Florida Certified Adjuster Pre-
Licensing Questions and correct
answers Graded A+
Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary
service to the benefit of society. He also recently purchased a $100,000 life insurance policy
from the organization. This was possible because the Knights of Columbus is: - Correct Answer:
a fraternal benefit society
Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30
days late. However, Jason is currently more than 30 days late, and has been so five times in the
last year, and his insurer has done nothing about it. When Jason gets into an accident and files a
claim, which of the following is most likely to happen? - Correct Answer: The insurer will pay the
claim because of the implied waiver they have made by not cancelling Jason's policy the
previous times he was late with his payments
Jared hopes to purchase a new insurance policy for his car, but he has an extremely poor driving
record. The insurance company decides to issue Jared an insurance policy, but charges him a
premium much higher than the average driver. The insurance company is practicing: - Correct
Answer: risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory, conditional,
unilateral, universal) - Correct Answer: universal
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: - Correct Answer: issue a complaint against the
policyholder
A reciprocal insurer is: - Correct Answer: an unincorporated organization of subscribers that
operates through an attorney-in-fact to provide insurance benefits for its members.
Bob has been in the construction business a long time and is ready to retire. He sells the
company to his friend Scott and then lets the insurer know that any claims against his policy
should be paid to Scott from now on. The insurer informs Bob that they cannot do this due to
which condition? - Correct Answer: assignment
Cindy and her insurer cannot reach an agreement for her property claim, and have gone back
and forth for weeks without coming within $10,000 of each other. At this point, since both
believe they are offering a fair settlement, a third party is needed to help facilitate the
negotiation. Both parties still want to retain their ability to "walk-away" if they cannot reach an
agreement. What is the next best step for Cindy and her insurer? - Correct Answer: mediation
How is the power to bind transferred to an adjuster? - Correct Answer: it is transferred through
a written contract
Which of the following statements best describes a part of the appraisal process?
A. The claimant and the insurer each select an appraiser, and those two select an umpire.
B. All parties must agree to the final amount in order for it to be binding.
C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties
come to a settlement.
D. The opposing parties submit their evidence to the appraiser, who makes a final and binding
decision. - Correct Answer: A. The claimant and the insurer each select an appraiser, and those
two select an umpire.
,Bob's home was severely damaged by a thunderstorm and he claims it will cost $74,000 to
repair. His insurer has investigated the claim, found the repairs could be done for $49,000, and
has offered Bob this amount of indemnification. Negotiation between Bob and his insurer
seems to be failing. Due to the unpredictability of the result, which of the following options
should be avoided by the insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - Correct Answer: C. Litigation
In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - Correct Answer: B. The two appraisers
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? - Correct Answer: $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.
Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the insurer and the
claimant.
, B. An insurance adjuster is an agent.
C. An insurance adjuster who settles claims on behalf of an insurer has the power to bind that
insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the insurer through
a written contract. - Correct Answer: D. An insurance adjuster receives her authority to sell
products on behalf of the insurer through a written contract.
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. - Correct Answer: B. increased repair costs due to laws or codes.
Coverage C - Personal Property of a homeowners policy typically excludes:
A. furniture.
B. fish.
C. dishes.
D. blanket coverage of personal property. - Correct Answer: B. fish
Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection,
separate from his home and other property. What term most accurately describes the type of
policy Stu would purchase?
A. Valuable Papers Policy
B. Actual Cash Value Policy
C. Standard Fire Policy
Licensing Questions and correct
answers Graded A+
Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary
service to the benefit of society. He also recently purchased a $100,000 life insurance policy
from the organization. This was possible because the Knights of Columbus is: - Correct Answer:
a fraternal benefit society
Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30
days late. However, Jason is currently more than 30 days late, and has been so five times in the
last year, and his insurer has done nothing about it. When Jason gets into an accident and files a
claim, which of the following is most likely to happen? - Correct Answer: The insurer will pay the
claim because of the implied waiver they have made by not cancelling Jason's policy the
previous times he was late with his payments
Jared hopes to purchase a new insurance policy for his car, but he has an extremely poor driving
record. The insurance company decides to issue Jared an insurance policy, but charges him a
premium much higher than the average driver. The insurance company is practicing: - Correct
Answer: risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory, conditional,
unilateral, universal) - Correct Answer: universal
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: - Correct Answer: issue a complaint against the
policyholder
A reciprocal insurer is: - Correct Answer: an unincorporated organization of subscribers that
operates through an attorney-in-fact to provide insurance benefits for its members.
Bob has been in the construction business a long time and is ready to retire. He sells the
company to his friend Scott and then lets the insurer know that any claims against his policy
should be paid to Scott from now on. The insurer informs Bob that they cannot do this due to
which condition? - Correct Answer: assignment
Cindy and her insurer cannot reach an agreement for her property claim, and have gone back
and forth for weeks without coming within $10,000 of each other. At this point, since both
believe they are offering a fair settlement, a third party is needed to help facilitate the
negotiation. Both parties still want to retain their ability to "walk-away" if they cannot reach an
agreement. What is the next best step for Cindy and her insurer? - Correct Answer: mediation
How is the power to bind transferred to an adjuster? - Correct Answer: it is transferred through
a written contract
Which of the following statements best describes a part of the appraisal process?
A. The claimant and the insurer each select an appraiser, and those two select an umpire.
B. All parties must agree to the final amount in order for it to be binding.
C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties
come to a settlement.
D. The opposing parties submit their evidence to the appraiser, who makes a final and binding
decision. - Correct Answer: A. The claimant and the insurer each select an appraiser, and those
two select an umpire.
,Bob's home was severely damaged by a thunderstorm and he claims it will cost $74,000 to
repair. His insurer has investigated the claim, found the repairs could be done for $49,000, and
has offered Bob this amount of indemnification. Negotiation between Bob and his insurer
seems to be failing. Due to the unpredictability of the result, which of the following options
should be avoided by the insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - Correct Answer: C. Litigation
In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - Correct Answer: B. The two appraisers
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? - Correct Answer: $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.
Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the insurer and the
claimant.
, B. An insurance adjuster is an agent.
C. An insurance adjuster who settles claims on behalf of an insurer has the power to bind that
insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the insurer through
a written contract. - Correct Answer: D. An insurance adjuster receives her authority to sell
products on behalf of the insurer through a written contract.
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. - Correct Answer: B. increased repair costs due to laws or codes.
Coverage C - Personal Property of a homeowners policy typically excludes:
A. furniture.
B. fish.
C. dishes.
D. blanket coverage of personal property. - Correct Answer: B. fish
Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection,
separate from his home and other property. What term most accurately describes the type of
policy Stu would purchase?
A. Valuable Papers Policy
B. Actual Cash Value Policy
C. Standard Fire Policy
