Florida Certified Adjuster Pre-Licensing questions with
verified answers
A Discovery Form Commercial Crime policy can apply to losses discovered during
the policy period, as well as up to how many days after its expiration date?
Ans✓✓✓ A Discovery Form Commercial Crime policy can apply to losses
discovered during the policy period, as well as up to 60 days after its expiration
date.
A dwelling policy would NOT be appropriate for:
A. a duplex owned by an individual.
B. a single-family home wholly rented out.
C. a four-plex owned by a corporation.
D. a motorhome owned by an individual. Ans✓✓✓ D. a motorhome owned by an
individual.
A few weeks ago Christopher's garage was destroyed by an out-of-control
motorist. Fortunately, the motorist had sufficient liability insurance to cover the
damages. However, the insurer insists that Christopher's garage is worth far less
than the appraisals he has received from contractors. Christopher and the insurer
have gone back and forth in negotiations for weeks, making little headway.
Christopher decides it's time to: Ans✓✓✓ issue a complaint against the
policyholder
A fire in Sarah's factory causes her to shut the factory doors for 50 days. To limit
her loss of income and keep production going, Sarah spends $125,000 renting
equipment and another building. Sarah's commercial property policy doesn't have
Business Income Coverage, but it does include Extra Expense Coverage. The limit
on her Extra Expense coverage is $100,000 and she has Limits of Loss Payment of
,40%/80%/100% during her period of restoration. How much indemnification will
Sarah receive for her extra expenses? Ans✓✓✓ Since it took more than 30 days
but fewer than 60 days for repairs to be completed, her Extra Expenses coverage
will pay up to 80% of the limit ($100,000) which comes to $80,000.
A Florida company that is assigned to "Tier 2" for coverage under FWCJUA must
pay: Ans✓✓✓ rates that are 50% higher than voluntary market rates.
A large corporation owns a small hunting cabin in the woods, that it uses for
occasional weekend getaways. The corporation can insure the cabin against
property damage with a: Ans✓✓✓ dwelling policy
A processing and servicing company would qualify for a BOP only if they have less
than _____ in annual revenues. Ans✓✓✓ $3 million
A reciprocal insurer is: Ans✓✓✓ an unincorporated organization of subscribers
that operates through an attorney-in-fact to provide insurance benefits for its
members.
A Reservation of Rights letter is sent by:
A. the claimant.
B. the insurance company.
C. the claimant's lawyer.
D. the insurance broker. Ans✓✓✓ B. the insurance company.
,A short circuit in one of the refrigeration units in the Ice Queen ice cream shop
sparked a fire that severely damaged the shop, and it had to shut down for two
months while repairs were made. What type of additional coverage would
indemnify the Ice Queen for the lost income during these two months? Ans✓✓✓
Business Interruption Coverage
According to the "Definitions" section of a Personal Auto Policy, which of the
following is NOT "occupying" her vehicle?
A. Rachel leaves her cat in her car, with the windows cracked, while she goes into
the drugstore to fill a prescription.
B. Trishey is leaning on her car during a lunch break while she eats her lunch.
C. Jaminda is sitting on top of her car as she talks to her best friend on the phone.
D. Jordan is sitting in her parked car listening to music while she waits for her
sister to finish yoga class. Ans✓✓✓ A. Rachel leaves her cat in her car, with the
windows cracked, while she goes into the drugstore to fill a prescription.
Adam is shopping for a car in a local automobile dealership. While visiting the
showroom, he trips over a rug that has folded over and breaks his arm in the fall.
Which of the following is true?
A. Adam may file a first party claim with the dealership's insurance company.
B. Adam may file a third party claim with the dealership's insurance company.
C. The automobile dealership may file a first party claim with its own insurance
company.
D. The automobile dealership may file a third party claim with its own insurance
company. Ans✓✓✓ B. Adam may file a third party claim with the dealership's
insurance company.
, Adjuster Andy is trying to determine a final settlement amount for Stacy's claim.
Stacy's house was destroyed in a fire and it will cost $185,000 to rebuild it. Stacy's
homeowners policy has a limit of $178,000 and a $1,800 deductible. Typically,
how much would Adjuster Andy calculate Stacy's final settlement amount to be?
Ans✓✓✓ $178,000 (because the cost of repairs is more than the policy limit, the
final settlement amount is the full policy limit ($178,000) and the deductible is
absorbed into the amount of the loss that exceeds the limit.
After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:
A. confiscation of property by the government.
B. increased repair costs due to laws or codes.
C. any change that decreases the value of the property.
D. remediation of pollutants. Ans✓✓✓ B. increased repair costs due to laws or
codes.
After an earthquake, Jake's home is still standing, but it is a little shaken. The
damage is not extensive, but Jake wants to cash in on the situation, so he takes a
sledgehammer to some of his extra belongings and adds them to his claim. Jake
has committed: Ans✓✓✓ property insurance fraud
After Tony, the owner of XYZ Cleaners, accidentally starts a fire, XYZ Cleaners
burns to the ground, taking all the garments with it. Afterwards, Tony has to rent
a new building and purchase new equipment and supplies. He is also responsible
for all the clothing that was in his care. Which type of coverage in his commercial
property policy could help Tony with the cost of paying for his customers'
destroyed clothing?
verified answers
A Discovery Form Commercial Crime policy can apply to losses discovered during
the policy period, as well as up to how many days after its expiration date?
