6 FLORIDA CLAIMS EXAM

6-20 Claims Adjuster With Correct
Answers


The following are basic characteristics of a property or liability insurance contract, EXCEPT:
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A. Personal Contract
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B. Conditional Contract
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C. Loss Settlement Contract
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D. Contract of Adhesion CORRECT ANSWERSC. Loss Settlement Contract
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The Insurers responsibility to pay for a property loss may be conditioned on the insured having used
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reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof
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of the loss is defined as?
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A. Conditional Contract
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B. Adhesion Contract
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C. Indemnity Contract
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,D. All of the Above CORRECT ANSWERSA. Conditional Contract
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A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject:
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A. Conditional Contract
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B. Personal Contract
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C. Economic Contract
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D. Insurable Interest CORRECT ANSWERSD. Insurable Interest
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The __________ states that when there is an unbroken connection between an occurrence and damage that
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grows out of the occurrence, then the resultant damage is all a part of the occurrence.
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A. Doctrine of Proximate Cause
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B. Doctrine of Perils & Hazards
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C. Insurance Policy Handbook
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D. Doctrine of Property Insurance CORRECT ANSWERSA. Doctrine of Proximate Cause
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Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional
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interests on his homeowner policy. The insurance company will make a payment to:
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A. The first mortgagee, ABC
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B. The Insured
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C. Jointly to ABC and XYZ
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D. All listed interests CORRECT ANSWERSD. All listed interests
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The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
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,A. Actual Cash Value
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B. Replacement Cost
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C. "Old For New"
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D. None of the Above CORRECT ANSWERSA. Actual Cash Value
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Insurance applies separately to each insured as if other insureds did not exist. This is defined as:
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A. Severability
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B. Conditional
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C. Warranty
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D. None of the Above CORRECT ANSWERSA. Severability
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States that if the insurer adopts a revision which would broaden coverage without additional premium within
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some period of time prior to the policy period or during the policy period, the insured receives the benefit of
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such broadened coverage. (Usually 60 days)
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A. Cancellation Clause
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B. Policy Period
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C. Pro Rata
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D. Liberalization CORRECT ANSWERSD. Liberalization
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Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump
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damaged property on the insurer and demand its full value:
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A. Pro Rata
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B. Abandonment
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, C. Liberalization
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D. All of the Above CORRECT ANSWERSB. Abandonment
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A policy condition, either based on information in the insured's application or inserted by the insurer, is
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defined as:
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A. Warranty
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B. Misrepresentation
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C. Concealment
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D. None of the Above CORRECT ANSWERSA. Warranty
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If financial responsibility doesn't exist at the time of an accident, which of the following things must happen to
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avoid penalties?
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A. The legally valid claims of others must be satisfied (up to 10/20/10)
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B. The owner and operator must provide certification of future responsibility for future accidents
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C. Both A&B
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D. None of the Above CORRECT ANSWERSC. Both A&B
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Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his renewal date he
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receives notice of the company's intention to non-renew because of 3 negligent losses and 1 speeding ticket
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in the past 3 years. His driving record and claim history make this a valid non-renewal.
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A. True j




B. False CORRECT ANSWERSB. False
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Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
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