Florida 6-20 All Lines Adjuster Test

The deductible under the revised Commercial Property forms is: A. $500 B. $1,000 C. $250 D. $750

A. $500

The Equipment Dealers Form covers all of the following types of property, except: A. A farm tractor B. A Snow removal truck C. A customer's bulldozer in the insured's repair shop D. An inventory of hats and jackets

B. A Snow removal truck

In crime insurance, which of the following individuals is NOT considered to be a "custodian"? A. Sales clerk B. Janitor C. Partner D. Named insured

B. Janitor

Automatic coverage is provided for newly acquired equipment for: A. 30 days B. 60 days C. 90 days D. 120 days

C. 90 days

What coverage under aircraft coverage can cover the injuries to crew members as an optional coverage? A. Liability coverage B. Admitted liability C. Medical payments D. Workers compensation

C. Medical payments

4. Volcanic action is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Both Basic and Broad

D. Both Basic and Broad

In crime insurance, all of the following situations would be considered theft, except: A. A store's year-end inventory coming up short by 5%. B. Merchandise being stolen with evidence of forced entry. C. A clerk witnessing a customer shoplifting merchandise. D. A clerk being robbed at gunpoint.

A. A store's year-end inventory coming up short by 5%.

Global Electronics has a large piece of equipment that needs to be transported from their plant to their customer. They are using a rented U-Haul truck and one of their drivers is to make the delivery. What type of policy would be needed to cover this one time trip exposure? A. A trip transit policy B. An annual trip policy C. Motor truck cargo D. Bailee policy

A. A trip transit policy

Joseph Young, who is insured under a Business Auto policy, is involved in an accident. He and the insurance company disagree on the amount to be paid for the damage to his car. Under the terms of the policy, which of the following statements is true: A. Each party engages an appraiser, and the appraisers will select an umpire. B. Mr. Young must accept the insurance company's estimate. C. Each party engages an appraiser, and the appraisers will decide the amount. D. The estimates of both parties will be averaged.

A. Each party engages an appraiser, and the appraisers will select an umpire

Which of the following is the type of report that indicates the initial results of a claim investigation? A. Field Report B. Interim Report C. Full Report D. None of the above

A. Field Report

Which of the following is not a claim settlement option? A. Forcing the insured to sue by offering less than the claim is worth. B. Repairing property. C. Replacing with like kind and quality. D. Replace with new

A. Forcing the insured to sue by offering less than the claim is worth.

The insured has suffered a boiler explosion and desperately needs a replacement as soon as possible. What coverage would respond to assist the insured? A. Replacement coverage B. Expediting expenses C. Extra expense coverage D. Loss of income coverage

A. Replacement coverage

With Commercial Property insurance, how would the insured receive replacement cost loss settlement on damage (as a result of a covered peril) to the Personal Property of Others left in the insured's care custody and control? A. Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy, B. Request the Replacement Cost endorsement on Business Personal Property C. Insure the Property of Others for at least 100% of the cost to replace it. D. Send in periodic reports to the insurer on the value of the property of others left in the insured's care custody and control

A. Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy,

Which of the following statements regarding aircraft insurance is incorrect? A. The physical damage coverage is written with a flat deductible. B. Coverage for passengers can be excluded. C. Special coverage must be arranged for Air Meet liability coverage. D. Wear and tear is excluded.

A. The physical damage coverage is written with a flat deductible.

The purpose of Equipment Breakdown insurance is: A. To fill the gaps left by property insurance policies. B. To cover the maintenance of boilers and machinery C. To cover damage done to boilers and machinery only D. To cover the explosions of boilers in non-owned buildings that may cause damage the insured's property.

A. To fill the gaps left by property insurance policies.

In crime insurance, a "custodian" is described by which one of the following? A. Any authorized person outside the premises B. An authorized person having care of insured property inside the premises C. An authorized person outside the premises in charge of money D. An authorized person going to the post office

B. An authorized person having care of insured property inside the premises

The ______is an ideal form of protection for the frequent shipper of goods. A. Trip transit policy B. Annual transit policy C. Monthly transit policy D. Common Carrier motor truck cargo policy

B. Annual transit policy

Which of the following is not a Business Auto endorsement? A. Drive Other Car. B. Change Other Driver. C. Individual Named Insured. D. Mobile Equipment.

