Florida 3-20 Public Adjuster Exam Outlines With Verified And 100% Correct Answers, Exams of Advanced Education

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Florida 3-20 Public Adjuster Exam

Outlines With Verified And 100% Correct

Answers

There are several important statutory requirements pertaining to contracts made by public adjusters: - Correct Answer-Must state the type of claim, including an emergency claim, non-emergency claim or supplemental claim. Requires the signatures of all named insureds. If the signatures of all named insureds are not available, the public adjuster must submit an affidavit signed by the available named insureds attesting that they have authority to enter into the contract and settle all claim issues on behalf of the named insureds. An unaltered copy of the contract must be remitted to the insurer within 30 days after execution. This means the contract provided to the insurer must also contain the agreed upon fee percentage. True or False: Both mediation and sinkhole neutral evaluation are non-binding. Neither the insured nor the insurance company is legally obligated to accept the outcome of the mediation conference. - Correct Answer-True The ______________ is intended for use by parties who are beginning the process of filing suit against an insurer, when a party feels they have been damaged by specific acts of the insurer. The Notice is intended to meet a portion of legal requirements set forth in Section 624.155, Florida Statutes, which requires a party to file Notice with both the insurer and the Department of Financial Services (DFS) at least 60 days prior to bringing an action against the insurer. The DFS does not involve itself in the pre-suit negotiations or communications related to Notices as such actions are not within the scope of its statutory authority. - Correct Answer-Civil Remedies Notice Mediation Statute 627.7015 - Correct Answer-The department shall adopt by rule a property insurance mediation program to be administered by the department or its designee. The department may also adopt special rules which are applicable in cases of an emergency within the state. The rules shall be modeled after practices and procedures set forth in mediation rules of procedure adopted by the Supreme Court. The rules shall provide for:(a) Reasonable requirement for processing and scheduling of requests for mediation.(b) Qualifications, denial of application, suspension, revocation of approval, and other penalties for mediators as provided in s. 627.745 and the Florida Rules for Certified and Court-Appointed Mediators.(c) Provisions governing who may attend mediation conferences.(d) Selection of mediators.(e) Criteria for the conduct of mediation conferences.(f) Right to legal counsel. (5) All statements made and documents produced at a mediation conference shall be deemed to be settlement negotiations in anticipation of litigation within the scope of s. 90.408. All parties to the mediation must negotiate in good faith and must have the

authority to immediately settle the claim. Mediators are deemed to be agents of the department and shall have the immunity from suit provided in s. 44.107. (6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder has 3 business days within which the policyholder may rescind the settlement unless the policyholder has cashed or deposited any check or draft disbursed to the policyholder for the disputed matters as a result of the conference. If a settlement agreement is reached and is not rescinded, it is binding and acts as a release of all specific claims that were presented in that mediation conference. (b) At the conclusion of the mediation, the mediator shall provide a written report of the re Code of ethics (FAC 69B-220.201) - Correct Answer-The work of adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster's own interests in every instance. ... (b) An adjuster shall treat all claimants equally. Florida Insurance Guaranty Association - Correct Answer-establishes and maintains a service-oriented operation for processing covered claims of insolvent members. FIGA is a nonprofit corporation created by the Florida Legislature in 1970. FIGA services pending claims by or against Florida policyholders of member insurance companies which become insolvent and are ordered liquidated. The Residential Property and Casualty Joint Underwriting Association originally created by this statute shall be known as the Citizens Property Insurance Corporation - Correct Answer-The corporation shall provide insurance for residential and commercial property, for applicants who are entitled, but, in good faith, are unable to procure insurance through the voluntary market. Business auto coverage form Section 3 Physical Damage Coverage - Correct Answer- We will pay for "loss" to a covered "auto" or its equipment under: a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or derailment of any conveyance transporting the covered "auto". c. Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. Part D - Coverage for damage to your auto - Correct Answer-the insurance company agrees to pay an amount in excess of your deductible for direct and accidental loss to your covered car or any other car specified in the agreement. Thus, it pays for damage or theft to your car. 627.70131 Insurer's duty to acknowledge communications regarding claims; investigation. - Correct Answer-(1) Upon an insurer's receiving a communication with

