Insurance Coverage and Exclusions: A Comprehensive Review, Exams of Nursing

Download Insurance Coverage and Exclusions: A Comprehensive Review and more Exams Nursing in PDF only on Docsity! Florida 6-20 All Lines Adjuster Test Question & Answers 2024 A public adjuster represents the interest of: A. The insurer B. The Insured C. The employer D. The interest of the general public - Correct answer s ✅B. The insured Which of the following is the type of report that indicates the initial results of a claim investigation? A. Field Report B. Interim Report C. Full Report D. None of the above - Correct answer s ✅A. Field Report States have adopted statutes regarding claims adjusting. To avoid unfair treatment to a claimant the adjuster must not: A. Promptly investigate the claim. B. Follow the laws regarding the number of days in which to commence an investigation. C. Deny the claim until a fair and prompt investigation has commenced. D. Pay the claim within a reasonable number of days after the final proof of loss has been received. - Correct answer s ✅C. Deny the claim until a fair and prompt investigation has commenced. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Which of the following is not a claim settlement option? A. Forcing the insured to sue by offering less than the claim is worth. B. Repairing property. C. Replacing with like kind and quality. D. Replace with new - Correct answer s ✅A. Forcing the insured to sue by offering less than the claim is worth. The giving up of a known right is called: A. Estoppel B. Violation of policy conditions C. Rebating D. Waiver - Correct answer s ✅D. Waiver An innocent party relies on certain statements made by the adjuster and is damaged as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of: A. Waiver B. Estoppel C. Duties of the adjuster D. Law of contract - Correct answer s ✅B. Estoppel Should an insured fail to report a claim in a timely fashion the adjuster will usually: Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. Loss of use D. Disfigurement - Correct answer s ✅B. Excessive amounts claimed Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue? A. Scheduled Payment Release B. Full Release Settlement C. Advanced Payment D. Structured Settlement - Correct answer s ✅B. Full Release Settlement Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated? A. No Release or Walk-Away B. Rehabilitation C. Advanced Payment D. Open-Ended Release - Correct answer s ✅C. Advanced Payment Which of the following statements is correct? I. The Business Auto Policy uses 10 symbols to define covered vehicles II. Symbols 30 and 31 apply to the Garage Policy. A. I only. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. II only. C. Neither I nor II. D. Both I and II. - Correct answer s ✅D. Both I and II. Which of the following is not a Business Auto endorsement? A. Drive Other Car. B. Change Other Driver. C. Individual Named Insured. D. Mobile Equipment. - Correct answer s ✅B. Change Other Driver. Under the Business Auto Policy, each of the following is true about classification of "covered autos," except: A. "Any auto" is the broadest coverage classification. B. An insured may select different classifications for different coverages. C. All classes of newly acquired autos are automatically covered. D. "Hired autos" includes autos the insured leases, hires, rents or borrows. - Correct answer s ✅C. All classes of newly acquired autos are automatically covered. According to the Business Auto definitions, an "accident": A. Includes continuous or repeated exposure to the same conditions. B. Must be sudden and unexpected. C. Must be unexpected and unpreventable. D. Is any event that causes injury or damage. - Correct answer s ✅A. Includes continuous or repeated exposure to the same conditions. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Joseph Young, who is insured under a Business Auto policy, is involved in an accident. He and the insurance company disagree on the amount to be paid for the damage to his car. Under the terms of the policy, which of the following statements is true: A. Each party engages an appraiser, and the appraisers will select an umpire. B. Mr. Young must accept the insurance company's estimate. C. Each party engages an appraiser, and the appraisers will decide the amount. D. The estimates of both parties will be averaged. - Correct answer s ✅A. Each party engages an appraiser, and the appraisers will select an umpire Under Form MCS-90, a _____ notice to the other party is required for cancellation of coverage on the part of either the insurer or insured. A. 10 day B. 72 hour C. 14 day D. 35 day - Correct answer s ✅D. 35 day Which of the following is considered a "garage operation"? I. Ownership, maintenance or use of garage premises. II. Sale of products or services in connection with garage operations. III. Ownership or maintenance of covered autos. IV. Production or support of racing or competitive operations. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. Basic C. Broad only D. Basic and Broad - Correct answer s ✅A. None 4. Volcanic action is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Both Basic and Broad - Correct answer s ✅D. Both Basic and Broad Sprinkler leakage is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above - Correct answer s ✅D. All of the above All of the following provide an additional amount of insurance under the Commercial Building and Personal Property form, except: A. Lottery Tickets B. Newly acquired property C. Property off-premises D. Outdoor Property - Correct answer s ✅A. Lottery Tickets Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Which of the following forms cover flood and earthquake damage? A. Building and Personal Property form B. Special form C. Broad form D. None of the above - Correct answer s ✅D. None of the above The Earthquake and Volcanic Eruption endorsement provides coverage: A. Against earthquake from volcanic eruption B. For commercial buildings and other covered property when used in conjunction with another Cause of Loss forms C. For damage caused by shocks that occur within 168-hours after policy expiration if these shocks began during the policy period D. All of the above - Correct answer s ✅D. All of the above The Commercial Building and Personal Property Coverage form excludes all of the following types of property, except: A. Securities B. Property of others in the insured's care, custody and control C. Land D. Patios or other paved surfaces - Correct answer s ✅B. Property of others in the insured's care, custody and control Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Under the Commercial Building and Personal Property form, coverage for the "building" includes: A. Additions and extensions to the building B. Property used to service the building C. A heating system D. All of the above - Correct answer s ✅D. All of the above Under the Commercial Building and Personal Property form, coverage for "business personal property" includes: A. Furniture B. Machinery C. Stock D. All of the above - Correct answer s ✅D. All of the above Sinkhole collapse is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above - Correct answer s ✅D. All of the above A building valued at $100,000 was insured for $80,000 with a policy containing 80% Florida 6-20 All Lines Adjuster Test Question & Answers 2024 A. 6 months B. 5 years C. 2 years D. 12 months - Correct answer s ✅C. 2 years If the civil authority blocks access to the insured's premises because of a covered peril that has damaged a building down the street, what period of time will the Business Income forms pay the insured for loss of income at his/her premises? A. One week B. Two consecutive weeks C. Four consecutive weeks D. Three consecutive weeks - Correct answer s ✅C. Four consecutive weeks Under the Condominium Association form, coverage is based on: A. The Commercial Property form B. The association agreement and bylaws C. The Special Cause of Loss form D. State and local ordinances - Correct answer s ✅B. The association agreement and bylaws What is generally excluded on the Condominium Commercial Unit-Owners form? A. The improvements and betterments of the unit-owner B. Hostile fire damage Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. Building coverage D. Inside appliances and fixtures - Correct answer s ✅C. Building coverage If both the Condominium Association form and the Condominium Unit-Owner form cover the same property, how will the loss be handled? A. Each policy will pay pro-rata B. The Association policy will be excess over the Unit-Owners C. Each policy will share equally in the loss D. The Unit-Owners policy will be excess over the Association policy - Correct answer s ✅D. The Unit-Owners policy will be excess over the Association policy Which of the following losses to perishable stock would be covered by the Spoilage Endorsement? A. Power outage B. Mechanical breakdown or contamination C. Changes in temperature, humidity, or contamination resulting from a power outage on or off the premises D. All of the above - Correct answer s ✅D. All of the above With Commercial Property insurance, how would the insured receive replacement cost Florida 6-20 All Lines Adjuster Test Question & Answers 2024 loss settlement on damage (as a result of a covered peril) to the Personal Property of Others left in the insured's care custody and control? A. Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy, B. Request the Replacement Cost endorsement on Business Personal Property C. Insure the Property of Others for at least 100% of the cost to replace it. D. Send in periodic reports to the insurer on the value of the property of others left in the insured's care custody and control - Correct answer s ✅A. Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy, Which of the following statements regarding aircraft insurance is incorrect? A. The physical damage coverage is written with a flat deductible. B. Coverage for passengers can be excluded. C. Special coverage must be arranged for Air Meet liability coverage. D. Wear and tear is excluded. - Correct answer s ✅A. The physical damage coverage is written with a flat deductible. Most aircraft hull policies are written on a: A. Replacement cost basis B. Market value C. Valued basis D. Actual cash value basis - Correct answer s ✅C. Valued basis Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. Liability to passengers is treated as a separate exposure D. Cannot exclude passenger liability - Correct answer s ✅C. Liability to passengers is treated as a separate exposure Which of the following is not covered under aircraft hull insurance? A. Personal effects B. Fuselage C. Wheels D. Propeller - Correct answer s ✅A. Personal effects Common carriers are responsible for damage to customer goods they transport except for damage resulting from: A. Acts of God B. Traffic Accidents C. Load shifting D. Poor vehicle maintenance - Correct answer s ✅A. Acts of God Which of the following commercial inland marine coverage forms covers sums due the insured from customers which are uncollectible due to loss or damage of records? A. Equipment dealers B. Electronic data processing C. Valuable papers and records D. Accounts receivable - Correct answer s ✅D. Accounts receivable Florida 6-20 All Lines Adjuster Test Question & Answers 2024 The Commercial Inland Marine coverage form "jeweler's block" excludes loss resulting from: A. Earthquake B. Shortage found upon taking inventory C. Unexplained disappearance D. All of the above - Correct answer s ✅D. All of the above The Commercial Inland Marine coverage form "valuable papers and records" includes coverage for: I. Money and securities II. Deeds, drawings and maps III. Books, files and mortgages A. I and II B. I and III C. II and III D. II only - Correct answer s ✅C. II and III The ______is an ideal form of protection for the frequent shipper of goods. A. Trip transit policy B. Annual transit policy C. Monthly transit policy Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. Common Carrier motor truck cargo policy - Correct answer s ✅B. Annual transit policy Mr. Jones owns a jewelry store. His wife takes a very valuable necklace and wears it to a party. It is stolen. How will the jeweler's block policy respond to cover this loss? A. The policy will cover the loss. B. The loss will be denied C. The policy will pay the loss on an actual cash value basis D. The policy will pay replacement cost less depreciation - Correct answer s ✅B. The loss will be denied XYZ Road Construction Company has a fleet of equipment that consists of bulldozers, backhoes, and road scrapers. The owner desires physical damage coverage to cover the equipment. Which of the following types of insurance contracts would be appropriate to provide the proper coverage? A. Commercial property coverage B. General liability coverage C. Auto physical damage coverage D. Contractors equipment floater - Correct answer s ✅D. Contractors equipment floater Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. A clerk witnessing a customer shoplifting merchandise. D. A clerk being robbed at gunpoint. - Correct answer s ✅A. A store's year-end inventory coming up short by 5%. A prospective insured wishes to protect her firm against criminals taking money from a messenger going from the firm to a bank. In this situation, the prospect should purchase coverage for: A. Fidelity B. Robbery C. Assault D. Burglary - Correct answer s ✅B. Robbery Under a Fidelity Bond, which of the following parties receives protection? A. A subcontractor B. An employee C. An employer D. A creditor - Correct answer s ✅C. An employer Which of the following losses would be covered under a Robbery and Safe Burglary coverage? A. Valuables kept in a locked safe are destroyed by fire. B. Cash disappears from a locked safe, with no explanation. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. Jewelry is stolen from a locked safe that shows no signs of forced entry. D. Rare manuscripts are stolen from a locked safe that shows signs of forced entry. - Correct answer s ✅D. Rare manuscripts are stolen from a locked safe that shows signs of forced entry. Which of the following losses would be covered under a crime policy's "Inside the Premises Robbery or Safe Burglary of Other Property" coverage? A. Broken windows on the insured premises caused by a burglar. B. Theft of money and securities. C. Fire damage to the insured building caused by a burglar. D. Vandalism to a trailer on the insured premises caused by a burglar. - Correct answer s ✅A. Broken windows on the insured premises caused by a burglar. In crime insurance, which of the following individuals is NOT considered to be a "custodian"? A. Sales clerk B. Janitor C. Partner D. Named insured - Correct answer s ✅B. Janitor To be defined as a burglary, an event must include which of the following conditions? A. Robbery B. Fear or threat of violence Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. Visible signs of forced entry or exit D. Mysterious disappearance - Correct answer s ✅C. Visible signs of forced entry or exit The Dye's host a party. When the guests arrive, they place their coats in the bedroom. Two days later, Mr. Dye discovers that his ring is missing from the bedroom dresser. This loss is referred to as a: A. Mysterious disappearance B. Burglary C. Robbery D. Theft - Correct answer s ✅A. Mysterious disappearance In crime insurance, a "custodian" is described by which one of the following? A. Any authorized person outside the premises B. An authorized person having care of insured property inside the premises C. An authorized person outside the premises in charge of money D. An authorized person going to the post office - Correct answer s ✅B. An authorized person having care of insured property inside the premises Which of the following terms provides the broadest definition of criminal activity? A. Burglary B. Robbery C. Theft Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. Not cover the loss, since only loss of merchandise is covered - Correct answer s ✅B. Not cover the loss, since acts by employees are excluded Under the "Inside the Premises Theft of Money and Securities" insuring agreement of a Crime Policy, which of the following situations would NOT be covered? A. Cash in the register is destroyed in a fire. B. Traveler's checks that have turned up missing. C. A casino suffers a theft of slot machine tokens. D. Cash that is taken by employees. - Correct answer s ✅D. Cash that is taken by employees. In crime insurance terminology, an officer of the company having care and custody of insured property outside the insured premises is known as a: A. Scheduled executive B. Custodian C. Messenger D. Insured property executive - Correct answer s ✅C. Messenger In crime insurance terminology, a salesperson having possession of the insured's property on-premises is known as a: A. Custodian B. Insured Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. Messenger D. Watchperson - Correct answer s ✅A. Custodian In Commercial Crime coverage, the "Inside the Premises Theft of Money and Securities" insuring agreement would cover loss of all the following, except: A. Currency B. Jewelry C. Tokens and tickets D. Checks and drafts - Correct answer s ✅B. Jewelry Which of the following are parties to a contract bond? I. Principal II. Surety III. Obligee IV. Employee A. I, II, and III only B. I, II, III, and IV C. I and II only D. I and III only - Correct answer s ✅A. I, II, and III only The Equipment Breakdown policy is designed to cover equipment ______ the insured. A. Owned by Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. Leased to C. Operated by D. All of the above - Correct answer s ✅D. All of the above If an initial "accident" to a boiler causes three other boilers to have accidents, under the insurance policy, all four events will be considered: A. One event. B. Two events. C. Three events. D. Four events. - Correct answer s ✅A. One event. An "accident" under an Equipment Breakdown policy includes: A. Sudden breakdown of an object. B. Gradual breakdown of an object. C. Leakage of a valve. D. All of the above. - Correct answer s ✅A. Sudden breakdown of an object. The maximum amount of coverage provided for spoilage to covered property caused by contamination under an Equipment Breakdown policy is: A. $5,000. B. $10,000. C. $25,000. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 The BOP is designed to cover all of the following, except: A. Gas stations. B. Small apartment houses. C. Medium size clothing stores. D. An office complex with 7,500 square feet in total floor area. - Correct answer s ✅A. Gas stations. All of the following are exclusions under the standard BOP form, except: A. Governmental action. B. Building ordinance C. Earth movement. D. Transportation. - Correct answer s ✅D. Transportation. The Now Company carries a special BOP policy with a liability limit of $500,000. The company is involved in an occurrence causing $200,000 bodily injury damage and $200,000 property damage. The total amount payable as damages under the policy is: A. $100,000 B. $200,000 C. $400,000 D. $500,000 - Correct answer s ✅C. $400,000 The BOP policy form does not cover: Florida 6-20 All Lines Adjuster Test Question & Answers 2024 A. Personal property of the insured B. Debris removal. C. Cracking of a steam boiler D. Personal property of others. - Correct answer s ✅C. Cracking of a steam boiler Businessowners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to: A. 10 days. B. 30 days. C. 20 days. D. 60 days. - Correct answer s ✅B. 30 days. An apartment buildings may be covered by a Businessowners Policy (BOP) if it does not have more than: A. 15,000 square feet B. 10,000 square feet C. 35,000 square feet D. 30,000 square feet - Correct answer s ✅C. 35,000 square feet Under the BOP, how much is paid for pollution clean-up and removal in case of a covered Florida 6-20 All Lines Adjuster Test Question & Answers 2024 loss? A. $10,000 B. Any amount that does not exceed the limit of the policy C. 25% of the loss D. Not covered - Correct answer s ✅A. $10,000 Under the BOP, up to how many years can the insurer request the insured's books and records? A. Four years. B. Two years. C. Three years. D. Five years. - Correct answer s ✅C. Three years. Under the BOP, what does the hired and non-owned auto liability endorsement cover? A. Hired and non-owned auto coverage if the insured is not covered by a commercial auto policy. B. Owned autos that are excluded by a commercial auto policy. C. Primary coverage for an employee using their car on company business. D. Excess premises liability coverage for mobile equipment. - Correct answer s ✅A. Hired and non-owned auto coverage if the insured is not covered by a commercial auto policy. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. After 24 hours C. After 48 hours D. After 60 hours - Correct answer s ✅C. After 48 hours An insured carries a DP-2 with $10,000 contents coverage. He owns a canoe and stores it at a lake in a private non-owned garage. Fire destroys the garage and the boat. How much coverage will his policy provide? A. Up to $1,000. B. Up to $500. C. Nothing D. $1,500 - Correct answer s ✅C. Nothing An insured's home is covered by the DP-3 form. The policy provides $20,000 in coverage on a home that would cost $50,000 to replace. When high winds destroy the roof, it is determined that it will cost $2,000 to replace it. Assuming the actual cash value of the roof is $750, how much will the insured collect for this loss? A. $2,000 B. $1,600 C. $1,000 D. $1,750 - Correct answer s ✅C. $1,000 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Mr. Simpson owns a dwelling in a rural area close to a small wooded area. He is covered under a DP-3 form. A deer sees it's reflection in a picture window and jumps through and enters the dwelling causing significant wall and floor damage. Some of the furniture is damaged and must be replaced. He is covered for $100,000 on the dwelling and $50,000 on the contents. Which of the following would apply to this loss? A. The entire loss would be denied. B. Pay replacement cost on the dwelling and ACV for the contents loss. C. Pay replacement cost on the dwelling and the contents. D. Deny the contents claim and pay the dwelling loss on a replacement cost basis. - Correct answer s ✅D. Deny the contents claim and pay the dwelling loss on a replacement cost basis. The insured is covered under a DP-1 Dwelling Policy with coverage on the dwelling in the amount of $100,000. He has a detached garage valued at $10,000. Both structures are destroyed by a fire. What is the total amount recoverable under the policy? A. $110,000 B. $100,000 C. $95,000 D. $105,000 - Correct answer s ✅B. $100,000 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 An insured lived close to Mount St. Helens and carried a DP-2 policy. When the volcano erupted, the movement of the earth caused his home to collapse. He reported the claim as a volcanic eruption loss. What do you feel would be the result of this claim? A. The claim would be covered under the peril of volcanic eruption B. A portion of the claim based on a deductible percentage would be paid. C. The claim would be denied. D. The claim would be paid for ACV only under these circumstances. - Correct answer s ✅C. The claim would be denied. A water pipe has burst and the insured has suffered floor and ceiling damage in his two-story home. He is covered under a DP-2 form with dwelling and contents coverage. The building codes now require that special piping installation is needed at an additional cost of $500 over and above the normal cost to repair. His dwelling limit is $100,000. What will the policy pay if the normal cost to repair is $400? A. The policy will pay a total of $400. B. The policy will pay a total of $900 C. The policy will pay $500. D. The policy will pay $700. - Correct answer s ✅B. The policy will pay a total of $900 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. $100,000 D. $250,000 - Correct answer s ✅D. $250,000 Under the Emergency Program, a National Flood Insurance policy will insure single-family residences for up to: A. $35,000 B. $100,000 C. $150,000 D. $250,000 - Correct answer s ✅A. $35,000 The normal waiting period for coverage under a Flood Insurance policy is ____ from the date the application and premium are sent to the NFIP. A. 45 days B. 60 days C. 30 days D. 90 days - Correct answer s ✅C. 30 days The standard deductible for the Regular Program under a Flood Insurance policy is: A. $1,000 B. $250 C. $750 D. $500 - Correct answer s ✅A. $1,000 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Which of the following is not covered under the Flood Insurance policy? A. Livestock B. Motor Vehicles C. Outdoor Swimming Pools D. All of the above - Correct answer s ✅D. All of the above What forms the basic eligibility requirements for all of the residual markets in Florida? A. Location B. Construction of the risk C. Fire protection of the risk D. Risk is unable to find a market for the required coverage. - Correct answer s ✅D. Risk is unable to find a market for the required coverage. Which of the following must occur before a risk is eligible for the Florida Workers Compensation Joint Underwriting Association? A. The risk has suffered heavy losses B. The cost of the current rates are prohibitive C. The employer has been declined by at least two carriers D. None of the above - Correct answer s ✅C. The employer has been declined by at least two carriers _______ limit an insurer's liability. A. Provisions Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. Reinstatements C. Exclusions D. None of the above - Correct answer s ✅C. Exclusions What is Florida's law pertaining to mechanical breakdown coverage limits? A. Minimum deductible is $250 B. Coverage must be on an "all risk" basis C. Flood coverage must be included D. None of the above - Correct answer s ✅D. None of the above The stacking of uninsured motorist (UM) limits in Florida is subject to choices made by the insured. Those choices are: A. The insured can reject the coverage B. The insured can elect lower limits than his/her liability coverage C. The insured can elect "non-stacked" UM coverage D. All of the above - Correct answer s ✅D. All of the above A ______ health policy affords the greatest degree of continued protection to an insured. A. Guaranteed renewable B. Non-cancellable C. Optionally renewable D. Conditionally renewable - Correct answer s ✅B. Non-cancellable Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. $2,500 - Correct answer s ✅C. $5,000 A person sustains $4,000 in medical expenses and $5,000 for lost wages under PIP. This person dies as a result of his injuries. How much death benefit would be paid? A. $10,000 B. $5,000 C. $1,000 D. $2,500 - Correct answer s ✅C. $1,000 A(n) _____ is a group of hospitals and physicians who have joined together in an effort to reduce medical costs. A. HMO B. PPO C. Medicare Supplement D. None of the above - Correct answer s ✅B. PPO Under what circumstances would PIP coverage not be considered primary coverage? A. The "at fault" drivers does not have auto coverage. B. Workers compensation coverage is applicable to the claim. C. Medical insurance is in force. D. Disability income coverage is in force. - Correct answer s ✅B. Workers compensation coverage is applicable to the claim. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Florida statues provide that any person who is damaged by certain insurer practices is granted a right to sue the insurer for damages. Which one of the following would not apply? A. Not attempting in good faith to settle claims when it could and should have done so. B. Refusing to pay an uncovered claim. C. Making claim payments to insureds that are not accompanied by a statement setting forth the coverage under which payments are being made. D. Failing to promptly settle non-liability claims under one portion of coverage, where the obligation has become reasonably clear, in order to influence settlements under other portions of coverage. - Correct answer s ✅B. Refusing to pay an uncovered claim. Which of the following is not considered a person that is transacting insurance and therefore not required to be licensed? A. A clerical employee who performs routine filing duties for an insurance company. B. An attorney who assists in settling claims. C. A claims adjuster D. An employee who quotes insurance premiums. - Correct answer s ✅A. A clerical employee who performs routine filing duties for an insurance company. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 All the following are correct regarding the continuing education requirements to maintain a license in Florida, except: A. Licensees must complete 24 hours of continuing education every two years. B. The hours required must include five hours of ethics and law. C. Excess hours may be carrier over to the next compliance period. D. The law requires that adjusters must complete three hours of basic claims handling. - Correct answer s ✅D. The law requires that adjusters must complete three hours of basic claims handling. Every insurer must maintain claim files that are subject to examination for the Insurance Department for: A. The previous year and the current year. B. The current year and three previous years. C. The current year and four previous years. D. The current year and five previous years. - Correct answer s ✅B. The current year and three previous years. The law requires that a third party claim involving a minor can be settled with both parents of the minor when the amount is not in excess of: A. $25,000 B. $10,000 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 II. The federal government. III. The state insurance department. A. I only. B. III only. C. I and II only. D. I, II, and III. - Correct answer s ✅C. I and II only. The responsibility of the federal government in regulating the insurance industry is limited to: A. Monitoring the ethical conduct of individual insurance adjusters. B. Fair labor standards and anti-trust matters. C. Monitoring the financial solvency of insurance companies. D. Reviewing and approving insurance rates, policies, and forms. - Correct answer s ✅B. Fair labor standards and anti-trust matters. An insurance company that is formed and domiciled under the laws of a particular state is an example of a (n): A. Domestic Insurer. B. Foreign Insurer. C. Domiciled Insurer. D. Alien Insurer. - Correct answer s ✅A. Domestic Insurer. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Which of the following is a requirement for obtaining an agent's or adjuster's license? A. Must be 21 years of age. B. Must have completed at least two years of college coursework. C. Must have an insurance producer's license in the state. D. Must satisfy the Insurance Commissioner of trustworthiness. - Correct answer s ✅D. Must satisfy the Insurance Commissioner of trustworthiness. The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as: A. Twisting. B. Rebating. C. Defamation. D. Misrepresentation. - Correct answer s ✅A. Twisting. An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of: A. Twisting. B. Unfair Claim Settlement Practices. C. A felony. D. Misrepresentation. - Correct answer s ✅B. Unfair Claim Settlement Practices. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be guilty of: A. Unfair Claim Settlement Practices. B. Misrepresentation and False Advertising. C. Defamation. D. Coercion. - Correct answer s ✅B. Misrepresentation and False Advertising. Should an agent or adjuster have a change of address, the obligation to notify the Insurance Department lies with: I. The company that employs the adjuster or company that appoints the agent. II. The licensee. III. The licensee's supervisor. A. I and II. B. I only. C. II only. D. I, II, and III. - Correct answer s ✅C. II only. An incorporated insurance company with its capital divided into shares is the definition of: A. A Mutual Company. B. A Domestic Company. C. A Stock Company. D. A Foreign Company. - Correct answer s ✅C. A Stock Company. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. All of the above. - Correct answer s ✅D. All of the above. An act of terrorism must be "certified" to be such an act by: A. The President of the United States. B. The Senate C. The House of Representatives. D. The Secretary of the Treasury. - Correct answer s ✅D. The Secretary of the Treasury. :All of the following events are considered acts of terrorism, except: A. Acts of riot and civil commotion B. Acts considered dangerous to human life, property or infrastructure. C. Acts resulting in damage within or outside the United States. D. Acts committed at the premises of any United States mission. - Correct answer s ✅A. Acts of riot and civil commotion In order to be certified as an act of terrorism under the Federal Terrorism Act, property and casualty losses must exceed ____ for any one event: A. $500,000 B. $1,000,000 C. $3,000,000 D. $5,000,000 - Correct answer s ✅D. $5,000,000 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 None of the following can be covered by the Federal Terrorism Act insurance program, except: A. Most commercial property and casualty risks. B. Federal crop insurance. C. Personal insurance policies. D. Health and life insurance policies. - Correct answer s ✅A. Most commercial property and casualty risks. No act will be certified by the Secretary as an act of terrorism under the Federal Terrorism Act if: A. The act is not committed as part of the course of war declared by Congress. B. The act is one of terrorism as defined by the Act. C. The losses that occur relate to commercial property risks. D. The losses that occur relate to life insurance. - Correct answer s ✅D. The losses that occur relate to life insurance. All of the following are considered acts of rebating, except: A. An agent provides an all-expenses paid cruise to a client and his wife in exchange for writing the coverage on his national chain of restaurants. B. An agent sends holiday greeting cards to all the clients on his mailing list. C. An adjuster receives a monthly check from an auto body repair shop for recommending the repair shop to clients who have a claim. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. All of these situations are considered acts of rebating. - Correct answer s ✅B. An agent sends holiday greeting cards to all the clients on his mailing list. Under the extension of the Terrorism Risk Insurance Act the federal government will share in the losses for a certified act of terrorism if: A. Total losses for all insurers exceed $100 million dollars B. An insurer is responsible for the first 20% of losses as a deductible, and then the government will pay 85% of remaining claim amounts. C. The total certified acts of terrorism for the program year have not exceeded $100 billion dollars D. All of the above - Correct answer s ✅D. All of the above The federal law enacted to control the ways financial institutions and insurance companies deal with the private information of individuals is: A. The FAIR Plan B. The Gramm-Leach-Bliley Act C. The CAN-Spam Act D. The Fair Credit Reporting Act - Correct answer s ✅B. The Gramm-Leach-Bliley Act An incorporated insurance company owned by its policyholders is: A. A Stock Company. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. Personal Transportation Floater. - Correct answer s ✅A. Personal Articles Floater. The Inland Marine coverage form which covers clothing, cameras and other portable property worn or carried by tourists and travelers is a: A. Personal Effects Floater. B. Personal Articles Floater. C. Camera and Musical Instrument floater. D. Theatrical Property Floater. - Correct answer s ✅A. Personal Effects Floater. Sue Stokers owns an expensive collection of jewelry. She is worried about the fluctuating values of gold, silver and diamonds. She has the collection appraised. Her agent suggests a Personal Articles Floater to insure these items. If she wants to avoid a decrease in her coverage due to a decrease in market value, which of the following clauses should she can have included in her policy? A. Functional Replacement Cost B. Actual Cash Value C. Agreed Amount D. Diminished Value - Correct answer s ✅C. Agreed Amount Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Jim Cress owns an expensive fine arts collection. He has it appraised and covered under a Personal Articles Floater. He takes his collection to England to have it auctioned. While the collection is in his hotel room, it is stolen. Which of the following is true? A. The loss is not covered B. Fine arts are covered for fire only when outside the covered territory C. Theft does not apply to fine arts D. Property awaiting auction is never covered - Correct answer s ✅A. The loss is not covered An insured owns an expensive rare painting. He has it appraised by an art dealer and has it insured for $50,000 under a Personal Articles Floater. There is a market decline for this item. It is destroyed in a fire at his office. The company offers him $40,000 which is the current market value. Which of the following is true regarding this loss? A. It will not be covered since it is away from the insured's residence B. It will be covered for the full $50,000 amount C. The company is correct in offering fair market value at the time of the loss D. The company will ask for a reevaluation of the item based records and documentation of his cost, the current market value and the appraised value - Correct answer s ✅B. It will be covered for the full $50,000 amount The daughter of an insured is attending college and her family carries a Tenant's Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Homeowner policy HO-4 with $50,000 contents coverage. The daughter has about $15,000 of personal belongings consisting of clothing, musical instruments and electronic equipment, some appliances and other personal items. Which form would be used to cover her property exposures? A. Personal Effects Floater B. Personal Articles Floater C. Personal Property Floater D. The Homeowner Form - Correct answer s ✅C. Personal Property Floater John and Susan have a Homeowner policy with a $5,000 deductible. John has purchased some expensive camera equipment to take on a cruise for recording their trip. Special scuba gear and sportswear have also been purchased for both. They are concerned about fire and theft. What coverage would you recommend? A. Personal Articles Floater B. Personal Property Floater C. Personal Effects Floater D. Reduce the Homeowner deductible temporarily - Correct answer s ✅C. Personal Effects Floater An insured has her fur coat specifically covered under a Personal Articles Floater. It Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. All of the above - Correct answer s ✅D. All of the above Protection and Indemnity Coverage contained in an Ocean Marine policy covers: A. Guarantees the purpose of the voyage B. Loss of the shipper' fees. C. Marine legal liability for damages caused by the ship D. Damage to another vessel caused by collision - Correct answer s ✅C. Marine legal liability for damages caused by the ship Although Ocean Marine Hull and Cargo coverages are usually written on an open peril basis, they exclude losses caused by inherent vice. The term "inherent vice" means: A. The potential of property to self-destruct. B. Negligence by masters or members of the crew. C. Losses caused by the dishonesty of crewmembers. D. Any loss resulting from illegal activities. - Correct answer s ✅A. The potential of property to self-destruct. In Ocean Marine Insurance, what is the purpose of the IVEL clause? A. To pay for the loss of shipper's fees B. To require the insured to take all reasonable steps to protect the property from further loss. C. To provide excess hull and collision liability coverage Florida 6-20 All Lines Adjuster Test Question & Answers 2024 D. To cover bulk shipments - Correct answer s ✅C. To provide excess hull and collision liability coverage What is meant by "break bulk" cargo? A. Cargo shipped in a tanker ship B. Cargo that is loosely packed such as ores C. Loose cargo such as cartons D. Containerization cargo - Correct answer s ✅C. Loose cargo such as cartons Which of the following is not essential in determining if a salvage award is to be made? A. Life-saving efforts B. The property involved must be in peril from some hazard C. The salvage service must be voluntary D. The effort must be successful - Correct answer s ✅A. Life-saving efforts What is the purpose of freight insurance? A. Covers loss to the cargo B. Covers shipper fees C. Covers the insurable interest of the shipper due to jettison of the cargo D. Covers the cargo until it reaches the warehouse - Correct answer s ✅B. Covers shipper fees In case of a loss, how many days' notice does the insured have after notification of a claim Florida 6-20 All Lines Adjuster Test Question & Answers 2024 to submit the claim to the underwriters of the Ocean Marine coverage? A. 90 days B. 60 days C. 180 days D. 30 days - Correct answer s ✅C. 180 days The insured is hit in the rear while stopped at a traffic light. The insured's company pays for his repairs then seeks reimbursement from the responsible party. This is described as: A. Subrogation. B. Reimbursement. C. Arbitration. D. Appeal. - Correct answer s ✅A. Subrogation. 2. Damage to a windshield by a bird would be covered under: A. Collision B. Comprehensive C. Liability D. All of the above. - Correct answer s ✅B. Comprehensive The Personal Auto Policy provides coverage in all of the following locations, except: A. Hawaii B. Mexico Florida 6-20 All Lines Adjuster Test Question & Answers 2024 covered under which of the following personal auto coverages? A. Collision B. Comprehensive C. Uninsured motorist D. P.D. liability - Correct answer s ✅A. Collision A stolen car is covered under which of the following personal auto coverages? A. Collision B. Comprehensive C. Uninsured motorist D. P.D. liability - Correct answer s ✅B. Comprehensive As a result of an auto accident, the insured sustains bodily injury worth $50,000. The responsible party carries auto liability insurance in the amount of $15/30/5. The insured's $100,000 underinsurance coverage would pay: A. $15,000 B. $35,000 C. $50,000 D. $100,000 - Correct answer s ✅B. $35,000 The purpose of "underinsured motors" coverage is to: A. Provide coverage for a "hit-and-run" driver. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. Pay for injuries sustained by insureds who have been injured when the at-fault driver carries auto limits less than the financial responsibility of the state in which the insured was injured. C. Provide coverage for the insured when the at-fault driver carries less coverage than that needed to pay for the insured's injuries. D. Provide coverage when the at-fault driver's insurance company denies the claim. - Correct answer s ✅C. Provide coverage for the insured when the at-fault driver carries less coverage than that needed to pay for the insured's injuries. An uninsured motor vehicle includes: A. An insured vehicle whose insurer denies coverage. B. An insured vehicle whose insurer becomes insolvent. C. A "hit and run" vehicle. D. All of the above. - Correct answer s ✅D. All of the above. The PAP Medical Payments cover: A. The insured as driver. B. A passenger. C. The insured as pedestrian. D. All of the above. - Correct answer s ✅D. All of the above. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Under the PAP Medical Payments, the time limit for incurring medical expenses is: A. 6 months. B. 1 year. C. 2 years. D. 3 years. - Correct answer s ✅D. 3 years. The PAP liability coverage excludes all of the following, except: A. Intentional injury. B. Damage to insured property. C. Damage to property of others in the insured's care. D. Damage to property of others due to the insured's motor vehicle negligence. - Correct answer s ✅D. Damage to property of others due to the insured's motor vehicle negligence. All of the following are considered insureds under the PAP, except: A. Any person using the insured auto. B. A family member using the insured auto. C. Any organization the insured represents. D. Any person using an auto not owned by the insured. - Correct answer s ✅D. Any person using an auto not owned by the insured. An auto liability policy with split limits of 15/30/5 would pay what maximum amount in the event of a covered bodily injury loss to three people? A. $5,000 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 An uninsured motorist vehicle under the Personal Auto Policy includes all of the following, except: A. Hit and run vehicle whose driver cannot be identified. B. A vehicle newly acquired by the named insured. C. A vehicle insured by the company that is insolvent. D. A vehicle to which no liability bond or insurance policy provides coverage at the time of the accident. - Correct answer s ✅B. A vehicle newly acquired by the named insured. What is the limit for damage to a non-owned trailer under the Personal Auto Policy? A. $500 B. $1,000 C. $1,500 D. $2,000 - Correct answer s ✅C. $1,500 All of the following are covered under Coverage A of a Homeowner Policy, except: A. Attached garage. B. Construction materials used in building an addition to the dwelling. C. Detached garage. D. A central air conditioning system. - Correct answer s ✅C. Detached garage. The type of coverage on contents provided by the HO-3 is: Florida 6-20 All Lines Adjuster Test Question & Answers 2024 A. Open perils. B. Named perils. C. Basic form. D. Comprehensive. - Correct answer s ✅B. Named perils. Under the Homeowner Policy, theft coverage does not cover theft of property: A. Committed by the insured. B. From a dwelling under construction. C. From the residence of the insured's tenant. D. None of the above are covered. - Correct answer s ✅D. None of the above are covered. An apartment dweller would be in the market for a: A. H0-2 B. H0-3 C. H0-4 D. H0-6 - Correct answer s ✅C. H0-4 The personal liability coverage for Mr. Jones' Homeowner Policy would cover Jones if: A. His dog bit his neighbor on the nose. B. His 14-year-old son burned down his house. C. He negligently bumped into his son while running to work. D. All of the above. - Correct answer s ✅A. His dog bit his neighbor on the nose. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 Coverage F of the Homeowner Policy applies to: A. The named insured. B. Resident relatives. C. Tenants of the insured. D. Social invitees. - Correct answer s ✅D. Social invitees. Coverage E of the Homeowner Policy involves: A. Premises liability. B. Personal activities. C. Acts of residence employees. D. All of the above. - Correct answer s ✅D. All of the above. Which of the following Homeowner forms provides the least amount of perils coverage? A. HO-5 B. HO-3 C. HO-2 D. HO-8 - Correct answer s ✅D. HO-8 Coverage D - Loss of Use provides which of the following percentages of Coverage A under the H0-2? A. 10 Florida 6-20 All Lines Adjuster Test Question & Answers 2024 All of the following are exclusions under the Homeowner Policy, except: A. Intentional loss. B. Flood. C. Earth movement. D. Volcanic eruption. - Correct answer s ✅D. Volcanic eruption. A Homeowner Policy may be cancelled by the insured: A. For any reason. B. At any time. C. Both A and B. D. Neither A nor B. - Correct answer s ✅C. Both A and B. Homeowner Medical Payments Coverage does not apply to bodily injury to which of the following? A. The insured's seven-year old son who fell down the front stairs. B. An appliance repairman working on the insured premises. C. An insured boarder who trips in her apartment over a rug. D. All of the above. - Correct answer s ✅D. All of the above. Watercraft excluded from coverage under Section II of the Homeowner Policy includes all of the following, except: Florida 6-20 All Lines Adjuster Test Question & Answers 2024 A. Inboard owned by the insured. B. Outboard owned by the insured of 25 horsepower. C. 30-foot sailboat rented to the insured. D. Inboard-outboard of 80 HP owned by the insured. - Correct answer s ✅B. Outboard owned by the insured of 25 horsepower Under the Damage to Property of Others coverage of a Homeowner Policy, section II, property damage caused intentionally by an insured is excluded if the insured is: A. 13 years old. B. 18 years old. C. 21 years old. D. Any of the above. - Correct answer s ✅D. Any of the above. Under Section II - Additional Coverages of the Homeowner Policy, the insurer agrees to pay: A. The cost of a legal defense. B. Premiums on bonds connected with liability suits. C. Investigation cost. D. All of the above. - Correct answer s ✅D. All of the above. A condominium owner-occupant would be in the market for a: A. HO-2. B. HO-3. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 C. HO-4. D. HO-6. - Correct answer s ✅D. HO-6. A Homeowner Policy can be purchased by: A. A person buying a home under the installment plan. B. An individual who owns a home under the course of construction. C. The owner of a seasonal dwelling who is insured under a Homeowner Policy for her primary dwelling. D. All of the above. - Correct answer s ✅D. All of the above. A homeowner has a fire that totally destroys a $200 typewriter before the fire is extinguished. If the fire coverage on contents contains a $250 deductible, the insured will receive: A. $200 B. $50 C. $250 D. $ 0 - Correct answer s ✅D. $ 0 The limit of liability of any property insurance contract in a given loss is the: A. ACV settlement. B. RC settlement. C. Policy limits. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 policy or endorsement forms are broadened and no additional premium is required, then all existing similar policies or endorsements will be construed to include the broadened coverage? A. Liberalization B. Assignment C. Binder D. Coinsurance - Correct answer s ✅A. Liberalization Which of the following provides written evidence of coverage pending the issuance of a policy? A. Cause of Loss form B. Assignment C. Binder D. Blanket coverage - Correct answer s ✅C. Binder Which of the following is an example of a Loss Evaluation Method? A. Liberalization B. Cause of Loss form C. Stated amount D. Conditions - Correct answer s ✅C. Stated amount The cost of replacement minus depreciation is the definition of: Florida 6-20 All Lines Adjuster Test Question & Answers 2024 A. Valued Policy B. Market Value C. Replacement Cost D. Actual Cash Value - Correct answer s ✅D. Actual Cash Value Which of the following is a method of requiring the insured to insure at least 80% of the value of the covered commercial property? A. Cause of Loss form B. Standard Mortgage clause C. Loss Payable clause D. Coinsurance clause - Correct answer s ✅D. Coinsurance clause Which of the following is a basis for insuring property that allows the insured to report the value of the building contents to the insurance company on a monthly basis? A. Blanket Basis B. Reporting Form C. Specific Basis D. Agreed Value - Correct answer s ✅B. Reporting Form Which of the following is NOT a factor in determining negligence on the part of the insured? A. Legal duty is owed. Florida 6-20 All Lines Adjuster Test Question & Answers 2024 B. There is a breach of protection. C. Proximate cause. D. Damage. - Correct answer s ✅B. There is a breach of protection. In liability insurance, policy limits that apply one limit to each person injured, another for bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident is: A. Aggregate limits B. Split limits C. Single limit D. Total limits - Correct answer s ✅B. Split limits An insurance contract that is contingent on an uncertain event is referred to as? A. Executory B. Aleatory C. Contract of adhesion D. Conditional - Correct answer s ✅B. Aleatory Mr. Jones is involved in an at-fault accident. The other party was also at fault. The method to determine damages due each party based on a percentage of negligence is known as: A. Contributory negligence