Florida Adjuster EXAM Latest 2025 Actual EXAM 200 Questions AND Correct Answers
FLORIDA ADJUSTER EXAM LATEST 2023 ACTUAL EXAM 200 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |AGRADE Which of the following is TRUE? – ANSWER- If an appointment is terminated, an adjuster has 48 months to secure another appointment Bad Faith & Adjusting Practices – Under the Florida Unfair Trade Practices Act & the Unfair Methods of Competition and Unfair or Deceptive Acts, all of the following are prohibited, EXCEPT: – ANSWER- Adjuster keeps accurate records on a claim Florida’s Administrative Code contains a Code of Ethics for Adjuster – which of the following is FALSE? – ANSWER- An Adjuster owes fair and prompt treatment to their own company’s policyholders only Which of the following is a duty owed to an invitee? – ANSWER- land owner must make reasonable efforts to maintain property in safe condition What is the difference between liability and coverage? – ANSWER- liability is a legal doctrine and coverage is a contractual obligation Which of the following is NOT one of the fiduciary responsibilities of an adjuster? – ANSWER- Withhold pertinent information from the company to please a client Which of the following is NOT one of the duties of the Florida Department of Financial Services? – ANSWER- The Department writes policies for the non-standard insurance companies. Continuing education requirements to maintain a Customer representative license are: – ANSWER- 24 hours every two years.
When an insurance licensee ends his appointment with an authorized company in Florida, he has how long to secure another appointment? – ANSWER- 48 months When an insurance licensee moves, he has how long to notify the Florida Dept. of Financial Services of his change of address? – ANSWER- 30 Days Activities that may result in license suspension or revocation include: – ANSWER- Using discriminatory practices Making false entries on an insurance application Defaming another agent or company Activities that may result in license suspension or revocation include: – ANSWER- Lacking reasonable knowledge & technical competence Misappropriation of funds Failure to notify the Dept. of Insurance in writing within 30 days after pleading guilty to a felony All of the following are true concerning Joint Underwriting Associations EXCEPT : – ANSWER- It is not possible to purchase a Homeowners or Dwelling Policy from Citizens John wrote a policy through the Florida Automobile Joint Underwriting Association, and the company issued the policy. What is the company issuing the policy called ? – ANSWER- A servicing carrier The business auto policy has flexibility to meet the needs of various commercial enterprises. It is used to cover vehicles NOT covered by the Personal Auto Policy. Which the following vehicle would NOT be insured with a business auto policy: – ANSWER- Autos used for business related purposes on a regular basis.Autos weighing 12,000 lbs. gross vehicle weight.Autos titled in the name of a corporation or other business interest. In the business auto policy, symbol 1 is a broad coverage often used for liability to denote: – ANSWER- “any auto”
of $215,000. How much will Jack’s Uninsured Motorist pay for this claim? – ANSWER- $150,000 An insured buys an ISO Mechanical Breakdown Coverage Policy on his used car. For what length of time and mileage will he have coverage? – ANSWER- 12 Months / 12,000 Miles If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP with no deductible, & Med Pay of $2,000 … what is the maximum potential payment from Jack’s Personal Auto Policy to a guest passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in medical expenses? – ANSWER- $22,000 (PIP $10,000; Med Pay $2,000; BI $10,000) UM (Uninsured Motorist) coverage under the PAP (Personal Auto Policy) pays for: – ANSWER- bodily injury to the insured caused by hit and run driver Lender’s interests in REAL property are protected with a Mortgage clause, how are lender’s interests protected in personal property – such as automobiles? – ANSWER- Loss payable clause While driving on the Pennsylvania Turnpike, William’s auto has a collision with a deer that jumps in front of his car. In order for coverage to be afforded, William’s Personal Auto Policy must have: – ANSWER- Other than Collision coverage An insured took his TV to a shop for repairs, on the way, he stopped suddenly and the TV fell off the seat, breaking the TV. How will his PAP (Personal Auto Policy) respond? – ANSWER- The PAP will not respond. An insured has “Stacked” Uninsured Motorist with 25/50 limits on each of 2 vehicles that he owns. How much Uninsured Motorist coverage is
