3-20 Public Adjuster Exam 1
How many hours of Continuing Education is a Public Adjuster required to take every two years? A) what, I have to take continuing education every two years? B) 24 hours every two years C) 28 hours every two years D) 48 hours every two years
B: A Public Adjuster is required to take twenty-four (24) hours of Continuing Education every two years?
A Public Adjuster, upon undertaking the handling of a claim, shall act with dispatch and ____ _______ in achieving a proper disposition of the claim. A) unbridled exuberance B) due diligence C) giddy positivism D) bashful confidence
B: A Public Adjuster, upon undertaking the handling of a claim, shall act with dispatch and due diligence in achieving a proper disposition of the claim.
A licensee must notify the department, in writing, within ____ days after a name, address, or contact information change. A) 10 days B) 30 days C) 90 days D) 365 days
B: A licensee must notify the department, in writing, within 30 days after a name, address, or contact information change.
A simple definition of an offer is the promise one party makes in exchange for another party's _____________. A) promise B) performance C) acceptance D) consideration
B: A simple definition of an offer is the promise one party makes in exchange for another party's performance.
All contracts for public adjuster services must be in writing and prominently display a _______ Statement on the contract. A) Truth B) Fraud C) Public Disclosure D) Suitability
B: All contracts for public adjuster services must be in writing and prominently display a Fraud Statement on the contract.
All incidence of penalties added together. A) per count penalty B) total penalty C) formal and final penalty D) probationary penalty
B: All incidence of penalties added together is referred to as the "total penalty".
Insurance policies require all changes to the policy to be made in ___________ to the insurance company. A) person B) writing C) fax D) none of the above
B: All policies provide that any changes to the policy must be made by submitting a written request to the insurer.
An adjuster shall not directly or indirectly refer or steer any claimant needing repairs or other services in connection with a loss to any person with whom the adjuster has an _____________ financial interest. A) disclosed B) undisclosed C) undivided D) unimaginable
B: An adjuster shall not directly or indirectly refer or steer any claimant needing repairs or other services in connection with a loss to any person with whom the adjuster has an undisclosed financial interest.
In the Commercial Property Insurance policy form Building coverage includes materials, equipment, and supplies within ____ feet of the premises. A )50 B )100 C )500 D )1000
B: Building coverage includes materials, equipment, and supplies within 100 feet of the premises.
Generally speaking, to have the status to legally contract in Florida a person must be at least ___ years of age. A) 16 B) 18 C) 21 D) 25
B: Generally speaking, to have the status to legally contract in Florida a person must be at least 18 years of age.
True or False: In Ocean Marine insurance a constructive total loss occurs when property value is less than the cost of the salvage. A) True B) False
B: In Ocean Marine insurance a constructive total loss occurs when the property value is less than the cost of the salvage + the cost of repairs.
Bert of Bert's Better Lawns has given Bill Simmons a quote of $100 per month for Bill's lawn and landscaping. Bill Simmons liked the quote and has agreed to have Bert's Better Lawns undertake his lawn care and landscaping. Bill's accepting of Better Lawns quote is called? A) An Offer B) An Acceptance C) Consideration D) A Counter-Offer
B: In the law of contracts, acceptance is one person's compliance with the terms of an offer made by another.
This coverage provides medical expenses for bodily injuries by accident irrespective of legal liability. A) Admitted Aircraft Liability Coverage B) Medical Payments C) Aircraft Liability D) None of these apply
B: Medical Payments provides medical expenses for bodily injuries by accident irrespective of legal liability.
Public Adjusters must maintain claims records at the adjuster's place of business for how many years after the claim is closed? A) three years B) five years C) seven years D) for the lifetime of the public adjusting firm's existence
B: Public Adjusters must maintain claims records at the adjuster's place of business for five (5) years after the claim is closed?
You have an insured who has been told that he could obtain a cheaper rate through the FAJUA. You advise him that the FAJUA is a residual market for individuals who: A)Can obtain automobile insurance in the private - competitive market but seek a lower premium B)Cannot obtain automobile insurance in the private - competitive market C)Can obtain automobile insurance in the private - competitive market but seek broader coverage D)None of the above
B: The FAJUA is a residual market for individuals who cannot obtain automobile insurance in the private-competitive market.
