FLORIDA ADJUSTER EXAM - QUESTIONS WITH CORRECT ANSWERS GRADED TO PASS

Which of the following is NOT one of the duties of the Department of Financial Services? b. Dept does NOT set rates nor write policies - Set rates and write policies for various company products The adjuster has a particular relationship to his principal, the insurer. Which of the following best describes this relationship? - It is a fiduciary relationship. The Claims Adjuster's role in the insurance industry includes all the following EXCEPT: - Gives appropriate legal advice and writes binding contracts All of the following activities are illegal for an adjuster, EXCEPT: - Use only company forms to prepare releases All of the following are part of the conditions imposed upon the insured in the event of a loss, EXCEPT: - Insured should negotiate on behalf of the company for 3rd party claimants. A claimant was given a settlement, which stipulated, that if the claimant did not contact the company within a certain period of time, the claim would automatically close. No release was signed. Which of the following best describes this method of settlement? - No release or walk-away The Continuing Education requirement to maintain an Adjuster license in Florida is: - Twenty four hours every two years. An adjuster received written notice from the Department of Financial Services regarding a claim. What length of time does he have to respond to the inquiry? - 21 calendar days Comparative negligence is determined through - Investigation & AnalysisAgreement between parties or by mediation or arbitrationJudge and/or jury During what period of time must an adjuster reply to communication from a policyholder on a claim? - 14 days Which of the following is NOT a goal in the adjusting process? - always pay the maximum limit of the policy An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: - A Full Release settlement Adjuster Jane moved from one city in Florida to another. What length of time does she have to notify the Insurance Department of the address change? - 30 Days Which of the following is TRUE? - If an appointment is terminated, an adjuster has 48 months to secure another appointment Bad Faith & Adjusting Practices - Under the Florida Unfair Trade Practices Act & the Unfair Methods of Competition and Unfair or Deceptive Acts, all of the following are prohibited, EXCEPT: - Adjuster keeps accurate records on a claim Florida's Administrative Code contains a Code of Ethics for Adjuster - which of the following is FALSE? - An Adjuster owes fair and prompt treatment to their own company's policyholders only Which of the following is a duty owed to an invitee? - land owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? - liability is a legal doctrine and coverage is a contractual obligation Which of the following is NOT one of the fiduciary responsibilities of an adjuster? - Withhold pertinent information from the company to please a client Which of the following is NOT one of the duties of the Florida Department of Financial Services? - The Department writes policies for the non-standard insurance companies. Continuing education requirements to maintain a Customer representative license are: - 24 hours every two years. When an insurance licensee ends his appointment with an authorized company in Florida, he has how long to secure another appointment? - 48 months When an insurance licensee moves, he has how long to notify the Florida Dept. of Financial Services of his change of address? - 30 Days Activities that may result in license suspension or revocation include: - Using discriminatory practices Making false entries on an insurance application Defaming another agent or company Activities that may result in license suspension or revocation include: - Lacking reasonable knowledge & technical competence Misappropriation of funds Failure to notify the Dept. of Insurance in writing within 30 days after pleading guilty to a felony All of the following are true concerning Joint Underwriting Associations EXCEPT : - It is not possible to purchase a Homeowners or Dwelling Policy from Citizens John wrote a policy through the Florida Automobile Joint Underwriting Association, and the company issued the policy. What is the company issuing the policy called ? - A servicing carrier The business auto policy has flexibility to meet the needs of various commercial enterprises. It is used to cover vehicles NOT covered by the Personal Auto Policy. Which the following vehicle would NOT be insured with a business auto policy: - Autos used for business related purposes on a regular basis.Autos weighing 12,000 lbs. gross vehicle weight.Autos titled in the name of a corporation or other business interest. In the business auto policy, symbol 1 is a broad coverage often used for liability to denote: - "any auto" In Section II of the Business Auto Policy, liability is available for: - Named insured. Permissive operators of autos owned, hired or borrowed. Anyone insured is vicariously liable for. Exclusions under the liability section of the business auto policy include: - Employee injuries-covered under worker compensation Liability for pollution, except from the normal operating fluids of the vehicle. Liability arising from mobile equipment. Which of the following is covered under the Garage Policy? - Garage location If an insured has $100,000 of "unstacked" UM, and 2 cars on the policy, how much is available under a UM claim? - $100,000 An insured has $100 deductible Other Than Collision, and $250 deductible Collision. If a rock breaks his windshield and repairs total $675, how much will be paid? - $675, under Other Than Collision, with no deductible When searching for insurance solutions to pay for personal injuries from an auto accident, the order of payment in Florida in most cases, would be: - PIP, Med Pay, Liability, Uninsured Motorist An insured and his spouse have two cars insured under a Personal Auto Policy. What coverage is available for a car that the wife