FLORIDA CLAIMS ADJUSTER
LATEST EXAM 2023-2024/CLAIMS
ADJUSTER (FLORIDA) 270+ REAL
EXAM QUESTIONS AND CORRECT
ANSWERS|AGRADE
The following are basic characteristics of a property or liability
insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion – ANSWER- Loss of Settlement Contract
The Insurer’s responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to avoid the
loss, to protect the property against further loss, and to give the insurer
proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above – ANSWER- Conditional Contract
“may be conditioned”
If financial responsibility doesn’t exist at the time of an accident, which
of the following things must happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future
responsibility for future accidents
C. Both A & B
D. None of the Above – ANSWER- C. Both A & B
A lender has an insurable interest in a home and finds protection in the:
A. Loss Payee Clause
B. Mortgagee Clause
C. Lender Clause
D. Additional Insured Clause – ANSWER- B. Mortgagee Clause
Mortgagee – Homeowner’s policy
Loss Payee – Automobile policy
Which of the following forms is “all-risk” on the dwelling policy?
A. DP-1, or the Basic Form
B. DP-2, or the Broad
C. DP-3, or the Special Form
D. None of the Above – ANSWER- C. DP-3, or the Special Form
Which of the following is not covered under Coverage C, Personal
Property?
A. A fire breaks out in the residence and an overnight guest loses his
clothes in the fire
B. A fish dies because he has been left alone for a week without food
C. The insureds daughters tennis racket is stolen from her locker
D. The insureds suitcase and clothing, valued at $1,500, are stolen from
his hotel – ANSWER- B. A fish dies because he has been left alone for a
week without food
Animals are listed as an “exclusion” under a Homeowner’s policy.
Which of the following are characteristics of Homeowner’s Insurance?
A. Protects against economic loss to residences and household property
and legal liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of building
D. All of the Above – ANSWER- D. All of the Above
Also included: personal, non-business risk, no more than 2
roomers/boarders, condominium unit owners and cooperative apartment
occupants
An insured who wishes to purchase flood insurance, but is located in a
moderate or low risk flood zone may do so by purchasing a:
A. Preferred Risk Flood Policy
B. Standard Flood Policy
C. Universal Flood Insurance
D. None of the Above – ANSWER- A. Preferred Risk Flood Policy
Although Flood Insurance is provided by the Federal Government, those
who are not in a “flood zone” may purchase a preferred risk policy to
cover them for a flood claim.
Used only for Commercial Condominiums, it covers the unit-owners
business personal property and the personal property of others in the
insured’s care, custody or control:
A. Condominium Dwelling Form
B. Personal Condominium Unit Owners Form
C. Condominium Unit Owners Form
D. None of the Above – ANSWER- C. Condominium Unit Owners Form
Does not cover buildings since coverage would typically be provided
under the Condo Association coverage form issued.
The Commercial Property Contract includes all of the following, except:
A. Common Policy Conditions
B. Commercial Property Conditions
C. Coverage Form
D. Commercial Loss Schedule – ANSWER- Commercial Loss Schedule
Also included: Declarations, Causes of Loss Form, Endorsements
Insures a condominium association against direct physical loss or
damage to buildings, business personal property and personal property
of others in the care, custody or control of the association and located at
the premises:
A. Condominium Association Form
B. Condominium Unit Owners Form
C. Condominium Insured Owner Form
D. None of the Above – ANSWER- A. Condominium Association Form
This, along with Condo Unit Owners Form, is located under Condo
Coverage.
Sometimes referred to as commercial fire and allied lines, this is the
form of insurance that covers direct and indirect losses related to
properties other than one-to-four family dwellings and farm properties:
A. Business Property Insurance
B. Building Property Insurance
C. Commercial Property Insurance
D. None of the Above – ANSWER- C. Commercial Property Insurance
(the question is the definition for this term)
Under Commercial Property Policies, Florida law requires an insurer to
give the insured at least ____days advance written notice of nonrenewal. A. 25 B. 90 C. 45 D. None of the Above – ANSWER- C. 45 Also, notice must state reasons the policy is not to be renewed. Liberalization states, “The insured gets the benefit of any broadened coverage if the company, within ____ days of inception, adopts a
form revision that is broader and without increase in premium.”
A. 10 days
B. 55 days
C. 65 days
D. 45 days – ANSWER- D. 45 days
Protects against loss of business income that results from damage to
covered property from a covered cause of loss.
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FLORIDA PERSONAL LINES LICENSE
EXAM LATEST 2023-2024 ACTUAL
EXAM 300 QUESTIONS AND CORRECT
ANSWERS|AGRADE
This endorsement is only available in the policy includes other than collision
coverage. This endorsement will reimburse the insured for a rental charges
incurred because the covered auto is out of use because of a covered loss.
while an insured covered auto is in the repair shop following damage by a
collision, the insured would have coverage for which of the following vehicles
under a personal auto policy?
A. Any vehicle not owned by the insured, but furnished for use while the covered
auto is out of normal use because of repair
B. Any vehicle use by the insured without the reasonable belief that the insured is
entitled to use such vehicle
C. Any auto furnished for the insured’s regular use, but not named on the policy
D. Any vehicle while located inside a racing facility for the purpose of racing –
ANSWER- A. Any vehicle not owned by the insured, but furnished for use while
the covered auto is out of normal use because of repair
The Florida automobile joint underwriting association (FAJUA) is a market source
for person unable to purchase auto insurance thought the standard markets. All of
the following statements concerning (FAJUA) are TRUE, EXCEPT
A. Agents do not have binding Authority
B. Coverage is available to military nonresident stationed in Florida.
C. Private passenger auto are eligible for liability coverage with limits up to
100/300/50, PIP, U/M.
