Assignment One Flashcards
1
Q
Contract (def)
A
agreement between parties
2
Q
What are the four parts needed for a legal, binding contract
A
- each party must agree to terms
- sufficient consideration or value
- parties must have legal capacity to enter into a contract
- Contract must be legal and not against public policy
3
Q
Insurance (def)
A
contract that undertakes to indemnify or pay a certain amount in the event a covered loss occurs
4
Q
Indemnify (def)
A
to make whole
5
Q
Consideration (def)
A
value for an insurance contract
6
Q
What is the consideration in an insurance policy/contract
A
- Premium paid by the insd
2. Promise given by the insurance company
7
Q
How is temporary insurance put into effect
A
through binders
8
Q
What is included in a binder
A
all of the usual terms, conditions and exclusion contained in a policy
9
Q
When is cancellation/non-renewal notice required on a binder
A
- No notice of cancellation or non-renewal required unless the binder has term of 61 or more days
- Auto binders are exception - 5 days notice required to cancel an auto binder
10
Q
Difference between property insurance and liability insurance
A
- Property: payment is issued to the insd or others with interest similar to insd
- Liability: payment only issued to a 3p that the insd has injured or caused damage (insd will never rec pmt under their own lx policy
11
Q
Four fundamental parts of all property and liability insurance contracts
A
- Declarations
- Insuring Agreement
- Exclusions
- Conditions
12
Q
Declarations (def)
A
portion of policy contract that includes info on: □ Insured □ Premium □ Period of coverage □ Policy limits
13
Q
Insuring Agreement (def)
A
defines coverages contained in the policy
14
Q
What does an exclusion do
A
eliminates coverage
15
Q
Conditions (def)
A
requirements that must be met before payment will be made
16
Q
Conditional Contracts (def)
A
contract in which insd has certain duties that must be met following a loss
17
Q
Duties of an insured to meet the conditional contract (5)
A
1, INSD must give prompt notice of loss
2. Cooperate with insurance company
3. Act in away that preserves the ins company rights
4. Send copies of notices or legal papers to insurer
In property policy
5. Must submit written proof of loss
18
Q
Proof of loss (def) (2)
A
evidence offered by the insd to support the claim for damages, and a sign sworn statement by insd verifying what is required according to the policy/insd company
19
Q
Proof of loss requires ID of what 5 things
A
- Origin of loss
- Proximate cause of loss
- Interest of the insd and all other parties in the property
- All contracts of insd that applied to the property
- Any changes in title, use, location, possession of the property
20
Q
Subrogation (def)
A
when insd collects damages from their own insd company, and those damages were caused by a negligent 3p, the insd’s insurance company acts as insd and is entitled to have reimbursement of those damages from the 3p
21
Q
Insurance policies are considered what type of contract (personal, third party, commercial)
A
personal
22
Q
What must be done for a change to a policy to be permitted
A
must be made in writing by the insurance company
23
Q
Coverage applies to a loss that does what in a policy period?
