Insurance Quiz Answers and Questions, Exams of Law

Download Insurance Quiz Answers and Questions and more Exams Law in PDF only on Docsity! 1 [Date] Florida Claims Adjuster Exam Questions with Verified Answers. 1. Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - Correct answer D. All listed interests Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one payment is made by the insurer and it is up to the additional interests on working out their share. 2. Insurance applies separately to each insured as if other insured’s did not exist. This is defined as: A. Severability B. Conditional C. Warranty D. None of the above - Correct answer A. Severability 3. Property insurance policies usually contain a (n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value: A. Pro Rata B. Abandonment C. Liberalization D. All of the above - Correct answer B. Abandonment 4. A (n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject: A. Conditional Contract B. Personal Contract C. Economic Contract D. Insurable Interest - Correct answer D. Insurable Interest 5. States that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage. A. Cancellation Clause B. Policy Period C. Pro Rata D. Liberalization - Correct answer D. Liberalization 6. The time frame is typically 60 days. 2 [Date] 7. The __________ states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence. A. Doctrine of Proximate Cause B. Doctrine of Perils & Hazards C. Insurance Policy Handbook D. Doctrine of Property Insurance - Correct answer A. Doctrine of Proximate Cause 8. For example, if a property insurance policy covers the peril of fire but further damage is caused by smoke, water used to extinguish, and the process of moving property away - fire is considered to be the *proximate cause* of all of the damage. 9. The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as? A. Actual Cash Value B. Replacement Cost C. "Old for New" D. None of the above - Correct answer A. Actual Cash Value 10. A policy condition, either based on information in the insured's application or inserted by the insurer, is defined as: A. Warranty B. Misrepresentation C. Concealment D. None of the above - Correct answer A. Warranty 11. The following are basic characteristics of a property or liability insurance contract, except: A. Personal Contract B. Conditional Contract C. Loss of Settlement Contract D. Contract of Adhesion - Correct answer C. Loss of Settlement Contract 12. The Insurer's responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as? A. Conditional Contract B. Adhesion Contract C. Indemnity Contract D. All of the above - Correct answer A. Conditional Contract 13. "May be conditioned" 14. Which of the following is not one of the "Thresholds" in the "No-Fault" law? A. Death of the Insured 5 [Date] B. Excess Structures C. Personal Property D. Dwelling - Correct answer A. Other Structures 36. Examples include sheds, fences, pool houses, detached car ports, etc. 37. A lender has an insurable interest in a home and finds protection in the: A. Loss Payee Clause B. Mortgagee Clause C. Lender Clause D. Additional Insured Clause - Correct answer B. Mortgagee Clause 38. Mortgagee - Homeowner's policy 39. Loss Payee - Automobile policy 40. Which of the following forms is "all-risk" on the dwelling policy? A. DP-1, or the Basic Form B. DP-2, or the Broad C. DP-3, or the Special Form D. None of the above - Correct answer C. DP-3, or the Special Form 41. When the basic liability limits provided by the policy are insufficient for an insured’s needs, two coverage forms are used to provide the additional amounts of coverage: A. Excess Liability B. Umbrella C. Both A & B D. None of the above - Correct answer C. Both A & B 42. Which of the following is not covered under Coverage C, Personal Property? A. A fire breaks out in the residence and an overnight guest loses his clothes in the fire B. A fish dies because he has been left alone for a week without food C. The insured’s daughter’s tennis racket is stolen from her locker D. The insured’s suitcase and clothing, valued at $1,500, are stolen from his hotel - Correct answer B. A fish dies because he has been left alone for a week without food 43. Animals are listed as an "exclusion" under a Homeowner's policy. 44. All of the following are eligible for a Homeowner's Policy, except? A. An apartment tenant B. A condominium owner C. Four-family dwelling owner-occupant D. A business condo owned by a local insurance company - Correct answer D. A business condo owned by a local insurance company 45. Commercial property is not eligible for a Homeowner's policy. 6 [Date] 46. Which of the following are characteristics of Homeowner's Insurance? A. Protects against economic loss to residences and household property and legal liabilities B. Owner-occupants of 1-4 family dwellings C. Renters who maintain residential occupancy in any type of building D. All of the Above - Correct answer D. All of the Above 47. Also included: personal, non-business risk, no more than 2 roomers/boarders, condominium unit owners and cooperative apartment occupants 48. Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is averaged at $25,000 and Jeremy decides to stay in a hotel because most of the damage is to his bedroom and kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel room bill? A. Fair Rental Value B. Value Obligation C. Loss of Use D. Insurers Duties - Correct answer C. Loss of Use 49. The insurer will pay any necessary and reasonable expenses associated with a daily living routine. 50. An insured who wishes to purchase flood insurance, but is located in a moderate or low risk flood zone may do so by purchasing a: A. Preferred Risk Flood Policy B. Standard Flood Policy C. Universal Flood Insurance D. None of the above - Correct answer A. Preferred Risk Flood Policy 51. Although Flood Insurance is provided by the Federal Government, those who are not in a "flood zone" may purchase a preferred risk policy to cover them for a flood claim. 52. Used only for Commercial Condominiums, it covers the unit-owners business personal property and the personal property of others in the insured's care, custody or control: A. Condominium Dwelling Form B. Personal Condominium Unit Owners Form C. Condominium Unit Owners Form D. None of the above - Correct answer C. Condominium Unit Owners Form 53. Does not cover buildings since coverage would typically be provided under the Condo Association coverage form issued. 54. The Commercial Property Contract includes all of the following, except: A. Common Policy Conditions B. Commercial Property Conditions C. Coverage Form D. Commercial Loss Schedule - Correct answer D. Commercial Loss Schedule 55. Also included: Declarations, Causes of Loss Form, Endorsements 7 [Date] 56. Insures a condominium association against direct physical loss or damage to buildings, business personal property and personal property of others in the care, custody or control of the association and located at the premises: A. Condominium Association Form B. Condominium Unit Owners Form C. Condominium Insured Owner Form D. None of the above - Correct answer A. Condominium Association Form 57. This, along with Condo Unit Owners Form, is located under Condo Coverage. 58. Sometimes referred to as commercial fire and allied lines, this is the form of insurance that covers direct and indirect losses related to properties other than one-to-four family dwellings and farm properties: A. Business Property Insurance B. Building Property Insurance C. Commercial Property Insurance D. None of the above - Correct answer C. Commercial Property Insurance 59. (The question is the definition for this term) 60. Under Commercial Property Policies, Florida law requires an insurer to give the insured at least __________days advance written notice of non-renewal. A. 25 B. 90 C. 45 D. None of the above - Correct answer C. 45 61. Also, notice must state reasons the policy is not to be renewed. 62. When a business's personal property values fluctuate, a single, fixed amount of insurance could produce either over- or under-insurance at any given time. With this option, the limit of coverage is set at an amount somewhat higher than expected peak values. A. Value Reporting B. Replacement Cost C. Agreed Value D. None of the above - Correct answer A. Value Reporting 63. Replacement Cost is incorrect b/c it calculates monetary value of one's personal property 64. Liberalization states, "The insured gets the benefit of any broadened coverage if the company, within __________ days of inception, adopts a form revision that is broader and without increase in premium." A. 10 days B. 55 days C. 65 days 10 [Date] A. Includes B. Excludes C. Prohibits D. Summarizes - Correct answer B. Excludes 84. Firms involved in nuclear activities receive protection from special insurer pools organized for that purpose. 85. Toxic wastes escaped from a gas station disposal tank. The insured operator discovers the leak and cleans up the spill. Unfortunately, the waste quickly seeped into the ground and has caused illness among the residents of a neighboring community this is an example of? A. Loss Known B. Known Loss C. Claims-Made D. None of the above - Correct answer B. Known Loss 86. Insurer should have been notified and further investigation of the spill and effective clean-up would have been observed. 87. Applies to BI or PD which occurs during the policy period, regardless of any later time at which a claim is made: A. Occurrence Form B. Claims-Made Form C. Premises and Operations Exposure D. None of the above - Correct answer A. Occurrence Form 88. Vs. Claims-Made: applies only to BI or PD occurring on or after retroactive date for which claim is received/recorded during policy period 89. 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: A. Occurrence B. Claims-Made C. Operations Completed D. None of the above - Correct answer B. Claims-Made 90. Retroactive date is stated in Declarations and will normally be same date as issuing company's first claims-made effective date for insured. 