FINAL TEST FOR FLORIDA CLAIMS ADJUSTER EXAM

FINAL TEST FOR FLORIDA CLAIMS ADJUSTER EXAM Which of the following is NOT one of the duties of the Department of Financial Services? b. Dept does NOT set rates nor write policies - CORRECT ANSWER-Set rates and write policies for various company products The adjuster has a particular relationship to his principal, the insurer. Which of the following best describes this relationship? - CORRECT ANSWER-It is a fiduciary relationship. The Claims Adjuster's role in the insurance industry includes all the following EXCEPT: - CORRECT ANSWER-Gives appropriate legal advice and writes binding contracts All of the following activities are illegal for an adjuster, EXCEPT: - CORRECT ANSWER-Use only company forms to prepare releases All of the following are part of the conditions imposed upon the insured in the event of a loss, EXCEPT: - CORRECT ANSWER-Insured should negotiate on behalf of the company for 3rd party claimants. A claimant was given a settlement, which stipulated, that if the claimant did not contact the company within a certain period of time, the claim would automatically close. No release was signed. Which of the following best describes this method of settlement? - CORRECT ANSWER-No release or walk-away The Continuing Education requirement to maintain an Adjuster license in Florida is: - CORRECT ANSWER-Twenty four hours every two years. An adjuster received written notice from the Department of Financial Services regarding a claim. What length of time does he have to respond to the inquiry? - CORRECT ANSWER-21 calendar days Comparative negligence is determined through - CORRECT ANSWER-Investigation & AnalysisAgreement between parties or by mediation or arbitrationJudge and/or jury During what period of time must an adjuster reply to communication from a policyholder on a claim? - CORRECT ANSWER-14 days Which of the following is NOT a goal in the adjusting process? - CORRECT ANSWERalways pay the maximum limit of the policy An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: - CORRECT ANSWER-A Full Release settlement Adjuster Jane moved from one city in Florida to another. What length of time does she have to notify the Insurance Department of the address change? - CORRECT ANSWER-30 Days Which of the following is TRUE? - CORRECT ANSWER-If an appointment is terminated, an adjuster has 48 months to secure another appointment Bad Faith & Adjusting Practices - Under the Florida Unfair Trade Practices Act & the Unfair Methods of Competition and Unfair or Deceptive Acts, all of the following are prohibited, EXCEPT: - CORRECT ANSWER-Adjuster keeps accurate records on a claim Florida's Administrative Code contains a Code of Ethics for Adjuster - which of the following is FALSE? - CORRECT ANSWER-An Adjuster owes fair and prompt treatment to their own company's policyholders only Which of the following is a duty owed to an invitee? - CORRECT ANSWER-land owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? - CORRECT ANSWER-liability is a legal doctrine and coverage is a contractual obligation Which of the following is NOT one of the fiduciary responsibilities of an adjuster? - CORRECT ANSWER-Withhold pertinent information from the company to please a client Which of the following is NOT one of the duties of the Florida Department of Financial Services? - CORRECT ANSWER-The Department writes policies for the non-standard insurance companies. Continuing education requirements to maintain a Customer representative license are: - CORRECT ANSWER-24 hours every two years. When an insurance licensee ends his appointment with an authorized company in Florida, he has how long to secure another appointment? - CORRECT ANSWER-48 months When an insurance licensee moves, he has how long to notify the Florida Dept. of Financial Services of his change of address? - CORRECT ANSWER-30 Days Activities that may result in license suspension or revocation include: - CORRECT ANSWER-Using discriminatory practices Making false entries on an insurance application Defaming another agent or company Activities that may result in license suspension or revocation include: - CORRECT ANSWER-Lacking reasonable knowledge & technical competence Misappropriation of funds Failure to notify the Dept. of Insurance in writing within 30 days after pleading guilty to a