LATEST UPDATED FLORIDA ADJUSTER EXAM QUESTIONS AND ANSWERS 2024 GRADED A+ACTUAL EXAM., Exams of Financial Management

Download LATEST UPDATED FLORIDA ADJUSTER EXAM QUESTIONS AND ANSWERS 2024 GRADED A+ACTUAL EXAM. and more Exams Financial Management in PDF only on Docsity! LATEST UPDATED FLORIDA ADJUSTER EXAM QUESTIONS AND ANSWERS 2024 GRADED A+ACTUAL EXAM. Which of the following is NOT one of the duties of the Department of Financial Services? b. Dept does NOT set rates nor write policies - AnswerSet rates and write policies for various company products The adjuster has a particular relationship to his principal, the insurer. Which of the following best describes this relationship? - AnswerIt is a fiduciary relationship. The Claims Adjuster's role in the insurance industry includes all the following EXCEPT: - AnswerGives appropriate legal advice and writes binding contracts All of the following activities are illegal for an adjuster, EXCEPT: - AnswerUse only company forms to prepare releases All of the following are part of the conditions imposed upon the insured in the event of a loss, EXCEPT: - AnswerInsured should negotiate on behalf of the company for 3rd party claimants. A claimant was given a settlement, which stipulated, that if the claimant did not contact the company within a certain period of time, the claim would automatically close. No release was signed. Which of the following best describes this method of settlement? - AnswerNo release or walk-away The Continuing Education requirement to maintain an Adjuster license in Florida is: - AnswerTwenty four hours every two years. An adjuster received written notice from the Department of Financial Services regarding a claim. What length of time does he have to respond to the inquiry? - Answer21 calendar days Comparative negligence is determined through - AnswerInvestigation & AnalysisAgreement between parties or by mediation or arbitrationJudge and/or jury During what period of time must an adjuster reply to communication from a policyholder on a claim? - Answer14 days Which of the following is NOT a goal in the adjusting process? - Answeralways pay the maximum limit of the policy An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: - AnswerA Full Release settlement Adjuster Jane moved from one city in Florida to another. What length of time does she have to notify the Insurance Department of the address change? - Answer30 Days Which of the following is TRUE? - AnswerIf an appointment is terminated, an adjuster has 48 months to secure another appointment Bad Faith & Adjusting Practices - Under the Florida Unfair Trade Practices Act & the Unfair Methods of Competition and Unfair or Deceptive Acts, all of the following are prohibited, EXCEPT: - AnswerAdjuster keeps accurate records on a claim Florida's Administrative Code contains a Code of Ethics for Adjuster - which of the following is FALSE? - AnswerAn Adjuster owes fair and prompt treatment to their own company's policyholders only Which of the following is a duty owed to an invitee? - Answerland owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? - Answerliability is a legal doctrine and coverage is a contractual obligation Which of the following is NOT one of the fiduciary responsibilities of an adjuster? - AnswerWithhold pertinent information from the company to please a client If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP with no deductible, & Med Pay of $2,000 ... what is the maximum potential payment from Jack's Personal Auto Policy to a guest passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in medical expenses? - Answer$22,000 (PIP $10,000; Med Pay $2,000; BI $10,000) UM (Uninsured Motorist) coverage under the PAP (Personal Auto Policy) pays for: - Answerbodily injury to the insured caused by hit and run driver Lender's interests in REAL property are protected with a Mortgage clause, how are lender's interests protected in personal property - such as automobiles? - AnswerLoss payable clause While driving on the Pennsylvania Turnpike, William's auto has a collision with a deer that jumps in front of his car. In order for coverage to be afforded, William's Personal Auto Policy must have: - AnswerOther than Collision coverage An insured took his TV to a shop for repairs, on the way, he stopped suddenly and the TV fell off the seat, breaking the TV. How will his PAP (Personal Auto Policy) respond? - AnswerThe PAP will not respond. An insured has "Stacked" Uninsured Motorist with 25/50 limits on each of 2 vehicles that he owns. How much Uninsured Motorist coverage is available to the insured in the event of an accident with a hit & run driver? - Answer50/100 The "trigger" of the financial responsibility law is: - AnswerAn accident involving bodily injury or property damage rendering the vehicle inoperable or a serious violation such as DUI. Which of the following is the lowest single limit automobile liability that meets the requirements of the Florida Financial Responsibility Law? - Answer$30,000 An insured had an accident in another state that required liability limits of 25/50/25. Our insured had 10/20/10 limits. What happens if the liability he incurs exceeds 10/20/10? - AnswerOur insured's policy will respond to the higher limit of the other state Joe has 10/20/10 liability limits, and he borrows Sue's car. Sue has 15/30/15 limits of liability. Joe injures a pedestrian while driving Sue's car and the pedestrian's medical bills due from liability total $22,000 (PIP & Med Pay are paid out in full). How much is paid from Liability? - AnswerSue's policy pays $15,000 & Joe's policy pays $7,000 Your insured has purchased the minimum split limit policy that meets Financial Responsibility Law in Florida. He causes the following bodily injuries to passengers: Carl $12,000 Jeanne $10,000 Charlie $10,000 How much will his policy pay? - Answer$20,000 for the total BI portion of accident An insured has 25/50/25 limits and injured another person. The injured person won a tort claim for $30,000 against the insured and the insured's attorney charged $7,500 to defend the insured. How much is paid by the insured's insurance company? - Answer$32,500, the policy limit and the attorney's fees for defense. Which of the following is NOT one of the "thresholds" in the "No-Fault" law? - AnswerThe temporary injury of the insured Which of the following is a "defined motor vehicle" under Florida No-Fault law? - Answer9,500 pound SUV If an insured is injured by an at-fault driver, and has injuries of $5,000, what amount will PIP pay if he has Florida No-Fault Basic PIP with a $1,000 deductible? - Answer$3,200 Which of the following could NOT be considered an "owner" of a motor vehicle? - AnswerA long term lease of 3 months Which of the following is true concerning the extended PIP endorsement? - AnswerMedical expense reimbursement is raised from 80% to 100% When an Additional PIP Endorsement is added to the Personal Auto Policy, we know that the policy already has - AnswerExtended PIP Endorsement Nonresidents must comply with the Florida No Fault law: - AnswerIf their auto is in Florida over 90 of the last 365 days When is the named insured NOT entitled to PIP benefits? - AnswerInjured outside of Florida while a pedestrian struck by a defined motor vehicle Which of the following statements is false concerning No-Fault Auto Insurance? - AnswerNegligence must be established. An insured has Basic PIP with no deductible, in an accident he incurs medical bills of $8,000, $1,000 in lost wages, and $500 in replacement services - how much will PIP portion of policy pay? - Answer$7,500 Jane is a Florida resident with an auto. She has PIP coverage of $10,000 with no deductible. If she is in an auto accident and has medical bills of $10,000, how much will her PIP pay? - Answer$8,000 If Jane also has work loss of $1000 due to the auto accident, how much will her PIP pay for work loss? - Answer$600 What if Jane's accident happened during the work day while she was driving a GEICO owned auto and Jane was out adjusting auto claims. How much would Jane's PIP pay for her medical injuries? - Answerzero If Jane had an accident while she was driving to Orlando to go to Disney and had borrowed her neighbor's minivan so she could take 5 friends ... how much would Jane's PIP insurance pay for her medical bills of $10,000 and her work loss due to the accident of $1000? - Answer$8600 If all 5 of Jane's friends are Florida residents who own automobiles, how much of Jane's PIP coverage is available for each of the 5 friends riding with her in the borrowed minivan? - Answer0 What if Jane has 5 children and she is taking them all to Disney for the day ... how much total PIP coverage is available from Jane's PIP to Jane and her 5 children in the friend's minivan? - Answer$60,000 What is the limit on medical benefits under Workers Compensation? - AnswerAll medical costs with no limit The following are employees who must have workers compensation EXCEPT: - AnswerPro athletes A claimant ate some undercooked fish and got violently ill at the restaurant. Which of the following would pay for this occurrence? - AnswerA premises and operations form Which of the following are covered exposures for bodily injury and property damage under the CGL (Commercial General Liability) Policy: - AnswerProducts and completed operations