91. All of the following are components of Workers Compensation, except: A. Up to $750,000 in Death Benefits B. Reimbursement for Medical Expenses incurred C. Reimbursement for lost wages on percentage basis D. Funeral costs up to $7,500 - Correct answer A. Up to $750,000 in Death Benefits 92. Compensation for death is payable if death results within one year of an accident or if it follows disability within five years of accident. 11 [Date] 93. The following are classes of disability, except: A. Permanent Total B. Temporary Total C. Permanent Impairment D. Temporary Full - Correct answer D. Temporary Full 94. Also included: Temporary Partial 95. The measure to determine disability benefits is the __________ of the employee at the time of injury: A. Average Monthly Wage B. Average Weekly Wage C. Average Daily Wage D. Income Estimate - Correct answer B. Average Weekly Wage 96. Disability - incapacity due to injury to earn same or any other employment wages that employee was receiving at time of injury. 97. Mandatory for risks exceeding certain annual premiums, recognizes the prior loss experience of the risk and applies either a debit for unfavorable experience or a credit for better-than-expected loss results. This is defined as: A. The Experience Rating Plan B. The Retrospective Rating Plan C. The Risk Plan D. None of the above - Correct answer A. The Experience Rating Plan 98. This, along with Retrospective Rating Plan, is a manual rating process until premiums reach a certain level. 99. Under workers compensations, a rate is charged for every __________ of payroll to employees. A. $100 B. $1,000 C. $10 D. $500 - Correct answer A. $100 100. The National Council on Compensation Insurance enforces this rating. 101. Under Workers Compensation, Part Four You’re Duties if Injuries Occur, an employer is required to: A. Provide the names/addresses of injured persons and witnesses B. Promptly provide any legal papers C. Cooperate and assist as insurer requests D. All of the Above - Correct answer D. All of the Above 102. Also included: immediate contact with insurer, providing immediate medical or other services, do nothing to interfere with insured's right of recovery, make no voluntary payments or assume any obligation except at employer's own cost. 12 [Date] 103. Under Workers Compensation, Employers Liability includes: A. Claims by others for the liabilities to insured’s employees B. Claims by relatives of injured employees for consequential damages C. Claims made by employees that are not subject to Workers Comp Laws D. All of the Above - Correct answer D. All of the Above 104. Samantha eats uncooked chicken at a local barbecue joint and becomes violently ill. Which of the following workers compensation benefits would pay for this occurrence? A. A products and completed operations form B. A premises and operations form C. An owners and contractors protective liability form D. None of the above - Correct answer D. None of the Above 105. Samantha is not an employee of the barbecue joint; Workers Comp does not apply. 106. An optional alternative providing for adjustment of premium after expiration, based on a guaranteed basic premium to the insurer to which is added the actual losses incurred by the insured. This is defined as: A. Cost-Plus Rating Plan B. Experience Rating Plan C. Retrospective Rating Plan D. None of the above - Correct answer C. Retrospective Rating Plan 107. Often referred to as Cost-Plus Programs 108. Under Employer's Liability, the minimum limits of liability are: A. 100/100/500 B. 100/500/1000 C. 500/100/500 D. 100/500 - Correct answer A. 100/100/500 109. $100,000 for all claims in each accident 110. $100,000 per employee for disease 111. $500,000 for all disease claims 112. Under Inside The Premises - Robbery or Safe Burglary of Personal Property, a special limit of __________ per occurrence applies to articles whose principal value is precious metals, precious or semiprecious stones, pearls or furs, and to the physical or intrinsic value of manuscripts, drawings or records: A. $1,000 B. $2,000 C. $4,000 D. $5,000 - Correct answer D. $5,000 15 [Date] 133. Court - protect opposing party from loss 134. Which of the following are characteristics of a License Bond? A. To guarantee the licensee will act according to laws B. Protect public from unfair business practice C. Proper collection and payment of taxes D. All of the Above - Correct answer D. All of the Above 135. Guarantees the performance between the principle and the oblige: A. Principal B. Oblige C. Surety D. All of the above - Correct answer C. Surety 136. Aka Bonding Company; Surety is a "guarantee" 137. This bond guarantees indemnification to the oblige for any losses resulting from the principal's failure to complete the contract work in accord with specifications: A. Performance B. Bid C. Court D. Maintenance - Correct answer A. Performance 138. Considered a contract bond 139. One who undertakes to perform, to fulfill a contract or to meet an obligation is known as: A. Principal B. Oblige C. Surety D. All of the above - Correct answer A. Principal 140. Oblige - needs guarantee principal will perform 141. Surety - guarantees performance between principal and oblige 142. This