Louisiana Adjuster Questions And
Answers With Verified Solutions
Already Passed Latest Updated
1. The coverage territory of the Business Auto form provides for "worldwide
liability coverage" for private passenger autos that the insured:
• Answer: ✔✔ Hires, leases, rents or borrows without a driver while outside
the United States, its territories and possessions.
2. Which of the following dwelling types would be eligible for the Limited
Theft coverage endorsement to their Dwelling policy?
• Answer: ✔✔ A nonowner-occupied one-family dwelling.
3. Which of the following shows a correct sequence of activities for an adjuster
when negotiating a claim?
• Answer: ✔✔ Acknowledging the claim, then opening a line of
communication with the insured or claimant.
4. A slippery floor is an example of:
• Answer: ✔✔ A physical hazard.
5. An insured suffers a partial fire loss to his residence. Under an HO-3 policy
what insuring agreement is available to pay for temporary, alternate living
quarters?
• Answer: ✔✔ Coverage D.
,6. Which of the following is the BEST explanation as to the reason insurance
policies are called "unilateral contracts"?
• Answer: ✔✔ Because the insurance company is the only party to the
contract that can be sued if they do not meet the terms.
7. Which of the following terms means "liability through another person"?
• Answer: ✔✔ Vicarious/Imputed liability.
8. All of the following are duties of the insured after a loss, EXCEPT:
• Answer Choices:
a) Promptly hiring a public adjuster to assist in presenting the claim to the
insurance company.
b) Promptly reporting the loss to the insurer.
c) Cooperating with the insurer in the investigation of the claim by providing
the information requested by the adjuster.
d) Submitting to an examination under oath (EUO) if requested by the
insurer.
• Answer: ✔✔ Promptly hiring a public adjuster to assist in presenting the
claim to the insurance company.
9. The "liberalization clause" of an insurance policy:
• Answer Choices:
a) States that if an insurer decides to broaden its standard policy coverages,
then all outstanding policies issued prior to that decision will automatically
receive those new coverages at no additional premium.
b) States that the insurer retains the right to suspend or cancel the policy at
any time during the policy period.
c) States that if a mortgage company liberalizes its loan agreement with the
named insured, the insurer must be sent the revised wording within 60 days.
d) States that if the insurer broadens its underwriting eligibility
, requirements, all previously denied applicants must be notified within 60
days.
• Answer: ✔✔ States that if an insurer decides to broaden its standard policy
coverages, then all outstanding policies issued prior to that decision will
automatically receive those new coverages at no additional premium.
10. When an insurer files a declaratory judgement action with a court of law,
all of the following questions will be resolved by the court, EXCEPT:
• Answer Choices:
A) Will the insurer become insolvent if they pay the claim as submitted by
the insured?
B) Does the insuring agreement within the policy actually provide coverage
for the loss claimed?
C) Is there another insurance policy that would be liable to pay part of the
claim?
D) Has the insured violated any policy condition that would void the
coverage provided by the policy?
• Answer: ✔✔ Will the insurer become insolvent if they pay the claim as
submitted by the insured?
Declaratory judgement actions are filed to seek judicial determination of the
insurer's rights and obligations as indicated by the policy provisions, conditions,
definitions, exclusions, etc. The court would not make a determination regarding
the solvency of the insurance company because the purpose of the action is only to
answer questions as to whether coverage applies, not if the insurer can actually pay
the claim.
The Louisiana Commissioner of Insurance may place on probation, suspend,
revoke, or refuse to issue, renew or reinstate a claims adjuster's license or may levy
a fine not to exceed for each violation. - ANSWER✔✔ $10,000.
, Meg has been in very good health in the past 3 years. She has been exercising, her
blood pressure is at a perfect level and her cholesterol is the envy of all her friends.
Because Meg is feeling so healthy, she decides to cancel her health insurance
policy. This is an example of which of the following risk management methods? -
ANSWER✔✔ Risk retention
Emily is an adjuster for Indemnify Insurance and she has been assigned to a first-
party claim that was submitted by Harvey. Emily has set up several meetings with
Harvey to obtain documents and records relevant to the claim investigation but
Harvey has not shown up. Emily has also placed many phone calls to Harvey that
he has not answered, nor has he returned the calls when Emily has left a message
for him to do so. Which of the following statements is TRUE regarding how this
claim will be concluded? - ANSWER✔✔ The insurance company has legitimate
grounds to deny the claim based on Harvey's breach of duty to cooperate in the
investigation of the claim.
Which of the following CGL forms would pay for bodily injury or property
damage liability that occurs during the policy period, but a claim for the
occurrence is not submitted until after the policy has expired? - ANSWER✔✔ The
occurrence form..
A type of insurance that permits an insured to collect from his/her own insurance
company, without proving the negligence of a third-party, is known as: -
ANSWER✔✔ No-fault.
A person becomes legally liable by: - ANSWER✔✔ Committing a tort
A tort is a civil wrong that violates the rights of others. A person becomes legally
liable by committing a tort. Generally, a court of law must determine legal liability.
