Progressive Florida Claims
Adjuster Exam ACCURATE
100%
Claim - ANSWER 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
What are you really buying when you purchase insurance? - ANSWER Peace of mind
Why is insurance such a unique product? - ANSWER It is a financial product. The purchase of a promise
base totally on trust that is absolutely essential in today's world.
First foremost and always what is an adjuster's most important objective in today's world of insurance? -
ANSWER To help those who have been injured, or who have suffered a loss that is covered by the
insurance contract or for which an insured policy holder is responsible while at the same time minimizing
loss for the insured party and or carrier
In today's society, the most important factor in the purchase of insurance is - ANSWER Trust
What would Joe do as an adjuster? - ANSWER INVESTIGATE, EVALUATE, AND SETTLE INSURANCE CLAIMS
ON BEHALF OF AN INSURER OR INSURED.
Joe saw an ad in the paper..... difference between an adjuster who works in the healthcare industry
versus an adjuster in the property/casualty, insurance industry. What would you say? - ANSWER
Healthcare adjusters are processors, who reimburse medical bills if they fall within a list of approved
conditions or treatment. A property/casualty adjuster evaluates a legal responsibilities, determines what
or how much is owed and pays or settles claims.
, If Joe, where to go to work for an insurance company, what kind of adjuster with Joe be? - ANSWER A
company/staff adjuster
Joe is really intrigued by his neighbors work and ask him who he works for. His neighbor told him that he
owns his own adjusting company and adjust claims are several different companies. In other words he
takes claim assignments from whoever calls. What kind of adjuster is he? - ANSWER An independent
adjuster
Joe's neighbor tells him that field adjusting is "the best job in the insurance industry". Joe doesn't
envision himself sitting behind a desk, so he is intrigued by this as well and white lines of business
business with Joe need to experience to have the greatest chance of getting a good field adjusting job -
ANSWER Multi-line adjusting
Joe sister is a nurse who works in a nearby hospital. As he talks to her about his interest, she asked him
what type of adjusting she would be most qualified for if she were interested, which kind of adjusting
would present her with the greatest opportunity? What would you tell her? - ANSWER Worker's
compensation
Joe's neighbor told him that he really prefers working with litigated claims dealing with the lawyers,
getting it in negotiations and going to depositions and trials. What kind of claims does Joe's neighbor
prefer? - ANSWER Liability adjusting
If Joe, we're just strictly handle, hurricane tornado hellfire, and other claims of this nature, what line of
business would Joe be adjusting - ANSWER Property
While driving home from an interview, Joe was rear ended. He's not injured so he makes a claim against
the other drivers insurance policy for damages to his vehicle. The person taking the claim advises Joe
that he will be contacted within 24 hours by an adjuster. From what type of adjuster will Joe likely hear? -
ANSWER An auto physical damage adjuster
The claims manager told Joe a story of one of the best adjusters he had ever known, and how he had
been forced to fire the man because he just would not document to clean files with ongoing status.
What kind of responsibility did the adjuster fail to fulfill? - ANSWER Communicating and reporting
, The claims manager then told Joe a story about one adjuster who made a deal with a body shop to pay
the adjuster $100 for every damaged automobile that he referred, referred for repair. The adjuster is
ultimately fired. What responsibility did that adjuster fail to fulfill? - ANSWER Fiduciary responsibility
The claims manager also told about a young adjuster who lost his temper and cursed out an insured
policyholder. He was arguing about a claim the adjuster has denied. The insured policyholder sued the
company and collected $50,000 for slander in the embarrassment caused the insured what responsibility
did that adjuster fail to fulfill? - ANSWER Agency: the power to bind
Which of the following is NOT one of the basic adjusting functions? - ANSWER Inspection
Breach of contract to buy a carrier or it's adjusters, through non-payment, or noncompliance with policy
requirements, could have which of the following consequences for a carrier: - ANSWER 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
Which of the following is not a fundamental part of an insurance policy: - ANSWER endorsement
Which of the following is one of the duties of an insured following a loss? - ANSWER giving prompt
notice of loss to the insurer
What is the difference between a peril and a hazard? - ANSWER Apparel is a cause of loss like fire. A
hazard is a condition that exist beforehand that increases the likelihood of such a loss like a messy store
room or garage that contains lots of toxic chemicals, oily rags etc
The doctrine of proximate cause is defined as: - ANSWER 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
A couple had Coverage A limits of $250K on their home located in FL. A tornado spawned by Hurricane
Ernesto damaged their roof resulting in estimated repair costs of $11,500. The adjuster deducted the FL
hurricane deductible of $5,000 from the estimate and paid them $6,500 in settlement of their property
claim. This is known as the application of: - ANSWER a percentage deductible (hurricane deductible)
, A restaurant was damaged after a grease fire irrupt it in the kitchen. Damage to the structure total
$78,300 in law/damage to personal property totaled $14,000. The owners commercial property policy
provide coverage a limit of $250,000 and coverage see limits of $100,000 with a deductible of $1000.
How much will the policyholder be paid? - ANSWER 91,300
A couple hasn't shared their home for $150,000. A fire and Susan guts their home resulting in a total
loss. An appraisal of the home prior to los results in a value of $120,000 if the adjuster is required by law
to pay the couple $150,000. This is known as the application of: - ANSWER The valued policy law
Assume that five years ago a couple ensure their home for it so that appraise value of $60,000. Two
weeks ago a pipe burst in the home resulting in an estimated loss of $15,000 in water damage. The
adjuster find the value of their home is now $100,000 for the home is still only insured for $60,000 and
there's a deductible of $500. A policy has an 80% coinsurance clause how much the adjuster pay the
couple? - ANSWER $10,875
Describe the coverage s provided in a split limit policy of 10/20/10 - ANSWER 10,000 max bodily injury
individual, 20,000 max bodily injuries regardless of how many individuals, 10,000 max for property
damage
Negligence is described as: - ANSWER fault that arises from doing something you shouldn't have done, or
not doing something you should have done
Which of the following is not a defense to a claim of negligence? - ANSWER breach of warranty
Which of the following is not an example of "compensatory damages": - ANSWER A jury verdict of $1
million against the defendant to punish them for the reprehensible actions in causing the loss
Which of the following is not a law that affects one's legal liability? - ANSWER Valued policy law
Which of the following statements is not true? - ANSWER 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
Which of the following is not a defense to a claim of negligence? - ANSWER breach of warranty
