Florida Adjuster Exam With Verified And 100% Correct Answers, Exams of Advanced Education

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Florida Adjuster Exam With Verified And

100% Correct Answers

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 - Correct 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? - Correct Answer-It is a fiduciary relationship. The Claims Adjuster's role in the insurance industry includes all the following EXCEPT: - Correct Answer-Gives appropriate legal advice and writes binding contracts All of the following activities are illegal for an adjuster, EXCEPT: - Correct Answer-Use only company forms to prepare releases All of the following are part of the conditions imposed upon the insured in the event of a loss, EXCEPT: - Correct Answer-Insured should negotiate on behalf of the company for 3rd party claimants. A claimant was given a settlement, which stipulated, that if the claimant did not contact the company within a certain period of time, the claim would automatically close. No release was signed. Which of the following best describes this method of settlement? - Correct Answer-No release or walk-away The Continuing Education requirement to maintain an Adjuster license in Florida is: - Correct Answer-Twenty four hours every two years. An adjuster received written notice from the Department of Financial Services regarding a claim. What length of time does he have to respond to the inquiry? - Correct Answer- 21 calendar days Comparative negligence is determined through - Correct Answer-Investigation & AnalysisAgreement between parties or by mediation or arbitrationJudge and/or jury During what period of time must an adjuster reply to communication from a policyholder on a claim? - Correct Answer-14 days Which of the following is NOT a goal in the adjusting process? - Correct Answer-always pay the maximum limit of the policy An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: - Correct Answer-A Full Release settlement

Adjuster Jane moved from one city in Florida to another. What length of time does she have to notify the Insurance Department of the address change? - Correct Answer- Days Which of the following is TRUE? - Correct 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: - Correct 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? - Correct 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? - Correct Answer-land owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? - Correct 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? - Correct 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? - Correct Answer-The Department writes policies for the non-standard insurance companies. Continuing education requirements to maintain a Customer representative license are: - Correct 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? - Correct 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? - Correct Answer-30 Days Activities that may result in license suspension or revocation include: - Correct 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: - Correct 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 : - Correct 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? - Correct 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: - Correct Answer-Autos used for business related purposes on a regular basis.Autos weighing 12,000 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: - Correct Answer-"any auto" In Section II of the Business Auto Policy, liability is available for: - Correct Answer- Named insured. Permissive operators of autos owned, hired or borrowed. Anyone insured is vicariously liable for. Exclusions under the liability section of the business auto policy include: - Correct Answer-Employee injuries-covered under worker compensation Liability for pollution, except from the normal operating fluids of the vehicle. Liability arising from mobile equipment. Which of the following is covered under the Garage Policy? - Correct Answer-Garage location If an insured has $100,000 of "unstacked" UM, and 2 cars on the policy, how much is available under a UM claim? - Correct Answer-$100, An insured has $100 deductible Other Than Collision, and $250 deductible Collision. If a rock breaks his windshield and repairs total $675, how much will be paid? - Correct Answer-$675, under Other Than Collision, with no deductible When searching for insurance solutions to pay for personal injuries from an auto accident, the order of payment in Florida in most cases, would be: - Correct Answer- PIP, Med Pay, Liability, Uninsured Motorist An insured and his spouse have two cars insured under a Personal Auto Policy. What coverage is available for a car that the wife borrows from a friend to use for the weekend? - Correct Answer-The borrowed car would have the broadest coverage available on the policy.

