FLORIDA PUBLIC ADJUSTER STATE
TEST EXAM SCRIPT COMPREHENSIVE
100 QUESTIONS WITH SOLUTIONS
GRADED A
⩥ Xavier owns a small insurance company. Recently the company want
to bid to ensure a new housing development in Omaha, Nebraska. His
company can handle any claims that arise, but if a series of tornadoes
were to tear through the area and destroy the entire development,
Xavier's company would suffer financially. Which type of insure could
help Xavier's company protect itself the most from this potential loss?
Answer: A re-insurer
⩥ Which of the following situations does NOT involve an instance of
"pure risk?" Answer: Loss of money invested in the stock market
⩥ Which of the following is an insurable risk? Answer: A football
stadium
⩥ A lightning strike causes one of those storage buildings on John's farm
to burn to the ground, added by the fuel tanks he kept in the building.
John knows he wasn't supposed to store any fuel in the building, so he
kept that piece of information to himself when he files a claim. John's
ensure made and I his claim based on his: Answer: Concealment
,⩥ Chain shed burned to the ground during a tornado, when the
Highwinds break a wall of the shed, knocking over a lantern inside.
What is the proximate cause of the loss? Answer: Wind
⩥ Kevin plays in a brass band using two rare antique Alexander tubas.
Since they are no longer produced, the value of the tubas is difficult to
determine. Which type of policy would best indemnify Kevin in this
event that his two boys were damaged, lost, or stolen? Answer: Agreed
value policy
⩥ Which settlement option is most often use when the claimant misses
work because of a bodily injury, but a settlement has not been reached?
Answer: Advance payment settlement
⩥ Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a house fire and it will cost
$185,000 to rebuild it. Stacy's homeowner policy has a limit of $178,000
and $1800 deductible. Typically, how much would adjuster Andy
calculate Stacy's final settlement amount to be Answer: $178,000
⩥ Stephanie is in the process of addressing George's auto claim.
Currently she is interviewing Shana, who witnessed George's accident
and stopped to help. In what stage of the claim process is Stephanie
currently working? Answer: Investigation
,⩥ If a claimant has a history of similar claims, that could mean: Answer:
It is important to investigate for fraud
⩥ If an insurer is unwilling to pay what the claimant is asking, the
adjuster must: Answer: Negotiate a settlement
⩥ An insurance adjuster acts as a fiduciary agent for her employer.
Which of the following statements is FALSE about the adjuster's role as
a fiduciary agent? Answer: The adjuster may not give the claimant
materials showing how he came up with the settlement amount
⩥ A staff adjuster is a: Answer: Salaried employee working for only one
insurer
⩥ Marlene has been living in her $120,000 home for 31 years. Because
she has paid off the mortgage, she decides to save some money on her
monthly insurance premiums by reducing her homeowners coverage to
$40,000. After a severe hail storm totals her roof, her adjuster estimates
the damage at $12,000. Assuming the insure imposes the standard
coinsurance penalty, and ignoring the deductible, how much will
Marlene receive in the settlement amount? Answer: $5,000
⩥ Craig has an HO-3 policy covering his primary residence with a
Coverage A limit of $250,000, Coverage B limit of $25,000, and a
Coverage C limit of $150,000. Craig also has a cabin on the lake, which
was burglarized. The thieves stole much of the cabin's contents, for a
, total loss of $18,500. Ignoring any deductibles, how much will Craig's
HO-3 policy pay for this claim? Answer: $15,000
⩥ Stan built a porch for his home three years ago at a cost of $10,000.
The value of the porch has depreciated by $6,000, and it would cost
$12,000 to replace it today. After Stan's porch burnt down during a BBQ
today, how much would a Standard Fire Policy indemnify Stan for his
porch? Answer: $6,000
⩥ Which of the following statements is NOT true of endorsements?
Answer: And endorsed policy will always provide more coverage than
an unendorsed policy
⩥ In a dwelling policy, how much will the Fire Department Service
charge coverage pay? Answer: Up to $500 if the fire department charges
for responding to a covered peril
⩥ Bill's new home is in the final stages of construction, and he has
purchased an HO-2 policy to ensure his financial interest in the property.
