Florida Claims Adjuster Exam questions
and answers
Severability - -Insurance applies separately to each insured as if
other insureds did not exist.
-Abandonment - -Property insurance policies usually contain a(n)
__________ clause, *stating the insured cannot dump damaged
property on the insurer and demand its full value.*
-Insurable Interest - -One wherein economic loss would be
suffered from an adverse happening to the subject.
-Liberalization - -States that if the insurer adopts a revision which
would broaden coverage without additional premium within some
period of time prior to the policy period or during the policy
period, the insured receives the benefit of such broadened
coverage..
-Doctrine of Proximate Cause - -States that when there is an
unbroken connection between an occurrence and damage that
grows out of the occurrence, then the resultant damage is all a
part of the occurrence.
-Actual Cash Value - -The Loss Settlement Valuation that
subtracts an allowance for depreciation
-Warranty - -A policy condition, either based on information in the
insured's application or inserted by the insurer
-Conditional Contract - -The Insurer's responsibility to pay for a
property loss may be conditioned on the insured having used
reasonable means to avoid the loss, to protect the property
against further loss, and to give the insurer proof of the loss is
defined as?
,-Under Mechanical Breakdown Coverage, *new cars are eligible
for service up to:* - -36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
-If financial responsibility doesn't exist at the time of an accident,
what happens? - -The legally valid claims of others must be
satisfied (10/20/10)
The owner and operator must provide certification of future
responsibility for future accidents
-As to required proof for future accidents by purchase of auto
liability insurance, the insurer must make a filing (Form SR-22)
certifying that coverage is in effect, and this certification must
remain on file for __________ years - -3
-The Business Automobile Policy includes all of the following
coverage forms except: - -The Trailer Interchange Coverage Form
-Personal Injury Protection, or PIP, has a __________ per person, per
accident limit. - -10,000
-Used to insure businesses engaged in selling, servicing,
repairing, parking or storing automobiles: - -Garage Coverage
Form
-The following examples are referred to as __________ liability
limits: 25/50/25 or 10/20/10. - -Split
10/20/10 =
10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
-Jeremy has a not at fault accident. If he has PIP with a $1,000
deductible, how much can he expect his PIP coverage to pay
toward his medical bills that total $3,000? - -$1,600
,3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
-Frank has a not-at-fault accident, he has basic PIP, no deductible
and Med pay of $5,000. How much will his Med Pay contribute to
medical bills of $15,000? - -$5,000
Medical Payment limits apply per person; Frank will receive full
amount towards medical bills.
-Which of the following is not one of the rating factors for a
Homeowner's Policy? - -Age & Gender of Insured
-On a Homeowner's Policy, covers items that are not permanently
attached to the dwelling. This is defined as: - -Other Structures
Examples include sheds, fences, pool houses, detached car ports,
etc.
-A lender has an insurable interest in a home and finds protection
in the: - -Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
-Which of the following forms is "all-risk" on the dwelling policy? -
-DP-3, or the Special Form
-When the basic liability limits provided by the policy are
insufficient for an insureds needs, two coverage forms are used to
provide the additional amounts of coverage:
A. Excess Liability
B. Umbrella
C. Both A & B
D. None of the Above - -Both A & B
-Which of the following is not covered under Coverage C, Personal
Property?
, A. A fire breaks out in the residence and an overnight guest loses
his clothes in the fire
B. A fish dies because he has been left alone for a week without
food
C. The insureds daughters tennis racket is stolen from her locker
D. The insureds suitcase and clothing, valued at $1,500, are
stolen from his hotel - -B. A fish dies because he has been left
alone for a week without food
Animals are listed as an "exclusion" under a Homeowner's policy.
-All of the following are eligible for a Homeowner's Policy, except?
A. An apartment tenant
B. A condominium owner
C. Four-family dwelling owner-occupant
D. A business condo owned by a local insurance company - -D. A
business condo owned by a local insurance company
Commercial property is not eligible for a Homeowner's policy.
-Which of the following are characteristics of Homeowner's
Insurance?
A. Protects against economic loss to residences and household
property and legal liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of
building
D. All of the Above - -D. All of the Above
Also included: personal, non-business risk, no more than 2
roomers/boarders, condominium unit owners and cooperative
apartment occupants
-Jeremy owns a home that is recently damaged due to a
hurricane. The repair estimate is averaged at $25,000 and Jeremy
decides to stay in a hotel because most of the damage is to his
and answers
Severability - -Insurance applies separately to each insured as if
other insureds did not exist.
