ADJUSTERS LICENSE 6-20 EXAM QUESTIONS
WITH VERIFIED 100% CORRECT ANSWERS .
What is an Insurance Policy - correct Answers -An Insurance Policy is a Contract (agreement between 2
parties)
Insurance Policy in the state of Florida must be? - correct Answers -Written in order to constitute a policy
Legal Definition of Insurance - correct Answers -Contract that undertakes to indemnity, or make whole,
or pay a certain amount in the event a covered loss occurs.
Consideration - correct Answers -Value for an Insurance contract is the premium paid by insured and the
promise given by insurance company
Temporary Insurance is put into effect by BINDERS - correct Answers -Binders include all terms,
conditions and exclusions contained in a policy and no notice of cancellation or non renewal is required
unless the binder has a term of more then 60 days
Binder for automobile insurance are the EXCEPTION - correct Answers -5days notice is required to
cancel binder
Property Insurance - correct Answers -Payment made to the insured or others with interest simular to
insured (mortgage holder)
Liability Insurance - correct Answers -Means a payment will be made to a 3rd party injured of damaged
by the insured. An Insured can NEVER recover damages from there own Liability Policy
All Property and Liability Insurance Contracts contain 4 fundamental parts: - correct Answers -1.)
Declaration: Contains info regarding the insured, premium, period of coverage and liability.
2.) Insurance Agreement: defines the coverages contained within coverage.
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, 3.) Exclusions: Eliminate coverage
4.) Conditions: Requirements that MUST be made Before payment will be made
1.) Property Adjuster receives notice of homeowners claim is Covered, Denied or being investigated must
be provided within? - correct Answers -30 days
2.) An insurer gives which of the following as Consideration for insurance policy? - correct Answers -A
Promise
3.) Which of the following is not found on the Declaration page of a policy? - correct Answers -
Conditions: Requirements that Must be made before payment will be made.
4.) Homeowners dog bites the mailman. Policy that pays the mailman is best described as? - correct
Answers -Liability Policy
5.) Insurance Company wrote AUTO Insurance Binder for owner who said he had No prior accidents.
Immediately they find out this is NOT True. The company now wants to cancel cinder asap. What is true?
- correct Answers -5 days notice REQUIRED
6.) For Insurance to pay damages, an insurance interest must exist: - correct Answers -When the Lost
takes place
7.) Speeding while driving is best described as a? - correct Answers -HAZARD
8.) A covered loss is $60,000.
Policy A has limit of $50,000.
Policy B has a limit of $150,000.
BOTH ARE PRORATED POLICIES!!
How much will Policy A pay for this loss? - correct Answers -Add Policy A to Policy B and get Total.
Then determine the % between the 2 and that is how much Policy A will pay out.
Example: A+B=$200,000. A is a 1/4 of total so it will pay $15,000.
2
WITH VERIFIED 100% CORRECT ANSWERS .
What is an Insurance Policy - correct Answers -An Insurance Policy is a Contract (agreement between 2
parties)
Insurance Policy in the state of Florida must be? - correct Answers -Written in order to constitute a policy
Legal Definition of Insurance - correct Answers -Contract that undertakes to indemnity, or make whole,
or pay a certain amount in the event a covered loss occurs.
Consideration - correct Answers -Value for an Insurance contract is the premium paid by insured and the
promise given by insurance company
Temporary Insurance is put into effect by BINDERS - correct Answers -Binders include all terms,
conditions and exclusions contained in a policy and no notice of cancellation or non renewal is required
unless the binder has a term of more then 60 days
Binder for automobile insurance are the EXCEPTION - correct Answers -5days notice is required to
cancel binder
Property Insurance - correct Answers -Payment made to the insured or others with interest simular to
insured (mortgage holder)
Liability Insurance - correct Answers -Means a payment will be made to a 3rd party injured of damaged
by the insured. An Insured can NEVER recover damages from there own Liability Policy
All Property and Liability Insurance Contracts contain 4 fundamental parts: - correct Answers -1.)
Declaration: Contains info regarding the insured, premium, period of coverage and liability.
2.) Insurance Agreement: defines the coverages contained within coverage.
1
, 3.) Exclusions: Eliminate coverage
4.) Conditions: Requirements that MUST be made Before payment will be made
1.) Property Adjuster receives notice of homeowners claim is Covered, Denied or being investigated must
be provided within? - correct Answers -30 days
2.) An insurer gives which of the following as Consideration for insurance policy? - correct Answers -A
Promise
3.) Which of the following is not found on the Declaration page of a policy? - correct Answers -
Conditions: Requirements that Must be made before payment will be made.
4.) Homeowners dog bites the mailman. Policy that pays the mailman is best described as? - correct
Answers -Liability Policy
5.) Insurance Company wrote AUTO Insurance Binder for owner who said he had No prior accidents.
Immediately they find out this is NOT True. The company now wants to cancel cinder asap. What is true?
- correct Answers -5 days notice REQUIRED
6.) For Insurance to pay damages, an insurance interest must exist: - correct Answers -When the Lost
takes place
7.) Speeding while driving is best described as a? - correct Answers -HAZARD
8.) A covered loss is $60,000.
Policy A has limit of $50,000.
Policy B has a limit of $150,000.
BOTH ARE PRORATED POLICIES!!
How much will Policy A pay for this loss? - correct Answers -Add Policy A to Policy B and get Total.
Then determine the % between the 2 and that is how much Policy A will pay out.
Example: A+B=$200,000. A is a 1/4 of total so it will pay $15,000.
2
