Claims Adjuster Final Update: Multiple Choice Questions and Answers, Exams of Advanced Education

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Claims Adjuster Final update (Multiple Choice Questions and answers)

An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of - The insured and insurer An insurer gives which of the following as Consideration for an insurance policy? - A Promise The interest of the insured and all other persons in the property involved in a claim is found in - A Proof of Loss An insured rear-ends another driver's vehicle. The auto policy that pays damages to repair the damaged vehicle is a _______? - Liability Policy Your insurance company wrote an auto insurance binder for an owner who said that he did not have any prior accidents. Immediately thereafter it was discovered that he did not tell the truth. The company now wants to cancel the binder as quickly as possible. What is true? - 5 days notice required For insurance to pay damages, an insurable interest must exist: - When the loss takes place Texting while driving is best described as a: - Hazard A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of $200,000. Both policies are pro-rata policies. How much will policy B pay for this loss? - $60, I sold my home yesterday, signed a deed and transferred title. Last night there was a

house fire. I had not yet cancelled my homeowner's insurance. The purchaser also had a homeowner's policy. Which policy should pay to pay the claim? - Purchaser's policy Giving prompt notice of loss is best described as a policy: - Condition If there is a total loss by an insured peril to a FL building, the insurer must pay: - Actual Cash Value A Loss Payable Clause refers to - Lenders interest in personal property My coin collection was appraised and my insurance company specifically insured the valued of that collection. That is an example of: - A Valued Policy An insurance contract is based on the Principle of: - Utmost Good Faith The two kinds of waivers are: - express and implied Proximate Cause is the unbroken connection between the occurrence and ____ that grows out of the occurrence. - Damages Which loss settlement valuation may be a violation of the Principle of Indemnity? - Replacement Cost If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the value of the property is $100,000, what loss amount will the insurer pay? - $45, The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If

Florida is a ____Negligence state. - Comparative Rule 69B-220.201 prohibits adjusters from - giving legal advice A defense to a claim made by a person who knowingly competes in an extreme sport and is injured would be: - Assumption of Risk In Florida property claims must be paid within __ days of notice of claims. - 90 'Liability' refers to: - The merits of the claim Self-interest or self-dealing is a violation of an adjuster's: - Fiduciary duty A single claimant was injured in an accident with a FL State Employee. What is true? - The maximum recovery is $200, An insured has a split limit auto policy with limits of 10/20/10. What is true? - The insured can never recover any money from this policy Replacement cost less depreciation is the definition of: - Actual Cash Value The FL Unfair Insurance Trade Practices Act penalizes all of the following, EXCEPT: - Keeping accurate records of complaints An insured has an auto policy with a single limit of $30,000. What is true? - This is both a liability and property damage policy.

A insured and two family members were hospitalized for injuries suffered in an auto crash caused by a drunk driver. The insured carried a basic auto liability policy of 10/20/10. What is the maximum that the insured's own liability will pay for these injuries? - 0 An insured had a 50/100/50 auto policy that was the subject of lawsuit. Judgment in the amount of $50,000 with interest was entered against the insured. What is true? - The insurer must pay interest An insured had a 10/20/10 auto policy. The insured was at-fault for two accidents on two consecutive days: One on Friday morning, and another on Saturday afternoon. The property damage in the Friday accident was $5000; the property damage on Saturday was $15,000. What will the policy pay for each property damage claim? - Friday claim-$5000/Saturday claim-$10, The No Fault Law requires: - PIP only Form SR-22 certifies that: - Liability coverage is in effect Medical Payments pays for expenses incurred for services for all of the following arising from an auto accident, except: - Lost wages from an auto accident An insured has stacked 50/100 UM coverage for 3 cars. The maximum the policy will pay for the insured's injuries in one accident caused by an uninsured motorist

