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Florida certified adjuster pre-licensing Exam COMPLETE
Questions and Verified Solutions Latest Update This
Year
QUESTION: Which of the following statements best describes a part of the appraisal process?
A. The claimant and the insurer each select an appraiser, and those two select an umpire.
B. All parties must agree to the final amount in order for it to be binding.
C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties
come to a settlement.
D. The opposing parties submit their evidence to the appraiser, who makes a final and binding
decision. - ANSWER-A. The claimant and the insurer each select an appraiser, and those two
select an umpire.
QUESTION: Bob's home was severely damaged by a thunderstorm and he claims it will cost
$74,000 to repair. His insurer has investigated the claim, found the repairs could be done for
$49,000, and has offered Bob this amount of indemnification. Negotiation between Bob and his
insurer seems to be failing. Due to the unpredictability of the result, which of the following
options should be avoided by the insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
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D. Arbitration - ANSWER-C. Litigation
QUESTION: In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - ANSWER-B. The two appraisers
QUESTION: Adjuster Andy is trying to determine a final settlement amount for Stacy's claim.
Stacy's house was destroyed in a fire and it will cost $185,000 to rebuild it. Stacy's homeowners
policy has a limit of $178,000 and a $1,800 deductible. Typically, how much would Adjuster
Andy calculate Stacy's final settlement amount to be? - ANSWER-$178,000 (because the cost of
repairs is more than the policy limit, the final settlement amount is the full policy limit
($178,000) and the deductible is absorbed into the amount of the loss that exceeds the limit.
QUESTION: Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the insurer and the
claimant.
B. An insurance adjuster is an agent.
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C. An insurance adjuster who settles claims on behalf of an insurer has the power to bind that
insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the insurer through
a written contract. - ANSWER-D. An insurance adjuster receives her authority to sell products
on behalf of the insurer through a written contract.
QUESTION: After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:
A. confiscation of property by the government.
B. increased repair costs due to laws or codes.
C. any change that decreases the value of the property.
D. remediation of pollutants. - ANSWER-B. increased repair costs due to laws or codes.
QUESTION: Coverage C - Personal Property of a homeowners policy typically excludes:
A. furniture.
B. fish.
C. dishes.
D. blanket coverage of personal property. - ANSWER-B. fish
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QUESTION: Stu has a collection of rare comic books. He wants to purchase theft insurance for
his collection, separate from his home and other property. What term most accurately
describes the type of policy Stu would purchase?
A. Valuable Papers Policy
B. Actual Cash Value Policy
C. Standard Fire Policy
D. Monoline Policy - ANSWER-D. Monoline Policy
QUESTION: Strong winds have torn a hole in Janet's roof. On top of that, heavy rain is expected
in her area in the next few days. Figuring it would simply be too much effort to put a tarp over
the hole in her roof, Janet elects to do nothing. The rains come and destroy several of her
possessions inside her home. Janet files a claim with her insurer for the losses, but it comes
back denied. This is because:
A. Homeowners insurance covers personal property at an actual cash value, and her personal
items were worth nothing after they were destroyed.
B. Storm damage is not covered under a standard homeowner's policy.
C. Janet failed to make a reasonable effort to protect the property from further damages.
D. Janet's policy has coverage for wind damage, but not flood damage. - ANSWER-C. Janet failed
to make a reasonable effort to protect the property from further damages.
Florida certified adjuster pre-licensing Exam COMPLETE
Questions and Verified Solutions Latest Update This
Year
QUESTION: Which of the following statements best describes a part of the appraisal process?
A. The claimant and the insurer each select an appraiser, and those two select an umpire.
B. All parties must agree to the final amount in order for it to be binding.
C. A neutral third party, called the appraiser, plays an advisory role to help the disputing parties
come to a settlement.
D. The opposing parties submit their evidence to the appraiser, who makes a final and binding
decision. - ANSWER-A. The claimant and the insurer each select an appraiser, and those two
select an umpire.
QUESTION: Bob's home was severely damaged by a thunderstorm and he claims it will cost
$74,000 to repair. His insurer has investigated the claim, found the repairs could be done for
$49,000, and has offered Bob this amount of indemnification. Negotiation between Bob and his
insurer seems to be failing. Due to the unpredictability of the result, which of the following
options should be avoided by the insurer if possible?
A. Appraisal
B. Mediation
C. Litigation
, Page 2 of 59
D. Arbitration - ANSWER-C. Litigation
QUESTION: In appraisal, who chooses the umpire?
A. The claimant
B. The two appraisers
C. The insurance company
D. The adjuster - ANSWER-B. The two appraisers
QUESTION: Adjuster Andy is trying to determine a final settlement amount for Stacy's claim.
Stacy's house was destroyed in a fire and it will cost $185,000 to rebuild it. Stacy's homeowners
policy has a limit of $178,000 and a $1,800 deductible. Typically, how much would Adjuster
Andy calculate Stacy's final settlement amount to be? - ANSWER-$178,000 (because the cost of
repairs is more than the policy limit, the final settlement amount is the full policy limit
($178,000) and the deductible is absorbed into the amount of the loss that exceeds the limit.
QUESTION: Which of the following statements is NOT true of an insurance adjuster?
A. An insurance adjuster must always use reasonable judgement for both the insurer and the
claimant.
B. An insurance adjuster is an agent.
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C. An insurance adjuster who settles claims on behalf of an insurer has the power to bind that
insurer, even if she makes a mistake.
D. An insurance adjuster receives her authority to sell products on behalf of the insurer through
a written contract. - ANSWER-D. An insurance adjuster receives her authority to sell products
on behalf of the insurer through a written contract.
QUESTION: After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:
A. confiscation of property by the government.
B. increased repair costs due to laws or codes.
C. any change that decreases the value of the property.
D. remediation of pollutants. - ANSWER-B. increased repair costs due to laws or codes.
QUESTION: Coverage C - Personal Property of a homeowners policy typically excludes:
A. furniture.
B. fish.
C. dishes.
D. blanket coverage of personal property. - ANSWER-B. fish
, Page 4 of 59
QUESTION: Stu has a collection of rare comic books. He wants to purchase theft insurance for
his collection, separate from his home and other property. What term most accurately
describes the type of policy Stu would purchase?
A. Valuable Papers Policy
B. Actual Cash Value Policy
C. Standard Fire Policy
D. Monoline Policy - ANSWER-D. Monoline Policy
QUESTION: Strong winds have torn a hole in Janet's roof. On top of that, heavy rain is expected
in her area in the next few days. Figuring it would simply be too much effort to put a tarp over
the hole in her roof, Janet elects to do nothing. The rains come and destroy several of her
possessions inside her home. Janet files a claim with her insurer for the losses, but it comes
back denied. This is because:
A. Homeowners insurance covers personal property at an actual cash value, and her personal
items were worth nothing after they were destroyed.
B. Storm damage is not covered under a standard homeowner's policy.
C. Janet failed to make a reasonable effort to protect the property from further damages.
D. Janet's policy has coverage for wind damage, but not flood damage. - ANSWER-C. Janet failed
to make a reasonable effort to protect the property from further damages.
