FL Adjuster Practice Test Exam (245 Questions with
Correct Answers) Graded A+
What requirements must Wholesalers and Distributors meet in order to be eligible for
a BOP? - Correct answer 25% or less of floor space is available to the general public,
and less than 25% of gross income may come from retail sales.
The first step in the claim process is to - Correct answer determining time and cost of
repairs
In Florida, an insurer has ___ days to pay or deny a claim. - Correct answer 90
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit
him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued
ABC Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with
a General Aggregate of $750,000 and a per occurrence limit of $250,000, what is the
maximum that ABC's insurer will pay for Jerome's injuries? - Correct answer
$250,000
Which of the following best describes inland marine insurance? - Correct answer
Insurance designed to protect property being transported on land and property
related to transportation
A plane was damaged while being towed by another vehicle. By policy definition, this
damage is considered to have occurred while the aircraft was: - Correct answer not
in motion
Citizens Insurance - Correct answer is available to certain people who are not
residents of Florida.
This provision in Ocean Marine insurance obligates insurers of various interests to
share the cost of losses associated with a captain's decision to voluntarily sacrifice a
part of the ship or its cargo. - Correct answer General Average
Walter works for a shipping company, delivering packages and picking up orders. He
lives very close to work and the grocery store is only a few blocks away, so he can
live conveniently without owning a car. However, he would like to have some
Personal Injury Protection, just in case he ever gets injured in an accident. Which
BAP endorsement could his employer use to give him this coverage? - Correct
answer Named Individuals Broadened PIP
Which of the following is NOT a rating factor for a personal auto liability policy? -
Correct answer the condition of the vehicle
Phil heads over to visit his friend Josh, who is sick with the flu. While at the house,
Josh fails to cover his mouth when he coughs and Phil ends up contacting the flu.
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, Phil files a claim with Josh's insurer for medical expenses and lost income while Phil
is out sick from work. The insurer denies the claim because - Correct answer disease
transmitted from the insured to a third party is excluded.
Jerrod owns two planes and has liability insurance with the following limits:
Bodily Injury Excluding Passengers: $250,000/person; $500,000/occurrence
Passenger Bodily Injury: $250,000/person; $750,000/occurrence
Property Damage: $500,000/occurrence.
When Jerrod crashes into a car while landing his plane, he injures the two people in
the car and completely wrecks the car. The first person in the car suffers $200,000 in
injuries, and the second person suffers $300,000 in injuries. Replacing the car costs
$45,000. Without taking deductibles into account, how much will Jerrod have to pay
out of his own pocket? - Correct answer 50,000
Which of the following endorsements is mandatory for all Florida residential property
policies? - Correct answer Catastrophic ground collapse
Maria was in the hospital for five days, recovering from a stroke. The bill she received
for her hospital stay broke down the charges for room, lab fees, meals, and nursing
care. However, her insurer paid a flat daily rate and she was left responsible for
paying the remaining charges. What type of insurance does Maria have? - Correct
answer Hospital Indemnity insurance
ABC Roofing has two CGL policies that cover the same losses. Both policies are
occurrence forms, thus pay out on a pro rata basis. The first policy is through KLM
Insurance and has a limit of $300,000. The second is through XYZ Mutual, with a
limit of $600,000. One day, ABC Roofing suffers an occurrence resulting in a
$150,000 covered loss. How will this loss be indemnified? - Correct answer KLM
Insurance will pay $50,000; XYZ Mutual will pay $100,000
Florida Insurance Code states the qualifications required to become a licensed
insurance adjuster in the state of Florida. Which of the following is NOT one of the
requirements for applicants? - Correct answer Spend 20 hours in the field working
with a licensed insurance adjuster
Which of the following automobile components is NOT covered by a Mechanical
Breakdown Insurance policy? - Correct answer Tires
Dr. Smith has a claims-made malpractice insurance policy with a policy period from
June 30, 2006 to June 30, 2007. Which claim would trigger this policy? - Correct
answer a claims-made policy covers claims initiated during the policy period. In this
situation, that would include claims filed between June 30, 2006 and 30, 2007.
Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set
to expire on May 31. Which of the following statements is TRUE? - Correct answer
Lemon Insurance must notify Hugh at least 45 days before the policy expires.
