Prepare for your 440 insurance adjuster license exam with these practice questions and answers. This guide covers claims adjusting, regulations, and professional ethics.
Q: Transferring the risk to an insurance company is known as what?
Answer: Insurance
Q: When the insured request to have the company change a condition or provision in an insurance policy the document attach to the policy is referred to as what?
Answer: Endorsement
Q: George and Sandy only home which was damaged by fire who has insurable interest
Answer: George and Sandy
Q: What is the most common loss settlement valuation in the property policies?
Answer: Actual cash value
Q: The insurance company pays the insured for damages that should have been collected from the app fault party now the insured right to seek damages from the airport party are transferred to his insurance company what best describes this concept
Answer: Subrogation
Q: PIP
Answer: Personal Injury Protection
Q: Pip coverage is
Answer: Primary
Q: Tort Immunity
Answer: Relief for persons who have suffered harm from the wrongful acts of others
Q: Extend PIP
Answer: To fill percentage gaps
Q: Additional PIP increases limits to…
Answer: Increase dollar limit only 10,000 to 25,000 or more
Q: Under Florida law what are the benefits payable for medical expenses
Answer: 80%
Q: Under Florida law what are the benefits payable for lost wages
Answer: Up to 60%
Q: Death benefits
Answer: 5,000
Q: Deductibles are how much
Answer: $250,$500,$1000
Q: Cease to defend
Answer: Limits exhausted by payment
Q: Before an owner of a vehicle can’t obtain a license plate and tag registration the owner must purchase PIP coverage in property damage liability coverage in the amount of
Answer: $10,000
Q: When will the individuals be requested to prove they are financially capable three different times
Answer: At the time of an accident ( 2 )a major traffic violation and (3) an insurance vehicle is used in a felony
Q: The minimum liability limits bar
Answer: 10/20/10
Q: Which of the following does not trigger financial responsibility
Answer: An accident with a small amount of property damage
Q: FR-44 is for
Answer: People who are convicted of dui or dwi
Q: If convicted of a dui or dwi insured must
Answer: Piggy 100% of the premium in advance also carry 100/300/50 liability insurance coverage for 3 years
Q: How long with the insured receive medical care when qualifying under medical payments
Answer: Medical Expenses and funeral services three years from date of accident regardless of fault
Q: Jon is walking across the street to go to the county fair and he is trucks as a pedestrian buy a motorcycle which of the following provides coverage?
Answer: Medical payments
Q: There is no deductible on
Answer: Windshield damage
Q: Rental coverage cost
Answer: $20 a day / $600 maximum
Q: If the insured wants to purchase coverage for a non-owned auto when he uses the vehicle for business or the car is furnished or his regular use or when he carries people or property for a fee what would he purchase
Answer: The extended non-owned endorsement
Q: If the insured wants to purchase coverage for a motorhome motorcycle all terrain vehicle golf cart or June buggy how can he acquire the coverage under Pap?
Answer: The miscellaneous type vehicle endorsement
Q: What is that Applicable time frame for insurer to send Notification of cancellation or non-renewal
Answer: 45 days
Q: What is not eligible for Fajua?
Answer: A nonresident owning property in Florida
Q: Which of the following is the policy term for a used car on a mechanical breakdown policy
Answer: 12,000 or 12 months
Q: Car rental reimbursement
Answer: $15 per day / $75 maximum
Q: When does the personal auto policy cease to defend the insured
Answer: When the limits are exhausted by payments
Q: HO-2 (broad form)
Answer: covers the dwelling, other structures, and personal property on a named perils basis
Q: HO-3 (special form)
Answer: covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property is covered on a named perils basis
Q: HO-4
Answer: renters insurance
Q: HO-5
Answer: Comprehensive Form
Q: HO-6
Answer: condominium owners
Q: HO-7
Answer: covers mobile homes and house trailers
Q: The insured is renting a condominium in which his family resides what is the best homeowners policy to sell him
Answer: Ho4
Q: Under the homeowners policy H03 which of the following would be considered an insured
Answer: The named insured’s 25-year-old son living at home
Q: Which of the following is not covered under coverage a dwelling
Answer: The land under the house
Q: Other structures classified as a detached garage shed pool or fence are covered under which
Answer: Coverage b
Q: Which of the following would be covered under property under insurance H03 policy
Answer: Theft of jewelry up to $1500
Q: What are the options the insured may choose under the ordinance and Law coverage
Answer: 25% and 50%
Q: What are the discounts under the wind mitigation Law
Answer: Roof covering roof to wall connection opening protections
Q: What is not a discount under the wind mitigation law
Answer: Plumbing changes
