FL Adjusters License Practice Exams| 130
QUESTIONS| WELL ANSWERED(43 PAGES)
Which of the following is NOT one of the four critical elements of a contract?
(A) A mutual understanding and agreement with the terms of the contract.
(B) Written evidence of the agreement and its terms.
(C)A legal purpose.
(D)Consideration, consisting of money or a promise of performance. Correct Answer: (B)
Written evidence of the agreement and its terms.
Assume that five years ago a couple insured their home for [its then appraised value of] $60,000.
Two weeks ago they had a stove fire resulting in an estimated loss of $15,000 for repairs. The
adjuster finds that the value of their home is now $100,000, but the home is still only insured for
$60,000 and has a deductible of $500. The policy has an 80% coinsurance clause. How much
should the adjuster pay to the couple?
(A) $11,500
(B) $10,875
(C) $14,500
(D) $15,000 Correct Answer: (B) $10,875
Negligence is described as:
(A)Liability imposed by jury verdict.
(B) Liability arising from statutorily imposed liability regardless of fault.
(C) Fault that arises from doing something you shouldn't have done, or not doing something you
should have done.
(D) Fault imposed on you because you have a greater ability to pay. Correct Answer: (C) Fault
that arises from doing something you shouldn't have done, or not doing something you should
have done.
Describe the coverage's provided in a split limit policy of 10/20/10.
(A) The coverage provides $10,000 in property damage limits, $20,000 in bodily injury for any
one individual, and $10,000 for bodily injuries to each additional person injured.
,(B) The coverage provides $10,000 for bodily injury to one individual, $20,000 for property
damage, and $10,000 for bodily injuries to each additional person injured.
(C) The coverage provides up to $10,000 of liability protection for bodily injury to any one
individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals,
and $10,000 for medical payments coverage for the insured's bodily injury.
(D) The coverage provides up to $10,000 of liability protection for bodily injury to any one
individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals,
and $10,000 for property damage. Correct Answer: (D) The coverage provides up to $10,000 of
liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily
injuries regardless of how many individuals, and $10,000 for property damage.
A couple has insured their home for $150,000. A fire ensues and guts their home, resulting in a
total loss. An appraisal of the home prior to loss results in a value of $120,000, yet the adjuster is
required by law to pay the couple $150,000. This is known as the application of:
(A)The valued policy law.
(B) Payment of policy limits plus a penalty for over-insuring the home.
(C) Replacement cost value
(D) Actual cash value Correct Answer: (A)The valued policy law.
Which of the following would not be a preferred claims practice or behavior under Florida's
Unfair Insurance Trade Practices Act?
(A) Not responding to an insured's calls because you haven't made up your mind yet.
(B) Sending a letter to a claimant explaining why you can't pay their claim, or offering a
compromise based on specific facts and legal issues.
(C) Contacting a witness the day after receiving the claim and getting additional facts about the
accident.
(D) Contacting an insured or claimant immediately upon receipt of a claim for property damage
or bodily injury. Correct Answer: (A) Not responding to an insured's calls because you haven't
made up your mind yet.
The doctrine of proximate cause is defined as:
(A) The proximity of a loss to an insured location.
(B) The physical link between one insured loss and another.
,(C) The primary reason for an event or accident.
(D) 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. Correct Answer: (D) 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.
Once an adjuster is licensed, he or she must maintain a continuing education requirement. Select
from the following an adjuster's compliance requirement in order to stay licensed:
(A) A newly licensed adjuster must complete 24 hours of continuing education in every two year
compliance period, of which 5 hours must be taken in a properly certified 5 Hour Law & Ethics
Update course.
(B) An adjuster has to complete 28 hours of continuing education in every two year compliance
requirement in the following categories: 12 Law, 2 Ethics and 14 Optional.
(C) An adjuster must complete 30 hours of continuing education on Florida law every two years
immediately following licensure.
(D) Only independent adjusters are required to take continuing education. Adjusters who work
for insurance companies do not. Correct Answer: (A) A newly licensed adjuster must complete
24 hours of continuing education in every two year compliance period, of which 5 hours must be
taken in a properly certified 5 Hour Law & Ethics Update course.
Which of the following is NOT an example of "compensatory damages":
(A) Wages lost by the injured party due to inability to work because of injuries sustained in an
accident.