form of bond is required to accompany a bid for a contract which will require that the successful bidder furnish further bond if awarded the job: A. Bid B. Performance C. Court D. Maintenance - Correct answer A. Bid 143. May act as part of the bonding party and agrees to reimburse the surety for any loss it may suffer from having bonded the principal: A. Inseminator B. Surety C. Oblige 16 [Date] D. None of the above - Correct answer A. Inseminator 144. Known as "fourth party", may put up collateral 145. Which of the following are parties to a Bond? A. Principal B. Oblige C. Surety D. All of the Above - Correct answer D. All of the Above 146. Principal - undertakes to perform/fulfill 147. Oblige - guaranteed principal will perform 148. Surety - guarantees performance 149. *Inseminator - may act as additional party; agrees to reimburse surety for any loss 150. This type of bond covers streets, sidewalks, sewers, etc.: A. Sidewalk B. Subdivision C. Supply D. None of the above - Correct answer B. Subdivision 151. Falls under Maintenance Bond 152. When a person has lost stock certificates, bonds or similar instruments, a bond is generally required by the issuing company to reissue the document. This is known as a: A. Public Official Bond B. Lost Instrument Bond C. Public Instrument Bond D. None of the above - Correct answer B. Lost Instrument Bond 153. Also guarantees to save issuer from any loss growing out of lost instrument 154. A __________ is a selected group of hospitals and medical practitioners in a given area who have joined together in an effort to reduce medical costs. A. HMO B. Major Medical Insurance C. Coinsurance D. PPO - Correct answer D. PPO 155. Most plans provide that emergency treatment will be paid even if treated party does not go to service provider on approved list. 156. Define the coverage that pays a flat amount per day for hospitalization, regardless of expenses or other insurance: A. Hospitalization B. Hospital Indemnity C. Hospital Services D. All of the above - Correct answer B. Hospital Indemnity 17 [Date] 157. This optional provision states that if the insured becomes totally disabled, premiums are waived but the coverage remains in force: A. Waiver of Subrogation B. Waiver of Premium C. Waiver of Value D. None of the above - Correct answer B. Waiver of Premium 158. "Premiums are waived" 159. Provides coverage for expenses, including loss of income, arising from an accident. This is defined as? A. Accident Insurance B. Hospitalization C. Hospital Pay D. None of the above - Correct answer A. Accident Insurance 160. Typical exclusions would be: hernia, war, disease and bacterial infections, suicide attempts, air travel injuries, accidents while committing felony, accidents while under the influence 161. This type of provision states the insurer can refuse to renew the policy only under certain conditions. The policy must state the conditions under which the policy will not be renewed. This is defined as? A. Conditionally Renewable B. Guaranteed Renewable C. Optionally Renewable D. None of the above - Correct answer A. Conditionally Renewable 162. Vs. Optionally: company may not cancel during term but reserves right to non- renew upon expiration 163. Vs. Guaranteed: insurer required to renew policy at stated age (typically 65); company reserves right to increase premium 164. The coverage that is intended to afford protection against catastrophic losses is defined as? A. Major Medical B. HMO C. PPO D. None of the above - Correct answer A. Major Medical 165. Some forms designed to supplement basic policies; others provide both basic and catastrophic coverage 166. A policy may contain a provision which states a period of time between issuance and acceptance before sickness benefits begin. This is defined as: A. Waiting Period B. Elimination Period 20 [Date] C. 18 D. 24 - Correct answer D. 24 182. Once a Customer Representative 4-40 has been licensed and appointed for at least 3 years, he or she may transact insurance in the home of an existing customer. A. True B. False - Correct answer B. False 183. After pleading guilty or no contest to a felony, a licensed individual has _________ days to inform the Department? A. 10 B. 20 C. 30 D. 40 - Correct answer C. 30 184. Must be licensed, appointed by a General Lines Agent and can transact AUTO insurance only in the Office Only. A. Customer Representative 4-40 B. Limited Customer Representative 4-42 C. General Lines Claim Adjuster 6-20 D. General Lines Agent 2-20 - Correct answer B. Limited Customer Representative 4-42 185. Defaming a competitor company or agent is not only unprofessional, it can also result in a license suspension. A. True B. False - Correct answer A. True 186. A General Lines Claim Adjuster is required to obtain the same number of Continuing Education hours as a licensed Customer Service Representative. A. True B. False - Correct answer B. False 187. An Insurance Company which is formed under the laws of the State of Illinois, and has its Home Office there, is considered a: A. US Domestic Company B. Foreign Company C. Alien Company