CLAIMS ADJUSTER CERTIFIED PROFESSIONAL
FLORIDA QUIZZES WITH ACTUAL ANSWERS |
LATEST UPDATE .
In the typical insurance sales transaction, the insurance company makes the initial offer to the insurance
applicant. Tor F - correct Answers -false- In the typical insurance transaction, the applicant is the offeror
who makes an offer to the insurance company (the offeree) through a signed application plus the initial
premium.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance company,
which party is the offeree? - correct Answers -Insurer- In the typical insurance transaction, the applicant
(offeror) makes the offer to the insurance company (offeree) through a signed application plus a
premium deposit
Curt, age 40, has purchased a property insurance policy to cover an international shipment of firearms.
The shipment is accidentally destroyed in transit, and during its investigation the insurer learns that the
firearms were stolen. Which of the following correctly explains why the insurer would refuse to cover
the loss? - correct Answers -The contract is unenforceable because it served an illegal purpose.
reason-Dealing in stolen merchandize is illegal; therefore, the insurance contract is unenforceable
because it was purchased to serve an illegal purpose.
When completing an insurance application, Dusty intentionally lied about his age in order to obtain a
lower rate. What is Dusty's lie technically considered? - correct Answers -a misrepresentation
reason- A false statement of a material fact is a misrepresentation.
Hazel's store has an automatic sprinkler system that will be activated by a fire. In exchange for a reduced
fire insurance premium, she signs a document stating that the automatic sprinkler system will always be
in operating condition. What is this statement? - correct Answers -a warranty-
reason-A warranty, which is stronger than a representation, guarantees that something is true and will
remain true.
1
,Olen buys insurance on the inventory in his warehouse, which includes a sizable quantity of watches
bearing the "Rolex" label, and Olen pays the insurance premium. After Olen reports a theft, the insurer's
investigation reveals that the watches it had agreed to insure were illegal counterfeits. Olen's contract
with the insurer is: - correct Answers -unenforceable because it was for an illegal purpose
reason- For a contracting party to be able to enforce the terms of the contract, the contract must be for
a legal purpose, and counterfeit merchandise is illegal.
With respect to requirements for a valid contract, a policyowner's payment of the policy premium is
called a(n): - correct Answers -consideration
reason-Consideration means something of value that both parties to a contract exchange. With an
insurance contract, the applicant's premium payment is the applicant's consideration.
Because the wording of a typical insurance policy is drafted by an insurance company and offered to
insurance buyers on a take-it-or-leave-it basis, insurance policies are considered: - correct Answers -
contracts of adhesion
reason- Most insurance contracts are contracts of adhesion because the policy is drafted by the insurer
and little if any negotiation is normally available with respect to the policy's wording.
When applying for a businessowners insurance policy, Brandy did not mention the hazardous and illegal
activity that goes on in the backroom of her shop because she realized no insurer that knew about it
would insure her business. What is Brandy's failure to disclose this activity considered? - correct
Answers -concealment
reason-The deliberate withholding of material facts is concealment.
The property insurance policy with a $500,000 limit that covers Logan's store is a contract of indemnity.
If Logan's store is partially damaged by a covered peril, what is Logan's insurer obligated to pay?
an amount that is related to the value of the loss, not to exceed $500,000
whatever amount is awarded by the court as damages
the full $500,000
nothing, because it is only a partial loss - correct Answers -an amount that is related to the value of the
loss, not to exceed $500,000
reason- When a covered loss occurs under a contract of indemnity, the benefit payable is related to the
amount of the loss.
2
, The fact that insurance policy language is written by an insurance company and is nonnegotiable makes
insurance policies: - correct Answers -contracts of adhesion
reason-Most insurance contracts are contracts of adhesion because the policy is drafted by the insurer
and little if any negotiation is normally available with respect to the policy's wording
If an insurance applicant submits an application to an insurer without a premium payment, the applicant
has: - correct Answers -Invited the insurer to make an offer to the applicant
reason-When an applicant submits an application without the first premium, the applicant is inviting the
insurer to make an offer.
An insurer that has a history of accepting premiums up to five days beyond their due date cannot deny a
claim for a loss occurring the day after a premium was due for which of the following reasons? - correct
Answers -waiver and estoppel
reason-Estoppel exists when a party cannot enforce a right that it has voluntarily waived by its past
conduct-in this case, repeatedly accepting a late premium with no coverage lapse.
Although the policyholder must pay premiums to keep an insurance policy in force, the policy is
considered a unilateral policy because: - correct Answers -only the insurer makes an enforceable
promise
reason-Insurance contracts are unilateral contracts in which only one party-the insurer-makes a promise
that can be enforced. Although the policyholder agrees to pay the premium, the policyholder is not
obligated to do so. Of course, if he or she stops paying the premium, the insurer will cancel the policy.
The typical property and casualty insurance policy contains a provision expressly prohibiting the
policyholder from assigning policy ownership to another party without the insurer's written consent
because the policy is a(n): - correct Answers -personal contract
reason-Because the property and casualty insurance policy is a personal contract, it cannot be
transferred to a third party without the insurer's consent.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance company,
which party is the offeror? - correct Answers -applicant
reason- In the typical insurance transaction, the applicant (offeror) makes the offer to the insurance
company (offeree) through a signed application plus a premium deposit. The beneficiary is not a party to
the contract.
