Adjuster

The adjuster has a particular relationship to his principal, the insurer. Which of the following best describes this relationship? a. It is a fiduciary relationship. b. It is a functional relationship. c. It is a final relationship. d. It is a festering relationship.

A. It is a fiduciary relationship.

Which of the following is a duty owed to an invitee? a. land owner must make reasonable efforts to maintain property in safe condition b. invitee must maintain a care level typical of a reasonable person c. land owner does not owe any legal duties to an invitee - they are the same as trespassers d. None of the above are true

A. land owner must make reasonable efforts to maintain property in safe condition

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? a. 10 days b. 30 days c. 60 days d. 90 days

B. 30 days

An adjuster offered a claimant a settlement where the full payment would be presented and a release was signed. This is called a: a. Walk-away settlement b. A Full Release settlement c. A Rehabilitation settlement d.A Structured settlement

B. A Full Release settlement

Which of the following is TRUE? a. If an appointment is terminated, an adjuster has 12 months to secure another appointment b. If an appointment is terminated, an adjuster has 48 months to secure another appointment c. If an appointment is terminated, an adjuster may not secure another appointment d. None of these are true

B. If an appointment is terminated, an adjuster has 48 months to secure another appointment

A claimant was given a settlement, which stipulated, that if the claimant did not contact the company within a certain period of time, the claim would automatically close. No release was signed. Which of the following best describes this method of settlement? a. Full release b. No release or walk-away c. Advanced payment d. Scheduled payment

B. No release or walk-away

Which of the following is NOT one of the duties of the Department of Financial Services? a. License adjusters b. Set rates and write policies for various company products c. Supervise the claims activity of adjusters d. Investigate charges of unethical conduct of adjusters

B. Set rates and write policies for various company products

The Continuing Education requirement to maintain an Adjuster license in Florida is: a. Not required for any adjuster license. b. Twenty four hours every two years. c. Ten hours every two years. d. Only required for Workers Comp Adjusters

B. Twenty four hours every two years.

All of the following activities are illegal for an adjuster, EXCEPT: a. Give advice which is of a legal nature b. Use only company forms to prepare releases c. Encourage a claimant to make a quick decision on an offer to settle d. Fail to make claimant aware of potential litigation for claimant's actions

B. Use only company forms to prepare releases

Which of the following is NOT one of the fiduciary responsibilities of an adjuster? a. Properly account for all money handled. b. Withhold pertinent information from the company to please a client c. Reveal all relevant underwriting facts to the insurance company underwriter d. Maintain loyalty to the principal

B. Withhold pertinent information from the company to please a client

During what period of time must an adjuster reply to communication from a policyholder on a claim? a. 3 days b. 10 days c. 14 days d. 30 days

C. 14 days

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? a. 10 calendar days b. 14 calendar days c. 21 calendar days d. 30 calendar days

C. 21 calendar days

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: a. Adjuster refuses to advise insured of reason claim denied in writing b. Adjuster denies a claim without reasonable investigation c. Adjuster keeps accurate records on a claim d. Adjuster settles a claim based on an altered application.

C. Adjuster keeps accurate records on a claim

All of the following are part of the conditions imposed upon the insured in the event of a loss, EXCEPT: a. Insured should inventory property. b. Insured should protect damaged property to prevent further damage. c. Insured should negotiate on behalf of the company for 3rd party claimants. d. Insured should allow inspection of damages by the insurance company.

C. Insured should negotiate on behalf of the company for 3rd party claimants.

What is the difference between liability and coverage? a. there is no difference b. they are not related c. liability is a legal doctrine and coverage is a contractual obligation d. coverage is a legal obligation and liability is a legal obligation

C.liability is a legal doctrine and coverage is a contractual obligation

Comparative negligence is determined through a. Investigation & Analysis b. Agreement between parties or by mediation or arbitration c. Judge and/or jury d. All of the above may be used to determine comparative negligence

D. All of the above may be used to determine comparative negligence

Florida's Administrative Code contains a Code of Ethics for Adjuster - which of the following is FALSE? a. An adjuster shall not provide favored treatment to any claimant b. An adjuster shall not advise a claimant to refrain from seeking legal advice c. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster's own interests d. An Adjuster owes fair and prompt treatment to their own company's policyholders only

D. An Adjuster owes fair and prompt treatment to their own company's policyholders only

The Claims Adjuster's role in the insurance industry includes all the following EXCEPT: a. Facilitating payment of legitimate claims b. Replies to communication on a claim within 14 calendar days c. Replies to Department of Insurance inquires on a claim within 21 calendar days d. Gives appropriate legal advice and writes binding contracts

D. Gives appropriate legal advice and writes binding contracts

Which of the following is NOT a goal in the adjusting process? a. comply with laws and contract b. cultivate good customer relations and policyholder retention c. control costs d. always pay the maximum limit of the policy

D. always pay the maximum limit of the policy