Florida Claims Adjuster Exam | 206 Questions with 100% Correct Answers | 26 Pages., Exams of Insurance law

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Florida Claims Adjuster Exam | 206

Questions with 100% Correct Answers

| 26 Pages.

1. Frank owned a home that was destroyed by a hurricane. Both TD Bank and Bank of America were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, TD Bank B. The Insured C. Jointly to TD Bank and Bank of America D. All listed interests - correct answer D. All listed interests
2. Insurance applies separately to each insured as if other insureds did not exist. This is defined as: A. Severability B. Conditional C. Warranty D. None of the above - correct answer A. Severability
3. Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value: A. Pro Rata

B. Abandonment C. Liberalization D. All of the above - correct answer B. Abandonment

4. A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject: A. Conditional Contract B. Personal Contract C. Economic Contract D. Insurable Interest - correct answer D. Insurable Interest
5. 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. A. Cancellation Clause B. Policy Period C. Pro Rata D. Liberalization - correct answer D. Liberalization
6. Time frame is typically 60 days
7. The __________ 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. A. Doctrine of Proximate Cause B. Doctrine of Perils & Hazards

C. Insurance Policy Handbook D. Doctrine of Property Insurance - correct answer D. Doctrine of Property Insurance

8. The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as? A. Actual Cash Value B. Replacement Cost C. "Old for New" D. None of the Above - correct answer A. Actual Cash Value
9. A policy condition, either based on information in the insured's application or inserted by the insurer, is defined as: A. Warranty B. Misrepresentation C. Concealment D. None of the Above - correct answer A. Warranty
10. The following are basic characteristics of a property or liability insurance contract, except: A. Personal Contract B. Conditional Contract C. Loss of Settlement Contract D. Contract of Adhesion - correct answer C. Loss of Settlement Contract

11. 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? A. Conditional Contract B. Adhesion Contract C. Indemnity Contract D. All of the Above - correct answer A. Conditional Contract
12. Which of the following is not one of the "Thresholds" in the "No-Fault" law? A. Death of the Insured B. Temporary Injury of the Insured C. A permanent loss of a bodily function D. Permanent scarring on the face of the insured - correct answer B. Temporary Injury of the Insured
13. Under Mechanical Breakdown Coverage, new cars are eligible for service up to: A. 36 Months/36,000 Miles B. 24 Months/36,000 Miles C. 12,000 Months/12,000 Miles D. 12 Months/36,000 Miles - correct answer A. 36 Months/36,000 Miles
14. Used Vehicles: 12 Months/12,000 Miles

15. If financial responsibility doesn't exist at the time of an accident, which of the following things must happen to avoid penalties? A. The legally valid claims of others must be satisfied (up to 10/20/10) B. The owner and operator must provide certification of future responsibility for future accidents C. Both A & B D. None of the Above - correct answer C. Both A & B
16. 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: A. 1 B. 3 C. 4 D. 2 - correct answer B. 3
17. The Business Automobile Policy includes all of the following coverage forms except: A. The Garage Coverage Form B. The Trailer Interchange Coverage Form C. The Truckers Coverage Form D. The Business Auto Coverage Form - correct answer B. The Trailer Interchange Coverage Form

18. Personal Injury Protection, or PIP, has a __________ per person, per accident limit. A. 10, B. 20, C. 1, D. Depends on the damaged property - correct answer A. 10,
19. 10/20/
20. Used to insure businesses engaged in selling, servicing, repairing, parking or storing automobiles: A. Servicing Coverage Form B. Garage Coverage Form C. Truckers Coverage Form D. None of the Above - correct answer B. Garage Coverage Form
21. The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10. A. Split B. Single C. Straight D. None of the Above - correct answer A. Split
22. 10/20/10 =10,000 per person injured
23. 20,000 all injuries combined
24. 10,000 property damage
25. Example of straight liability limit = $30,

26. Jeremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he expect his PIP coverage to pay toward his medical bills that total $3,000? A. $1, B. $1, C. $2, D. $3,000 - correct answer A. $1,
27. 3000 (bills) - 1000 (deductible) =2000 x .80 (eighty percent)
28. Frank has a not-at-fault accident, he has basic PIP, no deductible and Med pay of $5,000. How much will his Med Pay contribute to medical bills of $15,000? A. $15, B. $5, C. $3, D. $0, Frank is not-at-fault - correct answer B. $5,
29. Medical Payment limits apply per person; Frank will receive full amount towards medical bills.
30. Which of the following is not one of the rating factors for a Homeowner's Policy? A. Type of Construction B. Location of Risk C. Age & Gender of Insured D. Proximity to Fire Department - correct answer C. Age & Gender of Insured

31. On a Homeowner's Policy, covers items that are not permanently attached to the dwelling. This is defined as: A. Other Structures B. Excess Structures C. Personal Property D. Dwelling - correct answer A. Other Structures
32. Examples include sheds, fences, pool houses, detached car ports, etc.
33. A lender has an insurable interest in a home and finds protection in the: A. Loss Payee Clause B. Mortgagee Clause C. Lender Clause D. Additional Insured Clause - correct answer B. Mortgagee Clause
34. Mortgagee - Homeowner's policy
35. Loss Payee - Automobile policy
36. 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 answer C. Both A & B

37. 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 answer B. A fish dies because he has been left alone for a week without food
38. Animals are listed as an "exclusion" under a Homeowner's policy.
39. All of the following are eligible for a Homeowner's Policy, except? 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 answer D. A business condo owned by a local insurance company
40. Commercial property is not eligible for a Homeowner's policy.

41. 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 answer D. All of the Above
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 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 answer 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: A. Preferred Risk Flood Policy B. Standard Flood Policy C. Universal Flood Insurance

D. None of the Above - correct answer A. 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: A. Condominium Dwelling Form B. Personal Condominium Unit Owners Form C. Condominium Unit Owners Form D. None of the Above - correct answer C. Condominium Unit Owners Form
47. Does not cover buildings since coverage would typically be provided under the Condo Association coverage form issued
48. The Commercial Property Contract includes all of the following, except: A. Common Policy Conditions B. Commercial Property Conditions C. Coverage Form D. Commercial Loss Schedule - correct answer D. Commercial Loss Schedule
49. Also included: Declarations, Causes of Loss Form, Endorsements

50. Insures a condominium association against direct physical loss or damage to buildings, business personal property and personal property of others in the care, custody or control of the association and located at the premises: A. Condominium Association Form B. Condominium Unit Owners Form C. Condominium Insured Owner Form D. None of the Above - correct answer A. Condominium Association Form
51. This, along with Condo Unit Owners Form, is located under Condo Coverage.
52. Sometimes referred to as commercial fire and allied lines, this is the form of insurance that covers direct and indirect losses related to properties other than one-to-four family dwellings and farm properties: A. Business Property Insurance B. Building Property Insurance C. Commercial Property Insurance D. None of the Above - correct answer C. Commercial Property Insurance
53. (the question is the definition for this term)
54. Under Commercial Property Policies, Florida law requires an insurer to give the insured at least __________days advance written notice of non-renewal. A. 25 B. 90

C. 45

D. None of the Above - correct answer C. 45

55. Also, notice must state reasons the policy is not to be renewed.
56. When a business's personal property values fluctuate, a single, fixed amount of insurance could produce either over- or under-insurance at any given time. With this option, the limit of coverage is set at an amount somewhat higher than expected peak values. A. Value Reporting B. Replacement Cost C. Agreed Value D. None of the Above - correct answer A. Value Reporting
57. Liberalization states, "The insured gets the benefit of any broadened coverage if the company, within __________ days of inception, adopts a form revision that is broader and without increase in premium." A. 10 days B. 55 days C. 65 days D. 45 days - correct answer D. 45 days
58. Used to cover buildings in the course of construction: A. Builders Risk Policy B. Builders Replacement Policy

