FLORIDA PUBLIC ADJUSTER EVALUATION TEST
QUESTIONS AND ANSWERS SURE A+
✔✔Direct response system - ✔✔Includes any insurance marketing system that relies
primarily on mail, advertisements, phone or Internet sales.
✔✔Brokers - ✔✔Are representatives of insurance buyers. They resemble agents except
for the fact that they represent customers rather than insurers.
✔✔Non-resident agent - ✔✔An individual licensed in his or her own state, and obtains a
similar license in another state to solicit insurance business in that state
✔✔What are the 3 agent's Sources of Authority? - ✔✔-Express authority
-Implied authority
-Apparent authority
✔✔Express authority - ✔✔Is specific authority granted in oral or written form from the
insurer (e.g., sell insurance products and bind coverage);
✔✔Implied authority - ✔✔Is authority that arises from actions of the agent that are
consistent with accepted customs and are considered to be within the scope of authority
granted by the Insurer, even though such authority is not expressly granted orally or in
an agency contract.
✔✔Apparent authority - ✔✔Is based on a third party's (or insurance consumer)
reasonable belief that an agent has authority to act on behalf of the Insurer. Without
actual notice or reason to believe otherwise, a third party cannot be expected to know of
any unusual limitations the Insurer has placed on the agent's authority.
✔✔Unfair and Deceptive Practices of Insurers & Agents - ✔✔-Rebating
-Churning
-Twisting
, -Unfair Discrimination
✔✔Rebating - ✔✔A practice whereby something of value is given to sell the policy that
is not provided for in the policy itself.
An example of rebating is when the prospective insurance buyer receives a refund of all
or part of the commission for the insurance sale.
✔✔Churning - ✔✔An attempt by an unscrupulous agent to cancel an existing policy and
replace it with a new one, drawing down the cash value to pay for it.
This activity generates an additional commission for the agent and may result in the
consumer
having to pay more down the line.
✔✔Twisting - ✔✔When a misleading representation or comparison of insurers/policies
is made
to a policyholder for the purpose of inducing him or her to lapse, forfeit, change or
surrender
their insurance, and take out a policy with another insurer instead.
✔✔Unfair Discrimination - ✔✔Whenever a choice to offer a policy revolves around a
distinction that is irrelevant to offering insurance coverage. An example of this is to deny
coverage based upon an arbitrary difference such as race or religion.
✔✔Who is the "first party" in a contract? - ✔✔The insured
✔✔Policy - ✔✔A written contract or agreement where one party (the insurance
company) agrees to indemnify or pay to another (the policyholder) a determinable
amount of money or benefit upon determinable contingencies (i.e. an accident or
occurrence).
✔✔Who is the "second party" in a contract? - ✔✔The insurance company (But it is
rarely referred as that)
✔✔Who is the "third party" in a contract? - ✔✔A stranger to the policy: that is, someone
who is neither insured nor insurer.
✔✔First-party claim - ✔✔A demand by an insured person or organization seeking to
recover from its insurer for a loss that its insurance policy may cover. Must be paid
directly to the insured.
✔✔Third-party claim - ✔✔Involves damage or harm to a third party (i.e., someone other
than the insured). A typical example of a third-party claim is a lawsuit against an insured
driver who negligently caused an auto collision.
QUESTIONS AND ANSWERS SURE A+
✔✔Direct response system - ✔✔Includes any insurance marketing system that relies
primarily on mail, advertisements, phone or Internet sales.
✔✔Brokers - ✔✔Are representatives of insurance buyers. They resemble agents except
for the fact that they represent customers rather than insurers.
✔✔Non-resident agent - ✔✔An individual licensed in his or her own state, and obtains a
similar license in another state to solicit insurance business in that state
✔✔What are the 3 agent's Sources of Authority? - ✔✔-Express authority
-Implied authority
-Apparent authority
✔✔Express authority - ✔✔Is specific authority granted in oral or written form from the
insurer (e.g., sell insurance products and bind coverage);
✔✔Implied authority - ✔✔Is authority that arises from actions of the agent that are
consistent with accepted customs and are considered to be within the scope of authority
granted by the Insurer, even though such authority is not expressly granted orally or in
an agency contract.
✔✔Apparent authority - ✔✔Is based on a third party's (or insurance consumer)
reasonable belief that an agent has authority to act on behalf of the Insurer. Without
actual notice or reason to believe otherwise, a third party cannot be expected to know of
any unusual limitations the Insurer has placed on the agent's authority.
✔✔Unfair and Deceptive Practices of Insurers & Agents - ✔✔-Rebating
-Churning
-Twisting
, -Unfair Discrimination
✔✔Rebating - ✔✔A practice whereby something of value is given to sell the policy that
is not provided for in the policy itself.
An example of rebating is when the prospective insurance buyer receives a refund of all
or part of the commission for the insurance sale.
✔✔Churning - ✔✔An attempt by an unscrupulous agent to cancel an existing policy and
replace it with a new one, drawing down the cash value to pay for it.
This activity generates an additional commission for the agent and may result in the
consumer
having to pay more down the line.
✔✔Twisting - ✔✔When a misleading representation or comparison of insurers/policies
is made
to a policyholder for the purpose of inducing him or her to lapse, forfeit, change or
surrender
their insurance, and take out a policy with another insurer instead.
✔✔Unfair Discrimination - ✔✔Whenever a choice to offer a policy revolves around a
distinction that is irrelevant to offering insurance coverage. An example of this is to deny
coverage based upon an arbitrary difference such as race or religion.
✔✔Who is the "first party" in a contract? - ✔✔The insured
✔✔Policy - ✔✔A written contract or agreement where one party (the insurance
company) agrees to indemnify or pay to another (the policyholder) a determinable
amount of money or benefit upon determinable contingencies (i.e. an accident or
occurrence).
✔✔Who is the "second party" in a contract? - ✔✔The insurance company (But it is
rarely referred as that)
✔✔Who is the "third party" in a contract? - ✔✔A stranger to the policy: that is, someone
who is neither insured nor insurer.
✔✔First-party claim - ✔✔A demand by an insured person or organization seeking to
recover from its insurer for a loss that its insurance policy may cover. Must be paid
directly to the insured.
✔✔Third-party claim - ✔✔Involves damage or harm to a third party (i.e., someone other
than the insured). A typical example of a third-party claim is a lawsuit against an insured
driver who negligently caused an auto collision.