B. Change Other Driver.

Which of the following statements regarding the Equipment Dealers Form is incorrect? A. Coverage is on an "open peril basis" B. Coverage applies on a world wide basis C. Contractor's equipment can be covered D. Covers similar property owned by others and on the insured premises

B. Coverage applies on a world wide basis

An innocent party relies on certain statements made by the adjuster and is damaged as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of: A. Waiver B. Estoppel C. Duties of the adjuster D. Law of contract

B. Estoppel

Which of the following is NOT a claim settlement option for liability claims? A. Lost wages B. Excessive amounts claimed C. Loss of use D. Disfigurement

B. Excessive amounts claimed

Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue? A. Scheduled Payment Release B. Full Release Settlement C. Advanced Payment D. Structured Settlement

B. Full Release Settlement

What type of physical damage coverage is needed by a company that repairs aircraft for damage to customer's property? A. Garage liability coverage B. Hangarkeeper's liability C. General liability D. Garagekeeper's legal liability

B. Hangarkeeper's liability

Which of the following is considered a "garage operation"? I. Ownership, maintenance or use of garage premises. II. Sale of products or services in connection with garage operations. III. Ownership or maintenance of covered autos. IV. Production or support of racing or competitive operations. A. I and II only. B. I, II, and III only. C. I and III only. D. I, II, III, and IV.

B. I, II, and III only.

In Commercial Crime coverage, the "Inside the Premises Theft of Money and Securities" insuring agreement would cover loss of all the following, except: A. Currency B. Jewelry C. Tokens and tickets D. Checks and drafts

B. Jewelry

Sue Green has a Commercial Crime Policy on her restaurant, but she only chose the insuring agreement "Inside the Premises Robbery or Safe Burglary of Other Property." If an employee steals some equipment by breaking into the premises during the daytime on a holiday, the policy would: A. Cover the loss B. Not cover the loss, since acts by employees are excluded C. Not cover the loss, since daytime burglaries are excluded D. Not cover the loss, since only loss of merchandise is covered

B. Not cover the loss, since acts by employees are excluded

The Commercial Building and Personal Property Coverage form excludes all of the following types of property, except: A. Securities B. Property of others in the insured's care, custody and control C. Land D. Patios or other paved surfaces

B. Property of others in the insured's care, custody and control

Under the Condominium Association form, coverage is based on: A. The Commercial Property form B. The association agreement and bylaws C. The Special Cause of Loss form D. State and local ordinances

B. The association agreement and bylaws

A public adjuster represents the interest of: A. The insurer B. The Insured C. The employer D. The interest of the general public

B. The insured

The insured has suffered a loss as the result of a cracked steam boiler. What coverage would apply under the Commercial Property Cause of Loss forms? A. The loss would be covered B. The loss is not covered C. Only part of the loss is covered D. Covers only the extra expense in replacing the boiler

B. The loss is not covered

The maximum amount of coverage provided for spoilage to covered property caused by contamination under an Equipment Breakdown policy is: A. $5,000. B. $10,000. C. $25,000. D. The policy limits.

C. $25,000.

Before legal action may be taken against an insurer, an insured must have complied with all terms of the policy. Any legal action must begin within ____ following a loss. A. 6 months B. 5 years C. 2 years D. 12 months

C. 2 years

Community Cleaners is a new dry cleaning and laundry service business. They have vehicles that pick up customer's property to be processed and then delivered back to the customer. What type of policy would you recommend they purchase to cover the customer's property? A. A business owners policy B. A commercial property policy C. A bailee policy D. A trip transit policy

C. A bailee policy

Under the Business Auto Policy, each of the following is true about classification of "covered autos," except: A. "Any auto" is the broadest coverage classification. B. An insured may select different classifications for different coverages. C. All classes of newly acquired autos are automatically covered. D. "Hired autos" includes autos the insured leases, hires, rents or borrows.

C. All classes of newly acquired autos are automatically covered.

Under a Fidelity Bond, which of the following parties receives protection? A. A subcontractor B. An employee C. An employer D. A creditor

C. An employer

The hull physical damage deductible applies to which of the following losses? A. Pilferage B. Fire C. Collision D. Fire and explosion (except when caused by collision)

C. Collision

A contractor has borrowed funds from a bank in order to finance a construction project. A Surety bond which guarantees the lender that the contractor will use the borrowed funds to finish the contract free and clear of liens is known as: A. A Performance bond B. Bid bond. C. Completion bond D. Labor and materials bond

C. Completion bond

States have adopted statutes regarding claims adjusting. To avoid unfair treatment to a claimant the adjuster must not: A. Promptly investigate the claim. B. Follow the laws regarding the number of days in which to commence an investigation. C. Deny the claim until a fair and prompt investigation has commenced. D. Pay the claim within a reasonable number of days after the final proof of loss has been received.

