Florida Certified Adjuster Pre-Licensing
Exam Questions & Answers 100%
Accurate
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: - ANSWER-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? -
ANSWER-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: - ANSWER-risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory,
conditional, unilateral, universal) - ANSWER-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: - ANSWER-issue a complaint against the policyholder
A reciprocal insurer is: - ANSWER-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? - ANSWER-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? -
ANSWER-mediation
How is the power to bind transferred to an adjuster? - ANSWER-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. - ANSWER-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 - ANSWER-C. Litigation
,In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - ANSWER-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? - ANSWER-$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.
Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the insurer
and the claimant.
B. An insurance adjuster is an agent.
C. An insurance adjuster who settles claims on behalf of an insurer has the power to
bind that insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the insurer
through a written contract. - ANSWER-D. An insurance adjuster receives her authority
to sell products on behalf of the insurer through a written contract.
After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:
A. confiscation of property by the government.
B. increased repair costs due to laws or codes.
C. any change that decreases the value of the property.
, D. remediation of pollutants. - ANSWER-B. increased repair costs due to laws or codes.
Coverage C - Personal Property of a homeowners policy typically excludes:
A. furniture.
B. fish.
C. dishes.
D. blanket coverage of personal property. - ANSWER-B. fish
Stu has a collection of rare comic books. He wants to purchase theft insurance for his
collection, separate from his home and other property. What term most accurately
describes the type of policy Stu would purchase?
A. Valuable Papers Policy
B. Actual Cash Value Policy
C. Standard Fire Policy
D. Monoline Policy - ANSWER-D. Monoline Policy
Strong winds have torn a hole in Janet's roof. On top of that, heavy rain is expected in
her area in the next few days. Figuring it would simply be too much effort to put a tarp
over the hole in her roof, Janet elects to do nothing. The rains come and destroy several
of her possessions inside her home. Janet files a claim with her insurer for the losses,
but it comes back denied. This is because:
A. Homeowners insurance covers personal property at an actual cash value, and her
personal items were worth nothing after they were destroyed.
B. Storm damage is not covered under a standard homeowner's policy.
C. Janet failed to make a reasonable effort to protect the property from further
damages.
D. Janet's policy has coverage for wind damage, but not flood damage. - ANSWER-C.
Janet failed to make a reasonable effort to protect the property from further damages.
Exam Questions & Answers 100%
Accurate
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: - ANSWER-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? -
ANSWER-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: - ANSWER-risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory,
conditional, unilateral, universal) - ANSWER-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: - ANSWER-issue a complaint against the policyholder
A reciprocal insurer is: - ANSWER-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? - ANSWER-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? -
ANSWER-mediation
How is the power to bind transferred to an adjuster? - ANSWER-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. - ANSWER-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 - ANSWER-C. Litigation
,In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - ANSWER-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? - ANSWER-$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.
Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the insurer
and the claimant.
B. An insurance adjuster is an agent.
C. An insurance adjuster who settles claims on behalf of an insurer has the power to
bind that insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the insurer
through a written contract. - ANSWER-D. An insurance adjuster receives her authority
to sell products on behalf of the insurer through a written contract.
After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:
A. confiscation of property by the government.
B. increased repair costs due to laws or codes.
C. any change that decreases the value of the property.
, D. remediation of pollutants. - ANSWER-B. increased repair costs due to laws or codes.
Coverage C - Personal Property of a homeowners policy typically excludes:
A. furniture.
B. fish.
C. dishes.
D. blanket coverage of personal property. - ANSWER-B. fish
Stu has a collection of rare comic books. He wants to purchase theft insurance for his
collection, separate from his home and other property. What term most accurately
describes the type of policy Stu would purchase?
A. Valuable Papers Policy
B. Actual Cash Value Policy
C. Standard Fire Policy
D. Monoline Policy - ANSWER-D. Monoline Policy
Strong winds have torn a hole in Janet's roof. On top of that, heavy rain is expected in
her area in the next few days. Figuring it would simply be too much effort to put a tarp
over the hole in her roof, Janet elects to do nothing. The rains come and destroy several
of her possessions inside her home. Janet files a claim with her insurer for the losses,
but it comes back denied. This is because:
A. Homeowners insurance covers personal property at an actual cash value, and her
personal items were worth nothing after they were destroyed.
B. Storm damage is not covered under a standard homeowner's policy.
C. Janet failed to make a reasonable effort to protect the property from further
damages.
D. Janet's policy has coverage for wind damage, but not flood damage. - ANSWER-C.
Janet failed to make a reasonable effort to protect the property from further damages.
