Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
Edward is a member of the Knights of Columbus, a religious group
dedicated to voluntary service to the benefit of society. He also
recently purchased a $100,000 life insurance policy from the
organization. This was possible because the Knights of Columbus is:
- - - correct answer ✅a fraternal benefit society
Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year,
and his insurer has done nothing about it. When Jason gets into an
accident and files a claim, which of the following is most likely to
happen? - - - correct answer ✅The insurer will pay the claim
because of the implied waiver they have made by not cancelling
Jason's policy the previous times he was late with his payments
Jared hopes to purchase a new insurance policy for his car, but he
has an extremely poor driving record. The insurance company
decides to issue Jared an insurance policy, but charges him a
premium much higher than the average driver. The insurance
company is practicing: - - - correct answer ✅risk reduction
Which of the following is NOT a characteristic of insurance
contracts? (aleatory, conditional, unilateral, universal) - - - correct
answer ✅universal
,Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
A few weeks ago Christopher's garage was destroyed by an out-of-
control motorist. Fortunately, the motorist had sufficient liability
insurance to cover the damages. However, the insurer insists that
Christopher's garage is worth far less than the appraisals he has
received from contractors. Christopher and the insurer have gone
back and forth in negotiations for weeks, making little headway.
Christopher decides it's time to: - - - correct answer ✅issue a
complaint against the policyholder
A reciprocal insurer is: - - - correct answer ✅an unincorporated
organization of subscribers that operates through an attorney-in-
fact to provide insurance benefits for its members.
Bob has been in the construction business a long time and is ready
to retire. He sells the company to his friend Scott and then lets the
insurer know that any claims against his policy should be paid to
Scott from now on. The insurer informs Bob that they cannot do
this due to which condition? - - - correct answer ✅assignment
Cindy and her insurer cannot reach an agreement for her property
claim, and have gone back and forth for weeks without coming
within $10,000 of each other. At this point, since both believe they
are offering a fair settlement, a third party is needed to help
facilitate the negotiation. Both parties still want to retain their
ability to "walk-away" if they cannot reach an agreement. What is
,Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
the next best step for Cindy and her insurer? - - - correct answer
✅mediation
How is the power to bind transferred to an adjuster? - - - correct
answer ✅it is transferred through a written contract
Which of the following statements best describes a part of the
appraisal process?
A. The claimant and the insurer each select an appraiser, and those
two select an umpire.
B. All parties must agree to the final amount in order for it to be
binding.
C. A neutral third party, called the appraiser, plays an advisory role
to help the disputing parties come to a settlement.
D. The opposing parties submit their evidence to the appraiser, who
makes a final and binding decision. - - - correct answer ✅A. The
claimant and the insurer each select an appraiser, and those two
select an umpire.
Bob's home was severely damaged by a thunderstorm and he
claims it will cost $74,000 to repair. His insurer has investigated the
claim, found the repairs could be done for $49,000, and has offered
, Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
Bob this amount of indemnification. Negotiation between Bob and
his insurer seems to be failing. Due to the unpredictability of the
result, which of the following options should be avoided by the
insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - - - correct answer ✅C. Litigation
In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - - - correct answer ✅B. The two appraisers
Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a fire and it will cost
$185,000 to rebuild it. Stacy's homeowners policy has a limit of
$178,000 and a $1,800 deductible. Typically, how much would
Adjuster Andy calculate Stacy's final settlement amount to be? - - -
Exam Questions And Answers
Edward is a member of the Knights of Columbus, a religious group
dedicated to voluntary service to the benefit of society. He also
recently purchased a $100,000 life insurance policy from the
organization. This was possible because the Knights of Columbus is:
- - - correct answer ✅a fraternal benefit society
Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year,
and his insurer has done nothing about it. When Jason gets into an
accident and files a claim, which of the following is most likely to
happen? - - - correct answer ✅The insurer will pay the claim
because of the implied waiver they have made by not cancelling
Jason's policy the previous times he was late with his payments
Jared hopes to purchase a new insurance policy for his car, but he
has an extremely poor driving record. The insurance company
decides to issue Jared an insurance policy, but charges him a
premium much higher than the average driver. The insurance
company is practicing: - - - correct answer ✅risk reduction
Which of the following is NOT a characteristic of insurance
contracts? (aleatory, conditional, unilateral, universal) - - - correct
answer ✅universal
,Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
A few weeks ago Christopher's garage was destroyed by an out-of-
control motorist. Fortunately, the motorist had sufficient liability
insurance to cover the damages. However, the insurer insists that
Christopher's garage is worth far less than the appraisals he has
received from contractors. Christopher and the insurer have gone
back and forth in negotiations for weeks, making little headway.
Christopher decides it's time to: - - - correct answer ✅issue a
complaint against the policyholder
A reciprocal insurer is: - - - correct answer ✅an unincorporated
organization of subscribers that operates through an attorney-in-
fact to provide insurance benefits for its members.
Bob has been in the construction business a long time and is ready
to retire. He sells the company to his friend Scott and then lets the
insurer know that any claims against his policy should be paid to
Scott from now on. The insurer informs Bob that they cannot do
this due to which condition? - - - correct answer ✅assignment
Cindy and her insurer cannot reach an agreement for her property
claim, and have gone back and forth for weeks without coming
within $10,000 of each other. At this point, since both believe they
are offering a fair settlement, a third party is needed to help
facilitate the negotiation. Both parties still want to retain their
ability to "walk-away" if they cannot reach an agreement. What is
,Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
the next best step for Cindy and her insurer? - - - correct answer
✅mediation
How is the power to bind transferred to an adjuster? - - - correct
answer ✅it is transferred through a written contract
Which of the following statements best describes a part of the
appraisal process?
A. The claimant and the insurer each select an appraiser, and those
two select an umpire.
B. All parties must agree to the final amount in order for it to be
binding.
C. A neutral third party, called the appraiser, plays an advisory role
to help the disputing parties come to a settlement.
D. The opposing parties submit their evidence to the appraiser, who
makes a final and binding decision. - - - correct answer ✅A. The
claimant and the insurer each select an appraiser, and those two
select an umpire.
Bob's home was severely damaged by a thunderstorm and he
claims it will cost $74,000 to repair. His insurer has investigated the
claim, found the repairs could be done for $49,000, and has offered
, Florida Certified Adjuster Pre-Licensing
Exam Questions And Answers
Bob this amount of indemnification. Negotiation between Bob and
his insurer seems to be failing. Due to the unpredictability of the
result, which of the following options should be avoided by the
insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
D. Arbitration - - - correct answer ✅C. Litigation
In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - - - correct answer ✅B. The two appraisers
Adjuster Andy is trying to determine a final settlement amount for
Stacy's claim. Stacy's house was destroyed in a fire and it will cost
$185,000 to rebuild it. Stacy's homeowners policy has a limit of
$178,000 and a $1,800 deductible. Typically, how much would
Adjuster Andy calculate Stacy's final settlement amount to be? - - -
