Florida Claims Adjuster Exam
The following are basic characteristics of a property or liability insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion - ANS C. Loss Settlement 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?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - ANS A. Conditional Contract
A(n) __________ is one wherein economic loss would be suffered from an adverse happening
to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - ANS D. Insurable Interest
The __________ 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.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance - ANS A. Doctrine of Proximate Cause
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 - ANS D. All listed interests
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old For New"
D. None of the Above - ANS A. Actual Cash Value
Insurance applies separately to each insured as if other insureds did not exist. This is defined
as:
A. Severability
B. Conditional
C. Warranty
D. None of the Above - ANS A. Severability
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. (Usually 60 days)
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - ANS D. Liberalization
Property insurance policies usually contain a(n) __________ clause, stating the insured cannot
dump damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above - ANS B. Abandonment
A policy condition, either based on information in the insured's application or inserted by the
insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above - ANS A. Warranty
If financial responsibility doesn't exist at the time of an accident, which of the following things
must happen to avoid penalties?
, A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future responsibility for future accidents
C. Both A&B
D. None of the Above - ANS C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his
renewal date he receives notice of the company's intention to non-renew because of 3 negligent
losses and 1 speeding ticket in the past 3 years. His driving record and claim history make this a
valid non-renewal.
A. True
B. False - ANS B. False
Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property - ANS A. 10,000
While driving his own car, Bill is involved in an accident that is the fault of the other driver, Mike.
He looks to collect for his injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
D. His PIP, his Med Pay, His UM, Mike's Liability. - ANS C. His PIP, his Med Pay, Mike's Liability,
his UM.
eremy 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?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - ANS A. $1,600
Robert is driving his car in Florida when he is hit by an at-fault driver. Robert has $10,000 in
medical bills, carries Basic PIP with a $1000 deductible and has no Med Pay. How much will the
at-fault driver have to pay for Robert's injuries?
A. $2800
B Nothing--Robert's PIP is primary
The following are basic characteristics of a property or liability insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion - ANS C. Loss Settlement 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?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - ANS A. Conditional Contract
A(n) __________ is one wherein economic loss would be suffered from an adverse happening
to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - ANS D. Insurable Interest
The __________ 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.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance - ANS A. Doctrine of Proximate Cause
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 - ANS D. All listed interests
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old For New"
D. None of the Above - ANS A. Actual Cash Value
Insurance applies separately to each insured as if other insureds did not exist. This is defined
as:
A. Severability
B. Conditional
C. Warranty
D. None of the Above - ANS A. Severability
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. (Usually 60 days)
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - ANS D. Liberalization
Property insurance policies usually contain a(n) __________ clause, stating the insured cannot
dump damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above - ANS B. Abandonment
A policy condition, either based on information in the insured's application or inserted by the
insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above - ANS A. Warranty
If financial responsibility doesn't exist at the time of an accident, which of the following things
must happen to avoid penalties?
, A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future responsibility for future accidents
C. Both A&B
D. None of the Above - ANS C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his
renewal date he receives notice of the company's intention to non-renew because of 3 negligent
losses and 1 speeding ticket in the past 3 years. His driving record and claim history make this a
valid non-renewal.
A. True
B. False - ANS B. False
Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property - ANS A. 10,000
While driving his own car, Bill is involved in an accident that is the fault of the other driver, Mike.
He looks to collect for his injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
D. His PIP, his Med Pay, His UM, Mike's Liability. - ANS C. His PIP, his Med Pay, Mike's Liability,
his UM.
eremy 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?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - ANS A. $1,600
Robert is driving his car in Florida when he is hit by an at-fault driver. Robert has $10,000 in
medical bills, carries Basic PIP with a $1000 deductible and has no Med Pay. How much will the
at-fault driver have to pay for Robert's injuries?
A. $2800
B Nothing--Robert's PIP is primary
