Florida Claims Adjuster Final Exam Practice Questions with
Answers and Rationales – Comprehensive Study Guide for
Certified Adjusters
1.
Question:
An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of:
Answer:
The insured and insurer
Rationale:
Adjusters act as fiduciaries and must act in good faith and loyalty toward both the insurer and the
insured when handling claims.
2.
Question:
An insurer gives which of the following as Consideration for an insurance policy?
Answer:
A Promise
Rationale:
In insurance contracts, the insurer’s consideration is the promise to pay covered losses, while
the insured’s consideration is the premium payment.
3.
Question:
The interest of the insured and all other persons in the property involved in a claim is found in:
Answer:
A Proof of Loss
Rationale:
A Proof of Loss lists the insured’s interest and any other parties (such as lienholders) with an
interest in the property.
,4.
Question:
An insured rear-ends another driver's vehicle. The auto policy that pays damages to repair the
damaged vehicle is a ?
Answer:
Liability Policy
Rationale:
Auto liability coverage pays damages the insured becomes legally responsible for causing to
others, including property damage.
5.
Question:
Your insurance company wrote an auto insurance binder for an owner who said that he did not
have any prior accidents. Immediately thereafter it was discovered that he did not tell the truth.
The company now wants to cancel the binder as quickly as possible. What is true?
Answer:
5 days notice required
Rationale:
Florida law generally requires written notice before cancellation of a binder, typically
allowing a short notice period.
6.
Question:
For insurance to pay damages, an insurable interest must exist:
Answer:
When the loss takes place
Rationale:
Insurable interest must exist at the time of the loss for property insurance claims to be valid.
,7.
Question:
Texting while driving is best described as a:
Answer:
Hazard
Rationale:
A hazard increases the chance of loss occurring.
8.
Question:
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of $200,000.
Both policies are pro-rata policies. How much will policy B pay for this loss?
Answer:
$60,000
Rationale:
Pro-rata sharing is based on policy limits.
Total coverage = $300,000
Policy B share = 200,,000 = 2/3
2/3 × 90,000 = $60,000
9.
Question:
I sold my home yesterday, signed a deed and transferred title. Last night there was a house fire. I
had not yet cancelled my homeowner's insurance. The purchaser also had a homeowner's policy.
Which policy should pay to pay the claim?
Answer:
Purchaser's policy
Rationale:
Insurable interest transferred to the new owner when title transferred.
, 10.
Question:
Giving prompt notice of loss is best described as a policy:
Answer:
Condition
Rationale:
Conditions describe duties the insured must perform after a loss.
11.
Question:
If there is a total loss by an insured peril to a FL building, the insurer must pay:
Answer:
Actual Cash Value
Rationale:
Unless replacement cost conditions are met, payment is generally ACV.
Section 2: Policy Clauses, Loss Valuation, and Legal
Concepts
12.
Question:
A Loss Payable Clause refers to:
Answer:
Lenders interest in personal property
Rationale:
Loss Payable Clauses protect lienholders or lenders who have financial interest in insured
property.
13.
Answers and Rationales – Comprehensive Study Guide for
Certified Adjusters
1.
Question:
An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of:
Answer:
The insured and insurer
Rationale:
Adjusters act as fiduciaries and must act in good faith and loyalty toward both the insurer and the
insured when handling claims.
2.
Question:
An insurer gives which of the following as Consideration for an insurance policy?
Answer:
A Promise
Rationale:
In insurance contracts, the insurer’s consideration is the promise to pay covered losses, while
the insured’s consideration is the premium payment.
3.
Question:
The interest of the insured and all other persons in the property involved in a claim is found in:
Answer:
A Proof of Loss
Rationale:
A Proof of Loss lists the insured’s interest and any other parties (such as lienholders) with an
interest in the property.
,4.
Question:
An insured rear-ends another driver's vehicle. The auto policy that pays damages to repair the
damaged vehicle is a ?
Answer:
Liability Policy
Rationale:
Auto liability coverage pays damages the insured becomes legally responsible for causing to
others, including property damage.
5.
Question:
Your insurance company wrote an auto insurance binder for an owner who said that he did not
have any prior accidents. Immediately thereafter it was discovered that he did not tell the truth.
The company now wants to cancel the binder as quickly as possible. What is true?
Answer:
5 days notice required
Rationale:
Florida law generally requires written notice before cancellation of a binder, typically
allowing a short notice period.
6.
Question:
For insurance to pay damages, an insurable interest must exist:
Answer:
When the loss takes place
Rationale:
Insurable interest must exist at the time of the loss for property insurance claims to be valid.
,7.
Question:
Texting while driving is best described as a:
Answer:
Hazard
Rationale:
A hazard increases the chance of loss occurring.
8.
Question:
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of $200,000.
Both policies are pro-rata policies. How much will policy B pay for this loss?
Answer:
$60,000
Rationale:
Pro-rata sharing is based on policy limits.
Total coverage = $300,000
Policy B share = 200,,000 = 2/3
2/3 × 90,000 = $60,000
9.
Question:
I sold my home yesterday, signed a deed and transferred title. Last night there was a house fire. I
had not yet cancelled my homeowner's insurance. The purchaser also had a homeowner's policy.
Which policy should pay to pay the claim?
Answer:
Purchaser's policy
Rationale:
Insurable interest transferred to the new owner when title transferred.
, 10.
Question:
Giving prompt notice of loss is best described as a policy:
Answer:
Condition
Rationale:
Conditions describe duties the insured must perform after a loss.
11.
Question:
If there is a total loss by an insured peril to a FL building, the insurer must pay:
Answer:
Actual Cash Value
Rationale:
Unless replacement cost conditions are met, payment is generally ACV.
Section 2: Policy Clauses, Loss Valuation, and Legal
Concepts
12.
Question:
A Loss Payable Clause refers to:
Answer:
Lenders interest in personal property
Rationale:
Loss Payable Clauses protect lienholders or lenders who have financial interest in insured
property.
13.
