NH Adjuster for Property & Casualty Exam with accurate
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detailed solutions ||
Joe's 21-pound cat runs into the neighbor's yard and severely scratches the neighbor's arms
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and face. Which of the following would respond to the neighbor's emergency room bills? -
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correct answer✔✔Joe's homeowners policy under the Personal Liability section
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Bob is purchasing a commercial property policy to cover contents of a building valued at
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$100,000. The policy includes an 80 percent coinsurance clause. To avoid a coinsurance
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penalty in the event of a partial loss, Bob should purchase a policy with minimum limits of
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at least$80,000 - correct answer✔✔$80,000 :: The value of the covered property is ($100,000)
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times 80% = $80,000.
|| || || ||
Which of the following best describes the purpose of the "insuring agreement" contained in
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an insurance policy? - correct answer✔✔To the insurer's promise to pay in case of a loss. ::
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The insuring agreement section of the policy contains the insurer's promise to pay. This is
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the section where the "contractual agreement" is located.
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An insured building suffers a total loss as a result of fire or lightning without criminal fault
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of the insured. The insurance company is required to pay: - correct answer✔✔The building
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limit insured by the policy :: The insurer is required to pay the total limit of the policy on
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the building. ||
Any misinformation provided by an applicant which is such that the insurance company
|| || || || || || || || || || || || ||
would not have issued a policy if the true facts were known is: - correct answer✔✔Material
|| || || || || || || || || || || || || || || ||
Misrepresentation :: || ||
This statement defines material misrepresentation, which is deliberately withholding an
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important fact that would have a bearing on the acceptability and/or pricing of the risk.
|| || || || || || || || || || || || || ||
,The insured has a communication failure at his premises due to a lightning strike at the
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phone company. The insured's phone system is damaged and he is out of business for four
|| || || || || || || || || || || || || || || ||
days. Which endorsement is necessary to provide coverage for the loss of business income -
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correct answer✔✔Utility Services - Time Element :: Utility Services - Time Element
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endorsement would cover the loss of business income in this example if the phone system || || || || || || || || || || || || || || ||
was listed on the endorsement and the cause of the loss was covered by the policy.
|| || || || || || || || || || || || || || ||
Which of the following coverages would apply to a rental car used by an insured executive
|| || || || || || || || || || || || || || || ||
while on vacation? - correct answer✔✔Coverage for Non-Owned Autos :: whether it be a
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rental car or a vehicle belonging to a friend
|| || || || || || || ||
Jim drives Linda's car. Both Jim and Linda have a personal auto policy. Which of the
|| || || || || || || || || || || || || || || ||
following statements is CORRECT concerning coverage if Jim causes an accident? - correct
|| || || || || || || || || || || || ||
answer✔✔The policy Linda owns is primary and the policy Jim owns is excess. :: Insurance || || || || || || || || || || || || || || ||
follows the car. Therefore, Linda's policy would pay first and Jim's policy would be excess.
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An interline endorsement used in a Commercial Package Policy (CPP):
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|| I. May be mandatory or optional.
|| || || || ||
II. Is an endorsement that applies to more than one line of insurance. - correct
|| || || || || || || || || || || || || || || ||
answer✔✔Both I and II :: || || || || ||
Interline endorsements are used in the CPP to simplify coverages and conditions among
|| || || || || || || || || || || || ||
many different forms. Many of the same policy conditions apply to the various coverage
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parts.
Under the definitions section of the CGL policy, the term "your product" does not include: -
|| || || || || || || || || || || || || || || ||
correct answer✔✔Vending machines rented to or located for use by others.. :: A vending
|| || || || || || || || || || || || || ||
machine rented for use by others is not considered to be "your product."
|| || || || || || || || || || || ||
Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally
|| || || || || || || || || || || || || || ||
leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to
|| || || || || || || || || || || || || || || || || ||
, the ground, along with all the contents located inside. Which of the following items would
|| || || || || || || || || || || || || || || ||
be covered under Coverage C of Jack's DP-3 policy? - correct answer✔✔Jack's appliances ::
|| || || || || || || || || || || || || ||
Coverage C is for personal property (contents). Since this is Jack's policy, it will cover his
|| || || || || || || || || || || || || || || ||
appliances but nothing belonging to Tanya (her renters insurance would cover it). The
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damage to the structure would be covered under Coverage A of Jack's policy.