C. Construction Replacement Policy D. None of the Above - correct answer A. Builders Risk Policy

59. Includes: structure being built (including foundations), fixtures and machinery, equipment to service building, owned materials and supplies 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. A. Commercial Inland Marine Coverage B. Personal Inland Marine Coverage C. Ocean Commercial Coverage D. None of the Above - correct answer A. 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. A. Business Income Insurance Coverage B. Business Income Replacement Coverage C. Business Income Actual Value Coverage D. None of the Above - correct answer A. Business Income Insurance Coverage
63. Period of restoration begins 72 hours after date of direct damage. In effect, coverage has a 72 hour deductible. 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)

64. What payment covers several areas of costs related to claims, and are payable in addition to the policy limits? A. Supplementary B. Liability C. Personal Injury D. All of the Above - correct answer A. Supplementary
65. Generally, all costs of litigation are covered (court costs, prejudgment interest, judgement interest, cost of bonds to release attachments)
66. 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? A. The Med Pay Section must pay Primary B. The General Liability Policy will pay up to $20,000 in medical payments C. The GL policy will not pay D. Only property damage is covered under GL policy - correct answer C. The GL policy will not pay
67. 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.

68. 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 answer D. All of the Above
69. There is __________ coverage for injury, damage or clean-up costs caused by pollutants, subject to minor exceptions: A. 50% B. 10% C. 0% D. A Percentage Ratio - correct answer C. 0%
70. Under a Commercial General Liability Policy, a basic limit of __________ per person applies to Medical Payments: A. $1, B. $10, C. $2, D. $5,000 - correct answer D. $5,
71. Payment is for medical, dental, hospital, and funeral services incurred within one year of date of accident to persons who suffer bodily injury by accident 1. on or next to insured's owned or rented premises, or 2. due to insured's operations.
72. 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. A. Declarations B. Contract C. Policy D. None of the Above - correct answer A. Declarations

73. The Nuclear Energy Liability Exclusion endorsement, in general, __________ all hazards related to nuclear energy. A. Includes B. Excludes C. Prohibits D. Summarizes - correct answer B. Excludes
74. 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? A. Loss Known B. Known Loss C. Claims-Made D. None of the Above - correct answer B. Known Loss
75. Insurer should have been notified and further investigation of the spill and effective clean-up would have been observed.

76. All of the following are components of Workers Compensation, except: A. Up to $750,000 in Death Benefits B. Reimbursement for Medical Expenses incurred C. Reimbursement for lost wages on percentage basis D. Funeral costs up to $7,500 - correct answer A. Up to $750,000 in Death Benefits
77. Compensation for death is payable if death results within one year of an accident or if it follows disability within five years of accident.
78. The following are classes of disability, except: A. Permanent Total B. Temporary Total C. Permanent Impairment D. Temporary Full - correct answer D. Temporary Full
79. The measure to determine disability benefits is the __________ of the employee at the time of injury: A. Average Monthly Wage B. Average Weekly Wage C. Average Daily Wage D. Income Estimate - correct answer B. Average Weekly Wage
80. Mandatory for risks exceeding certain annual premiums, recognizes the prior loss experience of the risk and applies either

a debit for unfavorable experience or a credit for better-than- expected loss results. This is defined as: A. The Experience Rating Plan B. The Retrospective Rating Plan C. The Risk Plan D. None of the Above - correct answer A. The Experience Rating Plan

81. Under workers compensations, a rate is charged for every __________ of payroll to employees. A. $ B. $1, C. $ D. $500 - correct answer A. $
82. 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 answer D. All of the Above
83. 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 D. All of the Above - correct answer D. All of the Above

