Florida Claims Adjuster Exam: Key Concepts and Coverage Forms, Exams of International Business

Download Florida Claims Adjuster Exam: Key Concepts and Coverage Forms and more Exams International Business in PDF only on Docsity! Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 1. Severability - Correct Answers Insurance applies separately to each insured as if other insureds did not exist. 2. Abandonment - Correct Answers Property insurance policies usually contain a(n) __________ clause, *stating the insured cannot dump damaged property on the insurer and demand its full value.* 3. Insurable Interest - Correct Answers One wherein economic loss would be suffered from an adverse happening to the subject. 4. Liberalization - Correct Answers States that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage.. 5. Doctrine of Proximate Cause - Correct Answers States that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. 6. Actual Cash Value - Correct Answers The Loss Settlement Valuation that subtracts an allowance for depreciation 7. Warranty - Correct Answers A policy condition, either based on information in the insured's application or inserted by the insurer Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 2 8. Conditional Contract - Correct Answers The Insurer's responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as? 9. Under Mechanical Breakdown Coverage, *new cars are eligible for service up to:* - Correct Answers 36 Months/36,000 Miles 10. Used vehicles: 12 Months/12,000 Miles 11. If financial responsibility doesn't exist at the time of an accident, what happens? - Correct Answers The legally valid claims of others must be satisfied (10/20/10) 12. The owner and operator must provide certification of future responsibility for future accidents 13. As to required proof for future accidents by purchase of auto liability insurance, the insurer must make a filing (Form SR-22) certifying that coverage is in effect, and this certification must remain on file for __________ years - Correct Answers 3 Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 5 34. Which of the following forms is "all-risk" on the dwelling policy? - Correct Answers DP-3, or the Special Form 35. When the basic liability limits provided by the policy are insufficient for an insureds needs, two coverage forms are used to provide the additional amounts of coverage: A. Excess Liability B. Umbrella C. Both A & B D. None of the Above - Correct Answers Both A & B 36. Which of the following is not covered under Coverage C, Personal Property? A. A fire breaks out in the residence and an overnight guest loses his clothes in the fire B. A fish dies because he has been left alone for a week without food C. The insureds daughters tennis racket is stolen from her locker D. The insureds suitcase and clothing, valued at $1,500, are stolen from his hotel - Correct Answers B. A fish dies because he has been left alone for a week without food 37. Animals are listed as an "exclusion" under a Homeowner's policy. 38. All of the following are eligible for a Homeowner's Policy, except? Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 6 A. An apartment tenant B. A condominium owner C. Four-family dwelling owner-occupant D. A business condo owned by a local insurance company - Correct Answers D. A business condo owned by a local insurance company 39. Commercial property is not eligible for a Homeowner's policy. 40. Which of the following are characteristics of Homeowner's Insurance? A. Protects against economic loss to residences and household property and legal liabilities B. Owner-occupants of 1-4 family dwellings C. Renters who maintain residential occupancy in any type of building D. All of the Above - Correct Answers D. All of the Above 41. Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit owners and cooperative apartment occupants 42. Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is averaged at $25,000 and Jeremy decides to stay in a hotel Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 7 because most of the damage is to his bedroom and kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel room bill? A. Fair Rental Value B. Value Obligation C. Loss of Use D. Insurers Duties - Correct Answers C. Loss of Use 43. The insurer will pay any necessary and reasonable expenses associated with a daily living routine. 44. An insured who wishes to purchase flood insurance, but is located in a moderate or low risk flood zone may do so by purchasing a: - Correct Answers Preferred Risk Flood Policy 45. Although Flood Insurance is provided by the Federal Government, those who are not in a "flood zone" may purchase a preferred risk policy to cover them for a flood claim. 46. Used only for Commercial Condominiums, it covers the unit-owners business personal property and the personal property of others in the insured's care, custody or control: - Correct Answers Condominium Unit Owners Form 47. The Commercial Property Contract includes all of the following, except: A. Common Policy Conditions Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 10 used for construction. Temporary structures built or assembled on site are also included if not covered by insurance. 60. First developed as an extension of Ocean Marine coverage, to provide coverage for cargo traveling over land, instead of by sea. - Correct Answers Commercial Inland Marine Coverage 61. Definition: to help identify kinds of risks which are eligible for either Ocean or Inland Marine insurance. 