ADJUSTERS License 6-20 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What is an Insurance Policy - CORRECT ANSWER - An Insurance Policy is a Contract
(agreement between 2 parties)
Insurance Policy in the state of Florida must be? - CORRECT ANSWER - Written in
order to constitute a policy
Legal Definition of Insurance - CORRECT ANSWER - Contract that undertakes to
indemnity, or make whole, or pay a certain amount in the event a covered loss occurs.
Consideration - CORRECT ANSWER - Value for an Insurance contract is the premium
paid by insured and the promise given by insurance company
Temporary Insurance is put into effect by BINDERS - CORRECT ANSWER - Binders
include all terms, conditions and exclusions contained in a policy and no notice of cancellation or
non renewal is required unless the binder has a term of more then 60 days
Binder for automobile insurance are the EXCEPTION - CORRECT ANSWER - 5days
notice is required to cancel binder
Property Insurance - CORRECT ANSWER - Payment made to the insured or others with
interest simular to insured (mortgage holder)
Liability Insurance - CORRECT ANSWER - Means a payment will be made to a 3rd party
injured of damaged by the insured. An Insured can NEVER recover damages from there own
Liability Policy
, All Property and Liability Insurance Contracts contain 4 fundamental parts: - CORRECT
ANSWER - 1.) Declaration: Contains info regarding the insured, premium, period of
coverage and liability.
2.) Insurance Agreement: defines the coverages contained within coverage.
3.) Exclusions: Eliminate coverage
4.) Conditions: Requirements that MUST be made Before payment will be made
1.) Property Adjuster receives notice of homeowners claim is Covered, Denied or being
investigated must be provided within? - CORRECT ANSWER - 30 days
2.) An insurer gives which of the following as Consideration for insurance policy? - CORRECT
ANSWER - A Promise
3.) Which of the following is not found on the Declaration page of a policy? - CORRECT
ANSWER - Conditions: Requirements that Must be made before payment will be made.
4.) Homeowners dog bites the mailman. Policy that pays the mailman is best described as? -
CORRECT ANSWER - Liability Policy
5.) Insurance Company wrote AUTO Insurance Binder for owner who said he had No prior
accidents. Immediately they find out this is NOT True. The company now wants to cancel cinder
asap. What is true? - CORRECT ANSWER - 5 days notice REQUIRED
6.) For Insurance to pay damages, an insurance interest must exist: - CORRECT
ANSWER - When the Lost takes place
7.) Speeding while driving is best described as a? - CORRECT ANSWER - HAZARD
8.) A covered loss is $60,000.
Policy A has limit of $50,000.
Policy B has a limit of $150,000.
ACTUAL Exam Questions and CORRECT
Answers
What is an Insurance Policy - CORRECT ANSWER - An Insurance Policy is a Contract
(agreement between 2 parties)
Insurance Policy in the state of Florida must be? - CORRECT ANSWER - Written in
order to constitute a policy
Legal Definition of Insurance - CORRECT ANSWER - Contract that undertakes to
indemnity, or make whole, or pay a certain amount in the event a covered loss occurs.
Consideration - CORRECT ANSWER - Value for an Insurance contract is the premium
paid by insured and the promise given by insurance company
Temporary Insurance is put into effect by BINDERS - CORRECT ANSWER - Binders
include all terms, conditions and exclusions contained in a policy and no notice of cancellation or
non renewal is required unless the binder has a term of more then 60 days
Binder for automobile insurance are the EXCEPTION - CORRECT ANSWER - 5days
notice is required to cancel binder
Property Insurance - CORRECT ANSWER - Payment made to the insured or others with
interest simular to insured (mortgage holder)
Liability Insurance - CORRECT ANSWER - Means a payment will be made to a 3rd party
injured of damaged by the insured. An Insured can NEVER recover damages from there own
Liability Policy
, All Property and Liability Insurance Contracts contain 4 fundamental parts: - CORRECT
ANSWER - 1.) Declaration: Contains info regarding the insured, premium, period of
coverage and liability.
2.) Insurance Agreement: defines the coverages contained within coverage.
3.) Exclusions: Eliminate coverage
4.) Conditions: Requirements that MUST be made Before payment will be made
1.) Property Adjuster receives notice of homeowners claim is Covered, Denied or being
investigated must be provided within? - CORRECT ANSWER - 30 days
2.) An insurer gives which of the following as Consideration for insurance policy? - CORRECT
ANSWER - A Promise
3.) Which of the following is not found on the Declaration page of a policy? - CORRECT
ANSWER - Conditions: Requirements that Must be made before payment will be made.
4.) Homeowners dog bites the mailman. Policy that pays the mailman is best described as? -
CORRECT ANSWER - Liability Policy
5.) Insurance Company wrote AUTO Insurance Binder for owner who said he had No prior
accidents. Immediately they find out this is NOT True. The company now wants to cancel cinder
asap. What is true? - CORRECT ANSWER - 5 days notice REQUIRED
6.) For Insurance to pay damages, an insurance interest must exist: - CORRECT
ANSWER - When the Lost takes place
7.) Speeding while driving is best described as a? - CORRECT ANSWER - HAZARD
8.) A covered loss is $60,000.
Policy A has limit of $50,000.
Policy B has a limit of $150,000.