A
begins and take place
24
Q
most policies have a condition that limits coverage to “what” in regard to policy period and policy territory
A
take place in a geographic location
25
What is an excess policy
policy that pays secondary to a primary policy for the same loss, when all applicable limits on the primary policy have been exhausted
26
what is an equal share policy
pay an equal share of the loss, but will not pay more than its policy limits
27
What is a pro rata policy
```
□ This policy pays the proportion that its limit bears to all limits that apply to the loss
□ Example:
® Poly A = $25K limit
® Poly B = $50K limit
® Total limits = $75K
◊ A = 1/3 of total limits
◊ B = 2/3 of total limits
® Loss is $6K
◊ A = 6000 * 1/3 = 2000
◊ B = 6000 * 2/3 = 4000
```
28
Liberalization
If ins company revises a type of policy to broaden the coverage w/out requiring an additional premium, then an insd who has already purchased it will automatically receive the benefit of the better coverage as long as the benefit takes place w/in specified time period (usually 60 days) from policy origination
29
What is the appraisal process (6)
1. If disagreement occurs between insd and insd company on value of loss, each party may select an appraiser
2. These two appraisers then select a 3rd to umpire
3. The umpire will determine the amount of the loss
4. An agreement between any two of the 3 will be binding on both the insd & insurance company
5. Appraisal has nothing to do with whether or not a loss should be paid
6. LX must be determined before the appraisal process takes place
30
What is the principal of Severability (2)
§ Insurance applies separately to each insd as if the other didn't exist
§ Wrongdoing on the part of one insd, does not prevent recovery under the policy for the other insd
Ex: homeowner who commits arson will not prevent the mortgage co from recovering insurance for damage done to the house
31
Risk (def)
the change of financial loss
32
what does a large deductible mean in regards to risk, premium and deductible
Large deductible means the insd retains more risk, and the insd co accepts less risk, therefore premium is lower
33
what does a small deductible mean in regards to risk, premium and deductible
Small deductible means the insd holds less risk, more risk is transferred to the insd co, therefore premium is higher
34
What are the three types of property
1. Real
2. Personal
3. Rights of possession or use
35
Real property (def)
land and anything permanently attached to the land (buildings and structures)
36
Personal property (def)
movable (not perm fixed) property
| □ May include auto, clothes, furniture, fixtures
37
Right of Possession and Use (def)
those who rent property
□ Renter may have an insurable interest in preservation of the property
Example: renter leases space for 10 ys to operate a restaurant. Renter invests money in remodeling and install of equip and furnishings.
38
Peril (def)
event that may cause loss
39
What are 4 main examples of peril (4)
```
® Fire
® Windstorm
® Earthquakes
® Flood
**Insurance companies only cover perils.
```
40
Hazard (def)
increase the risk of loss by peril
41
what are the three types of hazard
1. physical
2. moral
3. morale
42
physical hazard (def)
the physical condition of an item increases risk, ie - broken smoke alarm
43
moral hazad (def)
conscious attitude of the insd. IE - insd that intends to commit arson increases change there will be loss by fire
44
morale hazard (def)
unconscious attitude of insd. IE - carelessness, driver text messaging while driving
45
Doctrine of proximate cause (def)
all damages that result from unbroken connection between covered event and damage that grows out of event are covered
46
Direct Loss (def)
physical harm or damage to tangible property
□ property you can see, touch, feel
□ Ex: fire damage to an office building
47
Indirect Loss (def)
economic loss that results from Direct Loss
| Ex: fire in office building has indirect losses of cost of relocation, loss of profits during repairs
48
What are the three types of deductibles
1. straight
2. percentage
3. franchise
49
straight deductible (def)
flat amount subtracted from the loss
| □ Amt of loss insd has agreed to be responsible
50
Percentage deductible (def)
deduction of percentage of value of property or % of policy limits
51
Franchise deductible (def):
when the loss is equal to or more than the deductible, loss will be paid in full
□ Ex: Franchise dec is $5000
® Loss is $4,999
® No insurance pmt made
*If loss was $5000 or more, the ded will disappear and loss is paid in full
52
Mortgage clause or mortgagee clause (def)
clause in policy that protects a lender that has made a loan on real property
53
Loss Payee (def)
lender that made a loan secured by personal property (auto loan)
54
Actual Cash Value (def):
(ACV): replacement cost - depreciation = ACV
| □ Most property insurance policies pay direct losses on ACV
55
Replacement Cost (def)
the cost of replacing an old item with a new item
56
Principal of Indemnity (def)
provides an insd shall not profit from payment made for a loss
57
How does the state of FL prevent a violation of the Principal of Indemnity on total loss on a building
To prevent insd from making a gain on the loss (since replacement doesn't deduct for depreciation), FL requires replacement actually be done.
58
Valued Policy (def)
parties agree in advance on a coverage limit or value of an item
□ Ex: insd has ring appraised specifically to insure that item, ins co accepts the appraisal and issues policy for that ring (scheduled item)
59
Valued Policy Law (def)
law that provides if there is covered total loss to building, structure, mobile home or manufactured housing unit, ins co must pay amt provided in policy for which premium was paid (ie - policy limits).
