Florida Claims Adjuster Exam - Q&A
Severability ✔️Ans - Insurance applies separately to each insured as if
other insureds did not exist.
Abandonment ✔️Ans - 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 ✔️Ans - One wherein economic loss would be suffered
from an adverse happening to the subject.
Liberalization ✔️Ans - 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 ✔️Ans - 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 ✔️Ans - The Loss Settlement Valuation that subtracts an
allowance for depreciation
Warranty ✔️Ans - A policy condition, either based on information in the
insured's application or inserted by the insurer
Conditional Contract ✔️Ans - 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:* ✔️Ans - 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? ✔️Ans - 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 ✔️Ans - 3
The Business Automobile Policy includes all of the following coverage forms
except: ✔️Ans - The Trailer Interchange Coverage Form
Personal Injury Protection, or PIP, has a __________ per person, per accident
limit. ✔️Ans - 10,000
Used to insure businesses engaged in selling, servicing, repairing, parking or
storing automobiles: ✔️Ans - Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25
or 10/20/10. ✔️Ans - 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? ✔️Ans - $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?
✔️Ans - $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? ✔️Ans - Age & Gender of Insured
On a Homeowner's Policy, covers items that are not permanently attached to
the dwelling. This is defined as: ✔️Ans - 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:
✔️Ans - Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
Which of the following forms is "all-risk" on the dwelling policy? ✔️Ans -
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 ✔️Ans - 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 ✔️Ans - 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 ✔️Ans - 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 ✔️Ans - 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 bedroom and kitchen. Under a Homeowner's
Policy, what coverage will pay for the hotel room bill?
A. Fair Rental Value
B. Value Obligation
C. Loss of Use
D. Insurers Duties ✔️Ans - C. Loss of Use
The insurer will pay any necessary and reasonable expenses associated with a
daily living routine.
Severability ✔️Ans - Insurance applies separately to each insured as if
other insureds did not exist.
Abandonment ✔️Ans - 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 ✔️Ans - One wherein economic loss would be suffered
from an adverse happening to the subject.
Liberalization ✔️Ans - 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 ✔️Ans - 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 ✔️Ans - The Loss Settlement Valuation that subtracts an
allowance for depreciation
Warranty ✔️Ans - A policy condition, either based on information in the
insured's application or inserted by the insurer
Conditional Contract ✔️Ans - 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:* ✔️Ans - 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? ✔️Ans - 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 ✔️Ans - 3
The Business Automobile Policy includes all of the following coverage forms
except: ✔️Ans - The Trailer Interchange Coverage Form
Personal Injury Protection, or PIP, has a __________ per person, per accident
limit. ✔️Ans - 10,000
Used to insure businesses engaged in selling, servicing, repairing, parking or
storing automobiles: ✔️Ans - Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25
or 10/20/10. ✔️Ans - 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? ✔️Ans - $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?
✔️Ans - $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? ✔️Ans - Age & Gender of Insured
On a Homeowner's Policy, covers items that are not permanently attached to
the dwelling. This is defined as: ✔️Ans - 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:
✔️Ans - Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
Which of the following forms is "all-risk" on the dwelling policy? ✔️Ans -
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 ✔️Ans - 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 ✔️Ans - 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 ✔️Ans - 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 ✔️Ans - 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 bedroom and kitchen. Under a Homeowner's
Policy, what coverage will pay for the hotel room bill?
A. Fair Rental Value
B. Value Obligation
C. Loss of Use
D. Insurers Duties ✔️Ans - C. Loss of Use
The insurer will pay any necessary and reasonable expenses associated with a
daily living routine.
