Prepare for your Claims Adjuster license exam with these practice questions and answers. This guide covers property damage claims, liability assessment, investigation techniques, and claim settlement.
Q: Peril
Answer: Something that causes a loss.
Q: Hazard
Answer: Something that increases the probability that a loss will occur.
Q: Warranty
Answer: A policy condition, either based on information in the insureds application or inserted by the insurer. It is a guarantee of a fact.
Q: Misrepresentation
Answer: An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy.
Q: Concealment
Answer: The failure of the insured to reveal relevant facts known to the insured in applying for insurance.
Q: Abandonment
Answer: Property insurance policies usually contain an abandonment clause, stating the insured cannot dump damaged property on the insurer and demand its full value.
Q: Severability
Answer: The insurance applies separately to each insured as if other insureds did not exist.
Q: Proximate Cause
Answer: 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.
Q: Direct Loss
Answer: Physical harm to tangible property.
Q: Indirect Loss
Answer: Economic loss which flows as a result of direct loss.
Q: Actual Cash Value(ACV)
Answer: Replacement Cost minus Depreciation
Q: Coinsurance
Answer: 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.
Q: Personal Contract
Answer: Policies cover people who own and operate things, such as automobiles.
Q: Conditional Contract
Answer: Also called a hypothetical contract, is a contract agreement 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.
Q: Contract of Indemnity
Answer: 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.
Q: Insurable Interest
Answer: the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc.
Q: Waiver
Answer: 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.
Q: Express Waiver
Answer: Occurs when the insurer or its representative knowingly gives up a known right under the insurance contract.
Q: Implied Waiver
Answer: A waiver that is assumed to be in effect from a person’s behavior and shows he is waiving a right.
Q: Damages
Answer: 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.
Q: Subrogation
Answer: 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.
Q: Changes
Answer: All policies provide that any changes to the policy be made by the insurer, in writing.
Q: Policy Period
Answer: 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).
Q: Policy Territory
Answer: Condition limiting coverage to occurrences or losses that take place only within a stated geographical region.
Q: Other Insurance
Answer: The principle of indemnity dictates against duplicate recovery for the same loss.
Q: Cancellation
Answer: 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.
Q: Appraisal
Answer: 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.
Q: Insurance
Answer: Is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
Q: Binder
Answer: Acts as a temporary contract until the policy is issued.
Q: How many days should an insurer give for prior notice of cancellation of a binder?
Answer: 5 days.
Q: Property Insurance
Answer: Any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests.
Q: Liability Insurance
Answer: 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”.
Q: Loss Payee Clause
Answer: 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.
Q: Mortgage Clause
Answer: 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.
Q: Other Structures
Answer: Covers items that are not permanently attached to the main dwelling, such as a shed, fence, etc.
Q: Commercial Inland Marine
Answer: Helps identify the kinds of risk which are eligible for either ocean or inland Marine insurance.
Q: Building Ordinance Coverage
Answer: This endorsement covers the insured for enforcement of laws which require demolition of undamaged portions of buildings.
Q: Umbrella Policy
Answer: 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.
Q: Known Loss
Answer: Prevents an insured from coverage if the insured knew the loss was probable at the time of the insurance contract.
Q: Value Reporting
Answer: The limit of coverage is set at an amount somewhat higher than expected peak values.
Q: Commercial Property Insurance
Answer: Covers direct and indirect losses related to properties other than one to four family dwellings and farm properties.
Q: Employee Theft
Answer: Provides coverage for loss of or damage to money, securities, 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.
Q: Bid
Answer: Aggreement to fulfill a contractual obligation used frequently in construction and supplying goods.
Q: Health Maintenance Organization (HMO)
Answer: Provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium.
Q: Preferred Provider Organization(PPO)
Answer: A selected group of hospital’s and medical practitioners in a given area who have joined together in an effort to reduce medical costs.
Q: Estoppel
Answer: 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.
Q: Salvage
Answer: Motor vehicle or mobile home is a total loss.
Q: Junk
Answer: 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.
Q: Fiduciary Agent
Answer: Agent for a principal/Client. The legal or special relationship of trust, confidence, or responsibility between 2 or more parties.
Q: Domestic Insurer
Answer: Insurer is one formed under the laws of its this state.
Q: Foreign Insurer
Answer: Insurer is one formed under the laws of any state, district territory, or commonwealth of the United States other than this State.
Q: Alien Insurer
Answer: Insurer is an insurer other than a domestic or foreign insurer.
Q: Appointment
Answer: The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf an insurer or employer.
Q: Derelict
Answer: 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.
Q: Mechanical Breakdown Coverage
Answer: Covers repairs to mechanical parts of your vehicle that break. Even covers break in events not related to an accident.
Q: Sliding
Answer: Selling an item and stating that it is required by law.
Q: What is the Death Benefit amount for PIP ?
Answer: $5,000
Q: What is the amount for medical and disability benefits afforded by PIP ?
Answer: $10,000
Q: Who is the Financial Responsibility Law administered by ?
Answer: The Department of Highway Safety and Motor Vehicles.
Q: What are the Basic PIP Benefits ?
Answer: -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 reimbursed.-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.
Q: Company or Staff Adjuster
Answer: Are salaried employees under the supervision of the home, branch or regional claims department of insurers.
Q: Fee Adjusters
Answer: Offer their services on a fee-for-service basis. They represent many insurers.
Q: Bureau Adjuster
Answer: Employee or agent of an adjustment bureau which serves multiple company clients such as the GAB Business Services, Inc and Underwriters Adjusting Company both national firms.
Q: Independent Adjuster
Answer: 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.
Q: Public Adjuster
Answer: Is a claims adjuster who is an advocate for the policyholder in appraising and negotiating an insurance claim.
Q: What are the Characteristics of a Personal Auto Policy Declaration Page ?
Answer: -Liability(Bodily Injury)-Property Damage-Uninsured Motorist-Medical Payments-Personal Injury Protection-Collision Deductible-Comprehensive Deductible-Towing Coverage-Rental Coverage
Q: What are examples of Transacting Insurance?
Answer: -Solictitation of Insurance-Negotiation of Insurance-Effecting Coverage (Binding insurance coverage)-Transacting Insurance Matters(during and after insurance is bound).
Q: What are thresholds of the No-Fault Law ?
Answer: -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
Q: What is the adjusters investigation limited too ?