Jack is involved in an accident - he is driving his car when hit by an at-fault driver, Sam. (Florida residents). Jack has two more cars at home. Both Jack and Sam have Basic PIP with no deductible, Med 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? - Correct 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? - Correct 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? - Correct 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: - Correct 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? - Correct 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: - Correct 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? - Correct 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? - Correct Answer-50/ The "trigger" of the financial responsibility law is: - Correct 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? - Correct 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? - Correct 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 $22,000 (PIP & Med Pay are paid out in full). How much is paid from Liability? - Correct 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? - Correct Answer-$20,000 for the total BI portion of accident An insured has 25/50/25 limits and injured another person. The injured person won a tort claim for $30,000 against the insured and the insured's attorney charged $7,500 to defend the insured. How much is paid by the insured's insurance company? - Correct Answer-$32,500, the policy limit and the attorney's fees for defense. Which of the following is NOT one of the "thresholds" in the "No-Fault" law? - Correct Answer-The temporary injury of the insured Which of the following is a "defined motor vehicle" under Florida No-Fault law? - Correct Answer-9,500 pound SUV If an insured is injured by an at-fault driver, and has injuries of $5,000, what amount will PIP pay if he has Florida No-Fault Basic PIP with a $1,000 deductible? - Correct Answer-$3, Which of the following could NOT be considered an "owner" of a motor vehicle? - Correct Answer-A long term lease of 3 months Which of the following is true concerning the extended PIP endorsement? - Correct Answer-Medical expense reimbursement is raised from 80% to 100% When an Additional PIP Endorsement is added to the Personal Auto Policy, we know that the policy already has - Correct Answer-Extended PIP Endorsement Nonresidents must comply with the Florida No Fault law: - Correct Answer-If their auto is in Florida over 90 of the last 365 days

When is the named insured NOT entitled to PIP benefits? - Correct Answer-Injured outside of Florida while a pedestrian struck by a defined motor vehicle Which of the following statements is false concerning No-Fault Auto Insurance? - Correct Answer-Negligence must be established. 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? - Correct 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? - Correct Answer-$8, If Jane also has work loss of $1000 due to the auto accident, how much will her PIP pay for work loss? - Correct Answer-$ 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? - Correct 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 $1000? - Correct Answer-$ 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? - Correct Answer- 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? - Correct 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 $1000 PIP Deductible? - Correct Answer-$ 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? - Correct 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? - Correct 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: - Correct Answer-Elimination Period All of the following are true for Medicare Supplement Insurance EXCEPT: - Correct 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? - Correct Answer-Group Insurance PPO Insurance is considered a two-party contract, Surety Bonds are considered - Correct 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? - Correct Answer-The hospital is the obligee The Surety attempts to avoid default by investigating the principal with regard to: - Correct Answer-CharacterCapabilityCollateral The Surety bond that guarantees that companies will not misrepresent securities is - Correct Answer-Blue Sky Bond A Surety Bond that guarantees the performance of a person appointed by a court, or named in a will or trust to take possession of property, collect assets, make investments, pay debts, sell assets, carry on a business, distribute property to heirs, or any related tasks is what type? - Correct Answer-Fiduciary Bond If an insured's administrative assistant fraudulently forged the insured's name on a check, and cashed it, which of the following would cover this event? - Correct Answer- Employee theft Under one form of crime insurance, losses must occur during the policy period and be discovered within 1 year of policy expiration. This is: - Correct Answer-The Loss Sustained Form Which of the following type of employee theft best fits a business with a large turnover in its personnel? - Correct Answer-The Blanket coverage A loss discovered during the policy period that occurred before the inception of the current policy may be covered by? - Correct Answer-Discovery Form Which of the following could be covered by crime insurance? - Correct Answer-A burglar breaks into a locked safe and steals a ruby necklace. An employee is robbed

while taking the daily cash receipts to the bank. A computer hacker breaks into a business computer and transfers a deposit to an account in the Cayman Islands. 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? - Correct 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? - Correct 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: - Correct Answer-Unlimited death benefits What is the limit on medical benefits under Workers Compensation? - Correct Answer- All medical costs with no limit The following are employees who must have workers compensation EXCEPT: - Correct 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? - Correct 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: - Correct Answer-Products and completed operations Contractual Liability Contingent Liability Who is covered for their exposure under the CGL - Commercial General Liability Policy?

