Florida certified adjuster practice exam
Jane has $150,000 homeowners policy with a 3% percentage deductible.
One night,
oven In
fire destroys her kitchen, causing $50,000 in damage. How much of
the damage
falls under Janes responsibility? correct answers
$4,500
Xavier owns a small insurance company. Recently the company want to bid
to ensure
new housing a 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
destroydevelopment,
entire the Xavier's company would suffer financially. Which
type of
could insure
help Xavier's company protect itself the most from this potential
loss? correct
answers A re-
insurer
Which of the following situations does NOT involve an instance of "pure
risk?" correct
answers Loss of money invested in the stock
market
Which of the following is an insurable risk? correct answers 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
files whenJohn's
a claim. he ensure made and I his claim based on his: correct
answers
Concealme
nt
Chain shed burned to the ground during a tornado, when the Highwinds
break
the a wall
shed, of
knocking over a lantern inside. What is the proximate cause of
the loss?
correct answers
Wind
Kevin plays in a brass band using two rare antique Alexander tubas. Since
they are
longer no
produced, the value of the tubas is difficult to determine. Which
type ofbest
would policyindemnify Kevin in this event that his two boys were
damaged,
stolen? lost, or
correct answers Agreed value
policy
Which settlement option is most often use when the claimant misses work
because
bodily of a but a settlement has not been reached? correct answers
injury,
Advance
payment
settlement
Adjuster Andy is trying to determine a final settlement amount for Stacy's
claim. was
house Stacy'sdestroyed in a house fire and it will cost $185,000 to rebuild
it. Stacy's policy has a limit of $178,000 and $1800 deductible. Typically,
homeowner
how much
would adjuster Andy calculate Stacy's final settlement amount to be
correct answers
$178,00
0
,Stephanie is in the process of addressing George's auto claim.
Currently sheShana,
interviewing is who witnessed George's accident and stopped to
help. In
stage ofwhat
the claim process is Stephanie currently working? correct
answers
Investigati
on
If a claimant has a history of similar claims, that could mean: correct
answers It to
important is investigate for
fraud
If an insurer is unwilling to pay what the claimant is asking, the adjuster
must: correct
answers Negotiate a
settlement
An insurance adjuster acts as a fiduciary agent for her employer. Which of
the followingis FALSE about the adjuster's role as a fiduciary agent? correct
statements
answers
The adjuster may not give the claimant materials showing how he came
up with the
settlement
amount
A staff adjuster is a: correct answers Salaried employee working for only
one insurer
Marlene has been living in her $120,000 home for 31 years. Because she
has mortgage,
the paid off she decides to save some money on her monthly insurance
premiumsher
reducing by homeowners coverage to $40,000. After a severe hail storm
totalsher
roof, heradjuster 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 answers
$5,000
Craig has an HO-3 policy covering his primary residence with a Coverage
A limit of Coverage B limit of $25,000, and a Coverage C limit of $150,000.
$250,000,
Craig
has a also
cabin on the lake, which was burglarized. The thieves stole much of
the cabin'sfor a total loss of $18,500. Ignoring any deductibles, how much
contents,
will Craig's
HO-3 policy pay for this claim? correct answers
$15,000
Stan built a porch for his home three years ago at a cost of $10,000. The
value of
porch hasthe
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 Stan for his porch? correct answers
indemnify
$6,000
Which of the following statements is NOT true of endorsements? correct
answers 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
correct pay? Up to $500 if the fire department charges for responding to
answers
a covered
peri
l
Bill's new home is in the final stages of construction, and he has
policy
purchasedto ensure
an HO-2his financial interest in the property. This morning, Bill's
contractor
to callsan electrical fire has destroyed his new kitchen, and all
tell him that
of the crown
, molding that was supposed to be installed today has been stolen. It will be
$15,000the
rebuild to kitchen and another $4,200 to replace the trim. How will
Bill's ensure
respond when he files a claim? correct answers His insurer will pay $15,000
for akitchen
the build and nothing for the
stolen trim
Which of the following statements about the original standard fire policy
is FALSE?
correct answers 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
that Jeff canamount
receive for the replacement of the tree and bushes that were
damaged
the by
wind storm? correct
answers $0
For loss settlement purposes, most homeowners policies: correct
answers Pay
damages for
to personal property at actual cash value, and damages to
structures
replacement at
cost
Tim's $2500 boat trailer was stolen from his driveway. Ignoring any
deductibles,
much how for his stolen trailer when he files a claim against his
contingency
homeowners
policy? correct answers
$1,500
Helen's business is growing rapidly, so she decided to add an annex onto her
office
hire and
another worker. While under construction, a storm blows down most of
the annex forcing Helen to restart from scratch. Her commercial
structure,
policy provides
insurance coverage equal to 75% of the property value, despite the fact
that her policy
requires 80% coverage to be fully insured. Which coverage extension could
help Helen
rebuild at replacement cost? correct answers None - Extensions are only
available
the at
policyholder maintains the minimum level of insurance of
80% to value
A fire burns down Jenny's hardware, leaving virtually nothing salvageable.
Which of the
following items would not be covered under coverage A of the building
and personal
property coverage form in her commercial property policy? correct
answers Anlaptop what she uses for
employees
work
What BOP endorsement would cover accompanies lost business income
and extradue to loss of electrical service? correct answers Utility
expense
time element
When the high-pressure feeder malfunction at the ACME paper mill, The
resulting
explosion severely damaged the mill and shut down operations for almost
2 months.
Once the repairs are finished, the city inspector comes out to inspect the
workthe
that andrequired
finds scrubber needs to be replaced in order to meet current
Industry safety
standards. Which coverage could help ACME with this added expense?
correct
answers Law and ordinance
coverage
Jane has $150,000 homeowners policy with a 3% percentage deductible.