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, Which of these statements is true? - Correct answer Flood insurance is always
backed by the National Flood Insurance Program.
Which of the following is TRUE about workers' compensation insurance? - Correct
answer it benefits both the employee and the employer.
Martin works as an accountant for Smith Manufacturing. Smith Manufacturing has
tasked Martin with finding an insurance provider to meet the company's needs, so
Martin interviews several insurers. At the end of one interview with PRO Insurance,
the insurance representative hands Martin an envelope containing $5,000 in cash, on
the condition that Smith Manufacturing selects PRO Insurance as its insurance
provider. What would we call the $5,000 in cash? - Correct answer a kickback
In a declaratory judgment action: - Correct answer the court decides the legal rights
of both parties.
When discussing farm insurance, which of the following most accurately describes
"scheduled property"? - Correct answer Itemized property
According to the "Definitions" section of a Personal Auto Policy, which of the
following is NOT "occupying" her vehicle? - Correct answer Rachel leaves her cat in
her car, with the windows cracked, while she goes into the drugstore to fill a
prescription
Which characteristic would prohibit a convenience store/gas station from purchasing
a BOP? - Correct answer the operation of a car wash
A ___________ is a law set forth by a governing body such as a state or city. -
Correct answer statutory law
Ron's truck experiences a mechanical breakdown and he has it towed to an auto
repair facility. Upon further examination of Ron's claim, his Mechanical Breakdown
Insurance provider denies coverage. Which of the following would be a valid reason
for this denial? - Correct answer Ron had been hauling a large boat, which
overloaded the vehicle and caused the breakdown.
Greta's Ski Supply is covered under the Building and Personal Property Coverage
Form with limits of $50,000 for business personal property and $100,000 for the
building. The policy also has a $500 deductible. When a tornado tears through the
vicinity, the store suffered $10,000 in damage to the building and $20,000 in losses
to the contents. In addition, Greta has to fork out an extra $1,000 for debris removal.
How much will Greta receive from her insurer? - Correct answer 30,500
Which of the following is NOT excluded from coverage under a Mechanical
Breakdown Insurance policy? - Correct answer Breakdown due to the cracking of an
engine block
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Correct Answers) Graded A+
What requirements must Wholesalers and Distributors meet in order to be eligible for
a BOP? - Correct answer 25% or less of floor space is available to the general public,
and less than 25% of gross income may come from retail sales.
The first step in the claim process is to - Correct answer determining time and cost of
repairs
In Florida, an insurer has ___ days to pay or deny a claim. - Correct answer 90
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit
him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued
ABC Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with
a General Aggregate of $750,000 and a per occurrence limit of $250,000, what is the
maximum that ABC's insurer will pay for Jerome's injuries? - Correct answer
$250,000
Which of the following best describes inland marine insurance? - Correct answer
Insurance designed to protect property being transported on land and property
related to transportation
A plane was damaged while being towed by another vehicle. By policy definition, this
damage is considered to have occurred while the aircraft was: - Correct answer not
in motion
Citizens Insurance - Correct answer is available to certain people who are not
residents of Florida.
This provision in Ocean Marine insurance obligates insurers of various interests to
share the cost of losses associated with a captain's decision to voluntarily sacrifice a
part of the ship or its cargo. - Correct answer General Average
Walter works for a shipping company, delivering packages and picking up orders. He
lives very close to work and the grocery store is only a few blocks away, so he can
live conveniently without owning a car. However, he would like to have some
Personal Injury Protection, just in case he ever gets injured in an accident. Which
BAP endorsement could his employer use to give him this coverage? - Correct
answer Named Individuals Broadened PIP
Which of the following is NOT a rating factor for a personal auto liability policy? -
Correct answer the condition of the vehicle
Phil heads over to visit his friend Josh, who is sick with the flu. While at the house,
Josh fails to cover his mouth when he coughs and Phil ends up contacting the flu.
P a g e 1 | 24
, Phil files a claim with Josh's insurer for medical expenses and lost income while Phil
is out sick from work. The insurer denies the claim because - Correct answer disease
transmitted from the insured to a third party is excluded.
Jerrod owns two planes and has liability insurance with the following limits:
Bodily Injury Excluding Passengers: $250,000/person; $500,000/occurrence
Passenger Bodily Injury: $250,000/person; $750,000/occurrence
Property Damage: $500,000/occurrence.
