Florida 3-20 Public Adjusters State Exam (Set 1) With Verified And 100% Correct Answers, Exams of Advanced Education

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Florida 3-20 Public Adjusters State Exam

(Set 1) With Verified And 100% Correct

Answers

The insurer and insured agree to a specific value of insured item - Correct Answer- Agreed Value Policies Someone who has care, custody or control of another's property - Correct Answer- Bailee Claim filed by policy holder against his _ - Correct Answer-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 - Correct Answer-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 - Correct Answer-Moral Hazard Used to provide temporary insurance coverage until an insurance policy can be written - Correct Answer-Binder Required by lenders to guarantee that outstanding loans against a job are paid upon completion - Correct Answer-Completion Bonds The section of an insurance policy identifying the insured, endorsements, coverages, limits, and premiums - Correct Answer-Declarations Policyholder cannot transfer the policy to someone else without written permission from their insurance company - Correct Answer-Assignment An instance, behavior or environment that increases the likelihood of a loss on an insured item - Correct Answer-Hazard Actual cause or source of an incidence of destruction, injury, or loss - Correct Answer- Peril An insurance company organized and domiciled outside the US - Correct Answer-Alien When there is an unbroken chain of events between an occurrence and a loss, then the loss is part of the original occurrence - Correct Answer-Proximate Cause

Is proximate cause of all subsequent damages - Correct Answer-Original Occurance An individual who contracts with an adjusting firm as an independent contractor and handles claims for the insurance companies - Correct Answer-Independent Adjuster Action or practice of the insured party is permitted to continue because any defense against a continuation of said action or practice has been waived by the insurer - Correct Answer-Estoppel Operate for profit, collect premiums, reserve a portion of premiums to pay claims - Correct Answer-Commercial Insurers Any person who investigates or adjusts losses on behalf of either an insurer or a self- insured - Correct Answer-Independent Adjuster The result of an insured's tort or wrongdoing. Consequences of a loss or amount or type of losses suffered - Correct Answer-Damages Requires the insured to insure the named property for a specific amount of insurance as required by the insurance company - Correct Answer-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) - Correct Answer-Direct loss The entity that is the "recipient" to the Principal - Correct Answer-Obligee Insurance contracts are written on a take it or leave it basis to the policy owner. - Correct Answer-Adhesion Event or circumstance that causes damage - Correct Answer-Occurance Coverage provides for payment of losses if civil authority denies access to the insured premises due to a covered peril - Correct Answer-Civil Authority Voluntary relinquishment of a known legal right - Correct Answer-Waiver An insurer domiciled outside the state where it writes insurance - Correct Answer- Foreign A state officer who administers the state's insurance laws and regulations - Correct Answer-Commissioner Used as a promise to accept a bid if awarded to a company - Correct Answer-Bid bond

Damaged property an insurer takes over to reduce their loss after paying a claim - Correct Answer-Salvage Factual statements upon which an insurance policy is based - Correct Answer- Representations A contract between two parties that offer the consumer little to no leeway to negotiate the terms of the contract - Correct Answer-Contract of adhesion Publication in any media by the insured about goods or services - Correct Answer- Advertisements Also known as Absolute Liability, based on the theory of the duty of making something sage that is inherently dangerous - Correct Answer-Strict Torts A house, structure, also referred to as a "primary risk" - Correct Answer-Dwelling Condition enforced by the courts to do something bound under law or in a contract - Correct Answer-Strict Torts Amount of loss paid by the policy holder - Correct Answer-Deductible Violation of an agreement between a seller and buyer in reference to the condition, content, quality, or title of an item sold - Correct Answer-Breach of Warranty Compensation, reparation - Correct Answer-Indemnify Provides property coverage on a contractor's interest in equipment intended for permanent installation while it is being transported, unloaded, and installed - Correct Answer-Installation Floater A beneficiary of a contract only as a result of the First Party's negligence - Correct Answer-Third Party Reinsurance agreement where the insurers involved will pay claims in direct relationship with the % of the risk that they are insuring - Correct Answer-Quota Share Sharing the cost of replacement - Correct Answer-Risk Sharing A legal action filed by one or more persons on behalf of themselves and others having an identical interest in the alleged wrongdoing - Correct Answer-Class-Action A specific risk or cause of loss covered by an insurance policy, such as fire, windstorm, flood, theft, etc. - Correct Answer-Peril

Dangers in a store, warehouse, or office; circumstances of risks and perils determine who is responsible for _____ - Correct Answer-Premises Liability A loss or risk the policy doesn't cover - Correct Answer-Exclusions Technique used to transfer the risk of a person, business, or organization in another through the use of a two-party contract - Correct Answer-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 - Correct Answer-Strict Liabilty The intention to withhold relative information about the risk from the insurance company

