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A comprehensive set of questions and answers related to the florida 3-20 public adjusters state exam. It covers a wide range of topics, including insurance policies, claims procedures, and legal concepts relevant to the field. Designed to help students prepare for the exam by providing a thorough understanding of key concepts and terminology.
Typology: Exams
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The insurer and insured agree to a specific value of insured item - ANS---Agreed Value Policies Someone who has care, custody or control of another's property - ANS---Bailee Claim filed by policy holder against his _ - ANS--- First Party Claim When a person who entrusts another with an object and it results in injury to someone can be held liable for the injury to someone. Can be held liable for the injury i.e. Firearm or DWI - ANS---Negligent Entrustment Hazard that results from a conscious decision made by an insured to participate in a manner or behavior more likely to result in a loss because they have insurance - ANS---Moral Hazard Used to provide temporary insurance coverage until an insurance policy can be written - ANS---Binder Required by lenders to guarantee that outstanding loans against a job are paid upon completion - ANS---Completion Bonds The section of an insurance policy identifying the insured, endorsements, coverages, limits, and premiums - ANS--- Declarations
Policyholder cannot transfer the policy to someone else without written permission from their insurance company - ANS--- Assignment An instance, behavior or environment that increases the likelihood of a loss on an insured item - ANS---Hazard Actual cause or source of an incidence of destruction, injury, or loss - ANS---Peril An insurance company organized and domiciled outside the US
The result of an insured's tort or wrongdoing. Consequences of a loss or amount or type of losses suffered - ANS---Damages Requires the insured to insure the named property for a specific amount of insurance as required by the insurance company - ANS---Agreed Value Physical harm to tangible property caused by peril (loss to property or person in which a covered peril is the proximate cause of damage or destruction) - ANS---Directloss The entity that is the "recipient" to the Principal - ANS--- Obligee Insurance contracts are written on a take it or leave it basis to the policy owner. - ANS---Adhesion Event or circumstance that causes damage - ANS--- Occurance Coverage provides for payment of losses if civil authority denies access to the insured premises due to a covered peril - ANS---Civil Authority Voluntary relinquishment of a known legal right - ANS--- Waiver An insurer domiciled outside the state where it writes insurance
Used as a promise to accept a bid if awarded to a company - ANS---Bid bond Damaged property an insurer takes over to reduce their loss after paying a claim - ANS---Salvage Factual statements upon which an insurance policy is based - ANS---Representations A contract between two parties that offer the consumer little to no leeway to negotiate the terms of the contract - ANS--- Contract of adhesion Publication in any media by the insured about goods or services - ANS---Advertisements Also known as Absolute Liability, based on the theory of the duty of making something sage that is inherently dangerous - ANS---Strict Torts A house, structure, also referred to as a "primary risk" - ANS---Dwelling Condition enforced by the courts to do something bound under law or in a contract - ANS---Strict Torts Amount of loss paid by the policy holder - ANS--- Deductible Violation of an agreement between a seller and buyer in reference to the condition, content, quality, or title of an item sold - ANS---Breach of Warranty Compensation, reparation - ANS---Indemnify Provides property coverage on a contractor's interest in equipment intended for permanent installation while it is being
transported, unloaded, and installed - ANS---Installation Floater A beneficiary of a contract only as a result of the First Party's negligence - ANS---Third Party Reinsurance agreement where the insurers involved will pay claims in direct relationship with the % of the risk that they are insuring - ANS---Quota Share Sharing the cost of replacement - ANS---RiskSharing A legal action filed by one or more persons on behalf of themselves and others having an identical interest in the alleged wrongdoing - ANS---Class-Action A specific risk or cause of loss covered by an insurance policy, such as fire, windstorm, flood, theft, etc. - ANS---Peril Dangers in a store, warehouse, or office; circumstances of risks and perils determine who is responsible for - ANS---Premises Liability A loss or risk the policy doesn't cover - ANS---Exclusions Technique used to transfer the risk of a person, business, or organization in another through the use of a two-party contract - ANS---Insurance A legal two-party document describing the relationship between the insured and the insurance company - CORRECT ANSWER-Indemnity Contract
