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FLORIDA ADJUSTER LICENSING EXAM
NEWEST 2025 ACTUAL EXAM COMPLETE 400
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Question: While driving, Ben was struck by another driver,
Roxanne. Ben then filed a claim with Roxanne's insurer. In essence, what was Ben doing when he filed this claim?
ANSWER: Submitting a formal request to settle the damages
with Roxanne’s insurer
Question: Mark incurred $8,000 damage to his car in an
accident. He received $8,000 from his insurance company and $4,000 from the other driver. By receiving a profit from the loss,
Mark could be in violation of:
ANSWER: The principle of indemnity (Explanation: The principle of indemnity prevents profiting from a loss; Mark’s total recovery of $12,000 exceeds his $8,000 loss)
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Question: What is a reserve, in insurance terms?
ANSWER: A pool of collected premiums that the insurer sets
aside to pay claims
Question: The purpose of the principle of indemnity is:
ANSWER: To prevent an insured from making a profit on a loss
Question: Greg plays trombone in his school band during
football games. During a rally song in the stands one day, Greg annoys one of the opposing team’s fans, who grabs his $400 trombone and hurls it down the bleachers, completely destroying it. Greg’s insurance pays him $400 to replace the trombone, but then the opposing team’s coach also offers to replace the instrument, at whatever the cost. So Greg orders a new $3,200 trombone and has the opposing team’s athletic department absorb the cost. Which principle has Greg violated?ANSWER: The principle of indemnity (Explanation: Greg profited by receiving $400 from insurance and $3,200 from the coach, exceeding the original $400 loss)
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Question: Which of the following refers to being restored to the
financial condition you were in before a loss?
ANSWER: Indemnification
Question: Bobby just purchased an insurance policy for his
home from XYZ Insurance. Which of the following would be a reason this policy may not be legally binding?
ANSWER: Bobby has been diagnosed with schizophrenia
(Explanation: Competency is required for a legally binding
contract; mental incapacity could invalidate it)
Question: Indemnification may include all of the following
except:
ANSWER: Payment for pain and suffering (Explanation: Indemnification typically covers tangible financial losses, not non-economic damages like pain and suffering)
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Question: Which of the following is NOT a requirement for a
legally binding contract?
ANSWER: It must be a notarized document
Question: The fee paid by the insured in exchange for an
insurance policy is called a:
ANSWER: Premium
Question: Which of the following best defines the principle of
indemnity?
ANSWER: After a loss, the insured should be restored to his
approximate financial condition before the loss
Question: Which of the following is found in the declarations
page of an insurance policy?