62. Protects against *loss of business income* that results from damage to covered property from a covered cause of loss. (BIIC) - Correct Answers Business Income Insurance Coverage 63. Period of restoration begins 72 hours after date of direct damage. In effect, coverage has a 72 hour deductible. 64. Coverage ends on either 1. date when damaged property could be repaired, rebuilt, or replaced 2. date business resumes operations at new, permanent location (whichever comes first) 65. What payment covers several areas of costs related to claims, and are payable in addition to the policy limits? - Correct Answers Supplementary Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 11 66. Generally, all costs of litigation are covered (court costs, prejudgment interest, judgement interest, cost of bonds to release attachments) 67. Three full-time employees from a local furniture company are horsing around and one is pushed into a machine that cut his foot. How will the company's General Liability respond? - Correct Answers The GL policy will not pay 68. Coverage excludes liabilities under Workers Comp or similar law or arising from injuries to employees of the insured. The employees would have to file through Workers Comp. 69. Which of the following can be found in a Commercial General Liability Contract? A. Declarations B. Common Policy Conditions C. Occurrence and Claims-Made Forms D. All of the Above - Correct Answers D. All of the Above 70. Also included: Nuclear Energy Liability Exclusion endorsement (other endorsements may be attached) Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 12 71. There is __________ coverage for injury, damage or clean-up costs caused by pollutants, subject to minor exceptions. - Correct Answers 0% 72. Under a Commercial General Liability Policy, a basic limit of __________ per person applies to Medical Payments: - Correct Answers $5,000 73. The Commercial General Liability __________ identifies the named insured and address, states the policy period and premium and miscellaneous information about the insured, and specifies the limits of coverage that apply. - Correct Answers Declarations 74. The Nuclear Energy Liability Exclusion endorsement, in general, __________ all hazards related to nuclear energy. - Correct Answers Excludes 75. Firms involved in Nuclear activities receive protection from special insurer pools organized for that purpose. 76. Toxic wastes escaped from a gas station disposal tank. The insured operator discovers the leak and cleans up the spill. Unfortunately, the waste quickly seeped into the ground and has caused illness among the residents of a neighboring community This is an example of? - Correct Answers Known Loss Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 15 90. Under workers compensations, a rate is charged for every __________ of payroll to employees. - Correct Answers $100 91. The National Council on Compensation Insurance enforces this rating. 92. Under Workers Compensation, Part Four Your Duties if Injuries Occur, an employer is required to: A. Provide the names/addresses of injured persons and witnesses B. Promptly provide any legal papers C. Cooperate and assist as insurer requests D. All of the Above - Correct Answers All of the Above 93. Also included: immediate contact with insurer, providing immediate medical or other services, do nothing to interfere with insured's right of recovery, make no voluntary payments or assume any obligation except at employer's own cost. 94. Under Workers Compensation, Employers Liability includes: A. Claims by others for the liabilities to insureds employees B. Claims by relatives of injured employees for consequential damages C. Claims made by employees that are not subject to Workers Comp Laws Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 16 D. All of the Above - Correct Answers All of the Above 95. Samantha eats uncooked chicken at a local barbecue joint and becomes violently ill. Which of the following workers compensation benefits would pay for this occurrence? A. A products and completed operations form B. A premises and operations form C. An owners and contractors protective liability form D. None of the Above - Correct Answers None of the Above 96. Samantha is not an employee of the barbecue joint; Workers Comp does not apply. 97. An optional alternative providing for adjustment of premium after expiration, based on a guaranteed basic premium to the insurer to which is added the actual losses incurred by the insured. This is defined as: - Correct Answers Retrospective Rating Plan 98. Under Employer's Liability, the minimum limits of liability are: - Correct Answers A. 100/100/500 99. $100,000 for all claims in each accident 100. $100,000 per employee for disease Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 17 101. $500,000 for all disease claims 102. Under Inside The Premises - Robbery or Safe Burglary of Personal Property, a special limit of __________ per occurrence applies to articles whose principal value is precious metals, precious or semiprecious stones, pearls or furs, and to the physical or intrinsic value of manuscripts, drawings or records: - Correct Answers $5,000 103. Under Crime Insurance, losses must be discovered within 1 year. This is defined as: - Correct Answers The Discovery Period 104. Crime Insurance is _________ over any other Insurance coverage. - Correct Answers Excess 105. A situation may arise where another form of insurance will pay claim - that insurance would be primary. 