Florida All Lines Claims Adjuster Exam|
2023/2024 Newly Updated| Grade A
Questions and Verified Answers
1. Which expense is NOT covered as property damage by a business auto policy (BAP)?
✓ Answer: damage to property transported in a covered auto
Rationale: The BAP excludes damage to property owned or transported by the
insured or in the insured's care, custody, or control.
2. Sandy requires her employees to use their personal autos when calling on customers. If
she adds the Employees as Insureds endorsement to her company's business auto policy
(BAP), employees who use their personal cars for business calls will have:
✓ Answer: excess coverage under the BAP for losses that exceed their
personal auto liability limits
Rationale: The endorsed BAP will provide excess coverage over the employee's
personal auto policy if an employee is liable for a loss involving the business use of
his or her personal vehicle
3. Minestra Company produces a defective quantity of mushroom soup which results in the
hospitalization of consumers who become ill from eating it. In anticipation of their
claims, Minestra instructs retailers to remove its mushroom soup from their stores.
Minestra asks its commercial general liability insurer to cover its expenses in removing
the product from the market. Minestra's CGL policy will:
✓ Answer: cover consumer claims but not recall expenses
Rationale: The recall of products exclusion in the CGL policy precludes coverage for
recall expenses.
4. The difference between the Pollution Liability Coverage Form (CG 00 39) and the
Pollution Liability Limited Coverage Form (CG 00 40) is that the Limited Coverage
form:
, ✓ Answer: does not cover cleanup costs
Rationale: CG 00 40 provides the same bodily injury and property damage liability
coverage as CG 00 39 with the exception of coverage for cleanup costs.
5. For the past four years, Cheryl has insured her business with four different commercial
general liability (CGL) insurance policies, each with an occurrence trigger. For a claim to
be covered by Cheryl's current policy:
✓ Answer: The injury or damage must have occurred during the current
policy period.
Rationale: With an occurrence trigger, the date of the injury or damage- not the date
of the event that results in bodily injury or property damage- triggers coverage.
6. The swimming pool in the atrium of the Highland Court Apartment Building creates a
humid environment that encourages mold growth. To limit exposure to mold- related
claims, what kind of endorsement should be added to the building's CGL policy?
✓ Answer: limited fungi or bacteria coverage
Rationale: The limited fungi or bacteria coverage endorsement subjects mold
coverage to a separate fungi and bacteria liability aggregate limit.
7. Banemore Manufacturing Company's operations involve hazardous materials and
processes. Which situation does NOT involve a pollutant as defined in the pollution
liability coverage forms?
✓ Answer: Banemore's operations interfere with data transmissions in a
nearby neighborhood.
8. Antoinette's Antiques is the named insured under an ISO pollution liability form. The
form's extended reporting period option allows Antoinette to:
, ✓ Answer: get an endorsement to cover claims reported within one year
after the policy period ends
9. What does the limited pollution liability extension endorsement do when added to the
CGL insurance policy?
✓ Answer: It expands pollution coverage.
10. Marty drives to Ritzy Restaurant. After parking in a nearby lot, he slips on the icy
pavement and breaks his ankle. Two months later, he submits his $1,000 medical bill to
Ritzy Restaurant for payment. Why might Ritzy's commercial general liability insurer
refuse to pay this claim under Coverage C- medical payments?
✓ Answer: The injury occurred off the insured premises.
Rationale: Medical payments coverage is no- fault coverage that protects members of
the public while on the insured's premises or exposed to the insured's operations. It
applies without regard to the insured's legal liability.
11. Which activity would fall outside the definition of "farming" in the standard farm liability
coverage form?
- Field irrigation
- Selling tee shirts at a farmer's market in the city
- Crop dusting
- Selling farm produce from a roadside stand
✓ Answer: Selling tee shirts at a farmer's market in the city
Rationale: The farm liability coverage form defines "farming" as the operation of an
agricultural or aquacultural enterprise, including the operation of roadside stands, on
the farm premises, maintained for the sale of farm products produced primarily by the
named insured. Farming usually does not include mechanized processing operations or
retail activity other than that described.
12. Which coverages does the standard farm liability coverage form provide?
, ✓ Answer: Bodily injury and prop
Rationale: The standard farm liability form provides coverage for bodily injury and
property damage (Coverage H), personal injury and advertising injury (Coverage I),
and medical payments (Coverage J), all on an occurrence basis.
13. As defined in the farm liability coverage form, farming does NOT include:
✓ Answer: mechanized processing operations
Rationale: Unless otherwise indicated on the declarations, farming does not include
mechanized processing operations.
14. The farm insurance bodily injury and property damage liability form (Coverage H)
contains exclusions for all the following losses EXCEPT:
✓ Answer: loss of use
Rationale: Coverage H includes the other party's loss of use of tangible property that
is not physically damaged.
15. Colin hires Sal, a retired farmer, to help him with the harvest. Sal is seriously injured
when he falls off the tractor he was operating in Colin's field. Colin's farm liability
coverage form:
✓ Answer: covers Sal's injuries as long as the loss is not subject to the
state's workers compensation laws
Rationale: The workers compensation exclusion precludes coverage if state law
requires Colin to provide Sal with workers compensation benefits, which is usually
done by purchasing workers compensation insurance.