D. Each licensed agent in Florida is assigned to one of the servicing carries with
which the agent places all risks to be insured in FAJUA – ANSWER- A. Agents do
not have binding Authority
Agents have authority to immediately bind coverage upon securing a completed
and signed application upon payment of the require premium deposit by the
applicant.
If a person is using auto with the belief that he is entitled to do so, subrogation
rights under a personal auto policy would apply to all coverages EXCEPT
A. no fault medical payments
B. Liability
C. Physical Damage
D. Uninsured Motorist – ANSWER- C. Physical Damage
Subrogation rights do NOT apply to physical damage coverage if the damage is
caused by a person using the auto with a reasonable belief that they were entitled to
do so.
what type of information would be found in a policy’s insuring agreement?
A. Insurers’ address
B. Renewal Dates
C. Location of premises
D. Policy limts – ANSWER- B. Renewal Dates
The insuring agreement lists the parties to the contract, effective and renewal dates,
the description of coverage provided, and perils (among other things). Location of
premises, policy limits, supplemental representations, and insurer’s name and
address can all be found in the Declarations.
A neighbor’s tree has fallen into the insured’s yard. The insured’s homeowners
policy will only pay to remove the tree if
a)The damage is more than $1,000.
b)The neighbor has no homeowners insurance.
c)The tree has caused damage to the insured’s vehicle.
d)The tree is blocking the driveway. – ANSWER- d)The tree is blocking the
driveway.
An insured’s homeowners policy will pay up to $1,000 to remove from premises if
a neighbor’s tree fell by a covered peril, or if the tree blocks a driveway or
handicapped ramp, even if no damage to a covered structure has occurred.
A sworn written statement that must be furnished by the insured to the insurer
before any loss under a policy can be paid is called?
A. Binder
B. Proof of lose
C. Notice of Claim
D. Claim Report – ANSWER- B. Proof of lose
Proof of loss is a sworn statement that must usually be furnished by the insured to
an insurer before any loss under a policy can be paid. Proof of loss must be in
writing.
According to the standard mortgage clause, who has the right to bring a suit in
their own name to recover damages, pay policy premiums, and submit a proof of
loss?
a)Policyholder
b)Mortgagee
c)Insurance company
d)Governor – ANSWER- b)Mortgagee
The standard mortgage clause, a basis provision of all property policies for real
property, also ensures that mortgagees have the right to receive prior notice if an
insurance policy is to be cancelled.
An agent transacts business for Insurer A and Insurer B, both selling life insurance,
and for Insurer C, selling health insurance. How many appointments must the
agent hold?
a)No appointments are required.
b)Only one – for any of the insurers
c)Two – one for life and one for health
d)Three – one for each insurer – ANSWER- d)Three – one for each insurer
An agent must have a separate appointment for each insurer.
Which of the following losses would NOT be covered by a homeowners policy?
a)A coin collection valued at $500 lost in a fire
b)A $550 utility trailer blown away by a tornado
c)A stolen silver tea set worth $2,000
d)A $800 outboard motor destroyed by hail – ANSWER- a)A coin collection
valued at $500 lost in a fire
An HO policy will pay up to $2,500 for silverware by theft, $1,500 for boats,
motors, trailers, $1,500 for loss of trailers not used with boats, but no more than
$200 for coins.
Which of the following does the term proximate cause refer to?
a)Reason for filing a lawsuit
b)Negligence that leads to an injury
c)Injury that leads to monetary compensation
d)Duty of the defendant to act – ANSWER- b)Negligence that leads to an injury
Proximate cause is the reasonably foreseeable act or event that results in an injury
or damage. Negligence may often be the proximate cause of the damage; without
it, the accident would not have happened. This is also called direct liability.
What is the basic limit for costs incurred at the place a vehicle is disabled provided
by the towing and labor costs endorsement?
a)$25
b)$50
c)$75
d)$100 – ANSWER- a)$25
This endorsement provides a basic limit of $25 for towing and labor costs incurred
at the place a vehicle is disabled. Higher limits are available for an additional
premium.
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated?
a)To extend coverage to motorized vehicles rented for recreation
b)To expand the definition of a covered auto to include various motorized vehicles
c)To limit coverage to various motorized vehicles only
d)To provide coverage for hit-and-run accidents The miscellaneous type vehicle
endorsement is used to – ANSWER- B.) to expand the definition of a covered auto
to a include various motorized vehicles
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FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-
2024 REAL EXAM 200 QUESTIONS AND CORRECT ANSWERS
WITH RATIONALES |AGRADE
On August 9, Albert made an application for life insurance that his agent submitted
a day later without a premium payment. On August 21, the insurer issued the
policy as applied for and on August 24, the agent delivered the policy and collected
the initial premium. On what day was the contract offer made?
A. August 9
B. August 10
C. August 21
D. August 24 – ANSWER- C. Rationale:If an applicant does not submit an initial
premium with the application, the applicant is inviting the insurance company to
make a contract offer. The insurer can respond by issuing a policy (the offer) that
the applicant can accept by paying the premium when the policy is delivered.
All statements made by an applicant in an application for life insurance are
considered to be
A. warranties
B. affirmations
C. representations
D. declarations – ANSWER- C. Rationale:Most states require that life insurance
policies contain a provision that all statements made in application be deemed
representation not warranties. A representation is a statement made by the
applicant that the applicant believes to be true. A warranty is a statement made by
the applicant that is guaranteed to be true. If an insurance company rejects a claim
on the basis of a representation, the company bears the burden of proving
materiality.
