Claims Adjuster Florida with correct
answers
For purposes of insurance, a "loss" is best defined as: - CORRECT ANSWER-an
unwelcomed, unplanned reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure because it:
- CORRECT ANSWER-reduces the amount of damage that a fire is likely to do
Insuring a new restaurant against business failure is not possible because business
success or failure is: - CORRECT ANSWER-a speculative risk
Which of the following is an example of pure risk? - CORRECT ANSWER-the possibility
of a business being flooded
Zenith Insurance Company issues a policy to Best Manufacturing Company. A dispute
arises between Zenith and Best on the meaning of an ambiguous clause in their
contract. The matter goes to court, which can be expected to interpret the clause in a
manner that: - CORRECT ANSWER-favors Best Manufacturing
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - CORRECT ANSWER-contracts of adhesion
Which of the following correctly identifies three elements that must be present to create
an enforceable contract? - CORRECT ANSWER-acceptance, consideration, and offer
Rhonda's parents bought her a car for her sixteenth birthday and made her responsible
for maintaining and insuring it. However, when Rhonda applied for auto insurance after
getting her driver's license, she was told that she could not enter into a binding
insurance contract because, according to the law in her state, a 16-year-old does not
qualify as a(n): - CORRECT ANSWER-competent party
,A fire severely damages Carl's home, making it uninhabitable. He moves his family to a
hotel while the house is repaired. The additional expenses incurs in housing the family
are considered what type of loss? - CORRECT ANSWER-indirect
Butch's Meat Market loses electrical power during a flood. The business closes for
several days, during which time there is no refrigeration and a large quantity of meat
spoils. The loss of the meat is what type of loss? - CORRECT ANSWER-consequential
"Replacement cost minus physical depreciation" describes which type of loss valuation
method? - CORRECT ANSWER-actual cash value
From a property insurance perspective, which of the following is NOT a basic type of
construction? - CORRECT ANSWER-steel
For an insurer to pay a property insurance claim, when must the policyholder have an
insurable interest in the insured property? - CORRECT ANSWER-at the time of the loss
Ken's house has an exterior layer of brick that covers wooden walls supported by
wooden 2-by-4 studs. What type of construction does Ken's house have? - CORRECT
ANSWER-masonry veneer
Corinne purchased her home with a 10 percent down payment and a 90 percent
mortgage from Sidney Bank. Why does Sidney Bank have an insurable interest in
Corinne's house? - CORRECT ANSWER-The bank faces the possibility of a loss if
Corinne's house is damaged or destroyed.
All of the following are perils EXCEPT:
texting while driving
theft
lightning
windstorm - CORRECT ANSWER-texting while driving
A dump truck collided with a tall oak tree in Marian's front yard. The tree fell onto her
house, breaking a glass picture window and knocking a lamp off the table inside it.
Sparks from the lamp started a fire that destroyed half the house. What is the proximate
cause of the damage to Marian's house? - CORRECT ANSWER-the collision
All of the following causes of loss are commonly listed as excluded perils in open perils
property insurance policies, EXCEPT:
wear and tear
flood
war
vandalism - CORRECT ANSWER-vandalism
While a homeowner is out of town, a group of teenagers break into her house, throw a
beer party, and damage the interior without stealing anything. Connie's resulting
,property insurance claim will be covered if her policy covers what peril(s)? - CORRECT
ANSWER-vandalism
Laura owns poisonous snakes on her property, which she uses for venom research
purposes. One of the snakes escaped and within hours bit a neighbor who sued Laura.
Though Laura was not negligent in her ownership of the snakes, the plaintiff easily won
the suit based on the doctrine of: - CORRECT ANSWER-strict (absolute) liability
Which one of the following incidents is an example of vicarious liability?
Rudy is held responsible for an accident caused by his employee.
Dominic is held responsible for food poisoning due to a pizza he delivered.
Edie is held responsible for striking a pedestrian with her bicycle.
Lilly is held responsible for her cat's injury to Lilly's guest. - CORRECT ANSWER-Rudy
is held responsible for an accident caused by his employee.
Bill's children have grown up and moved away, but the tree house that he built for them
now draws other neighborhood children despite his handmade "No Trespassing" sign. If
a neighbor's child is injured by falling from the tree house, Bill might be held liable for
the child's injuries under what legal doctrine or principle? - CORRECT ANSWER-
attractive nuisance
Lorraine was parking her car when her brakes failed, and she struck the car next to her,
which was owned by Marty. In this case, all the following statements are correct
EXCEPT:
The rolling of Lorraine's car into Marty's car was the proximate cause of the damage.
The costs to repair Marty's car represent compensable damages.
The accident was a breach of duty on Lorraine's part.
Lorraine had a duty to keep her car from striking Marty's car. - CORRECT ANSWER-
The rolling of Lorraine's car into Marty's car was the proximate cause of the damage.
