Claims Adjuster (Florida)| 206 questions| with
complete solutions
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ
Banks were listed as additional interests on his homeowner policy. The
insurance company will make a payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - Correct Answer -D. All listed interests
Remember that the insurer is not responsible to know the degrees of
interest. In the event of a loss, one payment is made by the insurer and it is
up to the additional interests on working out their share.
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
The 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 -A. Doctrine of Proximate
Cause
For example, if a property insurance policy covers the peril of fire but further
damage is caused by smoke, water used to extinguish, and the process of
moving property away - fire is considered to be the *proximate cause* of all
of the damage.
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
"may be conditioned"
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
Also included: permanent injury other than scarring and disfigurement
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
, 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
Jeremy has a not at fault accident. If he has PIP with a $1,000 deductible,
how much can he expect his PIP coverage to pay toward his medical bills
that total $3,000?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - Correct Answer -A. $1,600
3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
Frank has a not-at-fault accident, he has basic PIP, no deductible and Med
pay of $5,000. How much will his Med Pay contribute to medical bills of
$15,000?
A. $15,000
B. $5,000
C. $3,000
D. $0, Frank is not-at-fault - Correct Answer -B. $5,000
Medical Payment limits apply per person; Frank will receive full amount
towards medical bills.
Which of the following is not one of the rating factors for a Homeowner's
Policy?
A. Type of Construction
B. Location of Risk
C. Age & Gender of Insured
D. Proximity to Fire Department - Correct Answer -C. Age & Gender of Insured
complete solutions
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ
Banks were listed as additional interests on his homeowner policy. The
insurance company will make a payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - Correct Answer -D. All listed interests
Remember that the insurer is not responsible to know the degrees of
interest. In the event of a loss, one payment is made by the insurer and it is
up to the additional interests on working out their share.
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
The 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 -A. Doctrine of Proximate
Cause
For example, if a property insurance policy covers the peril of fire but further
damage is caused by smoke, water used to extinguish, and the process of
moving property away - fire is considered to be the *proximate cause* of all
of the damage.
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
"may be conditioned"
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
Also included: permanent injury other than scarring and disfigurement
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
, 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
Jeremy has a not at fault accident. If he has PIP with a $1,000 deductible,
how much can he expect his PIP coverage to pay toward his medical bills
that total $3,000?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - Correct Answer -A. $1,600
3000 (bills) - 1000 (deductible) =
2000 x .80 (eighty percent)
Frank has a not-at-fault accident, he has basic PIP, no deductible and Med
pay of $5,000. How much will his Med Pay contribute to medical bills of
$15,000?
A. $15,000
B. $5,000
C. $3,000
D. $0, Frank is not-at-fault - Correct Answer -B. $5,000
Medical Payment limits apply per person; Frank will receive full amount
towards medical bills.
Which of the following is not one of the rating factors for a Homeowner's
Policy?
A. Type of Construction
B. Location of Risk
C. Age & Gender of Insured
D. Proximity to Fire Department - Correct Answer -C. Age & Gender of Insured