• Correct 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: - Correct 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: - Correct Answer-within policy period or thereafter with no limit on time Under CGL Claims-made form, the Supplemental extended reporting period: - Correct 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? - Correct 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: - Correct Answer-Errors and Omissions Liability Which of the following is true concerning the definition of "accident" under the CGL (Commercial General Liability)? - Correct 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: - Correct 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? - Correct Answer-60 Days A florist wanted coverage on business contents that vary in amount over the course of a year. Which form best covers this situation? - Correct Answer-The value reporting endorsement Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called? - Correct Answer-A package policy A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard to save the ship - this action is called: - Correct Answer-Jettison A contractor was concerned some of his tools, such as a welder, could be stolen from the job site. What inland marine form is best suited for this exposure? - Correct Answer- The contractors equipment floater In Commercial Policies - Vacancy of more than 60 days suspends coverage on all the following EXCEPT : - Correct Answer-Windstorm Condominiums may be covered by both an Association (Commercial Condo) Policy and a Unit Owners' (Homeowners) Policy, which of the following is true? - Correct Answer- The Association Policy is primary and the Unit Owners' Policy is excess There are advantages of an agent recommending a commercial package policy over several monoline policies. Which of the following is an advantage? - Correct Answer- The package policy is easier to rate and sell - more efficient .In the package policy, coverage gaps are less likely to occur. Premium savings may result from a package policy.

A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania over the course of the next 12 months. What inland marine coverage best fits this exposure?

• Correct Answer-An annual transit policy Commercial leases have special coverages in the Leasehold Coverage Form due to the fact that - Correct 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? - Correct 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? - Correct 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? - Correct Answer-Insects destroy a valuable postage stamp worth $ Which of the following is false concerning flood insurance? - Correct 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: - Correct 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? - Correct Answer-The self-insured retention All of the following may qualify for a dwelling policy EXCEPT: - Correct Answer-A 6 - family dwelling All of the following are eligible for a Homeowners Policy EXCEPT: - Correct 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? - Correct 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- will: - Correct 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. - Correct Answer-I, II, and III Which of the following is NOT covered under the HO - Coverage C, Personal Property?

• Correct Answer-The dead fish when the insured accidentally overturns his tropical fish tank and all the fish die from lack of oxygen. Under both the Dwelling and Homeowners, Coverage B - unattached structures coverage - usually is: - Correct Answer-10% of Coverage A - Structure Which of the following forms is "all risks" on the dwelling policy? - Correct Answer-DP-3, or the special form Which of the following is NOT one of the rating factors used in determining a H/O (Homeowners) premium? - Correct Answer-Gender of owner Jane has a dwelling policy with the house insured for $40,000. If her detached shed, which is valued at $4500, is destroyed by a covered peril, what can she expect? - Correct Answer-She can expect $4,000 to be paid, because unattached structures are covered up to 10% of the dwelling amount. Homeowners Policies usually insure property for which of the following? - Correct Answer-Fire, lightning, theft If the policy holder has a HO-3 policy with no endorsements and there is a fire - jewelry worth $20,000 in the house might be covered: - Correct Answer-Could be covered for $20,000 if the Coverage C limit is high enough Liability limits may be expressed as a: - Correct Answer-Aggregate Limit Split Limit Single Limit An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance will his policy pay for these claims? - Correct Answer-$ 20, Loss payee - Correct Answer-If a lender has an insurable interest in an auto, because of the money loaned to finance the auto, the lender would appear on the policy as the: To turn partially damaged property over to the insurance company and ask them to pay for a total loss is called - Correct Answer-Abandonment

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: - Correct 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: - Correct 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) - Correct Answer-20, "Actual Cash Value" ACV means: - Correct Answer-Current cost to replace minus depreciation Which of the following is TRUE concerning Subrogation? - Correct 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: - Correct Answer-Severability All of the following describe insurable interest EXCEPT: - Correct Answer-Show a similarity between insurance and wagering. An Insurance Policy is a contract with all of the following characteristics, EXCEPT - Correct 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: - Correct 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: - Correct Answer-Personal nature Strict or absolute liability: - Correct 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? - Correct Answer-Legal purpose Risks that are insurable are: - Correct 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: - Correct 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: - Correct Answer-Indemnity At the end of this course, you must do which of the following? - Correct 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