Florida Insurance Claims Adjuster License Practice Exam

In the event that the Condominium Association Coverage form and the Condominium Unit Owners Coverage form both cover a loss, which of the following is true?

1. Both forms pay equally

2. The Unit Owner form is primary and the Association form is excess

3. The two forms are prorated

4. The Association form is primary and the Unit Owner form is excess

The correct answer is: The Association form is primary and the Unit Owner form is excess

In this scenario, the Association form would be considered primary and the Unit Owner form would be considered excess. This means that the Association form would pay first and any remaining amount would be covered by the Unit Owner form. Option A is incorrect because if both forms cover a loss, one would be considered primary and the other would be considered excess. Option B is incorrect because it states that the Unit Owner form is primary, which is not the case. Option C is incorrect because proration would only occur if the policies were considered equal in terms of coverage. Option D is the correct answer because it correctly identifies the primary and excess forms.