borrows from a friend to use for the weekend? - The borrowed car would have the broadest coverage available on the policy. Jack is involved in an accident - he is driving his car when hit by an at-fault driver, Sam. (Florida residents). Jack has two more cars at home. Both Jack and Sam have Basic PIP with no deductible, Med Pay coverage of $5,000, Liability of 50/100/50, and Stacked Uninsured Motorist of $50,000 on each car that they own. Jack has a medical claim of $215,000. How much will Jack's Uninsured Motorist pay for this claim? - $150,000 An insured buys an ISO Mechanical Breakdown Coverage Policy on his used car. For what length of time and mileage will he have coverage? - 12 Months / 12,000 Miles If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP with no deductible, & Med Pay of $2,000 ... what is the maximum potential payment from Jack's Personal Auto Policy to a guest passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in medical expenses? - $22,000 (PIP $10,000; Med Pay $2,000; BI $10,000) UM (Uninsured Motorist) coverage under the PAP (Personal Auto Policy) pays for: - bodily injury to the insured caused by hit and run driver Lender's interests in REAL property are protected with a Mortgage clause, how are lender's interests protected in personal property - such as automobiles? - Loss payable clause While driving on the Pennsylvania Turnpike, William's auto has a collision with a deer that jumps in front of his car. In order for coverage to be afforded, William's Personal Auto Policy must have: - Other than Collision coverage An insured took his TV to a shop for repairs, on the way, he stopped suddenly and the TV fell off the seat, breaking the TV. How will his PAP (Personal Auto Policy) respond? - The PAP will not respond. An insured has "Stacked" Uninsured Motorist with 25/50 limits on each of 2 vehicles that he owns. How much Uninsured Motorist coverage is available to the insured in the event of an accident with a hit & run driver? - 50/100 The "trigger" of the financial responsibility law is: - An accident involving bodily injury or property damage rendering the vehicle inoperable or a serious violation such as DUI. Which of the following is the lowest single limit automobile liability that meets the requirements of the Florida Financial Responsibility Law? - $30,000 An insured had an accident in another state that required liability limits of 25/50/25. Our insured had 10/20/10 limits. What happens if the liability he incurs exceeds 10/20/10? - Our insured's policy will respond to the higher limit of the other state Joe has 10/20/10 liability limits, and he borrows Sue's car. Sue has 15/30/15 limits of liability. Joe injures a pedestrian while driving Sue's car and the pedestrian's medical bills due from liability total $22,000 (PIP & Med Pay are paid out in full). How much is paid from Liability? - Sue's policy pays $15,000 & Joe's policy pays $7,000 Your insured has purchased the minimum split limit policy that meets Financial Responsibility Law in Florida. He causes the following bodily injuries to passengers: Carl $12,000 Jeanne $10,000 Charlie $10,000 How much will his policy pay? - $20,000 for the total BI portion of accident An insured has 25/50/25 limits and injured another person. The injured person won a tort claim for $30,000 against the insured and the insured's attorney charged $7,500 to defend the insured. How much is paid by the insured's insurance company? - $32,500, the policy limit and the attorney's fees for defense. Which of the following is NOT one of the "thresholds" in the "No-Fault" law? - The temporary injury of the insured Which of the following is a "defined motor vehicle" under Florida No-Fault law? - 9,500 pound SUV If an insured is injured by an at-fault driver, and has injuries of $5,000, what amount will PIP pay if he has Florida No-Fault Basic PIP with a $1,000 deductible? - $3,200 Which of the following could NOT be considered an "owner" of a motor vehicle? - A long term lease of 3 months Which of the following is true concerning the extended PIP endorsement? - Medical expense reimbursement is raised from 80% to 100% When an Additional PIP Endorsement is added to the Personal Auto Policy, we know that the policy already has - Extended PIP Endorsement Nonresidents must comply with the Florida No Fault law: - If their auto is in Florida over 90 of the last 365 days When is the named insured NOT entitled to PIP benefits? - Injured outside of Florida while a pedestrian struck by a defined motor vehicle Which of the following statements is false concerning No-Fault Auto Insurance? - Negligence must be established. An insured has Basic PIP with no deductible, in an accident he incurs medical bills of $8,000, $1,000 in lost wages, and $500 in replacement services - how much will PIP portion of policy pay? - $7,500 Jane is a Florida resident with an auto. She has PIP coverage of $10,000 with no deductible. If she is in an auto accident and has medical bills of $10,000, how much will her PIP pay? - $8,000 If Jane also has work loss of $1000 due to the auto accident, how much will her PIP pay for work loss? - $600 What if Jane's accident happened during the work day while she was driving a GEICO owned auto and Jane was out adjusting auto claims. How much would Jane's PIP pay for her medical injuries? - zero If Jane had an accident while she was driving to Orlando to go to Disney and had borrowed her neighbor's minivan so she could take 5 friends ... how much would Jane's PIP insurance pay for her medical bills of $10,000 and her work loss due to the accident of $1000? - $8600 If all 5 of Jane's friends are Florida residents who own automobiles, how much of Jane's PIP coverage is available for each of the 5 friends riding with her in the borrowed minivan? - 0 What if Jane has 5 children and she is taking them all to Disney for the day ... how much total PIP coverage is available from Jane's PIP to Jane and her 5 children in the friend's minivan? - $60,000