The gradually expanding brown spot on the ceiling of his barbershop suggests that
Edmond might have a plumbing leak, but he ignores it because any drips from the
ceiling fall into a sink. When the ceiling collapses because of water damage, Edmond
finally submits an insurance claim that the insurer denies because his policy has an
exclusion for: - CORRECT ANSWER-water leakage or seepage
Many endorsements are attached to Bettie's policy. If she examines them closely, she
will probably find one or more endorsements that do all the following EXCEPT:
expand coverage to cover a specific exposure
add exclusions
eliminate an exclusion
cancel the policy - CORRECT ANSWER-cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? -
CORRECT ANSWER-to identify words and phrases that are defined in the policy
, Which one of the following is NOT a type of provision found in property and casualty
insurance policies?
declarations
insertions
definitions
conditions - CORRECT ANSWER-insertions
The standard mortgage (mortgagee) clause in a property insurance policy covering real
property does which of the following?
-It requires the lender to purchase property insurance on the mortgaged property.
-It ensures that the mortgage lender is paid if mortgaged property suffers a loss.
-It makes the lender the owner of the property if the borrower does not maintain
insurance on the mortgaged property.
-It requires the lender to pay off the mortgage should a loss occur on the mortgaged
property. - CORRECT ANSWER-It ensures that the mortgage lender is paid if
mortgaged property suffers a loss.
With respect to property and casualty insurance policies, "subrogation" refers to: -
CORRECT ANSWER-the insurer's right to recover its claim payment from the party that
was responsible for the loss
When a bank is named as a mortgagee in a customer's homeowners insurance policy,
the bank: - CORRECT ANSWER-is entitled to advance written notice of any policy
cancellation
While working at his service station, Bert mistakenly fueled a customer's truck with
gasoline rather than diesel fuel, damaging the truck's engine. In responding to the
trucker's liability claim for damages, Bert's insurance policy requires him to perform all
the following duties EXCEPT: - CORRECT ANSWER-try to settle the claim on his own
How do public adjusters primarily differ from staff or independent adjusters? -
CORRECT ANSWER-Public adjusters represent insureds, while other adjusters
represent insurers.
Most policies require the insured to do all of the following EXCEPT:
notify the insurer promptly
identify the cause of a loss
protect the property from further damage
notify the police if the law has been violated - CORRECT ANSWER-identify the cause
of a loss
When settling a property claim, an insurer may offer the insured a choice of each of the
following EXCEPT:
payment of the insured value of the property
replacement of the damaged property
reduction in premium to insure the damaged property
answers
For purposes of insurance, a "loss" is best defined as: - CORRECT ANSWER-an
unwelcomed, unplanned reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure because it:
- CORRECT ANSWER-reduces the amount of damage that a fire is likely to do
Insuring a new restaurant against business failure is not possible because business
success or failure is: - CORRECT ANSWER-a speculative risk
Which of the following is an example of pure risk? - CORRECT ANSWER-the possibility
of a business being flooded
Zenith Insurance Company issues a policy to Best Manufacturing Company. A dispute
arises between Zenith and Best on the meaning of an ambiguous clause in their
contract. The matter goes to court, which can be expected to interpret the clause in a
manner that: - CORRECT ANSWER-favors Best Manufacturing
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - CORRECT ANSWER-contracts of adhesion
Which of the following correctly identifies three elements that must be present to create
an enforceable contract? - CORRECT ANSWER-acceptance, consideration, and offer
Rhonda's parents bought her a car for her sixteenth birthday and made her responsible
for maintaining and insuring it. However, when Rhonda applied for auto insurance after
getting her driver's license, she was told that she could not enter into a binding
insurance contract because, according to the law in her state, a 16-year-old does not
qualify as a(n): - CORRECT ANSWER-competent party
,A fire severely damages Carl's home, making it uninhabitable. He moves his family to a
hotel while the house is repaired. The additional expenses incurs in housing the family
are considered what type of loss? - CORRECT ANSWER-indirect
Butch's Meat Market loses electrical power during a flood. The business closes for
several days, during which time there is no refrigeration and a large quantity of meat
spoils. The loss of the meat is what type of loss? - CORRECT ANSWER-consequential
"Replacement cost minus physical depreciation" describes which type of loss valuation
method? - CORRECT ANSWER-actual cash value
From a property insurance perspective, which of the following is NOT a basic type of
construction? - CORRECT ANSWER-steel
For an insurer to pay a property insurance claim, when must the policyholder have an
insurable interest in the insured property? - CORRECT ANSWER-at the time of the loss
Ken's house has an exterior layer of brick that covers wooden walls supported by
wooden 2-by-4 studs. What type of construction does Ken's house have? - CORRECT
ANSWER-masonry veneer
Corinne purchased her home with a 10 percent down payment and a 90 percent
mortgage from Sidney Bank. Why does Sidney Bank have an insurable interest in
Corinne's house? - CORRECT ANSWER-The bank faces the possibility of a loss if
Corinne's house is damaged or destroyed.