• Correct Answer-Concealment A subset of the claims function whereby suspicious losses are investigated separately from the normal claims adjusters' activities - Correct Answer-Special Investigations Unit An insurer takes no action upon realizing material changes in a contract - Correct Answer-Implied Waiver Acts committed without negligence but result in damages - Correct Answer-Intentional Tort Willful and illegal sinking of a ship at sea or its cargo - Correct Answer-barratry Covers physical damage as well as liability and tends to be very broad in coverage - Correct Answer-Commercial Inland Marine Single insurance for only one kind of property at only one location of an insured - Correct Answer-Specific Coverage Legislative Acts or Laws - Correct Answer-Statutes The insurance company to which the risk is transferred to by the contract - Correct Answer-Second Party Hazards on private property that might attract trespassing such as swimming pools or trampolines - Correct Answer-Attractive Nuisance An approximate calculation of amount, extent, quality, magnitude, position, degree or worth of something - Correct Answer-Estimages

Insurance company assesses, mitigates, and monitors the items of risk that potential customers want to insure - Correct Answer-Risk management Granting the privileges and licensing in a state based on having a license in another state that is deemed equivalent by the granting state - Correct Answer-Reciprocity Specific protection in an insurance policy - Correct Answer-Coverage An individual holding a license under the authority of the State - Correct Answer- Licensee Means any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis and chemicals - Correct Answer-Pollutants A package insurance policy that combines both property and casualty coverages into a single policy - Correct Answer-Homeowners policy Legal term applying the third party claims meaning " to pay back or to make whole" - Correct Answer-Indemnification An agreement by one party, the guarantor to answer to a 3rd person for the debt of default of a responsible party called the Principal - Correct Answer-Surety bonds The necessary increase in living expense resulting from a loss by a covered peril, and incurred by the insured - Correct Answer-Additional Living Expense (ALE) The replacement cost of like kind and quality at the time of loss, less a reasonable amount of depreiciation - Correct Answer-Actual cash value Physical condition that increases the change of loss - Correct Answer-Physical Hazard Openness to loss or damage - Correct Answer-Exposure Any changes that broaden coverage on the edition of the policy that the insured holds will automatically apply without premiums - Correct Answer-liberalization cluse Bonds that protect an employer form losses by an employee - Correct Answer-fidelity bonds A combination of property and liability coverages of two or more separate policies in one premium - Correct Answer-Package policy Fire that is not contained in the vessel in which it was set. Example: - Correct Answer- Hostile Fire

Written agreement attached to a policy to add or subtract insurance coverage - Correct Answer-Endorsement Covers a variety of issues including lease of premiums, easements, sidetrack agreements and elevator maintenance agreements. - Correct Answer-Insured contract The act o taking responsibility through agreement for something that person may not be legally liable - Correct Answer-Assumption of liability Only applies to business income coverage and not to the extra expense coverage - Correct Answer-Actual cash value (bi) The value of the property is decreased or reduced due to damage but the property still remains some value and can be used - Correct Answer-Diminution of value Depreciation that is initially held back, then disbursed after proof of repairs being performed to bring property back to whole - Correct Answer-Recoverable depreciation Economic loss that arises as a consequence of the direct or physical loss - Correct Answer-indirect loss A statement made regarding the extent of the claim, it may be requested in accordance with the conditions of the policy - Correct Answer-Proof of loss Tangible property other than the products or work produced - Correct Answer-impaired property Works upon the principal that the more times an event is repeated, the more predictable the outcome of a specific event - Correct Answer-Law of Large Numbers To access the eligibility of a customer to receive their products, decide how much coverage the client should receive, and how much they should pay for it. - Correct Answer-Underwriting Actual cost of replacing property due to a covered peril with property of like kind and quality without depreciation - Correct Answer-replacement cost Exaggerating an otherwise legitimate claim for profit - Correct Answer-Soft Fraud Unincorporated association of members in which each member insures the other members - Correct Answer-Reciprocal insurance exchange An Agreement and - Correct Answer-Policy An ongoing assurance made by one party to another that certain facts : - Correct Answer-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 - Correct Answer-Exxcess of loss A person who voluntarily gives up possession of the property - Correct Answer-bailor One of the earliest forms of insurance - Correct Answer-Ocean Marine An insurance adjuster who works primarily outside of an office and often meets personally with the public - Correct Answer-Field Adjuster Purposefully setting fire to property. Not covered under the policy if the act is committed by the insured - Correct Answer-Arson The attempt, by an applicant to deceive an insurance company - Correct Answer- Misrespresentation Personal property that is not part of the dwelling or structure - Correct Answer-Contents An individual that is used when a claim has been questioned by either the insured or the insurer, an unbiased part is required to resolve the dispute - Correct Answer-Umpire Amount an insurer will have to pay an insured to meet the promises outlined in the insurance contract, reduction in value of insured item - Correct Answer-loss An addition, deletion or change to a legal document or policy - Correct Answer- Amendment The section of an insurance policy identifying the insured, endorsements, coverages, limits and premiums - Correct Answer-The Declarations page Reinsureance agreement where the insurers involved will pay claims in direct relationship with the % of the risk they are insuring - Correct Answer-Co-insurance Financial investment or financial dependency that an individual or business has in a person or property - Correct Answer-Insurable interest Failure to use the care that a reasonable and prudent person would have used under that same or similar circumstance - Correct Answer-Negligence "Insurer" has an obligation to pay covered loss, "insured" has no obligation - Correct Answer-Unilateral insurance contract Uninsurable because of the possibility of either loss or gain in the risk - Correct Answer- Speculative Risk

