Page 1 of 57
FLORIDA 3-20 PUBLIC ADJUSTERS STATE EXAM
ACTUAL EXAM 150 QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES AGRADE
The insurer and insured agree to a specific value of insured item
.....ANSWER.....Agreed Value Policies
Someone who has care, custody or control of another's property
.....ANSWER.....Bailee
Claim filed by policy holder against his _ .....ANSWER.....First
Party Claim
When a person who entrusts another with an object and it results
in injury to someone can be held liable for the injury to someone.
Can be held liable for the injury i.e. Firearm or DWI
.....ANSWER.....Negligent Entrustment
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Hazard that results from a conscious decision made by an insured
to participate in a manner or behavior more likely to result in a
loss because they have insurance .....ANSWER.....Moral Hazard
Used to provide temporary insurance coverage until an insurance
policy can be written .....ANSWER.....Binder
Required by lenders to guarantee that outstanding loans against
a job are paid upon completion .....ANSWER.....Completion Bonds
The section of an insurance policy identifying the insured,
endorsements, coverages, limits, and premiums
.....ANSWER.....Declarations
Policyholder cannot transfer the policy to someone else without
written permission from their insurance company
.....ANSWER.....Assignment
An instance, behavior or environment that increases the likelihood
of a loss on an insured item .....ANSWER.....Hazard
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Actual cause or source of an incidence of destruction, injury, or
loss .....ANSWER.....Peril
An insurance company organized and domiciled outside the US
.....ANSWER.....Alien
When there is an unbroken chain of events between an
occurrence and a loss, then the loss is part of the original
occurrence .....ANSWER.....Proximate Cause
Is proximate cause of all subsequent damages
.....ANSWER.....Original Occurance
An individual who contracts with an adjusting firm as an
independent contractor and handles claims for the insurance
companies .....ANSWER.....Independent Adjuster
Action or practice of the insured party is permitted to continue
because any defense against a continuation of said action or
practice has been waived by the insurer .....ANSWER.....Estoppel
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Operate for profit, collect premiums, reserve a portion of
premiums to pay claims .....ANSWER.....Commercial Insurers
Any person who investigates or adjusts losses on behalf of either
an insurer or a self-insured .....ANSWER.....Independent Adjuster
The result of an insured's tort or wrongdoing. Consequences of a
loss or amount or type of losses suffered .....ANSWER.....Damages
Requires the insured to insure the named property for a specific
amount of insurance as required by the insurance company
.....ANSWER.....Agreed Value
Physical harm to tangible property caused by peril (loss to
property or person in which a covered peril is the proximate
cause of damage or destruction) .....ANSWER.....Direct loss
The entity that is the "recipient" to the Principal
.....ANSWER.....Obligee
FLORIDA 3-20 PUBLIC ADJUSTERS STATE EXAM
ACTUAL EXAM 150 QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES AGRADE
The insurer and insured agree to a specific value of insured item
.....ANSWER.....Agreed Value Policies
Someone who has care, custody or control of another's property
.....ANSWER.....Bailee
Claim filed by policy holder against his _ .....ANSWER.....First
Party Claim
When a person who entrusts another with an object and it results
in injury to someone can be held liable for the injury to someone.
Can be held liable for the injury i.e. Firearm or DWI
.....ANSWER.....Negligent Entrustment
,Page 2 of 57
Hazard that results from a conscious decision made by an insured
to participate in a manner or behavior more likely to result in a
loss because they have insurance .....ANSWER.....Moral Hazard
Used to provide temporary insurance coverage until an insurance
policy can be written .....ANSWER.....Binder
Required by lenders to guarantee that outstanding loans against
a job are paid upon completion .....ANSWER.....Completion Bonds
The section of an insurance policy identifying the insured,
endorsements, coverages, limits, and premiums
.....ANSWER.....Declarations
Policyholder cannot transfer the policy to someone else without
written permission from their insurance company
.....ANSWER.....Assignment
An instance, behavior or environment that increases the likelihood
of a loss on an insured item .....ANSWER.....Hazard
,Page 3 of 57
Actual cause or source of an incidence of destruction, injury, or
loss .....ANSWER.....Peril
An insurance company organized and domiciled outside the US
.....ANSWER.....Alien
When there is an unbroken chain of events between an
occurrence and a loss, then the loss is part of the original
occurrence .....ANSWER.....Proximate Cause
Is proximate cause of all subsequent damages
.....ANSWER.....Original Occurance
An individual who contracts with an adjusting firm as an
independent contractor and handles claims for the insurance
companies .....ANSWER.....Independent Adjuster
Action or practice of the insured party is permitted to continue
because any defense against a continuation of said action or
practice has been waived by the insurer .....ANSWER.....Estoppel
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Operate for profit, collect premiums, reserve a portion of
premiums to pay claims .....ANSWER.....Commercial Insurers
Any person who investigates or adjusts losses on behalf of either
an insurer or a self-insured .....ANSWER.....Independent Adjuster
The result of an insured's tort or wrongdoing. Consequences of a
loss or amount or type of losses suffered .....ANSWER.....Damages
Requires the insured to insure the named property for a specific
amount of insurance as required by the insurance company
.....ANSWER.....Agreed Value
Physical harm to tangible property caused by peril (loss to
property or person in which a covered peril is the proximate
cause of damage or destruction) .....ANSWER.....Direct loss
The entity that is the "recipient" to the Principal
.....ANSWER.....Obligee