All of the following are perils EXCEPT:
texting while driving
theft
lightning
windstorm - CORRECT ANSWER-texting while driving
A dump truck collided with a tall oak tree in Marian's front yard. The tree fell onto her
house, breaking a glass picture window and knocking a lamp off the table inside it.
Sparks from the lamp started a fire that destroyed half the house. What is the proximate
cause of the damage to Marian's house? - CORRECT ANSWER-the collision
All of the following causes of loss are commonly listed as excluded perils in open perils
property insurance policies, EXCEPT:
wear and tear
flood
war
vandalism - CORRECT ANSWER-vandalism
While a homeowner is out of town, a group of teenagers break into her house, throw a
beer party, and damage the interior without stealing anything. Connie's resulting
,property insurance claim will be covered if her policy covers what peril(s)? - CORRECT
ANSWER-vandalism
Laura owns poisonous snakes on her property, which she uses for venom research
purposes. One of the snakes escaped and within hours bit a neighbor who sued Laura.
Though Laura was not negligent in her ownership of the snakes, the plaintiff easily won
the suit based on the doctrine of: - CORRECT ANSWER-strict (absolute) liability
Which one of the following incidents is an example of vicarious liability?
Rudy is held responsible for an accident caused by his employee.
Dominic is held responsible for food poisoning due to a pizza he delivered.
Edie is held responsible for striking a pedestrian with her bicycle.
Lilly is held responsible for her cat's injury to Lilly's guest. - CORRECT ANSWER-Rudy
is held responsible for an accident caused by his employee.
Bill's children have grown up and moved away, but the tree house that he built for them
now draws other neighborhood children despite his handmade "No Trespassing" sign. If
a neighbor's child is injured by falling from the tree house, Bill might be held liable for
the child's injuries under what legal doctrine or principle? - CORRECT ANSWER-
attractive nuisance
Lorraine was parking her car when her brakes failed, and she struck the car next to her,
which was owned by Marty. In this case, all the following statements are correct
EXCEPT:
The rolling of Lorraine's car into Marty's car was the proximate cause of the damage.
The costs to repair Marty's car represent compensable damages.
The accident was a breach of duty on Lorraine's part.
Lorraine had a duty to keep her car from striking Marty's car. - CORRECT ANSWER-
The rolling of Lorraine's car into Marty's car was the proximate cause of the damage.
The gradually expanding brown spot on the ceiling of his barbershop suggests that
Edmond might have a plumbing leak, but he ignores it because any drips from the
ceiling fall into a sink. When the ceiling collapses because of water damage, Edmond
finally submits an insurance claim that the insurer denies because his policy has an
exclusion for: - CORRECT ANSWER-water leakage or seepage
Many endorsements are attached to Bettie's policy. If she examines them closely, she
will probably find one or more endorsements that do all the following EXCEPT:
expand coverage to cover a specific exposure
add exclusions
eliminate an exclusion
cancel the policy - CORRECT ANSWER-cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? -
CORRECT ANSWER-to identify words and phrases that are defined in the policy
, Which one of the following is NOT a type of provision found in property and casualty
insurance policies?
declarations
insertions
definitions
conditions - CORRECT ANSWER-insertions
The standard mortgage (mortgagee) clause in a property insurance policy covering real
property does which of the following?
-It requires the lender to purchase property insurance on the mortgaged property.
-It ensures that the mortgage lender is paid if mortgaged property suffers a loss.
-It makes the lender the owner of the property if the borrower does not maintain
insurance on the mortgaged property.
-It requires the lender to pay off the mortgage should a loss occur on the mortgaged
property. - CORRECT ANSWER-It ensures that the mortgage lender is paid if
mortgaged property suffers a loss.
With respect to property and casualty insurance policies, "subrogation" refers to: -
CORRECT ANSWER-the insurer's right to recover its claim payment from the party that
was responsible for the loss
When a bank is named as a mortgagee in a customer's homeowners insurance policy,
the bank: - CORRECT ANSWER-is entitled to advance written notice of any policy
cancellation
While working at his service station, Bert mistakenly fueled a customer's truck with
gasoline rather than diesel fuel, damaging the truck's engine. In responding to the
trucker's liability claim for damages, Bert's insurance policy requires him to perform all
the following duties EXCEPT: - CORRECT ANSWER-try to settle the claim on his own
How do public adjusters primarily differ from staff or independent adjusters? -
CORRECT ANSWER-Public adjusters represent insureds, while other adjusters
represent insurers.
Most policies require the insured to do all of the following EXCEPT:
notify the insurer promptly
identify the cause of a loss
protect the property from further damage
notify the police if the law has been violated - CORRECT ANSWER-identify the cause
of a loss
When settling a property claim, an insurer may offer the insured a choice of each of the
following EXCEPT:
payment of the insured value of the property
replacement of the damaged property
reduction in premium to insure the damaged property
