Adjuster's License Exam
All of the following describe insurable interest EXCEPT:
A) Insurable Interest must exist at the time of the loss.
B) Insurance Interest must exist for insurance to respond.
C) Show a similarity between insurance and wagering.
D) The insured would suffer economic loss. - answerC) Show similarity between
insurance and wagering.
Wagering, gambling, and stock market investments are all examples of speculative risk
that is not insurable.
An Insurance Policy is a contract with all of the following characteristics, EXCEPT
A) It is a personal contract.
B) Parties are of unequal power with ambiguities or unclear wording resolved in favor of
the insured because it is a contract of adhesion.
C) Indemnity is not part of an insurance contract.
D) There are conditions imposed upon both the insurer and insured. - answerC)
Indemnity is not part of an insurance contract.
Indemnity is the central characteristic of an insurance policy. It is the goal of insurance
to economically restore an insured after loss.
An insurance contract may contain a "gray area" or an ambiguity, that is generally
resolved in favor of the insured because insurance policies are contracts of:
A) Indemnity
B) Cohesion
C) Adhesion
D) Conditions - answerC) Adhesion
,If an insured sells his car to another person, the buyer may be prohibited from also
receiving the insured's policy. This is because the insurance contract is a contract of:
A) Personal nature
B) Indemnity
C) Adhesion
D) Actual cash value - answerA) Personal nature
Strict or absolute liability:
A) applies to school systems.
B) must have a failure to use "due care".
C) considers the actions of a prudent person.
D) is assigned by law or statute. - answerD) is assigned by law or statue.
Jack and Connie - both 50 years old and sound of mind - agree to have Jack burn down
Connie's house for $10,000. What element of a valid contract is missing?
A) Legal purpose
B) Competent parties
C) Consideration
D) Agreement of the parties - answerA) Legal purpose
Arson is not legal.
Risks that are insurable are:
A) Speculative risk
B) Pure risk
C) Both A & B
D) None of the above - answerB) Pure risk
Insurance that covers the responsibility for loss arising out of policy holder's negligence
that results in payment to a party other than the insured is:
,A) Not available in Florida insurance policies
B) Fourth party claims
C) Standard property insurance
D) Liability - answerD) Liability
Loss arising out of negligence is a liability exposure.
The goal of insurance is to restore the insured to the same economic position as before
the covered loss occurred. This is a principle of:
A) Adhesion
B) Actual Cash Value
C) Indemnity
D) Severability - answerC) Indemnity
At the end of this course, you must do which of the following?
A) Pass the final course exam with a scored of 70% or higher
B) Print your certificate from this website
C) Apply for your Insurance Adjuster license at the Florida Department of Financial
Services website at www.myfloridacfo.com/division/agents
D) All of the above - answerD) All of the above
Liability limits may be expressed as a:
A) Aggregate Limit
B) Split Limit
C) Single Limit
D) All of the above - answerD) All of the above
An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following
people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000,
, Passenger 3 = $18,000. How much liability insurance will his policy pay for these
claims?
A) $10,000
B) $20,000
C) $30,000
D) $40,000 - answerB) $20,000
If a lender has an insurable interest in an auto, because of the money loaned to finance
the auto, the lender would appear on the policy as the:
A) Lessee
B) Loss payee
C) Mortgagor
D) Mortgagee - answerB) Loss payee
To turn partially damaged property over to the insurance company and ask them to pay
for a total loss is called
A) Morale hazard
B) Abandonment
C) Conveyance
D) Proof of loss - answerB) Abandonment
Firemen caused water damage to a property by spraying water to put out a fire. If the
property insurance policy listed "fire" as the only named peril:
A) The water damage is not covered.
B) The fire dept. has liability for the water damage.
C) The water damage is covered due to the concept of proximate cause.
D) The fire damage is covered but not the water damage due to proximate cause. -
answerC) The water damage is covered due to the concept of proximate cause.