Which of the following legal terms indicates that a life insurance contract contains
the enforceable promises of only one party?
A. adhesion
B. unilateral
C. conditional
D. aleatory – ANSWER- B. Rationale:Insurance contracts are unilateral in that only
one party – the insurer – makes any kind of enforceable promise.
Which of the following types of agent authority is specifically set forth in writing
in the agent’s contract?
A. express
B. implied
C. apparent
D. personal – ANSWER- A. Rationale:Express authority is the authority a principal
gives to its agent. Express authority is granted by means of the agent’s contract,
which is the principal’s appointment of the agent to act on its behalf.
Assume a home catches fire after it is struck by lightning and the fire destroys its
structure and contents. By insurance definition, the fire is
A. the risk
B. the hazard
C. the peril
D. the proximate cause – ANSWER- C. Rationale:A peril is the immediate specific
event causing loss and giving rise to risk. When a building burns, fire is the peril.
What constitutes “consideration” for a life insurance policy?
A. application and initial premium
B. agent’s commission
C. adhesion feature of the contract
D. policy’s benefits – ANSWER- A. Rationale:Consideration is the value given in
exchange for the promises sought. In an insurance contract, consideration is given
by the applicant in exchange for the insurer’s promise to pay benefits, and it
consists of the application and the initial premium.
Statements made by an applicant for life insurance that are guaranteed to be true
are
A. warranties
B. material statements
C. representations
D. declarations – ANSWER- A. Rationale:A warranty in insurance is a statement
made by the applicant that is guaranteed to be true. It becomes part of the contract
and, if found to be untrue, can be grounds for revoking the contract. Warranties are
presumed to be material because they affect the insurer’s decision to accept or
reject an applicant.
Which of the following insurance companies is owned by its policyholders?
A. service insurer
B. stock insurer
C. reinsurer
D. mutual insurer – ANSWER- D. Rationale:Mutual insurers are owned by the
policyholders. Anyone purchasing insurance from a mutual insurer is both a
customer and an owner.
With regard to life insurance, all of the following statements are correct EXCEPT
A. all individuals are considered to have insurable interests in themselves
B. spouses are automatically considered to have insurable interests in each other
C. a creditor has an insurable interest in a debtor
D. insurable interest must be maintained throughout the life of the contract –
ANSWER- D. Rationale:Insurable interest is required only when a contract is
issued; it does not have to be maintained throughout the life of the contract nor is it
necessary at the time of claim.
A life insurance company is organized in Orlando where it maintains its home
office. In Florida, the company is classified as
A. a domestic company
B. a local company
C. a foreign company
D. a preferred company – ANSWER- Rationale: A. An insurer is termed
“domestic” in a state when it is incorporated in that state.
A life insurance company organized in Illinois, with its home office in
Philadelphia, is licensed to conduct business in Wisconsin. In Wisconsin, this
company is classified as
A. a domestic company
B. an alien company
C. a foreign company
D. a regional company – ANSWER- C. Rationale:A foreign company operates
within a state in which it is not chartered and in which the home office is not
located.
To whom does the cash value of a life insurance policy belong?
A. policyowner
B. insured
C. insurer
D. beneficiary – ANSWER- A. Rationale:The accumulation that builds over the life
of a policy is called the “cash value,” and it belongs to the policyowner, who may
or may not be the insured.
Frank is the insured in a $40,000, 5-year level term policy issued in 2003. He died
in 2009. His beneficiary received
A. nothing
B. $20,000
C. $40,000
D. the cash value of the policy – ANSWER- Rationale:A. In this case, the insured
died after his term policy had expired. As a result, his beneficiary received nothing.
All of the following statements regarding assignment of a life insurance policy are
correct EXCEPT
A. to secure a loan, the policy can be transferred temporarily to the lender as
security for the loan
B. the policyowner must obtain approval from the insurance company before a
policy can be assigned
C. the life insurance company assume no responsibility for the validity of an
assignment
D. the life insurance company must be notified in writing by the policyowner of
any new assignment – ANSWER- B. Rationale:Policyowners actually own their
policies and may do with them as they please. They can even give them away, just
as they can give away any other kind of property they own. Nevertheless, they
must notify the insurance company in writing of any transfers of ownership
(assignments). The company must then accept the validity of the assignments
without question.
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FLORIDA 2-20 AGENTS LICENSE EXAM 2023-2024
REAL EXAM 300 QUESTIONS AND CORRECT
DETAILED ANSWERS|AGRADE
Keith commutes into the city in his car, and he provides a ride to two co-workers
who live near him. Every other week, the co-workers take turns buying the
gasoline for Keith’s car. Does this activity create a public or livery conveyance
situation that would preclude liability coverage under Keith’s Personal Auto Policy
(PAP)? – ANSWER- No, because Keith is involved in a share-the-expense car
pool.
An insured covers his owned auto with more than one Personal Auto Policy (PAP),
each from a different insurer. In the event of a claim for medical payments
coverage, – ANSWER- Each insurer pays its pro rata share based on the proportion
that its limit of liability bears to the total of applicable limits.
The Insuring Agreement in Part A – Liability Coverage of the Personal Auto Policy
contains descriptions of all of the following EXCEPT: – ANSWER- Limit of
Liability
Tom and Martha insure their house with an unendorsed HO-3—Special Form (HO3) with a Coverage A—Dwelling limit of $300,000, which is the replacement cost
of the house. A thief breaks into the house while Tom and Martha are on vacation
and steals the following items: •$500 cash•$50,000 stock certificates. Ignoring any
deductible that may apply, how much, if any, will Tom and Martha’s insurer pay
for the loss of the items? – ANSWER- $1,700
Under the HO-3—Special Form (HO-3) Section I—Conditions, the Loss
Settlement condition – ANSWER- Establishes the process for determining the
amount to be paid for a property loss.
