Florida certified adjuster practice exam 2024-2025 UPDATE ACTUAL EXAM ALL QUESTIONS AND CO, Exams of Public Health

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Florida certified adjuster practice exam 2024 - 2025 UPDATE

ACTUAL EXAM ALL QUESTIONS AND CORRECT DETAILED

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Jane has $150,000 homeowners policy with a 3% percentage deductible. One night, In oven fire destroys her kitchen, causing $50,000 in damage. How much of the damage falls under Janes responsibility? - ANSWER>>$4, Xavier owns a small insurance company. Recently the company want to bid to ensure a new housing development in Omaha, Nebraska. His company can handle any claims that arise, but if a series of tornadoes were to tear through the area and destroy the entire development, Xavier's company would suffer financially. Which type of insure could help Xavier's company protect itself the most from this potential loss? - ANSWER>>A re- insurer Which of the following situations does NOT involve an instance of "pure risk?" - ANSWER>>Loss of money invested in the stock market Which of the following is an insurable risk? - ANSWER>>A football stadium A lightning strike causes one of those storage buildings on John's farm to burn to the ground, added by the fuel tanks he kept in the building. John knows he wasn't supposed to store any fuel in the building, so he kept that piece of information to himself when he files a claim. John's ensure made and I his claim based on his: - ANSWER>>Concealment Chain shed burned to the ground during a tornado, when the Highwinds break a wall of the shed, knocking over a lantern inside. What is the proximate cause of the loss? - ANSWER>>Wind Kevin plays in a brass band using two rare antique Alexander tubas. Since they are no longer produced, the value of the tubas is difficult to determine. Which type of policy would best indemnify Kevin in this event that his two boys were damaged, lost, or stolen?

• ANSWER>>Agreed value policy

Which settlement option is most often use when the claimant misses work because of a bodily injury, but a settlement has not been reached? - ANSWER>>Advance payment settlement Adjuster Andy is trying to determine a final settlement amount for Stacy's claim. Stacy's house was destroyed in a house fire and it will cost $185,000 to rebuild it. Stacy's homeowner policy has a limit of $178,000 and $1800 deductible. Typically, how much would adjuster Andy calculate Stacy's final settlement amount to be - ANSWER>>$178, Stephanie is in the process of addressing George's auto claim. Currently she is interviewing Shana, who witnessed George's accident and stopped to help. In what stage of the claim process is Stephanie currently working? - ANSWER>>Investigation If a claimant has a history of similar claims, that could mean: - ANSWER>>It is important to investigate for fraud If an insurer is unwilling to pay what the claimant is asking, the adjuster must: - ANSWER>>Negotiate a settlement An insurance adjuster acts as a fiduciary agent for her employer. Which of the following statements is FALSE about the adjuster's role as a fiduciary agent? - ANSWER>>The adjuster may not give the claimant materials showing how he came up with the settlement amount A staff adjuster is a: - ANSWER>>Salaried employee working for only one insurer Marlene has been living in her $120,000 home for 31 years. Because she has paid off the mortgage, she decides to save some money on her monthly insurance premiums by reducing her homeowners coverage to $40,000. After a severe hail storm totals her roof, her adjuster estimates the damage at $12,000. Assuming the insure imposes the standard

coinsurance penalty, and ignoring the deductible, how much will Marlene receive in the settlement amount? - ANSWER>>$5, Craig has an HO-3 policy covering his primary residence with a Coverage A limit of $250,000, Coverage B limit of $25,000, and a Coverage C limit of $150,000. Craig also has a cabin on the lake, which was burglarized. The thieves stole much of the cabin's contents, for a total loss of $18,500. Ignoring any deductibles, how much will Craig's HO- 3 policy pay for this claim? - ANSWER>>$15, Stan built a porch for his home three years ago at a cost of $10,000. The value of the porch has depreciated by $6,000, and it would cost $12,000 to replace it today. After Stan's porch burnt down during a BBQ today, how much would a Standard Fire Policy indemnify Stan for his porch? - ANSWER>>$6, Which of the following statements is NOT true of endorsements? - ANSWER>>And endorsed policy will always provide more coverage than an unendorsed policy In a dwelling policy, how much will the Fire Department Service charge coverage pay? - ANSWER>>Up to $500 if the fire department charges for responding to a covered peril Bill's new home is in the final stages of construction, and he has purchased an HO- 2 policy to ensure his financial interest in the property. This morning, Bill's contractor calls to tell him that an electrical fire has destroyed his new kitchen, and all of the crown molding that was supposed to be installed today has been stolen. It will be $15,000 to rebuild the kitchen and another $4,200 to replace the trim. How will Bill's ensure respond when he files a claim? - ANSWER>>His insurer will pay $15,000 for a build the kitchen and nothing for the stolen trim Which of the following statements about the original standard fire policy is FALSE? - ANSWER>>It was the first multi-line policy, combining both Physical Damage and Liability coverages