Answers With Verified Solutions
Already Passed Latest Updated
1. The coverage territory of the Business Auto form provides for "worldwide
liability coverage" for private passenger autos that the insured:
• Answer: ✔✔ Hires, leases, rents or borrows without a driver while outside
the United States, its territories and possessions.
2. Which of the following dwelling types would be eligible for the Limited
Theft coverage endorsement to their Dwelling policy?
• Answer: ✔✔ A nonowner-occupied one-family dwelling.
3. Which of the following shows a correct sequence of activities for an adjuster
when negotiating a claim?
• Answer: ✔✔ Acknowledging the claim, then opening a line of
communication with the insured or claimant.
4. A slippery floor is an example of:
• Answer: ✔✔ A physical hazard.
5. An insured suffers a partial fire loss to his residence. Under an HO-3 policy
what insuring agreement is available to pay for temporary, alternate living
quarters?
• Answer: ✔✔ Coverage D.
,6. Which of the following is the BEST explanation as to the reason insurance
policies are called "unilateral contracts"?
• Answer: ✔✔ Because the insurance company is the only party to the
contract that can be sued if they do not meet the terms.
7. Which of the following terms means "liability through another person"?
• Answer: ✔✔ Vicarious/Imputed liability.
8. All of the following are duties of the insured after a loss, EXCEPT:
• Answer Choices:
a) Promptly hiring a public adjuster to assist in presenting the claim to the
insurance company.
b) Promptly reporting the loss to the insurer.
c) Cooperating with the insurer in the investigation of the claim by providing
the information requested by the adjuster.
d) Submitting to an examination under oath (EUO) if requested by the
insurer.
• Answer: ✔✔ Promptly hiring a public adjuster to assist in presenting the
claim to the insurance company.
9. The "liberalization clause" of an insurance policy:
• Answer Choices:
a) States that if an insurer decides to broaden its standard policy coverages,
then all outstanding policies issued prior to that decision will automatically
receive those new coverages at no additional premium.
b) States that the insurer retains the right to suspend or cancel the policy at
any time during the policy period.
c) States that if a mortgage company liberalizes its loan agreement with the
named insured, the insurer must be sent the revised wording within 60 days.
d) States that if the insurer broadens its underwriting eligibility
, requirements, all previously denied applicants must be notified within 60
days.
• Answer: ✔✔ States that if an insurer decides to broaden its standard policy
coverages, then all outstanding policies issued prior to that decision will
automatically receive those new coverages at no additional premium.
10. When an insurer files a declaratory judgement action with a court of law,
all of the following questions will be resolved by the court, EXCEPT:
• Answer Choices:
A) Will the insurer become insolvent if they pay the claim as submitted by
the insured?
B) Does the insuring agreement within the policy actually provide coverage
for the loss claimed?
C) Is there another insurance policy that would be liable to pay part of the
claim?
D) Has the insured violated any policy condition that would void the
coverage provided by the policy?
• Answer: ✔✔ Will the insurer become insolvent if they pay the claim as
submitted by the insured?
Declaratory judgement actions are filed to seek judicial determination of the
insurer's rights and obligations as indicated by the policy provisions, conditions,
definitions, exclusions, etc. The court would not make a determination regarding
the solvency of the insurance company because the purpose of the action is only to
answer questions as to whether coverage applies, not if the insurer can actually pay
the claim.
The Louisiana Commissioner of Insurance may place on probation, suspend,
revoke, or refuse to issue, renew or reinstate a claims adjuster's license or may levy
a fine not to exceed for each violation. - ANSWER✔✔ $10,000.
, Meg has been in very good health in the past 3 years. She has been exercising, her
blood pressure is at a perfect level and her cholesterol is the envy of all her friends.
Because Meg is feeling so healthy, she decides to cancel her health insurance
policy. This is an example of which of the following risk management methods? -
ANSWER✔✔ Risk retention
Emily is an adjuster for Indemnify Insurance and she has been assigned to a first-
party claim that was submitted by Harvey. Emily has set up several meetings with
Harvey to obtain documents and records relevant to the claim investigation but
Harvey has not shown up. Emily has also placed many phone calls to Harvey that
he has not answered, nor has he returned the calls when Emily has left a message
for him to do so. Which of the following statements is TRUE regarding how this
claim will be concluded? - ANSWER✔✔ The insurance company has legitimate
grounds to deny the claim based on Harvey's breach of duty to cooperate in the
investigation of the claim.
Which of the following CGL forms would pay for bodily injury or property
damage liability that occurs during the policy period, but a claim for the
occurrence is not submitted until after the policy has expired? - ANSWER✔✔ The
occurrence form..
A type of insurance that permits an insured to collect from his/her own insurance
company, without proving the negligence of a third-party, is known as: -
ANSWER✔✔ No-fault.
A person becomes legally liable by: - ANSWER✔✔ Committing a tort
A tort is a civil wrong that violates the rights of others. A person becomes legally
liable by committing a tort. Generally, a court of law must determine legal liability.
