Florida Claims Adjuster Exam Possible Questions with Verified Answers | Latest 2023/2024

Florida Claims Adjuster Exam Possible Questions with Verified Answers | Latest 2023/2024 For purposes of insurance, a "loss" is best defined as: -- an unwelcomed, unplanned reduction in economic value An automatic sprinkler system in a hotel building is a risk reduction measure because it: - - 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: -- a speculative risk Which of the following is an example of pure risk? -- 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: - - favors Best Manufacturing The fact that insurance policy language is written by an insurance company and is nonnegotiable makes insurance policies: -- contracts of adhesion Which of the following correctly identifies three elements that must be present to create an enforceable contract? -- 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): -- 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? -- 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 me at spoils. The loss of the meat is what type of loss? -- consequential "Replacement cost minus physical depreciation" describes which type of loss valuation method? -- actual cash value From a property insurance perspective, which of the following is NOT a basic type of construction? -- steel For an insurer to pay a property insurance claim, when must the policyholder have an insurable interest in the insured property? -- 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? -- 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? -- 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 -- 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? -- 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 -- 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)? -- 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: -- strict (absolute) liability