During a severe wind storm, a large tree in Jeff's yard was blown down in two large bushes were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the replacement of the tree and bushes that were damaged by the wind storm? - ANSWER>>$ For loss settlement purposes, most homeowners policies: - ANSWER>>Pay for damages to personal property at actual cash value, and damages to structures at replacement cost Tim's $2500 boat trailer was stolen from his driveway. Ignoring any deductibles, how much contingency for his stolen trailer when he files a claim against his homeowners policy? - ANSWER>>$1, Helen's business is growing rapidly, so she decided to add an annex onto her office and hire another worker. While under construction, a storm blows down most of the annex structure, forcing Helen to restart from scratch. Her commercial policy provides insurance coverage equal to 75% of the property value, despite the fact that her policy requires 80% coverage to be fully insured. Which coverage extension could help Helen rebuild at replacement cost? - ANSWER>>None - Extensions are only available at the policyholder maintains the minimum level of insurance of 80% to value A fire burns down Jenny's hardware, leaving virtually nothing salvageable. Which of the following items would not be covered under coverage A of the building and personal property coverage form in her commercial property policy? - ANSWER>>An employees laptop what she uses for work What BOP endorsement would cover accompanies lost business income and extra expense due to loss of electrical service? - ANSWER>>Utility time element When the high-pressure feeder malfunction at the ACME paper mill, The resulting explosion severely damaged the mill and shut down operations for almost 2 months. Once the repairs are finished, the city inspector comes out to inspect the work and finds that the required scrubber needs to be replaced in order to meet current Industry safety standards. Which coverage could help ACME with this added expense? - ANSWER>>Law and ordinance coverage

According to the commercial property policy, a commercial building is considered vacant if less than ___ of the available square footage is occupied for ___ consecutive days. - ANSWER>>31%, 60 Assuming Ernie holds a BOP with a selected per occurrence limit of $300,000, why would Ernie's completed operations in general aggregate limits equal? - ANSWER>>Completed operation: $600,000; General aggregate: $600, A short circuit in one of the refrigeration units in the ice queen ice cream shop sparked a fire that severely damaged the shop, and it has to shut down for two months while repairs were made. What type of additional coverage would indemnify the ice queen for the lost income during these two months? - ANSWER>>Business interruption coverage In a BOP, the purpose of supplementary payments in conjunction with liability coverage is to: - ANSWER>>Cover costs associated with defending and investigating a claim against the insured A processing and servicing company would qualify for a BOP only if they have less than ___ in annual revenues - ANSWER>>$3 million Which of the following would be considered an instrumentality of transportation and communication? - ANSWER>>Pipeline In Ocean marine insurance, this clause appropriate close to one company, rather than spreading the loss among all cargo owners. - ANSWER>>Particular average When Jarrod crashes into a car while landing his plane, he injures the two people in the car and completely wrecked the car. The first person in the car suffers $200,000 in injuries, the second person suffers $300,000 in injuries. Replacing the car cost $45,000. Without taking deductibles into account, how much will Jarrod have to pay out of his own pocket? - ANSWER>>$50,

Mark has an ocean marine insurance policy with cargo coverage. The type and value of his cargo varies from one shipment to the next, so rather than having a set value for this coverage, the amount of his settlement is only determined after a covered loss. Mark's cargo coverage is written on a/an ___basis. - ANSWER>>Unvalued Jordan is moving from San Francisco to Philadelphia, and he is bringing his private plane along with him. While It's being transported, the plane is damaged in a minor accident. Which of the following is true? - ANSWER>>Because the damage took place while the plane was being transported, the deductible won't apply to this loss Which of the following losses would be excluded from coverage under a personal articles folder? - ANSWER>>A rat slipped inside a golf bag before it was packaged for shipping and chewed several holes in the bag before it arrived at its destination Which of the following best describes inland marine insurance? - ANSWER>>Insurance designed to protect property being transported on land and property related to transportation Coast-to-Coast Trucking is in the business of transporting fresh produce from farmers to markets all across the U.S. Which type of inland marine policy would best protect Coast- to-Coast Trucking's interest in the produce that it ships? - ANSWER>>Motor Truck Cargo Policy John, a contractor, just purchased a new backhoe and wants to get an insurance policy to cover it. He's looking for a policy that will provide coverage not only on the job site, but also while transporting it back and forth between sites. What type of inland marine insurance policy would likely fit John's needs? - ANSWER>>Contractors equipment floater Babette crosses the street and is struck by a car, causing her to sustain injuries in the amount of $45,000. The driver has minimum coverage. Which coverage section of Babette's auto policy could help pay for her medical costs? - ANSWER>>Part B: Medical Payments

