FLORIDA CERTIFIED ADJUSTER PRACTICE EXAM NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS(DETAILED ANSWERS) ALREADY GRADED
A+ 100% GUARANTEED TO PASS CONCEPTS!!!
Which of the following is an insurable risk? - CORRECT ANSWER-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 ANSWER-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 ANSWER-Wind
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 ANSWER-$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 ANSWER-A re-insurer
Which of the following situations does NOT involve an instance of "pure risk?" -
CORRECT ANSWER-Loss of money invested in the stock market
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 ANSWER-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
ANSWER-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 ANSWER-$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
ANSWER-Investigation
If a claimant has a history of similar claims, that could mean: - CORRECT
ANSWER-It is important to investigate for fraud
If an insurer is unwilling to pay what the claimant is asking, the adjuster must: -
CORRECT ANSWER-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 ANSWER-The adjuster may not give the claimant materials showing
how he came up with the settlement amount
A staff adjuster is a: - CORRECT ANSWER-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 ANSWER-$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 ANSWER-$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 ANSWER-$6,000
Which of the following statements is NOT true of endorsements? - CORRECT
ANSWER-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 ANSWER-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 ANSWER-
His insurer will pay $15,000 for a build the kitchen and nothing for the stolen trim
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS(DETAILED ANSWERS) ALREADY GRADED
A+ 100% GUARANTEED TO PASS CONCEPTS!!!
Which of the following is an insurable risk? - CORRECT ANSWER-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 ANSWER-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 ANSWER-Wind
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 ANSWER-$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 ANSWER-A re-insurer
Which of the following situations does NOT involve an instance of "pure risk?" -
CORRECT ANSWER-Loss of money invested in the stock market
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 ANSWER-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
ANSWER-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 ANSWER-$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
ANSWER-Investigation
If a claimant has a history of similar claims, that could mean: - CORRECT
ANSWER-It is important to investigate for fraud
If an insurer is unwilling to pay what the claimant is asking, the adjuster must: -
CORRECT ANSWER-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 ANSWER-The adjuster may not give the claimant materials showing
how he came up with the settlement amount
A staff adjuster is a: - CORRECT ANSWER-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 ANSWER-$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 ANSWER-$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 ANSWER-$6,000
Which of the following statements is NOT true of endorsements? - CORRECT
ANSWER-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 ANSWER-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 ANSWER-
His insurer will pay $15,000 for a build the kitchen and nothing for the stolen trim