The insured owns a garage and sells cars. The garage policy liability limit is 100/300/50. A customer was test-driving a car and caused an accident. At the time, the customer was not an owner and did not carry insurance. The garage policy will provide liability coverage in the amount of: - 10/20/ The insured was in a 2012 automobile accident and had medical bills that totaled $12,000. One month after the accident, and as a result of his injuries, he died. How much will PIP pay for death? - 400 Collision is 'first party' insurance which means: - Payment is paid to the insured

18. Damages in a UM claim may be achieved by any of the following, EXCEPT: - Appeal My car was damaged when I lost control and it overturned. What coverage am I looking for on my policy to repair my car? - Collision My Business Auto has physical damage coverage called 'specified causes of loss'. Which of the following will not be covered? - Wear and Tear I am a FL resident insured for PIP. I drove my car to Miami where I rear-ended a van causing medicals of $5,000 to a FL driver insured for PIP. Which is true? - I have a tort exemption of $4, PIP is primary against all of the following, EXCEPT: - Workers' Compensation A FL insurer made the decision to reduce the number of auto policies offered in

the state of Florida. As a result, cancellation notices were sent to insureds throughout the state. Which of the following is true? - Insurers may cancel for any reason within the first 60 days of a policy An insured was injured by a drunk driver in an auto accident that occurred on March 1, 2017. The insured had a basic PIP policy with a $10,000 limit. On March 16, 2017 the insured was examined for back pain from the accident, in a hospital emergency room, and it was determined that the injuries were serious and may require surgery. What best describes the PIP benefits available? - 0 I was getting out of my parked car when it was hit. The driver that hit my vehicle was driving drunk. At the time of the accident I was out-of-state in New York. I have filed a claim for my medicals with my PIP insurance. What is true? - I was occupying my vehicle, therefore PIP will pay An insured has basic PIP with a $1000 deductible. If the insured is injured in an accident and has $2,000 in covered medicals, how much will PIP pay? - $ An insured had basic PIP coverage with no deductible. He had an accident that occurred January 2, 2018 and sought medical treatment within 14 days, but was not diagnosed as having an emergency medical condition. Medical bills totaled $3000. What will PIP pay? - 2400 I have Additional PIP-$90,000 and Extended PIP. I was in an accident in 2017 and have $100,000 in medicals and $1,000 in lost wages. What will PIP pay? - $100,

insured for PIP, Liability insurance and Uninsured Motorist Coverage. The pedestrian did not own a vehicle and had no PIP. The pedestrian may be entitled to recover damages from which of the insured's coverages? - PIP and Liability Passengers on a cruise ship contracted a serious illness due to the ship's cleanliness and they are now presenting claims for medicals and damages. This type of claim would be covered by the ship's _______coverage. - Protection and Indemnity A business has been accused of detaining a customer resulting in a false arrest for shoplifting. This claim would be covered by: - Personal and Advertising Injury Which of the following is excluded under a standard homeowner's policy? - Flood damage Which of the following is a 'permanent impairment' under workers' compensation? - Loss of limb Which of the following is not considered a 'product' under Products/Completed Operations exposure? - Acreage sold by a realtor A best-selling novelist had computer fraud coverage. His computer was vandalized and the manuscript of his latest novel was destroyed. What is the best description of coverage provided? - Up to $5000 for manuscript, vandalism excluded A bank discovered that one of its' tellers had served time for theft prior to employment. Employee Theft coverage for that employee would be cancelled: - Immediately

An employee stole merchandise from a business on three separate occasions. The value of each theft was more than the Employee Theft policy limit. The business wants the limit to apply separately to each incident. What is true? - The limit applies once to all loss caused by the three thefts Employee theft is written in all of the following ways, EXCEPT: - Scheduled Location coverage A crime policy values securities on: - The day the loss is discovered A dry cleaner damages a customers clothes. Damages would be covered by: - Bailee's customer policy Hackers damaged broke into a bank's system, transferred money, client's information and inserted a virus that damaged the computers. A claim for damages under Computer Fraud coverage has been presented. What may be covered? - Money If a merchant accepts counterfeit money, what is true regarding coverage under Money Orders and Counterfeit Paper Currency? - Currency from any country is covered A drunk driver was arrested and purchased a surety bond (bail bond) to get out of jail. The parties to the bond are the drunk driver, the Court, the Bonding Company and the driver's relative who posted collateral and agreed to reimburse the bonding company if there was a loss. The Court would be the: - Obligee Construction employers must have at least ___ employee(s) before being required to carry Workers' Compensation. - 1