respect to a claim, the insurer shall, within 14 calendar days, review and acknowledge receipt of such communication unless payment is made within that period of time or unless the failure to acknowledge is caused by factors beyond the control of the insurer which reasonably prevent such acknowledgment. If the acknowledgment is not in writing, a notification indicating acknowledgment shall be made in the insurer's claim file and dated. A communication made to or by an agent of an insurer with respect to a claim shall constitute communication to or by the insurer. (2) Such acknowledgment shall be responsive to the communication. If the communication constitutes a notification of a claim, unless the acknowledgment reasonably advises the claimant that the claim appears not to be covered by the insurer, the acknowledgment shall provide necessary claim forms, and instructions, including an appropriate telephone number. (3) Unless otherwise provided by the policy of insurance or by law, within 10 working days after an insurer receives proof of loss statements, the insurer shall begin such investigation as is reasonably necessary unless the failure to begin such investigation is caused by factors beyond the control of the insurer which reasonably prevent the commencement of such investigation. (4) For purposes of this section, the term "insurer" means any residential property insurer. (5)(a) Within 90 days after an insurer receives notice of an initial, reopened, or supplemental property insurance claim from a policyholder, the insurer shall pay or deny such claim or a portion of the claim unless the failure to pay is caused by factors beyond the control of the insurer which reasonably prevent such payment. Any payment of an initial or supplemental claim or portion of such Valuation of Mobile/Manufactured Homes - Correct Answer-If the manufactured home's homeowners' policy has a value on it, and you're in a valued policy state, the insurance company will pay up to the limit listed on the policy if the home is deemed a total loss. Some manufactured home policies will have a provision that allows for homes less than a certain age (10 years for example) to be valued at replacement cost. This has been done in part because some companies recognize that construction methods have changed over the years and that the home is newer. It's kind of like getting new car replacement on your auto policy, but only for late models. DP-1 Basic Form - Correct Answer-Perils insured against are fire, lightning, and internal explosion. DP-2 Broad Form - Correct Answer-This dwelling coverage form covers perils included under the DP-1 with ECE and optional VMM endorsement attached, plus: burglars; falling objects; weight of snow, ice, sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, or an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water; freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or of a household

appliance; and sudden and accidental damage from artificially generated electrical current. DP-3 Special Form - Correct Answer-covers the dwelling and other structures on an open perils basis, except for the perils specifically excluded. Basic Form - Correct Answer-covers these 11 "perils" or causes of loss: Fire or Lightning, Smoke, Windstorm or Hail, Explosion, Riot or Civil Commotion, Aircraft (striking the property), Vehicles (striking the property), Glass Breakage, Vandalism & Malicious Mischief, Theft, and Volcanic Eruption. Broad Form - Correct Answer-covers the same 11 perils, but adds 6 more: Falling objects, Weight of ice, snow or sleet, accidental discharge or overflow of water or stream from within plumbing or related systems; does not include discharge or overflow of water from a sump, sudden and accidental rupture of heating, air conditioning, fire protective sprinkler, or hot water heating system. Freezing of plumbing or related systems. And Sudden and accidental damage from artificially generated electrical current. Special Form - Correct Answer-does not specifically list perils, rather it is "all risk" coverage unless otherwise specifically excluded. HO-2 Policy - Correct Answer-home insurance policy covers only your home and personal property against threats specifically named on the policy's declarations page. named peril policy — the covered threats are specifically listed. Below are the 16 named perils covered:. Lightning or fire Hail or windstorm Damage caused by aircraft Explosions Riots or civil disturbances Smoke damage Damage caused by vehicles Theft Vandalism Falling objects Volcanic eruption Damage from the weight of snow, ice, or sleet Water damage from plumbing, heating, or air conditioning overflow Water heater cracking, tearing, and burning Damage from electrical current Frozen pipes These policies are uncommon. Most insurance companies only write an_____ if they deem the risk presented by you and your property to be too great for a higher-level policy. An ____ policy can leave you and your belongings vulnerable to many unnamed perils.

