Florida Claims Adjuster Exam Questions and Answers, Exams of Nursing

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FLORIDA CLAIMS ADJUSTER EXAM Questions

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1. Bureau Adjuster: Employee or agent of an adjustment bureau which serves multiple company clients such as the GAB Business Services, Inc **and Underwrit- ers Adjusting Company both national firms.

2. Independent Adjuster: Are Self-Employed and are not affiliated with** either insurers or bureaus. They serve as adjuster representatives of insurers, and their services are compensated on a fee-plus-expenses **basis for each loss handled.
3. Public Adjuster: Is a claims adjuster who is an advocate for the** policyholder in appraising and negotiating an insurance claim.
4. Peril: Something that causes a loss.
5. Hazard: Something that increases the probability that a loss will occur.
6. Warranty: A policy condition, either based on information in the insureds appli- cation or inserted by the insurer. It is a guarantee of a fact.
7. Misrepresentation: An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy.
8. Concealment: The failure of the insured to reveal relevant facts known to the insured in applying for insurance.
9. Abandonment: Property insurance policies usually contain an abandonment clause, stating the insured cannot dump damaged property on the insurer and demand its full value.
10. Severability: The insurance applies separately to each insured as if other insureds did not exist.
11. Proximate Cause: The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. Courts employ a set of rules to resolve causation disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is more than one peril at work in a fact pattern. Under common law, whether the policy provides coverage depends on which peril is chosen as the proximate cause.

12. Direct Loss: Physical harm to tangible property.
13. Indirect Loss: Economic loss which flows as a result of direct loss.
14. Actual Cash Value(ACV): Replacement Cost minus Depreciation
15. Coinsurance: The amount, generally expressed as a fixed percentage, an insured must pay against a claim after the deductible is satisfied. It's ultimately a way for the insured and insurer to share responsibility for the risk. It can also help reduce the cost of the insurance policy premium. Coinsurance can be written on an 80/20, 90/100, or 100% rule.
16. Personal Contract: Policies cover people who own and operate things, such as automobiles.
17. Conditional Contract: Also called a hypothetical contract, is a contract agree- ment that only requires performance once the delineated conditions are met. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. If the other agreement or condition is performed, then the

conditional contract is enforceable and the parties are bound to carry out the terms of the contract.

18. Contract of Indemnity: Principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he/she occupied before the loss occurred, no better or no worse.
19. Insurable Interest: the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc.
20. Waiver: 1.) Implied voluntary relinquishment, abandoning a legal advantage, need, claim or right. 2.) Agreement or added clause of a policy that excludes some losses or limits the sum of a claim, or extends coverage to add items not in a normal policy.
21. Express Waiver: Occurs when the insurer or its representative knowingly gives up a known right under the insurance contract.
22. Implied Waiver: A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a right.
23. Damages: Monetary compensation that is awarded by a court in a civil action to an individual who has been injured through the wrongful conduct of another party.
24. Subrogation: When an insured has a right to collect damages from another party, but instead elects to claim the damages under his insurance policy, his rights against the other party are transferred to the insurer.
25. Changes: All policies provide that any changes to the policy be made by the insurer, in writing.
26. Policy Period: The condition states that coverage applies only to losses or occurrences that take place during the policy period. (Prior to the stated date and time of termination).
27. Policy Territory: Condition limiting coverage to occurrences or losses that take place only within a stated geographical region.
28. Other Insurance: The principle of indemnity dictates against duplicate recov- ery for the same loss.
29. Cancellation: The insured may cancel at any time, for any reason, without advance notice. If the conpany wishes to cancel, it must provide some degree of advance notice so the insured will have time to replace the coverage.

30. Appraisal: A written contract of or written agreement for or effecting insurance, or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements and papers which are a part thereof.
31. Insurance: Is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
32. Binder: Acts as a temporary contract until the policy is issued.
33. How many days should an insurer give for prior notice of cancellation of a binder?: 5 days.
34. Property Insurance: Any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests.
35. Liability Insurance: Payment will be on behalf of the insured to another, based upon the insureds liability to the recipient. Simply stated, Liability is "Negligence of the Insured".
36. Loss Payee Clause: A Clause in a contract of insurance that provides, in the event of payment being made under the policy in relation to the insured risk, that payment will be made to a 3rd party rather than to the insured beneficiary of the policy.
37. Mortgage Clause: A property insurance provision granting special protection for the interest of a mortgagee named in the policy, in effect setting up a separate content between the insurer and the mortgagee.
38. Other Structures: Covers items that are not permanently attached to the main dwelling, such as a shed, fence, etc.
39. Commercial Inland Marine: Helps identify the kinds of risk which are eligible for either ocean or inland Marine insurance.
40. Building Ordinance Coverage: This endorsement covers the insured for en- forcement of laws which require demolition of undamaged portions of buildings.
41. Umbrella Policy: Covers a much higher limit and goes above and beyond claims directly relating to your home and auto, it provides your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injuries.
42. Known Loss: Prevents an insured from coverage if the insured knew the loss was probable at the time of the insurance contract.
43. Value Reporting: The limit of coverage is set at an amount somewhat higher than expected peak values.

44. Commercial Property Insurance: Covers direct and indirect losses related to properties other than one to four family dwellings and farm properties.
45. Employee Theft: Provides coverage for loss of or damage to money, secu- rities, and other property resulting from theft committed by an employee. Theft is defined as the unlawful taking of money, securities or other property to the deprivation of the insured.
46. Bid: Aggreement to fulfill a contractual obligation used frequently in construc- tion and supplying goods.
47. Health Maintenance Organization (HMO): Provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premi- um. 48. Preferred Provider Organization (PPO): A selected group of hospital's and medical practitioners in a given area who have joined together in an effort to reduce medical costs.
48. Estoppel: Is an equitable principle to the effect that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is damaged as a result, the guilty party may be legally prohibited(estopped) from asserting that the fact does not exist.
49. Salvage: Motor vehicle or mobile home is a total loss.
50. Junk: Any material which is or may have been a motor vehicle or mobile home, with or without all component parts, 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.
51. Fiduciary Agent: Agent for a principal/Client. The legal or special relationship of trust, confidence, or responsibility between 2 or more parties.
52. Domestic Insurer: Insurer is one formed under the laws of its this state.
53. Foreign Insurer: Insurer is one formed under the laws of any state, district territory, or commonwealth of the United States other than this State.
54. Alien Insurer: Insurer is an insurer other than a domestic or foreign insurer.
55. Appointment: The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf an insurer or employer.
56. Derelict: Material which is or may have been a motor vehicle or mobile home, with or without all component parts, 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 component parts or both.

58. Mechanical Breakdown Coverage: Covers repairs to mechanical parts of your vehicle that break. Even covers break in events not related to an accident.
59. Sliding: Selling an item and stating that it is required by law.
60. What is the Death Benefit amount for PIP ?: $5, 61. What is the amount for medical and disability benefits afforded by PIP ?: $10,
61. Who is the Financial Responsibility Law administered by ?: The Depart- ment of Highway Safety and Motor Vehicles.
62. What are the Basic PIP Benefits ?: - Medical-80% of responsible expenses are paid for necessary medical, surgical, X-Ray and dental.

• Work Loss-60% of any loss of gross income and loss of earning capacity reim- bursed.
• Replacement Services-100% for the cost of having household services performed by others.
• Death-Effective 01/01/2013 the death benefit will be $5,000 in addition to the $10,000 in medical and disability benefits afforded by PIP.

64. Company or Staff Adjuster: Are salaried employees under the supervision of the home, branch or regional claims department of insurers.
65. Fee Adjusters: Offer their services on a fee-for-service basis. They represent many insurers. 66. What are the Characteristics of a Personal Auto Policy Declaration Page ?: - Liability(Bodily Injury)

• Property Damage
• Uninsured Motorist
• Medical Payments
• Personal Injury Protection
• Collision Deductible

• Comprehensive Deductible
• Towing Coverage
• Rental Coverage

67. What are examples of Transacting Insurance?: - Solictitation of Insurance

• Negotiation of Insurance
• Effecting Coverage (Binding insurance coverage)
• Transacting Insurance Matters(during and after insurance is bound).

68. What are thresholds of the No-Fault Law ?: - Significant and permanent loss of a bodily function or

• Permanent injury other than scarring and disfigurement or
• Significant and permanent scarring or disfigurement or
• Death

69. What is the adjusters investigation limited too ?: A simple verification of bills and estimates or it may be expanded to include photographs, witness canvasses, or recorded statements as the circumstances require.
70. What are the componets of a investigation process ?: - Inquiry

• Verification
• Comparison

71. What are some reasons for suspension, revocation or termination of a license ?: - Transacting Insurance outside of scope of one's license

• Misrepresentation or fraud
• Sliding
• Demonstration of unworthiness or lack of fitness
• Misappropriation of funds
• Failure to inform Department of financial services, within 30 days, after pleading guilty or no contest to a felony.