The ___________ ____________ is responsible for the supervision of all individuals within the business who act in the capacity of an adjuster. A) Smartest Adjuster B) Primary Adjuster C) Oldest Adjuster D) Most Experienced Adjuster
B: The Primary Adjuster is responsible for the supervision of all individuals within the business who act in the capacity of an adjuster.
The ___________ ____________ establishes what caused the loss; the extent of damages; and determination of an insured's legal liability in liability claims. A) coverage verification B) claims evaluation C) claims inspection D) claims resolution
B: The claims evaluation process establishes what caused the loss; the extent of damages; and determination of an insured's legal liability in liability claims.
The claims investigation involves determining the extent of claimed damages and.... A) verifying if coverage exists B) determining the cause of loss C) settling the claim D) arbitration
B: The claims investigation involves determining the extent of claimed damages and determining the cause of loss.
When a mediated settlement has been reached in writing the policyholder has only ____ business days within which to rescind the mediated settlement. A) 1 business day B) 3 business days C) 7 business days D) 30 business days
B: When a mediated settlement has been reached in writing the policyholder has only thirty (30) business days within which to rescind the mediated settlement.
When there is doubt as to the address of a covered property the courts will favor the __________ where reasonably possible. A) insurance company B) insured C) department D) truth
B: When there is doubt as to the address of a covered property the courts will favor the insured where reasonably possible.
What is the maximum public adjusting charge for a claim based on a non-emergency event? A) 10% B) 20% C) 33 1/3% D) 50%
B: the maximum public adjusting charge for a claim based on a non-emergency event is 20%.
"THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT." The above statement is referred to as? A) Public Adjuster Confession B) Public Adjuster Warning C) Public Adjuster Required Advertising Disclaimer D) Public Adjuster Buyer Beware Disclaimer
C: "THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT." This is of course the required advertising disclaimer for any public adjusting advertisement.
A ________ Adjuster is any person who works on behalf of an insured in negotiating the settlement of an insurance claim. A) Company B )Independent C) Public D) Personal
C: A Public Adjuster is any person who works on behalf of an insured in negotiating the settlement of an insurance claim.
A Public Adjusters license requires an applicant to file with the department a ______ Public Adjusters Bond. A) $10,000 B) $25,000 C) $50,000 D) $250,000
C: A Public Adjusters license requires an applicant to file with the department a $50,000 Public Adjusters Bond.
Aircraft Hull Insurance A) Provides options for Named Perils in flight and All Risk on ground B) Provide options for All Risk on ground or in flight C) Both A & B D) Neither A or B
C: Aircraft Hull Insurance provide options for Named Perils in flight and All Risk on ground AND options for All Risk on ground or in flight
Any funds belonging to others received by a Public Adjuster in a claims settlement are trust funds received by the licensee in a _________capacity. A) monetary B) financial C) fiduciary D) "finders keepers"
C: Any funds belonging to others received by a Public Adjuster in a claims settlement are trust funds received by the licensee in a fiduciary capacity.
Any intent to defraud or deceive the consuming public by a Public Adjuster is punishable as a _______________. A) first degree felony B) second degree felony C) third degree felony D) fourth degree felony
C: Any intent to defraud or deceive the consuming public by a Public Adjuster is punishable as a third-degree felony.
This Boiler and Machinery endorsement provides excess coverage over any other liability available insurance. A) Limited Coverage Endorsement B) Ammonia Contamination Endorsements C) Bodily Injury Liability Endorsement D) Consequential Damage Endorsement
C: Bodily Injury Liability Endorsement: provides excess coverage over any other liability available insurance.
In the BAP Comprehensive covered perils include: A) Theft B) Hail C) Both A & B D) Neither A or B
C: Comprehensive - Any loss, other than collision or overturn that is not otherwise excluded. This would include glass breakage or hitting an animal.
Coverage C in the Homeowners policy covers: A) Dwelling B) Other Structures C) Personal Property D) Loss of Use
C: Coverage C in the Homeowners policy covers Personal Property.
The "open perils" cause of loss in the Personal Articles Floater: A) Covers the "basic" form perils B) Covers the "broad" form perils C) Covers direct physical damage unless excluded D) All of the above
C: Covers direct physical damage unless excluded.