Answer: A simple verification of bills and estimates or it may be expanded to include photographs, witness canvasses, or recorded statements as the circumstances require.
Q: What are the componets of a investigation process ?
Answer: -Inquiry-Verification-Comparison
Q: What are some reasons for suspension, revocation or termination of a license ?
Answer: -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.
Q: Florida Unfair Insurance Trade Practices Act
Answer: Describes certain practices, penalties are provided for misrepresentation to insureds and claimants and business 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.
Q: Comprehensive Coverage
Answer: Covers all loss except collision or overturn. Standard deductible is $100 per car, $500 per occurrence applies to losses from theft, mischief, and vandalism.
Q: What is the minimum requirements for the Financial Responsibility Law ?
Answer: -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. If not satisfied operator’s driver’s license and the registrations of all owned vehicle’s are suspended.
Q: What are the basic activities in claims handling ?
Answer: -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.
Q: Claim
Answer: Is the assertion of an alleged legal right against an insurer, which carries with it a demand for appropriate relief.
Q: Claims Adjuster
Answer: One who is involved in the investigation, adjustment, negotiation and/or trial preparations of claims arising under insurance policies.
Q: Adjusting
Answer: Process of disposing of an insurance claim.
Q: Loan Receipt
Answer: A written statement given by the insured to the insurer acknowledging 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.
Q: Apportionment
Answer: 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.
Q: How to settle a claim for an Injured Minor ?
Answer: 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.
Q: What are the violations of the Unfair Trade Practices Act ?
Answer: -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.
Q: Section 624.155 of the Florida Statues provides ?
Answer: That any person who is damaged by certain insurer practices is granted a right to sue the insurer for damages.
Q: The Principle Of Utmost Good Faith
Answer: An insurance contract is based, places serious responsibilities on the claim adjuster with regard to conduct, work habits, and specific claims handling activities.
Q: What does 10/20/10 mean ?
Answer: 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.
Q: What is SR-22 ?
Answer: 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.
Q: What are the two things that need to happen for financial responsibility that did not exist at the time of the accident ?
Answer: -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.
Q: What are the main elements of the FL Law ?
Answer: -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)
Q: How many days does a Non-Resident’s vehicle physically present in FL have subject to the No-fault law ?
Answer: 90 days.
Q: What are the three penalties for non-compliance with the compulsory insurance requirements ?
Answer: -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.
Q: What does Extended PIP do ?
Answer: -Increases medical benefits from 80% to 100%.-Increases income loss from 60% to 80%.-Applies only to named insured and family members.
Q: What does additional PIP do ?
Answer: -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.
Q: Personal Auto Policy
Answer: Used to insure the automobile exposures of individuals and families.
Q: Business Auto Policy
Answer: Insurers the automobile exposures of Business.
Q: What are the kinds of autos owned by businesses and covered under a Business Auto Policy ?
Answer: -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.
Q: Garage Coverage Form
Answer: Used to insure businesses engaged in selling, servicing, repairing, parking or storing autos.
Q: Truckers Coverage Form
Answer: Used to insure businesses that are hired to transport goods for someone else.
Q: Business Auto Coverage Form
Answer: Used to insure the automobile exposures of all businesses other than garage or trucking businesses.
Q: What does Commercial General Liability contract includes ?
Answer: -Declarations-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.
Q: Declarations
Answer: 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.
Q: The policy states that if a company wishes to cancel, How many days must it give prior notice ?
Answer: 30 days.
Q: Nuclear Endorsement
Answer: Excludes all hazards related to nuclear energy.
Q: What is Coverage A ?
Answer: Bodily Injury and Property Damage Insuring Agreement.
Q: Bodily Injury(BI)
Answer: Physical harm and includes sickness or disease or death resulting there from.
Q: Property Damage(PD)
Answer: Physical injury to tangible property, including loss of use of that property.
Q: Occurrence
Answer: An accident, including. continues or repeated exposure to substantially the same general harmful conditions.
Q: Accident
Answer: A sudden, unexpected event.
Q: Coverage Territory
Answer: Is the U.S. and its territories or possessions , Puerto Rico and Canada, including international waters and airspace between these places.
Q: The Coverage Trigger
Answer: Determines how policy will respond.
Q: The Occurrence form
Answer: Applies to BI or PD which occurs during the policy period, regardless of any later time at which a claim is made.
Q: The Claims-Made form
Answer: 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.
Q: Retroactive Date
Answer: Establishes the original policy date for a serious of claims made policies.
Q: Intentionally Injury
Answer: Coverage excludes injury or damage which is expected or intended by the insured.
Q: liquor Liability
Answer: 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.
Q: Employee Injuries
Answer: Coverage excludes liabilities under a workers compensation or similar law or arising from injuries to employees of the insured.
Q: Pollution
Answer: There a basically no coverage for injury, damage or clean up costs caused by pullutants, subject to minor exceptions.
Q: What is Coverage B ?
Answer: Personal and Advertising Injury.
Q: What is Coverage C ?
Answer: Medical Payments.
Q: What are the General Liability Insurance Forms ?
Answer: -Owners and Contractors Protective Liability(OCP)Form.-Liquor Liability Coverage Form.-Products/Completed Operations Liability Coverage Form-Pollution Liability Coverage and Pollution Limited Form.
Q: Professional Liability Insurance Coverage
Answer: Covers liability arising from rendering of or failure to render professional services.
Q: Farm Liability Coverage Form
Answer: Provides coverage for BI or PD arising out of farming operations of personal activities.
Q: The Custom Farming Endorsement
Answer: Provides coverage for liability arising from the insureds performance of farming operations for another, for a charge under any contract or agreement.
Q: The Farm Employers Liability/Medical Payments Endorsement
Answer: Applies the basic Liability and Medical Payments coverages to injuries to farm employees, but not to employees eligible to receive workers compensation benefits.
Q: Employment Related Practices Liability
Answer: 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.
Q: Unauthorized Entity
Answer: 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.
Q: To be Authorized and transact business in FL what must you have ?
Answer: Certificate of Authority.
Q: General Lines Agent 2-20
Answer: Licensed to write property/casualty, surety, or health insurance.
Q: Customer Representative 4-40
Answer: Must be licensed, appointed by a General Lines Agent and may assist in transactions in the OFFICE ONLY.
Q: Limited Customer Representative 4-42
Answer: Must be licensed, appointed by a General Lines Agent and transact AUTO insurance in the OFFICE ONLY.