106. Cover only losses that both occurred and were discovered during the policy period, or within one year of its expiration. This is defined as: - Correct Answers Loss Sustained 107. One exception to the rule is that Loss Sustained forms will also cover losses that occurred under previous (expired) crime policies and that were Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 20 A. Scheduled Persons Coverage B. Scheduled Position Coverage C. Blanket Coverage D. All May Apply - Correct Answers D. All May Apply 119. Employee Theft may be written in three ways. 120. Which of the following are NOT a type of bond? - Correct Answers Apprentice 121. Contract - fulfill obligation 122. Fiduciary - make good to court for any deficiencies found in performance 123. Court - protect opposing party from loss 124. Which of the following are characteristics of a License Bond? A. To guarantee the licensee will act according to laws B. Protect public from unfair business practice C. Proper collection and payment of taxes D. All of the Above - Correct Answers D. All of the Above Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 21 125. Guarantees the performance between the principle and the obligee: - Correct Answers Surety 126. aka Bonding Company; Surety is a "guarantee" 127. This bond guarantees indemnification to the obligee for any losses resulting from the principal's failure to complete the contract work in accord with specifications: - Correct Answers Performance 128. Considered a contract bond 129. One who undertakes to perform, to fulfill a contract or to meet an obligation is known as: - Correct Answers Principal 130. Obligee - needs guarantee principal will perform 131. Surety - guarantees performance between principal and obligee 132. This form of bond is required to accompany a bid for a contract which will require that the successful bidder furnish further bond if awarded the job: - Correct Answers Bid Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 22 133. May act as part of the bonding party and agrees to reimburse the surety for any loss it may suffer from having bonded the principal: - Correct Answers Indemnitor 134. Which of the following are parties to a Bond? A. Principal B. Obligee C. Surety D. All of the Above - Correct Answers D. All of the Above 135. Principal - undertakes to perform/fulfill 136. Obligee - guaranteed principal will perform 137. Surety - guarantees performance 138. *Indemnitor - may act as additional party; agrees to reimburse surety for any loss 139. This type of bond covers streets, sidealks, sewers, etc.: - Correct Answers Subdivision 140. Falls under Maintenance Bond Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 25 A. Waiting Period B. Elimination Period C. Both A & B D. None of the Above - Correct Answers C. Both A & B 155. This helps keep premiums reasonable by eliminating chance of persons buying coverage only when they are sick 156. Characteristics of an *HMO plan* usually include: 157. (HINT: S F P B C) - Correct Answers S - Small of non-existent Deductibles 158. F- Fewer Exclusions 159. P - Insurance services to members through employed physicians 160. B - Broad coverage 161. C - Coinsurance provisions 162. Provides indemnification to the insured for basic hospitalization of room and board in the hospital, nursing care, laboratory fees, operating room, medical supplies, etc. This is defined as? - Correct Answers Hospitalization Expense 163. Associated with a daily limit, not to exceed specified maximum Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 26 164. A(n) __________ provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium. - Correct Answers HMO 165. Referred to as an emerging and increasingly important non-insurance alternative to dealing with risk of health care costs 166. Established in 1973, this association was created for applicants who are unable to obtain insurance in the private market: - Correct Answers FAJUA 167. In 2002, the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Joint Underwriting Association (FWUA), were combined to create: - Correct Answers Citizens 168. Passed during a legislative session in 1993, this association was created for employers who cannot obtain workers compensation insurance in the private market: - Correct Answers FWCJUA 169. A General Lines Agent instructs a licensed Customer Representative 4-40 to thoroughly cover the details of a new life insurance product with every Homeowner customer who calls or visits the office. The agent provides training on the new product. Although the Customer Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 27 Representative does not have a Life License, he or she feels comfortable with the training and does as requested. 