New Hampshire Adjuster Exam Prep Series 12-75
|| || || || || || ||
questions with verified detailed answers || || || ||
Which of the following best defines "insured"?
|| || || || || ||
A. Transfer of the risk of financial loss from one party to another
|| || || || || || || || || || || ||
B. A legally binding contract in which the insurance company agrees to pay for specified
|| || || || || || || || || || || || || || ||
losses in exchange for premiums
|| || || ||
C. An individual or organization that pays premiums in exchange for financial protection
|| || || || || || || || || || || ||
D. A company, group, or government agency offering financial protection
|| || || || || || || || ||
C. An individual or organization that pays premiums in exchange for financial protection
|| || || || || || || || || || || ||
What are the four requirements of a legally binding contract?
|| || || || || || || || ||
A. Agreement, consideration, character, signatures
|| || || ||
B. Authority, character, competent parties, legal purpose
|| || || || || ||
C. Authority, consideration, signatures, legal purpose
|| || || || ||
D. Agreement, consideration, competent parties, legal purpose
|| || || || || ||
D. Agreement, consideration, competent parties, legal purpose
|| || || || || ||
Darnell is applying for auto insurance with his agent. Currently, he only wants to get a
|| || || || || || || || || || || || || || || ||
minimal amount of coverage to keep his premiums as low as possible, so he decides not to
|| || || || || || || || || || || || || || || || ||
include uninsured motorist coverage on his policy. His agent has him sign a document
|| || || || || || || || || || || || || ||
giving up his right to this coverage. What is this called?
|| || || || || || || || || ||
A. A warranty
|| ||
B. An express waiver
|| || ||
C. A binder
|| ||
D. An implied waiver
|| || ||
B. An express waiver
|| || ||
An economic device used to protect against the risk of realizing unforeseen and
|| || || || || || || || || || || || ||
extraordinary financial loss is called: || || || ||
,A. risk avoidance
|| ||
B. insurance
||
C. indemnification
||
D. subrogation
||
B. insurance
||
tom purchases a new car from his local car dealer. he also decides to get insurance coverage
|| || || || || || || || || || || || || || || || ||
that will pay to repair the car if he were to get into an accident. this is because tom wants to
|| || || || || || || || || || || || || || || || || || || || ||
protect:
A. his own financial interest in the car
|| || || || || || ||
B. other drivers on the road
|| || || || ||
C. his insurance company's profit margins
|| || || || ||
D. any passengers who ride in his car
|| || || || || || ||
A. his own financial interest in the car
|| || || || || || ||
Skip's Convenience Store must agree to install and maintain an emergency shutoff system
|| || || || || || || || || || || || ||
for its gas pumps in order to qualify for insurance coverage. Which of the following
|| || || || || || || || || || || || || || ||
statements is true? || ||
A. This requirement is a binder found in the conditions section of the policy
|| || || || || || || || || || || || ||
B. This requirement is a warranty found in the conditions section of the policy
|| || || || || || || || || || || || ||
C. This requirement is a warranty found in the declarations section of the policy
|| || || || || || || || || || || || ||
D. This requirement is a representation found in the declarations section of the policy
|| || || || || || || || || || || || ||
B. This requirement is a warranty found in the conditions section of the policy
|| || || || || || || || || || || || ||
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the
|| || || || || || || || || || || || || || ||
policyholder____.
A. covered property; a risk pool
|| || || || ||
B. premium payments; peace of mind
|| || || || ||
C. peace of mind; risk
|| || || ||
D. a surety; premium payments
|| || || ||
B. premium payments; peace of mind
|| || || || ||
When an insured signs a document acknowledging that he gives up his right to a certain
|| || || || || || || || || || || || || || || ||
coverage, such as uninsured motorist coverage in an auto policy, this is called:
|| || || || || || || || || || || ||
,A. an express waiver
|| || ||
B. an implied waiver
|| || ||
C. a warranty
|| ||
D. an estoppel
|| ||
A. an express waiver
|| || ||
Sandra rear-ended Randy's car when he stopped quickly for a yellow light that she was sure
|| || || || || || || || || || || || || || || ||
they were both going to make. The damage was minor, but Sandra was worried her
|| || || || || || || || || || || || || || ||
premiums would increase if the accident was reported, so she gave Randy $500 in an effort
|| || || || || || || || || || || || || || || ||
to keep it just between the two of them. However, Randy filed the claim with his insurance
|| || || || || || || || || || || || || || || || ||
company and received a settlement check for $750. What has Randy violated?
