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
"premiums are waived"
Frank own...
Florida Claims Adjuster Exam – 3| 210 questions|
with complete solution
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
"premiums are waived"
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.
Insurance applies *separately* to each insured as if other insureds did not exist. This is defined
as:
A. Severability
B. Conditional
C. Warranty
D. None of the above Correct Answer: A. Severability
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
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
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
The time frame is typically 60 days.
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
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.
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
*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
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
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
"may be conditioned"
Which of the following is not one of the "Thresholds" in the "No-Fault" law?
A. Death of the Insured
B. Temporary Injury of the Insured
C. A permanent loss of a bodily function
D. Permanent scarring on the face of the insured Correct Answer: B. Temporary Injury of the
Insured
Also included: permanent injury other than scarring and disfigurement
Under Mechanical Breakdown Coverage, new cars are eligible for service up to:
A. 36 Months/36,000 Miles
B. 24 Months/36,000 Miles
C. 12,000 Months/12,000 Miles
D. 12 Months/36,000 Miles Correct Answer: A. 36 Months/36,000 Miles
Used vehicles: 12 Months/12,000 Miles
If financial responsibility doesn't exist at the time of an accident, which of the following things
must happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future responsibility for future accidents
C. Both A & B
D. None of the Above Correct Answer: C. Both A & B
As to required proof for future accidents by purchase of auto liability insurance, the insurer must
make a filing (Form SR-22) certifying that coverage is in effect, and this certification must
remain on file for __________ years:
A. 1
B. 3
, C. 4
D. 2 Correct Answer: B. 3
The Business *Automobile* Policy includes all of the following coverage forms except:
A. The Garage Coverage Form
B. The Trailer Interchange Coverage Form
C. The Truckers Coverage Form
D. The Business Auto Coverage Form Correct Answer: B. The Trailer Interchange Coverage
Form
Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property Correct Answer: A. 10,000
Used to insure businesses engaged in selling, servicing, repairing, *parking or storing
automobiles:*
A. Servicing Coverage Form
B. Garage Coverage Form
C. Truckers Coverage Form
D. None of the Above Correct Answer: B. Garage Coverage Form
The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10.
A. Split
B. Single
C. Straight
D. None of the Above Correct Answer: A. Split
10/20/10 =
10,000 per person injured
20,000 all injuries combined
10,000 property damage
Example of straight liability limit = $30,000
Jeremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he
expect his PIP coverage to pay toward his medical bills that total $3,000?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 Correct Answer: A. $1,600
3000 (bills) - 1000 (deductible) =
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