FLORIDA CLAIMS ADJUSTER EXAM
WITH CORRECT QUESTIONS AND
ANSWERS
Frank2owned2a2home2that2was2destroyed2by2a2hurricane.2Both2ABC2and2XYZ2Banks2w
ere2listed2as2additional2interests2on2his2homeowner2policy.2The2insurance2company2will
2make2a2payment2to:2
A.2The2first2mortgagee,2ABC
B.2The2Insured
C.2Jointly2to2ABC2and2XYZ
D.2All2listed2interests2-2answer-D.2All2listed2interests
Remember2that2the2insurer2is2not2responsible2to2know2the2degrees2of2interest.2In2the2e
vent2of2a2loss,2one2payment2is2made2by2the2insurer2and2it2is2up2to2the2additional2interes
ts2on2working2out2their2share.
Insurance2applies2separately2to2each2insured2as2if2other2insureds2did2not2exist.2This2is2
defined2as:
A.2Severability
B.2Conditional
C.2Warranty
D.2None2of2the2above2-2answer-A.2Severability
Property2insurance2policies2usually2contain2a(n)2__________2clause,2stating2the2insure
d2cannot2dump2damaged2property2on2the2insurer2and2demand2its2full2value:
A.2Pro2Rata
B.2Abandonment
C.2Liberalization
D.2All2of2the2above2-2answer-B.2Abandonment
A(n)2__________2is2one2wherein2economic2loss2would2be2suffered2from2an2adverse2ha
ppening2to2the2subject:
A.2Conditional2Contract
B.2Personal2Contract
C.2Economic2Contract
D.2Insurable2Interest2-2answer-D.2Insurable2Interest
States2that2if2the2insurer2adopts2a2revision2which2would2broaden2coverage2without2addit
ional2premium2within2some2period2of2time2prior2to2the2policy2period2or2during2the2policy2
period,2the2insured2receives2the2benefit2of2such2broadened2coverage.
A.2Cancellation2Clause
B.2Policy2Period
C.2Pro2Rata
D.2Liberalization2-2answer-D.2Liberalization
The2time2frame2is2typically2602days.
,The2__________2states2that2when2there2is2an2unbroken2connection2between2an2occurr
ence2and2damage2that2grows2out2of2the2occurrence,2then2the2resultant2damage2is2all2a2
part2of2the2occurrence.
A.2Doctrine2of2Proximate2Cause
B.2Doctrine2of2Perils2&2Hazards
C.2Insurance2Policy2Handbook
D.2Doctrine2of2Property2Insurance2-2answer-A.2Doctrine2of2Proximate2Cause
For2example,2if2a2property2insurance2policy2covers2the2peril2of2fire2but2further2damage2i
s2caused2by2smoke,2water2used2to2extinguish,2and2the2process2of2moving2property2awa
y2-2fire2is2considered2to2be2the2*proximate2cause*2of2all2of2the2damage.
The2Loss2Settlement2Valuation2that2subtracts2an2allowance2for2depreciation2is2defined2
as?
A.2Actual2Cash2Value
B.2Replacement2Cost
C.2"Old2for2New"
D.2None2of2the2Above2-2answer-A.2Actual2Cash2Value
A2policy2condition,2either2based2on2information2in2the2insured's2application2or2inserted2b
y2the2insurer,2is2defined2as:
A.2Warranty
B.2Misrepresentation
C.2Concealment
D.2None2of2the2Above2-2answer-A.2Warranty
The2following2are2basic2characteristics2of2a2property2or2liability2insurance2contract,2exce
pt:
A.2Personal2Contract
B.2Conditional2Contract
C.2Loss2of2Settlement2Contract
D.2Contract2of2Adhesion2-2answer-C.2Loss2of2Settlement2Contract
The2Insurer's2responsibility2to2pay2for2a2property2loss2may2be2conditioned2on2the2insure
d2having2used2reasonable2means2to2avoid2the2loss,2to2protect2the2property2against2furt
her2loss,2and2to2give2the2insurer2proof2of2the2loss2is2defined2as?
A.2Conditional2Contract
B.2Adhesion2Contract
C.2Indemnity2Contract
D.2All2of2the2Above2-2answer-A.2Conditional2Contract
"may2be2conditioned"
Which2of2the2following2is2not2one2of2the2"Thresholds"2in2the2"No-Fault"2law?