72. Florida Unfair Insurance Trade Practices Act: Describes certain practices, penalties are provided for misrepresentation to insureds and claimants and busi- ness practices such as

• Failing to act promptly
• Failure to affirm or deny a claim when an insured is entitled there to
• Failure to explain claim denials in writing
• Failure to maintain complaint-handling procedures such as keeping accurate records of complaints.

73. Comprehensive Coverage: Covers all loss except collision or overturn. Stan- dard deductible is $100 per car, $500 per occurrence applies to losses from theft, mischief, and vandalism.

74. What is the minimum requirements for the Financial Responsibility Law ?: - The legally valid claims of others must be satisfied(up to the 10/20/10 require- ments)

• The owner and operator must provide certification of financial responsibility for future accidents. If not satisfied operator's driver's license and the registrations of all owned vehicle's are suspended.

75. What are the basic activities in claims handling ?: - Investigation to establish coverage, determine legal liability, and verify if the alleged damages qualify the loss for payment.

• Evaluation to determine the fair payment in accordance with the contract and applicable law.
• Negotiation of a quality settlement based on facts discovered during the evaluation process.

76. Claim: Is the assertion of an alleged legal right against an insurer, which carries with it a demand for appropriate relief.
77. Claims Adjuster: One who is involved in the investigation, adjustment, nego- tiation and/or trial preparations of claims arising under insurance policies.
78. Adjusting: Process of disposing of an insurance claim.
79. Loan Receipt: A written statement given by the insured to the insurer acknowl- edging that money received in the settlement of damages is received, not as a final payment, but as an advanced pending the outcome of a claim against the person responsible for the damage.
80. Apportionment: Is a provision for computing and assigning to each of two or more contracts covering a claim its proportion of the amount of the loss.
81. How to settle a claim for an Injured Minor ?: Under Fl Law, the adjuster should settle a third-party liability claim of an injured minor child with both parents of the injured child, presuming the settlement is for an amount not in excess of $15,000. If it is more than that it must be consummated through the Circuit or County Courts.
82. What are the violations of the Unfair Trade Practices Act ?: - Failing to act promptly.

• Failure to affirm or deny a claim when an insured is entitled thereto.
• Failure to explain claim denials in writing.
• Failure to maintain complaint-handling procedures, such as keeping accurate records of complaints.

83. Section 624.155 of the Florida Statues provides ?: That any person who is damaged by certain insurer practices is granted a right to sue the insurer for damages.
84. The Principle Of Utmost Good Faith: An insurance contract is based, places serious responsibilities on the claim adjuster with regard to conduct, work habits, and specific claims handling activities.
85. What does 10/20/10 mean ?: 10=10,000 Livability per person injured-amount that will be paid out for injuries to one person. 20=20,000 Combined Total Liability for all injuries-this is the most paid out for injuries for an accident. 10=10,000 Property Damage-the most paid out for damage caused to property of others.
86. What is SR-22 ?: A form of coverage known as a NAMED NOOWNER policy is required, this form offers insurance coverage only while the insured is operating automobiles owned by others.
87. What are the two things that need to happen for financial responsibility that did not exist at the time of the accident ?: - The legally valid claims of others must be satisfied(up to the 10/20/10 requirements).

• The owner and operator must provide certification of financial responsibility for future accidents.

88. What are the main elements of the FL Law ?: - Those who comply with the law have limited immunity from tort suits.

• As one may not be able to seek legal liability damages against another for bodily injuries, the law substitutes, under one's own insurance, the coverage defined as Personal Injury Protection(PIP)

89. How many days does a Non-Resident's vehicle physically present in FL have subject to the No-fault law ?: 90 days.
90. What are the three penalties for non-compliance with the compulsory in- surance requirements ?: - The owner is denied the immunities from legal liabilities that are granted to those who comply.

• The owner is personalltly liable for payment of PIP benefits to those entitled to such benefits.
• The owner's driver's license and vehicle registration are subject to suspension, as under the Financial Responsibility Law.

91. What does Extended PIP do ?: - Increases medical benefits from 80% to 100%.

• Increases income loss from 60% to 80%.
• Applies only to named insured and family members.

92. What does additional PIP do ?: - Increases the $10,000 limit by amounts such as $10,000, $25,000, $40,000, and $90,000(again, for a premium increase).

• Increases do not impact $5,000 death benefit.
• Applies only to insured and family members.