Q: Which of the following would be considered a flood
Answer: Due to excessive rain a street in yards were flooded houses were not damaged by water
Q: Who is the major provider of flood program coverage
Answer: The federal government NFip
Q: What program does the insured enter when the firm map is completed
Answer: Regular program
Q: firm
Answer: Flood insurance rate map
Q: The insured has a dwelling flood form if he experiences damage to a dwelling on what basis with the claim is settled
Answer: Replacement cost
Q: The insured has a dwelling flood policy on his primary structure in which he lives 30% of the time on what basis for the claim is settled
Answer: He will be disqualified from replacement cost
Q: What are three different flood policies
Answer: General property policyDwelling property policyRcbab residential condo building association policy
Q: Which of the two flood programs is the first initial phase of the community involvement into national flood
Answer: Emergency
Q: Which of the following are the flood zones for preferred risk
Answer: Zones B,C,X
Q: What is considered to be eligible under the citizens program
Answer: A house built in 1947 updated to modern standards
Q: What is the citizens property insurance corporation deductible for wind on a home
Answer: 2% for wind $1000 all other perils
Q: What forms are promulgated by the bureau in filed for uniform use
Answer: Controlled forms are used
Q: ISO
Answer: Insurance Services Office
Q: PEF
Answer: Personal effects floater
Q: What does personal articles floaters do?
Answer: Designed to ensure valuable items
Q: PAF
Answer: personal articles floater
Q: What is inherent VICE
Answer: Is the quality within an item itself which tends to destroy itself
Q: The insured lost a diamond ring while on vacation how will the personal articles floater apply
Answer: Coverage is provided since the mysterious disappearance is covered under open perils
Q: Which policy provides blanket coverage for personal property primarily while traveling or on vacation
Answer: Personal effects floater PEF
Q: PPF
Answer: personal property floater
Q: Which policy would be similar to purchasing the HO3 with an endorsement of a personal property floater to cover personal property but on an open peril basis
Answer: The personal property floater PPF
Q: What forms are created by ISO and are considered standard forms
Answer: Control forms
Q: Personal liability coverage is
Answer: Primary
Q: OIR
Answer: Office of insurance regulations
Q: Who regulates insurance agents adjusters and customer service representatives
Answer: Department of financial services
Q: Who regulates the customer service division and provide services to the public
Answer: Division of consumer affairs
Q: What is the office of insurance regulations responsible for
Answer: Responsible for all activities of companies carriers risk bearing entities
Q: What is a certificate of authority
Answer: The license required for an insurer to conduct business in the state
Q: Domestic Insurer
Answer: An insurance company that conducts business in the state of incorporation.
Q: Foreign Insurer
Answer: An insurance company that is incorporated in another state.
Q: Alien Insurer
Answer: An insurance company that is incorporated outside the United States.
Q: Mutual Insurer
Answer: a corporation owned by the policyholders
Q: Stock Insurer
Answer: a corporation owned by stockholders
Q: Rebating
Answer: Giving or offering something of value to entice a person to buy a policy
Q: Twisting
Answer: A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it’s to the insured’s disadvantage.
Q: Sliding
Answer: Knowingly collecting excess premium
Q: What division is designed to assist consumers if they have a complaint
Answer: Consumer services division of the department of financial services
Q: Insurance company was created in Florida and is doing business in Alabama what is this type of company
Answer: Foreign
Q: Express Authority
Answer: Provided by written contract
Q: Implied Authority
Answer: Agent assumed he or she has the right to
Q: Agent authority granted in a written contract is which
Answer: Express authority
Q: Apparent Authority
Answer: Third party believed agent had the right
Q: What are three types of agent authority
Answer: express, implied, apparent
Q: Which party believes an agent has the right to do something under apparent authority
Answer: The customer / third party
Q: What are the factors that Influence ethical behavior
Answer: Income from commissions one company paying higher commission then another well offering less coverage in ability to assist customers and they need to refer Customer to another agent
Q: What policy does a business owner need to provide coverage for a building under construction
Answer: Builders risk policy
Q: Builders Risk Policy
Answer: Policy cover structures building foundation
Q: Which of the following is considered property not covered under the building and personal property coverage form
Answer: Land
Q: Under preservation of property how many days will coverage apply for off premise personal property
Answer: 30 days
Q: Period of restoration does not start until?
