6.20 All Lines Adjuster- Florida- Review
UPDATED ACTUAL Exam Questions and
CORRECT Answers
The deductible - CORRECT ANSWER - The dollar amount that the insured pays before
the insurer is required to pay the remainder of the loss is known as?
Replacement cost - CORRECT ANSWER - Which loss settlement provides new for old?
the claims adjuster's role in the insurance industry includes - CORRECT ANSWER - Give
appropriate legal advice and write binding contracts
following are examples of a peril - CORRECT ANSWER - Lighting, Explosion and Fire
The abandonment clause - CORRECT ANSWER - The clause that prohibits the insured
from dumping damaged property on the insurance company and demanding to be paid in full is?
Liberalization - CORRECT ANSWER - When a policy change results in broadened
coverage with no additional premium, the insured automatically receives the benefit under the
principle of?
Risk - CORRECT ANSWER - The chance of financial loss is known as?
Percentage - CORRECT ANSWER - Hurricane insurance in coastal areas in Florida is
written subject to which of the following deductibles?
Severability - CORRECT ANSWER - Insurance may apply separately to each insured, as
if the other insureds did not exist. This is known as the doctrine of?
,The principle of proximate cause - CORRECT ANSWER - When there is an unbroken
connection between an occurrence and the damage that arises from the occurrence, and all the
resulting damage happened on account of that occurrence, this is known as?
characteristics of a contract - CORRECT ANSWER - Consideration must be given to at
least one party
Primary - CORRECT ANSWER - When two or more policies apply to the same loss, the
one that pays first is called?
Mortgagee Clause - CORRECT ANSWER - The clause that protects the lender in a real
property policy is the?
Indemnity - CORRECT ANSWER - The concept that one should not profit from the
payment provided by an insurance policy is known as?
Property or first-party insurance - CORRECT ANSWER - Payment the insurance
company makes directly to the insured is?
Written - CORRECT ANSWER - To be considered an insurance contract, a policy must
be?
Subrogation - CORRECT ANSWER - When the insured transfers his/her rights to collect
for damages to the insurer, it is known as?
The insured - CORRECT ANSWER - If an insurance policy is unclear or ambiguous, in
whose favor does the policy respond?
Insurable interest - CORRECT ANSWER - A partial owner of a building cannot receive
full value for the building in the event of a loss because of?
,Comparative negligence - CORRECT ANSWER - Reduces the insured's damages by the
degree of negligence
the following are part of an insurance policy - CORRECT ANSWER - Exclusions,
Declarations and Endorsementd
ACV - CORRECT ANSWER - replacement cost minus depreciation
The insured's house is totally destroyed in a fire. The house is insured for $200,000. The adjuster
who investigates the claims determines the ACV of the home is $185,000. - CORRECT
ANSWER - The Florida Valued Policy Law requires the insurer to pay $200,000
describe a franchise deductible - CORRECT ANSWER - No payment is made until the
loss equals or exceeds the amount of the deductible and then the loss is paid in full
All of the following are characteristics of an insurance contract EXCEPT? Personal, Private,
Conditional, Adhesion? - CORRECT ANSWER - Private
If a claimant is represented by an attorney, the adjuster should? - CORRECT ANSWER -
Only meet with the client when the attorney is present
Adjusters should advise claimants on? - CORRECT ANSWER - claims information
An adjuster is required to notify a claimant when a claim is denied. The notification must be? -
CORRECT ANSWER - Written
The term ethics refers to? - CORRECT ANSWER - service to others, personal respect and
proper mode of conduct
When an adjuster deals with a claimant who is not a policyholder, this claim is known as an? -
CORRECT ANSWER - third party claim
, The successful adjuster/negotiator should understand that communication includes all of the
following EXCEPT?
Select one:
A. Verbal and non-verbal messages
B. Questioning
C. Listening
D. Decision-making - CORRECT ANSWER - Decision-making
Which of the following is not a duty of the claims adjuster?
Select one:
A. Investigating
B. Evaluating
C. Negotiating
D. Counseling - CORRECT ANSWER - Counseling
The adjuster's duty to the insurer is best described as?
Select one:
A. Friendly
B. Factual
C. Fun
D. Fiduciary - CORRECT ANSWER - Fiduciary
Errors and Omissions claims are a result of?