|| || || || || || || || || || ||
A. The principle of insurable interest
|| || || || ||
B. The principle of subrogation
|| || || ||
C. The principle of indemnity
|| || || ||
D. The principle of loss minimization
|| || || || ||
C. The principle of indemnity
|| || || ||
Scott is visiting his insurance agent's office and applying for auto insurance on his new car.
|| || || || || || || || || || || || || || || ||
The auto policy that the agent drafts will be based on Scott's ________.
|| || || || || || || || || || || ||
A. warranties
||
B. promises
||
C. subrogation
||
D. representations
||
D. representations
||
Which of the following statements about insurable interest is FALSE?
|| || || || || || || || ||
A. Dean has insurable interest in the city's power transformer that supplies power to the
|| || || || || || || || || || || || || || ||
homes on his street because damage to the transformer would leave Dean without power.
|| || || || || || || || || || || || ||
B. Mark has insurable interest in the company that he co-owns with his partner, Aaron.
|| || || || || || || || || || || || || ||
C. Mary has insurable interest in Barry's life because Barry's death would cause Mary
|| || || || || || || || || || || || || ||
economic hardship. ||
D. The bank has insurable interest in Wilson's home, for which it holds the mortgage.
|| || || || || || || || || || || || || ||
, A. Dean has insurable interest in the city's power transformer that supplies power to the
|| || || || || || || || || || || || || || ||
homes on his street because damage to the transformer would leave Dean without power.
|| || || || || || || || || || || || ||
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would cost
|| || || || || || || || || || || || || || || || ||
$29,600 to replace it today. The vehicle has an annual depreciation of $1,200. Darren loses
|| || || || || || || || || || || || || || ||
control while driving too fast around a bend in the road and flips his vehicle, totaling it.
|| || || || || || || || || || || || || || || || ||
Assuming Darren's auto insurance policy pays ACV, how much can he expect to receive in
|| || || || || || || || || || || || || || ||
indemnification for this claim? || || ||
ACV= Replacement Value-Total Depreciation
|| || ||
$29,600-($1,200x5yrs)
A. $29,600
||
B. $23,600
||
C. $22,500
||
D. $27,300
||
B. $23,600
||
Susan is a successful plastic surgeon and wants to purchase liability insurance. Her
|| || || || || || || || || || || || ||
husband, a teacher, is part of a risk retention group and is quite happy with his insurance.
|| || || || || || || || || || || || || || || || ||
Susan decides to apply to her husband's group, but her application is denied. This is
|| || || || || || || || || || || || || || ||
because:
A. Susan's business is not similar to that of her husband's
|| || || || || || || || || ||
B. Susan has not owned her own business for more than two years
|| || || || || || || || || || || ||
C. Surgeons cannot be members of a risk retention
|| || || || || || || ||
D. Risk retention groups do not typically provide liability insurance
|| || || || || || || || ||
A. Susan's business is not similar to that of her husband's
|| || || || || || || || || ||
Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house was struck
|| || || || || || || || || || || || || || || || ||
by lightning and the current fried her TV. The TV depreciates at $400 per year and a similar
|| || || || || || || || || || || || || || || || || ||
TV costs $1,200 today. Assuming Roxanne's homeowners policy has a replacement cost
|| || || || || || || || || || || ||
endorsement for personal property, how much can she expect to receive in indemnification
|| || || || || || || || || || || || ||
for her damaged TV?
|| || ||
Replacement Cost= ||
Current Cost-[Original Purchase Cost-(Total Depreciation]
|| || || ||
$1,200-[$2,400-($400x4yrs)]
A. $2,400
||
|| || || || || || ||
questions with verified detailed answers || || || ||
Which of the following best defines "insured"?