D. Unadmitted Company - Correct answer B. Foreign Company 188. Domestic: this state (FL) 189. Foreign: other state (still in US) 190. Alien: elsewhere 21 [Date] 191. One who is involved in the investigation, adjustment, negotiation and/or trial preparations of claims arising under insurance policies is defined as: A. Insurance Agent B. General Lines Agent C. Claims Adjuster D. All of the above - Correct answer C. Claims Adjuster 192. Commonly referred to as claims auditor 193. Establishing a dollar value on a claim is defined as: A. Negotiation B. Evaluation C. Adjusting D. None of the above - Correct answer B. Evaluation 194. For bodily injury and uninsured motorist claims, a settlement range will be set rather than a single dollar amount 195. Damaged property that may be retrieved, reconditioned and sold to reduce an insured loss is defined as: A. Junk B. Salvage C. Covered Property D. Peril - Correct answer B. Salvage 196. Efficient disposal of salvage reduces amount of loss to either insured or insurer 197. The voluntary or intentional relinquishment of a known right is defined as a (n): A. Waiver B. Estoppel C. Avoidance of Performance D. None of the above - Correct answer A. Waiver 198. The law recognizes two types: express and implied. 199. The principle of utmost good faith on which an insurance contract is based places serious responsibilities on the claims adjuster in regards to: A. Conduct B. Work Habits C. Claim Handling Activates D. All of the Above - Correct answer D. All of the Above 200. The adjuster’s basic activities in claims handling are: A. Investigation B. Evaluation C. Negotiation D. All of the Above - Correct answer D. All of the Above 201. Investigation - establish coverage, determine liability, and verify damages qualify 22 [Date] 202. Evaluation - determine fair payment in accordance with contract and law 203. Negotiation - settlement based on facts discovered during evaluation 204. Under the Florida Unfair Insurance Trade Practices Act, penalties are provided for misrepresentation of business practices, which include all of the following except: A. Failing to act promptly B. Failure to explain claim denials in writing C. Denying claims with reasonable investigation D. Failure to maintain complaint handling procedures - Correct answer C. Denying claims with reasonable investigation 205. An adjuster who represents the financial interests of the insured named in the policy is defined as a (n): A. Public Adjuster B. Bureau Adjuster C. Fee Adjuster D. Independent Adjuster - Correct answer A. Public Adjuster 206. When investigating liability insurance claims, which of the following three major elements are determined: A. Coverage B. Liability C. Damages D. All of the Above - Correct answer D. All of the Above 207. A relationship that requires maintenance of a high degree of fidelity and loyalty to the interests of the principal, whether or not the adjuster is a direct employee is defined as: A. Fiduciary B. Estoppel C. Public D. None of the above - Correct answer A. Fiduciary 208. Should always be maintained whether or not the adjuster is a direct employee 209. An adjuster who is self-employed and not affiliated with either insurers or bureaus is defined as a (n): A. Fee Adjuster B. Public Adjuster C. Bureau Adjuster D. Independent Adjuster - Correct answer D. Independent Adjuster 210. The adjuster's investigation may include all of the following except: A. Verification of Bills and Estimates B. Photographs 25 [Date] 228. The District of Columbia and any state or territory of the United States in which an insurance agent maintains his or her principal place of residence or principal place of business and is licensed to act as an insurance agent. This is defined as: A. Business Territory B. Home Territory C. Home State D. None of the above - Correct answer C. Home State 229. Any material which is or may have been a motor vehicle or mobile home, 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 for its component parts, or a combination of the two. This is defined as: A. Junk B. Derelict C. Major Component Parts D. None of the above - Correct answer B. Derelict 230. An individual appointed by a general lines or agency to assist that agent or agency in transacting the business of insurance from the office of that agent or agency is defined as: A. Customer Representative B. General Lines Agent C. Adjuster D. None of the above - Correct answer A. Customer Representative 231. (4-40 license) 232. The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer is defined as: A. Appointment B. Express Authority C. Registered D. Certificate of Authority - Correct answer A. Appointment 233. Licensees are given authority through the appointment process 234. The Department may issue a nonrenewable temporary license authorizing the appointment of a general lines insurance agent, life agent, or an industrial fire or burglary agent, for a period not to exceed: A. 1 Year B. 6 Weeks C. 1 Month D. 6 Months - Correct answer D. 6 Months 235. How many continuing education hours must an insurance adjuster complete every 2 years? 