claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
1. In the typical insurance sales transaction, the false- In the typical insurance transaction,
insurance company makes the initial offer to the applicant is the offeror who makes an
the insurance applicant. Tor F offer to the insurance company (the of-
feree) through a signed application plus
the initial premium.
2. In a standard insurance sales transaction in- Insurer- In the typical insurance trans-
volving an applicant, a producer, and an in- action, the applicant (offeror) makes the
surance company, which party is the offeree? offer to the insurance company (offeree)
through a signed application plus a pre-
mium deposit
3. Curt, age 40, has purchased a property in- The contract is unenforceable because it
surance policy to cover an international ship- served an illegal purpose.
ment of firearms. The shipment is accidental- reason-Dealing in stolen merchandize is
ly destroyed in transit, and during its inves- illegal; therefore, the insurance contract
tigation the insurer learns that the firearms is unenforceable because it was pur-
were stolen. Which of the following correctly chased to serve an illegal purpose.
explains why the insurer would refuse to cov-
er the loss?
4. When completing an insurance application, a misrepresentation
Dusty intentionally lied about his age in order reason- A false statement of a material
to obtain a lower rate. What is Dusty's lie fact is a misrepresentation.
technically considered?
5. Hazel's store has an automatic sprinkler sys- a warranty-
tem that will be activated by a fire. In ex- reason-A warranty, which is stronger than
change for a reduced fire insurance premi- a representation, guarantees that some-
um, she signs a document stating that the thing is true and will remain true.
automatic sprinkler system will always be in
operating condition. What is this statement?
, claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
6. Olen buys insurance on the inventory in his unenforceable because it was for an ille-
warehouse, which includes a sizable quanti- gal purpose
ty of watches bearing the "Rolex" label, and reason- For a contracting party to be able
Olen pays the insurance premium. After Olen to enforce the terms of the contract, the
reports a theft, the insurer's investigation re- contract must be for a legal purpose, and
veals that the watches it had agreed to insure counterfeit merchandise is illegal.
were illegal counterfeits. Olen's contract with
the insurer is:
7. With respect to requirements for a valid con- consideration
tract, a policyowner's payment of the policy reason-Consideration means something
premium is called a(n): of value that both parties to a contract ex-
change. With an insurance contract, the
applicant's premium payment is the ap-
plicant's consideration.
8. Because the wording of a typical insurance contracts of adhesion
policy is drafted by an insurance compa- reason- Most insurance contracts are
ny and offered to insurance buyers on a contracts of adhesion because the policy
take-it-or-leave-it basis, insurance policies is drafted by the insurer and little if any
are considered: negotiation is normally available with re-
spect to the policy's wording.
9. When applying for a businessowners insur- concealment
ance policy, Brandy did not mention the haz- reason-The deliberate withholding of
ardous and illegal activity that goes on in the material facts is concealment.
backroom of her shop because she realized
no insurer that knew about it would insure
her business. What is Brandy's failure to dis-
close this activity considered?
10. The property insurance policy with a an amount that is related to the value of
$500,000 limit that covers Logan's store is the loss, not to exceed $500,000
, claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
a contract of indemnity. If Logan's store is reason- When a covered loss occurs un-
partially damaged by a covered peril, what is der a contract of indemnity, the benefit
Logan's insurer obligated to pay? payable is related to the amount of the
an amount that is related to the value of the loss.
loss, not to exceed $500,000
whatever amount is awarded by the court as
damages
the full $500,000
nothing, because it is only a partial loss
11. The fact that insurance policy language is contracts of adhesion
written by an insurance company and is non- reason-Most insurance contracts are
negotiable makes insurance policies: contracts of adhesion because the policy
is drafted by the insurer and little if any
negotiation is normally available with re-
spect to the policy's wording
12. If an insurance applicant submits an appli- Invited the insurer to make an offer to the
cation to an insurer without a premium pay- applicant
ment, the applicant has: reason-When an applicant submits an
application without the first premium, the
applicant is inviting the insurer to make
an offer.