□ Adjuster must process claim on basis of insd amount rather than ACV
60
What is coinsurance
Clause in most commercial policies that requires the insd carry specific minimum limit of coverage in order to recover 100% of the loss. If insd carries less than than required amount, then the claim settlement will be reduced to the % they have.
Ex, insd has 50% of the required amt, their settlement will be reduced by 50%.
61
Specific policies (def)
policy that provides a separate limit for each building and the contents of that building
□ Ex: insd owns two office buildings. Each has a sep policy that provides physical damage for $250K. If one building is destroyed, then that building has a limit of $250K.
62
Blanket policies (def)
policy that applies a single amount to two or more coverage items
Ex: same insd has blanket policy that covers two buildings with a limit of $500K. If one building was destroyed, it would have a limit of $500K to pay damages.
63
What are the 3 types of liability policy limits (not coverage lines, but type of financial limit)
1. single
2. split
3. aggregate
64
Single limit (def)
max lx an insurance company will pay for any accident or occurrence.
□ Ex: $30K is lowest single limit for FL auto. Money can be distributed for BI or PD in any amounts that are appropriate.
65
Split limit (def)
expressed in two or more figures.
□ Ex: 10/20/10 (10 BI exp / 20 BI acc / 10 PD ) lowest split limit auto in FL
◊ No more than $10K can be paid in BI to any one individual.
◊ No more than $20K max for BI in one accident
◊ No more than $10K for prop in any accident
66
Aggregate limit (def)
total insurance coverage that will be paid during the policy term for covered losses.
Ex: a company has $50M agg limit for LX claims. If $50M are paid out by end of August and policy goes until Oct, they will not pay out any additional LX claims.
67
What are the two forms of legal liability
civil and criminal
68
Criminal liability (def)
product of law
69
When is an act finally considered criminal?
once made so by legislature
70
Is criminal liability insurable?
no
71
Civil liability (def)
arises from actions brought by persons seeking money damages or other legal relief
□ Lx ins address tort lx
72
Tort (def)
civil wrong, not arising from a contract, for which money damages may be had
73
what are the two classifications of tort?
Unintentional (negligent) and intentional
74
Is there coverage for intentional tort
not typically
75
Is strict liability covered by liability insurance
sometimes
76
strict liability tort
type of tort where claimant can be held liable/negligent even without proof. This is when the situation is usually inherently dangerous.
77
Negligence (def)
failure to exercise degree of care a reasonable person would use to protect others from unreasonable risk of harm
78
Imputed negligence or Vicarious negligence (def)
attributed to a third person responsible for the negligent acts of another
® Ex: employer may be responsible for the negligent acts of an employee while under they employ
79
Damages (def)
under lx insurance, this is defined as money
80
Burden of proof (def)
legal requirement of amount of proof substantiating the claim
81
what is the burden of proof requirement in a civil case
greater weight of evidence, "more likely than not"
82
what is the burden of proof in a criminal case
beyond a reasonable doublt
83
Special damages (def)
pay actual economic losses that arise from an injury and can actually be computed
84
General damages (def)
intangible damages
85
what are two types of special damages
1. medical
| 2. lost wages
86
what are three types of general damages
1. pain and suffering
2. mental anguish
3. scarring of disfigurement
87
what four things does the law require a plaintiff to prove to win a claim based on negligence
1. Defendant had a duty to act or not act
2. Defendant breached that duty
3. Defendant's breach of duty was cause of plaintiff's injury
4. There was an actual injury to the plaintiff
88
Punitive damages (def)
damages awarded when acts of a defendant are so outrageous that is necessary to punish that defendant and deter others from the same actions
89
What are the two main defenses defendant may use in negligence claim
1. Assumption of risk (def): defense that asserts the plaintiff knowingly exposes himself to danger or injury
2. Comparative negligence (def): allows verdict in favor of defendant to be reduced by % of negligence that the plaintiff contributed to the occurrence
90
What happens to a claimant when they are found at least 1% at fault in a contributory negligence state
they will recover nothing
91
Statute of limitations (def)
law that sets the limit of time within a plaintiff may file legal action for recovery of damages
92
What is the tort statute of limitations in FL
w/in 4 years of date of injury
93
FL Wrongful Death Act (def)
defines recovery rights of survivors of deceased person