Q: All Lines Claims Adjuster 6-20
Answer: Investigates, Evaluates, and Negotiates Claims.
Q: A General Lines Adjuster is required to do what ?
Answer: Participate in 24 hrs of continuing education every 2 years.
Q: A licensee must notify the Department in writing in how many days for change of name, address, phone number or email ?
Answer: 30 days.
Q: Loss Sustained
Answer: Cover only losses that both occurred and were discovered during the policy period, or within one year of it’s expiration.
Q: Discovery
Answer: Any loss discovered during the policy period or within 60 days after it’s expiration is called regardless of when it occurred.
Q: Property Covered
Answer: 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.
Q: Safe Depository
Answer: Covers the named insureds legal liability if it is the safe depository for customers property. Perils covered include burglary, robbery, destruction on damage.
Q: Valuation
Answer: 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.
Q: Government Crime
Answer: A slightly different set of basic Crime Coverage Forms is tailored for insuring governmental entities.
Q: Guests’ Property
Answer: Covers the named insureds legal liability for guest’s property while in a safe deposit box or while the property is inside the premises or in the named insureds possession.
Q: Commercial Crime Forms
Answer: 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.
Q: Forgery Or Alteration
Answer: 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.
Q: Computer Fraud
Answer: 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.
Q: Extortion
Answer: 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.
Q: Clients Property
Answer: Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insureds client.
Q: Lesses of Safe Deposit Boxes
Answer: 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.
Q: Funds Transfer Fraud
Answer: Is designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine.
Q: Securities Deposited with Others
Answer: Covers theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a bank or stockbroker.
Q: The deductible
Answer: The dollar amount that the insured pays before the insurer is required to pay the remainder of the loss is known as?
Q: Replacement cost
Answer: Which loss settlement provides new for old?
Q: the claims adjuster’s role in the insurance industry includes
Answer: Give appropriate legal advice and write binding contracts
Q: following are examples of a peril
Answer: Lighting, Explosion and Fire
Q: The abandonment clause
Answer: The clause that prohibits the insured from dumping damaged property on the insurance company and demanding to be paid in full is?
Q: Liberalization
Answer: When a policy change results in broadened coverage with no additional premium, the insured automatically receives the benefit under the principle of?
Q: Risk
Answer: The chance of financial loss is known as?
Q: Percentage
Answer: Hurricane insurance in coastal areas in Florida is written subject to which of the following deductibles?
Q: The principle of proximate cause
Answer: 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?
Q: characteristics of a contract
Answer: Consideration must be given to at least one party
Q: Primary
Answer: When two or more policies apply to the same loss, the one that pays first is called?
Q: Mortgagee Clause
Answer: The clause that protects the lender in a real property policy is the?
Q: Indemnity
Answer: The concept that one should not profit from the payment provided by an insurance policy is known as?
Q: Property or first-party insurance
Answer: Payment the insurance company makes directly to the insured is?
Q: Written
Answer: To be considered an insurance contract, a policy must be?
Q: Subrogation
Answer: When the insured transfers his/her rights to collect for damages to the insurer, it is known as?
Q: The insured
Answer: If an insurance policy is unclear or ambiguous, in whose favor does the policy respond?
Q: Insurable interest
Answer: A partial owner of a building cannot receive full value for the building in the event of a loss because of?
Q: Comparative negligence
Answer: Reduces the insured’s damages by the degree of negligence
Q: the following are part of an insurance policy
Answer: Exclusions, Declarations and Endorsementd
Q: ACV
Answer: replacement cost minus depreciation
Q: 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.
Answer: The Florida Valued Policy Law requires the insurer to pay $200,000
Q: describe a franchise deductible
Answer: No payment is made until the loss equals or exceeds the amount of the deductible and then the loss is paid in full
Q: All of the following are characteristics of an insurance contract EXCEPT? Personal, Private, Conditional, Adhesion?
Answer: Private
Q: If a claimant is represented by an attorney, the adjuster should?
Answer: Only meet with the client when the attorney is present
Q: Adjusters should advise claimants on?
Answer: claims information
Q: An adjuster is required to notify a claimant when a claim is denied. The notification must be?
Answer: Written
Q: The term ethics refers to?
Answer: service to others, personal respect and proper mode of conduct
Q: When an adjuster deals with a claimant who is not a policyholder, this claim is known as an?
Answer: third party claim
Q: The successful adjuster/negotiator should understand that communication includes all of the following EXCEPT?Select one:A. Verbal and non-verbal messagesB. QuestioningC. ListeningD. Decision-making
Answer: Decision-making
Q: Which of the following is not a duty of the claims adjuster?Select one:A. InvestigatingB. EvaluatingC. NegotiatingD. Counseling
Answer: Counseling
Q: The adjuster’s duty to the insurer is best described as?Select one:A. FriendlyB. FactualC. FunD. Fiduciary
Answer: Fiduciary
Q: Errors and Omissions claims are a result of?Select one:A. unethical behaviorB. lack of knowledge or informationC. Both unethical behavior and lack of knowledge or information are correctD. Neither unethical behavior and lack of knowledge or information are correct
Answer: Both unethical behavior and lack of knowledge or information are correct
Q: Unethical behavior affects?Select one:A. The claimantB. The adjusterC. All of the aboveD. The entire company
Answer: All of the above
Q: All of the following are components of negotiating EXCEPT?Select one:A. The issue should be negotiableB. There must be an exchange of value for valueC. The parties should trust each otherD. The claimant must be satisfied
Answer: The claimant must be satisfied
Q: The Civil Remedies Provision of the Insurance Code states that adjusters should not?Select one:A. Handle claims in a prompt mannerB. Accompany claims payments with statements explaining coverageC. Settle claims in good faithD. Try to influence settlements
Answer: Try to influence settlements
Q: 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. 10/20/10B. 20/40/10C. No coverageD. 20/40/20
Answer: 20/40/10
Q: 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 insuredB. After the case has been resolvedC. When the policy limit is exhaustedD. At the policy’s expiration
Answer: When the policy limit is exhausted
Q: The Florida Financial Responsibility Law is triggered by?Select one:A. Registration of the vehicleB. Purchase of the vehicleC. An accident involving bodily injury or property damageD. Purchase of an auto policy
Answer: An accident involving bodily injury or property damage
Q: The insured is an owner and is insured for PIP. She is injured in an accident 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. $11,200B. $12,400C. $9,600D. $10,000
Answer: $10,000
Q: Trucker insurance premiums are based on all EXCEPT?Select one:A. RadiusB. Age of the driverC. Type of businessD. Territory garaged
Answer: Age of the driver
Q: 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 coverageB. Extended Non-owned Liability coverageC. Drive Away Liability coverageD. False Pretense coverage
Answer: Extended Non-owned Liability coverage
Q: 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?
