Florida Claims Adjuster Exam | 206 Questions with 100% Correct Answers |

Florida Claims Adjuster Exam | 206 Questions
with 100% Correct Answers |


Florida Claims Adjuster Practice Exam
206 Original Practice Questions with Answer Key


Section 1 – Insurance Fundamentals
1.
Insurance is primarily designed to:
A. Increase profits
B. Transfer risk
C. Eliminate all losses
D. Guarantee investments
Answer: B


2.
A deductible is:
A. The premium owed
B. The amount the insurer pays first
C. The amount the insured pays before coverage begins
D. A type of endorsement
Answer: C

,3.
The principle of indemnity means:
A. Every claim earns profit
B. The insured is restored financially to the approximate position
before the loss
C. The insurer makes investment gains
D. Every loss is fully reimbursed
Answer: B


4.
Actual Cash Value generally equals:
A. Replacement Cost minus depreciation
B. Market value only
C. Original purchase price
D. Policy limit
Answer: A


5.
Replacement Cost coverage pays:
A. Original purchase price
B. Current repair or replacement without depreciation (subject to
policy conditions)

, C. Market value
D. Actual Cash Value only
Answer: B


6.
Subrogation allows an insurer to:
A. Increase premiums
B. Recover payments from a negligent third party
C. Cancel policies
D. Deny claims automatically
Answer: B


7.
The insured must have:
A. Financial interest in the property or person insured
B. A mortgage
C. A bank account
D. Business income
Answer: A


8.
Peril means: