Claims Adjuster's Exam (FL)

-Insurable Interest must exist at the time of the loss. -Insurance Interest must exist for insurance to respond. *Show a similarity between insurance and wagering* -The insured would suffer an economic loss.

All of the following describe insurable interest EXCEPT

* A 6 - family dwelling checkmark* -A beach house owned by Acme Corporation -A small single family home, rented by a salesman -An old frame home, built upon piers, valued at $10,000 and occupied by the owner, Mrs. Jones. Company underwriting minimum for a homeowner policy is $50,000.

All of the following may qualify for a dwelling policy EXCEPT:

-It is a personal contract. -Parties are of unequal power with ambiguities or unclear wording resolved in favor of the insured because it is a contract of adhesion. *Indemnity is not part of an insurance contract* -There are conditions imposed upon both the insurer and insured.

An Insurance Policy is a contract with all of the following characteristics, EXCEPT

-The self-insured record *The self-insured retention* -The self-insured reservation -None of the above

An Umbrella Policy may be broader than the underlying policies and respond as primary coverage. When the Umbrella is PRIMARY, there is an amount to be paid by the insured before the Umbrella will pay. What is this amount called?

-Indemnity -Cohesion *Adhesion* -Conditions

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:

-Replacement cost -Original cost minus depreciation -Current cost to replace *Current cost to replace minus depreciation*

"Actual Cash Value" ACV means:

-They are in the regular program -They are in the seasonal program *They are in the emergency program* -They are in the pending program

A community applied to be part of the National Flood Insurance Program. Until they are approved, what is the status of the community?

-The personal articles floater -The installation coverage form *The contractors equipment floater* -The business auto policy

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?

*The value reporting endorsement* -The peak season endorsement -The automatic increase in insurance endorsement -none of the above

A florist wanted coverage on business contents that vary in amount over the course of a year. Which form best covers this situation?

-Barratry *Jettison* -Sue and labor -Running down clause

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:

*Theft* -Deterioration of insured article -Inherent vice - destruction contained within the object -Losses caused by vermin or insects

All of the following are EXCLUSIONS under a personal articles floater (Personal Inland Marine Policy) EXCEPT:

-A person who rents an apartment -A condominium owner -Owner-occupant of a four-family dwelling *A beach house owned by Acme Corporation*

All of the following are eligible for a Homeowners Policy EXCEPT:

-$ 10,000 *$ 20,000* -$ 30,000 -$40,000

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?

*20,000* 16,000 80,000 - 0 -

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)

-Division of Interests *Severability* -Specific Insurance -Insurability

An insurer may sever the interests of 2 insureds so that the insurer can protect an innocent party - this is the Doctrine of:

*Cover within the limits of the H/O policy* -Not cover, unless the "guest endorsement" is included -Not cover, unless the "tenant endorsement" is included -None of the above

Aunt Mary lives with the insured Homeowner. A thief steals her hearing aid. The HO-3 will:

*A package policy* -A combination policy -A monoline policy -A valid policy

Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called?

-The water damage is not a covered. -The fire dept. has liability for the water damage. *The water damage is covered due to the concept of proximate cause* -The Fire damage is covered but not the water damage due to proximate cause.

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:

-Rising water - Flood, back up of sewer or drain -Inherent vice, underground seepage, governmental action -Freezing, wear & tear, marring, deterioration *Fire, lightning, theft*

Homeowners Policies usually insure property for which of the following?

-Lessee *Loss payee* -Mortgagor -Mortgagee

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:

*Personal nature* -Indemnity -Adhesion -Actual cash value

If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of:

-There is no coverage for jewelry in a homeowners policy -There is a $1500 limit for jewelry in the homeowners policy *Could be covered for $20,000 if the Coverage C limit is high enough* -There is a $3000 limit for jewelry in the homeowners policy

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:

Not available in Florida insurance policies Fourth party claims Standard property insurance *Liability*

Insurance that covers the responsibility for loss arising out of policy holder's negligence - that results in payment to a party other than the insured is:

*Legal purpose* Competent parties Consideration Agreement of the parties

Jack and Connie - both 50 years old and of sound mind - agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing?