An insurer formed under the laws of the NY would be: - A foreign insurer An adjuster is required to notify the Department of a change in address, telephone and email with ___days. - 30 Transaction of matters arising out of a contract of insurance is governed by Florida Statute ______? - 624. A public adjuster may represent a claimant in all of the following matters, EXCEPT: - Workers' Compensation Claim A public adjuster is required to post a ___bond. - $50, Adjusters must take 24 hours of continuing education ___. - Every two years A catastrophe or emergency adjuster license may be issued for what period of time? - For the period of the emergency determined by the Department An Auto Policy Physical Damage Coverage has a $500 deductible. The deductible does not apply to: - Windshield glass damage A request for mediation of a personal injury claim applies to a claim with a value of ___ or less. - $10, Ethical Requirements require that adjusters must exercise ____when dealing with

elderly clients. - Extraordinary care An adjuster is negotiating with a claimant. The claim will be barred by the statute of limitations in less than 30 days. After that date, the adjuster knows that no claim will be permitted. Ethical Requirements require the adjuster to: - Tell the claimant about the statute of limitations The Department contacts an adjuster about a claim. The adjuster must respond within: - 21 calendar days All of the following apply to public adjuster contracts, EXCEPT: - Signed by the owner of the public adjuster firm A total loss vehicle has two liens on the title. The adjuster is required to: - Make payment to the owner and first lien holder An adjuster shall make truthful and unbiased reports of the facts after making . - A complete investigation An adjuster must pay or deny a property damage claim within, unless there are factors beyond his control. - 90 days The cost of mediation is paid ___. - Equally by both parties Denying claims without____is a violation of Ethical Requirements. - Investigation A public adjuster may be disciplined for all of the following, EXCEPT: - Receiving a contingency fee

the home at least 80% of the time and a $100,000 home must be insured for at least: - $80, Builder's Risk Coverage covers a building in the course of construction. The proper amount of coverage for a building that has an expected completed value of $1 million is ___: - $1 million A provision in a homeowners' policy that pays additional costs required to rebuild a damaged structure so that it conforms to the latest building codes is known as: - Ordinance or Law Damage to a fence under a homeowners' policy would be paid under: - Coverage B A Temporary Total Disability is compensated under Workers' Compensation for a period not to exceed: - 104 weeks When both an attorney and the surety are required to sign checks to disburse an estate's funds, this is an example of: - Joint Control A 'medical incident' covered by Physician's Professional Liability Insurance would not include: - Assault of a patient An Excess Liability policy that has the same terms and conditions as the underlying policy is an example of: - A Follow Form policy Which of the following is NOT 'mobile equipment' in a Business Auto Policy? - Work Truck

A driver convicted of driving under the influence must carry liability limits of at least: - 100/300/ The right to sue when damaged by the practices of an insurance company is based upon the: - Unfair Trade Practices Act The cost to replace an item less depreciation is a description of: - Actual Cash Value An adjuster is a ___ agent. - Fiduciary Auto liability insurance will pay damages to others for all of the following, EXCEPT: - Injuries caused by intentionally hitting someone An auto dealer allowed a customer to test drive a vehicle believing that the person was interested in buying the car. The customer tricked the dealer and stole the car. Which coverage would provide physical damage coverage if the car was damaged or wrecked by the thief? - The coverage needed by a business to cover the loss of property surrendered as a result of a kidnapping threat of the insured is: