Page 1 of 428
FLORIDA ADJUSTER LICENSING ACTUAL EXAM 400
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) | AGRADE
While driving, Ben was struck by another driver, Roxanne. Ben
then filed a claim with Roxanne's insurer. In
essence, what was Ben doing when he filed this claim?
Alerting Roxanne's insurer of his intent to take the case to court
Submitting a formal request to settle the damages with
Roxanne's insurer
Ordering Roxanne's insurer to pay for his damages within 15
days
Admitting he was actually "at fault" .....ANSWER.....Submitting a
formal request to settle the damages with Roxanne's insurer
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Mark incurred $8,000 damage to his car in an accident. He
received $8,000 from his insurance company and
$4,000 from the other driver. By receiving a profit from the loss,
Mark could be in violation of:
the principle of financial status.
the principle of financial restoration.
the principle of profit and loss.
the principle of indemnity. .....ANSWER.....the principle of
indemnity
What is a reserve, in insurance terms?
The amount of revenue that the insurer sets aside to pay
employee salaries
A group of policyholders who pay into the same pool of
premiums
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A pool of collected premiums that the insurer sets aside to pay
claims
A set of rules governing how the insurance industry should work
.....ANSWER.....A pool of collected premiums that the insurer sets
aside to pay claims
The purpose of the principle of indemnity is:
to prevent an insured from making a profit on a loss.
to transfer the risk of financial loss from one party to another.
to transfer the right to collect a debt from one party to another.
to prevent an insurer from making a profit on a loss.
.....ANSWER.....to prevent an insured from making a profit on a
loss.
Greg plays trombone in his school band during football games.
During a rally song in the stands one day,
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Greg annoys one of the opposing team's fans, who grabs his
$400 trombone and hurls it down the
bleachers, completely destroying it. Greg's insurance pays him
$400 to replace the trombone, but then the
opposing team's coach also offers to replace the instrument, at
whatever the cost. So Greg orders a new
$3,200 trombone and has the opposing team's athletic
department absorb the cost. Which principle has
Greg violated?
The principle of consideration
The principle of legal purpose
The principal of the opposing team
The principle of indemnity .....ANSWER.....The principle of
indemnity
FLORIDA ADJUSTER LICENSING ACTUAL EXAM 400
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) | AGRADE
While driving, Ben was struck by another driver, Roxanne. Ben
then filed a claim with Roxanne's insurer. In
essence, what was Ben doing when he filed this claim?
Alerting Roxanne's insurer of his intent to take the case to court
Submitting a formal request to settle the damages with
Roxanne's insurer
Ordering Roxanne's insurer to pay for his damages within 15
days
Admitting he was actually "at fault" .....ANSWER.....Submitting a
formal request to settle the damages with Roxanne's insurer
,Page 2 of 428
Mark incurred $8,000 damage to his car in an accident. He
received $8,000 from his insurance company and
$4,000 from the other driver. By receiving a profit from the loss,
Mark could be in violation of:
the principle of financial status.
the principle of financial restoration.
the principle of profit and loss.
the principle of indemnity. .....ANSWER.....the principle of
indemnity
What is a reserve, in insurance terms?
The amount of revenue that the insurer sets aside to pay
employee salaries
A group of policyholders who pay into the same pool of
premiums
,Page 3 of 428
A pool of collected premiums that the insurer sets aside to pay
claims
A set of rules governing how the insurance industry should work
.....ANSWER.....A pool of collected premiums that the insurer sets
aside to pay claims
The purpose of the principle of indemnity is:
to prevent an insured from making a profit on a loss.
to transfer the risk of financial loss from one party to another.
to transfer the right to collect a debt from one party to another.
to prevent an insurer from making a profit on a loss.
.....ANSWER.....to prevent an insured from making a profit on a
loss.
Greg plays trombone in his school band during football games.
During a rally song in the stands one day,
, Page 4 of 428
Greg annoys one of the opposing team's fans, who grabs his
$400 trombone and hurls it down the
bleachers, completely destroying it. Greg's insurance pays him
$400 to replace the trombone, but then the
opposing team's coach also offers to replace the instrument, at
whatever the cost. So Greg orders a new
$3,200 trombone and has the opposing team's athletic
department absorb the cost. Which principle has
Greg violated?
The principle of consideration
The principle of legal purpose
The principal of the opposing team
The principle of indemnity .....ANSWER.....The principle of
indemnity
