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FL Adjuster practice test 2024/2025 already graded A+
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FL Adjuster practice test 2024/2025 already graded A+
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What requirements must Wholesalers and Distributors meet in order to be eligible for a BOP? -ANS25% or less of floor space is available to the general public, and less than 25% of gross
income may come from retail sales.
The first step in the claim process is to - ANSDetermining time and cost of repairs
In Florida, an insurer has ___ days to pay or deny a claim. - ANS90
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit him on the
head. Jerome's injuries resulted in an extended hospital stay, so he sued ABC Imports and was
awarded $400,000. Assuming ABC Imports carries a CGL with a General Aggregate of
$750,000 and a per occurrence limit of $250,000, what is the maximum that ABC's insurer will
pay for Jerome's injuries? - ANS$250,000
Which of the following best describes inland marine insurance? - ANSInsurance designed to
protect property being transported on land and property related to transportation
A plane was damaged while being towed by another vehicle. By policy definition, this damage is
considered to have occurred while the aircraft was: - ANSnot in motion
Citizens Insurance - ANSis available to certain people who are not residents of Florida.
This provision in Ocean Marine insurance obligates insurers of various interests to share the
cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its
cargo. - ANSGeneral Average
Walter works for a shipping company, delivering packages and picking up orders. He lives very
close to work and the grocery store is only a few blocks away, so he can live conveniently
without owning a car. However, he would like to have some Personal Injury Protection, just in
case he ever gets injured in an accident. Which BAP endorsement could his employer use to
give him this coverage? - ANSNamed Individuals Broadened PIP
Which of the following is NOT a rating factor for a personal auto liability policy? - ANSThe
condition of the vehicle
Phil heads over to visit his friend Josh, who is sick with the flu. While at the house, Josh fails to
cover his mouth when he coughs and Phil ends up contacting the flu. Phil files a claim with
Josh's insurer for medical expenses and lost income while Phil is out sick from work. The
insurer denies the claim because - ANSdisease transmitted from the insured to a third party is
excluded.
Jerrod owns two planes and has liability insurance with the following limits:
,Bodily Injury Excluding Passengers: $250,000/person; $500,000/occurrence
Passenger Bodily Injury: $250,000/person; $750,000/occurrence
Property Damage: $500,000/occurrence.
When Jerrod crashes into a car while landing his plane, he injures the two people in the car and
completely wrecks the car. The first person in the car suffers $200,000 in injuries, and the
second person suffers $300,000 in injuries. Replacing the car costs $45,000. Without taking
deductibles into account, how much will Jerrod have to pay out of his own pocket? - ANS50,000
Which of the following endorsements is mandatory for all Florida residential property policies? -
ANSCatastrophic ground collapse
Maria was in the hospital for five days, recovering from a stroke. The bill she received for her
hospital stay broke down the charges for room, lab fees, meals, and nursing care. However, her
insurer paid a flat daily rate and she was left responsible for paying the remaining charges.
What type of insurance does Maria have? - ANSHospital Indemnity insurance
ABC Roofing has two CGL policies that cover the same losses. Both policies are occurrence
forms, thus pay out on a pro rata basis. The first policy is through KLM Insurance and has a limit
of $300,000. The second is through XYZ Mutual, with a limit of $600,000. One day, ABC
Roofing suffers an occurrence resulting in a $150,000 covered loss. How will this loss be
indemnified? - ANSKLM Insurance will pay $50,000; XYZ Mutual will pay $100,000
Florida Insurance Code states the qualifications required to become a licensed insurance
adjuster in the state of Florida. Which of the following is NOT one of the requirements for
applicants? - ANSSpend 20 hours in the field working with a licensed insurance adjuster
Which of the following automobile components is NOT covered by a Mechanical Breakdown
Insurance policy? - ANSTires
Dr. Smith has a claims-made malpractice insurance policy with a policy period from June 30,
2006 to June 30, 2007. Which claim would trigger this policy? - ANSA claims-made policy
covers claims initiated during the policy period. In this situation, that would include claims filed
between June 30, 2006 and 30, 2007.
Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire
on May 31. Which of the following statements is TRUE? - ANSLemon Insurance must notify
Hugh at least 45 days before the policy expires.
Which of these statements is true? - ANSFlood insurance is always backed by the National
Flood Insurance Program.
Which of the following is TRUE about workers' compensation insurance? - ANSIt benefits both
the employee and the employer.
, Martin works as an accountant for Smith Manufacturing. Smith Manufacturing has tasked Martin
with finding an insurance provider to meet the company's needs, so Martin interviews several
insurers. At the end of one interview with PRO Insurance, the insurance representative hands
Martin an envelope containing $5,000 in cash, on the condition that Smith Manufacturing selects
PRO Insurance as its insurance provider. What would we call the $5,000 in cash? - ANSA
kickback
In a declaratory judgment action: - ANSthe court decides the legal rights of both parties.
When discussing farm insurance, which of the following most accurately describes "scheduled
property"? - ANSItemized property
According to the "Definitions" section of a Personal Auto Policy, which of the following is NOT
"occupying" her vehicle? - ANSRachel leaves her cat in her car, with the windows cracked, while
she goes into the drugstore to fill a prescription
Which characteristic would prohibit a convenience store/gas station from purchasing a BOP? -
ANSThe operation of a car wash
A ___________ is a law set forth by a governing body such as a state or city. - ANSstatutory law
Ron's truck experiences a mechanical breakdown and he has it towed to an auto repair facility.
Upon further examination of Ron's claim, his Mechanical Breakdown Insurance provider denies
coverage. Which of the following would be a valid reason for this denial? - ANSRon had been
hauling a large boat, which overloaded the vehicle and caused the breakdown.
Greta's Ski Supply is covered under the Building and Personal Property Coverage Form with
limits of $50,000 for business personal property and $100,000 for the building. The policy also
has a $500 deductible. When a tornado tears through the vicinity, the store suffered $10,000 in
damage to the building and $20,000 in losses to the contents. In addition, Greta has to fork out
an extra $1,000 for debris removal. How much will Greta receive from her insurer? - ANS30,500
Which of the following is NOT excluded from coverage under a Mechanical Breakdown
Insurance policy? - ANSBreakdown due to the cracking of an engine block
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car into
Sam's. Sam's own insurance company, ABC Insurance, immediately pays him $5,000 for his
injuries. Sam then ponders whether to file a $6,000 lawsuit against Nicole. Why can't Sam sue
Nicole for the full amount of his injuries? - ANSBy accepting payment from ABC Insurance, Sam
subrogated a portion of his rights against Nicole to ABC Insurance.
A fidelity bond covers: - ANSan insured business for loss resulting from any dishonest acts
committed by its bonded employees.
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