FL Adjuster practice test (245 Questions
and Answers).
What requirements must Wholesalers and Distributors meet in order to be
eligible for a BOP? - Correct Answers 25% or less of floor space is
available to the general public, and less than 25% of gross income may
come from retail sales.
The first step in the claim process is to - Correct Answers Determining
time and cost of repairs
In Florida, an insurer has ___ days to pay or deny a claim. - Correct
Answers 90
Jerome was shopping at ABC Imports when a light fixture fell from the
ceiling and hit him on the head. Jerome's injuries resulted in an extended
hospital stay, so he sued ABC Imports and was awarded $400,000.
Assuming ABC Imports carries a CGL with a General Aggregate of
$750,000 and a per occurrence limit of $250,000, what is the maximum that
ABC's insurer will pay for Jerome's injuries? - Correct Answers $250,000
Which of the following best describes inland marine insurance? - Correct
Answers Insurance designed to protect property being transported on land
and property related to transportation
A plane was damaged while being towed by another vehicle. By policy
definition, this damage is considered to have occurred while the aircraft
was: - Correct Answers not in motion
Citizens Insurance - Correct Answers is available to certain people who
are not residents of Florida.
This provision in Ocean Marine insurance obligates insurers of various
interests to share the cost of losses associated with a captain's decision to
voluntarily sacrifice a part of the ship or its cargo. - Correct Answers
General Average
,Walter works for a shipping company, delivering packages and picking up
orders. He lives very close to work and the grocery store is only a few
blocks away, so he can live conveniently without owning a car. However,
he would like to have some Personal Injury Protection, just in case he ever
gets injured in an accident. Which BAP endorsement could his employer
use to give him this coverage? - Correct Answers Named Individuals
Broadened PIP
Which of the following is NOT a rating factor for a personal auto liability
policy? - Correct Answers The condition of the vehicle
Phil heads over to visit his friend Josh, who is sick with the flu. While at the
house, Josh fails to cover his mouth when he coughs and Phil ends up
contacting the flu. Phil files a claim with Josh's insurer for medical
expenses and lost income while Phil is out sick from work. The insurer
denies the claim because - Correct Answers disease transmitted from the
insured to a third party is excluded.
Jerrod owns two planes and has liability insurance with the following limits:
Bodily Injury Excluding Passengers: $250,000/person;
$500,000/occurrence
Passenger Bodily Injury: $250,000/person; $750,000/occurrence
Property Damage: $500,000/occurrence.
When Jerrod crashes into a car while landing his plane, he injures the two
people in the car and completely wrecks the car. The first person in the car
suffers $200,000 in injuries, and the second person suffers $300,000 in
injuries. Replacing the car costs $45,000. Without taking deductibles into
account, how much will Jerrod have to pay out of his own pocket? -
Correct Answers 50,000
Which of the following endorsements is mandatory for all Florida residential
property policies? - Correct Answers Catastrophic ground collapse
Maria was in the hospital for five days, recovering from a stroke. The bill
she received for her hospital stay broke down the charges for room, lab
fees, meals, and nursing care. However, her insurer paid a flat daily rate
and she was left responsible for paying the remaining charges. What type
of insurance does Maria have? - Correct Answers Hospital Indemnity
insurance
,ABC Roofing has two CGL policies that cover the same losses. Both
policies are occurrence forms, thus pay out on a pro rata basis. The first
policy is through KLM Insurance and has a limit of $300,000. The second is
through XYZ Mutual, with a limit of $600,000. One day, ABC Roofing
suffers an occurrence resulting in a $150,000 covered loss. How will this
loss be indemnified? - Correct Answers KLM Insurance will pay $50,000;
XYZ Mutual will pay $100,000
Florida Insurance Code states the qualifications required to become a
licensed insurance adjuster in the state of Florida. Which of the following is
NOT one of the requirements for applicants? - Correct Answers Spend 20
hours in the field working with a licensed insurance adjuster
Which of the following automobile components is NOT covered by a
Mechanical Breakdown Insurance policy? - Correct Answers Tires
Dr. Smith has a claims-made malpractice insurance policy with a policy
period from June 30, 2006 to June 30, 2007. Which claim would trigger this
policy? - Correct Answers A claims-made policy covers claims initiated
during the policy period. In this situation, that would include claims filed
between June 30, 2006 and 30, 2007.
Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy,
which is set to expire on May 31. Which of the following statements is
TRUE? - Correct Answers Lemon Insurance must notify Hugh at least 45
days before the policy expires.
