Mock Exam 1 Insurance Licensing
Florida [100% Correct Answers]
A claim in the property/casualty industry is defined as: *Ans*An assertion of an alleged legal right
against a person, entity, company or insurer that carries with it a demand for money as compensation
for injuries or damage
...
Mock Exam 1 Insurance Licensing
Florida [100% Correct Answers]
A claim in the property/casualty industry is defined as: *Ans*✨An assertion of an alleged legal right
against a person, entity, company or insurer that carries with it a demand for money as compensation
for injuries or damage
A couple has Coverage A limits of $250,000 on their home located in Ft. Lauderdale, FL. They suffer a
wind loss to their roof from a tornado spawned by Hurricane Ernesto that results in an estimate of
$11,500.00 for repairs. The adjuster deducts the Florida hurricane deductible of $5,000 from the
estimate and pays them $6,500 in settlement of their property claim. This is known as the application of:
*Ans*✨A percentage deductible
A couple has insured their home for $150,000. A fire ensues and guts their home, resulting in a total
loss. An appraisal of the home prior to loss results in a value of $120,000, yet the adjuster is required by
law to pay the couple $150,000. This is known as the application of: *Ans*✨The valued policy law.
An adjuster's responsibility as a fiduciary means: *Ans*✨The adjuster represents, and controls, the
property and financial interests of the client, to whom he/she owes a high degree of loyalty and good
faith.
An insurance policy is often referred to as a contract of adhesion. This means: *Ans*✨If any of the
wording or language in the policy is vague or ambiguous, if the meaning of the wording is difficult to
understand or interpret, or if what is written can be interpreted to have different meanings, the law is
well settled that the interpretation shall be in favor of the party who did not control its terms...in this
case, the policyholder.
Assume that five years ago a couple insured their home for [its then appraised value of] $60,000. Two
weeks ago they had a stove fire resulting in an estimated loss of $15,000 for repairs. The adjuster finds
that the value of their home is now $100,000, but the home is still only insured for $60,000 and has a
deductible of $500. The policy has an 80% coinsurance clause. How much should the adjuster pay to the
couple? *Ans*✨10,875
Breach of contract by a carrier or its adjuster, through non-payment or non-compliance with policy
requirements, could have which of the following consequences for a carrier (select one from the
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