Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review, Exams of Public Law

Download Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review and more Exams Public Law in PDF only on Docsity! Florida Claims Adjuster Exam, 6-20 All Lines Adjuster, Questions and answers. Peril - Correct Answer Something that causes a loss. Hazard - Correct Answer Something that increases the probability that a loss will occur. Warranty - Correct Answer A policy condition, either based on information in the insureds application or inserted by the insurer. It is a guarantee of a fact. Misrepresentation - Correct Answer an untrue statement by the insured, made in an application for insurance but which does not become a part of the policy. Concealment - Correct Answer The failure of the insured to reveal relevant facts known to the insured in applying for insurance. Abandonment - Correct Answer Property insurance policies usually contain an abandonment clause, stating the insured cannot dump damaged property on the insurer and demand its full value. Severability - Correct Answer The insurance applies separately to each insured as if other insureds did not exist. Proximate Cause - Correct Answer The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. Courts employ a set of rules to resolve causation disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is more than one peril at work in a fact pattern. Under common law, whether the policy provides coverage depends on which peril is chosen as the proximate cause. Direct Loss - Correct Answer Physical harm to tangible property. Indirect Loss - Correct Answer Economic loss which flows as a result of direct loss. Actual Cash Value(ACV) - Correct Answer Replacement Cost Minus Depreciation Coinsurance - Correct Answer The amount, generally expressed as a fixed percentage, an insured must pay against a claim after the deductible is satisfied. It's ultimately a way for the insured and insurer to share responsibility for the risk. It can also help reduce the cost of the insurance policy premium. Coinsurance can be written on an 80/20, 90/100, or 100% rule. Personal Contract - Correct Answer Policies cover people who own and operate things, such as automobiles. Conditional Contract - Correct Answer Also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. If the other agreement or condition is performed, then the conditional contract is enforceable and the parties are bound to carry out the terms of the contract. Contract of Indemnity - Correct Answer Principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he/she occupied before the loss occurred, no better or no worse. Insurable Interest - Correct answer the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. Waiver - Correct answer 1.) Implied voluntary relinquishment, abandoning a legal advantage, need, claim or right. 2.) Agreement or added clause of a policy that excludes some losses or limits the sum of a claim, or extends coverage to add items not in a normal policy. Express Waiver - Correct Answer Occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. Implied Waiver - Correct Answer A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a right. Damages - Correct Answer Monetary compensation that is awarded by a court in a civil action to an individual who has been injured through the wrongful conduct of another party. Subrogation - Correct Answer When an insured has a right to collect damages from another party, but instead elects to claim the damages under his insurance policy, his rights against the other party are transferred to the insurer. Changes - Correct Answer All policies provide that any changes to the policy be made by the insurer, in writing. Policy Period - Correct Answer The condition states that coverage applies only to losses or occurrences that take place during the policy period. (Prior to the stated date and time of termination). Policy Territory - Correct Answer Condition limiting coverage to occurrences or losses that take place only within a stated geographical region. Other Insurance - Correct Answer The principle of indemnity dictates against duplicate recovery for the same loss. Alien Insurer - Correct Answer Insurer is an insurer other than a domestic or foreign insurer. Appointment - Correct Answer The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf an insurer or employer. Derelict - Correct Answer Material which is or may have been a motor vehicle or mobile home, with or without all component parts, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal or component parts or both. Mechanical Breakdown Coverage - Correct Answer Covers repairs to mechanical parts of your vehicle that break. Even covers break in events not related to an accident. Sliding - Correct Answer Selling an item and stating that it is required by law. What is the Death Benefit amount for PIP? - Correct answer $5,000 What is the amount for medical and disability benefits afforded by PIP? - Correct answer $10,000 Who is the Financial Responsibility Law administered by? - Correct Answer the Department of Highway Safety and Motor Vehicles. What are the Basic PIP Benefits? - Correct answer -Medical-80% of responsible expenses are paid for necessary medical, surgical, X-Ray and dental. -Work Loss-60% of any loss of gross income and loss of earning capacity reimbursed. -Replacement Services-100% for the cost of having household services performed by others. -Death-Effective 01/01/2013 the death benefit will be $5,000 in addition to the $10,000 in medical and disability benefits afforded by PIP. Company or Staff Adjuster - Correct Answer Are salaried employees under the supervision of the home, branch or regional claims department of insurers. Fee Adjusters - Correct Answer Offer their services on a fee-for-service basis. They represent many insurers. Bureau Adjuster - Correct Answer Employee or agent of an adjustment bureau which serves multiple company clients such as the GAB Business Services, Inc. and Underwriters Adjusting Company both national firms. Independent Adjuster - Correct Answer Are Self-Employed and are not affiliated with either insurers or bureaus. They serve as adjuster representatives of insurers, and their services are compensated on a fee-plus-expenses basis for each loss handled. Public Adjuster - Correct Answer Is a claims adjuster who is an advocate for the policyholder in appraising and negotiating an insurance claim. What are the Characteristics of a Personal Auto Policy Declaration Page? - Correct answer -Liability (Bodily Injury) -Property Damage -Uninsured Motorist -Medical Payments -Personal Injury Protection -Collision Deductible -Comprehensive Deductible -Towing Coverage -Rental Coverage What are examples of Transacting Insurance? - Correct answer -Solicitation of Insurance -Negotiation of Insurance -Effecting Coverage (Binding insurance coverage) -Transacting Insurance Matters (during and after insurance is bound). What are thresholds of the No-Fault Law? - Correct answer -Significant and permanent loss of a bodily function or -Permanent injury other than scarring and disfigurement or -Significant and permanent scarring or disfigurement or -Death What is the adjuster’s investigation limited too? - Correct Answer A simple verification of bills and estimates or it may be expanded to include photographs, witness canvasses, or recorded statements as the circumstances require. What are the components of an investigation process? - Correct answer -Inquiry -Verification -Comparison What are some reasons for suspension, revocation or termination of a license? - Correct answer -Transacting Insurance outside of scope of one's license -Misrepresentation or fraud -Sliding -Demonstration of unworthiness or lack of fitness -Misappropriation of funds -Failure to inform Department of financial services, within 30 days, after pleading guilty or no contest to a felony. Florida Unfair Insurance Trade Practices Act - Correct Answer Describes certain practices, penalties are provided for misrepresentation to insureds and claimants and business practices such as -Failing to act promptly -Failure to affirm or deny a claim when an insured is entitled there to -Failure to explain claim denials in writing -Failure to maintain complaint-handling procedures such as keeping accurate records of complaints. Comprehensive Coverage - Correct Answer Covers all loss except collision or overturn. Standard deductible is $100 per car, $500 per occurrence applies to losses from theft, mischief, and vandalism. What is the minimum requirements for the Financial Responsibility Law? - Correct answer -The legally valid claims of others must be satisfied (up to the 10/20/10 requirements) -The owner and operator must provide certification of financial responsibility for future accidents. If not satisfied operator's driver's license and the registrations of all owned vehicles are suspended. What are the basic activities in claims handling? - Correct answer -Investigation to establish coverage, determine legal liability, and verify if the alleged damages qualify the loss for payment. -Evaluation to determine the fair payment in accordance with the contract and applicable law. -Negotiation of a quality settlement based on facts discovered during the evaluation process. Claim - Correct Answer Is the assertion of an alleged legal right against an insurer, which carries with it a demand for appropriate relief. Claims Adjuster - Correct Answer One who is involved in the investigation, adjustment, negotiation and/or trial preparations of claims arising under insurance policies. Adjusting - Correct Answer Process of disposing of an insurance claim. Loan Receipt - Correct Answer A written statement given by the insured to the insurer acknowledging that money received in the settlement of damages is received, not as a final payment, but as an advanced pending the outcome of a claim against the person responsible for the damage. Apportionment - Correct Answer Is a provision for computing and assigning to each of two or more contracts covering a claim its proportion of the amount of the loss. How to settle a claim for an Injured Minor? - Correct Answer Under FL Law, the adjuster should settle a third-party liability claim of an injured minor child with both parents of the injured child, presuming the settlement is for an amount not in excess of $15,000. If it is more than that it must be consummated through the Circuit or County Courts. Declarations - Correct Answer 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. The policy states that if a company wishes to cancel, how many days must it give prior notice? - Correct answer 30 days. Nuclear Endorsement - Correct Answer Excludes all hazards related to nuclear energy. What is Coverage A? - Correct Answer Bodily Injury and Property Damage Insuring Agreement. Bodily Injury(BI) - Correct Answer Physical harm and includes sickness or disease or death resulting there from. Property Damage(PD) - Correct Answer Physical injury to tangible property, including loss of use of that property. Occurrence - Correct Answer an accident, including. continues or repeated exposure to substantially the same general harmful conditions. Accident - Correct Answer A sudden, unexpected event. Coverage Territory - Correct Answer Is the U.S. and its territories or possessions, Puerto Rico and Canada, including international waters and airspace between these places. The Coverage Trigger - Correct Answer Determines how policy will respond. The Occurrence form - Correct Answer Applies to BI or PD which occurs during the policy period, regardless of any later time at which a claim is made. The Claims-Made form - Correct Answer Applies only to a BI or PD which occurs on or after the retroactive date, and for which the claim is received or recorded by an insured or the company during the policy period. Retroactive Date - Correct Answer Establishes the original policy date for a serious of claims made policies. Intentionally Injury - Correct Answer Coverage excludes injury or damage which is expected or intended by the insured. liquor Liability - Correct Answer If the insured is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, liability associated with serving liquor to intoxicated or underage persons or in violation of a law is excluded. Employee Injuries - Correct Answer Coverage excludes liabilities under a worker’s compensation or similar law or arising from injuries to employees of the insured. Pollution - Correct Answer There a basically no coverage for injury, damage or cleanup costs caused by pollutants, subject to minor exceptions. What is Coverage B? - Correct Answer Personal and Advertising Injury. What is Coverage C? - Correct Answer Medical Payments. What are the General Liability Insurance Forms? - Correct answer -Owners and Contractors Protective Liability(OCP)Form. -Liquor Liability Coverage Form. -Products/Completed Operations Liability Coverage Form -Pollution Liability Coverage and Pollution Limited Form. Professional Liability Insurance Coverage - Correct Answer Covers liability arising from rendering of or failure to render professional services. Farm Liability Coverage Form - Correct Answer Provides coverage for BI or PD arising out of farming operations of personal activities. The Custom Farming Endorsement - Correct Answer Provides coverage for liability arising from the insureds performance of farming operations for another, for a charge under any contract or agreement. The Farm Employers Liability/Medical Payments Endorsement - Correct Answer Applies the basic Liability and Medical Payments coverages to injuries to farm employees, but not to employees eligible to receive worker’s compensation benefits. Employment Related Practices Liability - Correct Answer This Form provides employers with claims- made coverage for liability arising out of claims for injury to an employee because of an employment-related offense. Unauthorized Entity - Correct Answer an entity that is required to be licensed or registered with the Florida Office of Insurance Regulation but is operating without the proper authorization is identified as an unauthorized insurer. To be Authorized and transact business in FL what must you have? - Correct Answer Certificate of Authority. General Lines Agent 2-20 - Correct Answer Licensed to write property/casualty, surety, or health insurance. Customer Representative 4-40 - Correct Answer Must be licensed, appointed by a General Lines Agent and may assist in transactions in the OFFICE ONLY. Limited Customer Representative 4-42 - Correct Answer Must be licensed, appointed by a General Lines Agent and transact AUTO insurance in the OFFICE ONLY. All Lines Claims Adjuster 6-20 - Correct Answer Investigates, Evaluates, and Negotiates Claims. A General Lines Adjuster is required to do what? - Correct Answer Participate in 24 hrs. of continuing education every 2 years. A licensee must notify the Department in writing in how many days for change of name, address, phone number or email? - Correct answer 30 days. Loss Sustained - Correct Answer Cover only losses that both occurred and were discovered during the policy period, or within one year of its expiration. Discovery - Correct Answer Any loss discovered during the policy period or within 60 days after its expiration is called regardless of when it occurred. Property Covered - Correct Answer The policy covers only property the named insured owns or holds or for which the insured is legally liable, and for the benefit of the insured. Safe Depository - Correct Answer Covers the named insureds legal liability if it is the safe depository for customer’s property. Perils covered include burglary, robbery, destruction on damage. Valuation - Correct answer Money is valued at its face value; securities at their value on the day loss is discovered; and other property at actual replacement cost or, if less, cost to repair. Government Crime - Correct Answer A slightly different set of basic Crime Coverage Forms is tailored for insuring governmental entities. Guests' Property - Correct Answer Covers the named insureds legal liability for guest's property while in a safe deposit box or while the property is inside the premises or in the named insureds possession. Commercial Crime Forms - Correct Answer Crime Insurance may be written as a separate policy, with its own Declaration and Conditions, or as a package policy, bundled together with Employee Dishonesty. Forgery or Alteration - Correct Answer Provides coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. All of the following are characteristics of an insurance contract EXCEPT? Personal, Private, Conditional, Adhesion? - Correct Answer Private If a claimant is represented by an attorney, the adjuster should? - Correct Answer Only meet with the client when the attorney is present Adjusters should advise claimants on? - Correct answer claims information An adjuster is required to notify a claimant when a claim is denied. The notification must be? - Correct Answer Written The term ethics refers to? - Correct answer service to others, personal respect and proper mode of conduct When an adjuster deals with a claimant who is not a policyholder, this claim is known as an? - Correct answer third party claim The successful adjuster/negotiator should understand that communication includes all of the following EXCEPT? Select one: A. Verbal and non-verbal messages B. Questioning C. Listening D. Decision-making - Correct Answer Decision-making Which of the following is not a duty of the claims adjuster? Select one: A. Investigating B. Evaluating C. Negotiating D. Counseling - Correct Answer Counseling The adjuster's duty to the insurer is best described as? Select one: A. Friendly B. Factual C. Fun D. Fiduciary - Correct Answer Fiduciary Errors and Omissions claims are a result of? Select one: A. unethical behavior B. lack of knowledge or information C. Both unethical behavior and lack of knowledge or information are correct D. Neither unethical behavior and lack of knowledge or information are correct - Correct Answer Both unethical behavior and lack of knowledge or information are correct Unethical behavior affects? Select one: A. The claimant B. The adjuster C. All of the above D. The entire company - Correct Answer All of the above All of the following are components of negotiating EXCEPT? Select one: A. The issue should be negotiable B. There must be an exchange of value for value C. The parties should trust each other D. The claimant must be satisfied - Correct Answer The claimant must be satisfied The Civil Remedies Provision of the Insurance Code states that adjusters should not? Select one: A. Handle claims in a prompt manner B. Accompany claims payments with statements explaining coverage C. Settle claims in good faith D. Try to influence settlements - Correct Answer Try to influence settlements The insured, a resident of Florida, was in an accident in Georgia. The Florida car was insured with liability limits of 10/20/10. Georgia's minimum liability limits are 20/40/10. How will the Florida policy respond? Select one: A. 10/20/10 B. 20/40/10 C. No coverage D. 20/40/20 - Correct answer 20/40/10 Under a PAP, when does the insurance company cease to defend the insured? Select one: A. The insurance company is not obligated to defend the insured B. After the case has been resolved C. When the policy limit is exhausted D. At the policy's expiration - Correct Answer When the policy limit is exhausted The Florida Financial Responsibility Law is triggered by? Select one: A. Registration of the vehicle B. Purchase of the vehicle C. An accident involving bodily injury or property damage D. Purchase of an auto policy - Correct Answer an accident involving bodily injury or property damage The insured is an owner and is insured for PIP. She is injured in an accident and has the following damages? medicals-$12,000, lost wages-$6,000. How much will PIP pay if there is a $1,000 deductible? Select one: A. $11,200 B. $12,400 C. $9,600 D. $10,000 - Correct answer $10,000 Trucker insurance premiums are based on all EXCEPT? Select one: A. Radius B. Age of the driver C. Type of business D. Territory garaged - Correct Answer Age of the driver Joe works for Sinks-R-Us, Inc. As part of his compensation package, he is supplied with a company car, which he gets to take home every night. Joe wants to make sure the Liability coverage under his PAP covers him while driving his company car. What coverage would you add to Joe's PAP? Select one: A. Named Non-owned coverage B. Extended Non-Owned Liability coverage C. Drive Away Liability coverage D. False Pretense coverage - Correct Answer Extended Non-Owned Liability coverage Dan has a Personal Auto Policy with Liability of 10/20/10 and basic PIP with a $1,000 deductible. He is running one day when a car strikes him. A week later he dies. Medical bills are $7,500 and lost wages are $1,000. How much, if any, will PIP pay in this claim? - Correct answer 10,800.00 Joe is an owner insured for PIP. In which of the following situations does Joe have his PIP benefits available to him? Select one: A. In a slip and fall accident in the mall in Florida B. In an accident while riding his motorcycle C. Struck as a pedestrian in Georgia D. In an accident while riding as a passenger in a friend's car in Florida - Correct Answer in an accident while riding as a passenger in a friend's car in Florida The insured bought a new car with a Mechanical Breakdown Policy. When the odometer reaches 40,000 the car has a serious breakdown involving the transmission. How does the Mechanical Breakdown Policy respond? Select one: A. No coverage because the policy expired B. No coverage because a transmission is not covered Select one: A. An exclusion to Part A\-Liability B. An exclusion to Part D-Physical Damage C. Other than collision D. Collision - Correct Answer Other than collision Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible? Select one: A. $6,000 B. $5,000 C. $15,000 D. $10,000 - Correct answer $6,000 The coverage that provides Liability, Medical Payments and Uninsured Motorist for a named individual who does not own an automobile is? Select one: A. Extended Non Owned B. Driver Other Car C. Named Non Owned D. Extended PIP - Correct Answer Named Non Owned Uninsured Motorists coverage is used to cover the insured for? Select one: A. Bodily injury only B. Bodily injury and property damage C. Medical payments D. Liability - Correct Answer Bodily injury only Sam is an owner and not insured for PIP. Sam borrows Fred's car, which is insured for PIP. Sam has an at-fault accident when he strikes Betty's car. Betty is insured for PIP. As a result of Sam's negligence, Betty is injured and has $5,000 in medical bills. Which of the following is true? Select one: A. Sam does not have Tort Exemption B. Betty may sue Sam and Fred for $5,000 C. Betty must use her own PIP to pay her medical bills D. Sam may recover any damages from Fred's PIP - Correct answer Betty must use her own PIP to pay her medical bills Susie is driving down the street when a dog runs in front of her car. She swerves to avoid the dog and hits a tree. This is an example of? Select one: A. Collision B. Both A and B C. Other than collision D. Neither A or B - Correct Answer Collision Which of the following is not eligible for a homeowner’s policy? Select one: A. Tom who owns the house he rents to his neighbor B. Joe who lives is a garage apartment C. A husband and wife who own a vacation home in Georgia D. Betty who rent a condominium unit - Correct answer Tom who owns the house he rents to his neighbor Homeowner policies are rated on all of the following, EXCEPT: Select one: A. Location of the dwelling B. Age of the homeowner C. Fire protection available D. Construction of the dwelling - Correct Answer Age of the homeowner The insured lives in his principal residence 80% of the year. A flood loss would be paid at which of the following? Select one: A. At 80% coinsurance B. Replacement Cost C. ACV D. Valued Policy - Correct Answer Replacement Cost Under a Dwelling Policy, all of the following are eligible, EXCEPT: Select one: A. A rental apartment in a commercial building B. A 1-6 family dwelling C. A two-family dwelling owned by a corporation D. A mobile home - Correct Answer A 1-6 family dwelling When a community applies for flood coverage, until they are approved they are under: Select one: A. The Regular Program B. The Special Program C. The Emergency Program D. The Flood Program - Correct Answer the Emergency Program If an insured sells his house to another person, the buyer is prohibited from receiving the seller's insurance policy because insurance is a contract of: Select one: A. Conditions B. Adhesion C. Indemnity D. A personal nature - Correct Answer A personal nature All of the following are eligible for a Homeowner Policy, EXCEPT: Select one: A. Renters who maintain resident in any type of building B. Dwellings owned by a corporation C. Owner-occupants of 1-4 family dwellings D. Condominium unit owners - Correct Answer Dwellings owned by a corporation Outdoor equipment used to service the premises is covered under: Select one: A. Coverage C B. Coverage A C. Coverage B D. Coverage D - Correct Answer Coverage C A contract condition of the Homeowners policy which provides that the insured gets the benefit of broadened coverage if the company adopts a broader form without an increase in premium is: Select one: A. Subrogation B. Liberalization C. Assignment D. Coinsurance - Correct Answer Liberalization The coverage territory for Personal Inland Marine Insurance (PAF) is: Select one: A. Whatever is specified in the policy B. Worldwide C. United States D. U.S., Canada, and U.S. territories - Correct Answer Worldwide What condition must be met in a HO Policy for replacement cost to settle the loss? Select one: A. The insured must replace the item lost or damaged B. All of these answers are correct C. The insured must file the claim within 10 days D. The insured must carry insurance of at least 80% of the cost to replace the dwelling - Correct Answer The insured must carry insurance of at least 80% of the cost to replace the dwelling Which HO form covers a condo owner? Select one: A. HO-3 B. HO-2 C. HO-6 D. HO-4 - Correct answer HO-6 B. The builder doesn’t qualify for a Commercial Property Policy C. The builder is licensed D. The insured will be the owner-occupant - Correct Answer D. The insured will be the owner-occupant If an Umbrella Policy serves as primary coverage, what part of the policy allows the insurer to apply a deductible? Select one: A. The Stand Alone Form B. The Follow Form C. The Self-insured Retention D. None of these answers are correct - Correct Answer the Self-insured Retention The provision in the Builders Risk Coverage Form that penalizes the insured for underinsurance is called: Select one: A. Coinsurance B. Full Reporting C. Agreed Value D. Adequate Insurance Clause - Correct Answer Adequate Insurance Clause The insured has a building that has been vacant for 75 days. Which of the following are covered? Select one: A. Theft B. Glass breakage C. Weight of ice and snow D. Vandalism - Correct Answer Weight of ice and snow The insured owns a fireworks factory, which is especially busy during the months of June and July. Which endorsement should he purchase to cover his inventory during these months? Select one: A. Building Ordinance B. Value Reporting C. Peak Season D. Inflation Guard - Correct Answer Peak Season The Builders Risk coverage form covers: Select one: A. Contractors B. Buildings under construction C. Investors D. Builders - Correct Answer Buildings under construction The Builders Risk Coverage Form assumes which coinsurance provision: Select one: A. 90% B. 100% C. 80% D. 70% - Correct answer. 100% In the event that the Condominium Association Coverage form and the Condominium Unit Owners Coverage form both cover a loss, which of the following is true? Select one: A. Both forms pay equally B. The Unit Owner form is primary and the Association form is excess. C. The two forms are prorated D. The Association form is primary and the Unit Owner form is excess - Correct Answer the Association form is primary and the Unit Owner form is excess Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called? Select one: A. A monocline policy B. A valid policy C. A combination policy D. A package policy - Correct Answer A package policy Under the Business and Personal Property Coverage Form the provision for suspension for certain perils applies after: Select one: A. 60 days’ vacancy B. 30 days’ vacancy C. 90 days’ vacancy D. 120 days’ vacancy - Correct answer 60 days’ vacancy Under Business Income Coverage, the period of restoration begins: Select one: A. 72 hours after reporting the loss B. 72 hours after the date of direct damage C. 48 hours after the date of direct damage D. 48 hours after reporting the loss - Correct answer 72 hours after the date of direct damage All of the following are included in the definition of a building, EXCEPT: Select one: A. Floor coverings B. Wall treatments (wallpaper) C. Temporary structures on or within 100 feet of the premises D. Copy machines - Correct Answer Copy machines Three types of property are covered under the Building and Personal Property coverage form. They are: Select one: A. Building; Business Personal Property; Personal Property of Others B. Building; Your Personal Property; Detached structures C. Building; Personal Property; Personal Property of Others D. Building; Your Business Personal Property; Your Personal Property - Correct Answer Building; Business Personal Property; Personal Property of Others When covered property is damaged, the cost for temporary repairs and the cost to expedite permanent repairs or replacement is covered under: Select one: A. Defense Costs B. Supplementary Payments C. Automatic Coverage D. Expediting Expenses - Correct Answer Expediting Expenses A florist wanted coverage on business contents, which vary in amount over the course of a year. Which form best fits this situation? Select one: A. Peak Season Endorsement B. None of the above C. Value Reporting Endorsement D. An automatic increase in insurance - Correct Answer Value Reporting Endorsement Under the Business and Personal Property Coverage Form, all of the following are additional coverages EXCEPT: Select one: A. Cost to hire a night watchman B. Cost to preserve property C. Debris Removal D. Fire Department Service Charge - Correct Answer Cost to hire a night watchman Which exposures are covered by the Leaseholder Interest Coverage Form? Select one: A. All of the above B. A loss of any unused prepaid rent C. An unused part of tenant improvements D. A tenant's loss of a favorable lease/sub-lease - Correct Answer All of the above A claim is made under a CGL for a slip and fall injury. Two years later the injured person comes back saying the injury has flared-up. Is the reoccurrence covered under CGL Medical Payments? Select one: A. Yes, expenses are covered because of proximate cause. B. No, slip and falls are not covered under Medical Payment coverage D. It covers only lawyers in group practice. - Correct Answer It deducts claims expenses first and the balance is payable for the claim. The three parties to a bond are: Select one: A. Surety, principal and cosigner B. Surety, insured and insurer C. Surety, oblige and indemnitor D. Surety, oblige and principal - Correct Answer Surety, oblige and principal Safe Burglary is defined as: Select one: A. The taking of property by someone who has caused bodily harm B. The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry C. The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry and caused bodily harm D. Any act of stealing - Correct Answer The taking of property by someone who has entered the premises unlawfully as evidenced by visible signs of forced entry All of the following are penalties for non-compliance with Workers Compensation laws, EXCEPT: Select one: A. The employer may be charged a $1000 fine, plus $100 for each day of non- compliance B. The employer may be charged with a second-degree misdemeanor C. The employer's business property may be seized D. The employer's business may be closed - Correct Answer The employer's business property may be seized Under Workers Compensation, what is the waiting period for disability benefits to begin? Select one: A. 30 days B. 7 days C. 14 days D. 21 days - Correct answer 7 days A fourth party to a bond is called a: Select one: A. Surety B. Principal C. Indemnitor D. Oblige - Correct Answer Indemnitor Bill sent a cashier's check through the mail, but it never arrived at the destination of the recipient. Under which bond can the cashier's check be replaced? Select one: A. Fiduciary bond B. Blue Sky bond C. Lost Instrument bond D. Payment bond - Correct Answer Lost Instrument bond A Florida employee was sent Boston to work for one week. While in Boston, they were injured on the job. How is the injury covered under WC benefits? Select one: A. The injury is covered under Florida's WC law B. There is no coverage under either state law C. The injury is covered under Massachusetts WC law D. None of the above - Correct Answer The injury is covered under Florida's WC law Contract bonds include all of the following, EXCEPT: Select one: A. Permit bond B. Performance bond C. Bid bond D. Maintenance bond - Correct Answer Permit bond In the non-construction industry, all of the following employments are exempt from Workers Compensation EXCEPT: Select one: A. Pro athletes B. Casual labor completed in 30 days for $750 C. Labor under sentence of a court order D. Domestic servants in private homes - Correct Answer Casual labor completed in 30 days for $750 Which bond protects the consumer against misrepresentation of a securities dealer? Select one: A. Blue Sky bond B. Permit bond C. Payment bond D. Lost Instrument bond - Correct answer Blue Sky bond Under Part One of the WC policy, what is the limit for recovery of medical bills incurred by an employee as a result of work related injuries? Select one: A. $100, 000 B. $150,000 C. No limit D. $250,000 - Correct Answer No limit An employee is injured on the job and is out of work for 10 days. How many days' wages can this employee recover? Select one: A. No recovery B. 5 days C. 3 days D. 10 days - Correct answer 3 days An employee of ABC Financing altered and cashed a check for $2000. The loss is payable under which insuring agreement? Select one: A. No coverage B. Robbery Inside the Premises C. Forgery or Alteration D. Employee Theft - Correct Answer Employee Theft Bill was employed by Jane's Flower Shoppe for two days when he receives a work related injury. Bill misses 14 days of work. How long does Bill have to wait before he can begin receiving WC benefits? Select one: A. 14 days B. He wasn't employed long enough to have WC coverage C. 21 days D. 7 days - Correct answer 7 days On the way to the bank to make a deposit, an employee loses the bank bag. How is this money covered? Select one: A. Money and Securities B. Robbery C. Burglary D. Employee Theft - Correct answer Money and Securities Failure to comply with the Workers Compensation Law is: Select one: A. A third-degree felony B. A second-degree felony C. A first-degree misdemeanor D. A first-degree felony - Correct Answer A third-degree felony Employees of ABC Manufacturing are required to wear steel-toed shoes when they are in the factory. An employee who injures their foot because they are not wearing safety shoes while in the plant would have their benefits reduced by: Select one: A. 20% An insured wants to fly to Canada and then down to Mexico. Will he have coverage available for this trip? Select one: A. He cannot go outside the U.S. B. There is coverage in Canada, but not in Mexico C. There is coverage in Canada, and 100 miles into Mexico D. There is coverage in Mexico, but not in Canada - Correct Answer There is coverage in Canada, and 100 miles into Mexico Admitted Liability is: Select one: A. Requires a legal action for injuries B. None of the above C. Applicable to passengers carried for hire D. Not applicable to passengers carried for hire - Correct Answer Not applicable to passengers carried for hire The minimum basic liability limit for a Boiler and Machinery policy is: Select one: A. $500,000 B. $1,000,000 C. $250,000 D. $100,000 - Correct answer $500,000 he Valuation Clause in Boiler and Machinery coverage provides for replacement cost if: Select one: A. Property is repaired or replaced within 18 months B. Property is repaired or replaced within 24 months C. Property is repaired or replaced within 36 months D. Property is repaired or replaced within 48 months - Correct Answer Property is repaired or replaced within 18 months Which Commercial Inland Marine policy would cover those who ship and receive goods on a single trip basis? Select one: A. Motor Truck Cargo B. Trip Transit C. Trailer Interchange D. Annual Transit - Correct Answer Trip Transit One category of Commercial Inland Marine insurance is "Instrumentalities of Transportation and Communication. All of the following are covered under this form, EXCEPT: Select one: A. Tractor trailer trucks B. Pipelines C. Radio and TV towers D. Bridges and tunnels - Correct Answer Tractor trailer trucks Covered losses in a Boiler and Machinery Policy include: Select one: A. Explosion, overheating, burning and cracking B. Leaking at the valve, fitting or shaft C. The functioning of a safety device D. Depletion, deterioration and wear and tear - Correct Answer Explosion, overheating, burning and cracking The master of the ship voluntarily sacrifices the ship's cargo to save the ship. If the loss is settled with each interest paying a pro-rata share of the loss, it is known as: Select one: A. Sue and Labor B. Particular Average C. General Average D. Demurrage - Correct Answer General Average Perils of the Sea includes all of the following, EXCEPT: Select one: A. Wind B. Collision and sinking C. Fire D. Waves - Correct Answer Fire Under Boiler and Machinery insurance, an "accident" is defined as: Select one: A. Occurring within the policy period of an occurrence policy B. A continuous and repeated exposure to the same condition C. A sudden and accidental breakdown of a part D. A one-time occurrence - Correct Answer A sudden and accidental breakdown of a part Underwriting an aircraft hull policy includes all of the following considerations, EXCEPT: Select one: A. Pilot's age B. Age and condition of the plane C. Type of plane D. Size of the plane - Correct Answer Pilot's age The coverage for damage to an aircraft under the care, custody and control of the insured while the plane is in storage is: Select one: A. Hanger keepers Liability B. Extra Expense Endorsement C. Admitted Aircraft Liability D. Storage Endorsement - Correct Answer Hanger Keepers Liability Which of the following describes a Guaranteed Renewable Policy? Select one: A. The insurer is required to renew to a stated age with no increase in premiums B. None of the above C. The insurer is required to renew to a stated age, but may increase premium D. The insurer cannot cancel during the policy term, but reserves the right to non-renew - Correct Answer The insurer is required to renew to a stated age, but may increase premium Which best describes health insurance? Select one: A. Disability Insurance B. Property insurance C. Liability insurance D. None of the above - Correct Answer Disability Insurance All of the following are true concerning Joint Underwriting Associations, EXCEPT: Select one: A. Policyholders must be unable to purchase insurance on the open market B. Citizens replaced FRP&CJUA and Florida Windstorm C. It is not possible to purchase Homeowner policies under JUA, only Dwelling policies D. JUA operations are overseen by a Board of Governors - Correct Answer It is not possible to purchase Homeowner policies under JUA, only Dwelling policies Health insurance protects against all of the following, EXCEPT: Select one: A. Bodily injury B. Disablement C. Death by accident D. Injury of the job - Correct Answer Injury of the job A selected group of hospitals and doctors in a given area who have joined together to reduce medical costs is: Select one: A. A Professional Practitioner Group B. An HMO C. A Health Managed Hospital D. A PPO - Correct Answer A PPO A homeowner could not find coverage on the open market and looked to the residual market for coverage. What Joint Underwriting Association would handle this risk? Select one: Which is not a requirement for licensure as an adjuster? Select one: A. Be a bonsaied resident of Florida B. Be appointed by a company C. Be appointed by an office manager D. Take an approved course and pass a state exam - Correct answer e appointed by a company If an adjuster terminates their insurance appointment, how long from the date of the termination do they have to reactivate their appointment? Select one: A. 5 years B. 4 years C. 3 years D. 1 year - Correct answer 4 years Which of the following is not one of the basic claims activities of the adjuster? Select one: A. Defining claims B. Negotiating claims C. Evaluating claims D. Investigating claims - Correct Answer Defining claims Which of the following is not one of the duties of FLDFS? Select one: A. To investigate charges of unethical conduct of adjusters B. To set rates for various company products C. To license adjusters D. To supervise the claims activity of adjusters - Correct Answer to set rates for various company products Which of the following would not result in license suspension? Select one: A. Selling a product for which one is not licensed B. Calling another agent or adjuster a crook C. Representing a policy truthfully D. Making false entries on an insurance application - Correct Answer Representing a policy truthfully A company had its certificate of authority revoked because of bad sales practices. This type of company is known as: Select one: A. An admitted company B. An unedited company C. An unauthorized company D. An authorized company - Correct Answer an unauthorized company Which is not a fiduciary responsibility of a claims adjuster? Select one: A. Maintain loyalty to the company B. Reveal all underwriting facts to the underwriter C. Withhold pertinent information from the company D. Properly account for all monies - Correct Answer Withhold pertinent information from the company What is a foreign insurance company? Select one: A. A company that is not an alien company B. A company chartered outside the state of Florida C. A company chartered inside the state of Florida D. A company chartered in another country - Correct Answer A company chartered outside the state of Florida The continuing education requirement to maintain an adjuster's license in Florida is: Select one: A. Five hours every two years B. Twenty-four hours every two years C. Ten hours every two years D. Not required for any adjuster license - Correct Answer Twenty-four hours every two years What is the minimum age that a person can obtain an adjuster's insurance license? Select one: A. 23 B. 21 C. 25 D. 18 - Correct answer 18 What is the function of the insurance department? Select one: A. To pass insurance laws B. To administer insurance laws C. To negotiate ethical standards within the insurance industry D. To act as an advocate for agents and adjusters - Correct Answer to administer insurance laws Who does the adjuster represent when they are working on a claim? Select one: A. The company B. The insurance agent C. The customer D. The State of Florida - Correct Answer The company A company was incorporated in Massachusetts and has their home office in that state. What type of company is this when they do business in Florida? Select one: A. They are an unauthorized company B. They are a domestic company C. They are a foreign company D. They are an alien company - Correct Answer They are a foreign company An adjuster moved from one city on Florida to another. What length of time does she have to notify FLDFS of the address change? Select one: A. 10 days B. 60 days C. 30 days D. 45 days - Correct answer 30 days Representing to an applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of a motor vehicle insurance when such a coverage or product is not required by law is known as: Select one: A. Churning B. Rebating C. Twisting D. Sliding - Correct Answer Sliding