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FLORIDA QUIZZES WITH ACTUAL ANSWERS |
LATEST UPDATE .
In the typical insurance sales transaction, the insurance company makes the initial offer to the insurance
applicant. Tor F - correct Answers -false- In the typical insurance transaction, the applicant is the offeror
who makes an offer to the insurance company (the offeree) through a signed application plus the initial
premium.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance company,
which party is the offeree? - correct Answers -Insurer- In the typical insurance transaction, the applicant
(offeror) makes the offer to the insurance company (offeree) through a signed application plus a
premium deposit
Curt, age 40, has purchased a property insurance policy to cover an international shipment of firearms.
The shipment is accidentally destroyed in transit, and during its investigation the insurer learns that the
firearms were stolen. Which of the following correctly explains why the insurer would refuse to cover
the loss? - correct Answers -The contract is unenforceable because it served an illegal purpose.
reason-Dealing in stolen merchandize is illegal; therefore, the insurance contract is unenforceable
because it was purchased to serve an illegal purpose.
When completing an insurance application, Dusty intentionally lied about his age in order to obtain a
lower rate. What is Dusty's lie technically considered? - correct Answers -a misrepresentation
reason- A false statement of a material fact is a misrepresentation.
Hazel's store has an automatic sprinkler system that will be activated by a fire. In exchange for a reduced
fire insurance premium, she signs a document stating that the automatic sprinkler system will always be
in operating condition. What is this statement? - correct Answers -a warranty-
reason-A warranty, which is stronger than a representation, guarantees that something is true and will
remain true.
1
,Olen buys insurance on the inventory in his warehouse, which includes a sizable quantity of watches
bearing the "Rolex" label, and Olen pays the insurance premium. After Olen reports a theft, the insurer's
investigation reveals that the watches it had agreed to insure were illegal counterfeits. Olen's contract
with the insurer is: - correct Answers -unenforceable because it was for an illegal purpose
reason- For a contracting party to be able to enforce the terms of the contract, the contract must be for
a legal purpose, and counterfeit merchandise is illegal.
With respect to requirements for a valid contract, a policyowner's payment of the policy premium is
called a(n): - correct Answers -consideration
reason-Consideration means something of value that both parties to a contract exchange. With an
insurance contract, the applicant's premium payment is the applicant's consideration.
Because the wording of a typical insurance policy is drafted by an insurance company and offered to
insurance buyers on a take-it-or-leave-it basis, insurance policies are considered: - correct Answers -
contracts of adhesion
reason- Most insurance contracts are contracts of adhesion because the policy is drafted by the insurer
and little if any negotiation is normally available with respect to the policy's wording.
When applying for a businessowners insurance policy, Brandy did not mention the hazardous and illegal
activity that goes on in the backroom of her shop because she realized no insurer that knew about it
would insure her business. What is Brandy's failure to disclose this activity considered? - correct
Answers -concealment
reason-The deliberate withholding of material facts is concealment.
The property insurance policy with a $500,000 limit that covers Logan's store is a contract of indemnity.
If Logan's store is partially damaged by a covered peril, what is Logan's insurer obligated to pay?
an amount that is related to the value of the loss, not to exceed $500,000
whatever amount is awarded by the court as damages
the full $500,000
nothing, because it is only a partial loss - correct Answers -an amount that is related to the value of the
loss, not to exceed $500,000
reason- When a covered loss occurs under a contract of indemnity, the benefit payable is related to the
amount of the loss.
2
, The fact that insurance policy language is written by an insurance company and is nonnegotiable makes
insurance policies: - correct Answers -contracts of adhesion
reason-Most insurance contracts are contracts of adhesion because the policy is drafted by the insurer
and little if any negotiation is normally available with respect to the policy's wording
If an insurance applicant submits an application to an insurer without a premium payment, the applicant
has: - correct Answers -Invited the insurer to make an offer to the applicant
reason-When an applicant submits an application without the first premium, the applicant is inviting the
insurer to make an offer.
An insurer that has a history of accepting premiums up to five days beyond their due date cannot deny a
claim for a loss occurring the day after a premium was due for which of the following reasons? - correct
Answers -waiver and estoppel
reason-Estoppel exists when a party cannot enforce a right that it has voluntarily waived by its past
conduct-in this case, repeatedly accepting a late premium with no coverage lapse.
Although the policyholder must pay premiums to keep an insurance policy in force, the policy is
considered a unilateral policy because: - correct Answers -only the insurer makes an enforceable
promise
reason-Insurance contracts are unilateral contracts in which only one party-the insurer-makes a promise
that can be enforced. Although the policyholder agrees to pay the premium, the policyholder is not
obligated to do so. Of course, if he or she stops paying the premium, the insurer will cancel the policy.
The typical property and casualty insurance policy contains a provision expressly prohibiting the
policyholder from assigning policy ownership to another party without the insurer's written consent
because the policy is a(n): - correct Answers -personal contract
reason-Because the property and casualty insurance policy is a personal contract, it cannot be
transferred to a third party without the insurer's consent.
In a standard insurance sales transaction involving an applicant, a producer, and an insurance company,
which party is the offeror? - correct Answers -applicant
reason- In the typical insurance transaction, the applicant (offeror) makes the offer to the insurance
company (offeree) through a signed application plus a premium deposit. The beneficiary is not a party to
the contract.
3