felony All of the following are true concerning Joint Underwriting Associations EXCEPT : - CORRECT ANSWER-It is not possible to purchase a Homeowners or Dwelling Policy from Citizens John wrote a policy through the Florida Automobile Joint Underwriting Association, and the company issued the policy. What is the company issuing the policy called ? - CORRECT ANSWER-A servicing carrier The business auto policy has flexibility to meet the needs of various commercial enterprises. It is used to cover vehicles NOT covered by the Personal Auto Policy. Which the following vehicle would NOT be insured with a business auto policy: - CORRECT ANSWER-Autos used for business related purposes on a regular basis.Autos weighing 12,000 lbs. gross vehicle weight.Autos titled in the name of a corporation or other business interest. In the business auto policy, symbol 1 is a broad coverage often used for liability to denote: - CORRECT ANSWER-"any auto" In Section II of the Business Auto Policy, liability is available for: - CORRECT ANSWER-Named insured. Permissive operators of autos owned, hired or borrowed. Anyone insured is vicariously liable for. Exclusions under the liability section of the business auto policy include: - CORRECT ANSWER-Employee injuries-covered under worker compensation Liability for pollution, except from the normal operating fluids of the vehicle. Liability arising from mobile equipment. Which of the following is covered under the Garage Policy? - CORRECT ANSWERGarage location If an insured has $100,000 of "unstacked" UM, and 2 cars on the policy, how much is available under a UM claim? - CORRECT ANSWER-$100,000 An insured has $100 deductible Other Than Collision, and $250 deductible Collision. If a rock breaks his windshield and repairs total $675, how much will be paid? - CORRECT ANSWER-$675, under Other Than Collision, with no deductible When searching for insurance solutions to pay for personal injuries from an auto accident, the order of payment in Florida in most cases, would be: - CORRECT ANSWER-PIP, Med Pay, Liability, Uninsured Motorist An insured and his spouse have two cars insured under a Personal Auto Policy. What coverage is available for a car that the wife borrows from a friend to use for the weekend? - CORRECT ANSWER-The borrowed car would have the broadest coverage available on the policy. Jack is involved in an accident - he is driving his car when hit by an at-fault driver, Sam. (Florida residents). Jack has two more cars at home. Both Jack and Sam have Basic PIP with no deductible, Med Pay coverage of $5,000, Liability of 50/100/50, and Stacked Uninsured Motorist of $50,000 on each car that they own. Jack has a medical claim of $215,000. How much will Jack's Uninsured Motorist pay for this claim? - CORRECT ANSWER-$150,000 An insured buys an ISO Mechanical Breakdown Coverage Policy on his used car. For what length of time and mileage will he have coverage? - CORRECT ANSWER-12 Months / 12,000 Miles If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP with no deductible, & Med Pay of $2,000 ... what is the maximum potential payment from Jack's Personal Auto Policy to a guest passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in medical expenses? - CORRECT ANSWER-$22,000 (PIP $10,000; Med Pay $2,000; BI $10,000) UM (Uninsured Motorist) coverage under the PAP (Personal Auto Policy) pays for: - CORRECT ANSWER-bodily injury to the insured caused by hit and run driver Lender's interests in REAL property are protected with a Mortgage clause, how are lender's interests protected in personal property - such as automobiles? - CORRECT ANSWER-Loss payable clause While driving on the Pennsylvania Turnpike, William's auto has a collision with a deer that jumps in front of his car. In order for coverage to be afforded, William's Personal Auto Policy must have: - CORRECT ANSWER-Other than Collision coverage An insured took his TV to a shop for repairs, on the way, he stopped suddenly and the TV fell off the seat, breaking the TV. How will his PAP (Personal Auto Policy) respond? - CORRECT ANSWER-The PAP will not respond. An insured has "Stacked" Uninsured Motorist with 25/50 limits on each of 2 vehicles that he owns. How much Uninsured Motorist coverage is available to the insured in the event of an accident with a hit & run driver? - CORRECT ANSWER-50/100