Norris borrows Arnold's truck to pick up some lumber from the hardware store. On the way to the store, Norris collides with a car, injuring the three people inside. The driver suffers $15,000 in injuries, one passenger suffers $25,000, and the other passenger suffers $20,000. Norris has a PAP with liability limits of 50/100/50, and Arnold's policy has liability limits of 25/50/10. Everyone involved in the accident has minimum PIP coverage for Florida.How much will the primary policy pay for the injuries? - ANSWER>>$30, In which case with the insured be indemnified by her auto liability coverage? - ANSWER>>She has to pay a fee to retrieve relevant court documents Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in good time. Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and Wendy falls into the crawl-space below, injuring her leg and back. Which commercial general liability coverage could help cover the cost of Wendy's injuries? - ANSWER>>Completed operations liability Nancy and Drew borrow Joe's car so they can have a picnic at the old water tower. On their way to the picnic, Drew accidentally rear-ends Mr. Jackley, causing $2,900 in damage. Whose liability insurance will pay first for the damages? - ANSWER>>Joe's Randy owns a clothing store. One day, he notices a shady character with a backpack who is hanging around acting nervous. Randy becomes suspicious and approaches the young man. As the boy makes an effort to avoid him, Randy grabs his arm and detains him until the police arrive. Not finding any stolen merchandise, the police let the boy go. Two weeks later Randy is notified that he will be sued for violation of the young man's civil rights. This is an example of what type of personal injury covered under Randy's Commercial General Liability policy? - ANSWER>>False Arrest, Detention, or Imprisonment Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued ABC Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with a General Aggregate of $750,000 and a per occurrence limit of $250,000, what is the maximum that ABC's insurer will pay for Jerome's injuries? - ANSWER>>$250,

When is a self-insured retention applied in an umbrella policy? - ANSWER>>When the umbrella policy covers a loss that is excluded by primary policies Dr. Smith has a claims-made malpractice insurance policy with a policy period from June 30, 2006 to June 30, 2007. Which claim would trigger this policy? - ANSWER>>A claim filed on January 13, 2007 for surgery performed on June 28, 2005 David just opened his own consulting business, and has taken on several new clients. He's having difficulty managing his schedule on top of all the other responsibilities related to owning his own business, so he hires Tina via contract to work as his full-time office manager for $15 per hour. According to the definitions in David's Commercial General Liability policy, which of the following best describes Tina? - ANSWER>>Employee While Andrea was grocery shopping in BB Mart, the large Dairy sign fell off the wall and landed on her. Because of her extensive injuries, Andrea sued BB Mart and was awarded $375,000 in damages. BB Mart's Commercial General Liability policy has a general aggregate limit of $1,000,000 and a per occurrence limit of $300,000. What is BB Mart's general aggregate limit after the claim for Andrea's injuries is paid? - ANSWER>>$700, One day, a customer at Jim's tire sales was severely injured when Iraq of tires collapsed and fell on her. Later, the customer filed a lawsuit against him for $750,000. Jim has a commercial general liability policy, but the limit for this type of loss is only $500,000. Not wanting to use his entire limit on this one claim, Jim tries to use his excess liability policy first, which has a limit of $1,000,000so he can retain most of the aggregate limit in his base policy. Unfortunately for Jim, this is not possible because: - ANSWER>>An excess liability policy pays only after the policy limit has been exhausted Dr. Jones' current occurrence malpractice policy is in effect from July 1, 2005 through July 1, 2006. Which lawsuit would trigger this malpractice insurance policy? - ANSWER>>A man sues Dr. Jones on July 26, 2009 for a damaging knee surgery performed on March 3, 2006

