FLORIDA ADJUSTER EXAM AND PRACTICE EXAM NEWEST 2024 ACTUAL EXAM COMPLETE 500 QUESTIONS, Exams of Nursing

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FLORIDA ADJUSTER EXAM AND PRACTICE EXAM

NEWEST 2024 ACTUAL EXAM COMPLETE 500

QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |ALREADY GRADED A

FLORIDA ADJUSTER EXAM

Laboratory beakers - ANSWER>>> Which is NOT considered equipment under the equipment breakdown coverage form? Data and media losses - ANSWER>>> In the equipment breakdown policy, which of the following losses is subject to a sublimit regardless of the policy's coverage limits? Insured incorrectly described the property location on the application. - ANSWER>>> Errors and omissions coverage in an equipment breakdown policy most likely apples when the Corrosion - ANSWER>>> Which of the following is NOT a covered peril in an equipment breakdown policy? The amount to be paid to the insured in the event an equipment breakdown causes a loss of income - ANSWER>>> When adding business income coverage to an equipment breakdown policy, the insurer requires the insured to complete an annual report of values form. Among other things, what is this form used to determine? Damage from smoke - ANSWER>>> An equipment breakdown policy does NOT cover which of the following? Property damage only - ANSWER>>> The declarations page of an equipment breakdown policy lists several coverages, including

property damage. The word "INCLUDED" is shown next to "property damage," but it does not appear elsewhere in the declarations, nor are there any dollar limits listed on the page. Therefore, the policy covers Failure of a conveyer belt due to extended use. - ANSWER>>> An equipment breakdown policy typically would NOT cover which of these incidents? Replacement value - ANSWER>>> Equipment breakdown coverage typically insures damaged equipment at what value? Spoilage damage - ANSWER>>> Which of the following is a coverage option that is available in a standard equipment breakdown policy? A surge in electricity damages a company's mainframe computer - ANSWER>>> The equipment insurance breakdown policy covers which incident? Electrical arcing - ANSWER>>> Boiler and machinery insurance covers which cause of mechanical breakdown? Which of the following is NOT one of the duties of the Department of Financial Services? b. Dept does NOT set rates nor write policies - ANSWER>>> Set rates and write policies for various company products The adjuster has a particular relationship to his principal, the insurer. Which of the following best describes this relationship? - ANSWER>>> It is a fiduciary relationship. The Claims Adjuster's role in the insurance industry includes all the following EXCEPT: - ANSWER>>> Gives appropriate legal advice and writes binding contracts All of the following activities are illegal for an adjuster, EXCEPT: -

of time does she have to notify the Insurance Department of the address change? - ANSWER>>> 30 Days Which of the following is TRUE? - ANSWER>>> If an appointment is terminated, an adjuster has 48 months to secure another appointment 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: - ANSWER>>> Adjuster keeps accurate records on a claim Florida's Administrative Code contains a Code of Ethics for Adjuster - which of the following is FALSE? - ANSWER>>> 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? - ANSWER>>> land owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? - ANSWER>>> liability is a legal doctrine and coverage is a contractual obligation Which of the following is NOT one of the fiduciary responsibilities of an adjuster? - ANSWER>>> Withhold pertinent information from the company to please a client Which of the following is NOT one of the duties of the Florida Department of Financial Services? - ANSWER>>> The Department writes policies for the non-standard insurance companies. Continuing education requirements to maintain a Customer representative license are: - ANSWER>>> 24 hours every two years. When an insurance licensee ends his appointment with an authorized

company in Florida, he has how long to secure another appointment?