84. 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 answer D. None of the Above
85. Samantha is not an employee of the barbecue joint; Workers Comp does not apply.
86. Under Employer's Liability, the minimum limits of liability are: A. 100/100/ B. 100/500/ C. 500/100/ D. 100/500 - correct answer A. 100/100/
87. $100,000 for all claims in each accident
88. $100,000 per employee for disease
89. $500,000 for all disease claims
90. Under Crime Insurance, losses must be discovered within 1 year. This is defined as: A. The Discovery Period

B. The Loss Sustained Period C. The Open Period D. All of the Above - correct answer A. The Discovery Period

91. Crime Insurance is _________ over any other Insurance coverage. A. Primary B. Secondary C. Excess D. Recess - correct answer C. Excess
92. Cover only losses that both occurred and were discovered during the policy period, or within one year of its expiration. This is defined as: A. Discovery B. Loss Sustained C. Sustained Loss D. None of the Above - correct answer B. Loss Sustained
93. Any loss discovered during the policy period or within 60 days after its expiration (one year after expiration for losses connected with employee benefit plans) is covered regardless of when it occurred. This is defined as: A. Loss Sustained B. Valuation C. Discovery D. None of the Above - correct answer C. Discovery

94. Under Crime Insurance, the insured is covered for loss by: A. Theft B. Burglary C. Robbery D. All of the Above - correct answer D. All of the Above
95. Taking or attempted taking of property from within a locked safe or vault, by unlawful entry, with visible marks of forcible entry, or taking of the safe or vault from inside the premises. This is defined as: A. Safe Burglary B. Inside the Premises C. Custodial Burglary D. None of the Above - correct answer A. Safe Burglary
96. Exclusions: accounting errors, giving/surrendering property, voluntarily parting, fire (except damage to safe/vault), vandalism, transferring property to someone based on unauthorized instructions or from threat to harm
97. Covers for all types of property, when surrendered away from the premises as a result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is (or allegedly is) being held captive. This is defined as: A. Extortion B. Surrendered Property C. Client's Property

D. None of the Above - correct answer A. Extortion

98. Also triggered by threats to damage the premises or property within the premises.
99. Which of the following are NOT a type of bond? A. Contract B. Fiduciary C. Court D. Apprentice - correct answer D. Apprentice
100. 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 answer D. All of the Above
101. Guarantees the performance between the principle and the obligee: A. Principal B. Obligee C. Surety D. All of the Above - correct answer C. Surety
102. One who undertakes to perform, to fulfill a contract or to meet an obligation is known as: A. Principal

B. Obligee C. Surety D. All of the Above - correct answer A. Principal

103. Which of the following are parties to a Bond? A. Principal B. Obligee C. Surety D. All of the Above - correct answer D. All of the Above
104. This type of bond covers streets, sidewalks, sewers, etc.: A. Sidewalk B. Subdivision C. Supply D. None of the Above - correct answer B. Subdivision
105. A __________ is a selected group of hospitals and medical practitioners in a given area who have joined together in an effort to reduce medical costs. A. HMO B. Major Medical Insurance C. Coinsurance D. PPO - correct answer D. PPO
106. Define the coverage that pays a flat amount per day for hospitalization, regardless of expenses or other insurance:

A. Hospitilization B. Hospital Indemnity C. Hospital Services D. All of the Above - correct answer B. Hospital Indemnity

107. This optional provision states that if the insured becomes totally disabled, premiums are waived but the coverage remains in force: A. Waiver of Subrogation B. Waiver of Premium C. Waiver of Value D. None of the Above - correct answer B. Waiver of Premium
108. 'premiums are waived"
109. Provides coverage for expenses, including loss of income, arising from an accident. This is defined as? A. Accident Insurance B. Hospitilization C. Hospital Pay D. None of the Above - correct answer A. Accident Insurance
110. This type of provision states the insurer can refuse to renew the policy only under certain conditions. The policy must state the conditions under which the policy will not be renewed. This is defined as? A. Conditionally Renewable B. Guaranteed Renewable