Florida Certified Adjuster Practice Exam __
Questions With Verified Solutions
Jane has $150,000 homeowners policy with a 3% percentage deductible. One
night, In oven fire destroys her kitchen, causing $50,000 in damage. How
much of the damage falls under Janes responsibility? Correct Ans -
$4,500
Xavier owns a small insurance company. Recently the company want to bid to
ensure a new housing development in Omaha, Nebraska. His company can
handle any claims that arise, but if a series of tornadoes were to tear through
the area and destroy the entire development, Xavier's company would suffer
financially. Which type of insure could help Xavier's company protect itself the
most from this potential loss? Correct Ans - A re-insurer
Which of the following situations does NOT involve an instance of "pure risk?"
Correct Ans - Loss of money invested in the stock market
Which of the following is an insurable risk? Correct Ans - A football
stadium
A lightning strike causes one of those storage buildings on John's farm to burn
to the ground, added by the fuel tanks he kept in the building. John knows he
wasn't supposed to store any fuel in the building, so he kept that piece of
information to himself when he files a claim. John's ensure made and I his
claim based on his: Correct Ans - Concealment
Chain shed burned to the ground during a tornado, when the Highwinds break
a wall of the shed, knocking over a lantern inside. What is the proximate cause
of the loss? Correct Ans - Wind
Kevin plays in a brass band using two rare antique Alexander tubas. Since they
are no longer produced, the value of the tubas is difficult to determine. Which
type of policy would best indemnify Kevin in this event that his two boys were
damaged, lost, or stolen? Correct Ans - Agreed value policy
,Which settlement option is most often use when the claimant misses work
because of a bodily injury, but a settlement has not been reached? Correct
Ans - Advance payment settlement
Adjuster Andy is trying to determine a final settlement amount for Stacy's
claim. Stacy's house was destroyed in a house fire and it will cost $185,000 to
rebuild it. Stacy's homeowner policy has a limit of $178,000 and $1800
deductible. Typically, how much would adjuster Andy calculate Stacy's final
settlement amount to be Correct Ans - $178,000
Stephanie is in the process of addressing George's auto claim. Currently she is
interviewing Shana, who witnessed George's accident and stopped to help. In
what stage of the claim process is Stephanie currently working? Correct
Ans - Investigation
If a claimant has a history of similar claims, that could mean: Correct Ans
- It is important to investigate for fraud
If an insurer is unwilling to pay what the claimant is asking, the adjuster must:
Correct Ans - Negotiate a settlement
An insurance adjuster acts as a fiduciary agent for her employer. Which of the
following statements is FALSE about the adjuster's role as a fiduciary agent?
Correct Ans - The adjuster may not give the claimant materials showing
how he came up with the settlement amount
A staff adjuster is a: Correct Ans - Salaried employee working for only
one insurer
Marlene has been living in her $120,000 home for 31 years. Because she has
paid off the mortgage, she decides to save some money on her monthly
insurance premiums by reducing her homeowners coverage to $40,000. After
a severe hail storm totals her roof, her adjuster estimates the damage at
$12,000. Assuming the insure imposes the standard coinsurance penalty, and
ignoring the deductible, how much will Marlene receive in the settlement
amount? Correct Ans - $5,000
Craig has an HO-3 policy covering his primary residence with a Coverage A
limit of $250,000, Coverage B limit of $25,000, and a Coverage C limit of
, $150,000. Craig also has a cabin on the lake, which was burglarized. The
thieves stole much of the cabin's contents, for a total loss of $18,500. Ignoring
any deductibles, how much will Craig's HO-3 policy pay for this claim?
Correct Ans - $15,000
Stan built a porch for his home three years ago at a cost of $10,000. The value
of the porch has depreciated by $6,000, and it would cost $12,000 to replace it
today. After Stan's porch burnt down during a BBQ today, how much would a
Standard Fire Policy indemnify Stan for his porch? Correct Ans -
$6,000
Which of the following statements is NOT true of endorsements? Correct
Ans - And endorsed policy will always provide more coverage than an
unendorsed policy
In a dwelling policy, how much will the Fire Department Service charge
coverage pay? Correct Ans - Up to $500 if the fire department charges
for responding to a covered peril
Bill's new home is in the final stages of construction, and he has purchased an
HO-2 policy to ensure his financial interest in the property. This morning,
Bill's contractor calls to tell him that an electrical fire has destroyed his new
kitchen, and all of the crown molding that was supposed to be installed today
has been stolen. It will be $15,000 to rebuild the kitchen and another $4,200
to replace the trim. How will Bill's ensure respond when he files a claim?
