claims adjuster Certified professional Florida
exam questions with accurate answers
In the typical insurance sales transaction, the insurance company makes the initial offer to the
insurance applicant. Tor F - ANSWERS💫✔️-false- In the typical insurance transaction, the applicant is
the offeror who makes an offer to the insurance company (the offeree) through a signed application
plus the initial premium.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance
company, which party is the offeree? - ANSWERS💫✔️-Insurer- In the typical insurance transaction, the
applicant (offeror) makes the offer to the insurance company (offeree) through a signed application
plus a premium deposit
Curt, age 40, has purchased a property insurance policy to cover an international shipment of
firearms. The shipment is accidentally destroyed in transit, and during its investigation the insurer
learns that the firearms were stolen. Which of the following correctly explains why the insurer would
refuse to cover the loss? - ANSWERS💫✔️-The contract is unenforceable because it served an illegal
purpose.
reason-Dealing in stolen merchandize is illegal; therefore, the insurance contract is unenforceable
because it was purchased to serve an illegal purpose.
When completing an insurance application, Dusty intentionally lied about his age in order to obtain a
lower rate. What is Dusty's lie technically considered? - ANSWERS💫✔️-a misrepresentation
reason- A false statement of a material fact is a misrepresentation.
Hazel's store has an automatic sprinkler system that will be activated by a fire. In exchange for a
reduced fire insurance premium, she signs a document stating that the automatic sprinkler system will
always be in operating condition. What is this statement? - ANSWERS💫✔️-a warranty-
reason-A warranty, which is stronger than a representation, guarantees that something is true and
will remain true.
Olen buys insurance on the inventory in his warehouse, which includes a sizable quantity of watches
bearing the "Rolex" label, and Olen pays the insurance premium. After Olen reports a theft, the
insurer's investigation reveals that the watches it had agreed to insure were illegal counterfeits.
,Olen's contract with the insurer is: - ANSWERS💫✔️-unenforceable because it was for an illegal
purpose
reason- For a contracting party to be able to enforce the terms of the contract, the contract must be
for a legal purpose, and counterfeit merchandise is illegal.
With respect to requirements for a valid contract, a policyowner's payment of the policy premium is
called a(n): - ANSWERS💫✔️-consideration
reason-Consideration means something of value that both parties to a contract exchange. With an
insurance contract, the applicant's premium payment is the applicant's consideration.
Because the wording of a typical insurance policy is drafted by an insurance company and offered to
insurance buyers on a take-it-or-leave-it basis, insurance policies are considered: - ANSWERS💫✔️-
contracts of adhesion
reason- Most insurance contracts are contracts of adhesion because the policy is drafted by the
insurer and little if any negotiation is normally available with respect to the policy's wording.
When applying for a businessowners insurance policy, Brandy did not mention the hazardous and
illegal activity that goes on in the backroom of her shop because she realized no insurer that knew
about it would insure her business. What is Brandy's failure to disclose this activity considered? -
ANSWERS💫✔️-concealment
reason-The deliberate withholding of material facts is concealment.
The property insurance policy with a $500,000 limit that covers Logan's store is a contract of
indemnity. If Logan's store is partially damaged by a covered peril, what is Logan's insurer obligated to
pay?
an amount that is related to the value of the loss, not to exceed $500,000
whatever amount is awarded by the court as damages
the full $500,000
nothing, because it is only a partial loss - ANSWERS💫✔️-an amount that is related to the value of the
loss, not to exceed $500,000
reason- When a covered loss occurs under a contract of indemnity, the benefit payable is related to
the amount of the loss.
, The fact that insurance policy language is written by an insurance company and is nonnegotiable
makes insurance policies: - ANSWERS💫✔️-contracts of adhesion
reason-Most insurance contracts are contracts of adhesion because the policy is drafted by the insurer
and little if any negotiation is normally available with respect to the policy's wording
If an insurance applicant submits an application to an insurer without a premium payment, the
applicant has: - ANSWERS💫✔️-Invited the insurer to make an offer to the applicant
reason-When an applicant submits an application without the first premium, the applicant is inviting
the insurer to make an offer.
An insurer that has a history of accepting premiums up to five days beyond their due date cannot
deny a claim for a loss occurring the day after a premium was due for which of the following reasons?
- ANSWERS💫✔️-waiver and estoppel
reason-Estoppel exists when a party cannot enforce a right that it has voluntarily waived by its past
conduct-in this case, repeatedly accepting a late premium with no coverage lapse.
Although the policyholder must pay premiums to keep an insurance policy in force, the policy is
considered a unilateral policy because: - ANSWERS💫✔️-only the insurer makes an enforceable
promise
reason-Insurance contracts are unilateral contracts in which only one party-the insurer-makes a
promise that can be enforced. Although the policyholder agrees to pay the premium, the policyholder
is not obligated to do so. Of course, if he or she stops paying the premium, the insurer will cancel the
policy.
