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FLORIDA CERTIFIED ADJUSTER PRACTICE EXAM QUESTIONS AND ANSWERS UPDATED
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FLORIDA CERTIFIED ADJUSTER PRACTICE EXAMQUESTIONS AND ANSWERS UPDATED 2024 - 2025
Jane,has,$150,000,homeowners,policy,with,a,3%,percentage,deductible.,One,night,,In,oven,fire,destroys,
her,kitchen,,causing,$50,000,in,damage.,How,much,of,the,damage,falls,under,Janes,responsibility?,,ANS,-
,,$4,500
Xavier,owns,a,small,insurance,company.,Recently,the,company,want,to,bid,to,ensure,a,new,housing,deve
lopment,in,Omaha,,Nebraska.,His,company,can,handle,any,claims,that,arise,,but,if,a,series,of,tornadoes,
were,to,tear,through,the,area,and,destroy,the,entire,development,,Xavier's,company,would,suffer,financ
ially.,Which,type,of,insure,could,help,Xavier's,company,protect,itself,the,most,from,this,potential,loss?,,A
NS,-,,A,re-insurer
Which,of,the,following,situations,does,NOT,involve,an,instance,of,"pure,risk?",,ANS,-
,,Loss,of,money,invested,in,the,stock,market
Which,of,the,following,is,an,insurable,risk?,,ANS,-,,A,football,stadium
A,lightning,strike,causes,one,of,those,storage,buildings,on,John's,farm,to,burn,to,the,ground,,added,by,th
e,fuel,tanks,he,kept,in,the,building.,John,knows,he,wasn't,supposed,to,store,any,fuel,in,the,building,,so,h
e,kept,that,piece,of,information,to,himself,when,he,files,a,claim.,John's,ensure,made,and,I,his,claim,base
d,on,his:,,ANS,-,,Concealment
Chain,shed,burned,to,the,ground,during,a,tornado,,when,the,Highwinds,break,a,wall,of,the,shed,,knockin
g,over,a,lantern,inside.,What,is,the,proximate,cause,of,the,loss?,,ANS,-,,Wind
Kevin,plays,in,a,brass,band,using,two,rare,antique,Alexander,tubas.,Since,they,are,no,longer,produced,,th
e,value,of,the,tubas,is,difficult,to,determine.,Which,type,of,policy,would,best,indemnify,Kevin,in,this,even
t,that,his,two,boys,were,damaged,,lost,,or,stolen?,,ANS,-,,Agreed,value,policy
Which,settlement,option,is,most,often,use,when,the,claimant,misses,work,because,of,a,bodily,injury,,but
,a,settlement,has,not,been,reached?,,ANS,-,,Advance,payment,settlement
,Adjuster,Andy,is,trying,to,determine,a,final,settlement,amount,for,Stacy's,claim.,Stacy's,house,was,destr
oyed,in,a,house,fire,and,it,will,cost,$185,000,to,rebuild,it.,Stacy's,homeowner,policy,has,a,limit,of,$178,0
00,and,$1800,deductible.,Typically,,how,much,would,adjuster,Andy,calculate,Stacy's,final,settlement,am
ount,to,be,,ANS,-,,$178,000
Stephanie,is,in,the,process,of,addressing,George's,auto,claim.,Currently,she,is,interviewing,Shana,,who,w
itnessed,George's,accident,and,stopped,to,help.,In,what,stage,of,the,claim,process,is,Stephanie,currently,
working?,,ANS,-,,Investigation
If,a,claimant,has,a,history,of,similar,claims,,that,could,mean:,,ANS,-,,It,is,important,to,investigate,for,fraud
If,an,insurer,is,unwilling,to,pay,what,the,claimant,is,asking,,the,adjuster,must:,,ANS,-
,,Negotiate,a,settlement
An,insurance,adjuster,acts,as,a,fiduciary,agent,for,her,employer.,Which,of,the,following,statements,is,FA
LSE,about,the,adjuster's,role,as,a,fiduciary,agent?,,ANS,-
,,The,adjuster,may,not,give,the,claimant,materials,showing,how,he,came,up,with,the,settlement,amount
A,staff,adjuster,is,a:,,ANS,-,,Salaried,employee,working,for,only,one,insurer
Marlene,has,been,living,in,her,$120,000,home,for,31,years.,Because,she,has,paid,off,the,mortgage,,she,d
