Claims Adjuster's Exam (FL) Questions
and Answers
All of the following describe insurable interest EXCEPT - Correct Answer: -Insurable Interest must exist at
the time of the loss.
-Insurance Interest must exist for insurance to respond.
*Show a similarity between insurance and wagering*
-The insured would suffer an economic loss.
An Insurance Policy is a contract with all of the following characteristics, EXCEPT - Correct Answer: -It is a
personal contract.
-Parties are of unequal power with ambiguities or unclear wording resolved in favor of the insured
because it is a contract of adhesion.
*Indemnity is not part of an insurance contract*
-There are conditions imposed upon both the insurer and insured.
An insurance contract may contain a "gray area" or an ambiguity, that is generally resolved in favor of the
insured because insurance policies are contracts of: - Correct Answer: -Indemnity
-Cohesion
*Adhesion*
-Conditions
If an insured sells his car to another person, the buyer may be prohibited from also receiving the
insured's policy. This is because the insurance contract is a contract of: - Correct Answer: *Personal
nature*
-Indemnity
-Adhesion
-Actual cash value
Strict or absolute liability: - Correct Answer: -applies to school systems.
, -must have failure to use "due care."
-considers the actions of a prudent person.
*is assigned by law or statute*
Jack and Connie - both 50 years old and of sound mind - agree to have Jack burn down Connie's house
for $10,000. What element of a valid contract is missing? - Correct Answer: *Legal purpose*
Competent parties
Consideration
Agreement of the parties
Risks that are insurable are: - Correct Answer: Speculative risk
*Pure risk*
Both A & B
None of the above
Insurance that covers the responsibility for loss arising out of policy holder's negligence - that results in
payment to a party other than the insured is: - Correct Answer: Not available in Florida insurance policies
Fourth party claims
Standard property insurance
*Liability*
The goal of insurance is to restore the insured to the same economic position as before the covered loss
occurred, this is the principle of: - Correct Answer: Adhesion
Actual Cash Value
*Indemnity*
Severability
Liability limits may be expressed as a: - Correct Answer: -Aggregate Limit
-Split Limit
-Single Limit
and Answers
All of the following describe insurable interest EXCEPT - Correct Answer: -Insurable Interest must exist at
the time of the loss.
-Insurance Interest must exist for insurance to respond.
*Show a similarity between insurance and wagering*
-The insured would suffer an economic loss.
An Insurance Policy is a contract with all of the following characteristics, EXCEPT - Correct Answer: -It is a
personal contract.
-Parties are of unequal power with ambiguities or unclear wording resolved in favor of the insured
because it is a contract of adhesion.
*Indemnity is not part of an insurance contract*
-There are conditions imposed upon both the insurer and insured.
An insurance contract may contain a "gray area" or an ambiguity, that is generally resolved in favor of the
insured because insurance policies are contracts of: - Correct Answer: -Indemnity
-Cohesion
*Adhesion*
-Conditions
If an insured sells his car to another person, the buyer may be prohibited from also receiving the
insured's policy. This is because the insurance contract is a contract of: - Correct Answer: *Personal
nature*
-Indemnity
-Adhesion
-Actual cash value
Strict or absolute liability: - Correct Answer: -applies to school systems.
, -must have failure to use "due care."
-considers the actions of a prudent person.
*is assigned by law or statute*
Jack and Connie - both 50 years old and of sound mind - agree to have Jack burn down Connie's house
for $10,000. What element of a valid contract is missing? - Correct Answer: *Legal purpose*
Competent parties
Consideration
Agreement of the parties
Risks that are insurable are: - Correct Answer: Speculative risk
*Pure risk*
Both A & B
None of the above
Insurance that covers the responsibility for loss arising out of policy holder's negligence - that results in
payment to a party other than the insured is: - Correct Answer: Not available in Florida insurance policies
Fourth party claims
Standard property insurance
*Liability*
The goal of insurance is to restore the insured to the same economic position as before the covered loss
occurred, this is the principle of: - Correct Answer: Adhesion
Actual Cash Value
*Indemnity*
Severability
Liability limits may be expressed as a: - Correct Answer: -Aggregate Limit
-Split Limit
-Single Limit