The typical property and casualty insurance policy contains a provision expressly prohibiting the
policyholder from assigning policy ownership to another party without the insurer's written consent
because the policy is a(n): - ANSWERS💫✔️-personal contract
reason-Because the property and casualty insurance policy is a personal contract, it cannot be
transferred to a third party without the insurer's consent.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance
company, which party is the offeror? - ANSWERS💫✔️-applicant
reason- In the typical insurance transaction, the applicant (offeror) makes the offer to the insurance
company (offeree) through a signed application plus a premium deposit. The beneficiary is not a party
to the contract.
exam questions with accurate answers
In the typical insurance sales transaction, the insurance company makes the initial offer to the
insurance applicant. Tor F - ANSWERS💫✔️-false- In the typical insurance transaction, the applicant is
the offeror who makes an offer to the insurance company (the offeree) through a signed application
plus the initial premium.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance
company, which party is the offeree? - ANSWERS💫✔️-Insurer- In the typical insurance transaction, the
applicant (offeror) makes the offer to the insurance company (offeree) through a signed application
plus a premium deposit
Curt, age 40, has purchased a property insurance policy to cover an international shipment of
firearms. The shipment is accidentally destroyed in transit, and during its investigation the insurer
learns that the firearms were stolen. Which of the following correctly explains why the insurer would
refuse to cover the loss? - ANSWERS💫✔️-The contract is unenforceable because it served an illegal
purpose.
reason-Dealing in stolen merchandize is illegal; therefore, the insurance contract is unenforceable
because it was purchased to serve an illegal purpose.
When completing an insurance application, Dusty intentionally lied about his age in order to obtain a
lower rate. What is Dusty's lie technically considered? - ANSWERS💫✔️-a misrepresentation
reason- A false statement of a material fact is a misrepresentation.
Hazel's store has an automatic sprinkler system that will be activated by a fire. In exchange for a
reduced fire insurance premium, she signs a document stating that the automatic sprinkler system will
always be in operating condition. What is this statement? - ANSWERS💫✔️-a warranty-
reason-A warranty, which is stronger than a representation, guarantees that something is true and
will remain true.
Olen buys insurance on the inventory in his warehouse, which includes a sizable quantity of watches
bearing the "Rolex" label, and Olen pays the insurance premium. After Olen reports a theft, the
insurer's investigation reveals that the watches it had agreed to insure were illegal counterfeits.
,Olen's contract with the insurer is: - ANSWERS💫✔️-unenforceable because it was for an illegal
purpose
reason- For a contracting party to be able to enforce the terms of the contract, the contract must be
for a legal purpose, and counterfeit merchandise is illegal.
With respect to requirements for a valid contract, a policyowner's payment of the policy premium is
called a(n): - ANSWERS💫✔️-consideration
reason-Consideration means something of value that both parties to a contract exchange. With an
insurance contract, the applicant's premium payment is the applicant's consideration.
Because the wording of a typical insurance policy is drafted by an insurance company and offered to
insurance buyers on a take-it-or-leave-it basis, insurance policies are considered: - ANSWERS💫✔️-
contracts of adhesion
reason- Most insurance contracts are contracts of adhesion because the policy is drafted by the
insurer and little if any negotiation is normally available with respect to the policy's wording.
When applying for a businessowners insurance policy, Brandy did not mention the hazardous and
illegal activity that goes on in the backroom of her shop because she realized no insurer that knew
about it would insure her business. What is Brandy's failure to disclose this activity considered? -
ANSWERS💫✔️-concealment
reason-The deliberate withholding of material facts is concealment.
The property insurance policy with a $500,000 limit that covers Logan's store is a contract of
indemnity. If Logan's store is partially damaged by a covered peril, what is Logan's insurer obligated to
pay?
an amount that is related to the value of the loss, not to exceed $500,000
whatever amount is awarded by the court as damages
the full $500,000
nothing, because it is only a partial loss - ANSWERS💫✔️-an amount that is related to the value of the
loss, not to exceed $500,000
reason- When a covered loss occurs under a contract of indemnity, the benefit payable is related to
the amount of the loss.
, The fact that insurance policy language is written by an insurance company and is nonnegotiable
makes insurance policies: - ANSWERS💫✔️-contracts of adhesion
reason-Most insurance contracts are contracts of adhesion because the policy is drafted by the insurer
and little if any negotiation is normally available with respect to the policy's wording
If an insurance applicant submits an application to an insurer without a premium payment, the
applicant has: - ANSWERS💫✔️-Invited the insurer to make an offer to the applicant
reason-When an applicant submits an application without the first premium, the applicant is inviting
the insurer to make an offer.
An insurer that has a history of accepting premiums up to five days beyond their due date cannot
deny a claim for a loss occurring the day after a premium was due for which of the following reasons?
- ANSWERS💫✔️-waiver and estoppel
reason-Estoppel exists when a party cannot enforce a right that it has voluntarily waived by its past
conduct-in this case, repeatedly accepting a late premium with no coverage lapse.
Although the policyholder must pay premiums to keep an insurance policy in force, the policy is
considered a unilateral policy because: - ANSWERS💫✔️-only the insurer makes an enforceable
promise
reason-Insurance contracts are unilateral contracts in which only one party-the insurer-makes a
promise that can be enforced. Although the policyholder agrees to pay the premium, the policyholder
is not obligated to do so. Of course, if he or she stops paying the premium, the insurer will cancel the
policy.
The typical property and casualty insurance policy contains a provision expressly prohibiting the
policyholder from assigning policy ownership to another party without the insurer's written consent
because the policy is a(n): - ANSWERS💫✔️-personal contract
reason-Because the property and casualty insurance policy is a personal contract, it cannot be
transferred to a third party without the insurer's consent.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance
company, which party is the offeror? - ANSWERS💫✔️-applicant
reason- In the typical insurance transaction, the applicant (offeror) makes the offer to the insurance
company (offeree) through a signed application plus a premium deposit. The beneficiary is not a party
to the contract.