Joe Insured received a claims check without an estimate or any written explanation as to the payment. According to Joe's calculations, the insurance company has only paid about 60% of his claim. The one thing Joe did see and did definitely notice is the words on the front and back of the insurance company's check "FINAL RELEASE OF ALL CLAIMS". A) fair is far, if Joe cashes the check then the claim is closed B) the Final Release of All Claims statement is all Joe needs to know to settle his claim C) the insurance company is required to provide Joe in writing the details of the settlement of his claim including how and why he received a partial settlement of his claim D) Joe should return the check and ask for the other 30%
C: Failing to promptly provide a *reasonable* explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim, or for the offer of a compromise settlement is considered an unfair or deceptive claims practice or act.
If a primary adjuster ends their affiliation with a public adjusting firm the firm must designate another primary adjuster within ____ days. A) 30 days B) 60 days C) 90 days D) 365 days
C: If a primary adjuster ends their affiliation with a public adjusting firm the firm must designate another primary adjuster within ninety (90) days.
Improperly denying claims is the denying of claims without conducting a reasonable _______________ based upon all available information. A) verification B) personification C) investigation D) maximization
C: Improperly denying a claim without conducting a reasonable investigation based upon all available information is unlawful; if this is a "business practice" it is considered an Unfair Act.
One of your insureds was involved in a serious motor vehicle accident with another car. The driver of your insured vehicle was taken by rescue squad to the closest hospital. The other driver in the accident was charged for failure to yield the right of way. What reports will you acquire as part of your claims investigation? (choose all that apply) A) rescue squad report B) weather report C) police report D) farm report
C: In an automobile accident with injuries, the police and rescue squad reports will be ordered to assist in the claims investigation.
"A detailed, logical explanation of coverage, damages, and liability delivered to the claimant in a clear and thoughtful manner" when making a settlement offer. What type of claims negotiator does this describe? A self-interested negotiator B) hard-headed and hard-nosed negotiator C) fair and organized negotiator D) incompetent and uninformed
C: It is the fair and organized negotiator that provides a detailed, logical explanation of coverage, damages, and liability to the claimant in a clear and thoughtful manner when making a settlement offer.
Mechanical Breakdown covers the failure of: A) Original parts B) Replacement parts C) Both A and B D) Neither A or B
C: Mechanical Breakdown covers the failure of original and replacement parts.
Section III Physical Damage in the BAP covers: A) Collision B) Comprehensive or Specified Perils C) Both A & B D) Neither A nor B
C: Section III Physical Damage in the BAP covers Collision, Comprehensive, or Specified Perils.
Section III Physical Damage in the BAP covers: A) Collision B) Comprehensive or Specified Perils C) Both A & B D) Neither A or B
C: Section III Physical Damage in the BAP covers Collision, Comprehensive, or Specified Perils.
Settlement rejections are overcome through all BUT which of the following? A) a positive attitude B) friendly and sincere rapport C) high key and hard-nosed negotiating style D) persistence
C: Settlement rejections are overcome through: a positive attitude; a friendly, sincere rapport; a low-key negotiating style; and persistence.
This Homeowners policy form covers Section I Property (coverages A-C) on a "all risk"/"open perils" basis: A) HO-2 B) HO-3 C) HO-5 D) HO-64
C: The HO-5 covers Section I Property coverages A-C on an "all-risk"/"open perils" basis. The HO-3 covers Section I Property coverages A and B on an "all-risk" basis and coverage C on a broad form basis.
The RCBAP has an ___% coinsurance feature, if building coverage is at least ___% of a buildings replacement cost then claims will be paid on a Replacement Cost basis. A) 33 1/3% B) 66 2/3% C) 80% D) 90%
C: The RCBAP has an 80% coinsurance feature, if building coverage is at least 80% of a buildings replacement cost then claims will be paid on a Replacement Cost basis.
What is the last step in the claims handling process? A) claims evaluation B) claims investigation C) claims resolution D) coverage determination
C: The claims resolution is the last step in the claims handling process.
In order, what are the four steps in the claims handling process? A) resolution, evaluation, investigation, coverage determination B) evaluation, investigation, resolution, coverage determination C) coverage determination, evaluation, investigation, resolution D) investigation, coverage determination, evaluation, resolution
C: The four steps in the claims handling process are coverage determination, evaluation, investigation, resolution.
Who pays for the cost of conducting mediation between an insurance company and insured? A) the filer of the mediation pays B) the insured pays for the mediation C) the insurance company pays for the mediation D) the loser of the mediation pays for the mediation
C: The insurance company is responsible for paying for the mediation.