This morning, Bill's contractor calls to tell him that an electrical fire has
destroyed his new kitchen, and all of the crown molding that was
supposed to be installed today has been stolen. It will be $15,000 to
rebuild the kitchen and another $4,200 to replace the trim. How will
Bill's ensure respond when he files a claim? Answer: His insurer will
pay $15,000 for a build the kitchen and nothing for the stolen trim
TEST EXAM SCRIPT COMPREHENSIVE
100 QUESTIONS WITH SOLUTIONS
GRADED A
⩥ Xavier owns a small insurance company. Recently the company want
to bid to ensure a new housing development in Omaha, Nebraska. His
company can handle any claims that arise, but if a series of tornadoes
were to tear through the area and destroy the entire development,
Xavier's company would suffer financially. Which type of insure could
help Xavier's company protect itself the most from this potential loss?
Answer: A re-insurer
⩥ Which of the following situations does NOT involve an instance of
"pure risk?" Answer: Loss of money invested in the stock market
⩥ Which of the following is an insurable risk? Answer: A football
stadium
⩥ A lightning strike causes one of those storage buildings on John's farm
to burn to the ground, added by the fuel tanks he kept in the building.
John knows he wasn't supposed to store any fuel in the building, so he
kept that piece of information to himself when he files a claim. John's
ensure made and I his claim based on his: Answer: Concealment
,⩥ Chain shed burned to the ground during a tornado, when the
Highwinds break a wall of the shed, knocking over a lantern inside.
What is the proximate cause of the loss? Answer: Wind
⩥ Kevin plays in a brass band using two rare antique Alexander tubas.
Since they are no longer produced, the value of the tubas is difficult to
determine. Which type of policy would best indemnify Kevin in this
event that his two boys were damaged, lost, or stolen? Answer: Agreed
value policy
⩥ Which settlement option is most often use when the claimant misses
work because of a bodily injury, but a settlement has not been reached?
Answer: Advance payment settlement
⩥ Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a house fire and it will cost
$185,000 to rebuild it. Stacy's homeowner policy has a limit of $178,000
and $1800 deductible. Typically, how much would adjuster Andy
calculate Stacy's final settlement amount to be Answer: $178,000
⩥ Stephanie is in the process of addressing George's auto claim.
Currently she is interviewing Shana, who witnessed George's accident
and stopped to help. In what stage of the claim process is Stephanie
currently working? Answer: Investigation
,⩥ If a claimant has a history of similar claims, that could mean: Answer:
It is important to investigate for fraud
⩥ If an insurer is unwilling to pay what the claimant is asking, the
adjuster must: Answer: Negotiate a settlement
⩥ An insurance adjuster acts as a fiduciary agent for her employer.
Which of the following statements is FALSE about the adjuster's role as
a fiduciary agent? Answer: The adjuster may not give the claimant
materials showing how he came up with the settlement amount
⩥ A staff adjuster is a: Answer: Salaried employee working for only one
insurer
⩥ Marlene has been living in her $120,000 home for 31 years. Because
she has paid off the mortgage, she decides to save some money on her
monthly insurance premiums by reducing her homeowners coverage to
$40,000. After a severe hail storm totals her roof, her adjuster estimates
the damage at $12,000. Assuming the insure imposes the standard
coinsurance penalty, and ignoring the deductible, how much will
Marlene receive in the settlement amount? Answer: $5,000
⩥ Craig has an HO-3 policy covering his primary residence with a
Coverage A limit of $250,000, Coverage B limit of $25,000, and a
Coverage C limit of $150,000. Craig also has a cabin on the lake, which
was burglarized. The thieves stole much of the cabin's contents, for a
, total loss of $18,500. Ignoring any deductibles, how much will Craig's
HO-3 policy pay for this claim? Answer: $15,000
⩥ Stan built a porch for his home three years ago at a cost of $10,000.
The value of the porch has depreciated by $6,000, and it would cost
$12,000 to replace it today. After Stan's porch burnt down during a BBQ
today, how much would a Standard Fire Policy indemnify Stan for his
porch? Answer: $6,000
⩥ Which of the following statements is NOT true of endorsements?
Answer: And endorsed policy will always provide more coverage than
an unendorsed policy
⩥ In a dwelling policy, how much will the Fire Department Service
charge coverage pay? Answer: Up to $500 if the fire department charges
for responding to a covered peril
⩥ Bill's new home is in the final stages of construction, and he has
purchased an HO-2 policy to ensure his financial interest in the property.
This morning, Bill's contractor calls to tell him that an electrical fire has
destroyed his new kitchen, and all of the crown molding that was
supposed to be installed today has been stolen. It will be $15,000 to
rebuild the kitchen and another $4,200 to replace the trim. How will
Bill's ensure respond when he files a claim? Answer: His insurer will
pay $15,000 for a build the kitchen and nothing for the stolen trim
