FL Adjusters License Practice Exams 2023 130 Verified QUESTIONS WELL ANSWERED

FL Adjusters License Practice Exams 2023 Which of the following is NOT one of the four critical elements of a contract? (A) A mutual understanding and agreement with the terms of the contract. (B) Written evidence of the agreement and its terms. (C)A legal purpose. (D)Consideration, consisting of money or a promise of performance. Correct Answer: (B) Written evidence of the agreement and its terms. 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? (A) $11,500 (B) $10,875 (C) $14,500 (D) $15,000 Correct Answer: (B) $10,875 Negligence is described as: (A)Liability imposed by jury verdict. (B) Liability arising from statutorily imposed liability regardless of fault. (C) Fault that arises from doing something you shouldn't have done, or not doing something you should have done. (D) Fault imposed on you because you have a greater ability to pay. Correct Answer: (C) Fault that arises from doing something you shouldn't have done, or not doing something you should have done. Describe the coverage's provided in a split limit policy of 10/20/10. (A) The coverage provides $10,000 in property damage limits, $20,000 in bodily injury for any one individual, and $10,000 for bodily injuries to each additional person injured. (B) The coverage provides $10,000 for bodily injury to one individual, $20,000 for property damage, and $10,000 for bodily injuries to each additional person injured. (C) The coverage provides up to $10,000 of liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals, and $10,000 for medical payments coverage for the insured's bodily injury. (D) The coverage provides up to $10,000 of liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals, and $10,000 for property damage. Correct Answer: (D) The coverage provides up to $10,000 of liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals, and $10,000 for property damage. 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: (A)The valued policy law. (B) Payment of policy limits plus a penalty for over-insuring the home. (C) Replacement cost value (D) Actual cash value Correct Answer: (A)The valued policy law. Which of the following would not be a preferred claims practice or behavior under Florida's Unfair Insurance Trade Practices Act? (A) Not responding to an insured's calls because you haven't made up your mind yet. (B) Sending a letter to a claimant explaining why you can't pay their claim, or offering a compromise based on specific facts and legal issues. (C) Contacting a witness the day after receiving the claim and getting additional facts about the accident. (D) Contacting an insured or claimant immediately upon receipt of a claim for property damage or bodily injury. Correct Answer: (A) Not responding to an insured's calls because you haven't made up your mind yet. The doctrine of proximate cause is defined as: (A) The proximity of a loss to an insured location. (B) The physical link between one insured loss and another. (C) The primary reason for an event or accident. (D) If there is an unbroken chain of events, or series of consequences, flowing from the initial loss caused by the insured peril to a subsequent loss, the insured peril causing the initial loss will be considered the "proximate cause" of the subsequent loss. Correct Answer: (D) If there is an unbroken chain of events, or series of consequences, flowing from the initial loss caused by the insured peril to a subsequent loss, the insured peril causing the initial loss will be considered the "proximate cause" of the subsequent loss. Once an adjuster is licensed, he or she must maintain a continuing education requirement. Select from the following an adjuster's compliance requirement in order to stay licensed: (A) A newly licensed adjuster must complete 24 hours of continuing education in every two year compliance period, of which 5 hours must be taken in a properly certified 5 Hour Law & Ethics Update course. (B) An adjuster has to complete 28 hours of continuing education in every two year compliance requirement in the following categories: 12 Law, 2 Ethics and 14 Optional. (C) An adjuster must complete 30 hours of continuing education on Florida law every two years immediately following licensure. (D) Only independent adjusters are required to take continuing education. Adjusters who work for insurance companies do not. Correct Answer: (A) A newly licensed adjuster must complete 24 hours of continuing education in every two year compliance period, of which 5 hours must be taken in a properly certified 5 Hour Law & Ethics Update course. Which of the following is NOT an example of "compensatory damages": (A) Wages lost by the injured party due to inability to work because of injuries sustained in an accident. (B)Pain and suffering (C) Medical bills for treatment of injuries sustained in an accident. (D) A jury verdict of $1,000,000 against the defendant to punish them for their reprehensible actions in causing the loss. Correct Answer: (D) A jury verdict of $1,000,000 against the defendant to punish them for their reprehensible actions in causing the loss. The basic and primary functions of an adjuster are: (A) Processing and filing mail. (B) Filing special forms for the insurance company and regulatory bodies. (C) Investigating, managing, evaluating, reporting on, and negotiating and disposing of claims. (D) Making payments and recording claim status claims for property damage, vehicle repairs, damages, medical bills, wage loss and compensation. Correct Answer: (C) Investigating, managing, evaluating, reporting on, and negotiating and disposing of claims. The Adjuster's Code of Ethics starts with a basic premise which states: (A) The work of adjusting engages the public trust. (B) Not attempting in good faith to settle claims when it could and should have done so may subject an adjuster to direct liability for bad faith claims practices. (C) It is important for an adjuster to avoid violations of the Unfair Trade Practices Act. The insurer, on whose behalf the adjuster performs, may be subjected to administrative penalties if the adjuster commits an infraction. (D) Any person who is damaged by certain adjuster practices is granted a right to sue the adjuster. Correct Answer: (A) The work of adjusting engages the public trust. Which of the following statements is NOT true? (A) If a question of coverage arises and cannot be swiftly resolved in favor of the insured, the carrier should immediately tender the claim to its defense attorney and deny the claim. (B) If a lawsuit is filed and served upon