Legal document that makes some person responsible for damages their actions or products cause regardless of any fault on their part - ANS---Strict Liabilty The intention to withhold relative information about the risk from the insurance company - ANS---Concealment A subset of the claims function whereby suspicious losses are investigated separately from the normal claims adjusters' activities - ANS---Special Investigations Unit An insurer takes no action upon realizing material changes in a contract - ANS---Implied Waiver Acts committed without negligence but result in damages - ANS---Intentional Tort Willful and illegal sinking of a ship at sea or its cargo - ANS---barratry Covers physical damage as well as liability and tends to be very broad in coverage - ANS---CommercialInland Marine Single insurance for only one kind of property at only one location of an insured - ANS---Specific Coverage Legislative Acts or Laws - ANS---Statutes The insurance company to which the risk is transferred to by the contract - ANS---Second Party Hazards on private property that might attract trespassing such as swimming pools or trampolines - ANS--- Attractive Nuisance
An approximate calculation of amount, extent, quality, magnitude, position, degree or worth of something - ANS--- Estimages Insurance company assesses, mitigates, and monitors the items of risk that potential customers want to insure - ANS--
The replacement cost of like kind and quality at the time of loss, less a reasonable amount of depreiciation - ANS---Actual cash value Physical condition that increases the change of loss - ANS---Physical Hazard Openness to loss or damage - ANS---Exposure Any changes that broaden coverage on the edition of the policy that the insured holds will automatically apply without premiums
The value of the property is decreased or reduced due to damage but the property still remains some value and can be used - ANS---Diminution of value Depreciation that is initially held back, then disbursed after proof of repairs being performed to bring property back to whole - ANS---Recoverable depreciation Economic loss that arises as a consequence of the direct or physical loss - ANS---indirect loss A statement made regarding the extent of the claim, it may be requested in accordance with the conditions of the policy - ANS---Proof of loss Tangible property other than the products or work produced - ANS---impaired property Works upon the principal that the more times an event is repeated, the more predictable the outcome of a specific event
Unincorporated association of members in which each member insures the other members - ANS---Reciprocal insurance exchange An Agreement and - ANS---Policy An ongoing assurance made by one party to another that certain facts : - ANS---Warranty Method whereby the insurer pays the amount of each claim for each risk up to a limit determined in advance, and the re- insurer pays the amount of the claim above that specified limit - ANS---Exxcess of loss A person who voluntarily gives up possession of the property - ANS---bailor One of the earliest forms of insurance - ANS---Ocean Marine An insurance adjuster who works primarily outside of an office and often meets personally with the public - ANS---Field Adjuster Purposefully setting fire to property. Not covered under the policy if the act is committed by the insured - ANS---Arson The attempt, by an applicant to deceive an insurance company
Amount an insurer will have to pay an insured to meet the promises outlined in the insurance contract, reduction in value of insured item - ANS---loss An addition, deletion or change to a legal document or policy - ANS---Amendment The section of an insurance policy identifying the insured, endorsements, coverages, limits and premiums - ANS---The Declarations page Reinsureance agreement where the insurers involved will pay claims in direct relationship with the % of the risk they are insuring - ANS---Co-insurance Financial investment or financial dependency that an individual or business has in a person or property - ANS---Insurable interest Failure to use the care that a reasonable and prudent person would have used under that same or similar circumstance - ANS---Negligence "Insurer" has an obligation to pay covered loss, "insured" has no obligation - ANS---Unilateral insurance contract Uninsurable because of the possibility of either loss or gain in the risk - ANS---Speculative Risk The depreciation from the total Replacement Cost due to age, use and condition. The resulting dollar amount is Actual Cash Value - ANS---Non-recoverable Depreciation 626.854 (3) - ANS---A public adjuster may notgive legal advice or act on behalf of or aid any person in