93. Personal Auto Policy: Used to insure the automobile exposures of individuals and families.
94. Business Auto Policy: Insurers the automobile exposures of Business.
95. What are the kinds of autos owned by businesses and covered under a Business Auto Policy ?: - Private Passenge Type Auto-Station Wagons, jeeps, pickups, panel trucks, vans, and utility trailers.

• Public Auto- Buses and Taxicabs
• Commercial Auto- truck tractors, semi-trailers, commercial trailers, and Service trailers.
• Special types of vehicles like cherry pickers, air compressors.

96. Garage Coverage Form: Used to insure businesses engaged in selling, ser- vicing, repairing, parking or storing autos.
97. Truckers Coverage Form: Used to insure businesses that are hired to trans- port goods for someone else.
98. Business Auto Coverage Form: Used to insure the automobile exposures of all businesses other than garage or trucking businesses.
99. What does Commercial General Liability contract includes ?: - Declara- tions

• Common policy conditions
• One of the two coverage forms, Occurrence, or Claims-Made
• A Nuclear Energy Liability Exclusion endorsement
• Various other endorsements may be attached to broaden or restrict the coverage provided by these basic forms.

100. Declarations: Identifies the named insured and address, states the policy pe- riod and premium and miscellaneous information about the insured, and specifies the limits of coverage that apply.
101. The policy states that if a company wishes to cancel, How many days must it give prior notice ?: 30 days.

102. Nuclear Endorsement: Excludes all hazards related to nuclear energy.
103. What is Coverage A ?: Bodily Injury and Property Damage Insuring Agree- ment.
104. Bodily Injury(BI): Physical harm and includes sickness or disease or death resulting there from.
105. Property Damage(PD): Physical injury to tangible property, including loss of use of that property.
106. Occurrence: An accident, including. continues or repeated exposure to sub- stantially the same general harmful conditions.
107. Accident: A sudden, unexpected event.
108. Coverage Territory: Is the U.S. and its territories or possessions , Puerto Rico and Canada, including international waters and airspace between these places.
109. The Coverage Trigger: Determines how policy will respond.
110. The Occurrence form: Applies to BI or PD which occurs during the policy period, regardless of any later time at which a claim is made.
111. The Claims-Made form: Applies only to a BI or PD which occurs on or after the retroactive date, and for which the claim is received or recorded by an insured or the company during the policy period.
112. Retroactive Date: Establishes the original policy date for a serious of claims made policies.
113. Intentionally Injury: Coverage excludes injury or damage which is expected or intended by the insured.
114. liquor Liability: If the insured is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, liability associated with serving liquor to intoxicated or underage persons or in violation of a law is excluded.
115. Employee Injuries: Coverage excludes liabilities under a workers compen- sation or similar law or arising from injuries to employees of the insured.
116. Pollution: There a basically no coverage for injury, damage or clean up costs caused by pullutants, subject to minor exceptions.
117. What is Coverage B ?: Personal and Advertising Injury.
118. What is Coverage C ?: Medical Payments.

119. What are the General Liability Insurance Forms ?: - Owners and Contrac- tors Protective Liability(OCP)Form.

• Liquor Liability Coverage Form.
• Products/Completed Operations Liability Coverage Form
• Pollution Liability Coverage and Pollution Limited Form.

120. Professional Liability Insurance Coverage: Covers liability arising from rendering of or failure to render professional services.
121. Farm Liability Coverage Form: Provides coverage for BI or PD arising out of farming operations of personal activities.
122. The Custom Farming Endorsement: Provides coverage for liability arising from the insureds performance of farming operations for another, for a charge under any contract or agreement.
123. The Farm Employers Liability/Medical Payments Endorsement: Applies the basic Liability and Medical Payments coverages to injuries to farm employees, but not to employees eligible to receive workers compensation benefits.
124. Employment Related Practices Liability: This Form provides employers witg claims- made coverage for liability arising out of claims for injury to an employee because of an employment-related offense.
125. Unauthorized Entity: An entity that is required to be licensed or registered with the Florida Office of Insurance Regulation but is operating without the proper authorization is identified as an unauthorized insurer. 126. To be Authorized and transact business in FL what must you have ?: Certificate of Authority.
126. General Lines Agent 2 - 20: Licensed to write property/casualty, surety, or health insurance.
127. Customer Representative 4 - 40: Must be licensed, appointed by a General Lines Agent and may assist in transactions in the OFFICE ONLY.
128. Limited Customer Representative 4 - 42: Must be licensed, appointed by a General Lines Agent and transact AUTO insurance in the OFFICE ONLY.
129. All Lines Claims Adjuster 6 - 20: Investigates, Evaluates, and Negotiates Claims.
130. A General Lines Adjuster is required to do what ?: Participate in 24 hrs of continuing education every 2 years.
131. A licensee must notify the Department in writing in how many days for change of name, address, phone number or email ?: 30 days.

