ACA FINAL EXAM-With 100% verified solutions-2023-2024, Exams of Business Accounting

Download ACA FINAL EXAM-With 100% verified solutions-2023-2024 and more Exams Business Accounting in PDF only on Docsity! ACA FINAL EXAM-With 100% verified solutions-2023- 2024 At the end of this course, you must do which of the following? Pass the final course exam with a scored of 70% or higher Print your certificate from this website Apply for your Insurance Adjuster license at the Florida Department of Financial Services website at www.myfloridacfo.com/division/agents All of the above All of the above Which of the following is NOT one of the duties of the Department of Financial Services? License adjusters Set rates and write policies for various company products Supervise the claims activity of adjusters Investigate charges of unethical conduct of adjusters Set rates and write policies for various company products When an insurance licensee moves, he has how long to notify the Florida Dept. of Financial Services of his change of address? 10 Days 30 Days 60 Days 180 Days 30 An Insurance Policy is a contract with all of the following characteristics, EXCEPT It is a personal contract. Parties are of unequal power with ambiguities or unclear wording resolved in favor of the insured because it is a contract of adhesion. Indemnity is not part of an insurance contract. There are conditions imposed upon both the insurer and insured. Indemnity is not part of an insurance contract. An insurance contract may contain a "gray area" or an ambiguity, that is generally resolved in favor of the insured because insurance policies are contracts of: Indemnity Cohesion Adhesion Conditions adhesion Strict or Absolute Liability applies to school systems. must have failure to use "due care. "considers the actions of a prudent person. is assigned by law or statute. is assigned by law or statute. Risks that are insurable are: Speculative risk Pure risk Both A & B None of the above Pure Risk The goal of insurance is to restore the insured to the same economic position as before the covered loss occurred, this is the principle of: Adhesion Actual Cash Value Indemnity Severability Indemnity Firemen caused water damage to a property by spraying water to put out a fire. If the property insurance policy listed "fire" as the only named peril: The water damage is not a covered peril. The fire dept. has liability for the water damage. The water damage is covered due to the concept of proximate cause. The Fire damage is covered but not the water damage due to proximate cause. The water damage is covered due to the concept of proximate cause. XYZ Insurance Corp. filed its corporate charter in Tallahassee and has its home office in Tampa: In Florida, XYZ is a domestic insurer. In Florida, XYZ is a foreign insurer. In Florida, XYZ is an alien insurer. None of the above is true. In Florida, XYZ is a domestic insurer. An owner's and contractor's protective liability form A liquor liability form A premises and operations form Which of the following are covered exposures for bodily injury and property damage under the CGL (Commercial General Liability) Policy: Products and completed operations Contractual Liability Contingent Liability All of the above are available in the CGL policy All of the above are available in the CGL policy Under a CGL Occurrence liability form, which policy would cover an accident that occurred June 1, 1998, and was discovered and reported July 15, 2008: A policy dated 1/1/98 to 12/31/98 A policy dated 1/1/99 to 12/31/99 A policy dated 1/1/08 to 12/31/08 No policy would cover a claim filed in 2008 for an accident in 1998 A policy dated 1/1/98 to 12/31/98 A furniture manufacturing business wanted to serve free beer at its company picnic. What is required for this business to have liability coverage for liquor consumption at the picnic? The business CGL policy will cover this exposure The business CGL requires the liquor liability form in this case The business CGL should have the "extension of coverage" endorsementThere is no way liability for alcoholic beverages can be included under CGL The business CGL policy will cover this exposure Insurance agents and adjusters may have their professional activities covered under a type of liability insurance called: Owners Protective LiabilityEmployment Related Practices LiabilityMalpractice LiabilityErrors and Omissions Liability Errors and Omissions Liability The following are employees who must have workers compensation EXCEPT: Government employees Pro athletes Construction industry workers in companies with 1 employee Private employers with 4 or more employees Pro athletes All the following are components of the Workers Compensation EXCEPT: Unlimited death benefits Reimbursement for medical expenses incurred Replacement for lost wages on a percentage basis Funeral costs up to $7500 Unlimited death benefits What is the limit on medical benefits under Workers Compensation? 