negotiating or settling a claim relating to bodily injury, death, or noneconomic damages. 626.854 (5) - ANS---A public adjuster may not directly or indirectly through any other person or entity solicit an insured or claimant by any means except on Monday through Saturday of each week and only between the hours of 8 a.m. and 8 p.m. on those days. 626.854 (6) - ANS---An insured or claimant maycancel a public adjuster's contract to adjust a claim without penalty or obligation within 3 business days after the date on which the contract is executed or within 3 business days after the date on which the insured or claimant has notified the insurer of the claim, whichever is later. The public adjuster's contract must disclose to the insured or claimant his or her rightto cancel the contract and advise the insured or claimant that notice of cancellation must be submitted in writing and sent by certified mail, return receipt requested, or other form of mailing that provides proof thereof, to the public adjuster at the address specified in the contract; provided, during any state of emergency as declared by the Governor and for 1 year after the date of loss, the insured or claimant has 5 business days after the date on which the contract is executed to cancel a public adjuster's contract. 626.854 (7) - ANS---It is an unfair and deceptiveinsurance trade practice pursuant to s. 626.9541 for a public adjuster or any other person to circulate or disseminate any advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance which is untrue, deceptive, or misleading. 626.854 (7) (a) - ANS---The following statements, made in any public adjuster's advertisement orsolicitation, are considered deceptive or misleading:
having a value in excess of $25 to any individual for the purpose of advertising or as an inducement to entering into a contract with a public adjuster. 626.854 (10)(A) - ANS---If a public adjuster enters into a contract with an insured or claimant to reopen a claim or file a supplemental claim that seeks additional payments for a claim that has been previously paid in part or in full or settled by the insurer, the public adjuster may not charge,agree to, or accept from any source compensation, payment, commission, fee, or any other thing of value based on a previous settlement or previous claim payments by the insurer for the same cause of loss. The charge, compensation, payment, commission, fee, or any other thing of value must be based only on the claim payments or settlement obtained through the work of the public adjuster after entering into the contract with the insured or claimant. Compensation for the reopened or supplemental claim may not exceed 20 percent of the reopened or supplemental claim payment. In no event shall the contracts described in this paragraph exceed the limitations in paragraph (b). 626.854 (10) (b) - ANS---A public adjuster may not charge, agree to, or accept from any source compensation, payment, commission, fee, or any other thing of value in excessof:
626.854 (10) (c) - ANS---Insurance claim payments made by the insurer do not include policy deductibles, and public adjuster compensation may not bebased on the deductible portion of a claim. 626.854 (10) (d) - ANS---Any maneuver, shift, or device through which the limits on compensation set forth inthis subsection are exceeded is a violation of this chapter punishable as provided under s. 626.8698. 626.854 (11) - ANS---Each public adjuster must provide to the claimant or insured a written estimate of the loss to assist in the submission of a proof of loss or any other claim for payment of insurance proceeds. The public adjuster shall retain such written estimate for at least 5 years and shall make the estimate available to the claimant or insured, the insurer, and the department upon request. 626.854(12) - ANS---A public adjuster, public adjuster apprentice, or any person acting on behalf of a publicadjuster or apprentice may not accept referrals of business from any person with whom the public adjuster conducts business if there is any form or manner of agreement to compensate the person, directly or indirectly, for referring business to the public adjuster. A public adjuster may not compensate any person, except for another public adjuster, directly or indirectly, for the principal purpose of referring business to the public adjuster. 626.854 (13) - ANS---A company employee adjuster, independent adjuster, attorney, investigator, or other persons acting on behalf of an insurer that needs access to an insured or claimant or to the insured property that is the subject of a claim must provide at least 48 hours' notice to the insured or claimant, public adjuster, or legal representative before scheduling a meeting with the claimant or an onsite inspection of the insured property. The insured or claimant may deny