13. An insurer that has a history of accepting waiver and estoppel
premiums up to five days beyond their due reason-Estoppel exists when a party can-
date cannot deny a claim for a loss occurring not enforce a right that it has voluntarily
the day after a premium was due for which waived by its past conduct-in this case,
of the following reasons? repeatedly accepting a late premium with
no coverage lapse.
14. Although the policyholder must pay premi- only the insurer makes an enforceable
ums to keep an insurance policy in force, promise
, claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
the policy is considered a unilateral policy reason-Insurance contracts are unilater-
because: al contracts in which only one party-the
insurer-makes a promise that can be en-
forced. Although the policyholder agrees
to pay the premium, the policyholder is
not obligated to do so. Of course, if he
or she stops paying the premium, the
insurer will cancel the policy.
15. The typical property and casualty insurance personal contract
policy contains a provision expressly pro- reason-Because the property and casual-
hibiting the policyholder from assigning pol- ty insurance policy is a personal contract,
icy ownership to another party without the it cannot be transferred to a third party
insurer's written consent because the policy without the insurer's consent.
is a(n):
16. In a standard insurance sales transaction in- applicant
volving an applicant, a producer, and an in- reason- In the typical insurance trans-
surance company, which party is the offeror? action, the applicant (offeror) makes the
offer to the insurance company (offeree)
through a signed application plus a pre-
mium deposit. The beneficiary is not a
party to the contract.
17. When Devon sells his boat to Pat, he offers to a property insurance policy is a personal
include not only the boat trailer but also his contract
boatowners insurance policy. If Pat accepts reason-Property and casualty policies are
the offer and subsequently submits a claim personal contracts between the insur-
to the insurer, the insurer will deny the claim er and the policyowner. They cannot be
because: transferred to another party without the
insurer's consent.
18.
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
1. In the typical insurance sales transaction, the false- In the typical insurance transaction,
insurance company makes the initial offer to the applicant is the offeror who makes an
the insurance applicant. Tor F offer to the insurance company (the of-
feree) through a signed application plus
the initial premium.
2. In a standard insurance sales transaction in- Insurer- In the typical insurance trans-
volving an applicant, a producer, and an in- action, the applicant (offeror) makes the
surance company, which party is the offeree? offer to the insurance company (offeree)
through a signed application plus a pre-
mium deposit
3. Curt, age 40, has purchased a property in- The contract is unenforceable because it
surance policy to cover an international ship- served an illegal purpose.
ment of firearms. The shipment is accidental- reason-Dealing in stolen merchandize is
ly destroyed in transit, and during its inves- illegal; therefore, the insurance contract
tigation the insurer learns that the firearms is unenforceable because it was pur-
were stolen. Which of the following correctly chased to serve an illegal purpose.
explains why the insurer would refuse to cov-
er the loss?
4. When completing an insurance application, a misrepresentation
Dusty intentionally lied about his age in order reason- A false statement of a material
to obtain a lower rate. What is Dusty's lie fact is a misrepresentation.
technically considered?
5. Hazel's store has an automatic sprinkler sys- a warranty-
tem that will be activated by a fire. In ex- reason-A warranty, which is stronger than
change for a reduced fire insurance premi- a representation, guarantees that some-
um, she signs a document stating that the thing is true and will remain true.
automatic sprinkler system will always be in
operating condition. What is this statement?
, claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
6. Olen buys insurance on the inventory in his unenforceable because it was for an ille-
warehouse, which includes a sizable quanti- gal purpose
ty of watches bearing the "Rolex" label, and reason- For a contracting party to be able
Olen pays the insurance premium. After Olen to enforce the terms of the contract, the
reports a theft, the insurer's investigation re- contract must be for a legal purpose, and
veals that the watches it had agreed to insure counterfeit merchandise is illegal.
were illegal counterfeits. Olen's contract with
the insurer is:
7. With respect to requirements for a valid con- consideration
tract, a policyowner's payment of the policy reason-Consideration means something
premium is called a(n): of value that both parties to a contract ex-
change. With an insurance contract, the
applicant's premium payment is the ap-
plicant's consideration.