Correct Ans - His insurer will pay $15,000 for a build the kitchen and
nothing for the stolen trim
Which of the following statements about the original standard fire policy is
FALSE? Correct Ans - It was the first multi-line policy, combining both
Physical Damage and Liability coverages
During a severe wind storm, a large tree in Jeff's yard was blown down in two
large bushes were ripped from the ground. Jeff has an HO-3. What is the
maximum amount that Jeff can receive for the replacement of the tree and
bushes that were damaged by the wind storm? Correct Ans - $0
Questions With Verified Solutions
Jane has $150,000 homeowners policy with a 3% percentage deductible. One
night, In oven fire destroys her kitchen, causing $50,000 in damage. How
much of the damage falls under Janes responsibility? Correct Ans -
$4,500
Xavier owns a small insurance company. Recently the company want to bid to
ensure a new housing development in Omaha, Nebraska. His company can
handle any claims that arise, but if a series of tornadoes were to tear through
the area and destroy the entire development, Xavier's company would suffer
financially. Which type of insure could help Xavier's company protect itself the
most from this potential loss? Correct Ans - A re-insurer
Which of the following situations does NOT involve an instance of "pure risk?"
Correct Ans - Loss of money invested in the stock market
Which of the following is an insurable risk? Correct Ans - A football
stadium
A lightning strike causes one of those storage buildings on John's farm to burn
to the ground, added by the fuel tanks he kept in the building. John knows he
wasn't supposed to store any fuel in the building, so he kept that piece of
information to himself when he files a claim. John's ensure made and I his
claim based on his: Correct Ans - Concealment
Chain shed burned to the ground during a tornado, when the Highwinds break
a wall of the shed, knocking over a lantern inside. What is the proximate cause
of the loss? Correct Ans - Wind
Kevin plays in a brass band using two rare antique Alexander tubas. Since they
are no longer produced, the value of the tubas is difficult to determine. Which
type of policy would best indemnify Kevin in this event that his two boys were
damaged, lost, or stolen? Correct Ans - Agreed value policy
,Which settlement option is most often use when the claimant misses work
because of a bodily injury, but a settlement has not been reached? Correct
Ans - Advance payment settlement
Adjuster Andy is trying to determine a final settlement amount for Stacy's
claim. Stacy's house was destroyed in a house fire and it will cost $185,000 to
rebuild it. Stacy's homeowner policy has a limit of $178,000 and $1800
deductible. Typically, how much would adjuster Andy calculate Stacy's final
settlement amount to be Correct Ans - $178,000
Stephanie is in the process of addressing George's auto claim. Currently she is
interviewing Shana, who witnessed George's accident and stopped to help. In
what stage of the claim process is Stephanie currently working? Correct
Ans - Investigation
If a claimant has a history of similar claims, that could mean: Correct Ans
- It is important to investigate for fraud
If an insurer is unwilling to pay what the claimant is asking, the adjuster must:
Correct Ans - Negotiate a settlement
An insurance adjuster acts as a fiduciary agent for her employer. Which of the
following statements is FALSE about the adjuster's role as a fiduciary agent?
Correct Ans - The adjuster may not give the claimant materials showing
how he came up with the settlement amount
A staff adjuster is a: Correct Ans - Salaried employee working for only
one insurer
Marlene has been living in her $120,000 home for 31 years. Because she has
paid off the mortgage, she decides to save some money on her monthly
insurance premiums by reducing her homeowners coverage to $40,000. After
a severe hail storm totals her roof, her adjuster estimates the damage at
$12,000. Assuming the insure imposes the standard coinsurance penalty, and
ignoring the deductible, how much will Marlene receive in the settlement
amount? Correct Ans - $5,000
Craig has an HO-3 policy covering his primary residence with a Coverage A
limit of $250,000, Coverage B limit of $25,000, and a Coverage C limit of
, $150,000. Craig also has a cabin on the lake, which was burglarized. The
thieves stole much of the cabin's contents, for a total loss of $18,500. Ignoring
any deductibles, how much will Craig's HO-3 policy pay for this claim?
Correct Ans - $15,000
Stan built a porch for his home three years ago at a cost of $10,000. The value
of the porch has depreciated by $6,000, and it would cost $12,000 to replace it
today. After Stan's porch burnt down during a BBQ today, how much would a
Standard Fire Policy indemnify Stan for his porch? Correct Ans -
$6,000
Which of the following statements is NOT true of endorsements? Correct
Ans - And endorsed policy will always provide more coverage than an
unendorsed policy
In a dwelling policy, how much will the Fire Department Service charge
coverage pay? Correct Ans - Up to $500 if the fire department charges
for responding to a covered peril
Bill's new home is in the final stages of construction, and he has purchased an
HO-2 policy to ensure his financial interest in the property. This morning,
Bill's contractor calls to tell him that an electrical fire has destroyed his new
kitchen, and all of the crown molding that was supposed to be installed today
has been stolen. It will be $15,000 to rebuild the kitchen and another $4,200
to replace the trim. How will Bill's ensure respond when he files a claim?
Correct Ans - His insurer will pay $15,000 for a build the kitchen and
nothing for the stolen trim
Which of the following statements about the original standard fire policy is
FALSE? Correct Ans - It was the first multi-line policy, combining both
Physical Damage and Liability coverages
During a severe wind storm, a large tree in Jeff's yard was blown down in two
large bushes were ripped from the ground. Jeff has an HO-3. What is the
maximum amount that Jeff can receive for the replacement of the tree and
bushes that were damaged by the wind storm? Correct Ans - $0