133. Loss Sustained: Cover only losses that both occurred and were discovered during the policy period, or within one year of it's expiration.
134. Discovery: Any loss discovered during the policy period or within 60 days after it's expiration is called regardless of when it occurred.
135. Property Covered: The policy covers only property the named insured owns or holds or for which the insured is legally liable, and for the benefit of the insured.
136. Safe Depository: Covers the named insureds legal liability if it is the safe depository for customers property. Perils covered include burglary, robbery, de- struction on damage.
137. Valuation: Money is valued at its face value; securities at their value on the day loss is discovered; and other property at actual replacement cost or, if less, cost to repair.
138. Government Crime: A slightly different set of basic Crime Coverage Forms is tailored for insuring governmental entities.
139. Guests' Property: Covers the named insureds legal liability for guest's prop- erty while in a safe deposit box or while the property is inside the premises or in the named insureds possession.
140. Commercial Crime Forms: Crime Insurance may be written as a separate policy, with it's own Declaration and Conditions, or as a package policy, bundled together with Employee Dishonesty.
141. Forgery Or Alteration: Provides coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money.
142. Computer Fraud: Will pay for the loss of or damage to money, securities and other property resulting from using a computer to fraudulently transport from inside the insureds promises to a person or place outside the premises, which encompasses anywhere in the world.
143. Extortion: 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 being held captive.
144. Clients Property: Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insureds client.
145. Lesses of Safe Deposit Boxes: Covers theft, disappearance, or destruction of securities; and burglary or robbery of property other than money or securities, all from within designated places of safe depository.

146. Funds Transfer Fraud: Is designed to cover loss due to the fraudulent trans- fer of funds through the use of a telephone or fax machine.
147. Securities Deposited with Others: Covers theft, disappearance, or destruc- tion of securities, which have been deposited with a custodian, such as a bank or stockbroker.
148. The deductible: The dollar amount that the insured pays before the insurer is required to pay the remainder of the loss is known as?
149. Replacement cost: Which loss settlement provides new for old?
150. the claims adjuster's role in the insurance industry includes: Give appro- priate legal advice and write binding contracts
151. following are examples of a peril: Lighting, Explosion and Fire
152. The abandonment clause: The clause that prohibits the insured from dump- ing damaged property on the insurance company and demanding to be paid in full is?
153. Liberalization: When a policy change results in broadened coverage with no additional premium, the insured automatically receives the benefit under the principle of?
154. Risk: The chance of financial loss is known as?
155. Percentage: Hurricane insurance in coastal areas in Florida is written subject to which of the following deductibles?
156. The principle of proximate cause: When there is an unbroken connection between an occurrence and the damage that arises from the occurrence, and all the resulting damage happened on account of that occurrence, this is known as?
157. characteristics of a contract: Consideration must be given to at least one party
158. Primary: When two or more policies apply to the same loss, the one that pays first is called?
159. Mortgagee Clause: The clause that protects the lender in a real property policy is the?
160. Indemnity: The concept that one should not profit from the payment provided by an insurance policy is known as?
161. Property or first-party insurance: Payment the insurance company makes directly to the insured is?
162. Written: To be considered an insurance contract, a policy must be?

163. Subrogation: When the insured transfers his/her rights to collect for dam- ages to the insurer, it is known as?
164. The insured: If an insurance policy is unclear or ambiguous, in whose favor does the policy respond?
165. Insurable interest: A partial owner of a building cannot receive full value for the building in the event of a loss because of?
166. Comparative negligence: Reduces the insured's damages by the degree of negligence
167. the following are part of an insurance policy: Exclusions, Declarations and Endorsementd
168. ACV: replacement cost minus depreciation
169. The insured's house is totally destroyed in a fire. The house is insured for $200,000. The adjuster who investigates the claims determines the ACV of the home is $185,000.: The Florida Valued Policy Law requires the insurer to pay $200,
170. describe a franchise deductible: No payment is made until the loss equals or exceeds the amount of the deductible and then the loss is paid in full
171. All of the following are characteristics of an insurance contract EX- CEPT? Personal, Private, Conditional, Adhesion?: Private
172. If a claimant is represented by an attorney, the adjuster should?: Only meet with the client when the attorney is present
173. Adjusters should advise claimants on?: claims information
174. An adjuster is required to notify a claimant when a claim is denied. The notification must be?: Written
175. ÿT h e term ethics refers to?: service to others, personal respect and proper mode of conduct
176. When an adjuster deals with a claimant who is not a policyholder, this claim is known as an?: third party claim 177. The successful adjuster/negotiator should understand that communica- tion includes all of the following EXCEPT? Select one: A. Verbal and non-verbal messages B. Questioning

