Florida Claims Adjuster Exam All Answers Correct 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 c overage.. 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 d efined 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 fo r 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. An insured who wishes to purchase flood insurance, but is located in a moderate or low risk flood zone may do so by purchasing a: Ans - Preferred Risk Flood Policy
