An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of - ANSWER
The insured and insurer
An insurer gives which of the following as Consideration for an insurance policy? - AN-
SWER A Promise
The interest of the insured and all other persons in the property involved in a claim is
found in - ANSWER A Proof of Loss
An insured rear-ends another driver's vehicle. The auto policy that pays damages to
repair the damaged vehicle is a _______? - ANSWER Liability Policy
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
For insurance to pay damages, an insurable interest must exist: - ANSWER When the loss
takes place
Texting while driving is best described as a: - ANSWER Hazard
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of
1
,$200,000. Both policies are pro-rata policies. How much will policy B pay for this loss? - AN-
SWER $60,000
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
Giving prompt notice of loss is best described as a policy: - ANSWER Condition
If there is a total loss by an insured peril to a FL building, the insurer must pay: - ANSWER
Actual Cash Value
A Loss Payable Clause refers to - ANSWER Lenders interest in personal property
My coin collection was appraised and my insurance company specifically insured the
valued of that collection. That is an example of: - ANSWER A Valued Policy
An insurance contract is based on the Principle of: - ANSWER Utmost Good Faith
The two kinds of waivers are: - ANSWER express and implied
Proximate Cause is the unbroken connection between the occurrence and ____ that
grows out of the occurrence. - ANSWER Damages
Which loss settlement valuation may be a violation of the Principle of Indemnity? - AN-
SWER Replacement Cost
2
, If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the
value of the property is $100,000, what loss amount will the insurer pay? - ANSWER
$45,000
The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If
a hurricane loss of $6,000 occurs to the home that is valued and insured for $100,000,
how much will the policy pay? - ANSWER $1,000
A waiver is defined as - ANSWER Giving up a known right voluntarily
An insured signs a release to settle a claim. In the event the insured discovers injuries
or damages that were unknown at the time of settlement, what is generally true? - AN-
SWER Release extinguished all causes of action
Which of the following is not a tort: - ANSWER Breach of contract
The type of damages that pays medical bills is known as: - ANSWER Special
A marine policy has a $1 million limit and a $100,000 franchise deductible. A covered
loss is $110,000. How much will the policy pay? - ANSWER $110,000
Which of the following is NOT included in a proof of loss? - ANSWER Replacement cost of
each item
Property and Liability policies cover: - ANSWER Persons
What type of tort arises from a negligent act? - ANSWER Unintentional
3
The insured and insurer
An insurer gives which of the following as Consideration for an insurance policy? - AN-
SWER A Promise
The interest of the insured and all other persons in the property involved in a claim is
found in - ANSWER A Proof of Loss
An insured rear-ends another driver's vehicle. The auto policy that pays damages to
repair the damaged vehicle is a _______? - ANSWER Liability Policy
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
For insurance to pay damages, an insurable interest must exist: - ANSWER When the loss
takes place
Texting while driving is best described as a: - ANSWER Hazard
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of
1
,$200,000. Both policies are pro-rata policies. How much will policy B pay for this loss? - AN-
SWER $60,000
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
Giving prompt notice of loss is best described as a policy: - ANSWER Condition
If there is a total loss by an insured peril to a FL building, the insurer must pay: - ANSWER
Actual Cash Value
A Loss Payable Clause refers to - ANSWER Lenders interest in personal property
My coin collection was appraised and my insurance company specifically insured the
valued of that collection. That is an example of: - ANSWER A Valued Policy
An insurance contract is based on the Principle of: - ANSWER Utmost Good Faith
The two kinds of waivers are: - ANSWER express and implied
Proximate Cause is the unbroken connection between the occurrence and ____ that
grows out of the occurrence. - ANSWER Damages
Which loss settlement valuation may be a violation of the Principle of Indemnity? - AN-
SWER Replacement Cost
2
, If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the
value of the property is $100,000, what loss amount will the insurer pay? - ANSWER
$45,000
The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If
a hurricane loss of $6,000 occurs to the home that is valued and insured for $100,000,
how much will the policy pay? - ANSWER $1,000
A waiver is defined as - ANSWER Giving up a known right voluntarily
An insured signs a release to settle a claim. In the event the insured discovers injuries
or damages that were unknown at the time of settlement, what is generally true? - AN-
SWER Release extinguished all causes of action
Which of the following is not a tort: - ANSWER Breach of contract
The type of damages that pays medical bills is known as: - ANSWER Special
A marine policy has a $1 million limit and a $100,000 franchise deductible. A covered
loss is $110,000. How much will the policy pay? - ANSWER $110,000
Which of the following is NOT included in a proof of loss? - ANSWER Replacement cost of
each item
Property and Liability policies cover: - ANSWER Persons
What type of tort arises from a negligent act? - ANSWER Unintentional
3