• ANSWER>>> 48 months When an insurance licensee moves, he has how long to notify the Florida Dept. of Financial Services of his change of address? - ANSWER>>> 30 Days Activities that may result in license suspension or revocation include: - ANSWER>>> Using discriminatory practices Making false entries on an insurance application Defaming another agent or company Activities that may result in license suspension or revocation include: - ANSWER>>> Lacking reasonable knowledge & technical competence Misappropriation of funds Failure to notify the Dept. of Insurance in writing within 30 days after pleading guilty to a felony All of the following are true concerning Joint Underwriting Associations EXCEPT : - ANSWER>>> It is not possible to purchase a Homeowners or Dwelling Policy from Citizens John wrote a policy through the Florida Automobile Joint Underwriting Association, and the company issued the policy. What is the company issuing the policy called? - ANSWER>>> A servicing carrier The business auto policy has flexibility to meet the needs of various commercial enterprises. It is used to cover vehicles NOT covered by the Personal Auto Policy. Which the following vehicle would NOT be insured with a business auto policy: - ANSWER>>> Autos used for business related purposes on a regular basis.Autos weighing 12, lbs. gross vehicle weight.Autos titled in the name of a corporation or other business interest. In the business auto policy, symbol 1 is a broad coverage often used for liability to denote: - ANSWER>>> "any auto"

Pay coverage of $5,000, Liability of 50/100/50, and Stacked Uninsured Motorist of $50,000 on each car that they own. Jack has a medical claim of $215,000. How much will Jack's Uninsured Motorist pay for this claim? - ANSWER>>> $150, An insured buys an ISO Mechanical Breakdown Coverage Policy on his used car. For what length of time and mileage will he have coverage? - ANSWER>>> 12 Months / 12,000 Miles If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP with no deductible, & Med Pay of $2,000 ... what is the maximum potential payment from Jack's Personal Auto Policy to a guest passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in medical expenses? - ANSWER>>> $22,000 (PIP $10,000; Med Pay $2,000; BI $10,000) UM (Uninsured Motorist) coverage under the PAP (Personal Auto Policy) pays for: - ANSWER>>> bodily injury to the insured caused by hit and run driver Lender's interests in REAL property are protected with a Mortgage clause, how are lender's interests protected in personal property - such as automobiles? - ANSWER>>> Loss payable clause While driving on the Pennsylvania Turnpike, William's auto has a collision with a deer that jumps in front of his car. In order for coverage to be afforded, William's Personal Auto Policy must have: - ANSWER>>> Other than Collision coverage An insured took his TV to a shop for repairs, on the way, he stopped suddenly and the TV fell off the seat, breaking the TV. How will his PAP (Personal Auto Policy) respond? - ANSWER>>> The PAP will not respond.

An insured has "Stacked" Uninsured Motorist with 25/50 limits on each of 2 vehicles that he owns. How much Uninsured Motorist coverage is available to the insured in the event of an accident with a hit & run driver? - ANSWER>>> 50/ The "trigger" of the financial responsibility law is: - ANSWER>>> An accident involving bodily injury or property damage rendering the vehicle inoperable or a serious violation such as DUI. Which of the following is the lowest single limit automobile liability that meets the requirements of the Florida Financial Responsibility Law? - ANSWER>>> $30, An insured had an accident in another state that required liability limits of 25/50/25. Our insured had 10/20/10 limits. What happens if the liability he incurs exceeds 10/20/10? - ANSWER>>> Our insured's policy will respond to the higher limit of the other state Joe has 10/20/10 liability limits, and he borrows Sue's car. Sue has 15/30/15 limits of liability. Joe injures a pedestrian while driving Sue's car and the pedestrian's medical bills due from liability total $22, (PIP & Med Pay are paid out in full). How much is paid from Liability? - ANSWER>>> Sue's policy pays $15,000 & Joe's policy pays $7, Your insured has purchased the minimum split limit policy that meets Financial Responsibility Law in Florida. He causes the following bodily injuries to passengers: Carl $12, Jeanne $10, Charlie $10, How much will his policy pay? - ANSWER>>> $20,000 for the total BI portion of accident An insured has 25/50/25 limits and injured another person. The injured