Answer: 10,800.00
Q: 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 FloridaB. In an accident while riding his motorcycleC. Struck as a pedestrian in GeorgiaD. In an accident while riding as a passenger in a friend’s car in Florida
Answer: In an accident while riding as a passenger in a friend’s car in Florida
Q: The insured bought a new car with a Mechanical Breakdown Policy. When the odometer reaches 40,000 the car has a serious breakdown involving the transmission. How does the Mechanical Breakdown Policy respond?Select one:A. No coverage because the policy expiredB. No coverage because a transmission is not coveredC. ACV coverage will applyD. Replacement cost coverage will apply
Answer: No coverage because the policy expired
Q: 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 addedB. Only the liability of the PAP extends to the trailerC. His auto is insured, but not the borrowed trailerD. His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer
Answer: His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer
Q: 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. $30,000B. $10,000C. $50,000D. $20,000
Answer: $30,000
Q: 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. $7,200B. $8,200C. $4,200D. $5,200
Answer: $7,200
Q: 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. $300,000C. $100,000D. $200,000
Answer: $100,000
Q: 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. $51,500B. $37,000C. $40,000D. $50,000
Answer: $51,500
Q: 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. $250B. No coverageC. $500D. $650
Answer: $650
Q: Which of the following is covered under PAP liability?Select one:A. Intentional damageB. Permissive use of insured’s automobileC. Damage to property owned by the insuredD. Injury to an employee in the course of employment
Answer: Permissive use of insured’s automobile
Q: 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 CompensationB. His PIP insuranceC. His homeowner insuranceD. His health insurance
Answer: His PIP insurance
Q: All of the following UM options are available to an insured, EXCEPT?Select one:A. May purchase UM coverage less than liability limitsB. May purchase UM coverage more than liability limitsC. May reject UM coverage in writingD. May elect non-stacked UM coverage in writing
Answer: May purchase UM coverage more than liability limits
Q: The Truckers form that provides liability coverage for damage to non-owned trailers is called?Select one:A. Interchange coverageB. Commercial Trailer coverageC. Trailer Interchange coverageD. Trailer coverage
Answer: Trailer Interchange coverage
Q: Hail damage to an auto is an example of?Select one:A. An exclusion to Part A\-LiabilityB. An exclusion to Part D-Physical DamageC. Other than collisionD. Collision
Answer: Other than collision
Q: 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. $6,000B. $5,000C. $15,000D. $10,000
Answer: $6,000
Q: 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 OwnedB. Driver Other CarC. Named Non OwnedD. Extended PIP
Answer: Named Non Owned
Q: Uninsured Motorists coverage is used to cover the insured for?Select one:A. Bodily injury onlyB. Bodily injury and property damageC. Medical paymentsD. Liability
Answer: Bodily injury only
Q: 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 ExemptionB. Betty may sue Sam and Fred for $5,000C. Betty must use her own PIP to pay her medical billsD. Sam may recover any damages from Fred’s PIP
Answer: Betty must use her own PIP to pay her medical bills
Q: 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. CollisionB. Both A and BC. Other than collisionD. Neither A or B
Answer: Collision
Q: Which of the following is not eligible for a homeowners policy?Select one:A. Tom who owns the house he rents to his neighborB. Joe who lives is a garage apartmentC. A husband and wife who own a vacation home in GeorgiaD. Betty who rent a condominium unit
Answer: Tom who owns the house he rents to his neighbor
Q: Homeowner policies are rated on all of the following, EXCEPT:Select one:A. Location of the dwellingB. Age of the homeownerC. Fire protection availableD. Construction of the dwelling
Answer: Age of the homeowner
Q: 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% coinsuranceB. Replacement CostC. ACVD. Valued Policy
Answer: Replacement Cost
Q: Under a Dwelling Policy, all of the following are eligible, EXCEPT:Select one:A. A rental apartment in a commercial buildingB. A 1-6 family dwellingC. A two-family dwelling owned by a corporationD. A mobile home
Answer: A 1-6 family dwelling
Q: When a community applies for flood coverage, until they are approved they are under:Select one:A. The Regular ProgramB. The Special ProgramC. The Emergency ProgramD. The Flood Program
Answer: The Emergency Program
Q: 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. ConditionsB. AdhesionC. IndemnityD. A personal nature
Answer: A personal nature
Q: All of the following are eligible for a Homeowner Policy, EXCEPT:Select one:A. Renters who maintain resident in any type of buildingB. Dwellings owned by a corporationC. Owner-occupants of 1-4 family dwellingsD. Condominium unit owners
Answer: Dwellings owned by a corporation
Q: Outdoor equipment used to service the premises is covered under:Select one:A. Coverage CB. Coverage AC. Coverage BD. Coverage D
Answer: Coverage C
Q: 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. SubrogationB. LiberalizationC. AssignmentD. Coinsurance
Answer: Liberalization
Q: The coverage territory for Personal Inland Marine Insurance (PAF) is:Select one:A. Whatever is specified in the policyB. WorldwideC. United StatesD. U.S., Canada, and U.S. territories
Answer: Worldwide
Q: 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 damagedB. All of these answers are correctC. The insured must file the claim within 10 daysD. The insured must carry insurance of at least 80% of the cost to replace the dwelling
Answer: The insured must carry insurance of at least 80% of the cost to replace the dwelling
Q: Which HO form covers a condo owner?Select one:A. HO-3B. HO-2C. HO-6D. HO-4
Answer: HO-6
Q: 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. $44,000B. $40,000C. $46,000D. There is no coverage
Answer: $44,000
Q: 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 HOB. Tommy’s autoC. Chris’ autoD. Chris’ HO
Answer: Chris’ HO
Q: 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 dieB. A student away at school has his golf clubs stolenC. An insured’s luggage is stolen from his hotel roomD. A weekend guest loses his hearing aid during a fire
Answer: An aquarium is knocked over and the fish die
Q: The clause that protects the lender in a real property policy is the:Select one:A. Coinsurance ClauseB. Loss Payee ClauseC. Appraiser ClauseD. Mortgagee Clause
Answer: Mortgagee Clause
Q: Under an HO3 policy, if Coverage A is $250,000, Coverage B is:Select one:A. $10,000B. None of the aboveC. $20,000D. $25,000
Answer: $25,000
Q: An HO-4 Policy is designed for a:Select one:A. Condo ownerB. Home ownerC. All of the aboveD. Renter
Answer: Renter
Q: What is the deductible for a Personal Articles Floater (PAF)?Select one:A. $250B. $100C. $500D. $0
Answer: $0
Q: 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. $10,000B. No coverageC. $25,000D. $20,000
Answer: $20,000
Q: 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
Answer: 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.