(B)Pain and suffering
(C) Medical bills for treatment of injuries sustained in an accident.
(D) A jury verdict of $1,000,000 against the defendant to punish them for their reprehensible
actions in causing the loss. Correct Answer: (D) A jury verdict of $1,000,000 against the
defendant to punish them for their reprehensible actions in causing the loss.
The basic and primary functions of an adjuster are:
(A) Processing and filing mail.
(B) Filing special forms for the insurance company and regulatory bodies.
, (C) Investigating, managing, evaluating, reporting on, and negotiating and disposing of claims.
(D) Making payments and recording claim status claims for property damage, vehicle repairs,
damages, medical bills, wage loss and compensation. Correct Answer: (C) Investigating,
managing, evaluating, reporting on, and negotiating and disposing of claims.
The Adjuster's Code of Ethics starts with a basic premise which states:
(A) The work of adjusting engages the public trust.
(B) Not attempting in good faith to settle claims when it could and should have done so may
subject an adjuster to direct liability for bad faith claims practices.
(C) It is important for an adjuster to avoid violations of the Unfair Trade Practices Act. The
insurer, on whose behalf the adjuster performs, may be subjected to administrative penalties if
the adjuster commits an infraction.
(D) Any person who is damaged by certain adjuster practices is granted a right to sue the
adjuster. Correct Answer: (A) The work of adjusting engages the public trust.
Which of the following statements is NOT true?
(A) 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.
(B) If a lawsuit is filed and served upon an insured, the insured must immediately tender the
lawsuit to the insurer or it may jeopardize the carrier's ability to defend the claim, and the
insured's rights to coverage under the policy.
(C) A carrier has the right, but not the duty, to settle any claim if it deems reasonable and prudent
to do so.
(D) Under a liability insurance policy, a carrier's duty to defend is greater than its duty to pay.
Correct Answer: (A) 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.
The fundamental difference in adjusting claims in the healthcare industry and in the
property/casualty (i.e. workers' compensation, liability, etc.) industry is:
(A) You serve the interests of not just one, but many different employers.
(B) The property and casualty industry is much more complex and litigious.
(C) The pay is not as good in the healthcare insurance industry.
QUESTIONS| WELL ANSWERED(43 PAGES)
Which of the following is NOT one of the four critical elements of a contract?
(A) A mutual understanding and agreement with the terms of the contract.
(B) Written evidence of the agreement and its terms.
(C)A legal purpose.
(D)Consideration, consisting of money or a promise of performance. Correct Answer: (B)
Written evidence of the agreement and its terms.
Assume that five years ago a couple insured their home for [its then appraised value of] $60,000.
Two weeks ago they had a stove fire resulting in an estimated loss of $15,000 for repairs. The
adjuster finds that the value of their home is now $100,000, but the home is still only insured for
$60,000 and has a deductible of $500. The policy has an 80% coinsurance clause. How much
should the adjuster pay to the couple?
(A) $11,500
(B) $10,875
(C) $14,500
(D) $15,000 Correct Answer: (B) $10,875
Negligence is described as:
(A)Liability imposed by jury verdict.
(B) Liability arising from statutorily imposed liability regardless of fault.
(C) Fault that arises from doing something you shouldn't have done, or not doing something you
should have done.
(D) Fault imposed on you because you have a greater ability to pay. Correct Answer: (C) Fault
that arises from doing something you shouldn't have done, or not doing something you should
have done.
Describe the coverage's provided in a split limit policy of 10/20/10.
(A) The coverage provides $10,000 in property damage limits, $20,000 in bodily injury for any
one individual, and $10,000 for bodily injuries to each additional person injured.
,(B) The coverage provides $10,000 for bodily injury to one individual, $20,000 for property
damage, and $10,000 for bodily injuries to each additional person injured.
(C) The coverage provides up to $10,000 of liability protection for bodily injury to any one
individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals,
and $10,000 for medical payments coverage for the insured's bodily injury.
(D) The coverage provides up to $10,000 of liability protection for bodily injury to any one
individual, an aggregate of $20,000 for all bodily injuries regardless of how many individuals,
and $10,000 for property damage. Correct Answer: (D) The coverage provides up to $10,000 of
liability protection for bodily injury to any one individual, an aggregate of $20,000 for all bodily
injuries regardless of how many individuals, and $10,000 for property damage.
A couple has insured their home for $150,000. A fire ensues and guts their home, resulting in a
total loss. An appraisal of the home prior to loss results in a value of $120,000, yet the adjuster is
required by law to pay the couple $150,000. This is known as the application of:
(A)The valued policy law.
(B) Payment of policy limits plus a penalty for over-insuring the home.
(C) Replacement cost value
(D) Actual cash value Correct Answer: (A)The valued policy law.
Which of the following would not be a preferred claims practice or behavior under Florida's
Unfair Insurance Trade Practices Act?
(A) Not responding to an insured's calls because you haven't made up your mind yet.
(B) Sending a letter to a claimant explaining why you can't pay their claim, or offering a
compromise based on specific facts and legal issues.
(C) Contacting a witness the day after receiving the claim and getting additional facts about the
accident.
(D) Contacting an insured or claimant immediately upon receipt of a claim for property damage
or bodily injury. Correct Answer: (A) Not responding to an insured's calls because you haven't
made up your mind yet.
The doctrine of proximate cause is defined as:
(A) The proximity of a loss to an insured location.
(B) The physical link between one insured loss and another.
,(C) The primary reason for an event or accident.
(D) 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. Correct Answer: (D) 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.
Once an adjuster is licensed, he or she must maintain a continuing education requirement. Select
from the following an adjuster's compliance requirement in order to stay licensed:
(A) A newly licensed adjuster must complete 24 hours of continuing education in every two year
compliance period, of which 5 hours must be taken in a properly certified 5 Hour Law & Ethics
Update course.
(B) An adjuster has to complete 28 hours of continuing education in every two year compliance
requirement in the following categories: 12 Law, 2 Ethics and 14 Optional.
(C) An adjuster must complete 30 hours of continuing education on Florida law every two years
immediately following licensure.
(D) Only independent adjusters are required to take continuing education. Adjusters who work
for insurance companies do not. Correct Answer: (A) A newly licensed adjuster must complete
24 hours of continuing education in every two year compliance period, of which 5 hours must be
taken in a properly certified 5 Hour Law & Ethics Update course.
Which of the following is NOT an example of "compensatory damages":
(A) Wages lost by the injured party due to inability to work because of injuries sustained in an
accident.
(B)Pain and suffering
(C) Medical bills for treatment of injuries sustained in an accident.
(D) A jury verdict of $1,000,000 against the defendant to punish them for their reprehensible
actions in causing the loss. Correct Answer: (D) A jury verdict of $1,000,000 against the
defendant to punish them for their reprehensible actions in causing the loss.
The basic and primary functions of an adjuster are:
(A) Processing and filing mail.
(B) Filing special forms for the insurance company and regulatory bodies.
, (C) Investigating, managing, evaluating, reporting on, and negotiating and disposing of claims.
(D) Making payments and recording claim status claims for property damage, vehicle repairs,
damages, medical bills, wage loss and compensation. Correct Answer: (C) Investigating,
managing, evaluating, reporting on, and negotiating and disposing of claims.
The Adjuster's Code of Ethics starts with a basic premise which states:
(A) The work of adjusting engages the public trust.
(B) Not attempting in good faith to settle claims when it could and should have done so may
subject an adjuster to direct liability for bad faith claims practices.
(C) It is important for an adjuster to avoid violations of the Unfair Trade Practices Act. The
insurer, on whose behalf the adjuster performs, may be subjected to administrative penalties if
the adjuster commits an infraction.
(D) Any person who is damaged by certain adjuster practices is granted a right to sue the
adjuster. Correct Answer: (A) The work of adjusting engages the public trust.
Which of the following statements is NOT true?
(A) 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.
(B) If a lawsuit is filed and served upon an insured, the insured must immediately tender the
lawsuit to the insurer or it may jeopardize the carrier's ability to defend the claim, and the
insured's rights to coverage under the policy.
(C) A carrier has the right, but not the duty, to settle any claim if it deems reasonable and prudent
to do so.
(D) Under a liability insurance policy, a carrier's duty to defend is greater than its duty to pay.
Correct Answer: (A) 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.
The fundamental difference in adjusting claims in the healthcare industry and in the
property/casualty (i.e. workers' compensation, liability, etc.) industry is:
(A) You serve the interests of not just one, but many different employers.
(B) The property and casualty industry is much more complex and litigious.
(C) The pay is not as good in the healthcare insurance industry.