An insured has Basic PIP with no deductible, in an accident he incurs medical bills of $8,000, $1,000 in lost wages, and $500 in replacement services - how much will PIP portion of policy pay? - ANSWER>>> $7, 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? - ANSWER>>> $8, If Jane also has work loss of $1000 due to the auto accident, how much will her PIP pay for work loss? - ANSWER>>> $ What if Jane's accident happened during the work day while she was driving a GEICO owned auto and Jane was out adjusting auto claims. How much would Jane's PIP pay for her medical injuries? - ANSWER>>> zero If Jane had an accident while she was driving to Orlando to go to Disney and had borrowed her neighbor's minivan so she could take 5 friends ... how much would Jane's PIP insurance pay for her medical bills of $10,000 and her work loss due to the accident of $1000? - ANSWER>>> $ If all 5 of Jane's friends are Florida residents who own automobiles, how much of Jane's PIP coverage is available for each of the 5 friends riding with her in the borrowed minivan? - ANSWER>>> 0 What if Jane has 5 children and she is taking them all to Disney for the day ... how much total PIP coverage is available from Jane's PIP to Jane and her 5 children in the friend's minivan? - ANSWER>>> $60,

How much would Jane's PIP pay if the auto accident caused injuries to Jane that created $12,000 in medical bills and Jane had a $ PIP Deductible? - ANSWER>>> $ A health insurance policy was issued containing the provision that the insurance company must renew the policy to a particular age, but could adjust premiums. What is this policy called? - ANSWER>>> A guaranteed renewable policy 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? - ANSWER>>> A non-cancelable policy A health policy often has a provision which states a period of time between issuance and acceptance before sickness benefits begin. This eliminates people only buying health insurance when they find out that they are ill. This is called a/an: - ANSWER>>> Elimination Period All of the following are true for Medicare Supplement Insurance EXCEPT: - ANSWER>>> Policy must contain a 180 day "free look" What type of health insurance plan usually offers the broadest coverage at the lowest cost with the most freedom of choice? - ANSWER>>> Group Insurance PPO Insurance is considered a two-party contract, Surety Bonds are considered - ANSWER>>> a three-party contract 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? - ANSWER>>> The hospital is the obligee

Two of Any Corp. employees were working and one was accidentally pushed into a machine that cut his arm. How would Any Corp's general liability respond? - ANSWER>>> Neither CGL nor the med pay section would respond, and coverage for this accident is found under Workers Compensation Sam was injured on the job and missed 22 days of work. Which of the following best describes the Workers Compensation payment to Sam?

• ANSWER>>> Sam will be paid for all 22 days, since the 7 day waiting period is not imposed if the disability lasts more than 21 days All the following are components of the Workers Compensation EXCEPT: - ANSWER>>> Unlimited death benefits What is the limit on medical benefits under Workers Compensation? - ANSWER>>> All medical costs with no limit The following are employees who must have workers compensation EXCEPT: - ANSWER>>> Pro athletes A claimant ate some undercooked fish and got violently ill at the restaurant. Which of the following would pay for this occurrence? - ANSWER>>> 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: - ANSWER>>> Products and completed operations Contractual Liability Contingent Liability Who is covered for their exposure under the CGL - Commercial General Liability Policy? - ANSWER>>> Employees of the business Volunteers, legal representative, trustee Real estate manager

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: - ANSWER>>> A policy dated 1/1/98 to 12/31/ Under CGL, the Occurrence form - bodily injury or property damage must occur during the policy period - reporting of the claim may be: - ANSWER>>> within policy period or thereafter with no limit on time Under CGL Claims-made form, the Supplemental extended reporting period: - ANSWER>>> May extend the reporting period from one year to an indefinite time. 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? - ANSWER>>> 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: - ANSWER>>> Errors and Omissions Liability Which of the following is true concerning the definition of "accident" under the CGL (Commercial General Liability)? - ANSWER>>> An accident may include continuous and repeated exposure to the same condition. The coverage for damage to an aircraft under the care, custody, or control of the insured while the plane is in for storage or service is: - ANSWER>>> Hangarkeepers liability Under the commercial property form, what length of time must expire before a building is considered "vacant", thus suspending some coverages, while reducing payment on others? - ANSWER>>> 60