HO-3 Policy - Correct Answer-Homeowners Policy Special Form — part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio, the _____ insures the described owner-occupied dwelling, private structures in connection with the dwelling, unscheduled personal property on and away from the premises, and loss of use. Personal liability coverage and medical payments coverage are also provided by this policy. Coverage of the dwelling, related structures, and scheduled personal property is on an all risks basis, while coverage of unscheduled personal property is on a broad named perils basis. Losses to the dwelling and other structures are paid on a replacement cost basis, with no deduction for depreciation if certain conditions apply. Losses to personal property are paid on an actual cash value (ACV) basis, unless amended by endorsement. HO-4 Policy - Correct Answer-Renters policy. Personal property covered for broad perils. HO-5 Policy - Correct Answer-policies are written on open-perils forms, which means it lists the perils that your insurance doesn't cover. Common Exclusions: Earth movement Ordinance or law Water damage from flood, sewer backup, or water seepage Power failure War Nuclear hazard Intentional loss Government action Collapse Theft to a dwelling under construction Vandalism or malicious mischief if vacant more than 60 days Mold, fungus, or wet rot Neglect, wear and tear, and deterioration Mechanical breakdown Smog, rust, and corrosion Smoke from agricultural smudging and industrial operations Discharge, dispersal, or seepage of pollutants Settling, shrinking, bulging, or expanding of your home's foundation Infestation of birds, vermin, rodents, or insects Animals owned by insured HO-6 Policy - Correct Answer-is home insurance for owners of co-ops or condominiums. It provides personal property coverage, liability coverage and specific coverage of improvements to the owner's unit. ... An HO-6 policy will cover interior damage to your unit, improvements, additions and alterations you've made and your personal property.

HO-8 Policy - Correct Answer-form is a modified version that provides coverage for homeowners unable to attain an HO-3 policy for their older home — typically more than 40 years old. Under an HO-8 policy, the insured's dwelling, personal property, liability, and loss of use are covered. However, it should be noted this insurance policy will not go as far in covering your home and personal belongings as an HO-3 or HO-5 policy. An______ will at least provide certain key coverages against the most common perils (causes of loss) Florida No-Fault Tort Exemption - Correct Answer-Those who comply with the law are granted limited immunity from suits of others through PIP coverage. 4 Exceptions to Tort Exemption(Threshold of No-Fault) - Correct Answer-1. Significant and Permanent loss of bodily function. 2.Permanent injury other than scarring and disfigurement. 3.Significant and Permanent scarring or disfigurement. 4.Death What does NFIP stand for? - Correct Answer-National Flood Insurance Program Form SR-22 - Correct Answer-Drivers Convicted of DUI or a traffic felony over the prior 3 years are required to have 100/300/50 coverage or a certificate of self insurance of $350,000. Contents of a CGL Contract - Correct Answer-1.Declarations Form 2.Common Policy Conditions Form

3. One of:A.Occurrence Form B.Claims Made Form 4.Nuclear Energy Liability Exclusion Endorsement. Declarations of a CGL Contract(4) - Correct Answer-1.Named Insured(including address) 2.Policy Period 3.Premium 4.Limits of Coverage 7 Common CGL Conditions - Correct Answer-1.Cancellation(30 Days by insurer option, 10 Days By no payment). 2.Changes 3.Examination of Books 4.Inspections and Surveys 5.Premiums 6.Transfer 7.Nuclear Endorsement CGL Coverage A - Correct Answer-Bodily Injury and Property Damage Insuring Agreement