A.2Death2of2the2Insured
B.2Temporary2Injury2of2the2Insured
C.2A2permanent2loss2of2a2bodily2function
,D.2Permanent2scarring2on2the2face2of2the2insured2-2answer-
B.2Temporary2Injury2of2the2Insured
Also2included:2permanent2injury2other2than2scarring2and2disfigurement
Under2Mechanical2Breakdown2Coverage,2new2cars2are2eligible2for2service2up2to:
A.2362Months/36,0002Miles
B.2242Months/36,0002Miles
C.212,0002Months/12,0002Miles
D.2122Months/36,0002Miles2-2answer-A.2362Months/36,0002Miles
Used2vehicles:2122Months/12,0002Miles
If2financial2responsibility2doesn't2exist2at2the2time2of2an2accident,2which2of2the2following2
things2must2happen2to2avoid2penalties?
A.2The2legally2valid2claims2of2others2must2be2satisfied2(up2to210/20/10)
B.2The2owner2and2operator2must2provide2certification2of2future2responsibility2for2future2a
ccidents
C.2Both2A2&2B
D.2None2of2the2Above2-2answer-C.2Both2A2&2B
As2to2required2proof2for2future2accidents2by2purchase2of2auto2liability2insurance,2the2ins
urer2must2make2a2filing2(Form2SR-
22)2certifying2that2coverage2is2in2effect,2and2this2certification2must2remain2on2file2for2__
________2years:2
A.21
B.23
C.24
D.222-2answer-B.23
The2Business2Automobile2Policy2includes2all2of2the2following2coverage2forms2except:
A.2The2Garage2Coverage2Form
B.2The2Trailer2Interchange2Coverage2Form
C.2The2Truckers2Coverage2Form
D.2The2Business2Auto2Coverage2Form2-2answer-
B.2The2Trailer2Interchange2Coverage2Form
Personal2Injury2Protection,2or2PIP,2has2a2__________2per2person,2per2accident2limit.
A.210,000
B.220,000
C.21,000
D.2Depends2on2the2damaged2property2-2answer-A.210,000
Used2to2insure2businesses2engaged2in2selling,2servicing,2repairing,2parking2or2storing2a
utomobiles:
A.2Servicing2Coverage2Form
B.2Garage2Coverage2Form
C.2Truckers2Coverage2Form
, D.2None2of2the2Above2-2answer-B.2Garage2Coverage2Form
The2following2examples2are2referred2to2as2__________2liability2limits:225/50/252or210/2
0/10.
A.2Split
B.2Single
C.2Straight
D.2None2of2the2Above2-2answer-A.2Split
10/20/102=2
10,0002per2person2injured
20,0002all2injuries2combined
10,0002property2damage
Example2of2straight2liability2limit2=2$30,000
Jeremy2has2a2not2at2fault2accident.2If2he2has2PIP2with2a2$1,0002deductible,2how2much2c
an2he2expect2his2PIP2coverage2to2pay2toward2his2medical2bills2that2total2$3,000?
A.2$1,600
B.2$1,000
C.2$2,400
D.2$3,0002-2answer-A.2$1,600
30002(bills)2-210002(deductible)2=2
20002x2.802(eighty2percent)
Frank2has2a2not-at-
fault2accident,2he2has2basic2PIP,2no2deductible2and2Med2pay2of2$5,000.2How2much2will2
his2Med2Pay2contribute2to2medical2bills2of2$15,000?
A.2$15,000
B.2$5,000
C.2$3,000
D.2$0,2Frank2is2not-at-fault2-2answer-B.2$5,000
Medical2Payment2limits2apply2per2person;2Frank2will2receive2full2amount2towards2medic
al2bills.
Which2of2the2following2is2not2one2of2the2rating2factors2for2a2Homeowner's2Policy?
A.2Type2of2Construction
B.2Location2of2Risk
C.2Age2&2Gender2of2Insured
D.2Proximity2to2Fire2Department2-2answer-C.2Age2&2Gender2of2Insured
On2a2Homeowner's2Policy,2covers2items2that2are2not2permanently2attached2to2the2dwell
ing.2This2is2defined2as:
A.2Other2Structures
B.2Excess2Structures
C.2Personal2Property
D.2Dwelling2-2answer-A.2Other2Structures
Examples2include2sheds,2fences,2pool2houses,2detached2car2ports,2etc.
