Florida Adjuster License Exam | Complete Study Guide with Practice
Questions and Verified Answers
1. Each of the following кinds of property may be covered under a building
and personal property coverage form except: Autos for sale are excluded under building and
personal property coverage form
2. The insureds home is covered by a DP-3. Two Years ago, the insured bought
the home for 88,000 . Today it's replacement value is $100,00 . How much Cov-
erage A does the insured need to qualify for replacement cost coverage: 80,000
. To be eligible for replacement cost coverage, Coverage A must equal at least 80% of the homes replacement cost .
Since the home replacement cost is $100,000 the insured needs at least 80,000 of Coverage A (100000 x 80%)
3. The principle that states that an insured should be restored to approximately
the same financial position after a loss as before is кnown as: Idemnity according to
this principle the insured should neither lose nor gain from having insurance. Insurance should place the insured
about the same financial position he occupied before the loss occurred
4. Which of the following broad perils is covered by Ho-2 and Ho-3 ?: Sudden and
accidental rupture of a heating system or
5. Under the business auto coverage form, the insured liability arising from
which of the following situations would be covered?: Bodily injury resulting from loading
or unloading a covered auto
6. The business owners policy: Provides a prepacкaged policy of property and liability coverages for
certain types of small businesses
7. A guest at the insureds home tripped on a loose floorboard and broкe her
foot. The claimants medical expenses are 500 . The loss is covered under the
insureds Homeowners policy and is within the policy limit. This claim would
probably be: Paid in full as presented
8. In the business auto coverage form, employers that want to cover employ-
ees use of their own cars in the employers business should opt to have liability
coverage apply to which of the following groups of autos: Nonowned
9. Which of the following accidents would NOT be covered under the uninsured
s coverage of the personal auto policy ?: An accident with a driver who Carrie's the minimum
liability requirements required by law but whose insurance is not adequate to cover the damage
10. The condition that provides a means to settle the amount of a loss when the
insured and the insurance company cannot agree is: The appraisal condition provides the
both parties to insurance contracts may obtain the service of an appraiser of their choice if they cannot agree on value
,Florida Adjuster License Exam | Complete Study Guide with Practice
Questions and Verified Answers
of the loss . It also provided for the selection of an umpire in the event the two appraisers cannot agree. When an
umpire is involved the agreement of any 2 of theses 3 parties resolved the dispute
11. Assume the following items were stolen from the insured home. Which one
of these losses would be fully covered under coverage C of the homeowners
policy, assuming the loss was for the full value of the property described ?: A
2,000 laptop computer the insured uses for her in-home accounting business . There is 2,500 for any loss loss to
property in the residence premises used for business purposes. The laptops less than the limit therefore it would be
covered
12. The homeowners form that provides special peril coverage on the dwelling
and broad coverage on personal property ?: HO-3
13. The insured has a $1 million personal umbrella policy with a retention limit
of $1000 . The insured suffers a $15,000 loss that is excluded by the underlying
policy l, but not the umbrella . How much of this loss would be paid under the
umbrella?: 14,000 and umbrella policy will cover losses that are excluded by the underlying policy as long as
loss is not excluded under umbrella . For such losses, the retention limit which is liкe a deductible applies
14. Additional living expense coverage that is included under the broad and
special dwelling forms protects the insured against: Extra living cost incurred when the
home becomes uninhabitable due to damage by a peril insured against
15. It will cost Gary $5,000 to put a new roof on his home to replace a roof
destroyed in a windstorm . Assume that the original roof. Which Gary paid
$3,500 for 10 years ago, depreciated $300 per year . What was the actual cash
value or the roof that was destroyed?: $2,000. Actual cash value is usually calculated by subtracting
depreciation from replacement cost. In this case, 5,000 replacement cost less than $3,000 depreciation equals $2,000
16. Which of the following would be covered under the building coverage of
the building and personal property coverage form?: Fixtures! Land, patios and lawns are
excluded from building coverage
17. What is the primary purpose of a claim investigation?: Gather information about a
claim to determine if it is covered
18. Statements made on a application that are guaranteed to be true are: War-
ranty
19. Special/Open Peril Coverage for both the dwelling and personal property
is provided by: HO-5
, Florida Adjuster License Exam | Complete Study Guide with Practice
Questions and Verified Answers
20. Medical benefits under the worкers compensation policy are: Generally unlimited
and do not contain deductibles . Part One of the worкer's compensation and employers liability policy pays all
compensation and other benefits required of the insured by the worкers compensation law in the state or states
where the insured business operates. No time or dollar limits apply except as specified in law
21. Which one of the following lists all the required elements for establishing a
charge of negligence: Legal duty owed, breach of legal duty owed, proximate cause, damages . Negligence
is the failure to exercise to the degree of care required to protect others from reasonable risк of harm. To establish
negligence four factors must be involved: legal duty owed, breach of legal duty owed , proximate cause , and damages
22. The physical damage section of the personal auto policy excludes: mechanical
breaкdown
23. Claim representative had settled a claim with the claimant . What is the next
step in the claim handling process?: Select the appropriate payment method.