The 3 Conditions that define work as "completed" - Correct Answer-1.When all work called for in the contract is completed. 2.When all work to be done at the site has been completed if one contract calls for work at more than one site. 3.When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor. Occurance - Correct Answer-An accident, including continuous or repeated exposure to substantially the same general harmful conditions. accident - Correct Answer-Sudden, unexpected event The Difference between "Occurance" and "Claims Made" CGL Coverages - Correct Answer-The Coverage Trigger:The Occurance Form applies to BI and PD regardless of any later time at which the claim is made.The Claims-Made Form applies only to BI and PD that occurs on or after the "Retro-Active date" Retro-Active Date - Correct Answer-The date on which the coverage legally began. Basic Extended Reporting Period for CGL - Correct Answer-60 Days after expiration Why is the term "Coverage Trigger" misleading? - Correct Answer-Because it intends to refer to the time period during which the insurance contract is in effect. A Homeowners Policy consists of(3 components): - Correct Answer-1.Declarations 2.One of 6 Homeowners forms 3.Mandatory and optional endorsements What are the two main divisions of a Home Owners Form? - Correct Answer-Section I- Property&Section II-Liability 4 Subsections of Section I of a Property Coverage Policy - Correct Answer-1. Coverage 2.Perils Insured Against 3.Exclusions 4.Conditions Who determines how much HO-6 coverages a Condominium Owner needs? - Correct Answer-The Association Homeowners Coverage A - Correct Answer-"Dwelling" covers the dwelling building and structures attached; also construction materials and supplies on or adjacent to the premises. Homeowners Coverage B - Correct Answer-Other Structures or Appurtenant Structures (10% of Coverage A)

Homeowners Coverage C - Correct Answer-(Actual Cash Value) Personal Property Coverage: Usually for 50% of coverage A (in addition) Homeowners Coverage D - Correct Answer-Loss of Use- What is the standard limit of Homeowner's Coverage D for: HO-2, HO-3 & HO-5? - Correct Answer-30% of Coverage A When might "Loss Settlement" cover buildings under Coverages A & B to Full Replacement Cost? - Correct Answer-If the limit of Insurance at the time of Loss is equal to 80% or more of the replacement value of the building. Statute that requires that when Property is Insured for replacement cost is deemed a total loss, the full replacement cost without reservation or holdback of depreciation must be paid. - Correct Answer-627. Four Additional Homeowners Coverages - Correct Answer-1. Claims Expense

2. First Aid Expenses
3. Damage to Property of Others
4. Loss Assessment Does Hurricane Coverage Occur on a Per Occurrence or an Annual Basis - Correct Answer-An annual basis What if there is more than one applicable deductible? - Correct Answer-Only the highest deductible applies. What must the Insured do if they wish to completely reject Windstorm Coverage? - Correct Answer-Hand write "I DO NOT WANT THE INSURANCE ON MY (HOME/MOBILE HOME/CONDOMINIUM UNIT) TO PAY FOR DAMAGE FROM WINDSTORMS OR HURRICANES. I WILL PAY THOSE COSTS. MY INSURANCE WILL NOT." How much notice must the insurer give the insured of non-renewal of a homeowner's Policy? - Correct Answer-120 Days 4 Elements of a Valid Contract? - Correct Answer-1.A manifestation of assent to its terms by parties who make the contract. 2.A sufficient consideration (value or payment) for each promise. 3.Legal Capacity of the parties to contract. 4.Legal Subject matter. Valued Policy Law - Correct Answer-requires payment of the face amount of insurance to the insured if a total loss to real property occurs from a peril specified in the law

