Florida Insurance Claims Adjuster License Practice Exam

What is misrepresentation?

1. Physical damage to property

2. An abandonment clause

3. A policy condition

4. An untrue statement by the insured

The correct answer is: An untrue statement by the insured

Misrepresentation is an untrue statement made by an insured in order to obtain insurance coverage or to receive a lower premium. Option A is incorrect because physical damage to property is not related to misrepresentation. Option B is incorrect because an abandonment clause is a provision in an insurance policy that allows the policyholder to abandon damaged property and still be refunded for its value. Option C is incorrect because a policy condition is a provision in an insurance contract that outlines the responsibilities and obligations of both the insurer and the insured.