When Jerrod crashes into a car while landing his plane, he injures the two people in
the car and completely wrecks the car. The first person in the car suffers $200,000 in
injuries, and the second person suffers $300,000 in injuries. Replacing the car costs
$45,000. Without taking deductibles into account, how much will Jerrod have to pay
out of his own pocket? - Correct answer 50,000
Which of the following endorsements is mandatory for all Florida residential property
policies? - Correct answer Catastrophic ground collapse
Maria was in the hospital for five days, recovering from a stroke. The bill she received
for her hospital stay broke down the charges for room, lab fees, meals, and nursing
care. However, her insurer paid a flat daily rate and she was left responsible for
paying the remaining charges. What type of insurance does Maria have? - Correct
answer Hospital Indemnity insurance
ABC Roofing has two CGL policies that cover the same losses. Both policies are
occurrence forms, thus pay out on a pro rata basis. The first policy is through KLM
Insurance and has a limit of $300,000. The second is through XYZ Mutual, with a
limit of $600,000. One day, ABC Roofing suffers an occurrence resulting in a
$150,000 covered loss. How will this loss be indemnified? - Correct answer KLM
Insurance will pay $50,000; XYZ Mutual will pay $100,000
Florida Insurance Code states the qualifications required to become a licensed
insurance adjuster in the state of Florida. Which of the following is NOT one of the
requirements for applicants? - Correct answer Spend 20 hours in the field working
with a licensed insurance adjuster
Which of the following automobile components is NOT covered by a Mechanical
Breakdown Insurance policy? - Correct answer Tires
Dr. Smith has a claims-made malpractice insurance policy with a policy period from
June 30, 2006 to June 30, 2007. Which claim would trigger this policy? - Correct
answer a claims-made policy covers claims initiated during the policy period. In this
situation, that would include claims filed between June 30, 2006 and 30, 2007.
Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set
to expire on May 31. Which of the following statements is TRUE? - Correct answer
Lemon Insurance must notify Hugh at least 45 days before the policy expires.
P a g e 2 | 24
, Which of these statements is true? - Correct answer Flood insurance is always
backed by the National Flood Insurance Program.
Which of the following is TRUE about workers' compensation insurance? - Correct
answer it benefits both the employee and the employer.
Martin works as an accountant for Smith Manufacturing. Smith Manufacturing has
tasked Martin with finding an insurance provider to meet the company's needs, so
Martin interviews several insurers. At the end of one interview with PRO Insurance,
the insurance representative hands Martin an envelope containing $5,000 in cash, on
the condition that Smith Manufacturing selects PRO Insurance as its insurance
provider. What would we call the $5,000 in cash? - Correct answer a kickback
In a declaratory judgment action: - Correct answer the court decides the legal rights
of both parties.
When discussing farm insurance, which of the following most accurately describes
"scheduled property"? - Correct answer Itemized property
According to the "Definitions" section of a Personal Auto Policy, which of the
following is NOT "occupying" her vehicle? - Correct answer Rachel leaves her cat in
her car, with the windows cracked, while she goes into the drugstore to fill a
prescription
Which characteristic would prohibit a convenience store/gas station from purchasing
a BOP? - Correct answer the operation of a car wash
A ___________ is a law set forth by a governing body such as a state or city. -
Correct answer statutory law
Ron's truck experiences a mechanical breakdown and he has it towed to an auto
repair facility. Upon further examination of Ron's claim, his Mechanical Breakdown
Insurance provider denies coverage. Which of the following would be a valid reason
for this denial? - Correct answer Ron had been hauling a large boat, which
overloaded the vehicle and caused the breakdown.
Greta's Ski Supply is covered under the Building and Personal Property Coverage
Form with limits of $50,000 for business personal property and $100,000 for the
building. The policy also has a $500 deductible. When a tornado tears through the
vicinity, the store suffered $10,000 in damage to the building and $20,000 in losses
to the contents. In addition, Greta has to fork out an extra $1,000 for debris removal.
How much will Greta receive from her insurer? - Correct answer 30,500
Which of the following is NOT excluded from coverage under a Mechanical
Breakdown Insurance policy? - Correct answer Breakdown due to the cracking of an
engine block
P a g e 3 | 24