170. Which of the following is true? A. This practice is acceptable if done in the office under supervision of General Lines Agent B. This practice is acceptable because adequate training and product knowledge was provided C. This practice is unacceptable and may result in the suspension or revocation of the Customer Representative's license D. This practice is only acceptable if the product training was certified by the Life Insurance Company - Correct Answers C. This practice is unacceptable and may result in the suspension or revocation of the Customer Representative's license 171. Unlike a Customer Representative, a General Lines Claim Adjuster need not be appointed with the Department of Financial Services. A. True B. False - Correct Answers B. False Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 30 184. Establishing a dollar value on a claim is defined as: - Correct Answers Evaluation 185. For bodily injury and uninsured motorist claims, a settlement range will be set rather than a single dollar amount 186. Damaged property that may be retrieved, reconditioned and sold to reduce an insured loss is defined as: - Correct Answers Salvage 187. Efficient disposal of salvage reduces amount of loss to either insured or insurer 188. The voluntary or intentional relinquishment of a known right is defined as a(n): - Correct Answers Waiver 189. The law recognizes two types: express and implied. 190. The principle of utmost good faith on which an insurance contract is based places serious responsibilities on the claims adjuster in regards to: A. Conduct Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 31 B. Work Habits C. Claim Handling Activites D. All of the Above - Correct Answers D. All of the Above 191. The adjusters basic activities in claims handling are: A. Investigation B. Evaluation C. Negotiation D. All of the Above - Correct Answers D. All of the Above 192. Investigation - establish coverage, determine liability, verify damages qualify 193. Evaluation - determine fair payment in accordance with contract and law 194. Negotiation - settlement based on facts discovered during evaluation 195. Under the Florida Unfair Insurance Trade Practices Act, penalties are provided for misrepresentation of business practices, which include all of the following except: A. Failing to act promptly B. Failure to explain claim denials in writing C. Denying claims with reasonable investigation Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 32 D. Failure to maintain complaint handling procedures - Correct Answers C. Denying claims with reasonable investigation 196. An adjuster who represents the financial interests of the insured named in the policy is defined as a(n): - Correct Answers Public Adjuster 197. When investigating liability insurance claims, which of the following three major elements are determined: (CLD) - Correct Answers Coverage 198. Liability 199. Damages 200. A relationship that requires maintenance of a high degree of fidelity and loyalty to the interests of the principal, whether or not the adjuster is a direct employee is defined as: - Correct Answers Fiduciary 201. Should always be maintained whether or not the adjuster is a direct employee 202. An adjuster who is self employed and not affiliated with either insurers or bureaus is defined as a(n): - Correct Answers Independent Adjuster 203. The adjuster's investigation may include all of the following except: Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 35 D. Investigate charges of unethical behavior - Correct Answers Rating and underwriting rules 213. An adjuster who is a salaried employee under the supervision of the home, branch, or regional claims department of insurers is defined as a(n): - Correct Answers Company or Staff Adjuster 214. Which of the following are not considered to be an adjuster: A. Employee or Staff Adjuster B. Independent Adjuster C. Public Adjuster D. General Lines Adjuster - Correct Answers D. General Lines Adjuster 215. Bureau Adjusters are also considered adjusters. 216. An applicant for a license as an adjuster may qualify as an adjuster in the following fields (but not limited to): A. All lines of insurance except life and annuities B. Property and Casualty C. Workers Compensation Insurance D. All of the Above - Correct Answers D. All of the Above Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 36 217. Also: motor vehicle physical damage and health insurance 218. A motor vehicle or mobile home which is a total loss is defined as: - Correct Answers Salvage 219. It cannot be restored to prior condition 220. When making any payment for damage to an automobile for a partial loss, the insurer shall have printed on the loss settlement, "Failure to use the insurance proceeds in accordance with the security agreement, if any, could be a violation of s.812.014, Florida Statutes." This is payment for a(n): - Correct Answers Third Party Claim 221. The District of Columbia and any state or territory of the United States in which an insurance agent maintains his or her principal place of residence or principal place of business and is licensed to act as an insurance agent. This is defined as: - Correct Answers Home State 222. Any material which is or may have been a motor vehicle or mobile home, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal or for its component parts, or a combination of the two. This is defined as: - Correct Answers Derelict Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 37 223. An individual appointed by a general lines or agency to assist that agent or agency in transacting the business of insurance from the office of that agent or agency is defined as: - Correct Answers Customer Representative 224. (4-40 license) 225. The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer is defined as: - Correct Answers Appointment 226. Licensees are given authority through the appointment process 227. The Department may issue a nonrenewable temporary license authorizing the appointment of a general lines insurance agent, life agent, or an industrial fire or burglary agent, for a period not to exceed: - Correct Answers 6 Months 228. How many continuing