A man steps off a curb into busy traffic while he was texting on his iPhone; he stepped directly in front of a car which was forced to slam on their brakes. Unfortunately the car skidded into a food truck which then ricocheted into the food truck next to it. What was the proximate cause of all the damage? A) car skidding into the first food truck B) the food truck ricocheting into the second food truck C) the man stepping into oncoming traffic D) none of the above
C: The proximate cause in any event is the primary and effective cause that triggers the event(s) resulting in injury or damages. In this case the negligence of the man stepping into oncoming traffic when it was unsafe to do so was the sole event which triggered the unbroken chain of events leading to the damage to the car and both food trucks.
All of the following can be included in a Commercial Package Policy except? A) Commercial Property B) Commercial General Liability C) Commercial Auto D) Flood
D: A Commercial Package Policy (CPP) utilizes a combined form of declarations and identical policy forms used for monoline coverages. A CPP is created by combining two or more of the following policy forms: Commercial Property Commercial, General Liability, Liquor Liability, Pollution Liability, Professional LiabilityEmployment-Related Practices Liability, Commercial Crime/Employee Dishonesty, Commercial Inland Marine, Boiler and Machinery, Commercial Auto (includes Business Auto, Garage and Truckers Insurance), and Farm (includes Property and Liability coverage).
A Public Adjuster shall not approach investigations, adjustments, and settlements in a manner __________ to an insured. A) favorable B) beneficial C) helpful D) prejudicial
D: A Public Adjuster shall not approach investigations, adjustments, and settlements in a manner prejudicial to an insured.
An adjuster shall not negotiate or effect settlement directly or indirectly with any third-party claimant represented by an __________. A) mediator B) arbitrator C) instigator D) attorney
D: An adjuster shall not negotiate or effect settlement directly or indirectly with any third-party claimant represented by an attorney.
An adjuster who has materially misrepresented to an insured policy benefits with the intent to minimize a claims payment can expect what from the department? A) a pat on the back B) a gold star C) a dirty look D) a suspension of their adjusting license
D: An adjuster who has materially misrepresented to insured policy benefits with the intent to minimize the payment of a claim can expect a suspension of their adjusting license.
All of the following are considerations for compromise by an insurance company EXCEPT? A) setting an adverse precedence for the industry B) exposure to bad faith in the claim C) the legal cost of litigating D) "lucky feeling"
D: An insurance company/claims adjuster will have to evaluate any compromise based upon future legal cost; future company cost; exposure to bad faith; the strength of their defense; the credibility of the insured, claimant, and witnesses; the venue for any potential litigation; and the exposure to setting an adverse precedence for the industry.
The Commercial Builders Risk Coverage Form terminates A) 90 days after construction is completed B) When the property is sold, abandoned or ownership is transferred C) 60 days after the building is occupied or put to its intended use D) All of the above
D: Builders Risk Coverage Form terminates: at policy expiration date; property is sold, abandoned or ownership is transferred; 60 days after the building is occupied or put to its intended use; and 90 days after construction is completed.
Your insured Homeowner has had a fire at her home which has rendered the home unfit for living in. Which coverage will provide temporary housing expense and ancillary cost coverage? A) Coverage A B) Coverage B C) Coverage C D) Coverage D
D: Coverage D - Loss of Use will provide coverage for housing and additional cost.
In the Dwelling Fire policy the difference between Coverage D Fair Rental Value and Coverage E Additional Living Expense is: A) Coverage D pays for the insured's additional expenses to maintain the insured's living standards if the property is uninhabitable B) Coverage E pays for the insured's additional expenses to maintain the insured's living standards if the property is uninhabitable C) Coverage D pays for the fair rental value if the property become uninhabitable D)Both B and C
D: Coverage D pays for the fair rental value of the property become uninhabitable AND Coverage E pays for the insured's additional expenses to maintain the insured's living standards if the property is uninhabitable.
Which of the following are always in a DP-1? A) Fire and Lightning B) Internal Explosion C) Catastrophic Ground Collapse D) All of the above
D: Fire, lightning, internal explosion, and Catastrophic Ground Collapse are always in the DP-1.