Answer: 72 hours after the loss
Q: Extended period of indemnity
Answer: This optional coverage extends the business income additional coverage up 730 days basically 2 years
Q: Mono-line Policy
Answer: Insurance policy that provides one type of insurance coverage
Q: Multi-line Policy
Answer: insurance policy that provides multiple types of insurance coverage
Q: BOP
Answer: Business Owners Policy
Q: In business owner policy how does Coinsurance apply?
Answer: No coinsurance needed As long as it does not exceed the policy limit
Q: aggergate
Answer: Is the most payable for all claims in a policy year
Q: If general aggregate Has been used up can the agent help the small business customer by reactivating the other aggregate?
Answer: No since the premiums are so low
Q: What coverages are provided under section 1 and section 2 of the business owners policy
Answer: Section one property coverage section two liability
Q: CGL
Answer: Commercial General Liability
Q: All of the following are fully covered under the corporations commercial general liability policy
Answer: Officers ,employees and directors
Q: Sub limits
Answer: Supplements are applied per occurrence incident or person
Q: Basic Extended Reporting Period (BERP)
Answer: Claims may be made within 60 days following termination of policy coverage
Q: Supplemental Extended Reporting Period
Answer: Is an option to purchase an unlimited reporting. It must be purchased within the basic extended reporting.
Q: Liquor liability coverage form endorsement
Answer: Provides coverage if the insured is in the business of selling serving Manufacturing furnishing or distributing alcoholic beverages
Q: What damages does the coverage A liability Pay when insured is legally liable
Answer: Bodily injury and property damage to others
Q: When a contractor throws a Christmas party and one attendee is drunk and hurts another person attending the party who then Sue’s the contractor how does the general liability policy respond
Answer: Covers only if not in the business of selling distributing liquor
Q: EPL
Answer: employment practices liability
Q: Which of the following best describes the limits under the physicians surgeons and dentist professional liability policy
Answer: Per claim per aggregate
Q: How does the employment practice coverage form handle violations of the Americans with Disabilities act
Answer: Is specifically excluded
Q: Two cows leaned against an electric fence and we’re electrocuted under which farm coverage form is the claim payable
Answer: Basic broad and special
Q: What are the broad form perils under farm coverage
Answer: Electrocution accidental shooting loading and unloading incidence
Q: Custom Farming
Answer: Use of insured’s farm machinery or equipment for others away from insured’s farm premises for compensation. It does NOT include work done for others in return for work done by them.
Q: 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: Coverage E scheduled farm personal property under the farm coverage form includes coverage for all of the following
Answer: Grain, poultry and livestock
Q: Two cows leaned against an electric fence and we’re electrocuted under which farm coverage form is the claim payable
Answer: Basic broad and special
Q: What are the broad form perils under farm coverage
Answer: Electrocution accidental shooting loading and unloading incidence
Q: Custom Farming
Answer: Use of insured’s farm machinery or equipment for others away from insured’s farm premises for compensation. It does NOT include work done for others in return for work done by them.
Q: 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: Coverage E scheduled farm personal property under the farm coverage form includes coverage for all of the following
Answer: Grain, poultry and livestock
Q: What kind of types of coverages could be available for physical damage under the business automobile policy Bap
Answer: Collision comprehensive and specified perils
Q: What kind of coverage is necessary if the business owner wants to cover hitting of an animal or grass breakage under the coverage for the business auto policy bap
Answer: Comprehensive
Q: Doc
Answer: Drive other car
Q: Doc will
Answer: Follow the company employee and also take care of employee spouse
Q: How can the carrier provide collision coverage for a vehicle which is driven more than 50 miles from the point where it was purchased
Answer: The dealers drive away collision endorsement
Q: Type of commercial auto policies
Answer: Business auto policyGarage policyTruckers policy
Q: Who regulates Worker’s Compensation laws
Answer: DFS Department of financial services
Q: What is the design of workers compensation
Answer: Employees are compensated for occupational he incurred injuries regardless who’s at fault and employers are immune to lawsuits
Q: How many employees must an employer have to be required to comply with Worker’s Comp.
Answer: Four or more employees or one in More and construction
Q: Sam is an independent contractor he hired Joe for subcontractor and Joe brought his employee Harry to the job site harry got hurt on the job site harry found out that Joe has no Worker’s Comp. what are Harry’s rights?
