An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of....
A. The Insured
B. The Insurer
C. The insured and insurer
D. The Law
C. The insured and insurer
An insurer gives which of the following as Consideration for an insurance policy?
A. A Promise
B. A Premium
C. Value
D. A Binder
A. A Promise
The interest of the insured and all other persons in the property involved in a claim is found in.....
A. The Policy
B. A Proof of Loss
C. The Declarations
D. The Insuring Agreement
B. 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.....
A. Property policy
B. Liability policy
C. Property and Liability policy
D. Collision policy
B. Liability policy
Your insurance company wrote an auto insurance binder for an owner who said that he did not have any prior accidents. Immediately thereafter it was discovered that he did not tell the truth. The company now wants to cancel the binder as quickly as possibl
D. 5 day notice required
For insurance to pay damages, an insurable interest must exist:
A. When the property is purchased
B. When the claim is made
C. When the loss takes place
D. When the proof of loss is submitted
C. When the loss takes place
Texting while driving is best described as a:
A. Peril
B. Hazard
C. Tort
D. All the above
B. Hazard
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of $200,000. Both policies are pro-rata policies. How much will policy B pay for this loss?
A. $90,000
B. $60,000
C. $300,000
D. -0- (policy A has sufficient fund to pay the
B, $60,000
I sold my home yesterday, signed a deed and transferred title. Last night there was a house fire. I had not yet cancelled my homeowner's insurance. The purchaser also had a homeowner's policy. Which policy should pay to pay the claim?
A. Purchaser's polic
A. Purchaser's policy
Giving prompt notice of loss is best described as a policy:
A. Condition
B. Agreement
C. Proof of loss
D. Obligation
A. Condition
If there is a total loss by an insured peril to a FL building, the insurer must pay:
A. All claims
B. Replacement cost
C. Actual Cash Value
D. Policy limits
D. Policy limits
A Loss Payable Clause refers to:
A. Lender interest in real property
B. Lender interest in personal property
C. Lender interest in real and personal property
D. Loss settlement valuations
B. Lender interest in personal property
My coin collection was appraised and my insurance company specifically insured the valued of that collection. That is an example of:
A. The valued policy law
B. A valued policy
C. Appraisal
D. Liability insurance
B. A valued policy
An insurance contract is based on the principle of:
A. Conditions
B. Severability
C. Utmost good faith
D. Proximate cause
C. Utmost good faith
The two kinds of waivers are:
A. Intentional and Unintentional
B. Express and Implied
C. Timely and Expired
D. Insurable and Uninsurable
B. Express and Implied
Proximate Cause is the unbroken connection between the occurrence and ______ that grows out of the occurrence.
A. Damages
B. Claims
C. Injuries
D. Judgements
A. Damages
Which loss settlement valuation may be a violation of the Principle of Indemnity?
A. Valued policy
B. Actual cash value
C. Structured settlement
D. Replacement cost
D. Replacement cost
IF the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the value of the property is $100,000, what loss amount will the insurer pay?
A. $15,000
B. $30,000
C. $45,000
D. $60,000
C. $45,000
The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If a hurricane loss of $6,000 occurs to the home that is valued and insured for $100,000, how much will the policy pay?
A. $1,000
B. $2,000
C. $5,000
D. $6,000
A. $1,000
A waiver is defined as ____
A. Giving up a known right involuntarily
B. Giving up a known right voluntarily
C. Unintentional relinquishment of a known right
D. Settling a claim
B. Giving up a known right voluntarily
An insured signs a release to settle a claim. In the event the insured discovers injuries or damages that were unknown at the time of settlement, what is generally true?
A. unknown injuries/damages covered
B. Unknown injuries/damages covered for 90 days f
C. Release extinguished all causes of action
Which of the following is not a tort?
A. Slander
B. Assault
C. Auto accident
D. Breach of contract
D. Breach of contract
The type of damages that pays medical bills is known as:
A. Punitive
B. General
C. Special
D. Money
C. Special
A marine policy has a $1 million limit and a $100,000 franchise deductible. A covered loss is $110,000. How much will the policy pay?
A. 0
B. $10,000
C. $110,000
D. Not enough information to determine
C. $110,000
Which of the following is NOT included in a proof of loss?
A. Origin of loss
B. Replacement cost of each item
C. Interest of insured in each damaged item
D. All contracts of insurance covering any of the property
B. Replacement cost of each item
Property and Liability policies cover:
A. Persons, Property and Operations
B. Persons
C. Property
D. Operations
B. Persons
What type of tort arises from a negligent act?
A. Unintentional
B. Intentional
C. Intentional and unintentional
D. Negligence
A. Unintentional
A car crash victim sued the negligent-drunk driver for damages 5 years after the accident. What is true in FL?
A. Mediation required
B. Arbitration applies
C. Statute of limitations applies
D. Assumption of risk applies
C. Statute of limitations applies
The best statement regarding the Appraisal process is:
A. Appraisal determines the value of a loss
B. Appraisal determines liability
C. Appraisal applies separately to each insured as if the other does not exist
D. Appraisal broadens coverage
A. Appraisal determines the value of a loss
Florida is a _____ Negligence state:
A. Comparative
B. Contributory
C. Intentional
D. Unintentional
A. Comparative
Rule 69B-220.201 prohibits adjusters from:
A. Filling in the blanks on a release
B. Handling claims with integrity
C. Giving legal advise
D. Giving a witness a copy of their statement
C. Giving legal advise
A defense to a claim made by a person who knowingly competes in an extreme sport and is injured would be:
A. Assumption of risk
B. Negligence
C. Strict liability
D. Bad faith
A. Assumption of risk
In Florida property, claims must be paid within ___ days of notice of claims....
A. 120
B. 90
C. 60
D. 14
B. 90
'Liability' refers to:
A. Negligence
B. the merits of the claim
C. Risk
D. Burden of proof
B. the merits of the claim
Self-interest or self-dealing is a violation of an adjusters....
A. Fiduciary duty
B. Job description
C. Claim handling goals
D. Claim handling activities
A. Fiduciary duty
A single claimant was injured in an accident with a FL State Employee. What is true?
A. No lawsuit is permitted against the state
B. The maximum recovery is $100,000
C. The maximum recovery is $200,000
D. He must obtain a Waiver of Sovereign Immunity
C. The maximum recovery is $200,000
An insured has a split limit auto policy with limits of 10/20/10. What is true?
A. Damages to the insured's car are covered up to $10,000
B. $100 is the most that will be paid for the insured's injuries
C. $10,000 is available to each claimant for bodily
D. The insured can never recover any money from this policy
Replacement cost less depreciation is the definition of:
A. The valued policy law
B. a valued policy
C. Actual Cash Value
D. The principle of Indemnity.
C. Actual Cash Value
The FL Unfair Insurance Trade Practices Act penalizes all of the following EXCEPT:
A. Failing to act promptly
B. Denying claims without reasonable investigation
C. Failing to explain claim denials in writing
D. Keeping accurate records of complaints
D. Keeping accurate records of complaints
An insured has an auto policy with a single limit of $30,000. What is true?
A. $30,000 is available for third party property damage and bodily injury claims
B. $30,000 is available for bodily injury claims only
C. $30,000 is available for property damage
A. $30,000 is available for third party property damage and bodily injury claims
A insured and two family members were hospitalized for injuries suffered in an auto crash caused by a drunk driver. The insured carried a basic auto liability policy of 10/20/10. What is the maximum that the insureds own liability will pay for these injur
A. 0