Ans✓✓✓ A Discovery Form Commercial Crime policy can apply to losses
discovered during the policy period, as well as up to 60 days after its expiration
date.
A dwelling policy would NOT be appropriate for:
A. a duplex owned by an individual.
B. a single-family home wholly rented out.
C. a four-plex owned by a corporation.
D. a motorhome owned by an individual. Ans✓✓✓ D. a motorhome owned by an
individual.
A few weeks ago Christopher's garage was destroyed by an out-of-control
motorist. Fortunately, the motorist had sufficient liability insurance to cover the
damages. However, the insurer insists that Christopher's garage is worth far less
than the appraisals he has received from contractors. Christopher and the insurer
have gone back and forth in negotiations for weeks, making little headway.
Christopher decides it's time to: Ans✓✓✓ issue a complaint against the
policyholder
A fire in Sarah's factory causes her to shut the factory doors for 50 days. To limit
her loss of income and keep production going, Sarah spends $125,000 renting
equipment and another building. Sarah's commercial property policy doesn't have
Business Income Coverage, but it does include Extra Expense Coverage. The limit
on her Extra Expense coverage is $100,000 and she has Limits of Loss Payment of
,40%/80%/100% during her period of restoration. How much indemnification will
Sarah receive for her extra expenses? Ans✓✓✓ Since it took more than 30 days
but fewer than 60 days for repairs to be completed, her Extra Expenses coverage
will pay up to 80% of the limit ($100,000) which comes to $80,000.
A Florida company that is assigned to "Tier 2" for coverage under FWCJUA must
pay: Ans✓✓✓ rates that are 50% higher than voluntary market rates.
A large corporation owns a small hunting cabin in the woods, that it uses for
occasional weekend getaways. The corporation can insure the cabin against
property damage with a: Ans✓✓✓ dwelling policy
A processing and servicing company would qualify for a BOP only if they have less
than _____ in annual revenues. Ans✓✓✓ $3 million
A reciprocal insurer is: Ans✓✓✓ an unincorporated organization of subscribers
that operates through an attorney-in-fact to provide insurance benefits for its
members.
A Reservation of Rights letter is sent by:
A. the claimant.
B. the insurance company.
C. the claimant's lawyer.
D. the insurance broker. Ans✓✓✓ B. the insurance company.
,A short circuit in one of the refrigeration units in the Ice Queen ice cream shop
sparked a fire that severely damaged the shop, and it had to shut down for two
months while repairs were made. What type of additional coverage would
indemnify the Ice Queen for the lost income during these two months? Ans✓✓✓
Business Interruption Coverage
According to the "Definitions" section of a Personal Auto Policy, which of the
following is NOT "occupying" her vehicle?
A. Rachel leaves her cat in her car, with the windows cracked, while she goes into
the drugstore to fill a prescription.
B. Trishey is leaning on her car during a lunch break while she eats her lunch.
C. Jaminda is sitting on top of her car as she talks to her best friend on the phone.
D. Jordan is sitting in her parked car listening to music while she waits for her
sister to finish yoga class. Ans✓✓✓ A. Rachel leaves her cat in her car, with the
windows cracked, while she goes into the drugstore to fill a prescription.
Adam is shopping for a car in a local automobile dealership. While visiting the
showroom, he trips over a rug that has folded over and breaks his arm in the fall.
Which of the following is true?
A. Adam may file a first party claim with the dealership's insurance company.
B. Adam may file a third party claim with the dealership's insurance company.
C. The automobile dealership may file a first party claim with its own insurance
company.
D. The automobile dealership may file a third party claim with its own insurance
company. Ans✓✓✓ B. Adam may file a third party claim with the dealership's
insurance company.
, Adjuster Andy is trying to determine a final settlement amount for Stacy's claim.
Stacy's house was destroyed in a fire and it will cost $185,000 to rebuild it. Stacy's
homeowners policy has a limit of $178,000 and a $1,800 deductible. Typically,
how much would Adjuster Andy calculate Stacy's final settlement amount to be?
Ans✓✓✓ $178,000 (because the cost of repairs is more than the policy limit, the
final settlement amount is the full policy limit ($178,000) and the deductible is
absorbed into the amount of the loss that exceeds the limit.
After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:
A. confiscation of property by the government.
B. increased repair costs due to laws or codes.
C. any change that decreases the value of the property.
D. remediation of pollutants. Ans✓✓✓ B. increased repair costs due to laws or
codes.
After an earthquake, Jake's home is still standing, but it is a little shaken. The
damage is not extensive, but Jake wants to cash in on the situation, so he takes a
sledgehammer to some of his extra belongings and adds them to his claim. Jake
has committed: Ans✓✓✓ property insurance fraud
After Tony, the owner of XYZ Cleaners, accidentally starts a fire, XYZ Cleaners
burns to the ground, taking all the garments with it. Afterwards, Tony has to rent
a new building and purchase new equipment and supplies. He is also responsible
for all the clothing that was in his care. Which type of coverage in his commercial
property policy could help Tony with the cost of paying for his customers'
destroyed clothing?