Craig is just starting out with his business. He needs an insurance policy to cover his liability against any unknown defects within his products. Of the four types of CGL policies listed below, which offers the best coverage for Craig's business, regardless of when a claim is filed? - ANSWER>>Occurrence policy Phil heads over to visit his friend Josh, who is sick with the flu. While at the house, Josh fails to cover his mouth when he coughs and Phil ends up contacting the flu. Fill files a claim with Josh is insured for medical expenses and lost income I feel is out sick from work. The insured denies the claim because: - ANSWER>>A disease transmitted from the insured to a third-party is excluded Farmer Bob would like to sell his recent harvest of lettuce to a local wholesaler. The wholesaler agrees, but only if Bob can prove he has insurance protection in the event that his lettuce causes people to become ill. What type of insurance does Bob need in this situation? - ANSWER>>Farm Product Liability insurance Farmer Jane had an MPCI policy in place when her wheat field was ruined by a hail storm. Jane promptly plowed up the wheat and planted a cover crop. Two days later she filed a claim with her insurer. The claim was denied. What might be the reason for the denial? - ANSWER>>Jane did not leave samples of the destroyed crop for the adjuster to examine In Florida, what are the basic limits of liability for coverage E and coverage F in a homeowners policy? - ANSWER>>Coverage E: $100,000 per occurrence; Coverage F: $1,000 per person Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a strong rain, some of the waist washes into a nearby river. Which insurance coverage can protect Scott from any liability caused by the goat waste runoff? - ANSWER>>Farm pollution liability Joe (the principal) is handling the disbursement of a deceased executive's estate, and he is required to carry a bond guaranteeing such work. The surety company requires one of its accountants to be a second signer on the disbursement checks that Joe writes. In this case, the surety has established: - ANSWER>>Joint control

XYZ Films is getting ready to shoot a new Western film. As with most film productions, XYZ Films uses a surety bond from ABC Bonds to help protect the distributor's financial investment in the movie. Because of the magnitude of the budget for the film, ABC Bonds has XYZ Films secure a/an ___ to act as a co-signer. - ANSWER>>Indemnitor All of the following causes of loss are excluded from coverage in an equipment breakdown protection coverage form, EXCEPT: - ANSWER>>Mechanical failure When one of Frank's ovens breaks down at his wholesale bakery, it causes a dip in production that drastically affectsThe bottom line of the business. Luckily for Frank, he has an equipment breakdown protection coverage form that can help cover the cost of repairing the expensive oven. While policy coverage can help pay for the cost associated with making temporary Repairs and speeding up the permit repairs? - ANSWER>>Expediting expenses Under the Longshore and Harbor workers Compensation act, how much would the surviving spouse of a disease worker received in benefits? - ANSWER>>50% of the deceased workers average weekly wage Which of the following states takes a "monopolistic" approach to Worker's Compensation insurance? - ANSWER>>Wyoming An explosion takes place at Acme manufacturing plant. Four employees are injured. Gina broke her leg and has third degree burns on 10% of her body. George's left leg is hurt so seriously that it later needs to be amputated. Taylor is permanently blind in one eye, and Jason has third degree burns on 15% of his body. Which of these employees is eligible for Permanent Total disability benefits? - ANSWER>>George Workers' Compensation insurance can provide compensation for all of the following, EXCEPT: - ANSWER>>Lost vacation time

States that have special legislation that requires Worker's Compensation coverage to be provided exclusively by the states Worker's Comp. programs are: - ANSWER>>Monopolistic Bonnie's PAP includes Comprehensive coverage. Which of the following losses could this coverage pay for? - ANSWER>>Bonnie's car catches fire Ron's truck experiences a mechanical breakdown and he has it towed to an auto repair facility. Upon further examination of Ron's claim, his mechanical breakdown insurance provider denies coverage. Which of the following would be a valid reason for this denial?

• ANSWER>>Ron has been hauling a large boat, which overloaded the vehicle and caused the breakdown Stan has a personal auto policy to cover his two vehicles, but he recently purchased a custom built motorcycle as well. Which type of endorsement will Stan need to cover the motorcycle? - ANSWER>>Miscellaneous Vehicle Endorsement In a personal auto policy, deductibles are applied on a/an ___ basis. - ANSWER>>Per claim According to the "definitions" section of a personal auto policy, which of the following would NOT qualify as a "family member"? - ANSWER>>The insured's ex-wife who moved out of the house for months ago Which of the following statements is TRUE regarding mechanical breakdown insurance? - ANSWER>>It will not cover the cost of repairs that exceed the value of the vehicle Lemon insurance Cole decides not to renew Hughes personal auto policy, which is set to expire on May 31. Which of the following statements is true? - ANSWER>>Lemons insurance must notify Hugh at least 45 days before the policy expires