26 [Date] A. 12 B. 20 C. 24 D. 14 - Correct answer C. 24 236. Which of the following are considered unfair methods of competition and unfair or deceptive acts or practices: A. False Statements B. Unfair Discrimination C. Unlawful Rebates D. All of the Above - Correct answer D. All of the Above 237. A customer representative appointed by a general lines agent or agency in transacting only the business of private passenger motor vehicle insurance from the office of that agent or agency is defined as: A. Automobile Agent B. Automobile Representative C. Limited Customer Service Representative D. Limited Customer Service Agent - Correct answer C. Limited Customer Service Representative 238. An individual representing an insurer as to life insurance and annuity contracts, including agents appointed to transact life insurance, fixed-dollar annuities, or variable contracts by the same insurer is defined as: A. Life Agent B. Life Representative C. General Lines Agent D. None of the above - Correct answer A. Life Agent 239. Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage provided for, without the informed consent of the applicant is a practice of: A. Churning B. Sliding C. Soliciting D. None of the above - Correct answer B. Sliding 240. Which of the following are reasons for refusal, suspension or revocation of a license or appointment? A. Lack of Qualifications B. Failure to Pass State Examinations C. Fraudulent or Dishonest Practices D. All of the Above - Correct answer D. All of the Above 27 [Date] 241. Every licensee shall notify the department, in writing, after a change of name, residence address, principal business street address and/or mailing address within how many days? A. 60 B. 30 C. 15 D. 90 - Correct answer B. 30 242. An agent who transacts any one or more of the following types of insurance: Property, Casualty, Surety, Marine, and Health is defined as a (n): A. Customer Service Representative B. Adjuster C. Health Agent D. General Lines Agent - Correct answer D. General Lines Agent 243. An agent representing a health maintenance organization, or as to health insurance only, an insurer transacting health insurance is defined as a (n): A. Health Agent B. Health Representative C. HMO Agent D. None of the above - Correct answer A. Health Agent 244. An applicant for a temporary license must be: A. A natural person at least 18 years of age B. A US citizen or legal alien who possesses work authorization C. Both A & B D. None of the above - Correct answer C. Both A & B 245. One who is duly authorized by a subsisting certificate of authority issued by the department to transact insurance in this state? This is defined as a (n): A. Unauthorized B. Certified C. Domiciled Insurer D. Authorized - Correct answer D. Authorized 246. Actual Cash Value - Correct answer Replacement cost minus depreciation 247. Subrogation - Correct answer When an insured has a right to collect damages from another party but elects to claim damages under his/her insurance policy; rights transfer to the insurer 248. Loss Payee Clause - Correct answer Provides, in event of payment being made under the policy in relation to insured risk that payment will be made to a third party rather than the beneficiary 30 [Date] 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 281. Implied Waiver - Correct answer May result from some act of neglect on part of the adjuster 282. Express Waiver - Correct answer Occurs when insurer or its representative knowingly gives up a known right under insurance contract 283. Mechanical Breakdown Coverage - Correct answer Covers repairs to mechanical parts of your vehicle that break; even covers in events not related to an accident 284. Identify examples of peril. - Correct answer Fire, windstorm, and flood after hurricane, etc. 285. (Something that causes a loss) 286. How long does one have to notify the Department of Financial Services for a name and/or address change? - Correct answer 30 days 287. What is the coinsurance clause and how might it apply to a given scenario? - Correct answer a coinsurance clause on a property policy requires the policyholder to carry, at minimum, a specified percent of the dwelling's replacement cost. Failure results in monetary penalty. 288. Almost without exception, the percentage is 80% in coinsurance clauses of homeowner policies - this means the insured should carry 80% of replacement cost if they don't want to be penalized at the time of loss. 289. What are the minimum requirements for the Financial Responsibility Law? (There are two) - Correct answer 1. Legal valid claims of others must be satisfied up to the 10/20/10 requirements 290. 2. owner/operator must provide certification of financial responsibility for future accidents 291. What is PIP and how may it apply to a given scenario? - Correct answer Personal Injury Protection with limit of $10,000 per person, per accident 292. If Jeremy has a not-at-fault accident and he has PIP with a $1000 deductible, he can expect PIP to pay $1,600 of his $3,000 medical bill. 293. (3,000 - 1,000 = 2,000 x .80 = 1,600) 294. What is the difference between PIP and Workers Compensation? Which one is excess? - Correct answer PIP is primary against all other forms of medical and disability insurance coverage. Florida courts have held PIP is excess over Workers Comp. To eliminate duplicate recoveries, the law prohibits persons who have received PIP from recovering same amounts from others in legal liability actions. 