Florida Insurance Claims Adjuster License Practice Exam

How is money valued under the Valuation clause?

1. At its face value

2. At its value at the time of claim

3. Based on current market value

4. None of the above

The correct answer is: At its face value

The Valuation clause is a provision in insurance policies that determines how much an insurance company must pay for a covered loss. In this case, the correct option is A because money is typically valued at its face value, meaning its nominal or declared worth. Option B is incorrect because it would only apply to non-monetary assets. Option C is also incorrect because while current market value may be used to determine the worth of assets, it is not typically applied to money. Option D is incorrect because there are options available for valuing money, even if they are not listed.