CLAIMS ADJUSTER FLORIDA QUIZZES
WITH ANSWERS |GRADED A+ .
For purposes of insurance, a "loss" is best defined as: - correct Answers -an unwelcomed, unplanned
reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure because it: - correct
Answers -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 Answers -a speculative risk
Which of the following is an example of pure risk? - correct Answers -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 Answers -favors Best
Manufacturing
The fact that insurance policy language is written by an insurance company and is nonnegotiable makes
insurance policies: - correct Answers -contracts of adhesion
Which of the following correctly identifies three elements that must be present to create an enforceable
contract? - correct Answers -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 Answers -competent party
1
,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 Answers -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 Answers -consequential
"Replacement cost minus physical depreciation" describes which type of loss valuation method? -
correct Answers -actual cash value
From a property insurance perspective, which of the following is NOT a basic type of construction? -
correct Answers -steel
For an insurer to pay a property insurance claim, when must the policyholder have an insurable interest
in the insured property? - correct Answers -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 Answers -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 Answers -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 Answers -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
2
,destroyed half the house. What is the proximate cause of the damage to Marian's house? - correct
Answers -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 Answers -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 Answers -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 Answers -
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 Answers -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 Answers -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:
3
, 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 Answers -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 Answers -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 Answers -cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? - correct Answers -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 Answers -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.
4
WITH ANSWERS |GRADED A+ .
For purposes of insurance, a "loss" is best defined as: - correct Answers -an unwelcomed, unplanned
reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure because it: - correct
Answers -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 Answers -a speculative risk
Which of the following is an example of pure risk? - correct Answers -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 Answers -favors Best
Manufacturing
The fact that insurance policy language is written by an insurance company and is nonnegotiable makes
insurance policies: - correct Answers -contracts of adhesion
Which of the following correctly identifies three elements that must be present to create an enforceable
contract? - correct Answers -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 Answers -competent party
1
,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 Answers -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 Answers -consequential
"Replacement cost minus physical depreciation" describes which type of loss valuation method? -
correct Answers -actual cash value
From a property insurance perspective, which of the following is NOT a basic type of construction? -
correct Answers -steel
For an insurer to pay a property insurance claim, when must the policyholder have an insurable interest
in the insured property? - correct Answers -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 Answers -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 Answers -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 Answers -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
2
,destroyed half the house. What is the proximate cause of the damage to Marian's house? - correct
Answers -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 Answers -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 Answers -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 Answers -
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 Answers -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 Answers -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:
3
, 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 Answers -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 Answers -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 Answers -cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? - correct Answers -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 Answers -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.
4
