FLORIDA 6 - 20 ALL LINES ADJUSTER TEST QUESTIONS WITH CORRECT ANSWERS GRADED TO PASS

A public adjuster represents the interests of: A. The insurer B. The Insured C. The employer D. The interest of the general public - B. The insured Which of the following is the type of report that indicates the initial results of a claim investigation? A. Field Report B. Interim Report C. Full Report D. None of the above - A. Field Report States have adopted statutes regarding claims adjusting. To avoid unfair treatment to a claimant the adjuster must not: A. Promptly investigate the claim. B. Follow the laws regarding the number of days in which to commence an investigation. C. Deny the claim until a fair and prompt investigation has commenced. D. Pay the claim within a reasonable number of days after the final proof of loss has been received. - C. Deny the claim until a fair and prompt investigation has commenced. Which of the following is not a claim settlement option? A. Forcing the insured to sue by offering less than the claim is worth. B. Repairing property. C. Replacing with like kind and quality. D. Replace with new - A. Forcing the insured to sue by offering less than the claim is worth. The giving up of a known right is called: A. Estoppel B. Violation of policy conditions C. Rebating D. Waiver - D. Waiver An innocent party relies on certain statements made by the adjuster and is damaged as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of: A. Waiver B. Estoppel C. Duties of the adjuster D. Law of contract - B. Estoppel Should an insured fail to report a claim in a timely fashion the adjuster will usually: A. Deny the claim. B. Send the insured a reservation of rights letter. C. Cease investigating. D. Seek the advice of the company's attorney. - B. Send the insured a reservation of rights letter. A company adjuster primarily represents the interests of: A. The insured. B. The claimant. C. The insurer. D. The public. - C. The insurer. An adjuster's license will usually be revoked for which of the following reasons: A. Denying claims that are not covered. B. Failing to report a change of address. C. Having been convicted of a misdemeanor. D. Having been convicted of a felony. - D. Having been convicted of a felony. The insured has been involved in an automobile accident and has sustained bodily injuries and damage to the insured vehicle. The adjuster will usually: A. Withhold any payment until all the bills have been reviewed for payment. B. Pay to repair the vehicle and pay the medical bills later. C. Pay for the repair of the vehicle and require a release for all claims. D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release. - D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release. Mr. Jones has damaged his vehicle by striking a tree. He can: A. Take the car to a repair garage recommended by the insurer. B. Take the car to a garage of his/her choice. C. Accept the payment based on the adjuster's estimate. D. All of the above. - D. All of the above. In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the following? A. The cost to replace the vehicle with like kind and quality if a current year model. B. Use the most recent publication of an "Official Used Car Guide". C. If not listed in the "guide", obtain quotations from automobile dealers. D. All of the above depending on the circumstances. - D. All of the above depending on the circumstances. Which of the following is NOT a claim settlement option for liability claims? A. Lost wages B. Excessive amounts claimed C. Loss of use D. Disfigurement - B. Excessive amounts claimed Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue? A. Scheduled Payment Release B. Full Release Settlement C. Advanced Payment D. Structured Settlement - B. Full Release Settlement Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated? A. No Release or Walk-Away B. Rehabilitation C. Advanced Payment D. Open-Ended Release - C. Advanced Payment Which of the following statements is correct? I. The Business Auto Policy uses 10 symbols to define covered vehicles II. Symbols 30 and 31 apply to the Garage Policy. A. I only. B. II only. C. Neither I nor II. D. Both I and II. - D. Both I and II. Which of the following is not a Business Auto endorsement? A. Drive Other Car. B. Change Other Driver. C. Individual Named Insured. D. Mobile Equipment. - B. Change Other Driver. Under the Business Auto Policy, each of the following is true about classification of "covered autos," except: A. "Any auto" is the broadest coverage classification. B. An insured may select different classifications for different coverages. C. All classes of newly acquired autos are automatically covered. D. "Hired autos" includes autos the insured leases, hires, rents or borrows. - C. All classes of newly acquired autos are automatically covered. According to the Business Auto definitions, an "accident": A. Includes continuous or repeated exposure to the same conditions. B. Must be sudden and unexpected. C. Must be unexpected and unpreventable. D. Is any event that causes injury or damage. - A. Includes continuous or repeated exposure to the same conditions. Joseph Young, who is insured under a Business Auto policy, is involved in an accident. He and the insurance company disagree on the amount to be paid for the damage to his car. Under the terms of the policy, which of the following statements is true: A. Each party engages an appraiser, and the appraisers will select an umpire. B. Mr. Young must accept the insurance company's estimate. C. Each party engages an appraiser, and the appraisers will decide the amount. D. The estimates of both parties will be averaged. - A. Each party engages an appraiser, and the appraisers will select an umpire Under Form MCS-90, a _____ notice to the other party is required for cancellation of coverage on the part of either the insurer or insured. A. 10 day B. 72 hour C. 14 day D. 35 day - D. 35 day Which of the following is considered a "garage operation"? I. Ownership, maintenance or use of garage premises. II. Sale of products or services in connection with garage operations. III. Ownership or maintenance of covered autos. IV. Production or support of racing or competitive operations. A. I and II only. B. I, II, and