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Florida Adjuster Licensing Exam __ Questions With Accurate Solutions
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Florida Adjuster Licensing Exam __Questions With Accurate Solutions
While driving, Ben was struck by another driver, Roxanne. Ben then filed a
claim with Roxanne's insurer. In
essence, what was Ben doing when he filed this claim?
Alerting Roxanne's insurer of his intent to take the case to court
Submitting a formal request to settle the damages with Roxanne's insurer
Ordering Roxanne's insurer to pay for his damages within 15 days
Admitting he was actually "at fault" Correct Ans - Submitting a formal
request to settle the damages with Roxanne's insurer
Mark incurred $8,000 damage to his car in an accident. He received $8,000
from his insurance company and
$4,000 from the other driver. By receiving a profit from the loss, Mark could
be in violation of:
the principle of financial status.
the principle of financial restoration.
the principle of profit and loss.
the principle of indemnity. Correct Ans - the principle of indemnity
What is a reserve, in insurance terms?
The amount of revenue that the insurer sets aside to pay employee salaries
A group of policyholders who pay into the same pool of premiums
A pool of collected premiums that the insurer sets aside to pay claims
A set of rules governing how the insurance industry should work Correct
Ans - A pool of collected premiums that the insurer sets aside to pay
claims
The purpose of the principle of indemnity is:
to prevent an insured from making a profit on a loss.
to transfer the risk of financial loss from one party to another.
to transfer the right to collect a debt from one party to another.
to prevent an insurer from making a profit on a loss. Correct Ans - to
prevent an insured from making a profit on a loss.
,Greg plays trombone in his school band during football games. During a rally
song in the stands one day,
Greg annoys one of the opposing team's fans, who grabs his $400 trombone
and hurls it down the
bleachers, completely destroying it. Greg's insurance pays him $400 to replace
the trombone, but then the
opposing team's coach also offers to replace the instrument, at whatever the
cost. So Greg orders a new
$3,200 trombone and has the opposing team's athletic department absorb the
cost. Which principle has
Greg violated?
The principle of consideration
The principle of legal purpose
The principal of the opposing team
The principle of indemnity Correct Ans - The principle of indemnity
Which of the following refers to being restored to the financial condition you
were in before a loss?
Indemnification
Restoration
Estoppel
Subrogation Correct Ans - Indemnification
Bobby just purchased an insurance policy for his home from XYZ Insurance.
Which of the following would be
a reason this policy may not be legally binding?
Bobby has an outstanding warrant for selling marijuana.
Bobby has been diagnosed with schizophrenia.
Bobby paid his first premium when he and his agent agreed on a policy, but he
is waiting for the policy documents to be prepared so he can sign them
Bobby is only 19 years old. Correct Ans - Bobby has been diagnosed
with schizophrenia.
Indemnification may include all of the following except:
reimbursement for hotel costs.
reimbursement for rental car costs.
,payment for pain and suffering.
payment for repairs to property. Correct Ans - payment for pain and
suffering.
Which of the following is NOT a requirement for a legally binding contract?
There must be a legal purpose.
There must be mutual consent.
Both parties must bring something of value.
It must be a notarized document. Correct Ans - It must be a notarized
document.
The fee paid by the insured in exchange for an insurance policy is called a:
premium.
legal purpose.
binder.
contract. Correct Ans - premium
Which of the following best defines the principle of indemnity?
Both parties to an insurance contract must contribute something of value.
After a loss, the insured should be restored to his approximate financial
condition before the loss.
In order to be legally binding, a contract must have agreement, consideration,
competent parties, and
legal purpose.
In exchange for a premium, the insurer grants peace of mind by reducing the
insured's insecurity about
the future. Correct Ans - After a loss, the insured should be restored to
his approximate financial condition before the loss.
Which of the following is found in the declarations page of an insurance
policy?
The perils insured against
A description of how to file a claim
The obligations of the insured after a loss
The name of the insured party Correct Ans - The name of the insured
party
, In which section of an insurance policy might you find the following
statement? "'We, us, and our' refers to
ABC Insurance company."
Definitions
Declarations
Conditions
Exclusions Correct Ans - Definitions
In which section of an insurance policy might you find the following
statement? "Damage to insured
property must be reported within 15 days of the damaging occurrence."
Exclusions
Definitions
Conditions
Declarations Page Correct Ans - Conditions
Which section of an insurance policy is designed to OMIT certain risks from
coverage?
Exclusions
Insuring Agreement
Coverage Forms
Definitions Correct Ans - Exclusions
Which of the following would you find in the Conditions section of an
insurance policy?
The meaning of certain important words in the contract
Causes of loss that are not covered
Policy limits
The insured's duty after a loss Correct Ans - The insured's duty after a
loss
All of the following are typical exclusions in an insurance policy, EXCEPT:
nuclear hazards.
explosion.
earthquakes.
flooding. Correct Ans - explosion.
All of the following pieces of information can be found in the Conditions
section of an insurance policy,
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