education hours must an insurance adjuster complete every 2 years? - Correct Answers 24 229. Which of the following are considered unfair methods of competition and unfair or deceptive acts or practices: A. False Statements Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 40 241. Subrogation - Correct Answers When an insured has a right to collect damages from another party but elects to claim damages under his/her insurance policy; rights transfer to the insurer 242. Loss Payee Clause - Correct Answers Provides, in event of payment being made under the policy in relation to insured risk, that payment will be made to a third party rather than the beneficiary 243. Mortgagee Clause - Correct Answers Protects a lender who has an insurable interest in a home 244. Grants special protection for the interest of a mortgage named in the policy; setting up a separate content between insurer and mortgagee 245. Liability - Correct Answers Negligence of the insured 246. Other Structures - Correct Answers Homeowner's Policy, covers items not permanently attached to main dwelling (shed, fence, etc.) 247. Commercial Inland Marine - Correct Answers Identifies risks which are eligible for either ocean or inland marine insurance 248. Developed as extension to Ocean Marine coverage to provide coverage for cargo traveling over land instead of by sea Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 41 249. Umbrella Policy - Correct Answers Covers much higher limit and goes above/beyond claims directly relating to home and auto; protects assets from unforeseen events 250. Known Loss - Correct Answers Prevents insured from coverage if insured knew the loss was probable at time of contract 251. Commercial Property Insurance - Correct Answers Sometimes referred to as Commercial Fire and Allied Lines; Covers direct and indirect losses related to properties other than 1-4 family dwelling and farm properties 252. Value Reporting - Correct Answers Limit of coverage set at an amount higher than expected peak values 253. Employee Theft - Correct Answers Provides coverage for loss or damage to money, securities, and other property resulting from theft committed by an employee 254. Bid - Correct Answers Form of bond required to accompany a bid for a contract which will require that successful bidder furnish further bond if awarded job. 255. Agreement to fulfill a contractual obligation used frequently in construction and supplying goods Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 42 256. PPO - Correct Answers (Preferred Provider Organization) 257. Selected group of hospitals and medical practitioners in given area who have joined together in an effort to reduce medical costs 258. HMO (pre-paid fixed fee) - Correct Answers (Health Maintenance Organization) 259. Provides comprehensive health services to its members for a prepaid fixed fee equivalent to an insurance premium 260. Domestic - Correct Answers Insurer formed under laws of this state 261. Foreign - Correct Answers Insurer formed under laws of another state, district territory, or commonwealth of U.S. 262. Alien - Correct Answers Insurer other than domestic or foreign (outside U.S.) 263. Sliding - Correct Answers Selling an item and stating that it is required by law 264. Waiver - Correct Answers Voluntary relinquishment or surrender of some right or privilege Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 45 278. Identify examples of peril. - Correct Answers Fire, windstorm, flood after hurricane, etc. 279. (something that causes a loss) 280. How long does one have to notify the Department of Financial Services for a name and/or address change? - Correct Answers 30 days 281. What is the coinsurance clause and how might it apply to a given scenario? - Correct Answers A coinsurance clause on a property policy requires the policyholder to carry, at minimum, a specified percent of the dwelling's replacement cost. Failure results in monetary penalty. 282. Almost without exception, the percentage is 80% in coinsurance clauses of homeowner policies - this means the insured should carry 80% of replacement cost if they don't want to be penalized at the time of loss. 283. What are the minimum requirements for the Financial Responsibility Law? (there are two) - Correct Answers 1. legal valid claims of others must be satisfied up to the 10/20/10 requirements 284. 2. owner/operator must provide certification of financial responsibility for future accidents 285. What is PIP and how may it apply to a given scenario? - Correct Answers Personal Injury Protection with limit of $10,000 per person, per accident Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 46 286. If Jeremy has a not-at-fault accident and he has PIP with a $1000 deductible, he can expect PIP to pay $1,600 of his $3,000 medical bill. 287. (3,000 - 1,000 = 2,000 x .80 = 1,600) 288. What is the difference between PIP and Workers Compensation? Which one is excess? - Correct Answers PIP is primary against all other forms of medical and disability insurance coverage. Florida courts have held PIP is excess over Workers Comp. To eliminate duplicate recoveries, the law prohibits persons who have received PIP from recovering same amounts from others in legal liability actions. 289. What are the basic PIP benefits? - Correct Answers 1. Medical; 80% of reasonable expenses are paid for necessary medical, surgical, x-ray, dental, and rehab services 290. 2. Work Loss; 60% of any loss of gross income and loss of earning capacity is reimbursed 291. 