-Nothing, unless she has endorsed her policy with "unattached structures" coverage. -She can expect the $4500 to be paid, since her policy protects her up to $40,000 for structures. *She can expect $4,000 to be paid, because unattached structures are covered up to 10% of the dwelling amount* -She can expect $4,000 to be paid, only if she has the proper endorsement to her dwelling policy.

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?

-Aggregate Limit -Split Limit -Single Limit *All of the above*

Liability limits may be expressed as a:

Speculative risk *Pure risk* Both A & B None of the above

Risks that are insurable are:

-applies to school systems. -must have failure to use "due care." -considers the actions of a prudent person. *is assigned by law or statute*

Strict or absolute liability:

-The "in storage" endorsement -Admitted aircraft liability *Hangarkeepers liability* -Extra expense endorsement

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:

Adhesion Actual Cash Value *Indemnity* Severability

The goal of insurance is to restore the insured to the same economic position as before the covered loss occurred, this is the principle of:

-The one who holds title to the property -One who inherits title to property under the terms of a will *One who attends a Mary Kay party at a friend's property* -A bank who holds a mortgage on a described property

The principle of "insurable interest" is important in the dwelling policy as well as other kinds of insurance. Which of the following does not have " insurable interest" in the described property?

-Morale hazard *Abandonment* -Conveyance -Proof of Loss

To turn partially damaged property over to the insurance company and ask them to pay for a total loss is called

*10% of Coverage A - Structure* 25% of Coverage A - Structure 50% of Coverage A - Structure 10% of Coverage C - Personal Property

Under both the Dwelling and Homeowners, Coverage B - unattached structures coverage - usually is:

-10 Days -30 Days -45 Days *60 Days*

Under the commercial property form, what length of time must expire before a building is considered "vacant", thus suspending some coverage's, while reducing payment on others?

-DP-1, or the basic form -DP-2, or the broad form *DP-3, or the special form* -None of the above, since "all risks" is not available on a dwelling policy

Which of the following forms is "all risks" on the dwelling policy?

-An insured's suitcase and clothing, valued at $1,500, stolen from his motel room while at a convention. -A fire breaks out in the residence and an overnight guest loses his clothes in the fire. -The insured's daughter's golf clubs are stolen from her locker at high school. *The dead fish when the insured accidentally overturns his tropical fish tank and all the fish die from lack of oxygen.*

Which of the following is NOT covered under the HO - Coverage C, Personal Property?

-Location of risk -Type of construction *Gender of owner* -Fire protection available

Which of the following is NOT one of the rating factors used in determining a H/O (Homeowners) premium?

*Allows the insured to collect twice for the same loss.* -Allows the insurer to sue a negligent third party to recover a loss paid. checkmark -Requires 70% co-insurance. -May allow insurer to divide the interests of the insureds.

Which of the following is TRUE concerning Subrogation?

-I only -II only -III only *I, II, and III*

Which of the following is eligible for a Homeowners policy? I. Susie, who has purchased a condo unit for her residence. II. John, who buys a duplex and lives in one side. III. Sam, who rents an apartment for his residence.

*To be insured for flood, a new building only must have the walls up* -Two acres must be inundated with water - flooded. -Loss to a detached garage would be settled on an actual cash value basis.

Which of the following is false concerning flood insurance?

*Insects destroy a valuable postage stamp worth $500* -A personal art collection on display at a museum show is stolen -A sophisticated telescope is damaged in a fire -All of the above

Which of the following would be excluded (NOT covered) under a personal articles floater on an "all risks" basis?

*In Florida, XYZ is a domestic insurer* In Florida, XYZ is a foreign insurer. In Florida, XYZ is an alien insurer. None of the above is true.

XYZ Insurance Corp. filed its corporate charter in Tallahassee and has its home office in Tampa: