Florida Adjuster licensing Question & answers latest prediction

1. While driving, Ben was struck by another driver, Rox- anne. Ben then filed a claim with Roxanne's insurer. In essence, what was Ben doing when he filed this claim? Alerting Roxanne's insurer of his intent to take the case to court Submitting a formal request to settle the damages with Roxanne's insurer Ordering Roxanne's insurer to pay for his damages within 15 days Admitting he was actually "at fault" 2. Mark incurred $8,000 damage to his car in an acci- Submitting a for- mal request to set- tle the damages with Roxanne's in- surer the principle of in- dent. He received $8,000 from his insurance company demnity and $4,000 from the other driver. By receiving a profit from the loss, Mark could be in violation of: the principle of financial status. the principle of financial restoration. the principle of profit and loss. the principle of indemnity. 3. What is a reserve, in insurance terms? The amount of revenue that the insurer sets aside to pay employee salaries A group of policyholders who pay into the same pool of premiums A pool of collected premiums that the insurer sets aside to pay claims A set of rules governing how the insurance industry should work 4. The purpose of the principle of indemnity is: to prevent an insured from making a profit on a loss. to transfer the risk of financial loss from one party to another. to transfer the right to collect a debt from one party A pool of collected premiums that the insurer sets aside to pay claims to prevent an in- sured from making a profit on a loss. to another. to prevent an insurer from making a profit on a loss. 5. Greg plays trombone in his school band during foot- ball games. During a rally song in the stands one day, Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it down the bleachers, completely destroying it. Greg's insurance pays him $400 to replace the trombone, but then the opposing team's coach also offers to replace the in- strument, at whatever the cost. So Greg orders a new $3,200 trombone and has the opposing team's athlet- ic department absorb the cost. Which principle has Greg violated? The principle of consideration The principle of legal purpose The principal of the opposing team The principle of indemnity 6. Which of the following refers to being restored to the financial condition you were in before a loss? Indemnification Restoration Estoppel Subrogation 7. Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the following would be a reason this policy may not be legally binding? Bobby has an outstanding warrant for selling mari- juana. Bobby has been diagnosed with schizophrenia. Bobby paid his first premium when he and his agent agreed on a policy, but he is waiting for the policy documents to be prepared so he can sign them Bobby is only 19 years old. The principle of in- demnity Indemnification Bobby has been diagnosed with schizophrenia. 8. Indemnification may include all of the following ex- cept: reimbursement for hotel costs. reimbursement for rental car costs. payment for pain and suffering. payment for repairs to property. 9. Which of the following is NOT a requirement for a legally binding contract? There must be a legal purpose. There must be mutual consent. Both parties must bring something of value. It must be a notarized document. 10. The fee paid by the insured in exchange for an insur- ance policy is called a: premium. legal purpose. binder. contract. 11. Which of the following best defines the principle of indemnity? Both parties to an insurance contract must contribute something of value. After a loss, the insured should be restored to his approximate financial condition before the loss. In order to be legally binding, a contract must have agreement, consideration, competent parties, and legal purpose. In exchange for a premium, the insurer grants peace of mind by reducing the insured's insecurity about the future. 12. Which of the following is found in the declarations page of an insurance policy? The perils insured against A description of how to file a claim payment for pain and suffering. It must be a nota- rized document. premium After a loss, the insured should be restored to his ap- proximate finan- cial condition be- fore the loss. The name of the insured party The obligations of the insured after a loss The name of the insured party 13. In which section of an insurance policy might you find Definitions the following statement? "'We, us, and our' refers to ABC Insurance company." Definitions Declarations Conditions Exclusions