marine coverage best fits this exposure? - ANSWER>>> An annual transit policy Commercial leases have special coverages in the Leasehold Coverage Form due to the fact that - ANSWER>>> they are long-term often with investment in the real estate. A home oxygen service must continue to supply its customers even if the facility is destroyed by a fire. Consequently, the service may make purchases from one of its competitors to keep their own customers supplied with medically necessary equipment in order to have the opportunity to stay in business. Where is this type of insurance coverage found? - ANSWER>>> Extra Expense Coverage form A community applied to be part of the National Flood Insurance Program. Until they are approved, what is the status of the community? - ANSWER>>> They are in the emergency program Which of the following would be excluded (NOT covered) under a personal articles floater on an "all risks" basis? - ANSWER>>> Insects destroy a valuable postage stamp worth $ Which of the following is false concerning flood insurance? - ANSWER>>> To be insured for flood, a new building only must have the walls up. All of the following are EXCLUSIONS under a personal articles floater (Personal Inland Marine Policy) EXCEPT: - ANSWER>>> Theft An Umbrella Policy may be broader than the underlying policies and respond as primary coverage. When the Umbrella is PRIMARY, there is an amount to be paid by the insured before the Umbrella will pay. What is this amount called? - ANSWER>>> The self-insured retention All of the following may qualify for a dwelling policy EXCEPT: -

ANSWER>>> A 6 - family dwelling All of the following are eligible for a Homeowners Policy EXCEPT: - ANSWER>>> A beach house owned by Acme Corporation The principle of "insurable interest" is important in the dwelling policy as well as other kinds of insurance. Which of the following does not have " insurable interest" in the described property? - ANSWER>>> One who attends a Mary Kay party at a friend's property Aunt Mary lives with the insured Homeowner. A thief steals her hearing aid. The HO-3 will: - ANSWER>>> Cover within the limits of the H/O policy Which of the following is eligible for a Homeowners policy? I. Susie, who has purchased a condo unit for her residence. II. John, who buys a duplex and lives in one side. III. Sam, who rents an apartment for his residence. - ANSWER>>> I, II, and III Which of the following is NOT covered under the HO - Coverage C, Personal Property? - ANSWER>>> The dead fish when the insured accidentally overturns his tropical fish tank and all the fish die from lack of oxygen.

Which of the following forms is "all risks" on the dwelling policy? - ANSWER>>> DP-3, or the special form Under both the Dwelling and Homeowners, Coverage B - unattached structures coverage - usually is: - ANSWER>>> 10% of Coverage A Structure

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: - ANSWER>>> 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: - ANSWER>>> In Florida, XYZ is a domestic insurer. An insured has a home with a replacement cost / value of $100,000, on which he carries an insurance policy for $80,000 with an 80% Coinsurance clause. The insured has a $20,000 partial loss, the insurance company will pay how much for this partial loss of $20,000? (Remember $80,000 is 80% of $100,000) - ANSWER>>> 20, "Actual Cash Value" ACV means: - ANSWER>>> Current cost to replace minus depreciation Which of the following is TRUE concerning Subrogation? - ANSWER>>> Allows the insurer to sue a negligent third party to recover a loss paid. An insurer may sever the interests of 2 insureds so that the insurer can protect an innocent party - this is the Doctrine of: - ANSWER>>> Severability All of the following describe insurable interest EXCEPT: - ANSWER>>> Show a similarity between insurance and wagering. An Insurance Policy is a contract with all of the following characteristics, EXCEPT - ANSWER>>> 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: - ANSWER>>> Adhesion If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of: - ANSWER>>> Personal nature Strict or absolute liability: - ANSWER>>> is assigned by law or statute. Jack and Connie - both 50 years old and of sound mind - agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing? - ANSWER>>> Legal purpose Risks that are insurable are: - ANSWER>>> Pure risk Insurance that covers the responsibility for loss arising out of policy holder's negligence - that results in payment to a party other than the insured is: - ANSWER>>> Liability 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: - ANSWER>>> Indemnity At the end of this course, you must do which of the following? - ANSWER>>> 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 A claim in the property/casualty industry Is defined as: - ANSWER>>> an assertion of an alleged legal right against a person, entity, company or insurer that carries with it a demand for money as compensation for injuries or damages