Property described in Coverages A, B, and C of an HO-3—Special Form (HO-3)
that is destroyed, confiscated, or seized by order of any governmental or public
authority is – ANSWER- Excluded.
Adam and his insurer disagree on the amount of a loss covered by his homeowners
policy. Adam wants the insurer to pay $10,000 toward the loss. The insurer’s
representative feels that the loss should be valued at $5,000. How could the
appraisal process resolve this situation? – ANSWER- Adam and the insurer will
each select an appraiser, and the two appraisers will submit their differences to an
impartial umpire who will reach a resolution.
Which one of the following has special limits of liability within Coverage C of the
HO-3—Special Form (HO-3)? – ANSWER- Theft of firearms
A storm causes power lines to break ten miles from the insured’s premises. The
loss of electrical power causes food in the insured’s freezer to thaw and spoil.
Coverage for this loss is – ANSWER- Excluded because the power failure occurred
off the residence premises.
If law enforcement officials seize an insured’s personal computer to search for files
that might be related to a crime, the insured under an HO-3—Special Form (HO-3)
may be unsuccessful in claiming a theft loss on the computer due to the –
ANSWER- Governmental Action exclusion.
Sam and Sophia insure their house with an unendorsed HO-3—Special Form (HO3) policy. Sam stores a small fishing boat and trailer behind the house. While they
are out for the evening, a fire destroys most of their kitchen and completely
destroys the boat and trailer. Assuming Sam’s boat and trailer are valued at $4,000
and ignoring any deductible that may apply, what amount will their HO-3 insurer
pay for the loss of the boat and trailer? – ANSWER- $1,500
The Florida Valued Policy Law applies to: – ANSWER- mobile homes
For a Dwelling Flood policy, which is correct: – ANSWER- Primary residences are
covered at replacement cost on building losses.
Sally insures her house with an unendorsed HO-3—Special Form (HO-3) with a
Coverage A—Dwelling limit of $275,000, which is the replacement cost of the
house. A fire destroys the house including a collection of blueprints belonging to
Sally’s employer, valued at $10,000. Sally was storing the blueprints at her home
while her office was changing locations. Assuming no deductible applies, how
much, if any, will Sally’s HO-3 insurer pay to replace the blueprints? – ANSWER-
$0
One of the main factors used in developing a base premium for a homeowners
policy is – ANSWER- The public protection class.
Bert and Maggie insure their house with an unendorsed HO-3—Special Form (HO3) with a Coverage A—Dwelling limit of $300,000, which is the replacement cost
of the house. A fire destroys their detached garage. The cost to replace the garage
is $35,000. Ignoring any deductible that may apply, how much will Bert and
Maggie’s insurer pay to replace the detached garage? – ANSWER- $30,000
Coverage for other structures is automatically provided under the HO-3—Special
Form (HO-3) policy with a limit that is – ANSWER- 10 percent of the Coverage A
limit
Renee is an insured under an unendorsed HO-3—Special Form (HO-3) with a
Coverage C—Personal Property limit of $100,000. She owns a secondary
residence that contains $15,000 of personal property. Only her primary residence is
listed on the declarations page of the HO-3 policy. A fire destroys all of Renee’s
personal property at her secondary residence. How much of this loss will be paid
by Renee’s HO-3 policy? – ANSWER- $10,000
A homeowners policy premium is determined by first developing the base
premium. The base premium is influenced by certain factors, including which one
of the following? – ANSWER- Dwelling location
Ralph has an unendorsed HO-3—Special Form (HO-3) policy. While coming
home from a coin show, Ralph discovers that his automobile was broken into and a
package containing $2,000 in coins, some tools, and groceries was stolen.
Disregarding any deductible that may apply, will Ralph’s HO-3 insurer pay for the
loss of the coins? – ANSWER- Yes, the coins are covered up to a specified limit.
Jim and Sue, a young married couple, are under contract to purchase a
condominium unit. Which one of the following ISO policy forms is best designed
to meet their homeowners insurance needs? – ANSWER- HO-6—Unit-Owners
Form
Allen, a sole proprietor, is crossing the street when he is struck by a passing
uninsured auto. He sustains $2,500 in medical bills, $3,000 damage to the laptop
he was carrying, and $1,000 in lost wages. Allen’s business auto policy has
$100,000 liability limit and $5,000 medical payments limit. Assuming there is no
other coverage, how much will his business auto policy pay? – ANSWER- $2,500
An animal damaged the interior of an insured’s automobile while it was parked
with the windows down. Which one of the following types of physical damage
coverage under the Business Auto Coverage Form would cover this loss? –
ANSWER- Comprehensive
Martha drives her auto, which is insured under a Business Auto Coverage Form,
outside the state in which it is licensed. The other state requires a $25,000 bodily
injury limit for underinsured motorists coverage. Martha’s policy does not provide
underinsured motorists coverage but does provide a $15,000 liability limit for
uninsured motorists coverage. How would Martha’s Business Auto Coverage Form
respond to a $30,000 underinsured motorists bodily injury claim in the other state?
- ANSWER- Martha’s policy would provide the $25,000 bodily injury limit
required by the other state for underinsured motorists coverage.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or
have them drive their own autos while on company business. Which one of the
following exposures is created if Bilo decides in favor of employee-owned autos? –
ANSWER- Employer’s Nonownership Liability
Joe’s New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no
car himself since he always drives a company car. If you were the agent, what
coverage would you add to the BAP to give Joe liability coverage while he drives a
car not owned by the corporation? – ANSWER- Other Car coverage
Which one of the following losses would be covered by the business auto policy? –
ANSWER- The insured has agreed to pay for liability losses caused by the
insured’s negligence that a shipper may incur while the insured is hauling goods for
the shipper.
For commercial auto insurance, a truck, tractor, or trailer is non-zone rated if it is –
ANSWER- A light truck operating over any distance.
Mitchell is a highway contractor whose company is covered with a workers
compensation policy and an unendorsed business auto policy. Which one of the
following losses would be covered by his business auto policy? – ANSWER- An
employee runs over a subcontractor’s equipment with an owned auto.
Joe Motors, which services automobiles, wants to maintain the goodwill of its
customers. This is best accomplished by – ANSWER- Purchasing garagekeepers
insurance.
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FLORIDA ALL LINES ADJUSTER EXAM 2023-2024
REAL EXAM 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|AGRADE
what is statute of limitations – ANSWER- the statutory defense that imposes a time
limit in which the plaintiff can file a lawsuit
what are the three types of limits expressed in liability policies – ANSWER- single
limit, split limits and aggregate limits
“Single limit” in liability policies – ANSWER- highest amount the policy will pay
for any one accident or occurrence, intended to cover Bodily injury and property
damage
“Split limits” are most frequently used in what kind of policies – ANSWERautomobile policies
the first limit in the split limit policies is – ANSWER- the maximum amount paid
for any one person for bodily injury per occurrence
the second limit in the split limit policies is – ANSWER- the maximum amount
paid for ALL people injured per occurrence
the third limit in the split limit policies is – ANSWER- the maximum amount the
policy will pay for property damage per occurrence
what is the aggregate limit in a liability policy – ANSWER- the maximum amount
the policy will pay for all occurrences during the policy period
what happens what the insured reached the aggregate limit – ANSWER- the
insured is without coverage
The definition of occurrence – ANSWER- a continuous or repeated exposure to an
event that results in a financial loss
liability insurance policies are written on which two forms? – ANSWER- either a
“claims-made” or “occurrence” form
Why would someone choose a liability insurance policy to be written on
“occurrence forms” – ANSWER- to cover liability claims when the occurrence
took place during the policy period regardless of when the claim was filed
why would someone choose a liability insurance policy to be written on a “claimsmade form” – ANSWER- to provide coverage for claims only when both the
occurrence and the resulting claim filling takes place during the policy period, if
filed after the policy expiration date it will not be covered
what is the “duty to defend” – ANSWER- insurer has the right and duty to defend
the insured, even if the claim is groundless, false or fraudulent
What is malfeasance? – ANSWER- legal term used in both civil and criminal law
to describe an intentional act is illegal or morally wrong that contributes to the
injury of another person
no-fault coverage – ANSWER- any type of insurance contract under which
insureds are indemnified for losses, regardless of who was at fault
What is nonconcurrency – ANSWER- when an underlying liability policy and
excess liability policy have different inception and expiration dates, a denial of a
claim can occur
when can the excess liability policy occur – ANSWER- excess policy cannot pay
on a claim until the underlying policy’s limits have been exhausted
what are supplementary payments – ANSWER- items such as first aid expenses,
premiums for bonds, pre- and post- judgement interest and travel expenses
incurred by the insured at the request of the insurance company in defense of a
claim
which type of insurance is not intended to indemnify the plaintiff? – ANSWERpunitive damages
this would be considered compensatory or special damages paid to an injured party
when the insured is negligent and causes the injury? – ANSWER- lost wages
Eligible Dwelling Under a Homeowners Policy – ANSWER- owner or tenant
occupied
1-4 family dwelling
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FLORIDA CLAIMS ADJUSTER EXAM 2023-2024
ACTUAL EXAM 260 QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS)|AGRADE
Which of the following are characteristics of Homeowner’s Insurance?
A. Protects against economic loss to residences and household property and legal
liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of building
D. All of the Above – ANSWER- D. All of the Above
Rationale: Also included: personal, non-business risk, no more than 2
roomers/boarders, condominium unit owners and cooperative apartment occupants
Jeremy owns a home that is recently damaged due to a hurricane. The repair
estimate is averaged at $25,000 and Jeremy decides to stay in a hotel because most
of the damage is to his bedroom and kitchen. Under a Homeowner’s Policy, what
coverage will pay for the hotel room bill?
A. Fair Rental Value
B. Value Obligation
C. Loss of Use
D. Insurers Duties – ANSWER- C. Loss of Use
Rationale: The insurer will pay any necessary and reasonable expenses associated
with a daily living routine.
An insured who wishes to purchase flood insurance, but is located in a moderate or
low risk flood zone may do so by purchasing a:
A. Preferred Risk Flood Policy
B. Standard Flood Policy
C. Universal Flood Insurance
D. None of the Above – ANSWER- A. Preferred Risk Flood Policy
Rationale: Although Flood Insurance is provided by the Federal Government,
those who are not in a “flood zone” may purchase a preferred risk policy to cover
them for a flood claim.
Used only for Commercial Condominiums, it covers the unit-owners business
personal property and the personal property of others in the insured’s care, custody
or control:
A. Condominium Dwelling Form
B. Personal Condominium Unit Owners Form
C. Condominium Unit Owners Form
D. None of the Above – ANSWER- C. Condominium Unit Owners Form
Rationale: Does not cover buildings since coverage would typically be provided
under the Condo Association coverage form issued.