WITH CORRECT QUESTIONS AND
ANSWERS
Frank2owned2a2home2that2was2destroyed2by2a2hurricane.2Both2ABC2and2XYZ2Banks2w
ere2listed2as2additional2interests2on2his2homeowner2policy.2The2insurance2company2will
2make2a2payment2to:2
A.2The2first2mortgagee,2ABC
B.2The2Insured
C.2Jointly2to2ABC2and2XYZ
D.2All2listed2interests2-2answer-D.2All2listed2interests
Remember2that2the2insurer2is2not2responsible2to2know2the2degrees2of2interest.2In2the2e
vent2of2a2loss,2one2payment2is2made2by2the2insurer2and2it2is2up2to2the2additional2interes
ts2on2working2out2their2share.
Insurance2applies2separately2to2each2insured2as2if2other2insureds2did2not2exist.2This2is2
defined2as:
A.2Severability
B.2Conditional
C.2Warranty
D.2None2of2the2above2-2answer-A.2Severability
Property2insurance2policies2usually2contain2a(n)2__________2clause,2stating2the2insure
d2cannot2dump2damaged2property2on2the2insurer2and2demand2its2full2value:
A.2Pro2Rata
B.2Abandonment
C.2Liberalization
D.2All2of2the2above2-2answer-B.2Abandonment
A(n)2__________2is2one2wherein2economic2loss2would2be2suffered2from2an2adverse2ha
ppening2to2the2subject:
A.2Conditional2Contract
B.2Personal2Contract
C.2Economic2Contract
D.2Insurable2Interest2-2answer-D.2Insurable2Interest
States2that2if2the2insurer2adopts2a2revision2which2would2broaden2coverage2without2addit
ional2premium2within2some2period2of2time2prior2to2the2policy2period2or2during2the2policy2
period,2the2insured2receives2the2benefit2of2such2broadened2coverage.
A.2Cancellation2Clause
B.2Policy2Period
C.2Pro2Rata
D.2Liberalization2-2answer-D.2Liberalization
The2time2frame2is2typically2602days.
,The2__________2states2that2when2there2is2an2unbroken2connection2between2an2occurr
ence2and2damage2that2grows2out2of2the2occurrence,2then2the2resultant2damage2is2all2a2
part2of2the2occurrence.
A.2Doctrine2of2Proximate2Cause
B.2Doctrine2of2Perils2&2Hazards
C.2Insurance2Policy2Handbook
D.2Doctrine2of2Property2Insurance2-2answer-A.2Doctrine2of2Proximate2Cause
For2example,2if2a2property2insurance2policy2covers2the2peril2of2fire2but2further2damage2i
s2caused2by2smoke,2water2used2to2extinguish,2and2the2process2of2moving2property2awa
y2-2fire2is2considered2to2be2the2*proximate2cause*2of2all2of2the2damage.
The2Loss2Settlement2Valuation2that2subtracts2an2allowance2for2depreciation2is2defined2
as?
A.2Actual2Cash2Value
B.2Replacement2Cost
C.2"Old2for2New"
D.2None2of2the2Above2-2answer-A.2Actual2Cash2Value
A2policy2condition,2either2based2on2information2in2the2insured's2application2or2inserted2b
y2the2insurer,2is2defined2as:
A.2Warranty
B.2Misrepresentation
C.2Concealment
D.2None2of2the2Above2-2answer-A.2Warranty
The2following2are2basic2characteristics2of2a2property2or2liability2insurance2contract,2exce
pt:
A.2Personal2Contract
B.2Conditional2Contract
C.2Loss2of2Settlement2Contract
D.2Contract2of2Adhesion2-2answer-C.2Loss2of2Settlement2Contract
The2Insurer's2responsibility2to2pay2for2a2property2loss2may2be2conditioned2on2the2insure
d2having2used2reasonable2means2to2avoid2the2loss,2to2protect2the2property2against2furt
her2loss,2and2to2give2the2insurer2proof2of2the2loss2is2defined2as?
A.2Conditional2Contract
B.2Adhesion2Contract
C.2Indemnity2Contract
D.2All2of2the2Above2-2answer-A.2Conditional2Contract
"may2be2conditioned"
Which2of2the2following2is2not2one2of2the2"Thresholds"2in2the2"No-Fault"2law?