|| || || || || || || || || || || ||
You have a 15 x 28 room with a 10 ft. ceiling. It costs $.50 per square foot to clean and prep
|| || || || || || || || || || || || || || || || || || || || || ||
the room and another $.50 per square foot for painting the room. How much will it cost to
|| || || || || || || || || || || || || || || || || ||
prep and paint the room and ceiling? - correct answer✔✔The room is 15 X 28 with a ceiling
|| || || || || || || || || || || || || || || || || ||
height of 10 feet. The ceiling area is 420 sq. feet The wall area is (2 walls @ 30 feet) and (two
|| || || || || || || || || || || || || || || || || || || || ||
walls @ 56 feet). This is a total of 86 feet times the height of the ceiling which is 10 feet =
|| || || || || || || || || || || || || || || || || || || || || || ||
860 square feet plus the ceiling of 420 equals a total of 1280 square feet. $1.00 times 1280
|| || || || || || || || || || || || || || || || || ||
square feet equals $1,280. || || ||
Which of the following is NOT a claim settlement option in a property loss? - correct
|| || || || || || || || || || || || || || || ||
answer✔✔The correct answer is: Pay market value only.. :: || || || || || || || || ||
Offering market value only is not a claim settlement option. If the insured carries
|| || || || || || || || || || || || || ||
replacement cost coverage then the adjuster needs to address the payment of the claim || || || || || || || || || || || || || ||
accordingly.
If an insured takes precautionary measures to protect property from flood damage such as
|| || || || || || || || || || || || || ||
creating a retaining wall of sand bags, how much coverage if any, will be provided by a flood
|| || || || || || || || || || || || || || || || ||
policy? - correct answer✔✔$1,000 if the flood is imminent and the property is in danger of
|| || || || || || || || || || || || || || || || ||
flooding.:: The policy will provide additional coverage up to $1,000 for preventative
|| || || || || || || || || || || ||
measures taken to prevent the property from an imminent flood loss. This $1,000 however
|| || || || || || || || || || || || || ||
will be subtracted from the policy limit covering any property that may be damaged by the
|| || || || || || || || || || || || || || || ||
imminent flood. ||
Covered auto is car being borrowed for use either , personal or borrowing while car is
|| || || || || || || || || || || || || || || ||
getting serviced or when wrecked in accident. - correct answer✔✔A car being out of gas is
|| || || || || || || || || || || || || || || ||
not a covered auto.
|| || ||
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detailed solutions ||
Joe's 21-pound cat runs into the neighbor's yard and severely scratches the neighbor's arms
|| || || || || || || || || || || || || ||
and face. Which of the following would respond to the neighbor's emergency room bills? -
|| || || || || || || || || || || || || || ||
correct answer✔✔Joe's homeowners policy under the Personal Liability section
|| || || || || || || ||
Bob is purchasing a commercial property policy to cover contents of a building valued at
|| || || || || || || || || || || || || || ||
$100,000. The policy includes an 80 percent coinsurance clause. To avoid a coinsurance
|| || || || || || || || || || || || ||
penalty in the event of a partial loss, Bob should purchase a policy with minimum limits of
|| || || || || || || || || || || || || || || || ||
at least$80,000 - correct answer✔✔$80,000 :: The value of the covered property is ($100,000)
|| || || || || || || || || || || || ||
times 80% = $80,000.
|| || || ||
Which of the following best describes the purpose of the "insuring agreement" contained in
|| || || || || || || || || || || || || ||
an insurance policy? - correct answer✔✔To the insurer's promise to pay in case of a loss. ::
|| || || || || || || || || || || || || || || || ||
The insuring agreement section of the policy contains the insurer's promise to pay. This is
|| || || || || || || || || || || || || || ||
the section where the "contractual agreement" is located.
|| || || || || || ||
An insured building suffers a total loss as a result of fire or lightning without criminal fault
|| || || || || || || || || || || || || || || || ||
of the insured. The insurance company is required to pay: - correct answer✔✔The building
|| || || || || || || || || || || || || ||
limit insured by the policy :: The insurer is required to pay the total limit of the policy on
|| || || || || || || || || || || || || || || || || || ||
the building. ||
Any misinformation provided by an applicant which is such that the insurance company
|| || || || || || || || || || || || ||
would not have issued a policy if the true facts were known is: - correct answer✔✔Material
|| || || || || || || || || || || || || || || ||
Misrepresentation :: || ||
This statement defines material misrepresentation, which is deliberately withholding an
|| || || || || || || || || ||
important fact that would have a bearing on the acceptability and/or pricing of the risk.
|| || || || || || || || || || || || || ||
,The insured has a communication failure at his premises due to a lightning strike at the
|| || || || || || || || || || || || || || || ||
phone company. The insured's phone system is damaged and he is out of business for four
|| || || || || || || || || || || || || || || ||
days. Which endorsement is necessary to provide coverage for the loss of business income -
|| || || || || || || || || || || || || || ||
correct answer✔✔Utility Services - Time Element :: Utility Services - Time Element
|| || || || || || || || || || || ||
endorsement would cover the loss of business income in this example if the phone system || || || || || || || || || || || || || || ||
was listed on the endorsement and the cause of the loss was covered by the policy.