All of the following are true regarding the Insuring Agreement in Liability insurance policies EXCEPT: A) the insurance company agrees to pay on behalf of the insured for property damages B) the insurance company agrees to pay on behalf of the insured for bodily injuries C) the insured must be legally obligated to make restitution before the insurance company will pay D) payments are made directly to the insured or the insured's family members
D: ISO PAP Liability Insuring Agreement: "We will pay damages for 'bodily injury' or 'property damage' for which any 'insured' becomes legally responsible because of an auto accident. Payments are made directly by the insurer to the third party to compensate the injured or damaged party for their loss.
Insurance companies are required to provide _____ day notice of either policy Renewal or Non-Renewal. A)10 B)20 C)30 D)45
D: Insurance company are required to provide 45-day notice of either policy renewal or non-renewal.
Which of the following are eligible for a Citizen's Property Insurance policy? A) Single-family homes B) Condo unit owners C) Mobile Homes D) All of the above
D: Read Section 16.2 for a complete review.
Insurance contracts are "personal contracts" where the focus is on? A) the Miami Dolphins B) the insured's operations C) the insured property D) the focus is on the person (the insured)
D: Recall, Insurance covers the insured for the financial losses of property damage or loss, not the property itself. If the insured sells the property, the insurance does not transfer with it.
Residential property insurance companies receiving notice of a claim are required to review and acknowledge receipt of the claim within ____ days. A) 14 days B) 21 days C) 30 days D) 90 days
D: Residential property insurance companies receiving notice of a claim are required to review and acknowledge receipt of the claim within ninety (90) days.
Joe Insured has repeatedly asked why he must provide copies of his credit card statements to get his claim settled. The insurance company has advised Joe that they cannot process his claim without them. Joe is uncomfortable sharing his personal information given all of the identity theft he has heard about. A) Joe Insured must comply or his claim will not be paid B) the insurance company should file an interpleader to obtain Joe's records C) Joe's policy will be canceled if he does not provide a copy of his credit card statements D) the insurance company is guilty of a "failure to explain a request for information"
D: The law requires an insurance company to clearly explain the nature of any requested information and also the reasons why such information is necessary; categorically we refer to this as the "failure to explain a request for information".
Which of the following is not a Mobile Home Insurance underwriting criteria? A) physical dimensions of the mobile home B) the ownership of the land on which the mobile home is affixed C) the year make and model of the mobile home D) the insured's automobile insurance carrier
D: The ownership of the land on which a mobile home resides; the year, make, and model of the unit; the dimensions of the mobile home are all underwriting criteria.
Bert of Bert's Better Lawns has given Bill Simmons a quote of $100 per month for Bill's lawn and landscaping. Bill has accepted Better Lawns offer but advised Better Lawns he was only will to pay $95 per month. What is Bill's "acceptance" called? A) An Offer B) An Acceptance C) Consideration D) A Counter-Offer
D: A counter-offer is an offer made in response to a previous offer by the other party during negotiations for a final contract. ...Making a counter-offer automatically rejects the prior offer and requires an acceptance under the terms of the counter-offer or there is no contract.
A _______ is an assertion of a right demanding a remedy or relief either as a matter of contract or law
A claim is an assertion of a right demanding a remedy or relief either as a matter of contract or law
A _______ is an assertion of a right demanding a remedy or relief either as a matter of contract or law.
A claim is an assertion of a right demanding a remedy or relief either as a matter of contract or law.
A public adjuster is required to provide to their client a ________ _______ of the loss in the negotiation of claim settlement with the insurance company. A) written estimate B) best guesstimate C) second opinion D) professional opinion
A: A public adjuster is required to provide to their client a written estimate of the loss in the negotiation of claim settlement with the insurance company.
Which of the following must be included in a Public Adjusting contract? A) the amount of compensation for services B) Public Adjuster's work history/experience C) Public Adjuster's "Success Ratio" D) Public Adjuster's Buyout Clause
A: All Public Adjuster contracts for services must include the percentage of compensation for services.
An insured may cancel a public adjuster's contract to adjust a claim without penalty within ___ business days after the date on which the contract is executed. A) 3 B) 7 C) 14 D) 21
A: An insured may cancel a public adjuster's contract to adjust a claim without penalty within 3 business days after the date on which the contract is executed.
Any solicitation which invites an insured to submit a claim when the insured does not have covered damage to insured property is at the very least considered? A) misleading B) "smart" advertising C) claims boondoggle D) the old bait and switch
A: Any solicitation which invites an insured to submit a claim when the insured does not have covered damage to insured property is at the very least considered misleading and therefore illegal.
