FLORIDA ADJUSTER ALL LINES EXAM QUESTIONS

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FLORIDA ADJUSTER ALL LINES EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -18 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: What is the primary difference between a staff adjuster and an independent adjuster?

Answer:

A staff adjuster works for an insurance company and an independent adjuster works independently for themselves or for adjusting firms who represent many clients Question 2: A claim in the property/casualty industry is defined as:

Answer:

An assertion of an alleged legal right against a person, entity, company or insurer that carries with it a demand for money as compensation for injuries or damage Question 3: Which of the following would not be a preferred claims practice or behavior under Florida's Unfair Insurance Trade Practices Act?

Answer:

Not responding to an insureds calls because you haven't made up your mind yet Question 4: The basic and primary functions of an adjuster are:

Answer:

Investigating, managing, evaluating, reporting on, and negotiating and disposing of claims

Question 5: The doctrine of proximate cause is defined as:

Answer:

if there is an unbroken chain of events, or series of sequences, flowing from the initial loss caused by the Insured peril to a subsequent loss, the insured peril causing the initial loss will be considered the "proximate cause" of the subsequent loss.Question 6: The fundamental difference in adjusting claims in the healthcare industry and in the

property/casualty (i.e. worker's compensation, liability, etc. ) industry is:

Answer:

The relative degree of legalism involved. To adjust claims in the property and casualty industry one must have a sound foundation and understanding of various legal doctrines and issues Question 7: When you purchase insurance, you are buying:

Answer:

Peace of mind that if an insured event does occur, that the insurance company will keep its promise and provide the financial protection that you purchased Question 8: An adjuster's responsibility as a fiduciary means:

Answer:

The adjuster represents and controls the property and financial interests of the client to whom he/she owes a high degree of loyalty and good faith Question 9: One of the most important claim handling goals of an Insurance Company is:

Answer:

To help those who have been injured or who have suffered loss for which the insured is responsible, while at the same time minimizing loss for the insured party and carrier Question 10: Describe the coverages provided in a split limit policy of 10/20/10

Answer:

The coverage provides up to $10,000 of liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals, and $10,000 for property damage Question 11: Once an adjuster is licensed he or she must maintain a continuing education requirement. Select from the following an adjuster's compliance requirement in order to stay

licensed:

Answer:

A newly licensed adjuster must complete 24 hours of continuing education in every two year compliance

period, of which 5 hours must be taken in a properly certified 5 Hour Law & Ethics Update course Question 12: The Adjuster's Code of Ethics starts with a basic premise which states:

Answer:

The work of adjusting engages the public trust Question 13: Negligence is described as:

Answer:

Fault that arises from doing something you shouldn't have done, or not doing something you should have done Question 14: In todays society the most important factor in the purchase of insurance is:

Answer:

Trust Question 15: Which of the following is NOT an example of " compensatory damages":

Answer:

A jury verdict of $1,000,000 against the defendant to punish them for their reprehensible actions in causing the loss

Question 16: Describe the difference between a peril and a hazard

Answer:

A peril is a cause of loss, like fire. A hazard is a condition that exists beforehand that increases the likelihood of such a loss like a messy storeroom or garage that conditions tons of toxic chemicals oily rags, etc Question 17: Breach of contract by a carrier or its adjuster, through non-payment or non-compliance with policy requirements, could have which of the following consequences for

a carrier ( select one from the following):

Answer:

If found guilty of a breach of contract the carrier could be punished with a "bad faith" verdict that would cost it millions of dollars Question 18: An insurance policy is often referred to as a contract of adhesion. This means:

Answer:

If any of the wondering or language in the policy is vague or ambiguous, if the meaning of the wording is difficult to understand or interpret or if what is written can be interpreted to have different meanings the law is well settled that the interpretation shall be in favor of the party who did not control its term....in this

case, the policyholder