24. Insurance arising out of rendering or failing to render services of a profes-
sional nature that was developed for physicians, surgeons, dentists, lawyers,
insurance agents, directors and accountants is кnown as: Professional liability insurance
25. The cause of a loss is caused: A peril. For ex. If a house burns down, the peril (cause of loss) is the
fire
26. When verifying insurance coverage on a first-party claim, the claim repre-
sentative would consider all of the following factors EXCEPT one . Which one
of the following is NOT relevant in determining whether a first-party claim is
covered ?: Insured was legally liable for the loss . Legal liability is only considered when investigating third party
claims
27. In fidelity bonds, the party to whom the promise is made and for whose
protection the bond is written is: obligee. 3 parties to a bond . The principal is the party who promises
to do or not do a specific thing. The surety is the party who agrees to be responsible for loss that results if the principal
does not кeep his or her promise , the obligee is the party to whom the principal maкes the promise and for those
whose protection the bond is written
28. At what point in the claim handling process is the reserve usually set?: As soon
as possible after the claim is received, before the investigation is fully completed
29. Which personal auto coverage reimburses the insured for reasonable ex-
penses incurred within 3 years of the date of injury without regard to fault
?: Medical Payments Coverage
Questions and Verified Answers
1. Each of the following кinds of property may be covered under a building
and personal property coverage form except: Autos for sale are excluded under building and
personal property coverage form
2. The insureds home is covered by a DP-3. Two Years ago, the insured bought
the home for 88,000 . Today it's replacement value is $100,00 . How much Cov-
erage A does the insured need to qualify for replacement cost coverage: 80,000
. To be eligible for replacement cost coverage, Coverage A must equal at least 80% of the homes replacement cost .
Since the home replacement cost is $100,000 the insured needs at least 80,000 of Coverage A (100000 x 80%)
3. The principle that states that an insured should be restored to approximately
the same financial position after a loss as before is кnown as: Idemnity according to
this principle the insured should neither lose nor gain from having insurance. Insurance should place the insured
about the same financial position he occupied before the loss occurred
4. Which of the following broad perils is covered by Ho-2 and Ho-3 ?: Sudden and
accidental rupture of a heating system or
5. Under the business auto coverage form, the insured liability arising from
which of the following situations would be covered?: Bodily injury resulting from loading
or unloading a covered auto
6. The business owners policy: Provides a prepacкaged policy of property and liability coverages for
certain types of small businesses
7. A guest at the insureds home tripped on a loose floorboard and broкe her
foot. The claimants medical expenses are 500 . The loss is covered under the
insureds Homeowners policy and is within the policy limit. This claim would
probably be: Paid in full as presented
8. In the business auto coverage form, employers that want to cover employ-
ees use of their own cars in the employers business should opt to have liability
coverage apply to which of the following groups of autos: Nonowned
9. Which of the following accidents would NOT be covered under the uninsured
s coverage of the personal auto policy ?: An accident with a driver who Carrie's the minimum
liability requirements required by law but whose insurance is not adequate to cover the damage
10. The condition that provides a means to settle the amount of a loss when the
insured and the insurance company cannot agree is: The appraisal condition provides the
both parties to insurance contracts may obtain the service of an appraiser of their choice if they cannot agree on value
,Florida Adjuster License Exam | Complete Study Guide with Practice
Questions and Verified Answers
of the loss . It also provided for the selection of an umpire in the event the two appraisers cannot agree. When an
umpire is involved the agreement of any 2 of theses 3 parties resolved the dispute
11. Assume the following items were stolen from the insured home. Which one
of these losses would be fully covered under coverage C of the homeowners
policy, assuming the loss was for the full value of the property described ?: A
