Florida Certified Adjuster Pre-Licensing Questions with Verified Answers | Latest 2023/2024

Florida Certified Adjuster Pre-Licensing Questions with Verified Answers | Latest 2023/2024 Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary service to the benefit of society. He also recently purchased a $100,000 life insurance policy from the organization. This was possible because the Knights of Columbus is: -- a fraternal benefit society Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30 days late. However, Jason is currently more than 30 days late, and has been so five times in the last year, and his insurer has done nothing about it. When Jason gets into an accident and files a claim, which of the following is most likely to happen? -- The insurer will pay the claim because of the implied waiver they have made by not cancelling Jason's policy the previous times he was late with his payments Jared hopes to purchase a new insurance policy for his car, but he has an extremely poor driving record. The insurance company decides to issue Jared an insurance policy, but charges him a premium much higher than the average driver. The insurance company is practicing: -- risk reduction Which of the following is NOT a characteristic of insurance contracts? (aleatory, conditional, unilateral, universal) -- universal 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: -- issue a complaint against the policyholder A reciprocal insurer is: -- an unincorporated organization of subscribers that operates through an attorney-in-fact to provide insurance benefits for its members. Bob has been in the construction business a long time and is ready to retire. He sells the company to his friend Scott and then lets the insurer know that any claims against his policy should be paid to Scott from now on. The insurer informs Bob that they cannot do this due to which condition? -- assignment Cindy and her insurer cannot reach an agreement for her property claim, and have gone back and forth for weeks without coming within $10,000 of each other. At this point, since both believe they are offering a fair settlement, a third party is needed to help facilitate the negotiation. Both parties still want to retain their ability to "walk-away" if they cannot reach an agreement. What is the next best step for Cindy and her insurer? -- mediation How is the power to bind transferred to an adjuster? -- it is transferred through a written contract Which of the following statements best describes a part of the appraisal process? A. The claimant and the insurer each select an appraiser, and those two select an umpire. B. All parties must agree to the final amount in order for it to be binding. C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties come to a settlement. D. The opposing parties submit their evidence to the appraiser, who makes a final and binding decision. -- A. The claimant and the insurer each select an appraiser, and those two select an umpire. Bob's home was severely damaged by a thunderstorm and he claims it will cost $74,000 to repair. His insurer has investigated the claim, found the repairs could be done for $49,000, and has offered Bob this amount of indemnification. Negotiation between Bob and his insurer seems to be failing. Due to the unpredictability of the result, which of the following options should be avoided by the insurer if possible? A. Appraisal B. Mediation C. Litigation D. Arbitration -- C. Litigation In appraisal, who chooses the umpire? A. The claimant B. The two appraisers C. The insurance company D. The adjuster -- B. The two appraisers Adjuster Andy is trying to determine a final settlement amount for Stacy's claim. Stacy's house was destroyed in a fire and it will cost $185,000 to rebuild it. Stacy's homeowners policy has a limit of $178,000 and a $1,800 deductible. Typically, how much would Adjuster Andy calculate Stacy's final settlement amount to be? -- $178,000 (because the cost of repairs is more than the policy limit, the final settlement amount is the full policy limit ($178,000) and the deductible is absorbed into the amount of the loss that exceeds the limit.