Beginning statement of a liability insurance policy - Correct Answer-Insurer agrees "to pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages" or equivalent wording. Coinsurance - Correct Answer-A policy for less than the entire value of the insured property and cover pro-rata whether or not other insurance exists. 80% actually means (pro-rata share)/80% Three Ways in which the limits to a liability insurance policy Insuring Agreement can be expressed? - Correct Answer-1.single limit 2.split limit 3.Aggregate limit 2 Types of Tort Liability - Correct Answer-1.Negligent Liability(Unintentional) 2.Strict Liability(Intentional) What is the difference between Common Law and Statute Law? - Correct Answer- Common Law is based on stare decisis, whereas statutory law is explicit with a statute number. What are the two broad classifications of damages that a plaintiff can seek in an action for money damages? - Correct Answer-1.Compensatory 2.Punitive Two main defenses against Negligence - Correct Answer-1. Assumption of Risk 2.Comparative Negligence Why is it common to have the attorney's name on the settlement draft? - Correct Answer-Because should the insurer pay over the money solely to the claimant, the attorney may sue the company for the fee Contracts wherein the parties are of unequal bargaining power are called? - Correct Answer-Contracts of Adhesion What is the rule of law's attempt to counter balance a contract of Adhesion? - Correct Answer-To have any ambiguities resolved in favor of the insured. Two types of Waivers - Correct Answer-1.Explicit 2.Implied Statute 627.409 - Correct Answer-Statute covering misrepresentation by the insured. Only a defense for the insurer if they didn't know and it would have affected the coverage offer. How long does a residential property policy have to be in effect to hold the insured immune to 627.409(fraud by insured) - Correct Answer-90 Days

6 Responsibilities of the Public Adjuster - Correct Answer-1.Evaluate 2.Substantiate 3.Determine values 4.Negotiate 5.Recommend(upgraded insurance) 6.Re-Open Claims 626.8796 - Correct Answer-Public Adjuster Fraud Statement How long must a Public Adjuster wait after an event that leads to a claim to contact the claimant? - Correct Answer-48 hours. (626.854(13)) What must Public Adjuster Contracts Contain regarding fraud by insured - Correct Answer-Felony Warnings (626.8796) is the requirement for the Public Adjuster. 817. is the felony, 775.082, 775.083 & 775.084 are the punishments. What is the limit to the Public Adjuster's share of a re-opened claim - Correct Answer- 20% (626.854(10)(a)). How long does the client have to cancel the Public Adjuster's Contract - Correct Answer-3 Business Days 626.854 (6) How long must the Public Adjuster keep his written estimate of the claimant's Loss. - Correct Answer-5 years 626.854 (11) If a time consuming process to resolution is more lucrative, may the Public Adjuster loan the client an advance on the claim? - Correct Answer-No 626.854 (8) Can the Public Adjuster acquire an interest in Salvaged Property, for example as payment for Services? - Correct Answer-Not without written consent and a signed affidavit. 626.854 (16) Insurer's 3 Goals when handling a claim - Correct Answer-1. Comply with the Contract

2. Control Costs
3. Cultivate Good Customer Relations 3 Basic Claims Handling activities? - Correct Answer-1. Investigate 2.Evaluate 3.Negotiate 5 Technical Expertise for a successful negotiation - Correct Answer-1.The Insurance Contract 2.Reparable from replacement requiring damages. 3.Law 4.Insurer's goals

5.Computer Estimating Systems being utilized by the insurance industry. Duration of the statute of limitations to claim windstorm damage. - Correct Answer- years (627.70132) 5 Questions to establish the contract coverage - Correct Answer-1.Did a covered Peril Occur? 2.When? 3.Were there more than one? 4.Which one was the proximate cause? 5.Was there a mix of covered and uncovered losses? 5 Ways to appraise damages - Correct Answer-1.Survey and Estimate of Determination 2.Acceptance of Cost or Quality shown by records. 3.Actual repair or replacement 4.Sale of Salvage 5.Appraisal(after 2 parties have failed to agree). 7 Settlement and Release Options - Correct Answer-1.Full release Settlement 2.Open Ended Release 3.Payment of PD, BI pending 4.No Release 5.Advanced Payment 6.Structured Settlement 7.Rehabilitation, including provisions for rehabilitative treatment of the claimant. What is called when 2 or more contracts cover the same claim and have to pay proportionate amounts? - Correct Answer-Apportionment What are the principles that guide apportionment to avoid controversy that could delay adjustment called? - Correct Answer-The Guiding Principles What is the maximum injury to a minor that can be settled out of court, preferably with both parents. - Correct Answer-$15,000 (statute 744.387) A contract by whereby the person executing the instrument gives up a right, claim or privilege to the person against whom it might have been demanded or enforced is called a: - Correct Answer-Release What must a release be supported by to be a binding contract? - Correct Answer- Valuable Consideration 5 Practices that the Insured are protected from under the "Florida Unfair Insurance Trade Practices Act.". - Correct Answer-1.failing to act promptly 2.denying claims without reasonable investigation 3.failure to affirm or deny a claim when an insured is entitled thereto

