Florida Insurance Claims Adjuster License Practice Exam

What does direct loss refer to?

1. The cause of a loss

2. Physical harm to tangible property

3. A policy condition

4. The failure to reveal relevant facts

The correct answer is: Physical harm to tangible property

Direct loss includes physical harm to tangible property such as a car crash, a fire, or a flood. It does not include the cause of the loss itself, which is known as the proximate cause. It also does not refer to policy conditions, which are specific requirements that must be met in order for coverage to be applied. Additionally, direct loss does not involve the failure to reveal relevant facts, which would fall under the category of misrepresentation. Therefore, option B is the best answer as it accurately describes what direct loss refers to.