C. Listening D. Decision-making: Decision-making

178. Which of the following is not a duty of the claims adjuster? Select one: A. Investigating B. Evaluating C. Negotiating D. Counseling: Counseling 179. The adjuster's duty to the insurer is best described as? Select one: A. Friendly B. Factual C. Fun D. Fiduciary: Fiduciary 180. Errors and Omissions claims are a result of? Select one: A. unethical behavior B. lack of knowledge or information C. Both unethical behavior and lack of knowledge or information are correct D. Neither unethical behavior and lack of knowledge or information are correct: Both unethical behavior and lack of knowledge or information are correct 181. Unethical behavior affects? Select one: A. The claimant B. The adjuster C. All of the above D. The entire company: All of the above 182. All of the following are components of negotiating EXCEPT? Select one: A. The issue should be negotiable B. There must be an exchange of value for value C. The parties should trust each other D. The claimant must be satisfied: The claimant must be satisfied 183. The Civil Remedies Provision of the Insurance Code states that ad- justers should not? Select one: A. Handle claims in a prompt manner

B. Accompany claims payments with statements explaining coverage C. Settle claims in good faith D. Try to influence settlements: Try to influence settlements

184. The insured, a resident of Florida, was in an accident in Georgia. The Florida car was insured with liability limits of 10/20/10. Georgia's minimum liability limits are 20/40/10. How will the Florida policy respond? Select one: A. 10/20/ B. 20/40/ C. No coverage D. 20/40/20: 20/40/ 185. Under a PAP, when does the insurance company cease to defend the insured? Select one: A. The insurance company is not obligated to defend the insured B. After the case has been resolved C. When the policy limit is exhausted D. At the policy's expiration: When the policy limit is exhausted 186. The Florida Financial Responsibility Law is triggered by? Select one: A. Registration of the vehicle B. Purchase of the vehicle C. An accident involving bodily injury or property damage D. Purchase of an auto policy: An accident involving bodily injury or property damage 187. The insured is an owner and is insured for PIP. She is injured in an acci- dent and has the following damages? medicals-$12,000, lost wages-$6,000. How much will PIP pay if there is a $1,000 deductible? Select one: A. $11, B. $12, C. $9, D. $10,000: $10, 188. Trucker insurance premiums are based on all EXCEPT? Select one: A. Radius B. Age of the driver

C. Type of business D. Territory garaged: Age of the driver

189. Joe works for Sinks-R-Us, Inc. As part of his compensation package, he is supplied with a company car, which he gets to take home every night. Joe wants to make sure the Liability coverage under his PAP covers him while driving his company car. What coverage would you add to Joe's PAP? Select one: A. Named Non-owned coverage B. Extended Non-owned Liability coverage C. Drive Away Liability coverage D. False Pretense coverage: Extended Non-owned Liability coverage

190. Dan has a Personal Auto Policy with Liability of 10/20/10 and basic PIP with a $1,000 deductible. He is running one day when a car strikes him. A week later he dies. Medical bills are $7,500 and lost wages are $1,000. How much, if any, will PIP pay in this claim?: 10,800. 191. Joe is an owner insured for PIP. In which of the following situations does Joe have his PIP benefits available to him? Select one: A. In a slip and fall accident in the mall in Florida B. In an accident while riding his motorcycle C. Struck as a pedestrian in Georgia D. In an accident while riding as a passenger in a friend's car in Florida: In an accident while riding as a passenger in a friend's car in Florida 192. The insured bought a new car with a Mechanical Breakdown Policy. When the odometer reaches 40,000 the car has a serious breakdown involv- ing the transmission. How does the Mechanical Breakdown Policy respond? Select one: A. No coverage because the policy expired B. No coverage because a transmission is not covered C. ACV coverage will apply D. Replacement cost coverage will apply: No coverage because the policy expired 193. An insured borrows his neighbor's trailer to pick up his new furniture. Which of the following best describes the insured if he has an accident? Select one: A. His PAP will extend coverage if the proper endorsement is added B. Only the liability of the PAP extends to the trailer C. His auto is insured, but not the borrowed trailer

