The deductible - ANSWER-The dollar amount that the insured pays before the insurer is required to pay the remainder of the loss is known
... [Show More] as?
Replacement cost - ANSWER-Which loss settlement provides new for old?
the claims adjuster's role in the insurance industry includes - ANSWER-Give appropriate legal advice and write binding contracts
following are examples of a peril - ANSWER-Lighting, Explosion and Fire
The abandonment clause - ANSWER-The clause that prohibits the insured from dumping damaged property on the insurance company and demanding to be paid in full is?
Liberalization - ANSWER-When a policy change results in broadened coverage with no additional premium, the insured automatically receives the benefit under the principle of?
Risk - ANSWER-The chance of financial loss is known as?
Percentage - ANSWER-Hurricane insurance in coastal areas in Florida is written subject to which of the following deductibles?
Severability - ANSWER-Insurance may apply separately to each insured, as if the other insureds did not exist. This is known as the doctrine of?
The principle of proximate cause - ANSWER-When there is an unbroken connection between an occurrence and the damage that arises from the occurrence, and all the resulting damage happened on account of that occurrence, this is known as?
characteristics of a contract - ANSWER-Consideration must be given to at least one party
Primary - ANSWER-When two or more policies apply to the same loss, the one that pays first is called?
Mortgagee Clause - ANSWER-The clause that protects the lender in a real property policy is the?
Indemnity - ANSWER-The concept that one should not profit from the payment provided by an insurance policy is known as?
Property or first-party insurance - ANSWER-Payment the insurance company makes directly to the insured is?
Written - ANSWER-To be considered an insurance contract, a policy must be?
Subrogation - ANSWER-When the insured transfers his/her rights to collect for damages to the insurer, it is known as?
The insured - ANSWER-If an insurance policy is unclear or ambiguous, in whose favor does the policy respond?
Insurable interest - ANSWER-A partial owner of a building cannot receive full value for the building in the event of a loss because of?
Comparative negligence - ANSWER-Reduces the insured's damages by the degree of negligence
the following are part of an insurance policy - ANSWER-Exclusions, Declarations and Endorsementd
ACV - ANSWER-replacement cost minus depreciation
The insured's house is totally destroyed in a fire. The house is insured for $200,000. The adjuster who investigates the claims determines the ACV of the home is $185,000. - ANSWER-The Florida Valued Policy Law requires the insurer to pay $200,000
describe a franchise deductible - ANSWER-No payment is made until the loss equals or exceeds the amount of the deductible and then the loss is paid in full
All of the following are characteristics of an insurance contract EXCEPT? Personal, Private, Conditional, Adhesion? - ANSWER-Private
If a claimant is represented by an attorney, the adjuster should? - ANSWER-Only meet with the client when the attorney is present
Adjusters should advise claimants on? - ANSWER-claims information
An adjuster is required to notify a claimant when a claim is denied. The notification must be? - ANSWER-Written
The term ethics refers to? - ANSWER-service to others, personal respect and proper mode of conduct
When an adjuster deals with a claimant who is not a policyholder, this claim is known as an? - ANSWER-third party claim
The successful adjuster/negotiator should understand that communication includes all of the following EXCEPT?
Select one:
A. Verbal and non-verbal messages
B. Questioning
C. Listening
D. Decision-making - ANSWER-Decision-making
Which of the following is not a duty of the claims adjuster?
Select one:
A. Investigating
B. Evaluating
C. Negotiating
D. Counseling - ANSWER-Counseling
The adjuster's duty to the insurer is best described as?
Select one:
A. Friendly
B. Factual
C. Fun
D. Fiduciary - ANSWER-Fiduciary
Errors and Omissions claims are a result of?
Select one:
A. unethical behavior
B. lack of knowledge or information
C. Both unethical behavior and lack of knowledge or information are correct
D. Neither unethical behavior and lack of knowledge or information are correct - ANSWER-Both unethical behavior and lack of knowledge or information are correct
Unethical behavior affects?
Select one:
A. The claimant
B. The adjuster
C. All of the above
D. The entire company - ANSWER-All of the above
All of the following are components of negotiating EXCEPT?
Select one:
A. The issue should be negotiable
B. There must be an exchange of value for value
C. The parties should trust each other
D. The claimant must be satisfied - ANSWER-The claimant must be satisfied
The Civil Remedies Provision of the Insurance Code states that adjusters should not?
Select one:
A. Handle claims in a prompt manner
B. Accompany claims payments with statements explaining coverage
C. Settle claims in good faith
D. Try to influence settlements - ANSWER-Try to influence settlements
The insured, a resident of Florida, was in an accident in Georgia. The Florida car was insured with liability limits of 10/20/10. Georgia's minimum liability limits are 20/40/10. How will the Florida policy respond?