III only. C. I and III only. D. I, II, III, and IV. - B. I, II, and III only. Which of the following would be covered under a Garage Liability Policy? A. Damage to property the insured is transporting to another location. B. The use of covered autos leased to another party except as a replacement for a car under repair. C. Products and completed operations. D. Covered autos used in organized racing. - C. Products and completed operations. Which of the following pollution losses would be covered under the Garage Liability Policy? I. Escape of toxic sludge from a dumpsite the named insured utilizes to store garage waste. II. Pollution of a creek caused by a gasoline leak from the ruptured fuel tank of a covered truck following a collision with another vehicle. A. I only. B. Both I and II. C. Neither I nor II. D. II only. - D. II only. Garagekeepers coverage excludes all of the following losses, except: A. Loss to a high-value stereo system permanently installed in a customer's auto. B. Loss to CDs from a covered auto. C. Faulty work performed by a mechanic. D. Theft of equipment from a covered auto by a garage employee. - A. Loss to a high-value stereo system permanently installed in a customer's auto. Extra Expense insurance covers the cost of: A. Relocation. B. Temporary location. C. Research costs to replace lost information. D. All of the above. - D. All of the above. The Special Cause of Loss form excludes all of the following, except: A. Loss of market. B. Loss due to artificially generated electric current. C. Agricultural smudging. D. None of these are exclusions. - D. None of these are exclusions. Earth movement is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Basic and Broad - A. None 4. Volcanic action is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Both Basic and Broad - D. Both Basic and Broad Sprinkler leakage is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above - D. All of the above All of the following provide an additional amount of insurance under the Commercial Building and Personal Property form, except: A. Lottery Tickets B. Newly acquired property C. Property off-premises D. Outdoor Property - A. Lottery Tickets Which of the following forms cover flood and earthquake damage? A. Building and Personal Property form B. Special form C. Broad form D. None of the above - D. None of the above The Earthquake and Volcanic Eruption endorsement provides coverage: A. Against earthquake from volcanic eruption B. For commercial buildings and other covered property when used in conjunction with another Cause of Loss forms C. For damage caused by shocks that occur within 168-hours after policy expiration if these shocks began during the policy period D. All of the above - D. All of the above The Commercial Building and Personal Property Coverage form excludes all of the following types of property, except: A. Securities B. Property of others in the insured's care, custody and control C. Land D. Patios or other paved surfaces - B. Property of others in the insured's care, custody and control Under the Commercial Building and Personal Property form, coverage for the "building" includes: A. Additions and extensions to the building B. Property used to service the building C. A heating system D. All of the above - D. All of the above Under the Commercial Building and Personal Property form, coverage for "business personal property" includes: A. Furniture B. Machinery C. Stock D. All of the above - D. All of the above Sinkhole collapse is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above - D. All of the above A building valued at $100,000 was insured for $80,000 with a policy containing 80% Coinsurance clause. Disregarding any deductibles, what would the company pay on a $20,000 loss? A. $7,500 B. $5,000 C. $15,000 D. $20,000 - D. $20,000 All of the following are excluded under the Commercial Building and Personal Property form, except: A. Furniture and fixtures. B. Petty cash and IOUs. C. A watch dog. D. The insured's panel truck. - A. Furniture and fixtures. Which of the following is not covered property under a Commercial Property form? A. Accounts, bills and currency. B. Animals not held for sale. C. Cost of foundations. D. All of the above. - D. All of the above. The insured has transported a portion of his property to an exhibition trade show. It is destroyed by a fire. What coverage would apply? A. Property off the premises is not covered B. Fire is not covered for this exposure C. A limit of $10,000 would apply to cover the loss D. Special coverage would have to be purchased to cover property off the premises - C. A limit of $10,000 would apply to cover the loss The deductible under the revised Commercial Property forms is: A. $500 B. $1,000 C. $250 D. $750 - A. $500 The insured has suffered a loss as the result of a cracked steam boiler. What coverage would apply under the Commercial Property Cause of Loss forms? A. The loss would be covered B. The loss is not covered C. Only part of the loss is covered D. Covers only the extra expense in replacing the boiler - B. The loss is not covered Before legal action may be taken against an insurer, an insured must have complied with all terms of the policy. Any legal action must begin within ____ following a loss. A. 6 months B. 5 years C. 2 years D. 12 months - C. 2 years If the civil authority blocks access to the insured's premises because of a covered peril that has damaged a building down the street, what period of time will the Business Income forms pay the insured for loss of income at his/her premises? A. One week B. Two consecutive weeks C. Four consecutive weeks D. Three consecutive weeks - C. Four consecutive weeks Under the Condominium Association form, coverage is based on: A. The Commercial Property form B. The association agreement and bylaws C. The Special Cause of Loss form D. State and local ordinances - B. The association agreement and bylaws What is generally excluded on the Condominium Commercial Unit-Owners form? A. The improvements and betterments of the unit-owner B. Hostile fire damage C. Building coverage D. Inside appliances and fixtures - C. Building coverage If both the Condominium Association form and the Condominium Unit-Owner form cover the same property, how will the loss be handled? A. Each policy will pay pro-rata B. The Association policy will be excess over the Unit-Owners C. Each policy will share equally in the loss D. The Unit-Owners policy will be excess over the Association policy - D. The Unit-Owners policy will be excess over the Association policy Which of the following losses to perishable stock would be covered by the Spoilage Endorsement? A. Power outage B. Mechanical breakdown or contamination C. Changes in temperature, humidity, or contamination resulting from a power outage on or off the premises D. All of the above - D. All of the above With Commercial Property insurance, how would the insured receive replacement cost loss settlement on damage (as a result of a covered peril) to the Personal Property of Others left in the insured's care custody and control? A. Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy, B. Request the Replacement Cost endorsement on Business Personal Property C. Insure the Property of Others for at least 100% of the cost to replace it. D. Send in periodic reports to the insurer on the value of the property of others left in the insured's care custody and control - A. Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy, Which of the following statements regarding aircraft insurance is incorrect? A. The physical damage coverage is written with a flat deductible. B. Coverage for passengers can be excluded. C. Special coverage must be arranged for Air Meet liability coverage. D. Wear and tear is excluded. - A. The physical damage coverage is written with a flat deductible. Most aircraft hull policies are written on a: A. Replacement cost basis B. Market value C. Valued basis D. Actual cash value basis - C. Valued basis A deductible that is commonly used in aircraft physical damage insurance is usually: A. A percentage of the value B. A flat deductible C. A disappearing deductible D. A franchise deductible - A. A percentage of the value The hull physical damage deductible applies to which of the following losses? A. Pilferage B. Fire C. Collision D. Fire and explosion (except when caused by collision) - C. Collision The covered territory for aircraft coverage does not apply to which of the following? A. United States B. Canada C. Mexico D. Puerto Rico - D. Puerto Rico Which of the following describes admitted aircraft liability? A. Negligence is not a factor B. Must prove legal liability C. Based on a board review D. Based on a limited threshold of damage - A. Negligence is not a factor What coverage under aircraft coverage can cover the injuries to crew members as an optional coverage? A. Liability coverage B. Admitted liability C. Medical payments D. Workers compensation - C. Medical payments What type of physical damage coverage is needed by a company that repairs aircraft for damage to customer's property? A. Garage liability coverage B. Hangarkeeper's liability C. General liability D. Garagekeeper's legal liability - B. Hangarkeeper's liability Aircraft liability coverage is very similar to auto insurance coverage with the following exception: A. Usually written with a deductible B. Does not apply to property damage of others C. Liability to passengers is treated as a separate exposure D. Cannot exclude passenger liability - C. Liability to passengers is treated as a separate exposure Which of the following is not covered under aircraft hull insurance? A. Personal effects B. Fuselage C. Wheels D. Propeller - A. Personal effects Common carriers are responsible for damage to customer goods they transport except for damage resulting from: A. Acts of God B. Traffic Accidents C. Load shifting D. Poor vehicle maintenance - A. Acts of God Which of the following commercial inland marine coverage forms covers sums due the insured from customers which are uncollectible due to loss or damage of records? A. Equipment dealers B. Electronic data processing C. Valuable papers and records D. Accounts receivable - D. Accounts receivable The Commercial Inland Marine coverage form "jeweler's block" excludes loss resulting from: A. Earthquake B. Shortage found upon taking inventory C. Unexplained disappearance D. All of the above - D. All of the above The Commercial Inland Marine coverage form "valuable papers and records" includes coverage for: I. Money and securities II. Deeds, drawings and maps III. Books, files and mortgages A. I and II B. I and III C. II and III D. II only - C. II and III The ______is an ideal form of protection for the frequent shipper of goods. A. Trip transit policy B. Annual transit policy C. Monthly transit policy D. Common Carrier motor truck cargo policy - B. Annual transit policy Mr. Jones owns a jewelry store. His wife takes a very valuable necklace and wears it to a party. It is stolen. How will the jeweler's block policy respond to cover this loss? A. The policy will cover the loss. B. The loss will be denied C. The policy will pay the loss on an actual cash value basis D. The policy will pay replacement cost less depreciation - B. The loss will be denied XYZ Road Construction Company has a fleet of equipment that consists of bulldozers, backhoes, and road scrapers. The owner desires physical damage coverage to cover the equipment. Which of the following types of insurance contracts would be appropriate to provide the proper coverage? A. Commercial property coverage B. General liability coverage C. Auto physical damage coverage D. Contractors equipment floater - D. Contractors equipment floater Savage Construction Company has delivered and installed a large boiler in a commercial building. The owner has not yet accepted nor paid for the work. What type of policy should Savage Construction purchase to cover the work until accepted? A. Builders risk B. Installation floater C. Dealer floater D. Transportation floater - B. Installation floater Community Cleaners is a new dry cleaning and laundry service business. They have vehicles that pick up customer's property to be processed and then delivered back to the customer. What type of policy would you recommend they purchase to cover the customer's property? A. A business owners policy B. A commercial property policy C. A bailee policy D. A trip transit policy - C. A bailee policy