Florida Insurance Claims Adjuster License Practice Exam

What does severability mean in insurance policies?

1. Physical damage is covered irrespective of the cause

2. The insurance applies separately to each insured

3. An untrue statement made by the insured

4. The inability to reveal relevant facts

The correct answer is: The insurance applies separately to each insured

Severability in insurance policies means that the insurance applies separately to each insured. This means that if there are multiple people covered under the policy, each person's coverage is independent and will not be affected by the actions of another insured. Option A is incorrect because physical damage being covered irrespective of the cause is a principle known as "indemnity" in insurance, but it is not the same as severability. Option C is incorrect because an untrue statement made by the insured would likely result in the insurance policy being voided, rather than invoking the principle of severability. Option D is incorrect because the inability to reveal relevant facts would also likely result in the insurance policy being voided, rather than invoking severability.