Florida certified adjuster practice exam
COMPLETE QUESTIONS &
ANSWERS(RATED A)
Jane has $150,000 homeowners policy with a 3% percentage deductible. One night, In oven fire destroys
her kitchen, causing $50,000 in damage. How much of the damage falls under Janes responsibility? -
ANSWER $4,500
Xavier owns a small insurance company. Recently the company want to bid to ensure a new housing
development in Omaha, Nebraska. His company can handle any claims that arise, but if a series of
tornadoes were to tear through the area and destroy the entire development, Xavier's company would
suffer financially. Which type of insure could help Xavier's company protect itself the most from this
potential loss? - ANSWER A re-insurer
Which of the following situations does NOT involve an instance of "pure risk?" - ANSWER Loss of money
invested in the stock market
Which of the following is an insurable risk? - ANSWER A football stadium
A lightning strike causes one of those storage buildings on John's farm to burn to the ground, added by
the fuel tanks he kept in the building. John knows he wasn't supposed to store any fuel in the building,
so he kept that piece of information to himself when he files a claim. John's ensure made and I his claim
based on his: - ANSWER Concealment
Chain shed burned to the ground during a tornado, when the Highwinds break a wall of the shed,
knocking over a lantern inside. What is the proximate cause of the loss? - ANSWER Wind
, Kevin plays in a brass band using two rare antique Alexander tubas. Since they are no longer produced,
the value of the tubas is difficult to determine. Which type of policy would best indemnify Kevin in this
event that his two boys were damaged, lost, or stolen? - ANSWER Agreed value policy
Which settlement option is most often use when the claimant misses work because of a bodily injury,
but a settlement has not been reached? - ANSWER Advance payment settlement
Adjuster Andy is trying to determine a final settlement amount for Stacy's claim. Stacy's house was
destroyed in a house fire and it will cost $185,000 to rebuild it. Stacy's homeowner policy has a limit of
$178,000 and $1800 deductible. Typically, how much would adjuster Andy calculate Stacy's final
settlement amount to be - ANSWER $178,000
In a dwelling policy, how much will the Fire Department Service charge coverage pay? - ANSWER Up to
$500 if the fire department charges for responding to a covered peril
Bill's new home is in the final stages of construction, and he has purchased an HO-2 policy to ensure his
financial interest in the property. This morning, Bill's contractor calls to tell him that an electrical fire has
destroyed his new kitchen, and all of the crown molding that was supposed to be installed today has
been stolen. It will be $15,000 to rebuild the kitchen and another $4,200 to replace the trim. How will
Bill's ensure respond when he files a claim? - ANSWER His insurer will pay $15,000 for a build the kitchen
and nothing for the stolen trim
Which of the following statements about the original standard fire policy is FALSE? - ANSWER It was the
first multi-line policy, combining both Physical Damage and Liability coverages
During a severe wind storm, a large tree in Jeff's yard was blown down in two large bushes were ripped
from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the
replacement of the tree and bushes that were damaged by the wind storm? - ANSWER $0
For loss settlement purposes, most homeowners policies: - ANSWER Pay for damages to personal
property at actual cash value, and damages to structures at replacement cost
Tim's $2500 boat trailer was stolen from his driveway. Ignoring any deductibles, how much contingency
for his stolen trailer when he files a claim against his homeowners policy? - ANSWER $1,500
, Helen's business is growing rapidly, so she decided to add an annex onto her office and hire another
worker. While under construction, a storm blows down most of the annex structure, forcing Helen to
restart from scratch. Her commercial policy provides insurance coverage equal to 75% of the property
value, despite the fact that her policy requires 80% coverage to be fully insured. Which coverage
extension could help Helen rebuild at replacement cost? - ANSWER None - Extensions are only available
at the policyholder maintains the minimum level of insurance of 80% to value
A fire burns down Jenny's hardware, leaving virtually nothing salvageable. Which of the following items
would not be covered under coverage A of the building and personal property coverage form in her
commercial property policy? - ANSWER An employees laptop what she uses for work
What BOP endorsement would cover accompanies lost business income and extra expense due to loss of
electrical service? - ANSWER Utility time element
When the high-pressure feeder malfunction at the ACME paper mill, The resulting explosion severely
damaged the mill and shut down operations for almost 2 months. Once the repairs are finished, the city
inspector comes out to inspect the work and finds that the required scrubber needs to be replaced in
order to meet current Industry safety standards. Which coverage could help ACME with this added
expense? - ANSWER Law and ordinance coverage
According to the commercial property policy, a commercial building is considered vacant if less than ___
of the available square footage is occupied for ___ consecutive days. - ANSWER 31%, 60
Assuming Ernie holds a BOP with a selected per occurrence limit of $300,000, why would Ernie's
completed operations in general aggregate limits equal? - ANSWER Completed operation: $600,000;
General aggregate: $600,000
A short circuit in one of the refrigeration units in the ice queen ice cream shop sparked a fire that
severely damaged the shop, and it has to shut down for two months while repairs were made. What
type of additional coverage would indemnify the ice queen for the lost income during these two
months? - ANSWER Business interruption coverage
In a BOP, the purpose of supplementary payments in conjunction with liability coverage is to: - ANSWER
Cover costs associated with defending and investigating a claim against the insured