Which of these statements is true? - Correct Answers Flood insurance is
always backed by the National Flood Insurance Program.
Which of the following is TRUE about workers' compensation insurance? -
Correct Answers It benefits both the employee and the employer.
Martin works as an accountant for Smith Manufacturing. Smith
Manufacturing has tasked Martin with finding an insurance provider to meet
the company's needs, so Martin interviews several insurers. At the end of
one interview with PRO Insurance, the insurance representative hands
Martin an envelope containing $5,000 in cash, on the condition that Smith
Manufacturing selects PRO Insurance as its insurance provider. What
would we call the $5,000 in cash? - Correct Answers A kickback
, In a declaratory judgment action: - Correct Answers the court decides the
legal rights of both parties.
When discussing farm insurance, which of the following most accurately
describes "scheduled property"? - Correct Answers Itemized property
According to the "Definitions" section of a Personal Auto Policy, which of
the following is NOT "occupying" her vehicle? - Correct Answers Rachel
leaves her cat in her car, with the windows cracked, while she goes into the
drugstore to fill a prescription
Which characteristic would prohibit a convenience store/gas station from
purchasing a BOP? - Correct Answers The operation of a car wash
A ___________ is a law set forth by a governing body such as a state or
city. - Correct Answers statutory law
Ron's truck experiences a mechanical breakdown and he has it towed to an
auto repair facility. Upon further examination of Ron's claim, his Mechanical
Breakdown Insurance provider denies coverage. Which of the following
would be a valid reason for this denial? - Correct Answers Ron had been
hauling a large boat, which overloaded the vehicle and caused the
breakdown.
Greta's Ski Supply is covered under the Building and Personal Property
Coverage Form with limits of $50,000 for business personal property and
$100,000 for the building. The policy also has a $500 deductible. When a
tornado tears through the vicinity, the store suffered $10,000 in damage to
the building and $20,000 in losses to the contents. In addition, Greta has to
fork out an extra $1,000 for debris removal. How much will Greta receive
from her insurer? - Correct Answers 30,500
Which of the following is NOT excluded from coverage under a Mechanical
Breakdown Insurance policy? - Correct Answers Breakdown due to the
cracking of an engine block
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her
uninsured car into Sam's. Sam's own insurance company, ABC Insurance,
immediately pays him $5,000 for his injuries. Sam then ponders whether to
and Answers).
What requirements must Wholesalers and Distributors meet in order to be
eligible for a BOP? - Correct Answers 25% or less of floor space is
available to the general public, and less than 25% of gross income may
come from retail sales.
The first step in the claim process is to - Correct Answers Determining
time and cost of repairs
In Florida, an insurer has ___ days to pay or deny a claim. - Correct
Answers 90
Jerome was shopping at ABC Imports when a light fixture fell from the
ceiling and hit him on the head. Jerome's injuries resulted in an extended
hospital stay, so he sued ABC Imports and was awarded $400,000.
Assuming ABC Imports carries a CGL with a General Aggregate of
$750,000 and a per occurrence limit of $250,000, what is the maximum that
ABC's insurer will pay for Jerome's injuries? - Correct Answers $250,000
Which of the following best describes inland marine insurance? - Correct
Answers Insurance designed to protect property being transported on land
and property related to transportation
A plane was damaged while being towed by another vehicle. By policy
definition, this damage is considered to have occurred while the aircraft
was: - Correct Answers not in motion
Citizens Insurance - Correct Answers is available to certain people who
are not residents of Florida.
This provision in Ocean Marine insurance obligates insurers of various
interests to share the cost of losses associated with a captain's decision to
voluntarily sacrifice a part of the ship or its cargo. - Correct Answers
General Average
,Walter works for a shipping company, delivering packages and picking up
orders. He lives very close to work and the grocery store is only a few
blocks away, so he can live conveniently without owning a car. However,
he would like to have some Personal Injury Protection, just in case he ever
gets injured in an accident. Which BAP endorsement could his employer
use to give him this coverage? - Correct Answers Named Individuals
Broadened PIP
Which of the following is NOT a rating factor for a personal auto liability
policy? - Correct Answers The condition of the vehicle
Phil heads over to visit his friend Josh, who is sick with the flu. While at the
house, Josh fails to cover his mouth when he coughs and Phil ends up
contacting the flu. Phil files a claim with Josh's insurer for medical
expenses and lost income while Phil is out sick from work. The insurer
denies the claim because - Correct Answers disease transmitted from the
insured to a third party is excluded.