All of the following describe insurable interest EXCEPT:
A) Insurable Interest must exist at the time of the loss.
B) Insurance Interest must exist for insurance to respond.
C) Show a similarity between insurance and wagering.
D) The insured would suffer economic loss. - answerC) Show similarity between
insurance and wagering.
Wagering, gambling, and stock market investments are all examples of speculative risk
that is not insurable.
An Insurance Policy is a contract with all of the following characteristics, EXCEPT
A) It is a personal contract.
B) Parties are of unequal power with ambiguities or unclear wording resolved in favor of
the insured because it is a contract of adhesion.
C) Indemnity is not part of an insurance contract.
D) There are conditions imposed upon both the insurer and insured. - answerC)
Indemnity is not part of an insurance contract.
Indemnity is the central characteristic of an insurance policy. It is the goal of insurance
to economically restore an insured after loss.
An insurance contract may contain a "gray area" or an ambiguity, that is generally
resolved in favor of the insured because insurance policies are contracts of:
A) Indemnity
B) Cohesion
C) Adhesion
D) Conditions - answerC) Adhesion
,If an insured sells his car to another person, the buyer may be prohibited from also
receiving the insured's policy. This is because the insurance contract is a contract of:
A) Personal nature
B) Indemnity
C) Adhesion
D) Actual cash value - answerA) Personal nature
Strict or absolute liability:
A) applies to school systems.
B) must have a failure to use "due care".
C) considers the actions of a prudent person.
D) is assigned by law or statute. - answerD) is assigned by law or statue.
Jack and Connie - both 50 years old and sound of mind - agree to have Jack burn down
Connie's house for $10,000. What element of a valid contract is missing?
A) Legal purpose
B) Competent parties
C) Consideration
D) Agreement of the parties - answerA) Legal purpose
Arson is not legal.
Risks that are insurable are:
A) Speculative risk
B) Pure risk
C) Both A & B
D) None of the above - answerB) Pure risk
Insurance that covers the responsibility for loss arising out of policy holder's negligence
that results in payment to a party other than the insured is:
,A) Not available in Florida insurance policies
B) Fourth party claims
C) Standard property insurance
D) Liability - answerD) Liability
Loss arising out of negligence is a liability exposure.
The goal of insurance is to restore the insured to the same economic position as before
the covered loss occurred. This is a principle of:
A) Adhesion
B) Actual Cash Value
C) Indemnity
D) Severability - answerC) Indemnity
At the end of this course, you must do which of the following?
A) Pass the final course exam with a scored of 70% or higher
B) Print your certificate from this website
C) Apply for your Insurance Adjuster license at the Florida Department of Financial
Services website at www.myfloridacfo.com/division/agents
D) All of the above - answerD) All of the above
Liability limits may be expressed as a:
A) Aggregate Limit
B) Split Limit
C) Single Limit
D) All of the above - answerD) All of the above
An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following
people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000,
, Passenger 3 = $18,000. How much liability insurance will his policy pay for these
claims?
A) $10,000
B) $20,000
C) $30,000
D) $40,000 - answerB) $20,000
If a lender has an insurable interest in an auto, because of the money loaned to finance
the auto, the lender would appear on the policy as the:
A) Lessee
B) Loss payee
C) Mortgagor
D) Mortgagee - answerB) Loss payee
To turn partially damaged property over to the insurance company and ask them to pay
for a total loss is called
A) Morale hazard
B) Abandonment
C) Conveyance
D) Proof of loss - answerB) Abandonment
Firemen caused water damage to a property by spraying water to put out a fire. If the
property insurance policy listed "fire" as the only named peril:
A) The water damage is not covered.
B) The fire dept. has liability for the water damage.
C) The water damage is covered due to the concept of proximate cause.
D) The fire damage is covered but not the water damage due to proximate cause. -
answerC) The water damage is covered due to the concept of proximate cause.
