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1 / 59 Florida Claims Adjuster Exam 1.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: 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. 2.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: A. Severability 3.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: B. Abandonment
2 / 59 4.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: D. Insurable Interest 5.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: D. Liberalization The time frame is typically 60 days. 6.The states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resul- tant 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: 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
4 / 59 B. Adhesion Contract C. Indemnity Contract D. All of the Above: A. Conditional Contract "may be conditioned"
- Which of the following is not one of the "Thresholds" in the "No-Fault" law? A. Death of the Insured B. Temporary Injury of the Insured C. A permanent loss of a bodily function D. Permanent scarring on the face of the insured: B. Temporary Injury of the Insured Also included: permanent injury other than scarring and disfigurement 12.Under Mechanical Breakdown Coverage, new cars are eligible for service up to: A. 36 Months/36,000 Miles B. 24 Months/36,000 Miles C. 12,000 Months/12,000 Miles D. 12 Months/36,000 Miles: A. 36 Months/36, Miles Used vehicles: 12 Months/12,000 Miles 13.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
5 / 59 D. None of the Above: C. Both A & B 14.As to required proof for future accidents by purchase of auto liability in- surance, 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: B. 3 15.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: B. The Trailer Interchange Coverage Form 16.Personal Injury Protection, or PIP, has a per person, per acci- dent limit. A. 10, B. 20, C. 1, D. Depends on the damaged property: A. 10, 17.Used to insure businesses engaged in selling, servicing, repairing, parking or storing automobiles: A. Servicing Coverage Form B. Garage Coverage Form
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A. $15,
B. $5,
C. $3,
D. $0, Frank is not-at-fault: B. $5, Medical Payment limits apply per person; Frank will receive full amount towards medical bills. 21.Which of the following is not one of the rating factors for a Homeowner's Policy? A. Type of Construction B. Location of Risk
8 / 59 C. Age & Gender of Insured D. Proximity to Fire Department: C. Age & Gender of Insured 22.On a Homeowner's Policy, covers items that are not permanently attached to the dwelling. This is defined as: A. Other Structures B. Excess Structures C. Personal Property D. Dwelling: A. Other Structures Examples include sheds, fences, pool houses, detached car ports, etc. 23.A lender has an insurable interest in a home and finds protection in the: A. Loss Payee Clause B. Mortgagee Clause C. Lender Clause D. Additional Insured Clause: B. Mortgagee Clause Mortgagee - Homeowner's policy Loss Payee - Automobile policy 24.Which of the following forms is "all-risk" on the dwelling policy? A. DP-1, or the Basic Form B. DP-2, or the Broad C. DP-3, or the Special Form D. None of the Above: C. DP-3, or the Special Form 25.When the basic liability limits provided by the policy are insufficient for an insureds needs, two coverage forms are used to provide the additional amounts of coverage: A. Excess Liability
10 / 59 Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit owners and cooperative apartment occupants 29.Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is averaged at $25,000 and Jeremy decides to stay in a hotel because most of the damage is to his bedroom and kitchen. Under a Home- owner's Policy, what coverage will pay for the hotel room bill? A. Fair Rental Value B. Value Obligation C. Loss of Use D. Insurers Duties: C. Loss of Use The insurer will pay any necessary and reasonable expenses associated with a daily living routine. 30.An insured who wishes to purchase flood insurance, but is located in a moderate or low risk flood zone may do so by purchasing a: A. Preferred Risk Flood Policy B. Standard Flood Policy C. Universal Flood Insurance D. None of the Above: A. Preferred Risk Flood Policy Although Flood Insurance is provided by the Federal Government, those who are not in a "flood zone" may purchase a preferred risk policy to cover them for a flood claim. 31.Used only for Commercial Condominiums, it covers the unit-owners busi- ness personal property and the personal property of others in the insured's care, custody or control:
11 / 59 A. Condominium Dwelling Form B. Personal Condominium Unit Owners Form C. Condominium Unit Owners Form D. None of the Above: C. Condominium Unit Owners Form Does not cover buildings since coverage would typically be provided under the Condo Association coverage form issued. 32.The Commercial Property Contract includes all of the following, except: A. Common Policy Conditions B. Commercial Property Conditions C. Coverage Form D. Commercial Loss Schedule: D. Commercial Loss Schedule Also included: Declarations, Causes of Loss Form, Endorsements
- Insures a condominium association against direct physical loss or damage to buildings, business personal property and personal property of others in the care, custody or control of the association and located at the premises: A. Condominium Association Form B. Condominium Unit Owners Form C. Condominium Insured Owner Form D. None of the Above: A. Condominium Association Form This, along with Condo Unit Owners Form, is located under Condo Coverage. 34.Sometimes referred to as commercial fire and allied lines, this is the form of insurance that covers direct and indirect losses related to properties
13 / 59 37.Liberalization states, "The insured gets the benefit of any broadened cov- erage if the company, within days of inception, adopts a form revision that is broader and without increase in premium." A. 10 days B. 55 days C. 65 days D. 45 days: D. 45 days 38.Used to cover buildings in the course of construction: A. Builders Risk Policy B. Builders Replacement Policy C. Construction Replacement Policy D. None of the Above: A. Builders Risk Policy Includes: structure being built (including foundations), fixtures and machinery, equip- ment to service building, owned materials and supplies used for construction. Temporary structures built or assembled on site are also included if not covered by insurance. 39.First developed as an extension of Ocean Marine coverage, to provide coverage for cargo traveling over land, instead of by sea. A. Commercial Inland Marine Coverage B. Personal Inland Marine Coverage C. Ocean Commercial Coverage D. None of the Above: A. Commercial Inland Marine Coverage Definition: to help identify kinds of risks which are eligible for either Ocean or Inland Marine insurance.
14 / 59 40.Protects against loss of business income that results from damage to covered property from a covered cause of loss. A. Business Income Insurance Coverage B. Business Income Replacement Coverage C. Business Income Actual Value Coverage D. None of the Above: A. Business Income Insurance Coverage Period of restoration begins 72 hours after date of direct damage. In effect, coverage has a 72 hour deductible. Coverage ends on either 1. date when damaged property could be repaired, re- built, or replaced 2. date business resumes operations at new, permanent location (whichever comes first) 41.What payment covers several areas of costs related to claims, and are payable in addition to the policy limits? A. Supplementary B. Liability C. Personal Injury D. All of the Above: A. Supplementary Generally, all costs of litigation are covered (court costs, prejudgment interest, judgement interest, cost of bonds to release attachments) 42.Three full-time employees from a local furniture company are horsing around and one is pushed into a machine that cut his foot. How will the company's General Liability respond? A. The Med Pay Section must pay Primary B. The General Liability Policy will pay up to $20,000 in medical payments C. The GL policy will not pay
16 / 59 Payment is for medical, dental, hospital, and funeral services incurred within one year of date of accident to persons who suffer bodily injury by accident 1. on or next to insured's owned or rented premises, or 2. due to insured's operations. 46.The Commercial General Liability identifies the named insured and address, states the policy period and premium and miscellaneous infor- mation about the insured, and specifies the limits of coverage that apply. A. Declarations B. Contract C. Policy D. None of the Above: A. Declarations States the pertinent information of the policy 47.The Nuclear Energy Liability Exclusion endorsement, in general, all hazards related to nuclear energy. A. Includes B. Excludes C. Prohibits D. Summarizes: B. Excludes Firms involved in Nuclear activities receive protection from special insurer pools organized for that purpose. 48.Toxic wastes escaped from a gas station disposal tank. The insured op- erator discovers the leak and cleans up the spill. Unfortunately, the waste quickly seeped into the ground and has caused illness among the
17 / 59 residents of a neighboring community This is an example of? A. Loss Known B. Known Loss C. Claims-Made D. None of the Above: B. Known Loss Insurer should have been notified and further investigation of the spill and effective clean-up would have been observed. 49.Applies to BI or PD which occurs during the policy period, regardless of any later time at which a claim is made: A. Occurrence Form B. Claims-Made Form C. Premises and Operations Exposure D. None of the Above: A. Occurrence Form vs. Claims-Made: applies only to BI or PD occurring on or after retroactive date for which claim is received/recorded during policy period 50.Applies only to a BI or PD which occurs on or after the retroactive date, and for which the claim is received or recorded by an insured or the company during the policy period: A. Occurrence B. Claims-Made C. Operations Completed D. None of the Above: B. Claims-Made Retroactive date is stated in Declarations and will normally be same date as issuing company's first claims-made effective date for insured.
19 / 59 as: A. The Experience Rating Plan B. The Retrospective Rating Plan C. The Risk Plan D. None of the Above: A. The Experience Rating Plan This, along with Retrospective Rating Plan, is a manual rating process until premi- ums reach a certain level. 55.Under workers compensations, a rate is charged for every of payroll to employees. A. $ B. $1, C. $ D. $500: A. $ The National Council on Compensation Insurance enforces this rating. 56.Under Workers Compensation, Part Four Your Duties if Injuries Occur, an employer is required to: A. Provide the names/addresses of injured persons and witnesses B. Promptly provide any legal papers C. Cooperate and assist as insurer requests D. All of the Above: D. All of the Above Also included: immediate contact with insurer, providing immediate medical or other services, do nothing to interfere with insured's right of recovery, make no voluntary payments or assume any obligation except at employer's own cost. 57.Under Workers Compensation, Employers Liability includes:
20 / 59 A. Claims by others for the liabilities to insureds employees B. Claims by relatives of injured employees for consequential damages C. Claims made by employees that are not subject to Workers Comp Laws D. All of the Above: D. All of the Above 58.Samantha eats uncooked chicken at a local barbecue joint and becomes violently ill. Which of the following workers compensation benefits would pay for this occurrence? A. A products and completed operations form B. A premises and operations form C. An owners and contractors protective liability form D. None of the Above: D. None of the Above Samantha is not an employee of the barbecue joint; Workers Comp does not apply. 59.An optional alternative providing for adjustment of premium after expira- tion, based on a guaranteed basic premium to the insurer to which is added the actual losses incurred by the insured. This is defined as: A. Cost-Plus Rating Plan B. Experience Rating Plan C. Retrospective Rating Plan D. None of the Above: C. Retrospective Rating Plan Often referred to as Cost-Plus Programs 60.Under Employer's Liability, the minimum limits of liability are: A. 100/100/ B. 100/500/ C. 500/100/