C. Deny the claim until a fair and prompt investigation has commenced.

If the civil authority blocks access to the insured's premises because of a covered peril that has damaged a building down the street, what period of time will the Business Income forms pay the insured for loss of income at his/her premises? A. One week B. Two consecutive weeks C. Four consecutive weeks D. Three consecutive weeks

C. Four consecutive weeks

The Commercial Inland Marine coverage form "valuable papers and records" includes coverage for: I. Money and securities II. Deeds, drawings and maps III. Books, files and mortgages A. I and II B. I and III C. II and III D. II only

C. II and III

In crime insurance terminology, an officer of the company having care and custody of insured property outside the insured premises is known as a: A. Scheduled executive B. Custodian C. Messenger D. Insured property executive

C. Messenger

Which of the following would be covered under a Garage Liability Policy? A. Damage to property the insured is transporting to another location. B. The use of covered autos leased to another party except as a replacement for a car under repair. C. Products and completed operations. D. Covered autos used in organized racing.

C. Products and completed operations.

A company adjuster primarily represents the interests of: A. The insured. B. The claimant. C. The insurer. D. The public.

C. The insurer.

Which of the following terms provides the broadest definition of criminal activity? A. Burglary B. Robbery C. Theft D. Extortion

C. Theft

Most aircraft hull policies are written on a: A. Replacement cost basis B. Market value C. Valued basis D. Actual cash value basis

C. Valued basis

To be defined as a burglary, an event must include which of the following conditions? A. Robbery B. Fear or threat of violence C. Visible signs of forced entry or exit D. Mysterious disappearance

C. Visible signs of forced entry or exit

A building valued at $100,000 was insured for $80,000 with a policy containing 80% Coinsurance clause. Disregarding any deductibles, what would the company pay on a $20,000 loss? A. $7,500 B. $5,000 C. $15,000 D. $20,000

D. $20,000

Under Form MCS-90, a _____ notice to the other party is required for cancellation of coverage on the part of either the insurer or insured. A. 10 day B. 72 hour C. 14 day D. 35 day

D. 35 day

Which of the following is not covered property under a Commercial Property form? A. Accounts, bills and currency. B. Animals not held for sale. C. Cost of foundations. D. All of the above.

D. All of the above.

Which of the following statements is correct? I. The Business Auto Policy uses 10 symbols to define covered vehicles II. Symbols 30 and 31 apply to the Garage Policy. A. I only. B. II only. C. Neither I nor II. D. Both I and II.

D. Both I and II.

Under the "Inside the Premises Theft of Money and Securities" insuring agreement of a Crime Policy, which of the following situations would NOT be covered? A. Cash in the register is destroyed in a fire. B. Traveler's checks that have turned up missing. C. A casino suffers a theft of slot machine tokens. D. Cash that is taken by employees.

D. Cash that is taken by employees.

An adjuster's license will usually be revoked for which of the following reasons: A. Denying claims that are not covered. B. Failing to report a change of address. C. Having been convicted of a misdemeanor. D. Having been convicted of a felony.

D. Having been convicted of a felony.

Which of the following pollution losses would be covered under the Garage Liability Policy? I. Escape of toxic sludge from a dumpsite the named insured utilizes to store garage waste. II. Pollution of a creek caused by a gasoline leak from the ruptured fuel tank of a covered truck following a collision with another vehicle. A. I only. B. Both I and II. C. Neither I nor II. D. II only.

D. II only.

If a boiler explodes and damages a building, contents and property of others, what coverage would apply? A. Only the damage to the boiler is covered. B. Only the building coverage is provided. C. Only the insured's contents are covered. D. If proper limits are in place the entire loss is covered.

D. If proper limits are in place the entire loss is covered.

The covered territory for aircraft coverage does not apply to which of the following? A. United States B. Canada C. Mexico D. Puerto Rico

D. Puerto Rico

The giving up of a known right is called: A. Estoppel B. Violation of policy conditions C. Rebating D. Waiver

D. Waiver

If both the Condominium Association form and the Condominium Unit-Owner form cover the same property, how will the loss be handled? A. Each policy will pay pro-rata B. The Association policy will be excess over the Unit-Owners C. Each policy will share equally in the loss D. The Unit-Owners policy will be excess over the Association policy

D. The Unit-Owners policy will be excess over the Association policy

Common carriers are responsible for damage to customer goods they transport except for damage resulting from: A. Acts of God B. Traffic Accidents C. Load shifting D. Poor vehicle maintenance

A. Acts of God

In crime insurance terminology, a salesperson having possession of the insured's property on-premises is known as a: A. Custodian B. Insured C. Messenger D. Watchperson

A. Custodian

Earth movement is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Basic and Broad

A. None

An "accident" under an Equipment Breakdown policy includes: A. Sudden breakdown of an object. B. Gradual breakdown of an object. C. Leakage of a valve. D. All of the above.

