Florida Claims Adjuster Test Questions And Answers
Verified 100% Correct
The authority given by an insurer or employer to a licensee to transact
insurance or adjust claims on behalf of an insurer or employer is defined
as:
A. Appointment
B. Express Authority
C. Registered
D. Certificate of Authority - ANSWER- A. Appointment
Licensees are given authority through the appointment process
Charging an applicant for a specific ancillary coverage or product, in
addition to the cost of the insurance coverage provided for, without the
informed consent of the applicant is a practice of:
A. Churning
B. Sliding
C. Soliciting
D. None of the Above - ANSWER- B. Sliding
Loss Payee Clause - ANSWER- Provides, in event of payment being
made under the policy in relation to insured risk, that payment will be
made to a third party rather than the beneficiary
Mortgagee Clause - ANSWER- Protects a lender who has an insurable
interest in a home
Grants special protection for the interest of a mortgage named in the
policy; setting up a separate content between insurer and mortgagee
Fiduciary - ANSWER- A relationship that requires maintenance of a
high degree of fidelity and loyalty to the interests of the principal,
whether or not the adjuster is a direct employee
,Evaluation - ANSWER- Establishing a dollar value on a claim.
Determines the fair payment in accordance with the contract and
applicable law
Estoppel - ANSWER- An equitable principle to the effect that if one
intentionally or unintentionally creates the impression that a certain fact
exists, an innocent party relies on that impression and is damaged as a
result, the guilty party may be legally prohibited (estopped) from
asserting that the fact does not exist.
Implied Waiver - ANSWER- May result from some act of neglect on
part of the adjuster
Express Waiver - ANSWER- Occurs when insurer or its representative
knowingly gives up a known right under insurance contract
Identify examples of peril. - ANSWER- Fire, windstorm, flood after
hurricane, etc.
(something that causes a loss)
How long does one have to notify the Department of Financial Services
for a name and/or address change? - ANSWER- 30 days
What do the Declarations of a policy outline? - ANSWER- The
declarations identifies the named insured and address, states the policy
period and premium and miscellaneous information about the insured,
and specifies the limits of coverage that apply
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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - ANSWER- A. Warranty
Verified 100% Correct
The authority given by an insurer or employer to a licensee to transact
insurance or adjust claims on behalf of an insurer or employer is defined
as:
A. Appointment
B. Express Authority
C. Registered
D. Certificate of Authority - ANSWER- A. Appointment
Licensees are given authority through the appointment process
Charging an applicant for a specific ancillary coverage or product, in
addition to the cost of the insurance coverage provided for, without the
informed consent of the applicant is a practice of:
A. Churning
B. Sliding
C. Soliciting
D. None of the Above - ANSWER- B. Sliding
Loss Payee Clause - ANSWER- Provides, in event of payment being
made under the policy in relation to insured risk, that payment will be
made to a third party rather than the beneficiary
Mortgagee Clause - ANSWER- Protects a lender who has an insurable
interest in a home
Grants special protection for the interest of a mortgage named in the
policy; setting up a separate content between insurer and mortgagee
Fiduciary - ANSWER- A relationship that requires maintenance of a
high degree of fidelity and loyalty to the interests of the principal,
whether or not the adjuster is a direct employee
,Evaluation - ANSWER- Establishing a dollar value on a claim.
Determines the fair payment in accordance with the contract and
applicable law
Estoppel - ANSWER- An equitable principle to the effect that if one
intentionally or unintentionally creates the impression that a certain fact
exists, an innocent party relies on that impression and is damaged as a
result, the guilty party may be legally prohibited (estopped) from
asserting that the fact does not exist.
Implied Waiver - ANSWER- May result from some act of neglect on
part of the adjuster
Express Waiver - ANSWER- Occurs when insurer or its representative
knowingly gives up a known right under insurance contract
Identify examples of peril. - ANSWER- Fire, windstorm, flood after
hurricane, etc.
(something that causes a loss)
How long does one have to notify the Department of Financial Services
for a name and/or address change? - ANSWER- 30 days
What do the Declarations of a policy outline? - ANSWER- The
declarations identifies the named insured and address, states the policy
period and premium and miscellaneous information about the insured,
and specifies the limits of coverage that apply
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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - ANSWER- A. Warranty
