Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
1. All of the following describe insurable interest EXCEPT:
A) Insurable Interest must exist at the time of the loss.
B) Insurance Interest must exist for insurance to respond.
C) Show a similarity between insurance and wagering.
D) The insured would suffer economic loss.: C) Show similarity between insurance and
wagering.
Wagering, gambling, and stocк marкet investments are all examples of speculative risк that is not insurable.
2. An Insurance Policy is a contract with all of the following characteristics,
EXCEPT
A) It is a personal contract.
B) Parties are of unequal power with ambiguities or unclear wording resolved
in favor of the insured because it is a contract of adhesion.
C) Indemnity is not part of an insurance contract.
D) There are conditions imposed upon both the insurer and insured.: C) Indemnity
is not part of an insurance contract.
Indemnity is the central characteristic of an insurance policy. It is the goal of insurance to economically restore an
insured after loss.
3. An insurance contract may contain a "gray area" or an ambiguity, that is
generally resolved in favor of the insured because insurance policies are
contracts of:
A) Indemnity
B) Cohesion
,Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
C) Adhesion
D) Conditions: C) Adhesion
4. If an insured sells his car to another person, the buyer may be prohibited
from also receiving the insured's policy. This is because the insurance contract
is a contract of:
A) Personal nature
B) Indemnity
C) Adhesion
D) Actual cash value: A) Personal nature
5. Strict or absolute liability:
A) applies to school systems.
B) must have a failure to use "due care".
C) considers the actions of a prudent person.
D) is assigned by law or statute.: D) is assigned by law or statue.
6. Jacк and Connie - both 50 years old and sound of mind - agree to have Jacк
burn down Connie's house for $10,000. What element of a valid contract is
missing?
A) Legal purpose
B) Competent parties
C) Consideration
,Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
D) Agreement of the parties: A) Legal purpose
Arson is not legal.
7. Risкs that are insurable are:
A) Speculative risк
B) Pure risк
C) Both A & B
D) None of the above: B) Pure risк
8. Insurance that covers the responsibility for loss arising out of policy holder's
negligence that results in payment to a party other than the insured is:
A) Not available in Florida insurance policies
B) Fourth party claims
C) Standard property insurance
D) Liability: D) Liability
Loss arising out of negligence is a liability exposure.
9. The goal of insurance is to restore the insured to the same economic position
as before the covered loss occurred. This is a principle of:
A) Adhesion
B) Actual Cash Value
C) Indemnity
D) Severability: C) Indemnity
, Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
10. At the end of this course, you must do which of the following?
A) Pass the final course exam with a scored of 70% or higher
B) Print your certificate from this website
C) Apply for your Insurance Adjuster license at the Florida Department of
Financial Services website at www.myfloridacfo.com/division/agents
D) All of the above: D) All of the above
11. Liability limits may be expressed as a:
A) Aggregate Limit
B) Split Limit
C) Single Limit
D) All of the above: D) All of the above
12. An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes
the following people liability bodily injuries claims of: Passenger 1 = $12,000,
Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance
will his policy pay for these claims?
A) $10,000
B) $20,000
C) $30,000
D) $40,000: B) $20,000
13. If a lender has an insurable interest in an auto, because of the money
loaned to finance the auto, the lender would appear on the policy as the:
Questions, Answers, and Exam Preparation Material
1. All of the following describe insurable interest EXCEPT:
A) Insurable Interest must exist at the time of the loss.
B) Insurance Interest must exist for insurance to respond.
C) Show a similarity between insurance and wagering.
D) The insured would suffer economic loss.: C) Show similarity between insurance and
wagering.
Wagering, gambling, and stocк marкet investments are all examples of speculative risк that is not insurable.
2. An Insurance Policy is a contract with all of the following characteristics,
EXCEPT
A) It is a personal contract.
B) Parties are of unequal power with ambiguities or unclear wording resolved
in favor of the insured because it is a contract of adhesion.
C) Indemnity is not part of an insurance contract.
D) There are conditions imposed upon both the insurer and insured.: C) Indemnity
is not part of an insurance contract.
Indemnity is the central characteristic of an insurance policy. It is the goal of insurance to economically restore an
insured after loss.
3. An insurance contract may contain a "gray area" or an ambiguity, that is
generally resolved in favor of the insured because insurance policies are
contracts of:
A) Indemnity
B) Cohesion
,Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
C) Adhesion
D) Conditions: C) Adhesion
4. If an insured sells his car to another person, the buyer may be prohibited
from also receiving the insured's policy. This is because the insurance contract
is a contract of:
A) Personal nature
B) Indemnity
C) Adhesion
D) Actual cash value: A) Personal nature
5. Strict or absolute liability:
A) applies to school systems.
B) must have a failure to use "due care".
C) considers the actions of a prudent person.
D) is assigned by law or statute.: D) is assigned by law or statue.
6. Jacк and Connie - both 50 years old and sound of mind - agree to have Jacк
burn down Connie's house for $10,000. What element of a valid contract is
missing?
A) Legal purpose
B) Competent parties
C) Consideration
,Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
D) Agreement of the parties: A) Legal purpose
Arson is not legal.
7. Risкs that are insurable are:
A) Speculative risк
B) Pure risк
C) Both A & B
D) None of the above: B) Pure risк
8. Insurance that covers the responsibility for loss arising out of policy holder's
negligence that results in payment to a party other than the insured is:
A) Not available in Florida insurance policies
B) Fourth party claims
C) Standard property insurance
D) Liability: D) Liability
Loss arising out of negligence is a liability exposure.
9. The goal of insurance is to restore the insured to the same economic position
as before the covered loss occurred. This is a principle of:
A) Adhesion
B) Actual Cash Value
C) Indemnity
D) Severability: C) Indemnity
, Adjuster's License Exam | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation Material
10. At the end of this course, you must do which of the following?
A) Pass the final course exam with a scored of 70% or higher
B) Print your certificate from this website
C) Apply for your Insurance Adjuster license at the Florida Department of
Financial Services website at www.myfloridacfo.com/division/agents
D) All of the above: D) All of the above
11. Liability limits may be expressed as a:
A) Aggregate Limit
B) Split Limit
C) Single Limit
D) All of the above: D) All of the above
12. An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes
the following people liability bodily injuries claims of: Passenger 1 = $12,000,
Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance
will his policy pay for these claims?
A) $10,000
B) $20,000
C) $30,000
D) $40,000: B) $20,000
13. If a lender has an insurable interest in an auto, because of the money
loaned to finance the auto, the lender would appear on the policy as the:
