FLORIDA CLAIMS ADJUSTER EXAM 2023-2024 ACTUAL EXAM 260 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS)|AGRADE

FLORIDA CLAIMS ADJUSTER EXAM 2023-2024

ACTUAL EXAM 260 QUESTIONS AND CORRECT

DETAILED ANSWERS WITH RATIONALES

(VERIFIED ANSWERS)|AGRADE

Which of the following are characteristics of Homeowner's Insurance?

A. Protects against economic loss to residences and household property and legal

liabilities

B. Owner-occupants of 1-4 family dwellings

C. Renters who maintain residential occupancy in any type of building

D. All of the Above - ANSWER- D. All of the Above

Rationale: Also included: personal, non-business risk, no more than 2

roomers/boarders, condominium unit owners and cooperative apartment occupants

Jeremy owns a home that is recently damaged due to a hurricane. The repair

estimate is averaged at $25,000 and Jeremy decides to stay in a hotel because most

of the damage is to his bedroom and kitchen. Under a Homeowner's Policy, what

coverage will pay for the hotel room bill?

A. Fair Rental Value

B. Value Obligation

C. Loss of Use

D. Insurers Duties - ANSWER- C. Loss of Use

Rationale: The insurer will pay any necessary and reasonable expenses associated

with a daily living routine.

An insured who wishes to purchase flood insurance, but is located in a moderate or

low risk flood zone may do so by purchasing a:

A. Preferred Risk Flood Policy

B. Standard Flood Policy

C. Universal Flood Insurance

D. None of the Above - ANSWER- A. Preferred Risk Flood Policy

Rationale: Although Flood Insurance is provided by the Federal Government,

those who are not in a "flood zone" may purchase a preferred risk policy to cover

them for a flood claim.

Used only for Commercial Condominiums, it covers the unit-owners business

personal property and the personal property of others in the insured's care, custody

or control:

A. Condominium Dwelling Form

B. Personal Condominium Unit Owners Form

C. Condominium Unit Owners Form

D. None of the Above - ANSWER- C. Condominium Unit Owners Form

Rationale: Does not cover buildings since coverage would typically be provided

under the Condo Association coverage form issued.

The Commercial Property Contract includes all of the following, except:

A. Common Policy Conditions

B. Commercial Property Conditions

C. Coverage Form

D. Commercial Loss Schedule - ANSWER- D. Commercial Loss Schedule

Rationale: Also included: Declarations, Causes of Loss Form, Endorsements

Insures a condominium association against direct physical loss or damage to

buildings, business personal property and personal property of others in the care,

custody or control of the association and located at the premises:

A. Condominium Association Form

B. Condominium Unit Owners Form

C. Condominium Insured Owner Form

D. None of the Above - ANSWER- A. Condominium Association Form

Rationale: This, along with Condo Unit Owners Form, is located under Condo

Coverage.

Sometimes referred to as commercial fire and allied lines, this is the form of

insurance that covers direct and indirect losses related to properties other than oneto-four family dwellings and farm properties:

A. Business Property Insurance

B. Building Property Insurance

C. Commercial Property Insurance

D. None of the Above - ANSWER- C. Commercial Property Insurance

Rationale: (the question is the definition for this term)

Under Commercial Property Policies, Florida law requires an insurer to give the

insured at least __________days advance written notice of non-renewal.

A. 25

B. 90

C. 45

D. None of the Above - ANSWER- C. 45

Rationale: Also, notice must state reasons the policy is not to be renewed.

When a business's personal property values fluctuate, a single, fixed amount of

insurance could produce either over- or under-insurance at any given time. With

this option, the limit of coverage is set at an amount somewhat higher than

expected peak values.

A. Value Reporting

B. Replacement Cost

C. Agreed Value

D. None of the Above - ANSWER- A. Value Reporting

Rationale: Replacement Cost is incorrect b/c it calculates monetary value of one's

personal property

Liberalization states, "The insured gets the benefit of any broadened coverage if

the company, within __________ days of inception, adopts a form revision that is

broader and without increase in premium."

A. 10 days

B. 55 days

C. 65 days

D. 45 days - ANSWER- D. 45 days

Used to cover buildings in the course of construction:

A. Builders Risk Policy

B. Builders Replacement Policy

C. Construction Replacement Policy

D. None of the Above - ANSWER- A. Builders Risk Policy

Rationale: Includes: structure being built (including foundations), fixtures and

machinery, equipment to service building, owned materials and supplies used for

construction. Temporary structures built or assembled on site are also included if

not covered by insurance.