| **No action is permitted for pain and suffering of person who died
94
Waiver of Sovereign Immunity (def)
law that one person may recover no more than $200K for a tort action against the state, limit of $300K for claims of all persons arising from one accident or occurrence
95
What is an insurer's obligation when any suit is brought against an insd seeking damages that may be payable under a policy
to defend any suit
96
What right does an insurance company have when a suit is brought against an insured for which there is coverage
to defend or settle any such claim in good faith and reasonable judgement
97
To whom should an adjuster issue payment when it's a liability case (3)
1. claimant name
2. all known LH's
3. claimant's atty
98
Why are property and liability policies conditional policies
because payment of damages is conditional on insd satisfying certain requirements
99
Contracts of adhesion (def)
means that one party (the insd) cannot negotiate the terms of the contract
100
whenever there is ambiguity in a adhesion contract for insurance, who is given the benefit
insured, because they can't negotiate
101
Insurance interest (def)
actual, legal and substantial economic interest in the subject of the insurance policy.
□ In order to pay damages, a policy must have an insurable interest
102
what six things may insurance interest be based upon
1. Ownership
2. Shared interest
3. Tenancy for life
4. Lease
5. Adverse and open possession
6. Security interest
103
Waiver (def):
voluntary giving up of a known right
104
What are the two types of waivers
1. express
| 2. implied
105
Express waiver (def)
when ins co knowingly gives up a right under the insurance contract
® Ex: right to appraisal
106
Implied waiver (def)
takes place as result of some act of neglect on the part of the adjuster
107
Estoppel (def)
equitable/fair principal that if someone intentionally/unintentionally creates an impression that a certain fact is true/exists, and then an innocent party relies on that info and suffers damages as a result, the original party claiming the fact cannot say it was false (they must honor the fact)
Ex: adjuster leads clmt to believe that certain future expenses will be paid. The adjuster cannot deny pmt down the road.
108
Utmost good faith principal (def) (3)
1. under law, assumed that all parties to an insurance policy have disclosed all relevant fact and intend to carry out their obligations
2. Serious responsibilities for the adjuster in conduct and work habits
3. Fraudulent app or behavior by insd can void policy
109
Fiduciary agent (def)
person who holds a legal or ethical relationship of trust with one or more other parties
110
As a fiduciary agent, adjusters have the responsibility of loyalty to (3)
1. Interest of the principal
2. Insurance company
3. Insured
111
What are the four acts an adjuster must not do as a fiduciary agent:
1. Adjuster cannot deal in any way with motives of self-interest
2. Adjuster cannot profit, or seek to profit, from any outside source in claims handling activities
3. Adjuster should be aware of actions for libel, slander, defamation
4. Inappropriate remarks or writings (including comp records) may result in claim for damages against adjuster and insurance co
112
what does liability refer to
merit of the claim against the insd
113
What 6 items does the adjuster have the responsibility to investigate
1. Whether or not insd was guilty of negligent act
2. Whether the clmt was guilty of comparative negligence
3. Was risk of injury assumed
4. If claim is actionable because of relationship of parties
5. Can clmt meet burden of proof the law requires
6. Consideration of facts surrounding claim
114
When may a 3p lx claim of an injured minor child be settled
with both parents if settlement amount does not exceed $15K
larger amount requires court approval
115
what does a contract of release generally extinguish
any cause of action arising from occurrence, whether known or unknown
Includes present and future actions
116
FL Unfair Insurance Trade Practices Act statute #
626.9541
117
L Unfair Insurance Trade Practices Act (def) (1)
statute that provides penalties for misrepresentation to insd, clmt for certain business practices
118
What are the 4 business practices penalized by the FL Unfair Insurance Trade Practices Act (626.9541)
® Failing to act promptly
® Denying claims w/out reasonable investigation
® Failing to affirm or deny a claim when an insured is entitled to that decision
® Failing to explain claim denials in writing
Failing to maintain complaint handling procedures (ie - keeping accurate records of complaints)
119
Statue 627.70131 of the FL Unfair Insurance Trade Practices act requires what deadline for acknowledgement of receipt for claims communications
w/in 14 calendar days, unless payment is made w/in that period of time
120
Statue 627.70131 of the FL Unfair Insurance Trade Practices act requires what deadline for paying or denying property claims?
