CLAIMS ADJUSTER FLORIDA EXAM
2025 QUESTIONS AND ANSWERS
For purposes of insurance, a "loss" is best defined as: - ANS an unwelcomed, unplanned
reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure because it: -
ANS reduces the amount of damage that a fire is likely to do
Insuring a new restaurant against business failure is not possible because business success or
failure is: - ANS a speculative risk
Which of the following is an example of pure risk? - ANS the possibility of a business being
flooded
Zenith Insurance Company issues a policy to Best Manufacturing Company. A dispute arises
between Zenith and Best on the meaning of an ambiguous clause in their contract. The matter
goes to court, which can be expected to interpret the clause in a manner that: - ANS favors
Best Manufacturing
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - ANS contracts of adhesion
Which of the following correctly identifies three elements that must be present to create an
enforceable contract? - ANS acceptance, consideration, and offer
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,Rhonda's parents bought her a car for her sixteenth birthday and made her responsible for
maintaining and insuring it. However, when Rhonda applied for auto insurance after getting her
driver's license, she was told that she could not enter into a binding insurance contract
because, according to the law in her state, a 16-year-old does not qualify as a(n): -
ANS competent party
A fire severely damages Carl's home, making it uninhabitable. He moves his family to a hotel
while the house is repaired. The additional expenses incurs in housing the family are considered
what type of loss? - ANS indirect
Butch's Meat Market loses electrical power during a flood. The business closes for several days,
during which time there is no refrigeration and a large quantity of meat spoils. The loss of the
meat is what type of loss? - ANS consequential
"Replacement cost minus physical depreciation" describes which type of loss valuation
method? - ANS actual cash value
From a property insurance perspective, which of the following is NOT a basic type of
construction? - ANS steel
For an insurer to pay a property insurance claim, when must the policyholder have an insurable
interest in the insured property? - ANS at the time of the loss
Ken's house has an exterior layer of brick that covers wooden walls supported by wooden 2-by-
4 studs. What type of construction does Ken's house have? - ANS masonry veneer
Corinne purchased her home with a 10 percent down payment and a 90 percent mortgage from
Sidney Bank. Why does Sidney Bank have an insurable interest in Corinne's house? - ANS The
bank faces the possibility of a loss if Corinne's house is damaged or destroyed.
All of the following are perils EXCEPT:
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,texting while driving
theft
lightning
windstorm - ANS texting while driving
A dump truck collided with a tall oak tree in Marian's front yard. The tree fell onto her house,
breaking a glass picture window and knocking a lamp off the table inside it. Sparks from the
lamp started a fire that destroyed half the house. What is the proximate cause of the damage
to Marian's house? - ANS the collision
All of the following causes of loss are commonly listed as excluded perils in open perils property
insurance policies, EXCEPT:
wear and tear
flood
war
vandalism - ANS vandalism
While a homeowner is out of town, a group of teenagers break into her house, throw a beer
party, and damage the interior without stealing anything. Connie's resulting property insurance
claim will be covered if her policy covers what peril(s)? - ANS vandalism
Laura owns poisonous snakes on her property, which she uses for venom research purposes.
One of the snakes escaped and within hours bit a neighbor who sued Laura. Though Laura was
not negligent in her ownership of the snakes, the plaintiff easily won the suit based on the
doctrine of: - ANS strict (absolute) liability
Which one of the following incidents is an example of vicarious liability?
Rudy is held responsible for an accident caused by his employee.
Dominic is held responsible for food poisoning due to a pizza he delivered.
Edie is held responsible for striking a pedestrian with her bicycle.
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, Lilly is held responsible for her cat's injury to Lilly's guest. - ANS Rudy is held responsible for
an accident caused by his employee.
Bill's children have grown up and moved away, but the tree house that he built for them now
draws other neighborhood children despite his handmade "No Trespassing" sign. If a neighbor's
child is injured by falling from the tree house, Bill might be held liable for the child's injuries
under what legal doctrine or principle? - ANS attractive nuisance
Lorraine was parking her car when her brakes failed, and she struck the car next to her, which
was owned by Marty. In this case, all the following statements are correct EXCEPT:
The rolling of Lorraine's car into Marty's car was the proximate cause of the damage.
The costs to repair Marty's car represent compensable damages.
The accident was a breach of duty on Lorraine's part.
Lorraine had a duty to keep her car from striking Marty's car. - ANS The rolling of Lorraine's
car into Marty's car was the proximate cause of the damage.
The gradually expanding brown spot on the ceiling of his barbershop suggests that Edmond
might have a plumbing leak, but he ignores it because any drips from the ceiling fall into a sink.
