All Lines Adjuster Exam with 100%
Correct Answers
The insured has filed a claim under the "Business Income Department Properties -
Broad Form" because the primary buyer of products and services from the business has
filed for bankruptcy under this form the primary buyers business would be known as -
ANS-A recipient location
recipient location - ANS-Businesses who support insured by being the primary buyer for
their products
HO-3 (special form) - ANS-covers the dwelling and other structures on a risk-of-direct-
physical loss basis. All direct physical losses are covered except those losses
specifically excluded. Personal property is covered on a named perils basis
HO-5 Comprehensive Form - ANS-provides open perils coverage ("all-risks coverage")
on the dwelling, other structures and personal property.
HO-2 (broad form) - ANS-covers the dwelling, other structures, and personal property
on a named perils basis
HO-4 (contents broad form) - ANS-Only covers a tenant's personal property on a named
perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage
applies to the barn? - ANS-Nothing farm property are not eligible under the dwelling
policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or
wagons owned by the Named Insured, any newly acquired vehicles, and any vehicle
used as a _________. - ANS-Temporary Substitute Auto
The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse. - ANS-Answer: A
, An additional auto acquired during the policy period is considered a covered auto.
However, some restrictions do apply. For example, if the newly acquired auto is in
addition to any vehicle shown on the declarations, it must be insured within 14 days of
the purchase date. If it replaces one of the cars, the insured does not need to add it
during that policy period.
Tori owns a cabin in the Ozark Mountains that she rents to Vincent. Tori has the cabin
covered under a DP-2 policy. One cold evening, Vincent started a large fire in the
cabin's fireplace and left the room to start dinner in the kitchen. Vincent didn't realize
that he forgot to open the chimney flue before starting the fire and by the time he came
back into the living room, it was completely filled with smoke. Vincent immediately
opened the doors and windows to "air-out" the cabin but when the smoke cleared, there
was extensive soot damage to the walls, ceilings and furnishings in the room. Which of
the following statements is true regarding how this claim will be handled? - ANS-The
claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke
damage from a fireplace..
Most aircraft physical damage (hull) policies are settled on a - ANS-Insured value basis
Which of the following losses would NOT be covered by an unendorsed Commercial
Property policy with the special cause of loss form attached? - ANS-Carolyn's Fine Gifts
must shut down for a month to repair flood damage..
Under a standardized NCCI workers' compensation policy, the insurance company will
pay to the insured, as part of any claim, proceeding, or suit defended, all of the following
expenses - ANS-Loss of earnings
Joseph Jones purchased a new car stereo system from Dailey's Auto Enhancements.
Daily's permanently installed the stereo system in the console area of the car, where he
could access it easier while driving than the typical area in the dashboard. The cost of
the new system, disregarding any installation costs, was $2,000. One year after
installation, Joseph's car was broken into and the stereo was stolen. At this point, the
ACV of the system had fallen to $1,700. Disregarding any deductible, how much will
Joseph's policy pay on this claim? - ANS-Part D of the Personal Auto policy provides for
a limit of $1,000 for electronic equipment that reproduces, receives or transmits audio,
visual or data signals that is permanently installed in an auto, but not in the location
typically used by the auto manufacturer.
Indemnify Insurance has been using a specific ISO Homeowners forms for several
years in all the states where they are an admitted insurer. Indemnify Insurance has
recently been admitted to an additional state, but the laws of that state contradict a few
of the provisions in the ISO form. How is this situation likely to be handled? - ANS-A
statutory form will be drawn up and attached to each Homeowners policy Indemnify
Insurance writes in the state..
Correct Answers
The insured has filed a claim under the "Business Income Department Properties -
Broad Form" because the primary buyer of products and services from the business has
filed for bankruptcy under this form the primary buyers business would be known as -
ANS-A recipient location
recipient location - ANS-Businesses who support insured by being the primary buyer for
their products
HO-3 (special form) - ANS-covers the dwelling and other structures on a risk-of-direct-
physical loss basis. All direct physical losses are covered except those losses
specifically excluded. Personal property is covered on a named perils basis
HO-5 Comprehensive Form - ANS-provides open perils coverage ("all-risks coverage")
on the dwelling, other structures and personal property.
HO-2 (broad form) - ANS-covers the dwelling, other structures, and personal property
on a named perils basis
HO-4 (contents broad form) - ANS-Only covers a tenant's personal property on a named
perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage
applies to the barn? - ANS-Nothing farm property are not eligible under the dwelling
policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or
wagons owned by the Named Insured, any newly acquired vehicles, and any vehicle
used as a _________. - ANS-Temporary Substitute Auto
The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse. - ANS-Answer: A
, An additional auto acquired during the policy period is considered a covered auto.
However, some restrictions do apply. For example, if the newly acquired auto is in
addition to any vehicle shown on the declarations, it must be insured within 14 days of
the purchase date. If it replaces one of the cars, the insured does not need to add it
during that policy period.
Tori owns a cabin in the Ozark Mountains that she rents to Vincent. Tori has the cabin
covered under a DP-2 policy. One cold evening, Vincent started a large fire in the
cabin's fireplace and left the room to start dinner in the kitchen. Vincent didn't realize
that he forgot to open the chimney flue before starting the fire and by the time he came
back into the living room, it was completely filled with smoke. Vincent immediately
opened the doors and windows to "air-out" the cabin but when the smoke cleared, there
was extensive soot damage to the walls, ceilings and furnishings in the room. Which of
the following statements is true regarding how this claim will be handled? - ANS-The
claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke
damage from a fireplace..
Most aircraft physical damage (hull) policies are settled on a - ANS-Insured value basis
Which of the following losses would NOT be covered by an unendorsed Commercial
Property policy with the special cause of loss form attached? - ANS-Carolyn's Fine Gifts
must shut down for a month to repair flood damage..
Under a standardized NCCI workers' compensation policy, the insurance company will
pay to the insured, as part of any claim, proceeding, or suit defended, all of the following
expenses - ANS-Loss of earnings
Joseph Jones purchased a new car stereo system from Dailey's Auto Enhancements.
Daily's permanently installed the stereo system in the console area of the car, where he
could access it easier while driving than the typical area in the dashboard. The cost of
the new system, disregarding any installation costs, was $2,000. One year after
installation, Joseph's car was broken into and the stereo was stolen. At this point, the
ACV of the system had fallen to $1,700. Disregarding any deductible, how much will
Joseph's policy pay on this claim? - ANS-Part D of the Personal Auto policy provides for
a limit of $1,000 for electronic equipment that reproduces, receives or transmits audio,
visual or data signals that is permanently installed in an auto, but not in the location
typically used by the auto manufacturer.
Indemnify Insurance has been using a specific ISO Homeowners forms for several
years in all the states where they are an admitted insurer. Indemnify Insurance has
recently been admitted to an additional state, but the laws of that state contradict a few
of the provisions in the ISO form. How is this situation likely to be handled? - ANS-A
statutory form will be drawn up and attached to each Homeowners policy Indemnify
Insurance writes in the state..