Answer: Harry has the right to get Sam’s workers compensation
Q: Sally works for a company in Miami she travels to Atlanta on a business trip and is injured while in Atlanta what section of the Worker’s Compensation policy will apply
Answer: Part 1 of workers comp policy follows her
Q: Barbara was out of work for nine days how many days does she get paid for under disability benefits and Worker’s Comp.
Answer: Two days Barbara will not receive any benefits for the first seven days
Q: Troy was out of work for 23 days how many days does Troy get paid under disability benefits and Worker’s Comp.
Answer: All 23 days try to receive disability benefits for the entireperiod he was out of work because it was longer than 21 days
Q: Which of the following is covered under workers compensation
Answer: An employee asleep on the job
Q: The following is not covered under workers compensation
Answer: And employee intentionally causing harm to himself an employee under drugs and alcohol and employee who committed a felony
Q: who over sees the fwcjua?
Answer: The Florida board of governors
Q: FWCJUA
Answer: Florida workers compensation joint underwriters association
Q: What are three parts of a Worker’s Compensation policy
Answer: Part 1 worker’s compensation part 2 employers liability part 3 Other states
Q: What are three benefits under part one of workers compensation
Answer: Medical disability death
Q: How long is the waiting period in retroactive date for Worker’s Compensation
Answer: 7/21 days retroactive first day
Q: For what reason will part two employers liability defend the insured
Answer: Claims by employee not covered by workers comp claims by others for liabilities to insured employees claims by relatives of employees for consequential damages
Q: robbery
Answer: Taking someone’s property by threat or force is
Q: theft
Answer: Taking another person’s possessions
Q: burgalry
Answer: Breaking and entering leaving visible signs of forceable entry
Q: The insured had a break-in and the insured’s office was signs of the break-in which of the following will cover the loss
Answer: Burglary and theft
Q: wall
Answer: War.acts committed by insured . Legal expenses. Loss of future income
Q: Our insured hired a bookkeeper and gave her $2000 draft authority the bookkeeper signed a $2000 check and put it in her personal bank account additionally she forged employers name to a separate check for $5000 and deposited that into her bank account what crime form would be necessary to cover this event
Answer: Employee theft
Q: If a fire destroys the insurance building what type of coverage will take care of the loss of money inside the building
Answer: Inside the premises destruction of money
Q: If the insured has evidence that the money was stolen what type of coverage to care of the loss
Answer: Inside the premises theft of money
Q: Safe Burglary
Answer: The unlawful taking of property from within a locked safe or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior; includes the unlawful taking of the entire safe or vault from inside the premise.
Q: The insured’s employee electronically transferred money from the employer’s computer to the employees computer form would be necessary to cover this crime
Answer: Employee theft
Q: When a person turns over property to a thief under the threat of bodily harm this is known as
Answer: Robbery
Q: All of the following are the forms available under employee theft
Answer: Scheduled person scheduled position blanket
Q: Bid Bond
Answer: A contract bond guaranteeing that a contractor bidding on a construction or supply contract will enter into the contract and will provide a performance bond if the bid is accepted.
Q: Performance Bond
Answer: A contract bond guaranteeing that a contractor’s work will be completed according to plans and specifications.
Q: Supply bond grantees what?
Answer: To supply contract on guarantees delivery of goods at a agreed price from the supplier to the purchaser
Q: The state of Florida officials ordered some desks tables and chairs for their field office if the state officials want to make sure these desks are delivered what barn will be required
Answer: Supply bond
Q: Probate Bond
Answer: If a person is deceased the court appointed another individual to probate the state and distribute the estate assets
Q: A person is appointed by the court to handle affairs of a deceased minor what kind of bond does that person need to obtain
Answer: Probate bond
Q: Conservation Bond
Answer: Guarantees a person appointed by the court to preserve property of minor or incompetent individual
Q: What kind of a bond is an appeal bond?
Answer: Court Bond
Q: What is the purpose of a blue sky bond?
Answer: If a securities dealer sales investments to the public but default on its securities the blue sky bond will pay for those defalcations
Q: What does a lost instruments bond cover?
Answer: Lost in shipment find guaranteeing of those money orders will not be cashed
Q: Insurance company issuing the bond will want to know all of the following before issuing a bond
Answer: Capital character capability
Q: What does a lost instruments bond cover?
