Florida certified adjuster practice exam with Complete Solutions

Jane has $150,000 homeowners policy with a 3% percentage deductible. One night, In oven fire destroys her kitchen, causing $50,000 in damage. How much of the damage falls under Janes responsibility? - ANSWER-$4,500 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