w/in 90 days of notice of claims unless factors beyond control of insurer
121
What is the Code # for Ethical Requirements
Code 69B-220.201
122
What are the 7 ethical requirements under code 69B-220.201
1. Adjusters may not directly negotiate with a clmt who is represented by an atty
2. In interviewing witnesses, adjusters must avoid any actions that lead a witness to suppress or deviate from the truth. Witness must be provided a copy of the statement if it's requested.
3. Adjusters cannot give legal advice
4. Adjusters cannot draft special releases. They can only fill in blanks of a form created by the company
5. Adjusters will not take advantage of an incapacitated clmt
6. Adjusters will not knowingly fail to notify clmt's of their rights under the insurance contract and laws of state
7. Adjusters will approach all aspects of the process with:
® Unprejudiced and open mind
® Making truthful and unbiased reports
® Handling all processes with integrity
® Accepting no payments other than that to which there is legal entitlement
Acting with diligence in achieving property disposition of the claims
123
The Code of Ethics Code 69B-220.201 requires adjuster approach all aspects of the process with what 5 ideals
1. Unprejudiced and open mind
2. Making truthful and unbiased reports
3. Handling all processes with integrity
4. Accepting no payments other than that to which there is legal entitlement
5. Acting with diligence in achieving property disposition of the claims
124
Statute 624.155 under the Code of Ethics allows an insured to do what based upon the Unfair Trade Practices Act?
□ Any person who is damaged by the practices of an insurance co is granted rights to sue for damages.
125
What are the 3 reasons a person can sue their insurance company under Code of Ethics statute 624.155 based upon the Unfair Trade Practices Act?
® Not attempting in good faith to settled claims when it could have, and should have, done so
® Making claim payment that are not accompanied by statement setting out the coverage under which payments are being made
Failure to promptly settle non-liability claims under one portion of coverage, where the obligation has become reasonably clear, in order to influence settlements under other portions of coverage
126
The law F.S. 627-7142 requires residential property insurance companies to do what?
provide a HO Bill or Rights to PH w/in 14 days of receiving a communication re: the claim
127
What 5 rights are included in the Homeowner's Claim Bill of Rights?
1. Right to an acknowledgement of the insurer w/in 14 days of communicating a claim
2. Notice that the claim is covered in part, in full, denied or being investigated w/in 30 days
3. w/in 90 days, subject to any dual interest noted in policy, receive full settlement or pmt of undisputed portion of claim, or receive denial
4. Info on services offered by Dept of Financial Services including free mediation, subject to certain restrictions
5. Advice for dealing with property insurance issues including neutral evaluation of a disputed claim, if claim is for damage by a sinkhole and is covered by the policy
128
1. An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of _____.
a. The insured
b. The insurer
c. The insured and insurer
d. The law
c. The insured and insurer
129
2. An insurer gives which of the following as Consideration for an insurance policy?
a. A Promise
b. A Premium
c. Value
d. A Binder
a. A Promise
130
```
3. The interest of the insured and all other persons in the property involved in a claim is
found in______;
a. The Policy
b. A Proof of Loss
c. The Declarations
d. The Insuring Agreement
```
b. A Proof of Loss
131
```
4. An insured rear-ends another driver’s vehicle. The auto policy that pays damages to
repair the damaged vehicle is a _______?
