Florida Claims Adjuster Exam Exam (Questions with 100% CORRECT
ANSWERS)A+ GRADED VERIFIED)
Severability - ANSWER Insurance applies separately to each insured as if other insureds did
not exist.
Abandonment - ANSWER Property insurance policies usually contain a(n) __________
clause, *stating the insured cannot dump damaged property on the insurer and demand its full
value.*
Insurable Interest - ANSWER One wherein economic loss would be suffered from an adverse
happening to the subject.
Liberalization - ANSWER 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..
Doctrine of Proximate Cause - ANSWER 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.
Actual Cash Value - ANSWER The Loss Settlement Valuation that subtracts an allowance for
depreciation
Warranty - ANSWER A policy condition, either based on information in the insured's
application or inserted by the insurer
Conditional Contract - ANSWER 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?
Under Mechanical Breakdown Coverage, *new cars are eligible for service up to:* - ANSWER
36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
If financial responsibility doesn't exist at the time of an accident, what happens? - ANSWER
The legally valid claims of others must be satisfied (10/20/10)
The owner and operator must provide certification of future responsibility for future accidents
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 - ANSWER 3
,The Business Automobile Policy includes all of the following coverage forms except: -
ANSWER The Trailer Interchange Coverage Form
Personal Injury Protection, or PIP, has a __________ per person, per accident limit. -
ANSWER 10,000
Used to insure businesses engaged in selling, servicing, repairing, parking or storing
automobiles: - ANSWER Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10. -
ANSWER 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? - ANSWER $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? - ANSWER $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? - ANSWER
Age & Gender of Insured
On a Homeowner's Policy, covers items that are not permanently attached to the dwelling. This
is defined as: - ANSWER Other Structures
Examples include sheds, fences, pool houses, detached car ports, etc.
A lender has an insurable interest in a home and finds protection in the: - ANSWER
Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
, Which of the following forms is "all-risk" on the dwelling policy? - ANSWER DP-3, or the
Special Form
When the basic liability limits provided by the policy are insufficient for an insureds needs, two
coverage forms are used to provide the additional amounts of coverage:
A. Excess Liability
B. Umbrella
C. Both A & B
D. None of the Above - ANSWER Both A & B
Which of the following is not covered under Coverage C, Personal Property?
A. A fire breaks out in the residence and an overnight guest loses his clothes in the fire
B. A fish dies because he has been left alone for a week without food
C. The insureds daughters tennis racket is stolen from her locker
D. The insureds suitcase and clothing, valued at $1,500, are stolen from his hotel - ANSWER
B. A fish dies because he has been left alone for a week without food
Animals are listed as an "exclusion" under a Homeowner's policy.
All of the following are eligible for a Homeowner's Policy, except?
A. An apartment tenant
B. A condominium owner
C. Four-family dwelling owner-occupant
D. A business condo owned by a local insurance company - ANSWER D. A business condo
owned by a local insurance company
Commercial property is not eligible for a Homeowner's policy.
Which of the following are characteristics of Homeowner's Insurance?
A. Protects against economic loss to residences and household property and legal liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of building
D. All of the Above - ANSWER D. All of the Above
Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit
owners and cooperative apartment occupants
Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is
averaged at $25,000 and Jeremy decides to stay in a hotel because most of the damage is to
his bedroom and kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel
room bill?
ANSWERS)A+ GRADED VERIFIED)
Severability - ANSWER Insurance applies separately to each insured as if other insureds did
not exist.
Abandonment - ANSWER Property insurance policies usually contain a(n) __________
clause, *stating the insured cannot dump damaged property on the insurer and demand its full
value.*
Insurable Interest - ANSWER One wherein economic loss would be suffered from an adverse
happening to the subject.
Liberalization - ANSWER 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..
Doctrine of Proximate Cause - ANSWER 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.
Actual Cash Value - ANSWER The Loss Settlement Valuation that subtracts an allowance for
depreciation
Warranty - ANSWER A policy condition, either based on information in the insured's
application or inserted by the insurer
Conditional Contract - ANSWER 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?
Under Mechanical Breakdown Coverage, *new cars are eligible for service up to:* - ANSWER
36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
If financial responsibility doesn't exist at the time of an accident, what happens? - ANSWER
The legally valid claims of others must be satisfied (10/20/10)
The owner and operator must provide certification of future responsibility for future accidents
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 - ANSWER 3
,The Business Automobile Policy includes all of the following coverage forms except: -
ANSWER The Trailer Interchange Coverage Form
Personal Injury Protection, or PIP, has a __________ per person, per accident limit. -
ANSWER 10,000
Used to insure businesses engaged in selling, servicing, repairing, parking or storing
automobiles: - ANSWER Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10. -
ANSWER 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? - ANSWER $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? - ANSWER $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? - ANSWER
Age & Gender of Insured
On a Homeowner's Policy, covers items that are not permanently attached to the dwelling. This
is defined as: - ANSWER Other Structures
Examples include sheds, fences, pool houses, detached car ports, etc.
A lender has an insurable interest in a home and finds protection in the: - ANSWER
Mortgagee Clause
Mortgagee - Homeowner's policy
Loss Payee - Automobile policy
, Which of the following forms is "all-risk" on the dwelling policy? - ANSWER DP-3, or the
Special Form
When the basic liability limits provided by the policy are insufficient for an insureds needs, two
coverage forms are used to provide the additional amounts of coverage:
A. Excess Liability
B. Umbrella
C. Both A & B
D. None of the Above - ANSWER Both A & B
Which of the following is not covered under Coverage C, Personal Property?
A. A fire breaks out in the residence and an overnight guest loses his clothes in the fire
B. A fish dies because he has been left alone for a week without food
C. The insureds daughters tennis racket is stolen from her locker
D. The insureds suitcase and clothing, valued at $1,500, are stolen from his hotel - ANSWER
B. A fish dies because he has been left alone for a week without food
Animals are listed as an "exclusion" under a Homeowner's policy.
All of the following are eligible for a Homeowner's Policy, except?
A. An apartment tenant
B. A condominium owner
C. Four-family dwelling owner-occupant
D. A business condo owned by a local insurance company - ANSWER D. A business condo
owned by a local insurance company
Commercial property is not eligible for a Homeowner's policy.
Which of the following are characteristics of Homeowner's Insurance?
A. Protects against economic loss to residences and household property and legal liabilities
B. Owner-occupants of 1-4 family dwellings
C. Renters who maintain residential occupancy in any type of building
D. All of the Above - ANSWER D. All of the Above
Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit
owners and cooperative apartment occupants
Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is
averaged at $25,000 and Jeremy decides to stay in a hotel because most of the damage is to
his bedroom and kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel
room bill?