Answer: The policy will not respond anyway since it’s the act of God
Q: Our insurance tractor-trailer caring customers goods was picked up by a tornado and deposited 5 miles away damaging the cargo inside how were the motor truck cargo policy respond
Answer: Trip transit
Q: The high school band is going to play for the White House they ship their musical instruments to Washington DC what kind of coverage does the band need for those instruments
Answer: Annual transit
Q: A mail order house has sent out a shipment what kind of coverage does the mail order company need to have to cover this one shipment
Answer: used by firms to cover a single shipment
Q: Trip Transit Policy
Answer: Policy that covers all shipments made or received by the insured throughout a one-year policy period.
Q: Annual Transit Policy
Answer: It covers the property of others in the care custody troll of the insured
Q: What does the Bailey’s customers form cover
Answer: Try cleaners warehouses or furriers
Q: What type of business are Bailees?
Answer: Covers have equipment and tools by fire theft other perils
Q: Contractors equipment form
Answer: Installation floater
Q: The insured is an elevator sales elevators company please we’re installing an elevator for a customer but incurred $40,000 damage to the elevator during the process what policy form takes care of the damage
Answer: Covers against machinery being installed or while in transit and testing
Q: Installation Floater
Answer: Controlled
Q: What is the term for standard word policies created by ISO insurance service office?
Answer: Your vessel
Q: Who’s vessel is covered under hull coverage
Answer: Protects vessel owner against freight charges not paid
Q: What is freight coverage
Answer: Covers an incident in which the insured runs down another vessel in the water
Q: What is payable under running down clause
Answer: Occurrences which come upon a vessel wall in its operating on the ocean when waves come in stranded sinking colliding with another vessel or a fixed object
Q: Perils of the sea
Answer: do not have anything to do with the ocean but could happen other situations such as earthquakes lightning pirates who attack ship while it’s on the water
Q: Perils on the Sea
Answer: to throw goods overboard to lighten the load on a boat
Q: jettison
Answer: Illegal acts committed willfully by a ship’s master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement of the cargo.
Q: Barratry
Answer: Requires insured to take all steps necessary to save and preserve goods from loss
Q: Rule for Sue and labor
Answer: Franchise deductible for loss equals or exceeds the deductible the deductible is waived
Q: What is the definition of the standard deductible under ocean marine
Answer: Freight
Q: What coverage is provided for loss of income Under ocean marine
Answer: No deductible
Q: A pilot parked a plane side effects but forgot to tie the plane down A gust of wind later push the plane into the fence damage the plane the insurance company wants to apply to Deductible what is it
Answer: Not in flight has no deductible
Q: What is the distinction between flight and not in flight
Answer: Pays for the death and dismemberment if requested by insured eliminates legal action against the insured
Q: What is omitted aircraft liability
Answer: Covers the plane which is left with the insured for storage repair or safekeeping
Q: What is covered under hanger keeper?
Answer: United States Canada and Mexico within 100 miles of the US border
Q: What is covered territory under an aviation policy
Answer: Admitted aircraft liability
Q: If a passenger suffers dismemberment or he dies what coverage could be provided conversation without admitting that the airline was at fault
Answer: Boilers generators pumps compressors and turbines
Q: What type of properties are covered under boiler and machinery?
Answer: Pays the cost of temporary repairs Ian’s to hurry along permanent repairs
Q: How does the boiler and machinery policy provide expediting expense?
Answer: Expediting expenses because it is temporary
Q: Our insurance business relies on his generator for power during a temporary period of generator breakdown the company had to purchase electrical power from the electric company what is the expense to be covered under
Answer: Pays the cost of temporary repairs to hurry along permanent repairs
Q: Expediting Expenses
Answer: 90 days
Q: What is the timeframe for newly acquired equipment under boiler and machinery policy
Answer: $500,000
Q: What is the minimum limit under boiler and machinery policy
Answer: $500 per occurrence
Q: What is standard deductible under boiler and machinery policy
Answer: Covers loss due to spoilage from lack of power light steam refrigeration
Q: What is covered by consequential damage under boiler and machinery policy
Answer: Expediting expenses
Q: Temporary repairs to hurry along permanent repairs in boiler and machinery is considered
Answer: 7/10/31
Q: What is the grace. Under health insurance policies
Answer: 31 days
Q: The insured pays his health insurance premium on a quarterly basis what is the grace period
Answer: Incurable illness
Q: Which answer below best describes a dreaded disease policy
Answer: The waiver of premium will not come into affect since the insured is not totally disabled but only partially
Q: Are insured is partially disabled how is the waiver of premium going to respond
Answer: Policy which covers medical costs not payable under the federal Medicare program