The Commercial Property Contract includes all of the following, except:
A. Common Policy Conditions
B. Commercial Property Conditions
C. Coverage Form
D. Commercial Loss Schedule – ANSWER- D. Commercial Loss Schedule
Rationale: Also included: Declarations, Causes of Loss Form, Endorsements
Insures a condominium association against direct physical loss or damage to
buildings, business personal property and personal property of others in the care,
custody or control of the association and located at the premises:
A. Condominium Association Form
B. Condominium Unit Owners Form
C. Condominium Insured Owner Form
D. None of the Above – ANSWER- A. Condominium Association Form
Rationale: This, along with Condo Unit Owners Form, is located under Condo
Coverage.
Sometimes referred to as commercial fire and allied lines, this is the form of
insurance that covers direct and indirect losses related to properties other than oneto-four family dwellings and farm properties:
A. Business Property Insurance
B. Building Property Insurance
C. Commercial Property Insurance
D. None of the Above – ANSWER- C. Commercial Property Insurance
Rationale: (the question is the definition for this term)
Under Commercial Property Policies, Florida law requires an insurer to give the
insured at least __________days advance written notice of non-renewal.
A. 25
B. 90
C. 45
D. None of the Above – ANSWER- C. 45
Rationale: Also, notice must state reasons the policy is not to be renewed.
When a business’s personal property values fluctuate, a single, fixed amount of
insurance could produce either over- or under-insurance at any given time. With
this option, the limit of coverage is set at an amount somewhat higher than
expected peak values.
A. Value Reporting
B. Replacement Cost
C. Agreed Value
D. None of the Above – ANSWER- A. Value Reporting
Rationale: Replacement Cost is incorrect b/c it calculates monetary value of one’s
personal property
Liberalization states, “The insured gets the benefit of any broadened coverage if
the company, within __ days of inception, adopts a form revision that is
broader and without increase in premium.”
A. 10 days
B. 55 days
C. 65 days
D. 45 days – ANSWER- D. 45 days
Used to cover buildings in the course of construction:
A. Builders Risk Policy
B. Builders Replacement Policy
C. Construction Replacement Policy
D. None of the Above – ANSWER- A. Builders Risk Policy
Rationale: Includes: structure being built (including foundations), fixtures and
machinery, equipment to service building, owned materials and supplies used for
construction. Temporary structures built or assembled on site are also included if
not covered by insurance.
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FLORIDA PUBLIC ADJUSTING 3-20, FLORIDA 3-20 PUBLIC
ADJUSTER EXAM OUTLINES, FLORIDA 3-20 PUBLIC
ADJUSTERS STATE EXAM (ALL THREE IN ONE) 2023-2024
ACTUAL EXAM 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |AGRADE
Name the endorsement used on the dwelling policy to keep values
current with the replacement cost of the buildings (inflation of
construction costs) – ANSWER- The Automatic Increase Endorsement
What coverage should be added to the Business Owners Coverage Form
if the named insured’s employees use their own vehicles to run errands
when the insured does not have commercial auto coverage? – ANSWERNon-Owned and Hired
What is coverage based on under the commercial property condominium
association form? – ANSWER- Association agreement and bylaws
Name the excluded types of property under the Commercial Building
and Personal Property Form. – ANSWER- Animals (unless for sale)
Autos
Money
The BOP 2010 has extended the time for loss of income under an act of
civil authority. Was is the length of the time? – ANSWER- Four Weeks
How long must all claim files be maintained and available for open and
closed files for the current and the preceding year? – ANSWER- 3 Years
DP-3 only provides damage to covered property caused by: – ANSWERBurglars
The HO-3 policy limits the theft of money to what amount? –
ANSWER- $200.00
In addition to the max coverage under an equipment breakdown
protection policy, what other expenses in addition to the limits of
coverage will the insurer pay? – ANSWER- Legal Fees
What is the prime coverage under flood insurance? – ANSWEROverflow of inland or tidal water
Under the DP-1 basic form what is excluded? – ANSWER- war
earthquake
landslide
Volcanic eruption can be found on which type of policy? – ANSWERThe basic dwelling policy
A Scheduled Personal Property endorsement under a Personal Inland
Marine Policy is usually settled on – ANSWER- ACV or Agreed Mutual
Basis
A Scheduled Personal Property endorsement under a Personal Inland
Marine Policy is usually issued on: – ANSWER- An Open Peril
Which section explains the important terms used throughout the
contract? – ANSWER- Definitions
Under a dwelling broad or special form, what is the maximum that
would be paid for “loss of use”? – ANSWER- 20% of the Dwelling
Coverage
Though multiple parties may be involved in a lawsuit, the opposing
sides are referred to as: – ANSWER- Plaintiff and Defendant
Exclusions under the theft, disappearance and destruction coverage
form. – ANSWER- Fire
Vandalism
Accounting Errors
The theft disappearance and destruction coverage form is designed to
cover – ANSWER- Criminal Activities of customer and others
What is covered by a SP-23 protection and indemnity policy? –
ANSWER- Loss of life, Injury and illness
Collision liabilities including defence costs
Damage to docks, buoys and other structures
When a motor vehicle is sold, transported, or delivered to a salvage
motor vehicle dealer, it must be accompanied by: – ANSWER- Properly
endorsed certificate of title
Salvage certificate of title
Vehicle certificate of destruction
What does the HO Policy Loss of Use cover? – ANSWER- ALE
An equipment dealers coverage form is designed to provide insurance on
- ANSWER- Equipment owned by the insured
Equipment in the insured’s custody for servicing or storage
Equipment entrusted to the insured dealer for sale
What is not included in the calculations for replacement cost coverage? –
ANSWER- (Hidden Items)
Underground pipes
Flues
Wiring
Drains
When is a public adjuster in Florida not Permitted to Solicit an insured
or claimant? – ANSWER- Sunday
FLORIDA 3-20 PUBLIC ADJUSTERS STATE EXAM
2023-2024 ACTUAL EXAM 150 QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES
AGRADE
Actual cause or source of an incidence of destruction, injury, or loss –