Select one:
A. unethical behavior
B. lack of knowledge or information
C. Both unethical behavior and lack of knowledge or information are correct
UPDATED ACTUAL Exam Questions and
CORRECT Answers
The deductible - CORRECT ANSWER - The dollar amount that the insured pays before
the insurer is required to pay the remainder of the loss is known as?
Replacement cost - CORRECT ANSWER - Which loss settlement provides new for old?
the claims adjuster's role in the insurance industry includes - CORRECT ANSWER - Give
appropriate legal advice and write binding contracts
following are examples of a peril - CORRECT ANSWER - Lighting, Explosion and Fire
The abandonment clause - CORRECT ANSWER - The clause that prohibits the insured
from dumping damaged property on the insurance company and demanding to be paid in full is?
Liberalization - CORRECT ANSWER - When a policy change results in broadened
coverage with no additional premium, the insured automatically receives the benefit under the
principle of?
Risk - CORRECT ANSWER - The chance of financial loss is known as?
Percentage - CORRECT ANSWER - Hurricane insurance in coastal areas in Florida is
written subject to which of the following deductibles?
Severability - CORRECT ANSWER - Insurance may apply separately to each insured, as
if the other insureds did not exist. This is known as the doctrine of?
,The principle of proximate cause - CORRECT ANSWER - When there is an unbroken
connection between an occurrence and the damage that arises from the occurrence, and all the
resulting damage happened on account of that occurrence, this is known as?
characteristics of a contract - CORRECT ANSWER - Consideration must be given to at
least one party
Primary - CORRECT ANSWER - When two or more policies apply to the same loss, the
one that pays first is called?
Mortgagee Clause - CORRECT ANSWER - The clause that protects the lender in a real
property policy is the?
Indemnity - CORRECT ANSWER - The concept that one should not profit from the
payment provided by an insurance policy is known as?
Property or first-party insurance - CORRECT ANSWER - Payment the insurance
company makes directly to the insured is?
Written - CORRECT ANSWER - To be considered an insurance contract, a policy must
be?
Subrogation - CORRECT ANSWER - When the insured transfers his/her rights to collect
for damages to the insurer, it is known as?
The insured - CORRECT ANSWER - If an insurance policy is unclear or ambiguous, in
whose favor does the policy respond?
Insurable interest - CORRECT ANSWER - A partial owner of a building cannot receive
full value for the building in the event of a loss because of?
,Comparative negligence - CORRECT ANSWER - Reduces the insured's damages by the
degree of negligence
the following are part of an insurance policy - CORRECT ANSWER - Exclusions,
Declarations and Endorsementd
ACV - CORRECT ANSWER - replacement cost minus depreciation
The insured's house is totally destroyed in a fire. The house is insured for $200,000. The adjuster
who investigates the claims determines the ACV of the home is $185,000. - CORRECT
ANSWER - The Florida Valued Policy Law requires the insurer to pay $200,000
describe a franchise deductible - CORRECT ANSWER - No payment is made until the
loss equals or exceeds the amount of the deductible and then the loss is paid in full
All of the following are characteristics of an insurance contract EXCEPT? Personal, Private,
Conditional, Adhesion? - CORRECT ANSWER - Private
If a claimant is represented by an attorney, the adjuster should? - CORRECT ANSWER -
Only meet with the client when the attorney is present
Adjusters should advise claimants on? - CORRECT ANSWER - claims information
An adjuster is required to notify a claimant when a claim is denied. The notification must be? -
CORRECT ANSWER - Written
The term ethics refers to? - CORRECT ANSWER - service to others, personal respect and
proper mode of conduct
When an adjuster deals with a claimant who is not a policyholder, this claim is known as an? -
CORRECT ANSWER - third party claim
, The successful adjuster/negotiator should understand that communication includes all of the
following EXCEPT?
Select one:
A. Verbal and non-verbal messages
B. Questioning
C. Listening
D. Decision-making - CORRECT ANSWER - Decision-making
Which of the following is not a duty of the claims adjuster?
Select one:
A. Investigating
B. Evaluating
C. Negotiating
D. Counseling - CORRECT ANSWER - Counseling
The adjuster's duty to the insurer is best described as?
Select one:
A. Friendly
B. Factual
C. Fun
D. Fiduciary - CORRECT ANSWER - Fiduciary
Errors and Omissions claims are a result of?
Select one:
A. unethical behavior
B. lack of knowledge or information
C. Both unethical behavior and lack of knowledge or information are correct