Q: Which of the following are available as HO hurricane deductibles?Select one:A. All of the aboveB. 2%C. 5%D. $500
Answer: All of the above
Q: If flooding is confined to one area, the flood water must cover:Select one:A. The buildingB. Over three acres of landC. Over two acres of landD. Over an acre of land
Answer: Over two acres of land
Q: A house under construction is eligible for a Homeowner Policy if:Select one:A. None of these answers are correctB. The builder doesn?t qualify for a Commercial Property PolicyC. The builder is licensedD. The insured will be the owner-occupant
Answer: D. The insured will be the owner-occupant
Q: If an Umbrella Policy serves as primary coverage, what part of the policy allows the insurer to apply a deductible?Select one:A. The Stand Alone FormB. The Follow FormC. The Self-insured RetentionD. None of these answers are correct
Answer: The Self-insured Retention
Q: The provision in the Builders Risk Coverage Form that penalizes the insured for underinsurance is called:Select one:A. CoinsuranceB. Full ReportingC. Agreed ValueD. Adequate Insurance Clause
Answer: Adequate Insurance Clause
Q: The insured has a building that has been vacant for 75 days. Which of the following are covered?Select one:A. TheftB. Glass breakageC. Weight of ice and snowD. Vandalism
Answer: Weight of ice and snow
Q: The insured owns a fireworks factory, which is especially busy during the months of June and July. Which endorsement should he purchase to cover his inventory during these months?Select one:A. Building OrdinanceB. Value ReportingC. Peak SeasonD. Inflation Guard
Answer: Peak Season
Q: The Builders Risk coverage form covers:Select one:A. ContractorsB. Buildings under constructionC. InvestorsD. Builders
Answer: Buildings under construction
Q: The Builders Risk Coverage Form assumes which coinsurance provision:Select one:A. 90%B. 100%C. 80%D. 70%
Answer: . 100%
Q: In the event that the Condominium Association Coverage form and the Condominium Unit Owners Coverage form both cover a loss, which of the following is true?Select one:A. Both forms pay equallyB. The Unit Owner form is primary and the Association form is excess.C. The two forms are proratedD. The Association form is primary and the Unit Owner form is excess
Answer: The Association form is primary and the Unit Owner form is excess
Q: Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called?Select one:A. A monocline policyB. A valid policyC. A combination policyD. A package policy
Answer: A package policy
Q: Under the Business and Personal Property Coverage Form the provision for suspension for certain perils applies after:Select one:A. 60 days vacancyB. 30 days vacancyC. 90 days vacancyD. 120 days vacancy
Answer: 60 days vacancy
Q: Under Business Income Coverage, the period of restoration begins:Select one:A. 72 hours after reporting the lossB. 72 hours after the date of direct damageC. 48 hours after the date of direct damageD. 48 hours after reporting the loss
Answer: 72 hours after the date of direct damage
Q: All of the following are included in the definition of a building, EXCEPT:Select one:A. Floor coveringsB. Wall treatments (wallpaper)C. Temporary structures on or within 100 feet of the premisesD. Copy machines
Answer: Copy machines
Q: Three types of property are covered under the Building and Personal Property coverage form. They are:Select one:A. Building; Business Personal Property; Personal Property of OthersB. Building; Your Personal Property; Detached structuresC. Building; Personal Property; Personal Property of OthersD. Building; Your Business Personal Property; Your Personal Property
Answer: Building; Business Personal Property; Personal Property of Others
Q: When covered property is damaged, the cost for temporary repairs and the cost to expedite permanent repairs or replacement is covered under:Select one:A. Defense CostsB. Supplementary PaymentsC. Automatic CoverageD. Expediting Expenses
Answer: Expediting Expenses
Q: A florist wanted coverage on business contents, which vary in amount over the course of a year. Which form best fits this situation?Select one:A. Peak Season EndorsementB. None of the aboveC. Value Reporting EndorsementD. An automatic increase in insurance
Answer: Value Reporting Endorsement
Q: Under the Business and Personal Property Coverage Form, all of the following are additional coverages EXCEPT:Select one:A. Cost to hire a night watchmanB. Cost to preserve propertyC. Debris RemovalD. Fire Department Service Charge
Answer: Cost to hire a night watchman
Q: Which exposures are covered by the Leaseholder Interest Coverage Form?Select one:A. All of the aboveB. A loss of any unused prepaid rentC. An unused part of tenant improvementsD. A tenant’s loss of a favorable lease/sub-lease
Answer: All of the above
Q: A claim is made under a CGL for a slip and fall injury. Two years later the injured person comes back saying the injury has flared-up. Is the reoccurrence covered under CGL Medical Payments?Select one:A. Yes, expenses are covered because of proximate cause.B. No, slip and falls are not covered under Medical Payment coverageC. Yes, expenses are covered within three years of the injury.D. No, expenses are covered within one year of the injury.
Answer: No, expenses are covered within one year of the injury.