According to the "definitions" section of a personal auto policy, which of the following is not "occupying" her vehicle? - ANSWER>>Rachel leaves her cat in her car, with the windows cracked, while she goes into the drugstore to fill a prescription Which of the following is similar to a business auto policy, but I had several policy provisions and protection specific to the trucking industry? - ANSWER>>Truckers policy Jim drops his car off at ABC Garage to have his exhaust system repaired and takes the train to work. When he returns, he finds that his car has been vandalized. Jim has comprehensive coverage, but feels the garage is responsible for the damage since Jim entrusted the car to ABC Garage. Which coverage type under ABC's garagekeepers policy would split the cost of the loss with Jim's own insurer without placing blame on ABC Garage? - ANSWER>>Direct Primary Coverage James is in the consulting business and frequently flies from city to city to meet clients and help them improve their business practices. Most cities have adequate public transit, but sometimes it's easier to rent a car. Which coverage symbol would specifically pertain to rental cars on James' Business Auto Policy? - ANSWER>>Symbol 8 Which of the following insurance protections is NOT offered by a garage keepers insurance policy? - ANSWER>>Personal injury protection Which policy is used as an alternative to the truckers policy to cover companies that offer transportation services to the public on a regular basis, rather than for hire? - ANSWER>>Motor Carrier policy Which of the following is NOT one of the differences between BAP and truckers policy? - ANSWER>>ABAP uses coverage symbols to designate covered autos In a garage keepers policy, PIP coverage is: - ANSWER>>Available with an endorsement

Maria was in the hospital for five days, recovering from a stroke. The bill she received for her hospital stay broke down the charges for room, lab fees, meals, and nursing care. However, her insurer paid a flat daily rate and she was left responsible for paying the remaining charges. What type of insurance does Maria have? - ANSWER>>Hospital Indemnity Insurance Ensures often protect themselves from providing insurance to people who are already ill by inserting which type of claws into a health insurance contract? - ANSWER>>Waiting period Residential market insurance programs are funded by: - ANSWER>>Insurers and their policyholders Which of the following best describes the insurance provided by residual Market insurance programs? - ANSWER>>Usually a "last resort" form of insurance Florida insurance code states that the qualifications required to become a licensed Insurance adjuster in the state of Florida. Which of the following is NOT one of the requirements for applicants? - ANSWER>>Spend 20 hours in the field working with a licensed insurance adjuster Risk retention groups do NOT: - ANSWER>>Have the support of state Guaranty Funds Under which law is an insurer required to explain it's reasons for denying coverage? - ANSWER>>IIPPA In 1945 Congress passed the McCarran-Ferguson Act. What does that act do? - ANSWER>>Gives the states the authority to regulate the insurance industry During catastrophes, which of the following is TRUE? - ANSWER>>Adjusters licensed in other states can act as emergency adjusters in Florida

When Emma's house was burglarized, the thief stole several pieces from her art collection. Although the pieces were only prints, I'm at files a claim stating that they were originals, and therefore worth a good deal more than they really are. What has Emma committed? - ANSWER>>Soft fraud After an insurance claim has been filed in Florida, how soon must the insurer respond to the claim? - ANSWER>>Within 14 days John works for ABC insurance. He is paid on a commission basis and needs to meet certain sale goals in order to draw a reasonable salary. To help in this endeavor, John regularly tells potential clients that XYZ insurance and integritas Insurance often fails to pay claims, and they charge unreasonably High premiums. In speaking falsely of his competition, John has indulged in which on ethical practice? - ANSWER>>Defamation When a car stops short in front of Mike's car, he manages to hit the brakes in time and avoids a collision. To Mike's surprise, the other driver then throws the car into reverse and backs into Mike's car! The other driver's actions are an example of: - ANSWER>>Hard fraud In which of the following situations is an insurer justified in waiting more than 90 days after receiving proof of loss forms to pay a claim? - ANSWER>>The claimant has been unwilling to cooperate in the settlement process Kirk is adjusting an auto liability claim submitted by Christine, who has retained an attorney to represent her in the claim. Kirk should: - ANSWER>>Deal directly with the attorney, not Christine Sally has an H0-3 policy on her $150,000 home in the country. One day, a bear breaks down Sally's back door to get into her kitchen for a snack. When sally comes home to find the damages, she files a claim with her insurance company. Will the damage to Sally's home be covered, and why or why not? - ANSWER>>Yes. The HO-3 is an open peril policy, without an exclusion for wildlife