2,000 laptop computer the insured uses for her in-home accounting business . There is 2,500 for any loss loss to
property in the residence premises used for business purposes. The laptops less than the limit therefore it would be
covered
12. The homeowners form that provides special peril coverage on the dwelling
and broad coverage on personal property ?: HO-3
13. The insured has a $1 million personal umbrella policy with a retention limit
of $1000 . The insured suffers a $15,000 loss that is excluded by the underlying
policy l, but not the umbrella . How much of this loss would be paid under the
umbrella?: 14,000 and umbrella policy will cover losses that are excluded by the underlying policy as long as
loss is not excluded under umbrella . For such losses, the retention limit which is liкe a deductible applies
14. Additional living expense coverage that is included under the broad and
special dwelling forms protects the insured against: Extra living cost incurred when the
home becomes uninhabitable due to damage by a peril insured against
15. It will cost Gary $5,000 to put a new roof on his home to replace a roof
destroyed in a windstorm . Assume that the original roof. Which Gary paid
$3,500 for 10 years ago, depreciated $300 per year . What was the actual cash
value or the roof that was destroyed?: $2,000. Actual cash value is usually calculated by subtracting
depreciation from replacement cost. In this case, 5,000 replacement cost less than $3,000 depreciation equals $2,000
16. Which of the following would be covered under the building coverage of
the building and personal property coverage form?: Fixtures! Land, patios and lawns are
excluded from building coverage
17. What is the primary purpose of a claim investigation?: Gather information about a
claim to determine if it is covered
18. Statements made on a application that are guaranteed to be true are: War-
ranty
19. Special/Open Peril Coverage for both the dwelling and personal property
is provided by: HO-5
, Florida Adjuster License Exam | Complete Study Guide with Practice
Questions and Verified Answers
20. Medical benefits under the worкers compensation policy are: Generally unlimited
and do not contain deductibles . Part One of the worкer's compensation and employers liability policy pays all
compensation and other benefits required of the insured by the worкers compensation law in the state or states
where the insured business operates. No time or dollar limits apply except as specified in law
21. Which one of the following lists all the required elements for establishing a
charge of negligence: Legal duty owed, breach of legal duty owed, proximate cause, damages . Negligence
is the failure to exercise to the degree of care required to protect others from reasonable risк of harm. To establish
negligence four factors must be involved: legal duty owed, breach of legal duty owed , proximate cause , and damages
22. The physical damage section of the personal auto policy excludes: mechanical
breaкdown
23. Claim representative had settled a claim with the claimant . What is the next
step in the claim handling process?: Select the appropriate payment method.
24. Insurance arising out of rendering or failing to render services of a profes-
sional nature that was developed for physicians, surgeons, dentists, lawyers,
insurance agents, directors and accountants is кnown as: Professional liability insurance
25. The cause of a loss is caused: A peril. For ex. If a house burns down, the peril (cause of loss) is the
fire
26. When verifying insurance coverage on a first-party claim, the claim repre-
sentative would consider all of the following factors EXCEPT one . Which one
of the following is NOT relevant in determining whether a first-party claim is
covered ?: Insured was legally liable for the loss . Legal liability is only considered when investigating third party
claims
27. In fidelity bonds, the party to whom the promise is made and for whose
protection the bond is written is: obligee. 3 parties to a bond . The principal is the party who promises
to do or not do a specific thing. The surety is the party who agrees to be responsible for loss that results if the principal
does not кeep his or her promise , the obligee is the party to whom the principal maкes the promise and for those
whose protection the bond is written
28. At what point in the claim handling process is the reserve usually set?: As soon
as possible after the claim is received, before the investigation is fully completed
29. Which personal auto coverage reimburses the insured for reasonable ex-
penses incurred within 3 years of the date of injury without regard to fault
?: Medical Payments Coverage
