FLORIDA CERTIFIED ADJUSTER PRE-LICENSING
STUDY GUIDE WITH COMPLETE SOLUTION!!
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:
answers: 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?
answers: 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:
answers: risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory,
conditional, unilateral, universal)
answers: universal
,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:
answers: issue a complaint against the policyholder
A reciprocal insurer is:
answers: 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?
answers: 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 the next best
step for Cindy and her insurer?
answers: mediation
How is the power to bind transferred to an adjuster?
,answers: 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.
answers: 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 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
answers: C. Litigation
, In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster
answers: 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?
answers: $178,000 (because the cost of repairs is more than the policy limit, the
final settlement amount is the full policy limit ($178,000) and the deductible is
absorbed into the amount of the loss that exceeds the limit.
Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the
insurer and the claimant.
B. An insurance adjuster is an agent.
C. An insurance adjuster who settles claims on behalf of an insurer has the power
to bind that insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the
insurer through a written contract.
STUDY GUIDE WITH COMPLETE SOLUTION!!
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:
answers: 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?
answers: 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:
answers: risk reduction
Which of the following is NOT a characteristic of insurance contracts? (aleatory,
conditional, unilateral, universal)
answers: universal
,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:
answers: issue a complaint against the policyholder
A reciprocal insurer is:
answers: 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?
answers: 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 the next best
step for Cindy and her insurer?
answers: mediation
How is the power to bind transferred to an adjuster?
,answers: 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.
answers: 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 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
answers: C. Litigation
, In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster
answers: 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?
answers: $178,000 (because the cost of repairs is more than the policy limit, the
final settlement amount is the full policy limit ($178,000) and the deductible is
absorbed into the amount of the loss that exceeds the limit.
Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the
insurer and the claimant.
B. An insurance adjuster is an agent.
C. An insurance adjuster who settles claims on behalf of an insurer has the power
to bind that insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the
insurer through a written contract.
