of the insurance contract. It also requires the claim adjuster to fully disclose all relevant information to the insured and to handle claims promptly and fairly. This principle applies to all types of insurance contracts, including life, health, and property insurance. Option B, the Principle of Indemnity, is not the correct answer because it is a principle that states an insured should not profit from a loss and should only receive the amount necessary to cover their loss. Option C, the Principle of Insurable Interest, is also not the correct answer because it states