D. His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer: His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer

194. Jane is driving Mary's car. Jane has an at-fault accident with Bob. Mary has liability limits of 10/20/10. Jane has liability limits of 100/300/100. If Bob has $40,000 in bodily injury, how much will be collected from Jane's policy? (IGNORE PIP) Select one: A. $30, B. $10, C. $50, D. $20,000: $30, 195. Jim owns an auto and he is involved in an auto accident. He suffered $4,000 in medical expenses and $4,000 of lost income. How much does his insurance pay if he has Extended PIP? Select one: A. $7, B. $8, C. $4, D. $5,200: $7, 196. If an insured has $100,000 of unstacked UM coverage with three cars on the policy, how much is available under a UM claim? Select one: A. $0- B. $300, C. $100, D. $200,000: $100, 197. The insured has a PAP with single liability of $50,000. The following loss occurs: $37,000-BI pedestrian; $3,000-Display window; $10,000-Sports car; $1,500-Legal defense. How much would his policy pay for the loss? Select one: A. $51, B. $37, C. $40, D. $50,000: $51, 198. The insured is driving down the road when a low hanging branch strikes and cracks his windshield. The cost to replace the windshield is $650. The insured has a $500 collision deductible and a $250 other than collision deductible. The insurance company will pay...?

Select one: A. $ B. No coverage C. $ D. $650: $

199. Which of the following is covered under PAP liability? Select one: A. Intentional damage B. Permissive use of insured's automobile C. Damage to property owned by the insured D. Injury to an employee in the course of employment: Permissive use of insured's automobile 200. Joe is injured when the jack slips as he is changing a tire in his driveway. The bill for his treatment in the emergency room is $450. Where will Joe go first to collect for his medical expenses? Select one: A. Worker's Compensation B. His PIP insurance C. His homeowner insurance D. His health insurance: His PIP insurance 201. All of the following UM options are available to an insured, EXCEPT? Select one: A. May purchase UM coverage less than liability limits B. May purchase UM coverage more than liability limits C. May reject UM coverage in writing D. May elect non-stacked UM coverage in writing: May purchase UM coverage more than liability limits 202. The Truckers form that provides liability coverage for damage to non-owned trailers is called? Select one: A. Interchange coverage B. Commercial Trailer coverage C. Trailer Interchange coverage D. Trailer coverage: Trailer Interchange coverage 203. Hail damage to an auto is an example of? Select one: A. An exclusion to Part A-Liability B. An exclusion to Part D-Physical Damage

C. Other than collision D. Collision: Other than collision

204. Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible? Select one: A. $6,000 B. $5,000 C. $15,000 D. $10,000: $6,000 205. The coverage that provides Liability, Medical Payments and Uninsured Motorist for a named individual who does not own an automobile is? Select one: A. Extended Non Owned B. Driver Other Car C. Named Non Owned D. Extended PIP: Named Non Owned 206. Uninsured Motorists coverage is used to cover the insured for? Select one: A. Bodily injury only B. Bodily injury and property damage C. Medical payments D. Liability: Bodily injury only 207. Sam is an owner and not insured for PIP. Sam borrows Fred's car, which is insured for PIP. Sam has an at-fault accident when he strikes Betty's car. Betty is insured for PIP. As a result of Sam's negligence, Betty is injured and has $5,000 in medical bills. Which of the following is true? Select one: A. Sam does not have Tort Exemption B. Betty may sue Sam and Fred for $5,000 C. Betty must use her own PIP to pay her medical bills D. Sam may recover any damages from Fred's PIP: Betty must use her own PIP to pay her medical bills 208. Susie is driving down the street when a dog runs in front of her car. She swerves to avoid the dog and hits a tree. This is an example of? Select one: A. Collision B. Both A and B