Q: Acme Toys has a CGL policy. They hold a party and one of the guests has a little too much to drink. If the guest injures someone and the injured party sues the Acme Toys, the CGL policy:Select one:A. Will cover if the insure has Liquor Liability CoverageB. Will not coverC. Will cover if the insured has Legal Liability CoverageD. Will cover the claim
Answer: Will cover the claim
Q: An employee is hurt on the insured’s premises. Three months later the employee dies. Are the employees funeral expenses covered under the company’s CGL Medical Payments?Select one:A. Yes, the claim was made within one year time periodB. No, the claim was filed too lateC. Yes, the employee is automatically coveredD. No, employees are not covered for Med Pay
Answer: No, employees are not covered for Med Pay
Q: How long does the insured have to request the “Supplemental Extended Reporting Period” after the expiration of the claims-made CGL policy?Select one:A. 90 daysB. 30 daysC. 180 daysD. 60 days
Answer: 60 days
Q: The retroactive date under the CGL established the earliest date a claim will be paid by the insurance company under the:Select one:A. Claims-Made formB. Occurrence formC. Both the Occurrence and Claims-Made formD. Products and Completed Operations form
Answer: Claims-Made form
Q: hysicians, Surgeons and Dentists Insurance will cover:Select one:A. Blood BanksB. VeterinariansC. All of theseD. Optometrists
Answer: All of these
Q: The basic amount of Medical Payment coverage under a CGL policy is:Select one:A. $2,000B. $3,000C. $1,000D. $5,000
Answer: $5,000
Q: Tom purchases a CGL – Occurrence form with an effective date of 1-1-03. He purchases a claims-made CGL with an effective date of 1-1-04. An injury from 8-1-03 is filed in 2005 when a claim is made. Which policy covers the injury?Select one:A. 1-1-03 policyB. 1-1-04 policyC. No coverageD. 1-1-05 policy
Answer: 1-1-03 policy
Q: All of the following are covered under Supplemental Payments in a CGL EXCEPT:Select one:A. Expenses incurred at the company’s requestB. Lost wages up to $100/dayC. Bails bonds up to $250D. Interest on judgments
Answer: Lost wages up to $100/day
Q: Which of the following is not a covered territory for a CGL policy?Select one:A. CanadaB. United StatesC. Puerto RicoD. Mexico
Answer: Mexico
Q: Mr. Smith buys a CGL claims-made policy on 1-1-04 with a retroactive date of the policy’s inception of 1-1-04. He buys another CGL claims-made policy on 1-1-05 with a retroactive date of 1-1-05. An accident occurs on 7-1-04 and the claimant files this injury on 9-1-05. Which policy covers?Select one:A. 1-1-04 claims-made policyB. 1-1-05 claims made policyC. 1-1-04 is primary and 1-1-05 policy is excessD. Neither policy covers
Answer: Neither policy covers
Q: What is unique about lawyer’s professional liability insurance?Select one:A. It covers claims that existed before the policy was effective.B. It deducts claims expenses first and the balance is payable for the claim.C. It covers lawyers for fraudulent activities.D. It covers only lawyers in group practice.
Answer: It deducts claims expenses first and the balance is payable for the claim.
Q: The three parties to a bond are:Select one:A. Surety, principal and cosignerB. Surety, insured and insurerC. Surety, obligee and indemnitorD. Surety, obligee and principal
Answer: Surety, obligee and principal
Q: Safe Burglary is defined as:Select one:A. The taking of property by someone who has caused bodily harmB. The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entryC. The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry and caused bodily harmD. Any act of stealing
Answer: The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry
Q: All of the following are penalties for non-compliance with Workers Compensation laws, EXCEPT:Select one:A. The employer may be charged a $1000 fine, plus $100 for each day of non-complianceB. The employer may be charged with a second-degree misdemeanorC. The employer’s business property may be seizedD. The employer’s business may be closed
Answer: The employer’s business property may be seized
Q: Under Workers Compensation, what is the waiting period for disability benefits to begin?Select one:A. 30 daysB. 7 daysC. 14 daysD. 21 days
Answer: 7 days
Q: A fourth party to a bond is called a:Select one:A. SuretyB. PrincipalC. IndemnitorD. Obligee
Answer: Indemnitor
Q: Bill sent a cashier’s check through the mail, but it never arrived at the destination of the recipient. Under which bond can the cashier’s check be replaced?Select one:A. Fiduciary bondB. Blue Sky bondC. Lost Instrument bondD. Payment bond
Answer: Lost Instrument bond
Q: A Florida employee was sent Boston to work for one week. While in Boston, they were injured on the job. How is the injury covered under WC benefits?Select one:A. The injury is covered under Florida’s WC lawB. There is no coverage under either state lawC. The injury is covered under Massachusetts WC lawD. None of the above
Answer: The injury is covered under Florida’s WC law
Q: Contract bonds include all of the following, EXCEPT:Select one:A. Permit bondB. Performance bondC. Bid bondD. Maintenance bond
Answer: Permit bond
Q: In the non-construction industry, all of the following employments are exempt from Workers Compensation EXCEPT:Select one:A. Pro athletesB. Casual labor completed in 30 days for $750C. Labor under sentence of a court orderD. Domestic servants in private homes
Answer: Casual labor completed in 30 days for $750
Q: Which bond protects the consumer against misrepresentation of a securities dealer?Select one:A. Blue Sky bondB. Permit bondC. Payment bondD. Lost Instrument bond
Answer: Blue Sky bond
Q: Under Part One of the WC policy, what is the limit for recovery of medical bills incurred by an employee as a result of work related injuries?Select one:A. $100, 000B. $150,000C. No limitD. $250,000
Answer: No limit
Q: An employee is injured on the job and is out of work for 10 days. How many days’ wages can this employee recover?Select one:A. No recoveryB. 5 daysC. 3 daysD. 10 days
Answer: 3 days
Q: Am employee of ABC Financing altered and cashed a check for $2000. The loss is payable under which insuring agreement?Select one:A. No coverageB. Robbery Inside the PremisesC. Forgery or AlterationD. Employee Theft
Answer: Employee Theft
Q: Bill was employed by Jane’s Flower Shoppe for two days when he receives a work related injury. Bill misses 14 days of work. How long does Bill have to wait before he can begin receiving WC benefits?Select one:A. 14 daysB. He wasn’t employed long enough to have WC coverageC. 21 daysD. 7 days
Answer: 7 days
Q: On the way to the bank to make a deposit, an employee loses the bank bag. How is this money covered?Select one:A. Money and SecuritiesB. RobberyC. BurglaryD. Employee Theft
Answer: Money and Securities
Q: Failure to comply with the Workers Compensation Law is:Select one:A. A third-degree felonyB. A second-degree felonyC. A first-degree misdemeanorD. A first-degree felony
Answer: A third-degree felony