When the ceiling collapses because of water damage, Edmond finally submits an insurance
claim that the insurer denies because his policy has an exclusion for: - ANS water leakage or
seepage
Many endorsements are attached to Bettie's policy. If she examines them closely, she will
probably find one or more endorsements that do all the following EXCEPT:
expand coverage to cover a specific exposure
add exclusions
eliminate an exclusion
cancel the policy - ANS cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? - ANS to
identify words and phrases that are defined in the policy
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2025 QUESTIONS AND ANSWERS
For purposes of insurance, a "loss" is best defined as: - ANS an unwelcomed, unplanned
reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure because it: -
ANS reduces the amount of damage that a fire is likely to do
Insuring a new restaurant against business failure is not possible because business success or
failure is: - ANS a speculative risk
Which of the following is an example of pure risk? - ANS the possibility of a business being
flooded
Zenith Insurance Company issues a policy to Best Manufacturing Company. A dispute arises
between Zenith and Best on the meaning of an ambiguous clause in their contract. The matter
goes to court, which can be expected to interpret the clause in a manner that: - ANS favors
Best Manufacturing
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - ANS contracts of adhesion
Which of the following correctly identifies three elements that must be present to create an
enforceable contract? - ANS acceptance, consideration, and offer
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
,Rhonda's parents bought her a car for her sixteenth birthday and made her responsible for
maintaining and insuring it. However, when Rhonda applied for auto insurance after getting her
driver's license, she was told that she could not enter into a binding insurance contract
because, according to the law in her state, a 16-year-old does not qualify as a(n): -
ANS competent party
A fire severely damages Carl's home, making it uninhabitable. He moves his family to a hotel
while the house is repaired. The additional expenses incurs in housing the family are considered
what type of loss? - ANS indirect
Butch's Meat Market loses electrical power during a flood. The business closes for several days,
during which time there is no refrigeration and a large quantity of meat spoils. The loss of the
meat is what type of loss? - ANS consequential
"Replacement cost minus physical depreciation" describes which type of loss valuation
method? - ANS actual cash value
From a property insurance perspective, which of the following is NOT a basic type of
construction? - ANS steel
For an insurer to pay a property insurance claim, when must the policyholder have an insurable
interest in the insured property? - ANS at the time of the loss
Ken's house has an exterior layer of brick that covers wooden walls supported by wooden 2-by-
4 studs. What type of construction does Ken's house have? - ANS masonry veneer
Corinne purchased her home with a 10 percent down payment and a 90 percent mortgage from
Sidney Bank. Why does Sidney Bank have an insurable interest in Corinne's house? - ANS The
bank faces the possibility of a loss if Corinne's house is damaged or destroyed.
All of the following are perils EXCEPT:
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,texting while driving
theft
lightning
windstorm - ANS texting while driving
A dump truck collided with a tall oak tree in Marian's front yard. The tree fell onto her house,
breaking a glass picture window and knocking a lamp off the table inside it. Sparks from the
lamp started a fire that destroyed half the house. What is the proximate cause of the damage
to Marian's house? - ANS the collision
All of the following causes of loss are commonly listed as excluded perils in open perils property
insurance policies, EXCEPT:
wear and tear
flood
war
vandalism - ANS vandalism
While a homeowner is out of town, a group of teenagers break into her house, throw a beer
party, and damage the interior without stealing anything. Connie's resulting property insurance
claim will be covered if her policy covers what peril(s)? - ANS vandalism
Laura owns poisonous snakes on her property, which she uses for venom research purposes.
One of the snakes escaped and within hours bit a neighbor who sued Laura. Though Laura was
not negligent in her ownership of the snakes, the plaintiff easily won the suit based on the
doctrine of: - ANS strict (absolute) liability
Which one of the following incidents is an example of vicarious liability?
Rudy is held responsible for an accident caused by his employee.
Dominic is held responsible for food poisoning due to a pizza he delivered.
Edie is held responsible for striking a pedestrian with her bicycle.
3 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, Lilly is held responsible for her cat's injury to Lilly's guest. - ANS Rudy is held responsible for
an accident caused by his employee.
Bill's children have grown up and moved away, but the tree house that he built for them now
draws other neighborhood children despite his handmade "No Trespassing" sign. If a neighbor's
child is injured by falling from the tree house, Bill might be held liable for the child's injuries
under what legal doctrine or principle? - ANS attractive nuisance
Lorraine was parking her car when her brakes failed, and she struck the car next to her, which
was owned by Marty. In this case, all the following statements are correct EXCEPT:
The rolling of Lorraine's car into Marty's car was the proximate cause of the damage.
The costs to repair Marty's car represent compensable damages.
The accident was a breach of duty on Lorraine's part.
Lorraine had a duty to keep her car from striking Marty's car. - ANS The rolling of Lorraine's
car into Marty's car was the proximate cause of the damage.
The gradually expanding brown spot on the ceiling of his barbershop suggests that Edmond
might have a plumbing leak, but he ignores it because any drips from the ceiling fall into a sink.
When the ceiling collapses because of water damage, Edmond finally submits an insurance
claim that the insurer denies because his policy has an exclusion for: - ANS water leakage or
seepage
Many endorsements are attached to Bettie's policy. If she examines them closely, she will
probably find one or more endorsements that do all the following EXCEPT:
expand coverage to cover a specific exposure
add exclusions
eliminate an exclusion
cancel the policy - ANS cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? - ANS to
identify words and phrases that are defined in the policy
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