Which of the following would be considered an instrumentality of transportation and communication? - ANSWER>>Pipeline Bob has been in the construction business A long time and he's ready to retire. He sells the company to his friend Scott and then lets the insured know that any claims against his policy should be paid to Scott from now on. The insurer informs Bob that they cannot do this due to which condition? - ANSWER>>Assignment And insurance company may consider each of the following a risk, EXCEPT: - ANSWER>>A flood zone Which of the following would NOT affect the rating of comprehensive and collision coverage on a vehicle? - ANSWER>>The color of the vehicle Veronica owns a pottery business and is insured under a commercial property policy. She was in the process of building an extra structure for the sole purpose of kiln firing her pottery, but after 40 days of waiting for it to be completed, she moved her business to a new location without any intention of moving back. Her Builder's Risk Coverage Form was terminated because: - ANSWER>>The property is abandoned Jordan is moving from San Francisco to Philadelphia, and he is bringing his private plane along with him. While it's being transported, the plane is damaged in a minor accident. Which of the following is true? - ANSWER>>Because the damage took place while the plane was being transported, the deductible won't apply to this loss In Florida, every driver must have $10,000 in property damage liability coverage and $10,000 in PIP in order to operate a motor vehicle. If the driver is in a wreck and is found to be at fault, how much liability coverage must the driver have for total bodily injury per accident? - ANSWER>>$20, A typical workers' compensation policy combines two basic forms of coverage. They are: - ANSWER>>Workers' Compensation and Employers Liability

Which policy is used as an alternative to the truckers policy to cover companies that offer transportation services to the public on a regular basis, rather than for hire? - ANSWER>>Motor Carrier policy Which statement best describes the "follow form" in excess liability coverage - ANSWER>>Excess ability insurance that "follows" the base insurance policy to the letter Risk retention groups do NOT: - ANSWER>>Have the support of state Guaranty Funds Which of the following does NOT fall under the classification of "small grains"? - ANSWER>>Corn When Zach purposefully burned down Matt's restaurant, mats insurer paid the claim and then went after Zach for the damages. Matt is furious about zach did and wants to sue him as well. Why is it NOT possible for Matt to sue Zach? - ANSWER>>Matt has already received indemnification from his insurer Wendy hires Jim to build an addition to our house. Jim takes the job and finishes it in good time. Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and Wendy falls into the crawlspace below, injuring her leg and back. Which commercial general liability coverage could help cover the cost of Wendy's injuries? - ANSWER>>Completed operations liability When a flood inundates Paul's property, it causes $190,000 in damage to his home and $18,000 in damage to his detached garage. Paul has a Dwelling Form flood policy with a $200,000 limit. How much coverage should Paul use for his garage if he wants to have enough coverage to repair his home completely? - ANSWER>>Paul should apply 5% to his garage and the remainder to the home In a Declaratory Judgment Action: - ANSWER>>The court decides the legal rights of both parties

Which of the following events would trigger the end to a commercial property builders risk coverage form? - ANSWER>>The building is excepted by the purchaser Bonnie's PAP includes comprehensive coverage. Which of the following losses could this coverage pay for? - ANSWER>>Bonnie's car catches fire The set of patient privacy rules that all healthcare providers, insurance companies, physicians offices, hospitals, and pharmacies must follow is called ___? - ANSWER>>HIPAA- Health insurance portability and accountability act When Phyllis passed away, she left inheritance for her three children, including 10 ounces of gold for each of them. To execute her well, her lawyer hires another attorney, Williams, to oversee the careful distribution of the gold. The court requires a bond to assure Williams will conduct himself honestly. Which type of bond has the court required? - ANSWER>>Fiduciary bond Which of the following would NOT affect the rating of comprehensive and collision coverage on a vehicle? - ANSWER>>The color of the vehicle Veronica owns a pottery business and is insured under a commercial property policy. She was in the process of building an extra structure for the sole purpose of kiln firing her pottery, but after 40 days of waiting for it to be completed, she moved her business to a new location without any intention of moving back. Her Builder's Risk Coverage Form was terminated because: - ANSWER>>The property is abandoned Jordan is moving from San Francisco to Philadelphia, and he is bringing his private plane along with him. While it's being transported, the plane is damaged in a minor accident. Which of the following is true? - ANSWER>>Because the damage took place while the plane was being transported, the deductible won't apply to this loss In Florida, every driver must have $10,000 in property damage liability coverage and $10,000 in PIP in order to operate a motor vehicle. If the driver is in a wreck and is found