a. Property policy
b. Liability policy
c. Property and Liability policy
d. Collision policy
```
b. Liability policy
132
5. Your insurance company wrote an auto insurance binder for an owner who said that he
did not have any prior accidents. Immediately thereafter it was discovered that he did not
tell the truth. The company now wants to cancel the binder as quickly as possible. What
is true?
a. No notice required
b. 30 days notice required
c. 10 days notice required
d. 5 days notice required
d. 5 days notice required
133
6. For insurance to pay damages, an insurable interest must exist:
a. When the property is purchased
b. When the claim is made
c. When the loss takes place
d. When the proof of loss is submitted
c. When the loss takes place
134
7. Texting while driving is best described as a:
a. Peril
b. Hazard
c. Tort
d. Peril, hazard and tort
b. Hazard
135
8. A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of
$200,000. Both policies are pro-rata policies. How much will policy B pay for this loss?
a. $90,000
b. $60,000
c. $300,000
d. -0- (Policy A has sufficient funds to pay the claim)
b. $60,000
136
9. I sold my home yesterday, signed a deed and transferred title. Last night there was a
house fire. I had not yet cancelled my homeowner’s insurance. The purchaser also had a
homeowner’s policy. Which policy should pay to pay the claim?
a. Purchaser’s policy
b. Seller’s policy
c. Both policies in equal shares
d. Claim not covered
a. Purchaser’s policy
137
10. Giving prompt notice of loss is best described as a policy:
a. Condition
b. Agreement
c. Proof of Loss
d. Obligation
a. Condition
138
11. If there is a total loss by an insured peril to a FL building, the insurer must pay:
a. All claims
b. Replacement Cost
c. Actual Cash Value
d. Policy limits
b. Replacement Cost
139
12. A Loss Payable Clause refers to:
a. Lender interest in real property
b. Lender interest in personal property
c. Lender interest in real and personal property
d. Loss settlement valuations
b. Lender interest in personal property
140
13. My coin collection was appraised and my insurance company specifically insured the
valued of that collection. That is an example of:
a. The Valued Policy Law
b. A Valued Policy
c. Appraisal
d. Liability Insurance
b. A Valued Policy
141
14. An insurance contract is based on the Principle of:
a. Conditions
b. Severability
c. Utmost Good Faith
d. Proximate Cause
c. Utmost Good Faith
142
15. The two kinds of waivers are:
a. Intentional and Unintentional
b. Express and Implied
c. Timely and Expired
d. Insurable and Uninsurable
b. Express and Implied
143
```
16. Proximate Cause is the unbroken connection between the occurrence and ____ that
grows out of the occurrence.
a. Damages
b. Claims
c. Injuries
d. Judgments
```
a. Damages
144
17. Which loss settlement valuation may be a violation of the Principle of Indemnity?
a. Valued Policy
b. Actual Cash Value
c. Structured Settlement
d. Replacement Cost
d. Replacement Cost
145
18. If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the
value of the property is $100,000, what loss amount will the insurer pay?
a. $15,000
b. $30,000
c. $45,000
d. $60,000
c. $45,000
146
19. The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If
a hurricane loss of $6,000 occurs to the home that is valued and insured for $100,000,
how much will the policy pay?
a. $1,000
b. $2000
c. $5000
d. $6,000
a. $1,000
147
20. A waiver is defined as ___.
a. Giving up a known right involuntarily
b. Giving up a known right voluntarily
c. Unintentional relinquishment of a known right
d. Settling a claim
b. Giving up a known right voluntarily
148
1. An insured signs a release to settle a claim. In the event the insured discovers injuries
or damages that were unknown at the time of settlement, what is generally true?