ANSWER- Peril
An insurance company organized and domiciled outside the US –
ANSWER- Alien
When there is an unbroken chain of events between an occurrence and a
loss, then the loss is part of the original occurrence – ANSWERProximate Cause
Is proximate cause of all subsequent damages – ANSWER- Original
Occurance
An individual who contracts with an adjusting firm as an independent
contractor and handles claims for the insurance companies – ANSWERIndependent Adjuster
Action or practice of the insured party is permitted to continue because
any defense against a continuation of said action or practice has been
waived by the insurer – ANSWER- Estoppel
Operate for profit, collect premiums, reserve a portion of premiums to
pay claims – ANSWER- Commercial Insurers
Any person who investigates or adjusts losses on behalf of either an
insurer or a self-insured – ANSWER- Independent Adjuster
The result of an insured’s tort or wrongdoing. Consequences of a loss or
amount or type of losses suffered – ANSWER- Damages
Requires the insured to insure the named property for a specific amount
of insurance as required by the insurance company – ANSWER- Agreed
Value
Physical harm to tangible property caused by peril (loss to property or
person in which a covered peril is the proximate cause of damage or
destruction) – ANSWER- Direct loss
The entity that is the “recipient” to the Principal – ANSWER- Obligee
Insurance contracts are written on a take it or leave it basis to the policy
owner. – ANSWER- Adhesion
Event or circumstance that causes damage – ANSWER- Occurance
Coverage provides for payment of losses if civil authority denies access
to the insured premises due to a covered peril – ANSWER- Civil
Authority
Voluntary relinquishment of a known legal right – ANSWER- Waiver
An insurer domiciled outside the state where it writes insurance –
ANSWER- Foreign
A state officer who administers the state’s insurance laws and regulations
- ANSWER- Commissioner
Used as a promise to accept a bid if awarded to a company – ANSWERBid bond
Damaged property an insurer takes over to reduce their loss after paying
a claim – ANSWER- Salvage
Factual statements upon which an insurance policy is based – ANSWERRepresentations
A contract between two parties that offer the consumer little to no
leeway to negotiate the terms of the contract – ANSWER- Contract of
adhesion
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FLORIDA PUBLIC ADJUSTER STATE EXAM 2023-2024
ACTUAL EXAM 230 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |
AGRADE
A personal insurance policy that includes both personal property and
personal liability coverages without endorsement: – ANSWERHomeowners Policy
Under a Commercial Package Policy, how many days does one have to
notify the insurance company of a claim? – ANSWER- The insurer must
notify promptly. The number of days are not specific.
What are the continuing education requirements for public adjusters? –
ANSWER- 24 hours of continuing education (5 hours law and ethics/ 19
hours online approved course by the DFS for public adjusters)
A policy which the policyholder is required to report the values of
insured property to the company at certain intervals is known as a: –
ANSWER- Reporting Form Policy
Reporting form policy requires the insured to insure the property at what
%? – ANSWER- 100%
Reporting form policy requires the insured to report what % of the value
of the insured property? – ANSWER- 100%
Medical Payment Coverage under a homeowner policy excludes: –
ANSWER- anyone living in the insured residence.
Under the BOP, up to how many years can the insurer request to
examine the books and records of an insured? – ANSWER- 3 years
How much are damaged or loss to signs limited to even when it is
attached to the building and considered part of the building? –
ANSWER- $1000
Name a common feature to most property insured under a commercial
inland marine policy. – ANSWER- Usually in Transit
What is an unendorsed commercial building and personal property form,
loss valuation based on? – ANSWER- ACV
Common carriers are responsible for damage to customer goods they
transport except for damage resulting from: – ANSWER- Acts of God
Commercial Property Builders Risk Coverage Form covers: –
ANSWER- Buildings under construction
Foundation of a building under construction
Fixtures, machinery, and equipment used to service the building if they
become a permanent part of the building and are located within 100 feet
of the premises
Under the BOP, how much is paid for pollution clean-up and removal in
case of a covered loss? – ANSWER- $10,000
Every licensee must notify the Department of a change of business
address within: – ANSWER- 30 days
DP-2 virtually excludes all forms of what? – ANSWER- Earth
Movement
What type of coverage provides coverage for all perils, unless that peril
is specifically excluded? – ANSWER- Open Perils
An adjuster in Florida has moved and changed his address without
notifying the Department within the required period of time. What
monetary penalty can be imposed by the Department? – ANSWER- $250
for the first offence and a fine of $500 or suspension or revocation of the
license for a subsequent offence.
What is the common element that links inland marine with ocean marine
risks? – ANSWER- Transportation
Garage policy physical damage covers which specific causes of loss? –
ANSWER- Flood Damage
Vandalism damage
Explosion
The term “theft” is broad enough to cover: – ANSWER- Robbery
Burglary
Larceny
A new, unused vehicle is not required to be inspected prior to obtaining
physical damage insurance coverage if the insurer is provided with: –
ANSWER- the insured can prove to the insurer with a bill of sale that
the vehicle is a new/unused car.
If an appointed agent says a certain claim is covered, the insurer must
cover that claim. The insurer would be prohibited from or estopped from
denying it, even if the policy clearly excluded the claim. This is known
as: – ANSWER- Estoppel
Sprinkler Leakage Insurance does not provide coverage for: –
ANSWER- Growing Crops (Crop insurance is separate)
Personal Property under HO-3 is covered on a – ANSWER- Named Peril
basis
Personal Property under HO-5 is covered on – ANSWER- an open peril
basis
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FLORIDA ADJUSTER LICENSING 2023-2024 ACTUAL EXAM 400
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) | AGRADE
Which of the following statements is true about an insurance policy?
