Florida Insurance Claims Adjuster License Practice Exam

Liability Insurance provides payment on behalf of the insured based on what?

1. The recipient's request

2. The insured's liability

3. The insurer's discretion

4. A flat rate specified in the policy

The correct answer is: The insured's liability

Liability insurance provides payment on behalf of the insured when the insured is found legally responsible for damages or injuries caused to others. The other options are incorrect because A) the recipient's request does not determine the payment, B) the insured's liability does not involve a request from the recipient, C) the insurer's discretion does not determine the payment, and D) a flat rate specified in the policy would not take into account the specific liability of the insured.