The Actual Loss Sustained Business Interruption Endorsement: A) Covers actual lost profits B) Is subject to 100% coinsurance C) Insurance coverage amount is based upon net profit plus fixed operating expenses D) Each of these is correct
A: Business Income (Time Element) insurance (previously known as Business Interruption) protects a business against the loss of income when the business operations are "interrupted" by an indirect loss not covered under the Commercial Property form. The term "Time Element" means that the amount of the loss is directly linked to the time it takes to repair, rebuild, or restore the damaged property. If Extra Expense coverage is added, it provides the funds necessary to expedite the reopening of the business following a direct property loss. Three coverage forms are available, and their names are self-explanatory: ➢ Business Income including Extra Expense; ➢ Business Income excluding Extra Expense; and ➢ Extra Expense only.
This Boiler and Machinery coverage extension provides reimbursement for expenses necessary to mitigate loss and expedite repairs. A) Expediting Expenses B) Automatic Coverage C) Defense D) Supplementary Payments
A: Expediting Expenses - Extension provides reimbursement for expenses necessary to mitigate loss and expedite repairs.
If a mediated settlement has been made by way of a formal written agreement and the payment to the insured has been cashed the three day period to rescind the mediated settlement is _____________. A) extinguished B) extended for another three days C) consummated D) null and void
A: If a mediated settlement has been made by way of a formal written agreement and the payment to the insured has been cashed the three day period to rescind the mediated settlement is extinguished.
If initial claims offers are rejected the adjuster should move forward with firmer bargaining techniques but must still use a "________ _______". A) soft touch B) harsh touch C) electrifying personality D) amazing vocabulary
A: If initial claims offers are rejected the adjuster should move forward with firmer bargaining techniques but must still use a "soft touch".
Florida is a pure "comparative negligence" legal venue. If you are 90% at fault in an accident, what percent of your damages can you collect fromthe other party that was 10% responsible for the accident? A) 10% B) 50% C) 90% D) 100%
A: In a pure comparative negligence venue, like Florida, you can always collect the portion of your damages that you were notnegligent in or for. In this case the first operator WAS NOT responsible for 10% of the loss and therefore can collect from the other party 10% of their damages.
Providing false information to a singular insured or claimant which is knowingly false or misleading is..... A) the same as lying and is illegal B) is the definition of advertising C) is what is referred to in the insurance business as a "business explanation" D) what is commonly referred to a "puffery" and is legal although morally reprehensible
A: Providing false information to a singular insured or claimant which is knowingly false or misleading is the same as lying and is illegal.
A public adjuster may not enter into a contract that vests in the public adjuster the effective authority to choose the repairer/re-builders to do any work in a property insurance claim. Why Not? A) to ensure there is no opportunity for malfeasance by the public adjuster B) is a stupid law; who cares who does the work C) because the Public Adjuster might pick a horrible contractor to do the work D) because the work would not be guaranteed for three years
A: Public Adjuster may not choose the persons or entities that will perform repair work in a property insurance claim.
This Homeowners policy form covers Section I Property on a named perils basis: A) HO-2 B) HO-3 C) HO-5 D) HO-64
A: The HO-2 covers Section I Property on a named perils basis.
A pipe has burst in your insured's home, damaging the dwelling and contents. The insured has an HO-5; how will the policy cover this loss? A) Flooding and water damage are excluded B) This loss will be covered for damage to the Dwelling only C) This loss will be covered on an open perils basis for the Dwelling and Personal Property D) The loss will be settled on an Actual Cash Value basis
A: The HO-5 is the most comprehensive of the Homeowners policy forms. The loss will be covered on an open perils and replacement cost basis.
Which Cause of Loss form and which Valuation Method would result in the highest payout for a first-party insurance property loss? A) Special Form Cause of Loss and Replacement Cost Value B) Special Form Cause of Loss and Actual Cash Value C) Broad Form Cause of Loss and Replacement Cost Value D) Broad Form Cause of Loss and Actual Cash Value
A: The Special Form Cause of Loss form and Replacement Cost Value would result in the highest payout for a first-party insurance property loss?