Jerrod owns two planes and has liability insurance with the following limits:
Bodily Injury Excluding Passengers: $250,000/person;
$500,000/occurrence
Passenger Bodily Injury: $250,000/person; $750,000/occurrence
Property Damage: $500,000/occurrence.
When Jerrod crashes into a car while landing his plane, he injures the two
people in the car and completely wrecks the car. The first person in the car
suffers $200,000 in injuries, and the second person suffers $300,000 in
injuries. Replacing the car costs $45,000. Without taking deductibles into
account, how much will Jerrod have to pay out of his own pocket? -
Correct Answers 50,000
Which of the following endorsements is mandatory for all Florida residential
property policies? - Correct Answers Catastrophic ground collapse
Maria was in the hospital for five days, recovering from a stroke. The bill
she received for her hospital stay broke down the charges for room, lab
fees, meals, and nursing care. However, her insurer paid a flat daily rate
and she was left responsible for paying the remaining charges. What type
of insurance does Maria have? - Correct Answers Hospital Indemnity
insurance
,ABC Roofing has two CGL policies that cover the same losses. Both
policies are occurrence forms, thus pay out on a pro rata basis. The first
policy is through KLM Insurance and has a limit of $300,000. The second is
through XYZ Mutual, with a limit of $600,000. One day, ABC Roofing
suffers an occurrence resulting in a $150,000 covered loss. How will this
loss be indemnified? - Correct Answers KLM Insurance will pay $50,000;
XYZ Mutual will pay $100,000
Florida Insurance Code states the qualifications required to become a
licensed insurance adjuster in the state of Florida. Which of the following is
NOT one of the requirements for applicants? - Correct Answers Spend 20
hours in the field working with a licensed insurance adjuster
Which of the following automobile components is NOT covered by a
Mechanical Breakdown Insurance policy? - Correct Answers Tires
Dr. Smith has a claims-made malpractice insurance policy with a policy
period from June 30, 2006 to June 30, 2007. Which claim would trigger this
policy? - Correct Answers A claims-made policy covers claims initiated
during the policy period. In this situation, that would include claims filed
between June 30, 2006 and 30, 2007.
Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy,
which is set to expire on May 31. Which of the following statements is
TRUE? - Correct Answers Lemon Insurance must notify Hugh at least 45
days before the policy expires.
Which of these statements is true? - Correct Answers Flood insurance is
always backed by the National Flood Insurance Program.
Which of the following is TRUE about workers' compensation insurance? -
Correct Answers It benefits both the employee and the employer.
Martin works as an accountant for Smith Manufacturing. Smith
Manufacturing has tasked Martin with finding an insurance provider to meet
the company's needs, so Martin interviews several insurers. At the end of
one interview with PRO Insurance, the insurance representative hands
Martin an envelope containing $5,000 in cash, on the condition that Smith
Manufacturing selects PRO Insurance as its insurance provider. What
would we call the $5,000 in cash? - Correct Answers A kickback
, In a declaratory judgment action: - Correct Answers the court decides the
legal rights of both parties.
When discussing farm insurance, which of the following most accurately
describes "scheduled property"? - Correct Answers Itemized property
According to the "Definitions" section of a Personal Auto Policy, which of
the following is NOT "occupying" her vehicle? - Correct Answers Rachel
leaves her cat in her car, with the windows cracked, while she goes into the
drugstore to fill a prescription
Which characteristic would prohibit a convenience store/gas station from
purchasing a BOP? - Correct Answers The operation of a car wash
A ___________ is a law set forth by a governing body such as a state or
city. - Correct Answers statutory law
Ron's truck experiences a mechanical breakdown and he has it towed to an
auto repair facility. Upon further examination of Ron's claim, his Mechanical
Breakdown Insurance provider denies coverage. Which of the following
would be a valid reason for this denial? - Correct Answers Ron had been
hauling a large boat, which overloaded the vehicle and caused the
breakdown.
Greta's Ski Supply is covered under the Building and Personal Property
Coverage Form with limits of $50,000 for business personal property and
$100,000 for the building. The policy also has a $500 deductible. When a
tornado tears through the vicinity, the store suffered $10,000 in damage to
the building and $20,000 in losses to the contents. In addition, Greta has to
fork out an extra $1,000 for debris removal. How much will Greta receive
from her insurer? - Correct Answers 30,500
Which of the following is NOT excluded from coverage under a Mechanical
Breakdown Insurance policy? - Correct Answers Breakdown due to the
cracking of an engine block
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her
uninsured car into Sam's. Sam's own insurance company, ABC Insurance,
immediately pays him $5,000 for his injuries. Sam then ponders whether to
