6-20 FLORIDA CLAIMS ADJUSTER REVIEWED QUESTION AND ANSWER

6-20 FLORIDA CLAIMS ADJUSTER REVIEWED QUESTION AND ANSWER The following are basic characteristics of a property or liability insurance contract, EXCEPT: A. Personal Contract B. Conditional Contract C. Loss Settlement Contract D. Contract of Adhesion - CORRECT ANSWER-C. Loss Settlement Contract The Insurers responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as? A. Conditional Contract B. Adhesion Contract C. Indemnity Contract D. All of the Above - CORRECT ANSWER-A. Conditional Contract A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject: A. Conditional Contract B. Personal Contract C. Economic Contract D. Insurable Interest - CORRECT ANSWER-D. Insurable Interest The __________ states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. A. Doctrine of Proximate Cause B. Doctrine of Perils & Hazards C. Insurance Policy Handbook D. Doctrine of Property Insurance - CORRECT ANSWER-A. Doctrine of Proximate Cause Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - CORRECT ANSWER-D. All listed interests The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as? A. Actual Cash Value B. Replacement Cost C. "Old For New" D. None of the Above - CORRECT ANSWER-A. Actual Cash Value Insurance applies separately to each insured as if other insureds did not exist. This is defined as: A. Severability B. Conditional C. Warranty D. None of the Above - CORRECT ANSWER-A. Severability States that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage. (Usually 60 days) A. Cancellation Clause B. Policy Period C. Pro Rata D. Liberalization - CORRECT ANSWER-D. Liberalization Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value: A. Pro Rata B. Abandonment C. Liberalization D. All of the Above - CORRECT ANSWER-B. Abandonment A policy condition, either based on information in the insured's application or inserted by the insurer, is defined as: A. Warranty B. Misrepresentation C. Concealment D. None of the Above - CORRECT ANSWER-A. Warranty If financial responsibility doesn't exist at the time of an accident, which of the following things must happen to avoid penalties? A. The legally valid claims of others must be satisfied (up to 10/20/10) B. The owner and operator must provide certification of future responsibility for future accidents C. Both A&B D. None of the Above - CORRECT ANSWER-C. Both A&B Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his renewal date he receives notice of the company's intention to non-renew because of 3 negligent losses and 1 speeding ticket in the past 3 years. His driving record and claim history make this a valid non-renewal. A. True B. False - CORRECT ANSWER-B. False Personal Injury Protection, or PIP, has a __________ per person, per accident limit. A. 10,000 B. 20,000 C. 1,000 D. Depends on the damaged property - CORRECT ANSWER-A. 10,000 While driving his own car, Bill is involved in an accident that is the fault of the other driver, Mike. He looks to collect for his injuries in the following order: A. His PIP, Mike's Liability, his UM, his Med Pay. B. Mike's Liability, his PIP, his Med Pay, his UM. C. His PIP, his Med Pay, Mike's Liability, his UM. D. His PIP, his Med Pay, His UM, Mike's Liability. - CORRECT ANSWER-C. His PIP, his Med Pay, Mike's Liability, his UM. eremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he expect his PIP coverage to pay toward his medical bills that total $3,000? A. $1,600 B. $1,000 C. $2,400 D. $3,000 - CORRECT ANSWER-A. $1,600 Robert is driving his car in Florida when he is hit by an at-fault driver. Robert has $10,000 in medical bills, carries Basic PIP with a $1000 deductible and has no Med Pay. How much will the at-fault driver have to pay for Robert's injuries? A. $2800 B Nothing--Robert's PIP is primary C. $10,000 D. $1,000 - CORRECT ANSWER-A. $2800 Frank has a not-at-fault accident, he has basic PIP, no deductible and Med pay of $5,000. How much will his Med Pay contribute to medical bills of $15,000? A. $15,000 B. $5,000 C. $3,000 D. $0, Frank is not-at-fault - CORRECT ANSWER-B. $5,000 Jane and Sue are riding with Jim in Jim's car. All 3 are Florida Residents who own cars and carry Basic PIP with no deductible. Sue has $12,000 in Medical Bills. Whose coverage will pay and how much will it pay? A. Sue's PIP will pay $12,000 B. Sue must first collect from any med pay available C. Sue's PIP will pay $9600 D. Jim's PIP will pay $10,000 - CORRECT ANSWER-C. Sue's PIP will pay $9600 As to required proof for future accidents by purchase of auto liability insurance, the insurer must make a filing (Form SR-22) certifying that coverage is in effect, and this certification must remain on file for __________ years: A. 1 B. 3 C. 4 D. 2 - CORRECT ANSWER-B. 3 Jane and Sue are riding with Jim in Jim's car. All 3 are Florida Residents who own cars and carry Basic PIP with no deductible. There is an accident and Jane has $5,000 in Medical Bills. Whose PIP will pay and how much will it pay? A. Jim's PIP will pay $5,000 B. Jane's PIP will pay $5,000 C. Jim's PIP will pay $4,000 D. Jane's PIP will pay $4,000 - CORRECT ANSWER-D. Jane's PIP will pay $4,000 Which of the following is not one of the "Thresholds" in the "No-Fault" law? A. Death of the Insured B. Temporary Injury of the Insured C. A permanent loss of a bodily function D. Permanent scarring on the face of an insured - CORRECT ANSWER-B. Temporary Injury of the Insured The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10 A. Split B. Single C. Straight D. None of the Above - CORRECT ANSWER-A. Split Used to insure businesses engaged in selling, servicing, repairing, parking or storing automobiles: A. Servicing Coverage Form B. Garage Coverage Form C. Truckers Coverage Form D. None of the Above - CORRECT ANSWER-B. Garage Coverage Form The Business Automobile Policy includes all of the following coverage forms except: A. The Garage Coverage Form B. The Trailer Interchange Coverage Form C. The Truckers Coverage Form D. The Business Auto Coverage Form - CORRECT ANSWER-B. The Trailer Interchange Coverage Form Under Mechanical Breakdown Coverage, new cars are eligible for service up to: A. 36 Months/36,000 Miles B. 24 Months/36,000 Miles C. 12,000 Months/12,000 Miles D. 12 Months/36,000 Miles - CORRECT ANSWER-A. 36 Months/36,000 Miles Which of the following are characteristics of Homeowner's Insurance? A. Protects against economic loss to residences and household property, and legal liabilities B. Owner-occupants of 1-4 family dwellings C. Renters who maintain residential occupancy in any type of building D. All of the Above - CORRECT ANSWER-D. All of the Above