66 2/3 % of medical costs All medical costs with no limit All medical costs up to the $150,000 death benefit All medical costs up to the 100/100/500 employer liability limit All medical costs with no limit If an insured's administrative assistant fraudulently forged the insured's name on a check, and cashed it, which of the following would cover this event? Employee theft Forgery or alteration Robbery Premises burglary Employee theft Which of the following type of employee theft best fits a business with a large turnover in its personnel? The Name Schedule coverage The Basic Extended Reporting Period The Blanket coverage The firm should reduce its number of employees The Blanket coverage Insurance is considered a two-party contract, Surety Bonds are considered not a contractalso a two-party contract a three-party contract final payments a three-party contract The Surety attempts to avoid default by investigating the principal with regard to: CharacterCapabilityCollateralAll of the above All of the above A builder contracted for framing on a new section of a hospital. There is a surety bond purchased to guarantee completion of the project. Which of the following best describes the hospital position in the surety bond? The hospital is the obligee The hospital is the principalThe hospital is the suretyThe hospital is the indemnitor The hospital is the obligee A health insurance policy was issued containing the provision that the insurance company must renew the policy to a particular age and could NOT adjust the premiums. What is this policy called? A non-cancelable policy A major medical policy An optionally renewable policy A guaranteed renewable policy A non-cancelable policy What type of health insurance plan usually offers the broadest coverage at the lowest cost with the most freedom of choice? Group Insurance PPO Group Insurance HMOPrivate Insurance PolicyPrivate Insurance HMO Group Insurance PPO All of the following are true for Medicare Supplement Insurance EXCEPT: Offered to people over 65 and certain disability receiversCovers some expenses not paid by MedicarePolicy must contain a 180 day "free look"Pre-existing conditions may not be excluded for more than 180 days Policy must contain a 180 day "free look" Jane is a Florida resident with an auto. She has PIP coverage of $10,000 with no deductible. If she is in an auto accident and has medical bills of $10,000, how much will her PIP pay? $10,000$8,000$2,000 0 8,000 If Jane has work loss of $1000 due to the auto accident, how much will her PIP pay for work loss? $10,000$1000$800$600 600 What if Jane's accident happened during the work day while she was driving a State Farm owned auto and Jane was out adjusting auto claims. How much would Jane's PIP pay for her medical injuries? $10,000$8,000$6,000zero Gives appropriate legal advice and writes binding contracts The adjuster has a particular relationship to his principal, the insurer. Which of the following best describes this relationship? It is a fiduciary relationship.It is a functional relationship.It is a final relationship.It is a funny relationship. It is a fiduciary relationship. Comparative negligence is determined through Investigation & AnalysisAgreement between parties or by mediation or arbitrationJudge and/or juryAll of the above may be used to determine comparative negligence All of the above may be used to determine comparative negligence An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: Walk-away settlementA Full Release settlementA Rehabilitation settlementA Structured settlement A Full Release settlement Adjuster Jane moved from one city in Florida to another. What length of time does she have to notify the Insurance Department of the address change? 10 Days30 Days60 Days90 Days 30 days Bad Faith & Adjusting Practices - Under the Florida Unfair Trade Practices Act & the Unfair Methods of Competition and Unfair or Deceptive Acts, all of the following are prohibited, EXCEPT: Adjuster refuses to advise insured of reason claim denied in writingAdjuster denies a claim without reasonable investigationAdjuster keeps accurate records on a claimAdjuster settles a claim based on an altered application. Adjuster keeps accurate records on a claim Florida's Administrative Code contains a Code of Ethics for Adjuster - which of the following is FALSE? An adjuster shall not provide favored treatment to any claimantAn adjuster shall not advise a claimant to refrain from seeking legal adviceAn adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster's own interestsAn Adjuster owes fair and prompt treatment to their own company's policyholders only An Adjuster owes fair and prompt treatment to their own company's policyholders only Which of the following is a duty owed to an invitee? land owner must make reasonable efforts to maintain property in safe conditioninvitee must maintain a care level typical of a reasonable personland owner does not owe any legal duties to an invitee - they are the same as trespassersNone of the above are true land owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? there is no differencethey are not relatedliability is a legal doctrine and coverage is a contractual obligationcoverage is a legal obligation and liability is a legal obligation liability is a legal doctrine and coverage is a contractual obligation All of the following activities are illegal for an adjuster, EXCEPT: Give advice which is of a legal natureUse only company forms to prepare releasesEncourage a claimant to make a quick decision on an offer to settleFail to make claimant aware of potential litigation for claimant's actions Use only company forms to prepare releases An adjuster received written notice from the Department of Financial Services regarding a claim. What length of time does he have to respond to the inquiry? 10 calendar days14 calendar days21 calendar days30 calendar days 21 days Which of the following is NOT a goal in the adjusting process? comply with laws and contractcultivate good customer relations and policyholder retentioncontrol costsalways pay the maximum limit of the policy always pay the maximum limit of the policy Risk may be controlled by which of the following? Safety measuresPurchase of InsuranceRetention of risk (self insure)All of the above All of the above