-Abandonment - -Property insurance policies usually contain a(n)
__________ clause, *stating the insured cannot dump damaged
property on the insurer and demand its full value.*
-Insurable Interest - -One wherein economic loss would be
suffered from an adverse happening to the subject.
-Liberalization - -States that if the insurer adopts a revision which
would broaden coverage without additional premium within some
period of time prior to the policy period or during the policy
period, the insured receives the benefit of such broadened
coverage..
-Doctrine of Proximate Cause - -States that when there is an
unbroken connection between an occurrence and damage that
grows out of the occurrence, then the resultant damage is all a
part of the occurrence.
-Actual Cash Value - -The Loss Settlement Valuation that
subtracts an allowance for depreciation
-Warranty - -A policy condition, either based on information in the
insured's application or inserted by the insurer
-Conditional Contract - -The Insurer's responsibility to pay for a
property loss may be conditioned on the insured having used
reasonable means to avoid the loss, to protect the property
against further loss, and to give the insurer proof of the loss is
defined as?
,-Under Mechanical Breakdown Coverage, *new cars are eligible
for service up to:* - -36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
-If financial responsibility doesn't exist at the time of an accident,
what happens? - -The legally valid claims of others must be
satisfied (10/20/10)
The owner and operator must provide certification of future
responsibility for future accidents
-As to required proof for future accidents by purchase of auto
liability insurance, the insurer must make a filing (Form SR-22)
certifying that coverage is in effect, and this certification must
remain on file for __________ years - -3
-The Business Automobile Policy includes all of the following
coverage forms except: - -The Trailer Interchange Coverage Form
-Personal Injury Protection, or PIP, has a __________ per person, per
accident limit. - -10,000
-Used to insure businesses engaged in selling, servicing,
repairing, parking or storing automobiles: - -Garage Coverage
Form
-The following examples are referred to as __________ liability
limits: 25/50/25 or 10/20/10. - -Split
10/20/10 =
10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
-Jeremy has a not at fault accident. If he has PIP with a $1,000
deductible, how much can he expect his PIP coverage to pay
toward his medical bills that total $3,000? - -$1,600
,3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
-Frank has a not-at-fault accident, he has basic PIP, no deductible
and Med pay of $5,000. How much will his Med Pay contribute to
medical bills of $15,000? - -$5,000
Medical Payment limits apply per person; Frank will receive full
amount towards medical bills.
-Which of the following is not one of the rating factors for a
Homeowner's Policy? - -Age & Gender of Insured
-On a Homeowner's Policy, covers items that are not permanently
attached to the dwelling. This is defined as: - -Other Structures
Examples include sheds, fences, pool houses, detached car ports,
etc.
-A lender has an insurable interest in a home and finds protection
in the: - -Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
-Which of the following forms is "all-risk" on the dwelling policy? -
-DP-3, or the Special Form
-When the basic liability limits provided by the policy are
insufficient for an insureds needs, two coverage forms are used to
provide the additional amounts of coverage:
A. Excess Liability
B. Umbrella
C. Both A & B
D. None of the Above - -Both A & B
-Which of the following is not covered under Coverage C, Personal
Property?
, A. A fire breaks out in the residence and an overnight guest loses
his clothes in the fire
B. A fish dies because he has been left alone for a week without
food
C. The insureds daughters tennis racket is stolen from her locker
D. The insureds suitcase and clothing, valued at $1,500, are
stolen from his hotel - -B. A fish dies because he has been left
alone for a week without food
Animals are listed as an "exclusion" under a Homeowner's policy.
-All of the following are eligible for a Homeowner's Policy, except?
A. An apartment tenant
B. A condominium owner
C. Four-family dwelling owner-occupant
D. A business condo owned by a local insurance company - -D. A
business condo owned by a local insurance company
Commercial property is not eligible for a Homeowner's policy.
-Which of the following are characteristics of Homeowner's
Insurance?
A. Protects against economic loss to residences and household
property and legal liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of
building
D. All of the Above - -D. All of the Above
Also included: personal, non-business risk, no more than 2
roomers/boarders, condominium unit owners and cooperative
apartment occupants
-Jeremy owns a home that is recently damaged due to a
hurricane. The repair estimate is averaged at $25,000 and Jeremy
decides to stay in a hotel because most of the damage is to his