8. Because the wording of a typical insurance contracts of adhesion
policy is drafted by an insurance compa- reason- Most insurance contracts are
ny and offered to insurance buyers on a contracts of adhesion because the policy
take-it-or-leave-it basis, insurance policies is drafted by the insurer and little if any
are considered: negotiation is normally available with re-
spect to the policy's wording.
9. When applying for a businessowners insur- concealment
ance policy, Brandy did not mention the haz- reason-The deliberate withholding of
ardous and illegal activity that goes on in the material facts is concealment.
backroom of her shop because she realized
no insurer that knew about it would insure
her business. What is Brandy's failure to dis-
close this activity considered?
10. The property insurance policy with a an amount that is related to the value of
$500,000 limit that covers Logan's store is the loss, not to exceed $500,000
, claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
a contract of indemnity. If Logan's store is reason- When a covered loss occurs un-
partially damaged by a covered peril, what is der a contract of indemnity, the benefit
Logan's insurer obligated to pay? payable is related to the amount of the
an amount that is related to the value of the loss.
loss, not to exceed $500,000
whatever amount is awarded by the court as
damages
the full $500,000
nothing, because it is only a partial loss
11. The fact that insurance policy language is contracts of adhesion
written by an insurance company and is non- reason-Most insurance contracts are
negotiable makes insurance policies: contracts of adhesion because the policy
is drafted by the insurer and little if any
negotiation is normally available with re-
spect to the policy's wording
12. If an insurance applicant submits an appli- Invited the insurer to make an offer to the
cation to an insurer without a premium pay- applicant
ment, the applicant has: reason-When an applicant submits an
application without the first premium, the
applicant is inviting the insurer to make
an offer.
13. An insurer that has a history of accepting waiver and estoppel
premiums up to five days beyond their due reason-Estoppel exists when a party can-
date cannot deny a claim for a loss occurring not enforce a right that it has voluntarily
the day after a premium was due for which waived by its past conduct-in this case,
of the following reasons? repeatedly accepting a late premium with
no coverage lapse.
14. Although the policyholder must pay premi- only the insurer makes an enforceable
ums to keep an insurance policy in force, promise
, claims adjuster Certified professional Florida
claims adjuster Certified professional Florida
Study online at https://quizlet.com/_imu3db
the policy is considered a unilateral policy reason-Insurance contracts are unilater-
because: al contracts in which only one party-the
insurer-makes a promise that can be en-
forced. Although the policyholder agrees
to pay the premium, the policyholder is
not obligated to do so. Of course, if he
or she stops paying the premium, the
insurer will cancel the policy.
15. The typical property and casualty insurance personal contract
policy contains a provision expressly pro- reason-Because the property and casual-
hibiting the policyholder from assigning pol- ty insurance policy is a personal contract,
icy ownership to another party without the it cannot be transferred to a third party
insurer's written consent because the policy without the insurer's consent.
is a(n):
16. In a standard insurance sales transaction in- applicant
volving an applicant, a producer, and an in- reason- In the typical insurance trans-
surance company, which party is the offeror? action, the applicant (offeror) makes the
offer to the insurance company (offeree)
through a signed application plus a pre-
mium deposit. The beneficiary is not a
party to the contract.
17. When Devon sells his boat to Pat, he offers to a property insurance policy is a personal
include not only the boat trailer but also his contract
boatowners insurance policy. If Pat accepts reason-Property and casualty policies are
the offer and subsequently submits a claim personal contracts between the insur-
to the insurer, the insurer will deny the claim er and the policyowner. They cannot be
because: transferred to another party without the
insurer's consent.
18.