to be at fault, how much liability coverage must the driver have for total bodily injury per accident? - ANSWER>>$20, A typical workers' compensation policy combines two basic forms of coverage. They are: - ANSWER>>Workers' Compensation and Employers Liability Which policy is used as an alternative to the truckers policy to cover companies that offer transportation services to the public on a regular basis, rather than for hire? - ANSWER>>Motor Carrier policy Which statement best describes the "follow form" in excess liability coverage - ANSWER>>Excess ability insurance that "follows" the base insurance policy to the letter Risk retention groups do NOT: - ANSWER>>Have the support of state Guaranty Funds Which of the following does NOT fall under the classification of "small grains"? - ANSWER>>Corn When Zach purposefully burned down Matt's restaurant, mats insurer paid the claim and then went after Zach for the damages. Matt is furious about zach did and wants to sue him as well. Why is it NOT possible for Matt to sue Zach? - ANSWER>>Matt has already received indemnification from his insurer Wendy hires Jim to build an addition to our house. Jim takes the job and finishes it in good time. Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and Wendy falls into the crawlspace below, injuring her leg and back. Which commercial general liability coverage could help cover the cost of Wendy's injuries? - ANSWER>>Completed operations liability When a flood inundates Paul's property, it causes $190,000 in damage to his home and $18,000 in damage to his detached garage. Paul has a Dwelling Form flood policy with a $200,000 limit. How much coverage should Paul use for his garage if he wants to have

enough coverage to repair his home completely? - ANSWER>>Paul should apply 5% to his garage and the remainder to the home In a Declaratory Judgment Action: - ANSWER>>The court decides the legal rights of both parties Which of the following events would trigger the end to a commercial property builders risk coverage form? - ANSWER>>The building is excepted by the purchaser Bonnie's PAP includes comprehensive coverage. Which of the following losses could this coverage pay for? - ANSWER>>Bonnie's car catches fire The set of patient privacy rules that all healthcare providers, insurance companies, physicians offices, hospitals, and pharmacies must follow is called ___? - ANSWER>>HIPAA- Health insurance portability and accountability act When Phyllis passed away, she left inheritance for her three children, including 10 ounces of gold for each of them. To execute her well, her lawyer hires another attorney, Williams, to oversee the careful distribution of the gold. The court requires a bond to assure Williams will conduct himself honestly. Which type of bond has the court required? - ANSWER>>Fiduciary bond Joan files a lawsuit against Andy because his dog escaped and caused her to fall on an icy sidewalk. Which of the following statements is FALSE? - ANSWER>>Andy's insurer will send Joan a reservation of rights A power surge sparks a small electrical fire in an office building. The electrical fire triggers the automatic sprinkler system. The water from the sprinkler soaks the carpet and shorts out all the computers, causing thousands of dollars in damage. What is the proximate cause of the loss? - ANSWER>>The power surge

Which of the following refers to being restored to the financial condition you were in before a loss? - ANSWER>>Indemnification Mark incurred $8000 damage to his car in an accident. He received $8000 from his insurance company and $4000 from the other driver. By receiving a profit from the loss Mark could be in violation of: - ANSWER>>The principle of indemnity Which of the following situation does not involve an instance of "pure risk"? - ANSWER>>Loss of money invested in the stock market Which of these is not typically excluded from coverage and a property insurance policy? - ANSWER>>Lightning Which of the following is not true about a schedule payment release? - ANSWER>>It can be used without Workers' Compensation claims Alice is an adjuster and is currently negotiating settlement with Gale. Which of the following actions that Alice could take would be disrespectful towards Gale, and thus hinder the negotiation process? - ANSWER>>Assuming to know what Gale wants Which of the following is NOT useful in moving the negotiation process forward towards a successful resolution? - ANSWER>>Using sarcasm in response to a claimant's anger A reservation of rights letter is sent by: - ANSWER>>The insurance company What kind of adjuster is only allowed to work on claims relating to a disaster and may be from another state? - ANSWER>>Emergency adjuster The job of the adjuster can best be described as: - ANSWER>>Comparing claimant's losses to promises made in an insurance policy

While shopping at Acme, mark slips and falls on a wet floor, knocking over some shelves, smashing a window, and injuring his knee. The medical costs for Mark's knee surgery total $8000, and he will live with he rest of his life with a limp since his knee may never fill heal. Which of these costs will be most difficult for Acme's insurer and Mark to negotiate? - ANSWER>>The mental anguish associated with never fully recovering Who is NOT eligible for a homeowners policy? - ANSWER>>An owner of a house in which he does not live, but rents to a tenant A dryer fire scorches the interior of Bill's home, forcing him to move out while repairs are made. In addition to paying for temporary housing, he also loses the rental income he received from his roommate Frank. Which two Dwelling policy coverages could help Bill with the lost rental income AND his additional living expenses? - ANSWER>>Coverage D & Coverage E Which of the following statements does NOT apply to the Standard Fire Policy? - ANSWER>>It automatically covers wind and vandalism In which section of a Standard Fire Policy would you find information on rules of conduct and obligations the policyholder must follow in order for insurance coverage to apply? - ANSWER>>Conditions Which of the following would be covered under the peril of "theft" in a homeowners policy? - ANSWER>>Losses caused by attempted theft Which of the following would be covered under Coverage A in a dwelling policy? - ANSWER>>Gas furnace in the basement During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the replacement of the tree and bushes that were damaged by the windstorm? - ANSWER>>$0

