Florida Insurance Claims Adjuster License Practice Exam

What is the payment that an insurance company makes directly to the insured known as?

1. Benefit

2. Endorsement

3. Indemnity

4. Property or first-party insurance

The correct answer is: Property or first-party insurance

The correct answer is D, property or first-party insurance. This is because the payment made by an insurance company directly to the insured is known as a first-party or property insurance, and it covers the insured's own losses or damages. Option A, B, and C are incorrect because they refer to different terms in the insurance industry that do not specifically correspond to this type of payment. Benefit usually refers to a supplemental payment or advantage received from an insurance policy, endorsement refers to a policy amendment or change, and indemnity refers to the protection against loss or damage specified in an insurance contract. Therefore, D is the most appropriate option for the given question.