16. Which of the following activities, if located on the farm premises, would NOT be
considered a farming operation covered by the farm liability coverage form?
a. harvesting of shellfish
b. cultivation of aquatic plants
c. roadside produce stand
d. gift shop
2023/2024 Newly Updated| Grade A
Questions and Verified Answers
1. Which expense is NOT covered as property damage by a business auto policy (BAP)?
✓ Answer: damage to property transported in a covered auto
Rationale: The BAP excludes damage to property owned or transported by the
insured or in the insured's care, custody, or control.
2. Sandy requires her employees to use their personal autos when calling on customers. If
she adds the Employees as Insureds endorsement to her company's business auto policy
(BAP), employees who use their personal cars for business calls will have:
✓ Answer: excess coverage under the BAP for losses that exceed their
personal auto liability limits
Rationale: The endorsed BAP will provide excess coverage over the employee's
personal auto policy if an employee is liable for a loss involving the business use of
his or her personal vehicle
3. Minestra Company produces a defective quantity of mushroom soup which results in the
hospitalization of consumers who become ill from eating it. In anticipation of their
claims, Minestra instructs retailers to remove its mushroom soup from their stores.
Minestra asks its commercial general liability insurer to cover its expenses in removing
the product from the market. Minestra's CGL policy will:
✓ Answer: cover consumer claims but not recall expenses
Rationale: The recall of products exclusion in the CGL policy precludes coverage for
recall expenses.
4. The difference between the Pollution Liability Coverage Form (CG 00 39) and the
Pollution Liability Limited Coverage Form (CG 00 40) is that the Limited Coverage
form:
, ✓ Answer: does not cover cleanup costs
Rationale: CG 00 40 provides the same bodily injury and property damage liability
coverage as CG 00 39 with the exception of coverage for cleanup costs.
5. For the past four years, Cheryl has insured her business with four different commercial
general liability (CGL) insurance policies, each with an occurrence trigger. For a claim to
be covered by Cheryl's current policy:
✓ Answer: The injury or damage must have occurred during the current
policy period.
Rationale: With an occurrence trigger, the date of the injury or damage- not the date
of the event that results in bodily injury or property damage- triggers coverage.
6. The swimming pool in the atrium of the Highland Court Apartment Building creates a
humid environment that encourages mold growth. To limit exposure to mold- related
claims, what kind of endorsement should be added to the building's CGL policy?
✓ Answer: limited fungi or bacteria coverage
Rationale: The limited fungi or bacteria coverage endorsement subjects mold
coverage to a separate fungi and bacteria liability aggregate limit.
7. Banemore Manufacturing Company's operations involve hazardous materials and
processes. Which situation does NOT involve a pollutant as defined in the pollution
liability coverage forms?
✓ Answer: Banemore's operations interfere with data transmissions in a
nearby neighborhood.
8. Antoinette's Antiques is the named insured under an ISO pollution liability form. The
form's extended reporting period option allows Antoinette to:
, ✓ Answer: get an endorsement to cover claims reported within one year
after the policy period ends
9. What does the limited pollution liability extension endorsement do when added to the
CGL insurance policy?
✓ Answer: It expands pollution coverage.
10. Marty drives to Ritzy Restaurant. After parking in a nearby lot, he slips on the icy
pavement and breaks his ankle. Two months later, he submits his $1,000 medical bill to
Ritzy Restaurant for payment. Why might Ritzy's commercial general liability insurer
refuse to pay this claim under Coverage C- medical payments?
✓ Answer: The injury occurred off the insured premises.
Rationale: Medical payments coverage is no- fault coverage that protects members of
the public while on the insured's premises or exposed to the insured's operations. It
applies without regard to the insured's legal liability.
11. Which activity would fall outside the definition of "farming" in the standard farm liability
coverage form?
- Field irrigation
- Selling tee shirts at a farmer's market in the city
- Crop dusting
- Selling farm produce from a roadside stand
✓ Answer: Selling tee shirts at a farmer's market in the city
Rationale: The farm liability coverage form defines "farming" as the operation of an
agricultural or aquacultural enterprise, including the operation of roadside stands, on
the farm premises, maintained for the sale of farm products produced primarily by the
named insured. Farming usually does not include mechanized processing operations or
retail activity other than that described.
12. Which coverages does the standard farm liability coverage form provide?
, ✓ Answer: Bodily injury and prop
Rationale: The standard farm liability form provides coverage for bodily injury and
property damage (Coverage H), personal injury and advertising injury (Coverage I),
and medical payments (Coverage J), all on an occurrence basis.
13. As defined in the farm liability coverage form, farming does NOT include:
✓ Answer: mechanized processing operations
Rationale: Unless otherwise indicated on the declarations, farming does not include
mechanized processing operations.
14. The farm insurance bodily injury and property damage liability form (Coverage H)
contains exclusions for all the following losses EXCEPT:
✓ Answer: loss of use
Rationale: Coverage H includes the other party's loss of use of tangible property that
is not physically damaged.
15. Colin hires Sal, a retired farmer, to help him with the harvest. Sal is seriously injured
when he falls off the tractor he was operating in Colin's field. Colin's farm liability
coverage form:
✓ Answer: covers Sal's injuries as long as the loss is not subject to the
state's workers compensation laws
Rationale: The workers compensation exclusion precludes coverage if state law
requires Colin to provide Sal with workers compensation benefits, which is usually
done by purchasing workers compensation insurance.
16. Which of the following activities, if located on the farm premises, would NOT be
considered a farming operation covered by the farm liability coverage form?
a. harvesting of shellfish
b. cultivation of aquatic plants
c. roadside produce stand
d. gift shop