available to the insured in the event of an accident with a hit & run driver? – ANSWER- 50/100 The “trigger” of the financial responsibility law is: – ANSWER- An accident involving bodily injury or property damage rendering the vehicle inoperable or a serious violation such as DUI. Which of the following is the lowest single limit automobile liability that meets the requirements of the Florida Financial Responsibility Law? – ANSWER- $30,000 An insured had an accident in another state that required liability limits of 25/50/25. Our insured had 10/20/10 limits. What happens if the liability he incurs exceeds 10/20/10? – ANSWER- Our insured’s policy will respond to the higher limit of the other state Joe has 10/20/10 liability limits, and he borrows Sue’s car. Sue has 15/30/15 limits of liability. Joe injures a pedestrian while driving Sue’s car and the pedestrian’s medical bills due from liability total $22,000 (PIP & Med Pay are paid out in full). How much is paid from Liability? – ANSWER- Sue’s policy pays $15,000 & Joe’s policy pays $7,000 Your insured has purchased the minimum split limit policy that meets Financial Responsibility Law in Florida. He causes the following bodily injuries to passengers: Carl $12,000 Jeanne $10,000 Charlie $10,000 How much will his policy pay? – ANSWER- $20,000 for the total BI portion of accident An insured has 25/50/25 limits and injured another person. The injured person won a tort claim for $30,000 against the insured and the insured’s attorney charged $7,500 to defend the insured. How much is paid by the
following best describes this method of settlement? – ANSWER- No release or walk-away The Continuing Education requirement to maintain an Adjuster license in Florida is: – ANSWER- Twenty four hours every two years. An adjuster received written notice from the Department of Financial Services regarding a claim. What length of time does he have to respond to the inquiry? – ANSWER- 21 calendar days Comparative negligence is determined through – ANSWER- Investigation & AnalysisAgreement between parties or by mediation or arbitrationJudge and/or jury During what period of time must an adjuster reply to communication from a policyholder on a claim? – ANSWER- 14 days Which of the following is NOT a goal in the adjusting process? – ANSWER- always pay the maximum limit of the policy An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: – ANSWER- A Full Release settlement Adjuster Jane moved from one city in Florida to another. What length of time does she have to notify the Insurance Department of the address change? – ANSWER- 30 Days Which of the following could NOT be considered an “owner” of a motor vehicle? – ANSWER- A long term lease of 3 months
Which of the following is true concerning the extended PIP endorsement? – ANSWER- Medical expense reimbursement is raised from 80% to 100% When an Additional PIP Endorsement is added to the Personal Auto Policy, we know that the policy already has – ANSWER- Extended PIP Endorsement Nonresidents must comply with the Florida No Fault law: – ANSWER- If their auto is in Florida over 90 of the last 365 days When is the named insured NOT entitled to PIP benefits? – ANSWER- Injured outside of Florida while a pedestrian struck by a defined motor vehicle Which of the following statements is false concerning No-Fault Auto Insurance? – ANSWER- Negligence must be established. An insured has Basic PIP with no deductible, in an accident he incurs medical bills of $8,000, $1,000 in lost wages, and $500 in replacement services – how much will PIP portion of policy pay? – ANSWER- $7,500 Jane is a Florida resident with an auto. She has PIP coverage of $10,000 with no deductible. If she is in an auto accident and has medical bills of $10,000, how much will her PIP pay? – ANSWER- $8,000 If Jane also has work loss of $1000 due to the auto accident, how much will her PIP pay for work loss? – ANSWER- $600 What if Jane’s accident happened during the work day while she was driving a GEICO owned auto and Jane was out adjusting auto claims. How much would Jane’s PIP pay for her medical injuries? – ANSWER- zero
What type of health insurance plan usually offers the broadest coverage at the lowest cost with the most freedom of choice? – ANSWER- Group Insurance PPO Insurance is considered a two-party contract, Surety Bonds are considered – ANSWER- a three-party contract A builder contracted for framing on a new section of a hospital. There is a surety bond purchased to guarantee completion of the project. Which of the following best describes the hospital position in the surety bond? – ANSWER- The hospital is the obligee The Surety attempts to avoid default by investigating the principal with regard to: – ANSWER- CharacterCapabilityCollateral The Surety bond that guarantees that companies will not misrepresent securities is – ANSWER- Blue Sky Bond A Surety Bond that guarantees the performance of a person appointed by a court, or named in a will or trust to take possession of property, collect assets, make investments, pay debts, sell assets, carry on a business, distribute property to heirs, or any related tasks is what type ? – ANSWER- Fiduciary Bond If an insured’s administrative assistant fraudulently forged the insured’s name on a check, and cashed it, which of the following would cover this event? – ANSWER- Employee theft Under one form of crime insurance, losses must occur during the policy period and be discovered within 1 year of policy expiration. This is: – ANSWER- The Loss Sustained Form Which of the following type of employee theft best fits a business with a large turnover in its personnel? – ANSWER- The Blanket coverage
A loss discovered during the policy period that occurred before the inception of the current policy may be covered by? – ANSWER- Discovery Form Which of the following could be covered by crime insurance? – ANSWER- A burglar breaks into a locked safe and steals a ruby necklace. An employee is robbed while taking the daily cash receipts to the bank. A computer hacker breaks into a business computer and transfers a deposit to an account in the Cayman Islands. Two of Any Corp. employees were working and one was accidentally pushed into a machine that cut his arm. How would Any Corp’s general liability respond? – ANSWER- Neither CGL nor the med pay section would respond, and coverage for this accident is found under Workers Compensation Sam was injured on the job and missed 22 days of work. Which of the following best describes the Workers Compensation payment to Sam? – ANSWER- Sam will be paid for all 22 days, since the 7 day waiting period is not imposed if the disability lasts more than 21 days All the following are components of the Workers Compensation EXCEPT: – ANSWER- Unlimited death benefits What is the limit on medical benefits under Workers Compensation? – ANSWER- All medical costs with no limit The following are employees who must have workers compensation EXCEPT: – ANSWER- Pro athletes A claimant ate some undercooked fish and got violently ill at the restaurant. Which of the following would pay for this occurrence? – ANSWER- A premises and operations form
The coverage for damage to an aircraft under the care, custody, or control of the insured while the plane is in for storage or service is: – ANSWER- Hangarkeepers liability Under the commercial property form, what length of time must expire before a building is considered “vacant”, thus suspending some coverages, while reducing payment on others? – ANSWER- 60 Days A florist wanted coverage on business contents that vary in amount over the course of a year. Which form best covers this situation? – ANSWER- The value reporting endorsement Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called? – ANSWER- A package policy A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard to save the ship – this action is called: – ANSWER- Jettison A contractor was concerned some of his tools, such as a welder, could be stolen from the job site. What inland marine form is best suited for this exposure? – ANSWER- The contractors equipment floater In Commercial Policies – Vacancy of more than 60 days suspends coverage on all the following EXCEPT : – ANSWER- Windstorm Condominiums may be covered by both an Association (Commercial Condo) Policy and a Unit Owners’ (Homeowners) Policy, which of the following is true? – ANSWER- The Association Policy is primary and the Unit Owners’ Policy is excess There are advantages of an agent recommending a commercial package policy over several monoline policies. Which of the following is an advantage? – ANSWER- The package policy is easier to rate and sell –
more efficient .In the package policy, coverage gaps are less likely to occur. Premium savings may result from a package policy. A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania over the course of the next 12 months. What inland marine coverage best fits this exposure? – ANSWER- An annual transit policy Commercial leases have special coverages in the Leasehold Coverage Form due to the fact that – ANSWER- they are long-term often with investment in the real estate. A home oxygen service must continue to supply its customers even if the facility is destroyed by a fire. Consequently, the service may make purchases from one of its competitors to keep their own customers supplied with medically necessary equipment in order to have the opportunity to stay in business. Where is this type of insurance coverage found ? – ANSWER- Extra Expense Coverage form A community applied to be part of the National Flood Insurance Program. Until they are approved, what is the status of the community? – ANSWER- They are in the emergency program Which of the following would be excluded (NOT covered) under a personal articles floater on an “all risks” basis? – ANSWER- Insects destroy a valuable postage stamp worth $500 Which of the following is false concerning flood insurance? – ANSWER- To be insured for flood, a new building only must have the walls up. All of the following are EXCLUSIONS under a personal articles floater (Personal Inland Marine Policy) EXCEPT: – ANSWER- Theft An Umbrella Policy may be broader than the underlying policies and respond as primary coverage. When the Umbrella is PRIMARY, there is
Which of the following is NOT one of the rating factors used in determining a H/O (Homeowners) premium? – ANSWER- Gender of owner Jane has a dwelling policy with the house insured for $40,000. If her detached shed, which is valued at $4500, is destroyed by a covered peril, what can she expect? – ANSWER- She can expect $4,000 to be paid, because unattached structures are covered up to 10% of the dwelling amount. Homeowners Policies usually insure property for which of the following? – ANSWER- Fire, lightning, theft If the policy holder has a HO-3 policy with no endorsements and there is a fire – jewelry worth $20,000 in the house might be covered: – ANSWER- Could be covered for $20,000 if the Coverage C limit is high enough Liability limits may be expressed as a: – ANSWER- Aggregate Limit Split Limit Single Limit An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 = $18,000. How much liability insurance will his policy pay for these claims? – ANSWER- $ 20,000 Loss payee – ANSWER- If a lender has an insurable interest in an auto, because of the money loaned to finance the auto, the lender would appear on the policy as the: To turn partially damaged property over to the insurance company and ask them to pay for a total loss is called – ANSWER- Abandonment
Firemen caused water damage to a property by spraying water to put out a fire. If the property insurance policy listed “fire” as the only named peril: – ANSWER- The water damage is covered due to the concept of proximate cause. XYZ Insurance Corp. filed its corporate charter in Tallahassee and has its home office in Tampa: – ANSWER- In Florida, XYZ is a domestic insurer. An insured has a home with a replacement cost / value of $100,000, on which he carries an insurance policy for $80,000 with an 80% Coinsurance clause. The insured has a $20,000 partial loss, the insurance company will pay how much for this partial loss of $20,000? (Remember $80,000 is 80% of $100,000) – ANSWER- 20,000 “Actual Cash Value” ACV means: – ANSWER- Current cost to replace minus depreciation Which of the following is TRUE concerning Subrogation? – ANSWER- Allows the insurer to sue a negligent third party to recover a loss paid. An insurer may sever the interests of 2 insureds so that the insurer can protect an innocent party – this is the Doctrine of: – ANSWER- Severability All of the following describe insurable interest EXCEPT: – ANSWER- Show a similarity between insurance and wagering. An Insurance Policy is a contract with all of the following characteristics, EXCEPT – ANSWER- Indemnity is not part of an insurance contract An insurance contract may contain a “gray area” or an ambiguity, that is generally resolved in favor of the insured because insurance policies are contracts of: – ANSWER- Adhesion
- Reserve should always be enough to cover losses Principle of Indemnity – ANSWER- Restoration to previous financial condition; no more, no less. Indemnification – ANSWER- Being restored to the financial condition you were in before a loss Insurance Policy (ACCL) – ANSWER- 1. Contract to provide financial protection for a fee 2. Legally binding because it meets the 4 requirements of a legal contract Four Qualification (Insurance Policy-Legal Contract) – ANSWER- 1. Agreement: mutual consent (signature or handshake) 2. Consideration: all parties bring something of value (money in exchange for a car) 3. Competent parties: 18 years old, sober, and sane 4. Legal purpose: no contract for money laundering (has to be legal) Insured – ANSWER- Individual or organization that pays premiums in exchange for protection Insurer – ANSWER- Company, group, or government agency offering financial protection Risk (meaning) – ANSWER- When an insurer issues an insurance policy, the actual item, person, or organization that is being insured. Personal (Six Special Characteristics of Insurance Contracts) – ANSWER- The insured person is protected from losses; not the covered property
D.I.C.E. – ANSWER- 1. Declarations Page (aka “Dec Page”)/Definitions Section 2. Insuring Agreement 3. Conditions 4. Exclusions/Endorsements Declarations Page (“Dec Page”) – ANSWER- Makes contract specific to the policyholder (names of both parties; location & description of insured item; value of insured item; dates of the policy (beginning and end); amount and limit of coverage; deductible; and premium. Definitions Section – ANSWER- 1. Not technically essential, but common in policies 2. defines terms used to write policy including: – “collision,” “decay,” “like kind and quality.” 3. includes important language for adjusters to know Insuring Agreement Section – ANSWER- Insurer agrees: – what is covered – which causes of loss are covered – any service provided – any exclusions to coverage – the maximum limit of policy coverage in dollars Conditions Section – ANSWER- The Insurer specifies any limits or qualifications the policyholder must meet (example) Requiring a security guard for a jewelry store How to file a proof of loss How to protect the property after a loss Exclusions Section – ANSWER- List what the policy DOES NOT cover: Common Exclusions (in nearly all property policies) – earthquakes – flooding