Negligence, Equipment Breakdown & Adjuster Practices

Comparative Negligence / Fault

Florida liability questions may involve comparative negligence or fault allocation. This means the exam may ask what happens when more than one party shares responsibility for an accident or loss.

Important Point

The insured’s recovery or liability may be affected by the degree of fault assigned.

Example

If one driver is mostly at fault but the other driver also contributed to the accident, the exam may ask how fault affects the claim.

This section is usually tested more as a legal principle than as a deep math exercise.

Boiler and Machinery / Equipment Breakdown

This topic is often tested under the modern idea of equipment breakdown coverage. It applies to losses involving mechanical, electrical, or pressure-system breakdown of covered equipment.

Why it matters: Students sometimes think only of fire or wind losses in property insurance, but Florida General Lines also tests internal equipment failure exposures.

Example

A commercial refrigeration unit suffers internal breakdown. That is not a standard fire loss question. It is more likely an equipment breakdown issue.

Adjuster Practices

This is a very practical and very testable section. Florida General Lines wants you to understand not just policies, but also how claims are actually handled.

Adjuster’s Responsibilities

An adjuster is responsible for handling claims fairly and professionally. This includes duties such as:

• Investigating claims
• Evaluating damages
• Communicating with claimants
• Helping move the claim toward resolution The exam may test what an adjuster should or should not do.

The insurer’s goals in claims handling include:

• Prompt investigation
• Fair evaluation
• Timely communication
• Proper settlement of covered claims Florida regulates claims handling closely, so this is an area where bad-faith or unfair-claims-practice themes may appear.

Basic claim handling activities may include:

• Receiving notice of loss
• Reviewing coverage
• Contacting the insured or claimant
• Inspecting damage
• Gathering documentation
• Evaluating liability or damages
• Recommending or issuing payment These may sound obvious, but the exam often turns them into scenario questions.

Common Settlement and Release Options: Once a claim is ready for settlement, different release or settlement approaches may apply depending on whether the claim is first-party or third-party. The exam may test whether the claim was settled fairly and whether proper release procedures were followed.

Property Adjusting Practices

Ref: 627.70131

Florida property adjusting practices are especially important. This area often tests whether the insurer or adjuster acted promptly and properly in handling a property loss.

Important Point

Property claims must be acknowledged, investigated, and adjusted in accordance with Florida law and within required standards.

Why this matters: This is one of those sections where the exam may give you a timeline and ask whether the insurer complied.

Liability Adjusting Practices

Liability adjusting is different from property adjusting because the focus is often on:

• Legal responsibility
• Defense issues
• Settlement negotiations
• Third-party damages The exam may test whether the adjuster handled the claim fairly and appropriately based on liability principles.

Definition of Adjusters

Florida distinguishes among several types of adjusters.

Definitions

Company Adjuster

A company adjuster works for the insurer directly.

Independent Adjuster

An independent adjuster works on behalf of insurers but is not an employee of one insurer.

Public Adjuster

A public adjuster represents the insured, not the insurance company.

Important Point

• Company adjuster = Works for insurer
• Independent adjuster = Works for insurers on a contract basis
• Public adjuster = Works for the insured