The insured is obligated to the terms of the contract for the entire policy period.
It relies on the utmost good faith of both the insured and the insurer.
It is transferable if the property is sold to another party.
The insured sets the terms of the policy. – ANSWER- It relies on the utmost good
faith of both the insured and the insurer.
In an insurance policy, the summary of what the insurer will do in the event of a
covered loss is called:
the insuring agreement.
the dec page.
the conditions section.
the definitions section. – ANSWER- the insuring agreement.
In a __, only one party is legally obligated to perform.
unilateral contract
conditional contract
contract of adhesion
contract of utmost good faith
unilateral contract – ANSWER- unilateral contract
Insurance policies are unilateral contracts. This means:
only one party has an obligation to perform.
ambiguities are settled in favor of the insured.
they depend on an unknown future event.
they rely on the honesty of both parties. – ANSWER- only one party has an
obligation to perform.
Which of the following is NOT a characteristic of insurance contracts?
Universal
Conditional
Unilateral
Aleatory – ANSWER- Universal
If an adjuster needs to find clarification about what actually constitutes a collision,
in which section of an
insurance policy would she find that information?
Declarations
Exclusions
Conditions
Definitions – ANSWER- Definitions
Which of the following best describes a Fraternal Benefit Society?
A fraternal benefit society is a for-profit provider of insurance.
A fraternal benefit society uses investors’ money to pay claims.
A fraternal benefit society is a social organization based around common interests
and beliefs.
A fraternal benefit society pays dividends to its stockholders. – ANSWER- A
fraternal benefit society is a social organization based around common interests
and beliefs.
Which of the following is NOT a characteristic of social insurance programs?
Social insurance programs are for-profit programs.
Social insurance programs are designed to meet the needs of the general public as a
whole.
The benefits of a social insurance program may be prescribed by federal law.
Social insurance programs involve mandatory participation. – ANSWER- Social
insurance programs are for-profit programs.
When an insurer buys insurance to reduce its exposure to loss, this is called:
mitigation.
loss reduction.
co-insurance.
re-insurance. – ANSWER- re-insurance.
Frank purchases an automobile policy from publicly-traded XYZ Insurance. He
pays regular monthly
premiums, and also purchases stock in XYZ and receives dividends when the
company turns a profit. From
which type of company has Frank purchased insurance?
Re-Insurer
Reciprocal insurer
Mutual insurer
Stock insurer – ANSWER- Stock insurer
Xavier owns a small insurance company. Recently the company won a bid to
insure a new housing
development in Omaha, NE. His company can handle any claims that arise, but if a
series of tornados were
to tear through the area and destroy the entire development, Xavier’s company
would suffer financially.
Which type of insurer could help Xavier’s company protect itself the most from
this potential loss?
A re-insurer
A fraternal benefits society
A stock insurer
A reciprocal insurance group – ANSWER- A re-insurer
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a
publicly traded company, and
Cindy can participate in the election of the board, receiving dividends if the
company does well. Sine Nomine
Insurance could be best described as a:
a risk retention group.
fraternal benefits society.
stock insurance company.
mutual insurance company. – ANSWER- mutual insurance company.
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FLORIDA CLAIMS ADJUSTER EXAM, 6-20 ALL LINES
ADJUSTER- FLORIDA REVIEW 2023-2024 ACTUAL
EXAM 350 QUESTIONS AND CORRECT DETAILED
ANSWERS|ALREADY GRADED A+
Which of the following is not a duty of the claims adjuster?
Select one:
A. Investigating
B. Evaluating
C. Negotiating
D. Counseling
Counseling
The adjuster’s duty to the insurer is best described as?
Select one:
A. Friendly
B. Factual
C. Fun
D. Fiduciary
Fiduciary
Errors and Omissions claims are a result of?
Select one:
A. unethical behavior
B. lack of knowledge or information
C. Both unethical behavior and lack of knowledge or information are correct
D. Neither unethical behavior and lack of knowledge or information are correct
Both unethical behavior and lack of knowledge or information are correct
Unethical behavior affects?
Select one:
A. The claimant
B. The adjuster
C. All of the above
D. The entire company
All of the above
All of the following are components of negotiating EXCEPT?
Select one:
A. The issue should be negotiable
B. There must be an exchange of value for value
C. The parties should trust each other
D. The claimant must be satisfied
The claimant must be satisfied
The Civil Remedies Provision of the Insurance Code states that adjusters should
not?
Select one:
A. Handle claims in a prompt manner
B. Accompany claims payments with statements explaining coverage
C. Settle claims in good faith
D. Try to influence settlements
Try to influence settlements
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. 10/20/10
B. 20/40/10
C. No coverage
D. 20/40/20
20/40/10
Under a PAP, when does the insurance company cease to defend the insured?
Select one:
A. The insurance company is not obligated to defend the insured
B. After the case has been resolved
C. When the policy limit is exhausted
D. At the policy’s expiration
When the policy limit is exhausted
The Florida Financial Responsibility Law is triggered by?
Select one:
A. Registration of the vehicle
B. Purchase of the vehicle
C. An accident involving bodily injury or property damage
D. Purchase of an auto policy
An accident involving bodily injury or property damage
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. $11,200
B. $12,400
C. $9,600
D. $10,000
$10,000
Trucker insurance premiums are based on all EXCEPT?
Select one:
A. Radius
B. Age of the driver
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