Claims Adjuster (Florida)| 120 questions|
with complete solutions
Frank owned a home that was destroyed by a hurricane. Both TD Bank and Bank of America
were listed as additional interests on his homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, TD Bank
B. The Insured
C. Jointly to TD Bank and Bank of America
D. All listed interests Correct Answer: D. All listed interests
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 Correct Answer: A. Severability
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 Correct Answer: B. Abandonment
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 Correct Answer: D. Insurable Interest
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 Correct Answer: D. Liberalization
Time frame is typically 60 days
The __________ states that when there is an unbroken connection between an occurrence and
damage that grows out of the occurrence, then the resultant 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 Correct Answer: D. Doctrine of Property Insurance
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
D. None of the Above Correct Answer: A. Actual Cash Value
A policy condition, either based on information in the insured's application or inserted by the
insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above Correct Answer: A. Warranty
The following are basic characteristics of a property or liability insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion Correct Answer: C. Loss of Settlement Contract
The Insurer's responsibility to pay for a property loss may be conditioned on the insured having
used reasonable means to avoid the loss, to protect the property against further loss, and to give
the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above Correct Answer: A. Conditional Contract
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 Correct Answer: B. Temporary Injury of the
Insured
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 Correct Answer: A. 36 Months/36,000 Miles
Used Vehicles: 12 Months/12,000 Miles
, 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
D. None of the Above Correct Answer: C. Both A & B
As to required proof for future accidents by purchase of auto liability insurance, 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 Correct Answer: B. 3
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 Correct Answer: B. The Trailer Interchange Coverage
Form
Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property Correct Answer: A. 10,000
10/20/10
Used to insure businesses engaged in selling, servicing, repairing, parking or storing
automobiles:
A. Servicing Coverage Form
B. Garage Coverage Form
C. Truckers Coverage Form
D. None of the Above Correct Answer: B. Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10.
A. Split
B. Single
C. Straight
D. None of the Above Correct Answer: A. Split
10/20/10 =10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
with complete solutions
Frank owned a home that was destroyed by a hurricane. Both TD Bank and Bank of America
were listed as additional interests on his homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, TD Bank
B. The Insured
C. Jointly to TD Bank and Bank of America
D. All listed interests Correct Answer: D. All listed interests
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 Correct Answer: A. Severability
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 Correct Answer: B. Abandonment
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 Correct Answer: D. Insurable Interest
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 Correct Answer: D. Liberalization
Time frame is typically 60 days
The __________ states that when there is an unbroken connection between an occurrence and
damage that grows out of the occurrence, then the resultant 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 Correct Answer: D. Doctrine of Property Insurance
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
D. None of the Above Correct Answer: A. Actual Cash Value
A policy condition, either based on information in the insured's application or inserted by the
insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above Correct Answer: A. Warranty
The following are basic characteristics of a property or liability insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion Correct Answer: C. Loss of Settlement Contract
The Insurer's responsibility to pay for a property loss may be conditioned on the insured having
used reasonable means to avoid the loss, to protect the property against further loss, and to give
the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above Correct Answer: A. Conditional Contract
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 Correct Answer: B. Temporary Injury of the
Insured
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 Correct Answer: A. 36 Months/36,000 Miles
Used Vehicles: 12 Months/12,000 Miles
, 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
D. None of the Above Correct Answer: C. Both A & B
As to required proof for future accidents by purchase of auto liability insurance, 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 Correct Answer: B. 3
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 Correct Answer: B. The Trailer Interchange Coverage
Form
Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property Correct Answer: A. 10,000
10/20/10
Used to insure businesses engaged in selling, servicing, repairing, parking or storing
automobiles:
A. Servicing Coverage Form
B. Garage Coverage Form
C. Truckers Coverage Form
D. None of the Above Correct Answer: B. Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10.
A. Split
B. Single
C. Straight
D. None of the Above Correct Answer: A. Split
10/20/10 =10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
