QUESTIONS AND CORREC T ANSWERS -

Florida Adjuster licensing ACTUAL TESTBANK 500

QUESTIONS AND CORREC T ANSWERS -

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While driving, Ben was struck by another driver, Roxanne. Ben then filed a claim with Roxanne's insurer. In essence, what was Ben doing when he filed this claim?Alerting Roxanne's insurer of his intent to take the case to court Submitting a formal request to settle the damages with Roxanne's insurer Ordering Roxanne's insurer to pay for his damages within 15 days Admitting he was actually "at fault" - CORRECT ANSWER-Submitting a formal request to settle the damages with Roxanne's insurer

Mark is on vacation in Italy when his luggage is stolen, including a $2,000 laptop, a $500 suitcase, and $400 in clothes. Mark has an HO-3 homeowners policy. Excluding any applicable deductible, which of the following statements is TRUE?Mark's homeowners policy will cover $2,000 of this loss.Mark's homeowners policy will cover $2,400 of this loss Mark's homeowners policy will cover the entire $2,900 loss.Mark's homeowners policy will not cover any of this loss because he was outside the US. - CORRECT ANSWER-Mark's homeowners policy will cover $2,400 of this loss

Craig has an HO-3 policy covering his primary residence with a Coverage A limit of $250,000, Coverage B limit of $25,000, and a Coverage C limit of $150,000. Craig also has a cabin on the lake, which was burglarized. The thieves stole much of the cabin's contents, for a total loss of $18,500.Ignoring any deductibles, how much will Craig's HO-3 policy pay for this claim?

$15,000

$2,500

$0

$18,500 - CORRECT ANSWER-$15,000

During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the replacement of the tree and bushes that were damaged by the windstorm?

$0 1 / 4

$1,000

$1,500

$500 - CORRECT ANSWER-$0

Which of the following homeowners policies provide coverage on an open-peril basis for personal property without endorsement?HO-3 and HO-5 HO-2 and HO-3 HO-8

HO-5 - CORRECT ANSWER-HO-5

Susan is insured with a homeowners policy. After someone destroyed her late husband's gravestone with a vehicle, Susan filed a claim against her homeowners policy. Which of the following statements is TRUE?With Grave Marker coverage, Susan can receive a maximum of $2,500 to pay for the damaged gravestone.Even with Grave Marker coverage, Susan will receive no indemnification because damage caused by vehicles is not a covered peril.Susan will receive no indemnification because damage to gravestones can not be covered by homeowners insurance, and there is no such thing as Grave Marker coverage.With Grave Marker coverage, Susan can receive a maximum of $5,000 to pay for the damaged gravestone. - CORRECT ANSWER-With Grave Marker coverage, Susan can receive a maximum of $5,000 to pay for the damaged gravestone.

Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to his home.During this time, he has spent $3,000 in hotel expenses, on top of his monthly mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage D - Loss of Use?$850

$3,850

$3,000

$0 - CORRECT ANSWER-$0

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Bill's new home is in the final stages of construction, and he has purchased an HO-2 policy to insure his financial interest in the property. This morning, Bill's contractor calls to tell him that an electrical fire has destroyed his new kitchen, and all of the crown molding that was supposed to be installed today has been stolen. It will be $15,000 to rebuild the kitchen and another $4,200 to replace the trim. How will Bill's insurer respond when he files a claim?His insurer will pay $4,200 for the stolen trim and nothing for the kitchen.His insurer will pay $15,000 to rebuild the kitchen and nothing for the stolen trim His insurer will deny the claim because the house was still under construction.His insurer will pay $19,200 for the entire amount of the loss. - CORRECT ANSWER-His insurer will pay $15,000 to rebuild the kitchen and nothing for the stolen trim

Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks down Sally's back door to get into her kitchen for a snack. When Sally comes home to find the damage, she files a claim with her insurance company. Will the damage to Sally's home be covered, and why or why not?Yes. The HO-3 is an open-peril policy, without an exclusion for wildlife.Yes. Wildlife is a commonly named-peril found on all homeowner's policies.No. Since Sally did not take reasonable efforts to run the bear off, no damages may be covered.No. "Bear-Entry" is not listed as a named peril in Sally's HO-3 policy. - CORRECT ANSWER-Yes. The HO-3 is an open-peril policy, without an exclusion for wildlife.

Which of the following is NOT eligible for Dwelling coverage?A duplex owned by a corporation A mobile home on a permanent foundation An 8-unit apartment building in which the owner resides A single-family home that is wholly rented out - CORRECT ANSWER-An 8-unit apartment building in which the owner resides

Stephanie owns a house that she rents out for $2,500 a month. A massive kitchen fire forces her tenants to move out while the interior is overhauled. After two months, the repairs are complete, and Stephanie contacts her tenants, only to find that they've found a new place to live. It takes Stephanie another month and a half to find new tenants. Assuming that Stephanie had a $100,000 DP-2 policy, what is the maximum amount she could receive for lost rental income under Coverage

D? 3 / 4

$8,750

$5,000

$2,500

$7,500 - CORRECT ANSWER-$5,000

A dryer fire scorches the interior of Bill's home, forcing him to move out while repairs are made. In addition to paying for temporary housing, he also loses the rental income he received from his roommate Frank.Which two Dwelling policy coverages could help Bill with the lost rental income AND his additional living expenses?Coverage D & Coverage E Coverage C & Coverage D Coverage A & Coverage D Coverage A & Coverage E - CORRECT ANSWER-Coverage D & Coverage E

Dwelling policies cover:

rental properties only.liability only.property only.property, and liability with an endorsement. - CORRECT ANSWER-property, and liability with an endorsement.

A dwelling policy would NOT be appropriate for:

a single-family home wholly rented out.a motorhome owned by an individual.a duplex owned by an individual.a four-plex owned by a corporation. - CORRECT ANSWER-a motorhome owned by an individual.

A large corporation owns a small hunting cabin in the woods, that it uses for occasional weekend

getaways. The corporation can insure the cabin against property damage with a:

dwelling policy.Standard Fire Policy.homeowners policy.

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