NEW FLORIDA ADJUSTER LICENSING 455 QUESTIONS WITH ANSWERS 2024

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NEW FLORIDA ADJUSTER LICENSING 455 QUESTIONS WITH ANSWERS 2024 1. While driving, Ben was struck by another driver, Rox- anne. 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" 2. Mark incurred $8,000 damage to his car in an acci- Submitting a for- mal request to set- tle the damages with Roxanne's in- surer the principle of in- dent. He received $8,000 from his insurance company demnity 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. 3. 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 4. 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 A pool of collected premiums that the insurer sets aside to pay claims to prevent an in- sured from making a profit on a loss. to another. to prevent an insurer from making a profit on a loss. 5. Greg plays trombone in his school band during foot- ball 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 in- strument, at whatever the cost. So Greg orders a new $3,200 trombone and has the opposing team's athlet- ic 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 6. Which of the following refers to being restored to the financial condition you were in before a loss? Indemnification Restoration Estoppel Subrogation 7. 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 mari- juana. 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. The principle of in- demnity Indemnification Bobby has been diagnosed with schizophrenia. 8. Indemnification may include all of the following ex- cept: reimbursement for hotel costs. reimbursement for rental car costs. payment for pain and suffering. payment for repairs to property. 9. 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. 10. The fee paid by the insured in exchange for an insur- ance policy is called a: premium. legal purpose. binder. contract. 11. 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. 12. 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 payment for pain and suffering. It must be a nota- rized document. premium After a loss, the insured should be restored to his ap- proximate finan- cial condition be- fore the loss. The name of the insured party The obligations of the insured after a loss The name of the insured party 13. In which section of an insurance policy might you find Definitions the following statement? "'We, us, and our' refers to ABC Insurance company." Definitions Declarations Conditions Exclusions 14. In which section of an insurance policy might you find Conditions the following statement? "Damage to insured property must be reported within 15 days of the dam- aging occurrence." Exclusions Definitions Conditions Declarations Page 15. Which section of an insurance policy is designed to OMIT certain risks from coverage? Exclusions Insuring Agreement Coverage Forms Definitions 16. Which of the following would you find in the Condi- tions section of an insurance policy? The meaning of certain important words in the con- tract Causes of loss that are not covered Policy limits The insured's duty after a loss 17. All of the following are typical exclusions in an insur- ance policy, EXCEPT: nuclear hazards. explosion. Exclusions The insured's duty after a loss explosion. earthquakes. flooding. 18. All of the following pieces of information can be found causes of loss that in the Conditions section of an insurance policy, EXCEPT: causes of loss that are not covered. what the insured must do in the event of a lawsuit. anything the insured must do for coverage to remain in effect. the insured's duties after a loss. 19. Which of the following statements is true about an insurance policy? The insured is obligated to the terms of the contract for the entire policy period. It relies on the utmost good faith of both the insured and the insurer. It is transferable if the property is sold to another party. The insured sets the terms of the policy. 20. In an insurance policy, the summary of what the in- surer will do in the event of a covered loss is called: the insuring agreement. the dec page. the conditions section. the definitions section. 21. In a , only one party is legally obligated to perform. unilateral contract conditional contract contract of adhesion contract of utmost good faith unilateral contract are not covered. It relies on the ut- most good faith of both the insured and the insurer. the insuring agreement. unilateral contract 22. Insurance policies are unilateral contracts. This means: only one party has an obligation to perform. ambiguities are settled in favor of the insured. they depend on an unknown future event. they rely on the honesty of both parties. 23. Which of the following is NOT a characteristic of in- surance contracts? Universal Conditional Unilateral Aleatory 24. If an adjuster needs to find clarification about what actually constitutes a collision, in which section of an insurance policy would she find that information? Declarations Exclusions Conditions Definitions 25. Which of the following best describes a Fraternal Benefit Society? A fraternal benefit society is a for-profit provider of insurance. A fraternal benefit society uses investors' money to pay claims. A fraternal benefit society is a social organization based around common interests and beliefs. A fraternal benefit society pays dividends to its stock- holders. 26. Which of the following is NOT a characteristic of so- cial insurance programs? Social insurance programs are for-profit programs. Social insurance programs are designed to meet the needs of the general public as a whole. The benefits of a social insurance program may be only one party has an obligation to perform. Universal Definitions A fraternal ben- efit society is a social organiza- tion based around common interests and beliefs. Social insurance programs are for-profit pro- grams. prescribed by federal law. Social insurance programs involve mandatory partic- ipation. 27. When an insurer buys insurance to reduce its expo- sure to loss, this is called: mitigation. loss reduction. co-insurance. re-insurance. 28. Frank purchases an automobile policy from pub- licly-traded XYZ Insurance. He pays regular monthly premiums, and also purchases stock in XYZ and re- ceives dividends when the company turns a profit. From which type of company has Frank purchased insur- ance? Re-Insurer Reciprocal insurer Mutual insurer Stock insurer 29. Xavier owns a small insurance company. Recently the company won a bid to insure a new housing development in Omaha, NE. His company can handle any claims that arise, but if a series of tornados were to tear through the area and destroy the entire devel- opment, Xavier's company would suffer financially. Which type of insurer could help Xavier's company protect itself the most from this potential loss? A re-insurer A fraternal benefits society A stock insurer A reciprocal insurance group 30. Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly traded company, and re-insurance. Stock insurer A re-insurer mutual insurance company. [Show More]

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