A. Sudden breakdown of an object.

Savage Construction Company has delivered and installed a large boiler in a commercial building. The owner has not yet accepted nor paid for the work. What type of policy should Savage Construction purchase to cover the work until accepted? A. Builders risk B. Installation floater C. Dealer floater D. Transportation floater

B. Installation floater

Sinkhole collapse is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above

D. All of the above

The insured has been involved in an automobile accident and has sustained bodily injuries and damage to the insured vehicle. The adjuster will usually: A. Withhold any payment until all the bills have been reviewed for payment. B. Pay to repair the vehicle and pay the medical bills later. C. Pay for the repair of the vehicle and require a release for all claims. D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release.

D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release.

According to the Business Auto definitions, an "accident": A. Includes continuous or repeated exposure to the same conditions. B. Must be sudden and unexpected. C. Must be unexpected and unpreventable. D. Is any event that causes injury or damage.

A. Includes continuous or repeated exposure to the same conditions.

Garagekeepers coverage excludes all of the following losses, except: A. Loss to a high-value stereo system permanently installed in a customer's auto. B. Loss to CDs from a covered auto. C. Faulty work performed by a mechanic. D. Theft of equipment from a covered auto by a garage employee.

A. Loss to a high-value stereo system permanently installed in a customer's auto.

All of the following provide an additional amount of insurance under the Commercial Building and Personal Property form, except: A. Lottery Tickets B. Newly acquired property C. Property off-premises D. Outdoor Property

A. Lottery Tickets

The Dye's host a party. When the guests arrive, they place their coats in the bedroom. Two days later, Mr. Dye discovers that his ring is missing from the bedroom dresser. This loss is referred to as a: A. Mysterious disappearance B. Burglary C. Robbery D. Theft

A. Mysterious disappearance

Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated? A. No Release or Walk-Away B. Rehabilitation C. Advanced Payment D. Open-Ended Release

C. Advanced Payment

Mr. Jones has damaged his vehicle by striking a tree. He can: A. Take the car to a repair garage recommended by the insurer. B. Take the car to a garage of his/her choice. C. Accept the payment based on the adjuster's estimate. D. All of the above.

D. All of the above.

What is generally excluded on the Condominium Commercial Unit-Owners form? A. The improvements and betterments of the unit-owner B. Hostile fire damage C. Building coverage D. Inside appliances and fixtures

C. Building coverage

Sprinkler leakage is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above

D. All of the above

Under the Commercial Building and Personal Property form, coverage for the "building" includes: A. Additions and extensions to the building B. Property used to service the building C. A heating system D. All of the above

D. All of the above

Which of the following losses to perishable stock would be covered by the Spoilage Endorsement? A. Power outage B. Mechanical breakdown or contamination C. Changes in temperature, humidity, or contamination resulting from a power outage on or off the premises D. All of the above

D. All of the above

Which of the following describes admitted aircraft liability? A. Negligence is not a factor B. Must prove legal liability C. Based on a board review D. Based on a limited threshold of damage

A. Negligence is not a factor

Mr. Jones owns a jewelry store. His wife takes a very valuable necklace and wears it to a party. It is stolen. How will the jeweler's block policy respond to cover this loss? A. The policy will cover the loss. B. The loss will be denied C. The policy will pay the loss on an actual cash value basis D. The policy will pay replacement cost less depreciation

B. The loss will be denied

Which of the following commercial inland marine coverage forms covers sums due the insured from customers which are uncollectible due to loss or damage of records? A. Equipment dealers B. Electronic data processing C. Valuable papers and records D. Accounts receivable

D. Accounts receivable

Under a Surety bond, the "Principal" is the party who: A. Agrees to pay damages if default occurs B. Provides the bond in exchange for a fee C. Will be paid damages if default occurs D. Agrees to fulfill an obligation

D. Agrees to fulfill an obligation

The Commercial Inland Marine coverage form "jeweler's block" excludes loss resulting from: A. Earthquake B. Shortage found upon taking inventory C. Unexplained disappearance D. All of the above

D. All of the above

A deductible that is commonly used in aircraft physical damage insurance is usually: A. A percentage of the value B. A flat deductible C. A disappearing deductible D. A franchise deductible

A. A percentage of the value

Which of the following losses would be covered under a crime policy's "Inside the Premises Robbery or Safe Burglary of Other Property" coverage? A. Broken windows on the insured premises caused by a burglar. B. Theft of money and securities. C. Fire damage to the insured building caused by a burglar. D. Vandalism to a trailer on the insured premises caused by a burglar.