The depreciation from the total Replacement Cost due to age, use and condition. The resulting dollar amount is Actual Cash Value - Correct Answer-Non-recoverable Depreciation 626.854 (3) - Correct Answer-A public adjuster may not give 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) - Correct Answer-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) - Correct Answer-An insured or claimant may cancel 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 right to 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) - Correct Answer-It is an unfair and deceptive insurance 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) - Correct Answer-The following statements, made in any public adjuster's advertisement or solicitation, are considered deceptive or misleading:

1. A statement or representation that invites an insured policyholder to submit a claim when the policyholder does not have covered damage to insured property.
2. A statement or representation that invites an insured policyholder to submit a claim by offering monetary or other valuable inducement.
3. A statement or representation that invites an insured policyholder to submit a claim by stating that there is "no risk" to the policyholder by submitting such claim.
4. A statement or representation, or use of a logo or shield, that implies or could mistakenly be construed to imply that the solicitation was issued or distributed by a governmental agency or is sanctioned or endorsed by a governmental agency. 626.854 (7) (B) - Correct Answer-For purposes of this paragraph, the term "written advertisement" includes only newspapers, magazines, flyers, and bulk mailers. The

following disclaimer, which is not required to be printed on standard size business cards, must be added in bold print and capital letters in typeface no smaller than the typeface of the body of the text to all written advertisements by a public adjuster: "THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT." 626.854 (8) - Correct Answer-A public adjuster, a public adjuster apprentice, or any person or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give a monetary loan or advance to a client or prospective client. 626.854 (9) - Correct Answer-A public adjuster, public adjuster apprentice, or any individual or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give, directly or indirectly, any article of merchandise 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) - Correct Answer-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) - Correct Answer-A public adjuster may not charge, agree to, or accept from any source compensation, payment, commission, fee, or any other thing of value in excess of:

1. Ten percent of the amount of insurance claim payments made by the insurer for claims based on events that are the subject of a declaration of a state of emergency by the Governor. This provision applies to claims made during the year after the declaration of emergency. After that year, the limitations in subparagraph 2. apply.
2. Twenty percent of the amount of insurance claim payments made by the insurer for claims that are not based on events that are the subject of a declaration of a state of emergency by the Governor. 626.854 (10) (c) - Correct Answer-Insurance claim payments made by the insurer do not include policy deductibles, and public adjuster compensation may not be based on the deductible portion of a claim.

626.854 (10) (d) - Correct Answer-Any maneuver, shift, or device through which the limits on compensation set forth in this subsection are exceeded is a violation of this chapter punishable as provided under s. 626.8698. 626.854 (11) - Correct Answer-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) - Correct Answer-A public adjuster, public adjuster apprentice, or any person acting on behalf of a public adjuster 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) - Correct Answer-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) - Correct Answer-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 the insurer, 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) - Correct Answer-The insurer may not exclude the public adjuster from its in-person meetings with the insured. 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) - Correct Answer-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) - Correct Answer-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 conducting an inspection of any part of the insured property for which there is 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) - Correct Answer-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 contractor may 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) - Correct Answer-A public adjuster shall not acquire any interest in salvaged property, except with the written consent and permission of the insured through a signed affidavit. 626.854 (17) - Correct Answer-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) - Correct Answer-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) - Correct Answer-Except as otherwise provided in this chapter, no person, except an attorney at law or a public adjuster, may for money, commission, or any other thing of value, directly or indirectly: 626.854 (19) (a) - Correct Answer-Prepare, complete, or file an insurance claim for an insured or a third-party claimant; 626.854 (19) (b) - Correct Answer-Act on behalf of or aid an 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) - Correct Answer-Advertise for employment as a public adjuster; or 626.854 (19) (d) - Correct Answer-Solicit, investigate, or adjust 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"? - Correct Answer-20% of the Dwelling Coverage Under a dwelling (DP-2 or DP-3) policy, what is the maximum % that would be paid for ALE? - Correct Answer-20%