|| || || || || ||
A. Transfer of the risk of financial loss from one party to another
|| || || || || || || || || || || ||
B. A legally binding contract in which the insurance company agrees to pay for specified
|| || || || || || || || || || || || || || ||
losses in exchange for premiums
|| || || ||
C. An individual or organization that pays premiums in exchange for financial protection
|| || || || || || || || || || || ||
D. A company, group, or government agency offering financial protection
|| || || || || || || || ||
C. An individual or organization that pays premiums in exchange for financial protection
|| || || || || || || || || || || ||
What are the four requirements of a legally binding contract?
|| || || || || || || || ||
A. Agreement, consideration, character, signatures
|| || || ||
B. Authority, character, competent parties, legal purpose
|| || || || || ||
C. Authority, consideration, signatures, legal purpose
|| || || || ||
D. Agreement, consideration, competent parties, legal purpose
|| || || || || ||
D. Agreement, consideration, competent parties, legal purpose
|| || || || || ||
Darnell is applying for auto insurance with his agent. Currently, he only wants to get a
|| || || || || || || || || || || || || || || ||
minimal amount of coverage to keep his premiums as low as possible, so he decides not to
|| || || || || || || || || || || || || || || || ||
include uninsured motorist coverage on his policy. His agent has him sign a document
|| || || || || || || || || || || || || ||
giving up his right to this coverage. What is this called?
|| || || || || || || || || ||
A. A warranty
|| ||
B. An express waiver
|| || ||
C. A binder
|| ||
D. An implied waiver
|| || ||
B. An express waiver
|| || ||
An economic device used to protect against the risk of realizing unforeseen and
|| || || || || || || || || || || || ||
extraordinary financial loss is called: || || || ||
,A. risk avoidance
|| ||
B. insurance
||
C. indemnification
||
D. subrogation
||
B. insurance
||
tom purchases a new car from his local car dealer. he also decides to get insurance coverage
|| || || || || || || || || || || || || || || || ||
that will pay to repair the car if he were to get into an accident. this is because tom wants to
|| || || || || || || || || || || || || || || || || || || || ||
protect:
A. his own financial interest in the car
|| || || || || || ||
B. other drivers on the road
|| || || || ||
C. his insurance company's profit margins
|| || || || ||
D. any passengers who ride in his car
|| || || || || || ||
A. his own financial interest in the car
|| || || || || || ||
Skip's Convenience Store must agree to install and maintain an emergency shutoff system
|| || || || || || || || || || || || ||
for its gas pumps in order to qualify for insurance coverage. Which of the following
|| || || || || || || || || || || || || || ||
statements is true? || ||
A. This requirement is a binder found in the conditions section of the policy
|| || || || || || || || || || || || ||
B. This requirement is a warranty found in the conditions section of the policy
|| || || || || || || || || || || || ||
C. This requirement is a warranty found in the declarations section of the policy
|| || || || || || || || || || || || ||
D. This requirement is a representation found in the declarations section of the policy
|| || || || || || || || || || || || ||
B. This requirement is a warranty found in the conditions section of the policy
|| || || || || || || || || || || || ||
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the
|| || || || || || || || || || || || || || ||
policyholder____.
A. covered property; a risk pool
|| || || || ||
B. premium payments; peace of mind
|| || || || ||
C. peace of mind; risk
|| || || ||
D. a surety; premium payments
|| || || ||
B. premium payments; peace of mind
|| || || || ||
When an insured signs a document acknowledging that he gives up his right to a certain
|| || || || || || || || || || || || || || || ||
coverage, such as uninsured motorist coverage in an auto policy, this is called:
|| || || || || || || || || || || ||
,A. an express waiver
|| || ||
B. an implied waiver
|| || ||
C. a warranty
|| ||
D. an estoppel
|| ||
A. an express waiver
|| || ||
Sandra rear-ended Randy's car when he stopped quickly for a yellow light that she was sure
|| || || || || || || || || || || || || || || ||
they were both going to make. The damage was minor, but Sandra was worried her
|| || || || || || || || || || || || || || ||
premiums would increase if the accident was reported, so she gave Randy $500 in an effort
|| || || || || || || || || || || || || || || ||
to keep it just between the two of them. However, Randy filed the claim with his insurance
|| || || || || || || || || || || || || || || || ||
company and received a settlement check for $750. What has Randy violated?