|| || || || || || || || || || || || || || ||
Which of the following coverages would apply to a rental car used by an insured executive
|| || || || || || || || || || || || || || || ||
while on vacation? - correct answer✔✔Coverage for Non-Owned Autos :: whether it be a
|| || || || || || || || || || || || || ||
rental car or a vehicle belonging to a friend
|| || || || || || || ||
Jim drives Linda's car. Both Jim and Linda have a personal auto policy. Which of the
|| || || || || || || || || || || || || || || ||
following statements is CORRECT concerning coverage if Jim causes an accident? - correct
|| || || || || || || || || || || || ||
answer✔✔The policy Linda owns is primary and the policy Jim owns is excess. :: Insurance || || || || || || || || || || || || || || ||
follows the car. Therefore, Linda's policy would pay first and Jim's policy would be excess.
|| || || || || || || || || || || || || ||
An interline endorsement used in a Commercial Package Policy (CPP):
|| || || || || || || || ||
|| I. May be mandatory or optional.
|| || || || ||
II. Is an endorsement that applies to more than one line of insurance. - correct
|| || || || || || || || || || || || || || || ||
answer✔✔Both I and II :: || || || || ||
Interline endorsements are used in the CPP to simplify coverages and conditions among
|| || || || || || || || || || || || ||
many different forms. Many of the same policy conditions apply to the various coverage
|| || || || || || || || || || || || || ||
parts.
Under the definitions section of the CGL policy, the term "your product" does not include: -
|| || || || || || || || || || || || || || || ||
correct answer✔✔Vending machines rented to or located for use by others.. :: A vending
|| || || || || || || || || || || || || ||
machine rented for use by others is not considered to be "your product."
|| || || || || || || || || || || ||
Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally
|| || || || || || || || || || || || || || ||
leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to
|| || || || || || || || || || || || || || || || || ||
, the ground, along with all the contents located inside. Which of the following items would
|| || || || || || || || || || || || || || || ||
be covered under Coverage C of Jack's DP-3 policy? - correct answer✔✔Jack's appliances ::
|| || || || || || || || || || || || || ||
Coverage C is for personal property (contents). Since this is Jack's policy, it will cover his
|| || || || || || || || || || || || || || || ||
appliances but nothing belonging to Tanya (her renters insurance would cover it). The
|| || || || || || || || || || || || ||
damage to the structure would be covered under Coverage A of Jack's policy.
|| || || || || || || || || || || ||
You have a 15 x 28 room with a 10 ft. ceiling. It costs $.50 per square foot to clean and prep
|| || || || || || || || || || || || || || || || || || || || || ||
the room and another $.50 per square foot for painting the room. How much will it cost to
|| || || || || || || || || || || || || || || || || ||
prep and paint the room and ceiling? - correct answer✔✔The room is 15 X 28 with a ceiling
|| || || || || || || || || || || || || || || || || ||
height of 10 feet. The ceiling area is 420 sq. feet The wall area is (2 walls @ 30 feet) and (two
|| || || || || || || || || || || || || || || || || || || || ||
walls @ 56 feet). This is a total of 86 feet times the height of the ceiling which is 10 feet =
|| || || || || || || || || || || || || || || || || || || || || || ||
860 square feet plus the ceiling of 420 equals a total of 1280 square feet. $1.00 times 1280
|| || || || || || || || || || || || || || || || || ||
square feet equals $1,280. || || ||
Which of the following is NOT a claim settlement option in a property loss? - correct
|| || || || || || || || || || || || || || || ||
answer✔✔The correct answer is: Pay market value only.. :: || || || || || || || || ||
Offering market value only is not a claim settlement option. If the insured carries
|| || || || || || || || || || || || || ||
replacement cost coverage then the adjuster needs to address the payment of the claim || || || || || || || || || || || || || ||
accordingly.
If an insured takes precautionary measures to protect property from flood damage such as
|| || || || || || || || || || || || || ||
creating a retaining wall of sand bags, how much coverage if any, will be provided by a flood
|| || || || || || || || || || || || || || || || ||
policy? - correct answer✔✔$1,000 if the flood is imminent and the property is in danger of
|| || || || || || || || || || || || || || || || ||
flooding.:: The policy will provide additional coverage up to $1,000 for preventative
|| || || || || || || || || || || ||
measures taken to prevent the property from an imminent flood loss. This $1,000 however
|| || || || || || || || || || || || || ||
will be subtracted from the policy limit covering any property that may be damaged by the
|| || || || || || || || || || || || || || || ||
imminent flood. ||
Covered auto is car being borrowed for use either , personal or borrowing while car is
|| || || || || || || || || || || || || || || ||
getting serviced or when wrecked in accident. - correct answer✔✔A car being out of gas is
|| || || || || || || || || || || || || || || ||
not a covered auto.
|| || ||
