Claims Adjuster

Florida Public Claims Adjuster State Test 2023 Questions and Answers (Verified Answers) Florida No-Fault Tort Exemption Those who comply with the law are granted limited immunity from suits of others through PIP coverage. 4 Exceptions to Tort Exemption(Threshold of No-Fault) 1. Significant and Permanent loss of bodily function. 2.Permanent injury other than scarring and disfigurement. 3.Significant and Permanent scarring or disfigurement. 4.Death What does NFIP stand for? National Flo...

What is the primary difference between a staff adjuster and an independent adjuster? Correct Answer: A staff adjuster works for an insurance company and an independent adjuster works independently for themselves or for adjusting firms who represent many clients. A couple has insured their home for $150,000. A fire ensues and guts their home, resulting in a total loss. An appraisal of the home prior to loss results in a value of $120,000, yet the adjuster is required by law to pay the couple ...

PERILS Correct Answer: A CAUSE OF PROPERTY LOSSES UNDER AN INSURANCE CONTRACT EX: WINDSTORM, HURRICANE, EXPLOSION, COLLAPSE OF BUILDING, VANDALISM, ACCIDENTAL DISCHARGE, AND THEFT LAW OF LARGE NUMBERS Correct Answer: A FUNDAMENTAL CONCEPT IN STATISTICS AND PROBABILITY THAT DESCRIBES HOW THE AVERAGE OF A RANDOMLY SELECTED LARGE SAMPLE FROM A POPULATION. IT BASICALLY RELIES ON THE PRINCIPLE THAT THE LARGER THE POOL, THE MORE PREDICTABLE THE AMOUNT OF LOSSES WILL BE IN A GIVEN PERIOD PRINCI...

Accumulated Depreciation Correct Answer: The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used) Actual Cash Value (ACV) Correct Answer: A valuation method used by insurers to reflect an item's current market value right before being damaged or destroyed. Formula: (Replacement cost - Accumulated Depreciation) Adhesion Correct Answer: One of the characteristics of an insurance contract. Means that one party (the insurer) sets t...

Which kind of losses are covered under a standard fire policy? Correct Answer: Direct All fires are not covered by the Standard Fire policies, only those that: Correct Answer: are hostile and have a flame or glow At what time does a fire policy go into affect? Correct Answer: 12:01am standard time at the location of the insured's property A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000 worth of damage. What is the maximum amount the ins...

All of the following describe insurable interest EXCEPT: • It must exist at the time of the loss • It must exist for insurance to respond • Shows a similarity between insurance and wagering • The insured would suffer an economic loss Correct Answer: • Shows a similarity between insurance and wagering An Insurance Policy is a contract with all the following characteristics, EXCEPT: • It is a personal contract • parties are of unequal power with ambiguities or unclear worki...

An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of Correct Answer: The insured and insurer An insurer gives which of the following as Consideration for an insurance policy? Correct Answer: A Promise The interest of the insured and all other persons in the property involved in a claim is found in Correct Answer: A Proof of Loss An insured rear-ends another driver's vehicle. The auto policy that pays damages to repair the damaged vehicle is a ______...

Actual Cash Value (ACV) Correct Answer: Cost to replace property with new property of like kind and quality less depreciation. Combined Single Limit Correct Answer: One limit per occurrence is what we pay up to Split limit Correct Answer: What we pay up to per person and per occurrence Deductible Correct Answer: What the customer will have to pay; we cover everything else Declarations Page (Dec Page) Correct Answer: The basic information about a policy: Who - names of insurer a...

What is an eligible building for flood insurance? Correct Answer: A structure with 2 or more outside rigid walls and a fully secure roof, built on a permanent site, with 50% or more of the value above ground level and located within an eligible community What is Builders Risk Coverage? Correct Answer: Covers buildings in the course of completion. Proper coverage is 100% of expected completed value Do all Homeowners policies contain Coverage A? Correct Answer: No, HO-4 (Renters personal ...

Accumulated Depreciation Correct Answer: The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used) Actual Cash Value (ACV) Correct Answer: A valuation method used by insurers to reflect an item's current market value right before being damaged or destroyed. Formula: (Replacement cost - Accumulated Depreciation) Adhesion Correct Answer: One of the characteristics of an insurance contract. Means that one party (the insurer) sets t...

What is insurance? Correct Answer: protection against financial loss what is a premium Correct Answer: a scheduled amount to be paid for an insurance policy. What are premiums used for Correct Answer: premiums are collected into a "pool" or "reserve to pay out claimants when needed. how can insurance companies afford to pay for an individuals catastrophic loss? Correct Answer: the insurer collects premiums from all policy holders and uses them to pay out the claims of a few. w...

Those who are eligible for coverage under the Florida Automobile Joint Underwriting Association are? Correct Answer: Military Personnel A non-resident owning an automobile in Florida A non-resident subject to Florida no-fault law A forcible entry into locked premises and the carrying away of the property of others is a definition of: Correct Answer: Burglary The inland marine coverage form that covers clothing, cameras and other portable property worn and carried by tourists and trave...

Which of the following is NOT one of the four critical elements of a contract? (A) A mutual understanding and agreement with the terms of the contract. (B) Written evidence of the agreement and its terms. (C)A legal purpose. (D)Consideration, consisting of money or a promise of performance. Correct Answer: (B) Written evidence of the agreement and its terms. Assume that five years ago a couple insured their home for [its then appraised value of] $60,000. Two weeks ago they had a ...

The insurer and insured agree to a specific value of insured item Correct Answer: Agreed Value Policies Someone who has care, custody or control of another's property Correct Answer: Bailee Claim filed by policy holder against his _ Correct Answer: First Party Claim When a person who entrusts another with an object and it results in injury to someone can be held liable for the injury to someone. Can be held liable for the injury i.e. Firearm or DWI Correct Answer: Negligent Entrust...

Florida No-Fault Tort Exemption Correct Answer: Those who comply with the law are granted limited immunity from suits of others through PIP coverage. 4 Exceptions to Tort Exemption(Threshold of No-Fault) Correct Answer: 1. Significant and Permanent loss of bodily function. 2.Permanent injury other than scarring and disfigurement. 3.Significant and Permanent scarring or disfigurement. 4.Death What does NFIP stand for? Correct Answer: National Flood Insurance Program Form SR-22 Corr...

A claim in the property/casualty industry Is defined as: Correct Answer: an assertion of an alleged legal right against a person, entity, company or insurer that carries with it a demand for money as compensation for injuries or damages when you purchase insurance, you are buying: Correct Answer: peace of mind that if an insured event does occur, that the insurance company will keep its promise and provide the financial protection that you purchased in today's society, the most importan...

Peril Correct Answer: Something that causes a loss. Hazard Correct Answer: Something that increases the probability that a loss will occur. Warranty Correct Answer: A policy condition, either based on information in the insureds application or inserted by the insurer. It is a guarantee of a fact. Misrepresentation Correct Answer: An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy. Concealment Correct Answer: Th...

Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - D. All listed interests Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one payment is made by the insurer and it is up to the additional interests on working out thei...