Q: Employees of ABC Manufacturing are required to wear steel-toed shoes when they are in the factory. An employee who injures their foot because they are not wearing safety shoes while in the plant would have their benefits reduced by:Select one:A. 20%B. 10%C. 25%D. 15%
Answer: 25%
Q: What is the amount allotted for funeral expenses under Workers Compensation benefits?Select one:A. $2,500B. $10,000C. $5,000D. $7,500
Answer: $7,500
Q: What is the maximum death benefit payable to eligible dependents under WC?Select one:A. $250,000B. $200,000C. $150,000D. $100,000
Answer: $150,000
Q: Bond underwriting usually looks at the three C’s which include all of the following, EXCEPT:Select one:A. ContingencyB. Collateral/CapitalC. CapabilityD. Character
Answer: Contingency
Q: Which bond guarantees performance in conformity with the law?Select one:A. A Conservation BondB. A Blue Sky BondC. A License BondD. A Franchise Bond
Answer: A License Bond
Q: Joe is off the job for 27 days due to a work related injury. Joe can receive WC benefits for how many days?Select one:A. 7 daysB. 14 daysC. 21 daysD. 27 days
Answer: 27 days
Q: Workers Compensation in Florida is regulated by:Select one:A. The Department of LaborB. The Department of Labor SecurityC. The Department of Labor & Employment SecurityD. The Division of Workers’ Compensation of the Department of Financial Services
Answer: The Division of Workers’ Compensation of the Department of Financial Services
Q: Securities were purchased for $150,000. They were stolen and sold for $175,000. On the day the theft was reported the securities were valued at $162,000. How much would be paid?Select one:A. $150,000B. No coverageC. $175,000D. Conditionally renewableE. $162,000
Answer: $162,000
Q: How many people can a private employment hire before they are required to purchase WC?Select one:A. 1B. 4C. 12D. 8
Answer: 4
Q: Jettison is defined as:Select one:A. Fraud by the ship’s master or crewB. Throwing cargo overboard to save the shipC. Taking the insured property by forceD. Winds, waves, collision or sinking
Answer: Throwing cargo overboard to save the ship
Q: Which Commercial Inland Marine policy protects those who ship and receive goods on an annual basis?Select one:A. Trip TransitB. Motor Truck CargoC. Annual TransitD. Trailer Interchange
Answer: Annual Transit
Q: All of the following are among the broad classes of Ocean Marine Insurance, EXCEPT:Select one:A. CargoB. BarratryC. FreightD. Hull
Answer: Barratry
Q: An insured wants to fly to Canada and then down to Mexico. Will he have coverage available for this trip?Select one:A. He cannot go outside the U.S.B. There is coverage in Canada, but not in MexicoC. There is coverage in Canada, and 100 miles into MexicoD. There is coverage in Mexico, but not in Canada
Answer: There is coverage in Canada, and 100 miles into Mexico
Q: Admitted Liability is:Select one:A. Requires a legal action for injuriesB. None of the aboveC. Applicable to passengers carried for hireD. Not applicable to passengers carried for hire
Answer: Not applicable to passengers carried for hire
Q: The minimum basic liability limit for a Boiler and Machinery policy is:Select one:A. $500,000B. $1,000,000C. $250,000D. $100,000
Answer: $500,000
Q: he Valuation Clause in Boiler and Machinery coverage provides for replacement cost if:Select one:A. Property is repaired or replaced within 18 monthsB. Property is repaired or replaced within 24 monthsC. Property is repaired or replaced within 36 monthsD. Property is repaired or replaced within 48 months
Answer: Property is repaired or replaced within 18 months
Q: Which Commercial Inland Marine policy would cover those who ship and receive goods on a single trip basis?Select one:A. Motor Truck CargoB. Trip TransitC. Trailer InterchangeD. Annual Transit
Answer: Trip Transit
Q: One category of Commercial Inland Marine insurance is “Instrumentalities of Transportation and Communication. All of the following are covered under this form, EXCEPT:Select one:A. Tractor trailer trucksB. PipelinesC. Radio and TV towersD. Bridges and tunnels
Answer: Tractor trailer trucks
Q: Covered losses in a Boiler and Machinery Policy include:Select one:A. Explosion, overheating, burning and crackingB. Leaking at the valve, fitting or shaftC. The functioning of a safety deviceD. Depletion, deterioration and wear and tear
Answer: Explosion, overheating, burning and cracking
Q: The master of the ship voluntarily sacrifices the ship’s cargo to save the ship. If the loss is settled with each interest paying a pro-rata share of the loss, it is known as:Select one:A. Sue and LaborB. Particular AverageC. General AverageD. Demurrage
Answer: General Average
Q: Perils of the Sea includes all of the following, EXCEPT:Select one:A. WindB. Collision and sinkingC. FireD. Waves
Answer: Fire
Q: Under Boiler and Machinery insurance, an “accident” is defined as:Select one:A. Occurring within the policy period of an occurrence policyB. A continuous and repeated exposure to the same conditionC. A sudden and accidental breakdown of a partD. A one-time occurrence
Answer: A sudden and accidental breakdown of a part
Q: Underwriting an aircraft hull policy includes all of the following considerations, EXCEPT:Select one:A. Pilot’s ageB. Age and condition of the planeC. Type of planeD. Size of the plane
Answer: Pilot’s age
Q: The coverage for damage to an aircraft under the care, custody and control of the insured while the plane is in storage is:Select one:A. Hangerkeepers LiabilityB. Extra Expense EndorsementC. Admitted Aircraft LiabilityD. Storage Endorsement
Answer: Hangerkeepers Liability
Q: Which of the following describes a Guaranteed Renewable Policy?Select one:A. The insurer is required to renew to a stated age with no increase in premiumsB. None of the aboveC. The insurer is required to renew to a stated age, but may increase premiumD. The insurer cannot cancel during the policy term, but reserves the right to non-renew
Answer: The insurer is required to renew to a stated age, but may increase premium
Q: Which best describes health insurance?Select one:A. Disability InsuranceB. Property insuranceC. Liability insuranceD. None of the above
Answer: Disability Insurance
Q: All of the following are true concerning Joint Underwriting Associations, EXCEPT:Select one:A. Policyholders must be unable to purchase insurance on the open marketB. Citizens replaced FRP&CJUA and Florida WindstormC. It is not possible to purchase Homeowner policies under JUA, only Dwelling policiesD. JUA operations are overseen by a Board of Governors
Answer: It is not possible to purchase Homeowner policies under JUA, only Dwelling policies
Q: Health insurance protects against all of the following, EXCEPT:Select one:A. Bodily injuryB. DisablementC. Death by accidentD. Injury of the job
Answer: Injury of the job
Q: A selected group of hospitals and doctors in a given area who have joined together to reduce medical costs is:Select one:A. A Professional Practitioner GroupB. An HMOC. A Health Managed HospitalD. A PPO
Answer: A PPO