an insured, the insured must immediately tender the lawsuit to the insurer or it may jeopardize the carrier's ability to defend the claim, and the insured's rights to coverage under the policy. (C) A carrier has the right, but not the duty, to settle any claim if it deems reasonable and prudent to do so. (D) Under a liability insurance policy, a carrier's duty to defend is greater than its duty to pay. Correct Answer: (A) If a question of coverage arises and cannot be swiftly resolved in favor of the insured, the carrier should immediately tender the claim to its defense attorney and deny the claim. The fundamental difference in adjusting claims in the healthcare industry and in the property/casualty (i.e. workers' compensation, liability, etc.) industry is: (A) You serve the interests of not just one, but many different employers. (B) The property and casualty industry is much more complex and litigious. (C) The pay is not as good in the healthcare insurance industry. (D) The relative degree of legalism involved. To adjust claims in the property and casualty industry one must have a sound foundation and understanding of various legal doctrines and issues. Correct Answer: (D) The relative degree of legalism involved. To adjust claims in the property and casualty industry one must have a sound foundation and understanding of various legal doctrines and issues One of the most important claim handling goals of an insurance company is: (A) To avoid underwriting exposures for which payment may be required. (B) To strictly interpret its policies and reduce claim payouts to only what is clearly provided for under the insurance contract. (C) To help those who have been injured, or who have suffered loss for which the insured is responsible, while at the same time minimizing loss for the insured party and carrier. (D) To save money for the insurance company and its stockholders. Correct Answer: (C) To help those who have been injured, or who have suffered loss for which the insured is responsible, while at the same time minimizing loss for the insured party and carrier. 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: (A) A straight deductible (B) A percentage deductible (C) A franchise deductible (D) Depreciation Correct Answer: (B) A percentage deductible A claim in the property/casualty industry is defined as: (A) 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 (B) A bill submitted for payment by an insured or claimant (C) An accident involving injury or property damage (D) A lawsuit Correct Answer: (A) 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 Which of the following is one of the duties of an Insured following a loss? (A)Making a record of all damaged property (B) Giving prompt notice of loss to the insurer (C) Stopping payment of the most recent premium payment (D) Reporting the loss to the police Correct Answer: (B) Giving prompt notice of loss to the insurer What is the primary difference between a staff adjuster and an independent adjuster? (A) A staff adjuster works for an insurance company and an independent adjuster represents property owners against their own insurance companies. (B) A staff adjuster works independently or for adjusting firms who represent many clients and an independent adjuster works for an insurance company. (C) A staff adjuster works for an insurance company and an independent adjuster works independently for themselves or for adjusting firms who represent many clients. (D) A staff adjuster represents property owners in claims against their own insurance companies and an independent adjuster works independently or for adjusting firms who represent many clients. Correct Answer: (C) A staff adjuster works for an insurance company and an independent adjuster works independently for themselves or for adjusting firms who represent many clients. In today's society, the most important factor in the purchase of insurance is: (A) Trust (B) The ability to buy it online. (C) The size and financial stability of the insurance company. (D) The proximity of the insurance agent to one's home. Correct Answer: (A) Trust Describe the difference between a peril and a hazard. (A) A peril is a hazard gone wrong. (B) A peril is a cause of loss, like fire. A hazard is a condition that exists beforehand that increases the likelihood of such a loss, like a messy storeroom or garage that contains lots of toxic chemicals, oily rags, etc. (C) A hazard is a cause of loss and a peril is the condition that created it. (D) When someone drives too fast, that's a peril. When they get into an accident and kill someone, that's a hazard Correct Answer: (B) A peril is a cause of loss, like fire. A hazard is a condition that exists beforehand that increases the likelihood of such a loss, like a messy storeroom or garage that contains lots of toxic chemicals, oily rags, etc. When you purchase insurance, you are buying: (A) Peace of mind that if an insured event does occur, that the insurance company will keep its promise and provide the financial protection that you purchased. (B) A guarantee of financial security. (C) Protection from damage to property or personal injury. (D) A new car if you get into an accident. A new house if yours burns down. Correct Answer: (A) Peace of mind that if an insured event does occur, that the insurance company will keep its promise and provide the financial protection that you purchased. 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 following): (A) The insured could have the state withdraw the carrier's license to conduct business. (B) If found guilty of a breach of contract, the carrier could be punished with a "bad faith" verdict that would cost it millions of dollars. (C) If sued, the carrier could be required to pay the claim and return the paid-up premium to the insured. (D) If the carrier has just cause for the breach, its denial may be justified and the insured would have to accept it. Correct Answer: (B) If found guilty of a breach of contract, the carrier could be punished with a "bad faith" verdict that would cost it millions of dollars. An insurance policy is often referred to as a contract of adhesion. This means: (A) The policy is strictly interpreted in favor of the party who had control over its creation. (B) Both parties are required to strictly adhere to the specific wording of the policy. (C) The insurance company is required by law to unilaterally waive any policy requirements that are deemed vague or ambiguous. (D) 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. Correct Answer: (D) 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.