PRACTICE EXAM
A claim in the property/casualty industry Is defined as: -
CORRECT ANSWER-an assertion of an alleged legal right
against a person, entity, company or insurer that carries with it
a demand for money as compensation for injuries or damages
when you purchase insurance, you are buying: - CORRECT
ANSWER-peace of mind that if an insured event does occur,
that the insurance company will keep its promise and provide
the financial protection that you purchased
in today's society, the most important factor in the purchase of
insurance is: - CORRECT ANSWER-trust
One of the most important claim handling goals of an insurance
company is: - CORRECT ANSWER-to help those who have
been injured or who have suffered loss for which the insured is
responsible, while at the same time minimizing loss for the
insured party and carrier
what is the primary difference between a company employee
adjuster and an independent adjuster - CORRECT ANSWER-a
company employee adjuster works for an insurance company
and an independent adjuster works independently for
themselves or for adjusting firms who represent many clients
an adjuster's responsibility as a fiduciary means: - CORRECT
ANSWER-the adjuster represents, and controls, the property
and financial interests of the client to whom he/she owes a high
degree of loyalty and good faith
, the basic and primary functions of an adjuster are: - CORRECT
ANSWER-investigating, evaluating, reporting, negotiating and
disposing of claims
once an adjuster is licensed, he or she must maintain a
continuing education requirement. What is that adjuster's
compliance requirement in order to retain a license? -
CORRECT ANSWER-an adjuster must complete 24 hours of
continuing education in every 2 year compliance period, of
which 5 hours must be taken in a properly certified 5 hour law
and ethics update course
the adjuster's code of ethics starts with a basic premise which
states: - CORRECT ANSWER-the work of adjusting engages
the public trust
Which of the following would NOT be a preferred claims
practice or behavior under FL Unfair Insurance Trade Practices
Act? - CORRECT ANSWER-Not responding to an insured calls
because you haven't made up your mind
what are the four critical elements of a contract? - CORRECT
ANSWER-1. agreement to terms (must understand what is
given and received)
2. adequate consideration for the promises made
3. legal capacity of the parties to contract
4. contract must have legal purpose
an insurance policy is often referred to as a contract of
adhesion which means: - CORRECT ANSWER-if any of the
wording or language in the policy is vague or ambiguous,
making it difficult to understand or interpret, the law is well
settled that the interpretation shall be in favor of the party who
did not control its terms (the policyholder)