|| || || || || || || || || || ||
A. The principle of insurable interest
|| || || || ||
B. The principle of subrogation
|| || || ||
C. The principle of indemnity
|| || || ||
D. The principle of loss minimization
|| || || || ||
C. The principle of indemnity
|| || || ||
Scott is visiting his insurance agent's office and applying for auto insurance on his new car.
|| || || || || || || || || || || || || || || ||
The auto policy that the agent drafts will be based on Scott's ________.
|| || || || || || || || || || || ||
A. warranties
||
B. promises
||
C. subrogation
||
D. representations
||
D. representations
||
Which of the following statements about insurable interest is FALSE?
|| || || || || || || || ||
A. Dean has insurable interest in the city's power transformer that supplies power to the
|| || || || || || || || || || || || || || ||
homes on his street because damage to the transformer would leave Dean without power.
|| || || || || || || || || || || || ||
B. Mark has insurable interest in the company that he co-owns with his partner, Aaron.
|| || || || || || || || || || || || || ||
C. Mary has insurable interest in Barry's life because Barry's death would cause Mary
|| || || || || || || || || || || || || ||
economic hardship. ||
D. The bank has insurable interest in Wilson's home, for which it holds the mortgage.
|| || || || || || || || || || || || || ||
, A. Dean has insurable interest in the city's power transformer that supplies power to the
|| || || || || || || || || || || || || || ||
homes on his street because damage to the transformer would leave Dean without power.
|| || || || || || || || || || || || ||
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would cost
|| || || || || || || || || || || || || || || || ||
$29,600 to replace it today. The vehicle has an annual depreciation of $1,200. Darren loses
|| || || || || || || || || || || || || || ||
control while driving too fast around a bend in the road and flips his vehicle, totaling it.
|| || || || || || || || || || || || || || || || ||
Assuming Darren's auto insurance policy pays ACV, how much can he expect to receive in
|| || || || || || || || || || || || || || ||
indemnification for this claim? || || ||
ACV= Replacement Value-Total Depreciation
|| || ||
$29,600-($1,200x5yrs)
A. $29,600
||
B. $23,600
||
C. $22,500
||
D. $27,300
||
B. $23,600
||
Susan is a successful plastic surgeon and wants to purchase liability insurance. Her
|| || || || || || || || || || || || ||
husband, a teacher, is part of a risk retention group and is quite happy with his insurance.
|| || || || || || || || || || || || || || || || ||
Susan decides to apply to her husband's group, but her application is denied. This is
|| || || || || || || || || || || || || || ||
because:
A. Susan's business is not similar to that of her husband's
|| || || || || || || || || ||
B. Susan has not owned her own business for more than two years
|| || || || || || || || || || || ||
C. Surgeons cannot be members of a risk retention
|| || || || || || || ||
D. Risk retention groups do not typically provide liability insurance
|| || || || || || || || ||
A. Susan's business is not similar to that of her husband's
|| || || || || || || || || ||
Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house was struck
|| || || || || || || || || || || || || || || || ||
by lightning and the current fried her TV. The TV depreciates at $400 per year and a similar
|| || || || || || || || || || || || || || || || || ||
TV costs $1,200 today. Assuming Roxanne's homeowners policy has a replacement cost
|| || || || || || || || || || || ||
endorsement for personal property, how much can she expect to receive in indemnification
|| || || || || || || || || || || || ||
for her damaged TV?
|| || ||
Replacement Cost= ||
Current Cost-[Original Purchase Cost-(Total Depreciation]
|| || || ||
$1,200-[$2,400-($400x4yrs)]
A. $2,400
||
