Florida Claims Adjuster Exam
100% ACCURATE
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 - ANSWER D. All listed interests
Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one
payment is made by the insurer and it is up to the additional interests on working out their share.
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 - ANSWER A. Severability
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 - ANSWER B. Abandonment
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 - ANSWER D. Insurable Interest
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.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - ANSWER D. Liberalization
The time frame is typically 60 days.
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 - ANSWER A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire but further damage is caused by
smoke, water used to extinguish, and the process of moving property away - fire is considered to be the
*proximate cause* of all of the damage.
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 - ANSWER A. Actual Cash Value
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 - ANSWER 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 - ANSWER C. Both A & B
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:
A. 1
B. 3
C. 4
D. 2 - ANSWER B. 3
The Business Automobile Policy includes all of the following coverage forms except:
A. The Garage Coverage Form
B. The Trailer Interchange Coverage Form
C. The Truckers Coverage Form
D. The Business Auto Coverage Form - ANSWER B. The Trailer Interchange Coverage Form
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 - ANSWER A. 10,000
Used to insure businesses engaged in selling, servicing, repairing, parking or storing automobiles:
A. Servicing Coverage Form
B. Garage Coverage Form
C. Truckers Coverage Form
D. None of the Above - ANSWER B. Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10.
A. Split
B. Single
C. Straight
D. None of the Above - ANSWER A. 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?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - ANSWER A. $1,600
3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
100% ACCURATE
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 - ANSWER D. All listed interests
Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one
payment is made by the insurer and it is up to the additional interests on working out their share.
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 - ANSWER A. Severability
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 - ANSWER B. Abandonment
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 - ANSWER D. Insurable Interest
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.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - ANSWER D. Liberalization
The time frame is typically 60 days.
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 - ANSWER A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire but further damage is caused by
smoke, water used to extinguish, and the process of moving property away - fire is considered to be the
*proximate cause* of all of the damage.
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 - ANSWER A. Actual Cash Value
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 - ANSWER 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 - ANSWER C. Both A & B
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:
A. 1
B. 3
C. 4
D. 2 - ANSWER B. 3
The Business Automobile Policy includes all of the following coverage forms except:
A. The Garage Coverage Form
B. The Trailer Interchange Coverage Form
C. The Truckers Coverage Form
D. The Business Auto Coverage Form - ANSWER B. The Trailer Interchange Coverage Form
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 - ANSWER A. 10,000
Used to insure businesses engaged in selling, servicing, repairing, parking or storing automobiles:
A. Servicing Coverage Form
B. Garage Coverage Form
C. Truckers Coverage Form
D. None of the Above - ANSWER B. Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10.
A. Split
B. Single
C. Straight
D. None of the Above - ANSWER A. 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?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - ANSWER A. $1,600
3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
