Florida Claims Adjuster Exam With
Correct Solutions
This optional provision states that if the insured becomes totally disabled, premiums are waived but the
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coverage remains in force:
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A. Waiver of Subrogation
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B. Waiver of Premium
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C. Waiver of Value
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D. None of the AboveCORRECT ANSWERS✔✔B. Waiver of Premium
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"premiums are waived" j j
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional
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interests on his homeowner policy. The insurance company will make a payment to:
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A. The first mortgagee, ABC
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B. The Insured
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C. Jointly to ABC and XYZ
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,D. All listed interestsCORRECT ANSWERS✔✔D. All listed interests
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Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one
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payment is made by the insurer and it is up to the additional interests on working out their share.
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Insurance applies *separately* to each insured as if other insureds did not exist. This is defined as:
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A. Severability
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B. Conditional
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C. Warranty
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D. None of the aboveCORRECT ANSWERS✔✔A. Severability
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Property insurance policies usually contain a(n) __________ clause, stating the insured cannot *dump
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damaged property* on the insurer and demand its full value:
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A. Pro Rata
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B. Abandonment
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C. Liberalization
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D. All of the aboveCORRECT ANSWERS✔✔B. Abandonment
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A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject:
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A. Conditional Contract
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B. Personal Contract
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C. Economic Contract
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D. Insurable InterestCORRECT ANSWERS✔✔D. Insurable Interest
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,States that if the insurer adopts a revision which would *broaden* coverage without additional premium
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within some period of time prior to the policy period or during the policy period, the insured receives the
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benefit of such *broadened* coverage.
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A. Cancellation Clause
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B. Policy Period
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C. Pro Rata
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D. LiberalizationCORRECT ANSWERS✔✔D. Liberalization
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The time frame is typically 60 days.
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The __________ states that when there is an unbroken connection between an occurrence and damage that
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*grows* out of the occurrence, then the resultant damage is all a part of the occurrence.
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A. Doctrine of Proximate Cause
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B. Doctrine of Perils & Hazards
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C. Insurance Policy Handbook
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D. Doctrine of Property InsuranceCORRECT ANSWERS✔✔A. Doctrine of Proximate Cause
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For example, if a property insurance policy covers the peril of fire but further damage is caused by smoke,
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water used to extinguish, and the process of moving property away - fire is considered to be the *proximate
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cause* of all of the damage.
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The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
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A. Actual Cash Value
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B. Replacement Cost
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, C. "Old for New"
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D. None of the AboveCORRECT ANSWERS✔✔A. Actual Cash Value
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*A policy condition,* either based on information in the insured's application or inserted by the insurer, is
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defined as:
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A. Warranty
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B. Misrepresentation
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C. Concealment
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D. None of the AboveCORRECT ANSWERS✔✔A. Warranty
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The following are basic characteristics of a property or liability insurance contract, except:
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A. Personal Contract
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B. Conditional Contract
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C. Loss of Settlement Contract
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D. Contract of AdhesionCORRECT ANSWERS✔✔C. Loss of Settlement Contract
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The Insurer's responsibility to pay for a property loss *may be conditioned* on the insured having used
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reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof
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of the loss is defined as?
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A. Conditional Contract
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B. Adhesion Contract
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C. Indemnity Contract
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D. All of the AboveCORRECT ANSWERS✔✔A. Conditional Contract
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Correct Solutions
This optional provision states that if the insured becomes totally disabled, premiums are waived but the
j j j j j j j j j j j j j j j
coverage remains in force:
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A. Waiver of Subrogation
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B. Waiver of Premium
j j j
C. Waiver of Value
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D. None of the AboveCORRECT ANSWERS✔✔B. Waiver of Premium
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"premiums are waived" j j
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional
j j j j j j j j j j j j j j j j j j
interests on his homeowner policy. The insurance company will make a payment to:
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A. The first mortgagee, ABC
j j j j
B. The Insured
j j
C. Jointly to ABC and XYZ
j j j j j
,D. All listed interestsCORRECT ANSWERS✔✔D. All listed interests
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Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one
j j j j j j j j j j j j j j j j j j j
payment is made by the insurer and it is up to the additional interests on working out their share.
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Insurance applies *separately* to each insured as if other insureds did not exist. This is defined as:
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A. Severability
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B. Conditional
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C. Warranty
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D. None of the aboveCORRECT ANSWERS✔✔A. Severability
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Property insurance policies usually contain a(n) __________ clause, stating the insured cannot *dump
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damaged property* on the insurer and demand its full value:
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A. Pro Rata
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B. Abandonment
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C. Liberalization
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D. All of the aboveCORRECT ANSWERS✔✔B. Abandonment
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A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject:
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A. Conditional Contract
j j
B. Personal Contract
j j
C. Economic Contract
j j
D. Insurable InterestCORRECT ANSWERS✔✔D. Insurable Interest
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,States that if the insurer adopts a revision which would *broaden* coverage without additional premium
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within some period of time prior to the policy period or during the policy period, the insured receives the
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benefit of such *broadened* coverage.
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A. Cancellation Clause
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B. Policy Period
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C. Pro Rata
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D. LiberalizationCORRECT ANSWERS✔✔D. Liberalization
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The time frame is typically 60 days.
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The __________ states that when there is an unbroken connection between an occurrence and damage that
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*grows* out of the occurrence, then the resultant damage is all a part of the occurrence.
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A. Doctrine of Proximate Cause
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B. Doctrine of Perils & Hazards
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C. Insurance Policy Handbook
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D. Doctrine of Property InsuranceCORRECT ANSWERS✔✔A. Doctrine of Proximate Cause
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For example, if a property insurance policy covers the peril of fire but further damage is caused by smoke,
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water used to extinguish, and the process of moving property away - fire is considered to be the *proximate
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cause* of all of the damage.
j j j j j j
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
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A. Actual Cash Value
j j j
B. Replacement Cost
j j
, C. "Old for New"
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D. None of the AboveCORRECT ANSWERS✔✔A. Actual Cash Value
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*A policy condition,* either based on information in the insured's application or inserted by the insurer, is
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defined as:
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A. Warranty
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B. Misrepresentation
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C. Concealment
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D. None of the AboveCORRECT ANSWERS✔✔A. Warranty
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The following are basic characteristics of a property or liability insurance contract, except:
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A. Personal Contract
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B. Conditional Contract
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C. Loss of Settlement Contract
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D. Contract of AdhesionCORRECT ANSWERS✔✔C. Loss of Settlement Contract
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The Insurer's responsibility to pay for a property loss *may be conditioned* on the insured having used
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reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof
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of the loss is defined as?
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A. Conditional Contract
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B. Adhesion Contract
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C. Indemnity Contract
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D. All of the AboveCORRECT ANSWERS✔✔A. Conditional Contract
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