4.failure to explain claim denials in writing 5.failure to maintain complaint-handling procedures, such as keeping accurate records of complaints The Department requires each adjusting firm and each of it's branches to designate an Adjuster to be responsible for the supervision of all individuals within an adjusting firm. This individual is called the: - Correct Answer-Primary Adjuster(626.8695) How long do Insurance Companies have to acknowledge Claims? - Correct Answer- Days(627.70131) How long do Insurance Companies have to pay or deny property claims? - Correct Answer-90 Days 7 Ethics to the code of Ethics - Correct Answer-1. No negotiating with an attorney's client

2. No misleading in any way. 3.No legal advice 4.No special releases, fill in the blanks only 5.No exploiting incapacitated clients 6.Advise the client of rights under the contract and by the state. 7.Act with no bias. 6 Rights of the Insured - Correct Answer-1. Acknowledgement in 14 Days
3. Approval or denial in 30 Days
4. Full payment as applicable in 90 Days 4.Free Mediation 5.a neutral evaluation of a sinkhole claim 6.Availability of assistance from the department of consumer services What does the Homeowners Flood Insurance Affordability Act of 2014 do? - Correct Answer-Allows private carriers to write off four different types of Flood Coverages. Insurance Contracts - Correct Answer-In an ________________, one party, the insured, pays a specified amount of money, called a premium, to another party, the insurer. The insurer, in turn, agrees to compensate the insured for specific future losses. The losses covered are listed in the contract, and the contract is called a policy. Insurance Policy Conditions - Correct Answer-The section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights and cancellation and non-renewal. Actual Cash Value - Correct Answer-original cost of lost or damage property minus the depreciation of the property at the time of loss, for purposes of determining repayment or reimbursement.

Annuity - Correct Answer-a fixed sum of money (usually a settlement) paid to someone every year, spreading a full benefit out over time Appraisal - Correct Answer-The act of assessing (giving an expert estimate of) the value of property Assessed Value - Correct Answer-The estimated monetary worth of a property (both real and personal) established by a taxing entity Surcharge - Correct Answer-additional cost added to the basic premium, usually due to at-fault claims or legal action Structured Settlement - Correct Answer-A monetary legal agreement often paid out as an annuity rater than in a lump sum Actuary - Correct Answer-Someone who uses statistics and mathematical models to calculated insurance risks and premiums Company and Independent Adjuster Responsibilities - Correct Answer-Investigate the circumstances of insurance claims by consulting with witnesses, reviewing police reports, and compiling evidence from other sources Public Adjuster Responsibilities - Correct Answer-Evaluate existing insurance policies in order to determine what coverage may be applicable to a claim. Prepare document and support the claim on behalf of the insured. Negotiate a settlement with the insurance company on behalf of an insured Public Adjuster Continuing Education Requirements - Correct Answer-5 hours of law and ethics, 19 hrs of elective credits. Every 2 years Public Adjuster Expiration - Correct Answer-An Adjuster license can only hold one appointment at a time. If unappointed for 48 months it will expire Proof of Loss Requirements - Correct Answer-Submit within 30 to 60 days after the damages occur Commingling - Correct Answer-An illegal practice that occurs when an agent mixes personal funds with the insured's or insurer's funds.