King George's Pipe and Tobacco Shop has a Business Owners Policy (BOP) with $500,000 of coverage on their building. The actual replacement cost of the building is $600,000. If the shop suffers a fire and "goes up in smoke" totally destroying the building how much will the insured receive as a claims payment on the building? A) the insured will receive the BOP's Building coverage limit of $500,000 as the Building Coverage limit was greater than the required 80% B) the insured will receive $416,667 which is the pro-rata Building coverage to Building value ratio times the loss C) the insured will receive the full $600,000 for the replacement cost because the insured has at least 80% of the value of the building insured D) the insured will receive $100,000 which is calculated as $600,000 Building Valueless the $500,000 of Building Coverage
A: The insured will receive the full coverage limit of $500,000 as the Building Coverage amount was at least 80% of the Buildings replacement cost.
What is the maximum public adjusting charge for a claim based on events that are the subject of a declaration of a "State of Emergency" by the Governor? A) 10% B) 20% C) 33 1/3% D) 50%E)
A: The maximum public adjusting charge for a claim based on events that are the subject of a declaration of a "State of Emergency" by the Governor is 10%.
Which party normally "fairs" best in negotiations? A) the offering party B) the silent party C) the attorneys D) none of these are correct
A: The offering party in negotiations usually fairs better than the silent party.
The ultimate objective of an insurance company and claimant in a claim is to get the claim __________. A) resolved B) litigated C) arbitrated D) mediated
A: The ultimate objective of an insurance company and claimant in a claim is to get the claim resolved.
__________ is by and large when a property is without occupant or contents (entirely and materially empty). A) vacancy B) immaterial occupancy C) unoccupancy D) incurably empty
A: Vacancy is by and large when a property is without occupant or contents (entirely and materially empty).
True or False? It is an unfair or deceptive claims act to promptly notify insureds of any additional information necessary for the processing of a claim. True False
False: A claims adjuster is required to promptly notify an insured of any additional information necessary for the processing of a claim.
True or False? Because the NFIP is a government program all communities are automatically eligible for the NFIP. True False
False: Communities must apply for admittance to the program and be approved first in the Emergency Program and thereafter in the Regular Program.
True or False? An insured is required to place an insurer on formal written notice of Their right to mediate: when the policy is first issued; at each renewal; and at the time a claim is filed. True False
False: It is the INSURER who must place the INSURED on formal written notice concerning the availability of Mediation.
True or False? It is rude but lawful to solicit or otherwise taking advantage of a person who is emotionally upset as the result of a trauma, accident, or other similar occurrence. True False
False: It is unlawful to solicit or otherwise take advantage of a person who is emotionally upset as the result of a trauma, accident, or other similar occurrences.
True or False? Symbol 31 showing Specified Causes of Loss would cover fire damage to an insured's tow truck. True False
False: The Garage policy utilizes Symbol 31 to cover the Physical Damage to a Dealer's Lot or to cover vehicles for sale for non-dealers.
True or False? A Public Adjuster can have their license suspended if they demonstrate a lack of fitness or trustworthiness in the settlement of insurance claims. True False
It is true: A Public Adjuster can have their license suspended if they demonstrate a lack of fitness or trustworthiness in the settlement of insurance claims.
On balance successful negotiators make less predictable and consistently smaller _____________ than their opponents.
On balance successful negotiators make less predictable and consistently smaller concessions than their opponents.
The claims __________ process is the natural interplay of the coverage determination and claims investigation process which determines "how much" coverage is available, how much is payable; and to whom.
The claims evaluation process is the natural interplay of the coverage determination and claims investigation process which determines "how much" coverage is available, how much is payable; and to whom.
True or False: Building coverage includes: refrigerating, ventilating, cooking, dish-washing, and laundering appliances. A)True B)False
True: Building coverage includes: The structures listed on the declarations page including completed additions; fixtures, including outdoor fixtures; permanently installed machinery and equipment; personal property to service the premises including fire extinguishers, outdoor equipment; floor coverings; and refrigerating, ventilating, cooking, dish-washing and laundering appliances. Unless otherwise covered, "building" includes additions, alterations, and repairs under construction including the materials, equipment, and supplies within 100 feet of the premises and necessary in the construction.
True or False? An insured's Collision coverage covers loss from the collision, upset, or overturn of an insured vehicle. True False
True: Collision and upset or overturn is covered by the insured's Collision coverage.
True or False? The Dwelling policy's Coverage A Dwelling includes additions in contact with the dwelling building. True False
True: The Dwelling policy's Coverage A Dwelling includes additions in contact with the dwelling building.