Select one:
A. 10/20/10
B. 20/40/10
C. No coverage
D. 20/40/20 - ANSWER-20/40/10
Under a PAP, when does the insurance company cease to defend the insured?
Select one:
A. The insurance company is not obligated to defend the insured
B. After the case has been resolved
C. When the policy limit is exhausted
D. At the policy's expiration - ANSWER-When the policy limit is exhausted
The Florida Financial Responsibility Law is triggered by?
Select one:
A. Registration of the vehicle
B. Purchase of the vehicle
C. An accident involving bodily injury or property damage
D. Purchase of an auto policy - ANSWER-An accident involving bodily injury or property damage
The insured is an owner and is insured for PIP. She is injured in an accident and has the following damages? medicals-$12,000, lost wages-$6,000. How much will PIP pay if there is a $1,000 deductible?
Select one:
A. $11,200
B. $12,400
C. $9,600
D. $10,000 - ANSWER-$10,000
Trucker insurance premiums are based on all EXCEPT?
Select one:
A. Radius
B. Age of the driver
C. Type of business
D. Territory garaged - ANSWER-Age of the driver
Joe works for Sinks-R-Us, Inc. As part of his compensation package, he is supplied with a company car, which he gets to take home every night. Joe wants to make sure the Liability coverage under his PAP covers him while driving his company car. What coverage would you add to Joe's PAP?
Select one:
A. Named Non-owned coverage
B. Extended Non-owned Liability coverage
C. Drive Away Liability coverage
D. False Pretense coverage - ANSWER-Extended Non-owned Liability coverage
Dan has a Personal Auto Policy with Liability of 10/20/10 and basic PIP with a $1,000 deductible. He is running one day when a car strikes him. A week later he dies. Medical bills are $7,500 and lost wages are $1,000. How much, if any, will PIP pay in this claim? - ANSWER-10,800.00
Joe is an owner insured for PIP. In which of the following situations does Joe have his PIP benefits available to him?
Select one:
A. In a slip and fall accident in the mall in Florida
B. In an accident while riding his motorcycle
C. Struck as a pedestrian in Georgia
D. In an accident while riding as a passenger in a friend's car in Florida - ANSWER-In an accident while riding as a passenger in a friend's car in Florida
The insured bought a new car with a Mechanical Breakdown Policy. When the odometer reaches 40,000 the car has a serious breakdown involving the transmission. How does the Mechanical Breakdown Policy respond?
Select one:
A. No coverage because the policy expired
B. No coverage because a transmission is not covered
C. ACV coverage will apply
D. Replacement cost coverage will apply - ANSWER-No coverage because the policy expired
An insured borrows his neighbor's trailer to pick up his new furniture. Which of the following best describes the insured if he has an accident?
Select one:
A. His PAP will extend coverage if the proper endorsement is added
B. Only the liability of the PAP extends to the trailer
C. His auto is insured, but not the borrowed trailer
D. His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer - ANSWER-His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer
Jane is driving Mary's car. Jane has an at-fault accident with Bob. Mary has liability limits of 10/20/10. Jane has liability limits of 100/300/100. If Bob has $40,000 in bodily injury, how much will be collected from Jane's policy? (IGNORE PIP)
Select one:
A. $30,000
B. $10,000
C. $50,000
D. $20,000 - ANSWER-$30,000
Jim owns an auto and he is involved in an auto accident. He suffered $4,000 in medical expenses and $4,000 of lost income. How much does his insurance pay if he has Extended PIP? Select one:
A. $7,200
B. $8,200
C. $4,200
D. $5,200 - ANSWER-$7,200
If an insured has $100,000 of unstacked UM coverage with three cars on the policy, how much is available under a UM claim?
Select one:
A. $0-
B. $300,000
C. $100,000
D. $200,000 - ANSWER-$100,000
The insured has a PAP with single liability of $50,000. The following loss occurs: $37,000-BI pedestrian; $3,000-Display window; $10,000-Sports car; $1,500-Legal defense. How much would his policy pay for the loss?
Select one:
A. $51,500
B. $37,000
C. $40,000
D. $50,000 - ANSWER-$51,500
The insured is driving down the road when a low hanging branch strikes and cracks his windshield. The cost to replace the windshield is $650. The insured has a $500 collision deductible and a $250 other than collision deductible. The insurance company will pay...?
Select one:
A. $250
B. No coverage
C. $500
D. $650 - ANSWER-$650 [Show Less]