Contractual Liability Contingent Liability Who is covered for their exposure under the CGL - Commercial General Liability Policy? - AnswerEmployees of the business Volunteers, legal representative, trustee Real estate manager Under a CGL Occurrence liability form, which policy would cover an accident that occurred June 1, 1998, and was discovered and reported July 15, 2008: - AnswerA policy dated 1/1/98 to 12/31/98 Under CGL, the Occurrence form - bodily injury or property damage must occur during the policy period - reporting of the claim may be: - Answerwithin policy period or thereafter with no limit on time Under CGL Claims-made form, the Supplemental extended reporting period: - AnswerMay extend the reporting period from one year to an indefinite time. A furniture manufacturing business wanted to serve free beer at its company picnic. What is required for this business to have liability coverage for liquor consumption at the picnic? - AnswerThe business CGL policy will cover this exposure Insurance agents and adjusters may have their professional activities covered under a type of liability insurance called: - AnswerErrors and Omissions Liability Which of the following is true concerning the definition of "accident" under the CGL (Commercial General Liability) ? - AnswerAn accident may include continuous and repeated exposure to the same condition. The coverage for damage to an aircraft under the care, custody, or control of the insured while the plane is in for storage or service is: - AnswerHangarkeepers liability Under the commercial property form, what length of time must expire before a building is considered "vacant", thus suspending some coverages, while reducing payment on others? - Answer60 Days A florist wanted coverage on business contents that vary in amount over the course of a year. Which form best covers this situation? - AnswerThe value reporting endorsement Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called? - AnswerA package policy A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard to save the ship - this action is called: - AnswerJettison A contractor was concerned some of his tools, such as a welder, could be stolen from the job site. What inland marine form is best suited for this exposure? - AnswerThe contractors equipment floater In Commercial Policies - Vacancy of more than 60 days suspends coverage on all the following EXCEPT : - AnswerWindstorm Condominiums may be covered by both an Association (Commercial Condo) Policy and a Unit Owners' (Homeowners) Policy, which of the following is true? - AnswerThe Association Policy is primary and the Unit Owners' Policy is excess There are advantages of an agent recommending a commercial package policy over several monoline policies. Which of the following is an advantage? - AnswerThe package policy is easier to rate and sell - more efficient .In the package policy, coverage gaps are less likely to occur. Premium savings may result from a package policy. A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania over the course of the next 12 months. What inland marine coverage best fits this exposure? - AnswerAn annual transit policy Commercial leases have special coverages in the Leasehold Coverage Form due to the fact that - Answerthey are long-term often with investment in the real estate. A home oxygen service must continue to supply its customers even if the facility is destroyed by a fire. Consequently, the service may make purchases from one of its competitors to keep their own customers supplied with medically necessary equipment in order to have the opportunity to stay in business. Where is this type of insurance coverage found ? - AnswerExtra Expense Coverage form A community applied to be part of the National Flood Insurance Program. Until they are approved, what is the status of the community? - AnswerThey are in the emergency program Which of the following would be excluded (NOT covered) under a personal articles floater on an "all risks" basis? - AnswerInsects destroy a valuable postage stamp worth $500 Which of the following is false concerning flood insurance? - AnswerTo be insured for flood, a new building only must have the walls up. All of the following are EXCLUSIONS under a personal articles floater (Personal Inland Marine Policy) EXCEPT: - AnswerTheft An Umbrella Policy may be broader than the underlying policies and respond as primary coverage. When the Umbrella is PRIMARY, there is an amount to be paid by the insured before the Umbrella will pay. What is this amount called? - AnswerThe self-insured retention All of the following may qualify for a dwelling policy EXCEPT: - AnswerA 6 - family dwelling