Mock Exam 1 Insurance Licensing Florida [100% Correct Answers]

Mock Exam 1 Insurance Licensing Florida [100% Correct Answers] A claim in the property/casualty industry is defined as: *Ans*An assertion of an alleged legal right against a person, entity, company or insurer that carries with it a demand for money as compensation for injuries or damage A couple has Coverage A limits of $250,000 on their home located in Ft. Lauderdale, FL. They suffer a wind loss to their roof from a tornado spawned by Hurricane Ernesto that results in an estimate of $11,500.00 for repairs. The adjuster deducts the Florida hurricane deductible of $5,000 from the estimate and pays them $6,500 in settlement of their property claim. This is known as the application of: *Ans*A percentage deductible A couple has insured their home for $150,000. A fire ensues and guts their home, resulting in a total loss. An appraisal of the home prior to loss results in a value of $120,000, yet the adjuster is required by law to pay the couple $150,000. This is known as the application of: *Ans*The valued policy law. An adjuster's responsibility as a fiduciary means: *Ans*The adjuster represents, and controls, the property and financial interests of the client, to whom he/she owes a high degree of loyalty and good faith. An insurance policy is often referred to as a contract of adhesion. This means: *Ans*If any of the wording or language in the policy is vague or ambiguous, if the meaning of the wording is difficult to understand or interpret, or if what is written can be interpreted to have different meanings, the law is well settled that the interpretation shall be in favor of the party who did not control its terms...in this case, the policyholder. Assume that five years ago a couple insured their home for [its then appraised value of] $60,000. Two weeks ago they had a stove fire resulting in an estimated loss of $15,000 for repairs. The adjuster finds that the value of their home is now $100,000, but the home is still only insured for $60,000 and has a deductible of $500. The policy has an 80% coinsurance clause. How much should the adjuster pay to the couple? *Ans*10,875 Breach of contract by a carrier or its adjuster, through non-payment or non-compliance with policy requirements, could have which of the following consequences for a carrier (select one from the following): *Ans*If found guilty of a breach of contract, the carrier could be punished with a "bad faith" verdict that would cost it millions of dollars. Describe the coverages provided in a split limit policy of 10/20/10. *Ans*The coverage provides up to $10,000 of liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals, and $10,000 for property damage. Describe the difference between a peril and a hazard. *Ans*A peril is a cause of loss, like fire. A hazard is a condition that exists beforehand that increases the likelihood of such a loss, like a messy storeroom or garage that contains lots of toxic chemicals, oily rags, etc. In today's society, the most important factor in the purchase of insurance is: *Ans*Trust Negligence is described as: *Ans*Fault that arises from doing something you shou