A. Broken windows on the insured premises caused by a burglar.

Under the Commercial Building and Personal Property form, coverage for "business personal property" includes: A. Furniture B. Machinery C. Stock D. All of the above

D. All of the above

XYZ Road Construction Company has a fleet of equipment that consists of bulldozers, backhoes, and road scrapers. The owner desires physical damage coverage to cover the equipment. Which of the following types of insurance contracts would be appropriate to provide the proper coverage? A. Commercial property coverage B. General liability coverage C. Auto physical damage coverage D. Contractors equipment floater

D. Contractors equipment floater

The Special Cause of Loss form excludes all of the following, except: A. Loss of market. B. Loss due to artificially generated electric current. C. Agricultural smudging. D. None of these are exclusions.

D. None of these are exclusions.

The Equipment Breakdown policy is designed to cover equipment ______ the insured. A. Owned by B. Leased to C. Operated by D. All of the above

D. All of the above

The Forgery or Alteration insuring agreement protects the insured from losses resulting from forgery or alteration of: I. Outgoing checks II. Drafts III. Promissory notes IV. Financial instruments drawn against the insured A. I, II, III and IV B. I and II only C. I and III only D. I, II, and III only

A. I, II, III and IV

Which of the following is not covered under aircraft hull insurance? A. Personal effects B. Fuselage C. Wheels D. Propeller

A. Personal effects

Surety bonds guarantee the fulfillment of specific obligations. Each of the following may be the subject of a Surety bond, except: A. Payment of debt B. Protection of funds handled by employees C. Meeting contractual commitments D. Completing a construction job

B. Protection of funds handled by employees

A prospective insured wishes to protect her firm against criminals taking money from a messenger going from the firm to a bank. In this situation, the prospect should purchase coverage for: A. Fidelity B. Robbery C. Assault D. Burglary

B. Robbery

Should an insured fail to report a claim in a timely fashion the adjuster will usually: A. Deny the claim. B. Send the insured a reservation of rights letter. C. Cease investigating. D. Seek the advice of the company's attorney.

B. Send the insured a reservation of rights letter.

Aircraft liability coverage is very similar to auto insurance coverage with the following exception: A. Usually written with a deductible B. Does not apply to property damage of others C. Liability to passengers is treated as a separate exposure D. Cannot exclude passenger liability

C. Liability to passengers is treated as a separate exposure

The Earthquake and Volcanic Eruption endorsement provides coverage: A. Against earthquake from volcanic eruption B. For commercial buildings and other covered property when used in conjunction with another Cause of Loss forms C. For damage caused by shocks that occur within 168-hours after policy expiration if these shocks began during the policy period D. All of the above

D. All of the above

In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the following? A. The cost to replace the vehicle with like kind and quality if a current year model. B. Use the most recent publication of an "Official Used Car Guide". C. If not listed in the "guide", obtain quotations from automobile dealers. D. All of the above depending on the circumstances.

D. All of the above depending on the circumstances.

All of the following are excluded under the Commercial Building and Personal Property form, except: A. Furniture and fixtures. B. Petty cash and IOUs. C. A watch dog. D. The insured's panel truck.

A. Furniture and fixtures.

Which of the following are parties to a contract bond? I. Principal II. Surety III. Obligee IV. Employee A. I, II, and III only B. I, II, III, and IV C. I and II only D. I and III only

A. I, II, and III only

If an initial "accident" to a boiler causes three other boilers to have accidents, under the insurance policy, all four events will be considered: A. One event. B. Two events. C. Three events. D. Four events.

A. One event.

The insured has transported a portion of his property to an exhibition trade show. It is destroyed by a fire. What coverage would apply? A. Property off the premises is not covered B. Fire is not covered for this exposure C. A limit of $10,000 would apply to cover the loss D. Special coverage would have to be purchased to cover property off the premises

C. A limit of $10,000 would apply to cover the loss

Extra Expense insurance covers the cost of: A. Relocation. B. Temporary location. C. Research costs to replace lost information. D. All of the above.

D. All of the above.

Which of the following forms cover flood and earthquake damage? A. Building and Personal Property form B. Special form C. Broad form D. None of the above

D. None of the above

Which of the following losses would be covered under a Robbery and Safe Burglary coverage? A. Valuables kept in a locked safe are destroyed by fire. B. Cash disappears from a locked safe, with no explanation. C. Jewelry is stolen from a locked safe that shows no signs of forced entry. D. Rare manuscripts are stolen from a locked safe that shows signs of forced entry.

D. Rare manuscripts are stolen from a locked safe that shows signs of forced entry.