Page | 1
FLORIDA CLAIMS ADJUSTER
UPDATED EXAM WITH VERIFIED
SOLUTIONS.
What is the Florida Unfair Insurance Trade Practices Act? -
correct answer -Under this Act, penalties are provided for
misrepresentation of business practices including:
-Failing to act promptly
-Failure to affirm or deny a claim when an insured is entitled
thereto
-Failure to explain claim denials in writing
-Failure to maintain complaint-handling procedures, such as
keeping accurate records of complaints
What perils are covered by Comprehensive Coverage? Does the
deductible apply to them all? - correct answer -Comprehensive
Coverage applies to damage not caused by collision (an animal
runs into your vehicle, hail damages your hood, glass claims, etc.)
In Florida, windshields are replaced for free and you ARE NOT
responsible for paying a deductible.
, Page | 2
What is the time frame for a Non-Renewable Temporary License?
- correct answer -A period not to exceed 6 months
What types of insurance licenses are offered by the Department
and how do they differ? - correct answer -1. General Lines Agent
2-20: licensed to write property/casualty, surety or health
insurance.
2. Customer Representative 4-40: must be licensed, appointed by
a General Lines Agent and may assist in transactions in the
OFFICE ONLY
3. Limited Customer Representative 4-42: must be licensed,
appointed by a General Lines Agent and transact AUTO
insurance in the OFFICE ONLY.
4. All Lines Claims Adjuster 6-20: investigates, Evaluates and
Negotiates Claims
What are some reasons for suspension, revocation, or termination
of a license? - correct answer -1. Transacting insurance outside of
scope of one's license
►For example, an individual cannot sell life insurance if he or she
has a Customer Service license but has not obtained a life
license.
2. Misrepresentation or Fraud.
3. Participating in unfair methods of competition.
, Page | 3
►Using discriminatory practices, making false entries on an
insurance application or defaming others.
4. Sliding: Selling an item and stating that it is required by law
(when it is not).
5. Demonstration of unworthiness or lack of fitness.
6. Misappropriation of funds.
7. Failure to inform Department of Financial Services, within 30
days, after pleading guilty or no contest to a felony.
Compare/contrast different types of adjusters. - correct answer -1.
Independent Adjuster - self-employed and not affiliated with either
insurers or bureaus
2. Company/Staff Adjuster - salaried employee under supervision
of home, branch, regional claims department of insurers
3. Public Adjuster - represents the financial interests of the
insured
named in the policy
4. Claims Adjuster - one who is involved in the investigation,
adjustment, negotiation and/or trial preparations of claims arising
under insurance policies
5. Bureau Adjuster - agent of adjustment bureau which serves
multiple
company clients
*Independent and Bureau are both "Fee Adjusters"
, Page | 4
What is an Insurance Contract? - correct answer -Insurance is a
contract whereby one undertakes to indemnify another or pay or
allow a specified amount or a determinable benefit upon
determinable contingencies
What are the components that make up the investigation
process? - correct answer -Inquiry, verification, comparison
What are the Code of Ethics for adjusters? - correct answer -
Formal rules which impact on adjuster practices
1. Adjusters may not directly negotiate with a claimant who is
represented by an attorney.
2. In interviewing witnesses, adjusters must avoid any actions
tending to induce a suppression or deviation from the truth. A
witness who requests a copy of a statement given must be
provided with a copy.
3. Adjusters shall not give legal advice.
4. Adjusters shall not draft special releases; they are permitted
only to fill in blanks of forms provided by the insurer.
5. Adjusters will not take advantage of an incapacitated claimant
which would be to the detriment of the claimant.
6. Adjusters will not knowingly fail to advise claimants of their
rights under contracts and laws of the state.
FLORIDA CLAIMS ADJUSTER
UPDATED EXAM WITH VERIFIED
SOLUTIONS.
What is the Florida Unfair Insurance Trade Practices Act? -
correct answer -Under this Act, penalties are provided for
misrepresentation of business practices including:
-Failing to act promptly
-Failure to affirm or deny a claim when an insured is entitled
thereto
-Failure to explain claim denials in writing
-Failure to maintain complaint-handling procedures, such as
keeping accurate records of complaints
What perils are covered by Comprehensive Coverage? Does the
deductible apply to them all? - correct answer -Comprehensive
Coverage applies to damage not caused by collision (an animal
runs into your vehicle, hail damages your hood, glass claims, etc.)
In Florida, windshields are replaced for free and you ARE NOT
responsible for paying a deductible.
, Page | 2
What is the time frame for a Non-Renewable Temporary License?
- correct answer -A period not to exceed 6 months
What types of insurance licenses are offered by the Department
and how do they differ? - correct answer -1. General Lines Agent
2-20: licensed to write property/casualty, surety or health
insurance.
2. Customer Representative 4-40: must be licensed, appointed by
a General Lines Agent and may assist in transactions in the
OFFICE ONLY
3. Limited Customer Representative 4-42: must be licensed,
appointed by a General Lines Agent and transact AUTO
insurance in the OFFICE ONLY.
4. All Lines Claims Adjuster 6-20: investigates, Evaluates and
Negotiates Claims
What are some reasons for suspension, revocation, or termination
of a license? - correct answer -1. Transacting insurance outside of
scope of one's license
►For example, an individual cannot sell life insurance if he or she
has a Customer Service license but has not obtained a life
license.
2. Misrepresentation or Fraud.
3. Participating in unfair methods of competition.
, Page | 3
►Using discriminatory practices, making false entries on an
insurance application or defaming others.
4. Sliding: Selling an item and stating that it is required by law
(when it is not).
5. Demonstration of unworthiness or lack of fitness.
6. Misappropriation of funds.
7. Failure to inform Department of Financial Services, within 30
days, after pleading guilty or no contest to a felony.
Compare/contrast different types of adjusters. - correct answer -1.
Independent Adjuster - self-employed and not affiliated with either
insurers or bureaus
2. Company/Staff Adjuster - salaried employee under supervision
of home, branch, regional claims department of insurers
3. Public Adjuster - represents the financial interests of the
insured
named in the policy
4. Claims Adjuster - one who is involved in the investigation,
adjustment, negotiation and/or trial preparations of claims arising
under insurance policies
5. Bureau Adjuster - agent of adjustment bureau which serves
multiple
company clients
*Independent and Bureau are both "Fee Adjusters"
, Page | 4
What is an Insurance Contract? - correct answer -Insurance is a
contract whereby one undertakes to indemnify another or pay or
allow a specified amount or a determinable benefit upon
determinable contingencies
What are the components that make up the investigation
process? - correct answer -Inquiry, verification, comparison
What are the Code of Ethics for adjusters? - correct answer -
Formal rules which impact on adjuster practices
1. Adjusters may not directly negotiate with a claimant who is
represented by an attorney.
2. In interviewing witnesses, adjusters must avoid any actions
tending to induce a suppression or deviation from the truth. A
witness who requests a copy of a statement given must be
provided with a copy.
3. Adjusters shall not give legal advice.
4. Adjusters shall not draft special releases; they are permitted
only to fill in blanks of forms provided by the insurer.
5. Adjusters will not take advantage of an incapacitated claimant
which would be to the detriment of the claimant.
6. Adjusters will not knowingly fail to advise claimants of their
rights under contracts and laws of the state.
