Florida Adjuster licensing
Florida Adjuster licensing Exam Questions
and Answers Latest
Question 1
While driving, Ben was struck by another driver, Roxanne. Ben then filed a claim with
Roxanne's insurer. In
essence, what was Ben doing when he filed this claim?
Alerting Roxanne's insurer of his intent to take the case to court
Submitting a formal request to settle the damages with Roxanne's insurer
Ordering Roxanne's insurer to pay for his damages within 15 days
Admitting he was actually "at fault"
Correct Answer
Submitting a formal request to settle the damages with Roxanne's insurer
Question 2
Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his
insurance company and
$4,000 from the other driver. By receiving a profit from the loss, Mark could be in
violation of:
the principle of financial status.
the principle of financial restoration.
the principle of profit and loss.
the principle of indemnity.
Correct Answer
the principle of indemnity
Page 1 of 189
, Florida Adjuster licensing
Question 3
What is a reserve, in insurance terms?
The amount of revenue that the insurer sets aside to pay employee salaries
A group of policyholders who pay into the same pool of premiums
A pool of collected premiums that the insurer sets aside to pay claims
A set of rules governing how the insurance industry should work
Correct Answer
A pool of collected premiums that the insurer sets aside to pay claims
Question 4
The purpose of the principle of indemnity is:
to prevent an insured from making a profit on a loss.
to transfer the risk of financial loss from one party to another.
to transfer the right to collect a debt from one party to another.
to prevent an insurer from making a profit on a loss.
Correct Answer
to prevent an insured from making a profit on a loss.
Question 5
Greg plays trombone in his school band during football games. During a rally song in
the stands one day,
Greg annoys one of the opposing team's fans, who grabs his $400 trombone and
hurls it down the
bleachers, completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the
opposing team's coach also offers to replace the instrument, at whatever the cost. So
Greg orders a new
$3,200 trombone and has the opposing team's athletic department absorb the cost.
Which principle has
Greg violated?
The principle of consideration
The principle of legal purpose
The principal of the opposing team
The principle of indemnity
Correct Answer
The principle of indemnity
Page 2 of 189
, Florida Adjuster licensing
Question 6
Which of the following refers to being restored to the financial condition you were in
before a loss?
Indemnification
Restoration
Estoppel
Subrogation
Correct Answer
Indemnification
Question 7
Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of
the following would be
a reason this policy may not be legally binding?
Bobby has an outstanding warrant for selling marijuana.
Bobby has been diagnosed with schizophrenia.
Bobby paid his first premium when he and his agent agreed on a policy, but he is
waiting for the policy documents to be prepared so he can sign them
Bobby is only 19 years old.
Correct Answer
Bobby has been diagnosed with schizophrenia.
Question 8
Indemnification may include all of the following except:
reimbursement for hotel costs.
reimbursement for rental car costs.
payment for pain and suffering.
payment for repairs to property.
Correct Answer
payment for pain and suffering.
Page 3 of 189
, Florida Adjuster licensing
Question 9
Which of the following is NOT a requirement for a legally binding contract?
There must be a legal purpose.
There must be mutual consent.
Both parties must bring something of value.
It must be a notarized document.
Correct Answer
It must be a notarized document.
Question 10
The fee paid by the insured in exchange for an insurance policy is called a:
premium.
legal purpose.
binder.
contract.
Correct Answer
premium
Question 11
Which of the following best defines the principle of indemnity?
Both parties to an insurance contract must contribute something of value.
After a loss, the insured should be restored to his approximate financial condition
before the loss.
In order to be legally binding, a contract must have agreement, consideration,
competent parties, and
legal purpose.
In exchange for a premium, the insurer grants peace of mind by reducing the
insured's insecurity about
the future.
Correct Answer
After a loss, the insured should be restored to his approximate financial condition
before the loss.
Page 4 of 189
Florida Adjuster licensing Exam Questions
and Answers Latest
Question 1
While driving, Ben was struck by another driver, Roxanne. Ben then filed a claim with
Roxanne's insurer. In
essence, what was Ben doing when he filed this claim?
Alerting Roxanne's insurer of his intent to take the case to court
Submitting a formal request to settle the damages with Roxanne's insurer
Ordering Roxanne's insurer to pay for his damages within 15 days
Admitting he was actually "at fault"
Correct Answer
Submitting a formal request to settle the damages with Roxanne's insurer
Question 2
Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his
insurance company and
$4,000 from the other driver. By receiving a profit from the loss, Mark could be in
violation of:
the principle of financial status.
the principle of financial restoration.
the principle of profit and loss.
the principle of indemnity.
Correct Answer
the principle of indemnity
Page 1 of 189
, Florida Adjuster licensing
Question 3
What is a reserve, in insurance terms?
The amount of revenue that the insurer sets aside to pay employee salaries
A group of policyholders who pay into the same pool of premiums
A pool of collected premiums that the insurer sets aside to pay claims
A set of rules governing how the insurance industry should work
Correct Answer
A pool of collected premiums that the insurer sets aside to pay claims
Question 4
The purpose of the principle of indemnity is:
to prevent an insured from making a profit on a loss.
to transfer the risk of financial loss from one party to another.
to transfer the right to collect a debt from one party to another.
to prevent an insurer from making a profit on a loss.
Correct Answer
to prevent an insured from making a profit on a loss.
Question 5
Greg plays trombone in his school band during football games. During a rally song in
the stands one day,
Greg annoys one of the opposing team's fans, who grabs his $400 trombone and
hurls it down the
bleachers, completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the
opposing team's coach also offers to replace the instrument, at whatever the cost. So
Greg orders a new
$3,200 trombone and has the opposing team's athletic department absorb the cost.
Which principle has
Greg violated?
The principle of consideration
The principle of legal purpose
The principal of the opposing team
The principle of indemnity
Correct Answer
The principle of indemnity
Page 2 of 189
, Florida Adjuster licensing
Question 6
Which of the following refers to being restored to the financial condition you were in
before a loss?
Indemnification
Restoration
Estoppel
Subrogation
Correct Answer
Indemnification
Question 7
Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of
the following would be
a reason this policy may not be legally binding?
Bobby has an outstanding warrant for selling marijuana.
Bobby has been diagnosed with schizophrenia.
Bobby paid his first premium when he and his agent agreed on a policy, but he is
waiting for the policy documents to be prepared so he can sign them
Bobby is only 19 years old.
Correct Answer
Bobby has been diagnosed with schizophrenia.
Question 8
Indemnification may include all of the following except:
reimbursement for hotel costs.
reimbursement for rental car costs.
payment for pain and suffering.
payment for repairs to property.
Correct Answer
payment for pain and suffering.
Page 3 of 189
, Florida Adjuster licensing
Question 9
Which of the following is NOT a requirement for a legally binding contract?
There must be a legal purpose.
There must be mutual consent.
Both parties must bring something of value.
It must be a notarized document.
Correct Answer
It must be a notarized document.
Question 10
The fee paid by the insured in exchange for an insurance policy is called a:
premium.
legal purpose.
binder.
contract.
Correct Answer
premium
Question 11
Which of the following best defines the principle of indemnity?
Both parties to an insurance contract must contribute something of value.
After a loss, the insured should be restored to his approximate financial condition
before the loss.
In order to be legally binding, a contract must have agreement, consideration,
competent parties, and
legal purpose.
In exchange for a premium, the insurer grants peace of mind by reducing the
insured's insecurity about
the future.
Correct Answer
After a loss, the insured should be restored to his approximate financial condition
before the loss.
Page 4 of 189