Jared recently purchased a 25 foot watercraft with a 250 horsepower motor. While cruising on the lake, he accidentally runs into Gary's boat, causing $2,500 in damage to Gary's hull. How will Jared's insurer respond when Gary files a claim against Jared's homeowners policy for the damage he caused? - ANSWER>>The insurer will deny the claim because Jared's boat is excluded from his liability coverage How much of a limit is included for Credit Card Fraud or Forgery, an additional coverage in a homeowners policy? - ANSWER>>$500 Mark is on vacation in Italy when his luggage is stolen, including a $2,000 laptop, a $500 suitcase, and $400 in clothes. Mark has an HO-3 homeowners policy. Excluding any applicable deductible, which of the following statements is TRUE? - ANSWER>>Mark's homeowners policy will cover $2,400 of this loss A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the following items would NOT be covered under Coverage A of the Building and personal property coverage form in her commercial property policy? - ANSWER>>An employee's laptop which she uses for work All of the following are covered under coverage a of a business owners policy, EXCEPT: - ANSWER>>Leased business personal property that must be insured Allen owns a commercial landscaping business and does most of his work during the summer months. One day, he arrives at work to find an enormous hole in the middle of the yard where he stored his lawnmowers. Under which clause of loss form(s) Would the mowers, which were consumed by the sink hole, be covered by his commercial property policy? - ANSWER>>Basic, broad, and special forms Assuming Ernie hold a BOP with a selected per occurrence limit of $300,000, what would Ernie's completed operations in general aggregate limits equal - ANSWER>>Completed operation: $600,000; general aggregate: $600,000

Under the earthquakes and volcanic eruption endorsement in a commercial property policy, what is the time span within which multiple earthquake or volcanic events are considered a "single occurrence" for coverage purposes? - ANSWER>>168 hours (7 days) Coverage B of the BOP would provide indemnification for damages to all of the following EXCEPT: - ANSWER>>Windows Joe decides to go surfing for three months in Hawaii. Before he leaves, he walks up his surfboard shop and rent a storage unit for most of his equipment and merchandise. When Joe returns, he finds out his shop has been broken into and vandalized. Under what policy condition with Grozinger like they refused to make a full payment? - ANSWER>>Vacancy Which of these statements is true? - ANSWER>>Flood insurance is always backed by the National Flood Insurance Program Anna's rare books in Birmingham needs to ship three F.Scott Fitzgerald first addition to a customer in Mobile. The combined value of the books is over $400,000. What type of inland marine insurance policy should Anna's rare books by to cover this shipment? - ANSWER>>A trip transit policy Which of the following would be considered and instrumentality of transportation and communication? - ANSWER>>Pipeline Which of the following statements is TRUE of a claim dispute litigated in A state that follows the doctrine of Contributory Negligence? - ANSWER>>If the plaintiff is found to be at all negligent, she will receive no settlement Each of the following would classify as an insurable risk, except: - ANSWER>>A marriage Which of the following statements about the standard fire policy is TRUE? - ANSWER>>It is no longer used in its original format

If a Florida HO policy has only been in effect for 45 days, the insurer must notify the policyholder at least ___ days before canceling it for nonpayment of premium, or at least ___ days before canceling it for any other approved reason - ANSWER>>10;20 The BOP provides loss of income on an "actual loss" sustained basis for up to: - ANSWER>> Which of the following statements regarding commercial package policies (CPP) is true? - ANSWER>>A CPP is an elective-based policy Which of the following does NOT apply to commercial property insurance? - ANSWER>>Because of their complexity, commercial policies only offer named-peril coverage Which of the following would not be covered under Valuable Papers Business Insurance?

• ANSWER>>Stock certificates A processing and servicing company would qualify for a BOP only if they have less than ___ in annual revenues - ANSWER>>$3 million Which of the following is true about Workers' Compensation insurance? - ANSWER>>It benefits both the employee and the employer Jim dropped his car off at ABC garage to have his exhaust system repaired and takes the train to work. When he returns, he finds out his car has been vandalized. Jim has comprehensive coverage, but feels the garage is responsible for the damage since gym and trusted the car to ABC garage. Which Coverage type under ABC's garage keepers policy would cover any part of the loss that Jim's policy does not cover? - ANSWER>>Direct Excess Coverage