31 [Date] 295. What are the basic PIP benefits? - Correct answer 1. Medical; 80% of reasonable expenses are paid for necessary medical, surgical, x-ray, dental, and rehab services 296. 2. Work Loss; 60% of any loss of gross income and loss of earning capacity is reimbursed 297. 3. Replacement Services; 100% for cost of having household services performed by others which the injured person would have normally performed 298. 4. Death; $5,000 IN ADDITION to the $10,000 in medical/disability benefits afforded by PIP 299. How does PIP apply to pedestrians (in and out of state)? - Correct answer PIP applies to Florida residents if struck by insured's motor vehicle while not occupying a self-propelled vehicle (a pedestrian). 300. In situations wherein PIP does not apply, named insured and relatives occupying or struck by others vehicles out-of-state; nonresident passengers out-of-state; and nonresidents as pedestrians in Florida - The No-Fault Law has no applicability and usual legal remedies and other insurance coverage's are to be relied upon. 301. When can Other-Than-Collision (Comprehensive Coverage) be used? - Correct answer when there is damage to your vehicle not caused by a collision (hail storm damages hood, animal runs into car, windshield replacement) 302. What are the penalties for not complying with the No-Fault Law? - Correct answer 1. Owner is denied immunities from legal liabilities that are granted to those who comply 303. 2. Owner is personally liable for payment of PIP benefits to those entitled 304. 3. Owner's driver's license and vehicle registration are subject to suspension 305. What is the PIP Death Benefit amount? - Correct answer Effective 1/1/13, the death benefit will be $5,000 IN ADDITION to the $10,000 in medical and disability benefits afforded by PIP. 306. Example: Joe is seriously injured in an accident and incurs $50,000 in medical bills. He passes away a few days later. PIP would pay its maximum amount of $10,000 and, in addition, pay an extra $5,000 for death benefit. 307. Who administers the Financial Responsibility Law? - Correct answer The Department of Highway Safety and Motor Vehicles 308. What are the characteristics of a Homeowner's policy? - Correct answer -protects against economic loss to residence and household property and legal liabilities 309. -owner/occupants of 1-4 family dwellings 310. -renters who maintain residential occupancy in any type of building 311. -other structures (not permanently attached) 32 [Date] 312. What are the benefits under the Workers Compensation Law? - Correct answer - Medical Expenses: needed medical treatment with no dollar limit 313. -Disability Benefits: compensation for wage loss 314. -Death Benefits: if death results within one year of accident or, if it follow continuous disability, within five years after the accident 315. What are the requirements for continuing education for a 6-20 license? - Correct answer a licensed General Lines Claims Adjuster is required to complete 24 hours of education every 2 years. 316. Who might have an insurable interest in a property? - Correct answer anyone who would suffer an economic loss from an adverse happening to the property 317. What do the Declarations of a policy outline? - Correct answer The declarations 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 318. Which parties are associated with a bond? - Correct answer -Principal: one who undertakes to perform, fulfill a contract, or meet an obligation 319. -Oblige: one who is guaranteed that the principal will perform 320. -Surety (Bonding Company): guarantees performance 321. -Inseminator: may act as additional party at times; agrees to reimburse the surety for any loss it may suffer from having bonded the principal 322. What are the features of Major Medical Insurance? - Correct answer Major Medical Insurance is intended to afford protection against catastrophic losses. 323. Some forms are designated to supplement basic hospital/surgical policies; others intend to provide both basic and catastrophic coverage 324. These policies are characterized by a deductible, high maximum limit, and percentage participation or coinsurance. It may contain internal limits for hospital daily room charge and surgical services. 325. What associations make up Citizens Property and Insurance? - Correct answer Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and 326. Florida Windstorm Joint Underwriting Association (FWUA) 327. What are the characteristics of a Personal Automobile Policy Declaration page? - Correct answer Liability (bodily injury), property damage, uninsured motorist, medical payments, PIP, collision deductible, comprehensive deductible, towing coverage, and rental coverage