One night,
oven In
fire destroys her kitchen, causing $50,000 in damage. How much of
the damage
falls under Janes responsibility? correct answers
$4,500
Xavier owns a small insurance company. Recently the company want to bid
to ensure
new housing a 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
destroydevelopment,
entire the Xavier's company would suffer financially. Which
type of
could insure
help Xavier's company protect itself the most from this potential
loss? correct
answers A re-
insurer
Which of the following situations does NOT involve an instance of "pure
risk?" correct
answers Loss of money invested in the stock
market
Which of the following is an insurable risk? correct answers 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
files whenJohn's
a claim. he ensure made and I his claim based on his: correct
answers
Concealme
nt
Chain shed burned to the ground during a tornado, when the Highwinds
break
the a wall
shed, of
knocking over a lantern inside. What is the proximate cause of
the loss?
correct answers
Wind
Kevin plays in a brass band using two rare antique Alexander tubas. Since
they are
longer no
produced, the value of the tubas is difficult to determine. Which
type ofbest
would policyindemnify Kevin in this event that his two boys were
damaged,
stolen? lost, or
correct answers Agreed value
policy
Which settlement option is most often use when the claimant misses work
because
bodily of a but a settlement has not been reached? correct answers
injury,
Advance
payment
settlement
Adjuster Andy is trying to determine a final settlement amount for Stacy's
claim. was
house Stacy'sdestroyed in a house fire and it will cost $185,000 to rebuild
it. Stacy's policy has a limit of $178,000 and $1800 deductible. Typically,
homeowner
how much
would adjuster Andy calculate Stacy's final settlement amount to be
correct answers
$178,00
0
,Stephanie is in the process of addressing George's auto claim.
Currently sheShana,
interviewing is who witnessed George's accident and stopped to
help. In
stage ofwhat
the claim process is Stephanie currently working? correct
answers
Investigati
on
If a claimant has a history of similar claims, that could mean: correct
answers It to
important is investigate for
fraud
If an insurer is unwilling to pay what the claimant is asking, the adjuster
must: correct
answers Negotiate a
settlement
An insurance adjuster acts as a fiduciary agent for her employer. Which of
the followingis FALSE about the adjuster's role as a fiduciary agent? correct
statements
answers
The adjuster may not give the claimant materials showing how he came
up with the
settlement
amount
A staff adjuster is a: correct answers Salaried employee working for only
one insurer
Marlene has been living in her $120,000 home for 31 years. Because she
has mortgage,
the paid off she decides to save some money on her monthly insurance
premiumsher
reducing by homeowners coverage to $40,000. After a severe hail storm
totalsher
roof, heradjuster 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 answers
$5,000
Craig has an HO-3 policy covering his primary residence with a Coverage
A limit of Coverage B limit of $25,000, and a Coverage C limit of $150,000.
$250,000,
Craig
has a also
cabin on the lake, which was burglarized. The thieves stole much of
the cabin'sfor a total loss of $18,500. Ignoring any deductibles, how much
contents,
will Craig's
HO-3 policy pay for this claim? correct answers
$15,000
Stan built a porch for his home three years ago at a cost of $10,000. The
value of
porch hasthe
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 Stan for his porch? correct answers
indemnify
$6,000
Which of the following statements is NOT true of endorsements? correct
answers 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
correct pay? Up to $500 if the fire department charges for responding to
answers
a covered
peri
l
Bill's new home is in the final stages of construction, and he has
policy
purchasedto ensure
an HO-2his financial interest in the property. This morning, Bill's
contractor
to callsan electrical fire has destroyed his new kitchen, and all
tell him that
of the crown
, molding that was supposed to be installed today has been stolen. It will be
$15,000the
rebuild to kitchen and another $4,200 to replace the trim. How will
Bill's ensure
respond when he files a claim? correct answers His insurer will pay $15,000
for akitchen
the build and nothing for the
stolen trim
Which of the following statements about the original standard fire policy
is FALSE?
correct answers 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
that Jeff canamount
receive for the replacement of the tree and bushes that were
damaged
the by
wind storm? correct
answers $0
For loss settlement purposes, most homeowners policies: correct
answers Pay
damages for
to personal property at actual cash value, and damages to
structures
replacement at
cost
Tim's $2500 boat trailer was stolen from his driveway. Ignoring any
deductibles,
much how for his stolen trailer when he files a claim against his
contingency
homeowners
policy? correct answers
$1,500
Helen's business is growing rapidly, so she decided to add an annex onto her
office
hire and
another worker. While under construction, a storm blows down most of
the annex forcing Helen to restart from scratch. Her commercial
structure,
policy provides
insurance coverage equal to 75% of the property value, despite the fact
that her policy
requires 80% coverage to be fully insured. Which coverage extension could
help Helen
rebuild at replacement cost? correct answers None - Extensions are only
available
the at
policyholder maintains the minimum level of insurance of
80% to value
A fire burns down Jenny's hardware, leaving virtually nothing salvageable.
Which of the
following items would not be covered under coverage A of the building
and personal
property coverage form in her commercial property policy? correct
answers Anlaptop what she uses for
employees
work
What BOP endorsement would cover accompanies lost business income
and extradue to loss of electrical service? correct answers Utility
expense
time element
When the high-pressure feeder malfunction at the ACME paper mill, The
resulting
explosion severely damaged the mill and shut down operations for almost
2 months.
Once the repairs are finished, the city inspector comes out to inspect the
workthe
that andrequired
finds scrubber needs to be replaced in order to meet current
Industry safety
standards. Which coverage could help ACME with this added expense?
correct
answers Law and ordinance
coverage