3. Replacement Services; 100% for cost of having household services performed by others which the injured person would have normally performed 292. 4. Death; $5,000 IN ADDITION to the $10,000 in medical/disability benefits afforded by PIP 293. How does PIP apply to pedestrians (in and out of state)? - Correct Answers PIP applies to Florida residents if struck by insured's motor vehicle while not occupying a self-propelled vehicle (a pedestrian). Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 47 294. In situations wherein PIP does not apply, named insured and relatives occupying or struck by others vehicles out-of-state; nonresident passengers out-of-state; and nonresidents as pedestrians in Florida - The No-Fault Law has no applicability and usual legal remedies and other insurance coverage's are to be relied upon. 295. When can Other-Than-Collision (Comprehensive Coverage) be used? - Correct Answers When there is damage to your vehicle not caused by a collision (hail storm damages hood, animal runs into car, windshield replacement) 296. What are the penalties for not complying with the *No-Fault Law*? (3) 297. (Hint: I L S) - Correct Answers 1. Owner is *denied immunities* from legal liabilities that are granted to those who comply 298. 2. Owner is *personally liable* for payment of PIP benefits to those entitled 299. 3. Owner's driver's license and vehicle registration are subject to *suspension* 300. What is the PIP Death Benefit amount? - Correct Answers Effective 1/1/13, the death benefit will be $5,000 IN ADDITION to the $10,000 in medical and disability benefits afforded by PIP. Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 50 320. What associations make up Citizens Property and Insurance? - Correct Answers Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and 321. Florida Windstorm Joint Underwriting Association (FWUA) 322. What are the characteristics of a Personal Automobile Policy Declaration page? - Correct Answers Liability (bodily injury), property damage, uninsured motorist, medical payments, PIP, collision deductible, comprehensive deductible, towing coverage, and rental coverage 323. What are some examples of transacting insurance? - Correct Answers 1. solicitation and inducement 324. 2. preliminary negotiations 325. 3. effectuation of a contract of insurance 326. 4. transaction of matters subsequent to effectuation of contract of insurance 327. 5. mailing or otherwise delivering written solicitation to any person in this state by an insurer or any person acting on their behalf for fee or compensation 328. What is the website for the Florida Department of Financial Services? - Correct Answers www.myfloridacfo.com Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 51 329. What are the thresholds of the No-Fault Law? - Correct Answers (1) Significant and permanent loss of a bodily function, or 330. (2) Permanent injury other than scarring and disfigurement, or 331. (3) Significant and permanent scarring or disfigurement, or 332. (4) Death. 333. What is the Florida Unfair Insurance Trade Practices Act? - Correct Answers Under this Act, penalties are provided for misrepresentation of business practices including: 334. -Failing to act promptly 335. -Failure to affirm or deny a claim when an insured is entitled thereto 336. -Failure to explain claim denials in writing 337. -Failure to maintain complaint-handling procedures, such as keeping accurate records of complaints 338. What perils are covered by Comprehensive Coverage? Does the deductible apply to them all? - Correct Answers Comprehensive Coverage applies to damage not caused by collision (an animal runs into your vehicle, hail damages your hood, glass claims, etc.) 339. In Florida, windshields are replaced for free and you ARE NOT responsible for paying a deductible. 340. What is the time frame for a Non-Renewable Temporary License? - Correct Answers A period not to exceed 6 months Florida Claims Adjuster Exam 203 questions with 100% Verified solutions. With Guaranteed Success.Attained Grade A+ Top Graded Exam Guide 2024 pg. 52 341. What types of insurance licenses are offered by the Department and how do they differ? - Correct Answers 1. General Lines Agent 2-20: licensed to write property/casualty, surety or health insurance. 342. 2. Customer Representative 4-40: must be licensed, appointed by a General Lines Agent and may assist in transactions in the OFFICE ONLY 343. 3. Limited Customer Representative 4-42: must be licensed, appointed by a General Lines Agent and transact AUTO insurance in the OFFICE ONLY. 344. 4. All Lines Claims Adjuster 6-20: investigates, Evaluates and Negotiates Claims 345. What are some reasons for suspension, revocation, or termination of a license? - Correct Answers 1. Transacting insurance outside of scope of one's license 346. ►For example, an individual cannot sell life insurance if he or she has a Customer Service license but has not obtained a life license. 347. 2. Misrepresentation or Fraud. 348. 3. Participating in unfair methods of competition. 349. ►Using discriminatory practices, making false entries on an insurance application or defaming others. 350. 4. Sliding: Selling an item and stating that it is required by law (when it is not). 351. 5. Demonstration of unworthiness or lack of fitness. 352. 6. Misappropriation of funds. 353. 7. Failure to inform Department of Financial Services, within 30 days, after pleading guilty or no contest to a felony.