ecides,to,save,some,money,on,her,monthly,insurance,premiums,by,reducing,her,homeowners,coverage,t
o,$40,000.,After,a,severe,hail,storm,totals,her,roof,,her,adjuster,estimates,the,damage,at,$12,000.,Assu
ming,the,insure,imposes,the,standard,coinsurance,penalty,,and,ignoring,the,deductible,,how,much,will,
Marlene,receive,in,the,settlement,amount?,,ANS,-,,$5,000
Craig,has,an,HO-
3,policy,covering,his,primary,residence,with,a,Coverage,A,limit,of,$250,000,,Coverage,B,limit,of,$25,000,,
and,a,Coverage,C,limit,of,$150,000.,Craig,also,has,a,cabin,on,the,lake,,which,was,burglarized.,The,thieves,
stole,much,of,the,cabin's,contents,,for,a,total,loss,of,$18,500.,Ignoring,any,deductibles,,how,much,will,Cr
aig's,HO-3,policy,pay,for,this,claim?,,ANS,-,,$15,000
Stan,built,a,porch,for,his,home,three,years,ago,at,a,cost,of,$10,000.,The,value,of,the,porch,has,depreciat
ed,by,$6,000,,and,it,would,cost,$12,000,to,replace,it,today.,After,Stan's,porch,burnt,down,during,a,BBQ,t
oday,,how,much,would,a,Standard,Fire,Policy,indemnify,Stan,for,his,porch?,,ANS,-,,$6,000
, Which,of,the,following,statements,is,NOT,true,of,endorsements?,,ANS,-
,,And,endorsed,policy,will,always,provide,more,coverage,than,an,unendorsed,policy
In,a,dwelling,policy,,how,much,will,the,Fire,Department,Service,charge,coverage,pay?,,ANS,-
,,Up,to,$500,if,the,fire,department,charges,for,responding,to,a,covered,peril
Bill's,new,home,is,in,the,final,stages,of,construction,,and,he,has,purchased,an,HO-
2,policy,to,ensure,his,financial,interest,in,the,property.,This,morning,,Bill's,contractor,calls,to,tell,him,that
,an,electrical,fire,has,destroyed,his,new,kitchen,,and,all,of,the,crown,molding,that,was,supposed,to,be,ins
talled,today,has,been,stolen.,It,will,be,$15,000,to,rebuild,the,kitchen,and,another,$4,200,to,replace,the,tr
im.,How,will,Bill's,ensure,respond,when,he,files,a,claim?,,ANS,-
,,His,insurer,will,pay,$15,000,for,a,build,the,kitchen,and,nothing,for,the,stolen,trim
Which,of,the,following,statements,about,the,original,standard,fire,policy,is,FALSE?,,ANS,-
,,It,was,the,first,multi-line,policy,,combining,both,Physical,Damage,and,Liability,coverages
During,a,severe,wind,storm,,a,large,tree,in,Jeff's,yard,was,blown,down,in,two,large,bushes,were,ripped,fr
om,the,ground.,Jeff,has,an,HO-
3.,What,is,the,maximum,amount,that,Jeff,can,receive,for,the,replacement,of,the,tree,and,bushes,that,we
re,damaged,by,the,wind,storm?,,ANS,-,,$0
For,loss,settlement,purposes,,most,homeowners,policies:,,ANS,-
,,Pay,for,damages,to,personal,property,at,actual,cash,value,,and,damages,to,structures,at,replacement,co
st
Tim's,$2500,boat,trailer,was,stolen,from,his,driveway.,Ignoring,any,deductibles,,how,much,contingency,f
or,his,stolen,trailer,when,he,files,a,claim,against,his,homeowners,policy?,,ANS,-,,$1,500
Helen's,business,is,growing,rapidly,,so,she,decided,to,add,an,annex,onto,her,office,and,hire,another,work
er.,While,under,construction,,a,storm,blows,down,most,of,the,annex,structure,,forcing,Helen,to,restart,fr
om,scratch.,Her,commercial,policy,provides,insurance,coverage,equal,to,75%,of,the,property,value,,despi
te,the,fact,that,her,policy,requires,80%,coverage,to,be,fully,insured.,Which,coverage,extension,could,hel
p,Helen,rebuild,at,replacement,cost?,,ANS,-,,None,-
,Extensions,are,only,available,at,the,policyholder,maintains,the,minimum,level,of,insurance,of,80%,to,val
ue
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