a. Unknown injuries/damages covered
b. Unknown injuries/damages covered for 90 days following settlement
c. Release extinguished all causes of action
d. Release may be voided within 30 days of settlement
c. Release extinguished all causes of action
149
2. Which of the following is not a tort:
a. Slander
b. Assault
c. Auto accident
d. Breach of contract
d. Breach of contract
150
3. The type of damages that pays medical bills is known as:
a. Punitive
b. General
c. Special
d. Money
c. Special
151
4. A marine policy has a $1 million limit and a $100,000 franchise deductible. A covered
loss is $110,000. How much will the policy pay?
a. $-0-
b. $10,000
c. $110,000
d. Not enough information to determine
c. $110,000
152
5. Which of the following is NOT included in a proof of loss?
a. Origin of loss
b. Replacement cost of each item
c. Interest of insured in each damaged item
d. All contracts of insurance covering any of the property
b. Replacement cost of each item
153
6. Property and Liability policies cover:
a. Persons, Property and Operations
b. Persons
c. Property
d. Operations
b. Persons
154
7. What type of tort arises from a negligent act?
a. Unintentional
b. Intentional
c. Intentional and Unintentional
d. Negligence
a. Unintentional
155
8. A car crash victim sued the negligent-drunk driver for damages 5 years after the
accident. What is true in FL?
a. Mediation required
b. Arbitration applies
c. Statute of Limitations applies
d. Assumption of Risk applies
c. Statute of Limitations applies
156
9. The best statement regarding the Appraisal process is:
a. Appraisal determines the value of a loss
b. Appraisal determines liability
c. Appraisal applies separately to each insured as if the other does not exist
d. Appraisal broadens coverage
a. Appraisal determines the value of a loss
157
10. Florida is a ____Negligence state.
a. Comparative
b. Contributory
c. Intentional
d. Unintentional
a. Comparative
158
11. Rule 69B-220.201 prohibits adjusters from:
a. Filling in the blanks on a release
b. Handling claims with integrity
c. Giving legal advice
d. Giving a witness a copy of their statement
c. Giving legal advice
159
```
12. A defense to a claim made by a person who knowingly competes in an extreme sport
and is injured would be:
a. Assumption of Risk
b. Negligence
c. Strict Liability
d. Bad Faith
```
a. Assumption of Risk
160
13. In Florida property claims must be paid within __ days of notice of claims.
a. 120
b. 90
c. 60
d. 14
b. 90
161
14. ‘Liability’ refers to:
a. Negligence
b. The merits of the claim
c. Risk
d. Burden of Proof
b. The merits of the claim
162
15. Self-interest or self-dealing is a violation of an adjuster’s:
a. Fiduciary duty
b. Job description
c. Claim handling goals
d. Claim handling activities
a. Fiduciary duty
163
16. A single claimant was injured in an accident with a FL State Employee. What is
true?
a. No lawsuit is permitted against the state
b. The maximum recovery is $100,000
c. The maximum recovery is $200,000
d. He must obtain a Waiver of Sovereign Immunity
c. The maximum recovery is $200,000
164
17. An insured has a split limit auto policy with limits of 10/20/10. What is true?
a. Damages to the insured’s car are covered up to $10,000
b. $100 is the most that will be paid for the insured’s injuries
c. $10,000 is available to each claimant for bodily injury, no matter how many
d. The insured can never recover any money from this policy
d. The insured can never recover any money from this policy
165
18. Replacement cost less depreciation is the definition of:
a. The Valued Policy Law
b. A Valued Policy
c. Actual Cash Value
d. The Principle of Indemnity
c. Actual Cash Value
166
19. The FL Unfair Insurance Trade Practices Act penalizes all of the following,
EXCEPT:
a. Failing to Act Promptly
b. Denying Claims without reasonable investigation
c. Failing to explain claim denials in writing
d. Keeping accurate records of complaints
d. Keeping accurate records of complaints
167
20. An insured has an auto policy with a single limit of $30,000. What is true?
a. $30,000 is available for third party property damage and bodily injury claims
b. $30,000 is available for bodily injury claims only
c. $30,000 is available for property damage claims only
d. This is both a liability and property damage policy.
a. $30,000 is available for third party property damage and bodily injury claims
