FLORIDA CERTIFIED ADJUSTER
PRE-LICENSING QUESTIONS WITH
COMPLETE SOLUTIONS
A Discovery Form Commercial Crime policy can
apply to losses discovered during the policy period,
as well as up to how many days after its expiration
date? - correct answer - A Discovery Form
Commercial Crime policy can apply to losses
discovered during the policy period, as well as up
to 60 days after its expiration date.
A dwelling policy would NOT be appropriate for:
A. a duplex owned by an individual.
B. a single-family home wholly rented out.
C. a four-plex owned by a corporation.
D. a motorhome owned by an individual. - correct
answer - D. a motorhome owned by an individual.
A few weeks ago Christopher's garage was
destroyed by an out-of-control motorist.
Fortunately, the motorist had sufficient liability
,insurance to cover the damages. However, the
insurer insists that Christopher's garage is worth
far less than the appraisals he has received from
contractors. Christopher and the insurer have gone
back and forth in negotiations for weeks, making
little headway. Christopher decides it's time to: -
correct answer - issue a complaint against the
policyholder
A fire in Sarah's factory causes her to shut the
factory doors for 50 days. To limit her loss of
income and keep production going, Sarah spends
$125,000 renting equipment and another building.
Sarah's commercial property policy doesn't have
Business Income Coverage, but it does include
Extra Expense Coverage. The limit on her Extra
Expense coverage is $100,000 and she has Limits
of Loss Payment of 40%/80%/100% during her
period of restoration. How much indemnification
will Sarah receive for her extra expenses? -
correct answer - Since it took more than 30 days
but fewer than 60 days for repairs to be completed,
her Extra Expenses coverage will pay up to 80% of
the limit ($100,000) which comes to $80,000.
,A Florida company that is assigned to "Tier 2" for
coverage under FWCJUA must pay: - correct
answer - rates that are 50% higher than voluntary
market rates.
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: - correct answer
- dwelling policy
A processing and servicing company would qualify
for a BOP only if they have less than _____ in
annual revenues. - correct answer - $3 million
A reciprocal insurer is: - correct answer - an
unincorporated organization of subscribers that
operates through an attorney-in-fact to provide
insurance benefits for its members.
A Reservation of Rights letter is sent by:
A. the claimant.
, B. the insurance company.
C. the claimant's lawyer.
D. the insurance broker. - correct answer - B. the
insurance company.
A short circuit in one of the refrigeration units in
the Ice Queen ice cream shop sparked a fire that
severely damaged the shop, and it had to shut
down for two months while repairs were made.
What type of additional coverage would indemnify
the Ice Queen for the lost income during these two
months? - correct answer - Business Interruption
Coverage
According to the "Definitions" section of a Personal
Auto Policy, which of the following is NOT
"occupying" her vehicle?
A. Rachel leaves her cat in her car, with the
windows cracked, while she goes into the drugstore
to fill a prescription.
B. Trishey is leaning on her car during a lunch
break while she eats her lunch.
PRE-LICENSING QUESTIONS WITH
COMPLETE SOLUTIONS
A Discovery Form Commercial Crime policy can
apply to losses discovered during the policy period,
as well as up to how many days after its expiration
date? - correct answer - A Discovery Form
Commercial Crime policy can apply to losses
discovered during the policy period, as well as up
to 60 days after its expiration date.
A dwelling policy would NOT be appropriate for:
A. a duplex owned by an individual.
B. a single-family home wholly rented out.
C. a four-plex owned by a corporation.
D. a motorhome owned by an individual. - correct
answer - D. a motorhome owned by an individual.
A few weeks ago Christopher's garage was
destroyed by an out-of-control motorist.
Fortunately, the motorist had sufficient liability
,insurance to cover the damages. However, the
insurer insists that Christopher's garage is worth
far less than the appraisals he has received from
contractors. Christopher and the insurer have gone
back and forth in negotiations for weeks, making
little headway. Christopher decides it's time to: -
correct answer - issue a complaint against the
policyholder
A fire in Sarah's factory causes her to shut the
factory doors for 50 days. To limit her loss of
income and keep production going, Sarah spends
$125,000 renting equipment and another building.
Sarah's commercial property policy doesn't have
Business Income Coverage, but it does include
Extra Expense Coverage. The limit on her Extra
Expense coverage is $100,000 and she has Limits
of Loss Payment of 40%/80%/100% during her
period of restoration. How much indemnification
will Sarah receive for her extra expenses? -
correct answer - Since it took more than 30 days
but fewer than 60 days for repairs to be completed,
her Extra Expenses coverage will pay up to 80% of
the limit ($100,000) which comes to $80,000.
,A Florida company that is assigned to "Tier 2" for
coverage under FWCJUA must pay: - correct
answer - rates that are 50% higher than voluntary
market rates.
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: - correct answer
- dwelling policy
A processing and servicing company would qualify
for a BOP only if they have less than _____ in
annual revenues. - correct answer - $3 million
A reciprocal insurer is: - correct answer - an
unincorporated organization of subscribers that
operates through an attorney-in-fact to provide
insurance benefits for its members.
A Reservation of Rights letter is sent by:
A. the claimant.
, B. the insurance company.
C. the claimant's lawyer.
D. the insurance broker. - correct answer - B. the
insurance company.
A short circuit in one of the refrigeration units in
the Ice Queen ice cream shop sparked a fire that
severely damaged the shop, and it had to shut
down for two months while repairs were made.
What type of additional coverage would indemnify
the Ice Queen for the lost income during these two
months? - correct answer - Business Interruption
Coverage
According to the "Definitions" section of a Personal
Auto Policy, which of the following is NOT
"occupying" her vehicle?
A. Rachel leaves her cat in her car, with the
windows cracked, while she goes into the drugstore
to fill a prescription.
B. Trishey is leaning on her car during a lunch
break while she eats her lunch.