Q: A homeowner could not find coverage on the open market and looked to the residual market for coverage. What Joint Underwriting Association would handle this risk?Select one:A. CitizensB. The Florida Residential Property and Casualty Joint Underwriting AssociationC. The Florida Workers Compensation Joint Underwriting AssociationD. The Florida Automobile Joint Underwriting Association
Answer: Citizens
Q: Joe pays his health insurance premium on a monthly basis. If he forgets to pay this month’s premium, how long will the policy remain in force after the premium date?Select one:A. 10 daysB. It cancels immediatelyC. 31 daysD. 7 days
Answer: 10 days
Q: Under Medicare Supplement insurance, the maximum waiting period before coverage applies to pre-existing conditions is:Select one:A. 3 monthsB. 6 monthsC. 12 monthsD. 9 months
Answer: 6 months
Q: An organization that provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium is:Select one:A. A Professional Practitioner GroupB. A PPOC. A Health Managed HospitalD. An HMO
Answer: An HMO
Q: Which is the largest limit available for commercial vehicles in the residual market?Select one:A. Any higher limits required by any lawB. 100/300/50C. 250/500/250D. 250/500/100
Answer: Any higher limits required by any law
Q: Which of the following is not a requirement to qualify for the FWCJUA?Select one:A. Must have been unable to obtain coverage from at least three other carriersB. Must have been unable to obtain coverage from at least two other carriersC. Must not be indebted for any previous unpaid WC premiumsD. Must be an employer
Answer: Must have been unable to obtain coverage from at least three other carriers
Q: The Residual Market that is a source for persons who are unable to purchase auto insurance through normal channels is:Select one:A. FRPCJUAB. FWUAC. FWCJUAD. FAJUA
Answer: FAJUA
Q: If a health insurance policy cannot be cancelled and can be renewed at the option of the insured to a stated age with no premium increases, this policy is:Select one:A. Guaranteed renewableB. Optionally renewableC. NoncancelableD. Conditionally renewable
Answer: Noncancelable
Q: ane has a health insurance policy that prevents cancellation during the policy period, but reserves the right of the insurer to non-renew the policy once it expires. This is an example of:Select one:A. Conditionally renewableB. NoncancelableC. Optionally renewableD. Guaranteed renewable
Answer: Optionally renewable
Q: Joe wrote a policy through the Florida Automobile Joint Underwriting Association, and the company issued the policy. What is the company issuing the policy called?Select one:A. A non-standard carrierB. A non-servicing carrierC. A servicing carrierD. A standard carrier
Answer: A servicing carrier
Q: How is funding determined for Tier Three employers?Select one:A. It is based on an assessment of Tier Three participantsB. None of the aboveC. It is based on an assessment of Tier One participantsD. It is based on an assessment of Tier Two participants
Answer: It is based on an assessment of Tier Three participants
Q: Bob has a basic health insurance policy. He has a covered accident in which he suffers an injury to his mouth that requires dental treatment. Which of the following is true?Select one:A. Dental expenses will be paid after the first $500B. Dental expenses will not be paidC. Dental expenses will be paid after the first $100D. Dental expenses will be paid
Answer: Dental expenses will be paid
Q: Which is not a requirement for licensure as an adjuster?Select one:A. Be a bonafied resident of FloridaB. Be appointed by a companyC. Be appointed by an office managerD. Take an approved course and pass a state exam
Answer: e appointed by a company
Q: If an adjuster terminates their insurance appointment, how long from the date of the termination do they have to reactivate their appointment?Select one:A. 5 yearsB. 4 yearsC. 3 yearsD. 1 year
Answer: 4 years
Q: Which of the following is not one of the basic claims activities of the adjuster?Select one:A. Defining claimsB. Negotiating claimsC. Evaluating claimsD. Investigating claims
Answer: Defining claims
Q: Which of the following is not one of the duties of FLDFS?Select one:A. To investigate charges of unethical conduct of adjustersB. To set rates for various company productsC. To license adjustersD. To supervise the claims activity of adjusters
Answer: To set rates for various company products
Q: Which of the following would not result in license suspension?Select one:A. Selling a product for which one is not licensedB. Calling another agent or adjuster a crookC. Representing a policy truthfullyD. Making false entries on an insurance application
Answer: Representing a policy truthfully
Q: A company had its certificate of authority revoked because of bad sales practices. This type of company is known as:Select one:A. An admitted companyB. An unedited companyC. An unauthorized companyD. An authorized company
Answer: An unauthorized company
Q: Which is not a fiduciary responsibility of a claims adjuster?Select one:A. Maintain loyalty to the companyB. Reveal all underwriting facts to the underwriterC. Withhold pertinent information from the companyD. Properly account for all monies
Answer: Withhold pertinent information from the company
Q: What is a foreign insurance company?Select one:A. A company that is not an alien companyB. A company chartered outside the state of FloridaC. A company chartered inside the state of FloridaD. A company chartered in another country
Answer: A company chartered outside the state of Florida
Q: The continuing education requirement to maintain an adjuster’s license in Florida is:Select one:A. Five hours every two yearsB. Twenty four hours every two yearsC. Ten hours every two yearsD. Not required for any adjuster license
Answer: Twenty four hours every two years
Q: What is the minimum age that a person can obtain an adjuster’s insurance license?Select one:A. 23B. 21C. 25D. 18
Answer: 18
Q: What is the function of the insurance department?Select one:A. To pass insurance lawsB. To administer insurance lawsC. To negotiate ethical standards within the insurance industryD. To act as an advocate for agents and adjusters
Answer: To administer insurance laws
Q: Who does the adjuster represent when they are working on a claim?Select one:A. The companyB. The insurance agentC. The customerD. The State of Florida
Answer: The company
Q: A company was incorporated in Massachusetts and has their home office in that state. What type of company is this when they do business in Florida?Select one:A. They are an unauthorized companyB. They are a domestic companyC. They are a foreign companyD. They are an alien company
Answer: They are a foreign company
Q: An adjuster moved from one city on Florida to another. What length of time does she have to notify FLDFS of the address change?Select one:A. 10 daysB. 60 daysC. 30 daysD. 45 days
Answer: 30 days
Q: Representing to an applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of a motor vehicle insurance when such a coverage or product is not required by law is known as:Select one:A. ChurningB. RebatingC. TwistingD. Sliding
Answer: Sliding