access to the property if the notice has not been provided. The insured or claimant may waive the 48 - hour notice. 626.854 (14) - ANS---The public adjuster must ensure that prompt notice is given of the claim to the insurer, the public adjuster's contract is provided to the insurer, the property is available for inspection of the loss or damage by theinsurer, and the insurer is given an opportunity to interview the insured directly about the loss and claim. The insurer must be allowed to obtain necessary information to investigate and respond to the claim. 626.854 (14) (a) - ANS---The insurer may not exclude the public adjuster from its in-person meetings with theinsured. The insurer shall meet or communicate with the public adjuster in an effort to reach agreement as to the scope of the covered loss under the insurance policy. The public adjuster shall meet or communicate with the insurer in an effort to reach agreement as to the scope of the covered loss under the insurance policy. This section does not impair the terms and conditions of the insurance policy in effect at the time the claim is filed. 626.854 (14) (b) - ANS---A public adjuster may not restrict or prevent an insurer, company employee adjuster, independent adjuster, attorney, investigator, or other person acting on behalf of the insurer from having reasonable access at reasonable times to any insured or claimant or to the insured property that is the subject of a claim. 626.854 (14) (c) - ANS---A public adjuster may not act or fail to reasonably act in any manner that obstructs or prevents an insurer or insurer's adjuster from timely conductingan inspection of any part of the insured property for which thereis a claim for loss or damage. The public adjuster representing the insureds may be present for the insurer's inspection, but if the unavailability of the public adjuster otherwise delays the
insurer's timely inspection of the property, the public adjuster or the insureds must allow the insurer to have access to the property without the participation or presence of the public adjuster or insureds in order to facilitate the insurer's prompt inspection of the loss or damage. 626.854 (15) - ANS---A licensed contractor under part I of chapter 489, or a subcontractor, may not adjust a claim on behalf of an insured unless licensed and compliant as a public adjuster under this chapter. However, the contractormay discuss or explain a bid for construction or repair of covered property with the residential property owner who has suffered loss or damage covered by a property insurance policy, or the insurer of such property, if the contractor is doing so for the usual and customary fees applicable to the work to be performed as stated in the contract between the contractor and the insured. 626.854 (16) - ANS---A public adjuster shall notacquire any interest in salvaged property, except with the written consent and permission of the insured through a signed affidavit. 626.854 (17) - ANS---A public adjuster, a public adjuster apprentice, or a person acting on behalf of an adjuster or apprentice may not enter into a contract or accept a power of attorney that vests in the public adjuster, the public adjuster apprentice, or the person acting on behalf of the adjuster or apprentice the effective authority to choose the persons or entities that will perform repair work in a property insurance claim or provide goods or services that will require the insured or third-party claimant to expend funds in excess of those payable to the public adjuster under the terms of the contract for adjusting services. 626.854 (18) - ANS---Subsections (5)-(17) apply only to residential property insurance policies and
condominium unit owner policies as described in s. 718.111(11). 626.854 (19) - ANS---Except as otherwise provided in this chapter, no person, except an attorney at law ora public adjuster, may for money, commission, or any other thing of value, directly or indirectly: 626.854 (19) (a) - ANS---Prepare, complete, orfile an insurance claim for an insured or a third-party claimant; 626.854 (19) (b) - ANS---Act on behalf of or aidan insured or a third-party claimant in negotiating for or effecting the settlement of a claim for loss or damage covered by an insurance contract; 626.854 (19) (c) - ANS---Advertise for employment as a public adjuster; or 626.854 (19) (d) - ANS---Solicit, investigate, oradjust a claim on behalf of a public adjuster, an insured, or a third-party claimant. Under a dwelling broad or special form, what is the maximum that would be paid for "loss of use"? - ANS--- 20% of the Dwelling Coverage Under a dwelling (DP- 2 or DP-3) policy, what is the maximum % that would be paid for ALE? - ANS---20%