C. Other than collision D. Neither A or B: Collision

209. Which of the following is not eligible for a homeowners policy? Select one: A. Tom who owns the house he rents to his neighbor B. Joe who lives is a garage apartment C. A husband and wife who own a vacation home in Georgia D. Betty who rent a condominium unit: Tom who owns the house he rents to his neighbor 210. Homeowner policies are rated on all of the following, EXCEPT: Select one: A. Location of the dwelling B. Age of the homeowner C. Fire protection available D. Construction of the dwelling: Age of the homeowner 211. The insured lives in his principal residence 80% of the year. A flood loss would be paid at which of the following? Select one: A. At 80% coinsurance B. Replacement Cost C. ACV D. Valued Policy: Replacement Cost 212. ÿUnder a Dwelling Policy, all of the following are eligible, EXCEPT: Select one: A. A rental apartment in a commercial building B. A 1 - 6 family dwelling C. A two-family dwelling owned by a corporation D. A mobile home: A 1 - 6 family dwelling 213. When a community applies for flood coverage, until they are approved they are under: Select one: A. The Regular Program B. The Special Program C. The Emergency Program D. The Flood Program: The Emergency Program 214. If an insured sells his house to another person, the buyer is prohibited from receiving the seller's insurance policy because insurance is a contract

of: Select one: A. Conditions B. Adhesion C. Indemnity D. A personal nature: A personal nature

215. All of the following are eligible for a Homeowner Policy, EXCEPT: Select one: A. Renters who maintain resident in any type of building B. Dwellings owned by a corporation C. Owner-occupants of 1 - 4 family dwellings D. Condominium unit owners: Dwellings owned by a corporation 216. Outdoor equipment used to service the premises is covered under: Select one: A. Coverage C B. Coverage A C. Coverage B D. Coverage D: Coverage C 217. A contract condition of the Homeowners policy which provides that the insured gets the benefit of broadened coverage if the company adopts a broader form without an increase in premium is: Select one: A. Subrogation B. Liberalization C. Assignment D. Coinsurance: Liberalization 218. The coverage territory for Personal Inland Marine Insurance (PAF) is: Select one: A. Whatever is specified in the policy B. Worldwide C. United States D. U.S., Canada, and U.S. territories: Worldwide 219. What condition must be met in a HO Policy for replacement cost to settle the loss? Select one: A. The insured must replace the item lost or damaged B. All of these answers are correct C. The insured must file the claim within 10 days

D. The insured must carry insurance of at least 80% of the cost to replace the dwelling: The insured must carry insurance of at least 80% of the cost to replace the dwelling

220. Which HO form covers a condo owner? Select one: A. HO- 3 B. HO- 2 C. HO- 6 D. HO-4: HO- 6 221. Joe had a Dwelling Policy with $40,000 Coverage A limit. A covered loss occurred that totaled the dwelling and the detached garage. The loss to the detached garage was $6,000. How much will be paid to Joe to cover this loss? Select one: A. $44,000 B. $40,000 C. $46,000 D. There is no coverage: $44,000 222. Tommy and Chris leave their golf clubs in the trunk of Tommy's car when they stop to eat lunch. Both sets of clubs are stolen. Which policy covers Chris' clubs? Select one: A. Tommy's HO B. Tommy's auto C. Chris' auto D. Chris' HO: Chris' HO 223. Which of the following is not covered under Coverage C of a HO Policy? Select one: A. An aquarium is knocked over and the fish die B. A student away at school has his golf clubs stolen C. An insured's luggage is stolen from his hotel room D. A weekend guest loses his hearing aid during a fire: An aquarium is knocked over and the fish die 224. The clause that protects the lender in a real property policy is the: Select one: A. Coinsurance Clause B. Loss Payee Clause C. Appraiser Clause D. Mortgagee Clause: Mortgagee Clause

225. Under an HO3 policy, if Coverage A is $250,000, Coverage B is: Select one: A. $10,000 B. None of the above C. $20,000 D. $25,000: $25,000 226. An HO- 4 Policy is designed for a: Select one: A. Condo owner B. Home owner C. All of the above D. Renter: Renter 227. What is the deductible for a Personal Articles Floater (PAF)? Select one: A. $250 B. $100 C. $500 D. $0: $0 228. An insured has $200,000 Coverage A dwelling coverage, under his HO- 3 Policy. He incurs the following damage from a covered peril: fence - $5,000; gazebo - $7,500; tool shed - $15,000. What will his HO Policy will pay? Select one: A. $10,000 B. No coverage C. $25,000 D. $20,000: $20,000 229. Which situation is not covered for liability under an HO3 policy? Select one: A. Mike used a 4-wheel ATV to haul yard clippings to his compost pile. A neighbor is on Mike's property and Mike accidentally runs into him with the ATV. B. Mike rents the community center for his son's wedding reception. A guest falls and the guest sues Mike for injuries. C. Mike owns a 16 foot. 100 H.P. outboard motor boat and he has an at-fault accident in which he totally destroys another boat. The owner of the boat sues Mike. D. Someone falls at the house Mike is planning to live in after it is built: Mike