A.2Death2of2the2Insured
B.2Temporary2Injury2of2the2Insured
C.2A2permanent2loss2of2a2bodily2function
,D.2Permanent2scarring2on2the2face2of2the2insured2-2answer-
B.2Temporary2Injury2of2the2Insured
Also2included:2permanent2injury2other2than2scarring2and2disfigurement
Under2Mechanical2Breakdown2Coverage,2new2cars2are2eligible2for2service2up2to:
A.2362Months/36,0002Miles
B.2242Months/36,0002Miles
C.212,0002Months/12,0002Miles
D.2122Months/36,0002Miles2-2answer-A.2362Months/36,0002Miles
Used2vehicles:2122Months/12,0002Miles
If2financial2responsibility2doesn't2exist2at2the2time2of2an2accident,2which2of2the2following2
things2must2happen2to2avoid2penalties?
A.2The2legally2valid2claims2of2others2must2be2satisfied2(up2to210/20/10)
B.2The2owner2and2operator2must2provide2certification2of2future2responsibility2for2future2a
ccidents
C.2Both2A2&2B
D.2None2of2the2Above2-2answer-C.2Both2A2&2B
As2to2required2proof2for2future2accidents2by2purchase2of2auto2liability2insurance,2the2ins
urer2must2make2a2filing2(Form2SR-
22)2certifying2that2coverage2is2in2effect,2and2this2certification2must2remain2on2file2for2__
________2years:2
A.21
B.23
C.24
D.222-2answer-B.23
The2Business2Automobile2Policy2includes2all2of2the2following2coverage2forms2except:
A.2The2Garage2Coverage2Form
B.2The2Trailer2Interchange2Coverage2Form
C.2The2Truckers2Coverage2Form
D.2The2Business2Auto2Coverage2Form2-2answer-
B.2The2Trailer2Interchange2Coverage2Form
Personal2Injury2Protection,2or2PIP,2has2a2__________2per2person,2per2accident2limit.
A.210,000
B.220,000
C.21,000
D.2Depends2on2the2damaged2property2-2answer-A.210,000
Used2to2insure2businesses2engaged2in2selling,2servicing,2repairing,2parking2or2storing2a
utomobiles:
A.2Servicing2Coverage2Form
B.2Garage2Coverage2Form
C.2Truckers2Coverage2Form
, D.2None2of2the2Above2-2answer-B.2Garage2Coverage2Form
The2following2examples2are2referred2to2as2__________2liability2limits:225/50/252or210/2
0/10.
A.2Split
B.2Single
C.2Straight
D.2None2of2the2Above2-2answer-A.2Split
10/20/102=2
10,0002per2person2injured
20,0002all2injuries2combined
10,0002property2damage
Example2of2straight2liability2limit2=2$30,000
Jeremy2has2a2not2at2fault2accident.2If2he2has2PIP2with2a2$1,0002deductible,2how2much2c
an2he2expect2his2PIP2coverage2to2pay2toward2his2medical2bills2that2total2$3,000?
A.2$1,600
B.2$1,000
C.2$2,400
D.2$3,0002-2answer-A.2$1,600
30002(bills)2-210002(deductible)2=2
20002x2.802(eighty2percent)
Frank2has2a2not-at-
fault2accident,2he2has2basic2PIP,2no2deductible2and2Med2pay2of2$5,000.2How2much2will2
his2Med2Pay2contribute2to2medical2bills2of2$15,000?
A.2$15,000
B.2$5,000
C.2$3,000
D.2$0,2Frank2is2not-at-fault2-2answer-B.2$5,000
Medical2Payment2limits2apply2per2person;2Frank2will2receive2full2amount2towards2medic
al2bills.
Which2of2the2following2is2not2one2of2the2rating2factors2for2a2Homeowner's2Policy?
A.2Type2of2Construction
B.2Location2of2Risk
C.2Age2&2Gender2of2Insured
D.2Proximity2to2Fire2Department2-2answer-C.2Age2&2Gender2of2Insured
On2a2Homeowner's2Policy,2covers2items2that2are2not2permanently2attached2to2the2dwell
ing.2This2is2defined2as:
A.2Other2Structures
B.2Excess2Structures
C.2Personal2Property
D.2Dwelling2-2answer-A.2Other2Structures
Examples2include2sheds,2fences,2pool2houses,2detached2car2ports,2etc.
