Claims Adjuster Florida Exam Questions and Answers
Grade A+
For purposes of insurance, a "loss" is best defined as: - Answer-an unwelcomed,
unplanned reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure
because it: - Answer-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: - Answer-a speculative risk
Which of the following is an example of pure risk? - Answer-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: - Answer-favors Best Manufacturing
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - Answer-contracts of adhesion
Which of the following correctly identifies three elements that must be present to
create an enforceable contract? - Answer-acceptance, consideration, and offer
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): - Answer-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? - Answer-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? - Answer-consequential
"Replacement cost minus physical depreciation" describes which type of loss
valuation method? - Answer-actual cash value
From a property insurance perspective, which of the following is NOT a basic type
of construction? - Answer-steel
For an insurer to pay a property insurance claim, when must the policyholder have
an insurable interest in the insured property? - Answer-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? -
Answer-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? - Answer-The bank faces the possibility of a loss if Corinne's
house is damaged or destroyed.
All of the following are perils EXCEPT:
texting while driving
theft
lightning
windstorm - Answer-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? - Answer-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 - Answer-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)? - Answer-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: - Answer-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.
Lilly is held responsible for her cat's injury to Lilly's guest. - Answer-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?
- Answer-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. - Answer-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: - Answer-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 - Answer-cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? -
Answer-to identify words and phrases that are defined in the policy
Which one of the following is NOT a type of provision found in property and
casualty insurance policies?
declarations
insertions
definitions
conditions - Answer-insertions
Grade A+
For purposes of insurance, a "loss" is best defined as: - Answer-an unwelcomed,
unplanned reduction in economic value
An automatic sprinkler system in a hotel building is a risk reduction measure
because it: - Answer-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: - Answer-a speculative risk
Which of the following is an example of pure risk? - Answer-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: - Answer-favors Best Manufacturing
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - Answer-contracts of adhesion
Which of the following correctly identifies three elements that must be present to
create an enforceable contract? - Answer-acceptance, consideration, and offer
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): - Answer-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? - Answer-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? - Answer-consequential
"Replacement cost minus physical depreciation" describes which type of loss
valuation method? - Answer-actual cash value
From a property insurance perspective, which of the following is NOT a basic type
of construction? - Answer-steel
For an insurer to pay a property insurance claim, when must the policyholder have
an insurable interest in the insured property? - Answer-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? -
Answer-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? - Answer-The bank faces the possibility of a loss if Corinne's
house is damaged or destroyed.
All of the following are perils EXCEPT:
texting while driving
theft
lightning
windstorm - Answer-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? - Answer-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 - Answer-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)? - Answer-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: - Answer-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.
Lilly is held responsible for her cat's injury to Lilly's guest. - Answer-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?
- Answer-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. - Answer-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: - Answer-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 - Answer-cancel the policy
Why do insurance policies use quotation marks with certain words and phrases? -
Answer-to identify words and phrases that are defined in the policy
Which one of the following is NOT a type of provision found in property and
casualty insurance policies?
declarations
insertions
definitions
conditions - Answer-insertions
