ADJUSTER PRO- INSURANCE ADJUSTER TEST REAL
EXAM 250+ QUESTIONS AND CORRECT ANSWERS|
AGRADE
Common law is based upon - ANSWER: court decisions and customs.
cause of loss or damage - ANSWER: peril
Jim owns a home valued at $187,500, but he only has a $100,000 homeowner's
policy and is underinsured. During a storm, lightning strikes Jim's home causing
$45,000 in damages. The insurer decides to invoke a coinsurance penalty. How much
will Jim be required to pay for the penalty? - ANSWER: The coinsurance requirement
of 80% means that Jim should have maintained a minimum policy of $150,000 in
coverage. Instead, Jim maintained a $100,000 policy, under-insuring himself by a
third. When the insurer invokes the coinsurance penalty, Jim is then responsible for
a third of the damages, which in this case totaled $45,000. So, Jim must pay $15,000.
In the context of insurance adjusting, who is the principal? - ANSWER: The source of
the adjuster's authority
What document do insurance companies give to claimants when they think
something in the claim is not covered by the policy, but they are not sure yet? -
ANSWER: Reservation of Rights letter
Which of the following is NOT a reason why an adjuster would collect written or
recorded witness statements during a claim investigation?
A. To fully comply with the Conditions section of the insurance policy
B. To dispute an account provided by the claimant or another witness
C. To impeach a witness's credibility if he changes his story when the claim goes to
court
D. To expose data that may have been overlooked in the claim handling process -
ANSWER: A. To fully comply with the Conditions section of the insurance policy
Nichole's car was damaged while it was being serviced at Don's Auto Shop. Nichole's
auto insurance policy covers physical damage to her vehicle, but it will not cover the
damage that occurred while the vehicle was under the control of Don's Auto Shop.
Which provision in her policy states this?
A. Control of Property
B. No Benefit to Bailee
,C. Assignment
D. Severability of Interests - ANSWER: B. No Benefit to Bailee
Which of the following would NOT fall under the definition of "Residence Premises"
in Shannon's homeowners policy?
A. The beach house that Shannon and her family rent for a weekend getaway each
month
B. Shannon's detached 4-car garage
C. The two-bedroom house that Shannon owns in town, which she rents out to four
college students
D. The vacant lot that Shannon owns, located right next to her own house - ANSWER:
C. The two-bedroom house that Shannon owns in town, which she rents out to four
college students
With a ____ deductible, the policyholder only pays for damages that are less than his
deductible. If the cost of damages equals or exceeds his deductible, the insurer pays
the full amount and the policyholder pays nothing. - ANSWER: franchise
Which of the following does NOT apply to Tort Law?
A. The state charges the defendant
B. Only a simple majority is required to reward the claimant for damages
C. Tort law applies only to civil trials
D. The defendant is called the tortfeasor - ANSWER: A. The state charges the
defendant
Quincy is in court attempting to convince the jury through a preponderance of
evidence that his insurer is deliberately withholding his rightful indemnification for
his property claim. In which type of legal proceeding are Quincy and his insurer
currently involved?
A. Criminal trial
B. Civil trial
C. Contributory negligence hearing
D. Comparative negligence hearing - ANSWER: B. Civil trial
, XYZ Trucking Company has a franchise deductible policy with a deductible of
$100,000. When a tornado rips through their lot, the company sustains $965,000 in
damage. How much of the damage will XYZ Trucking Company be responsible for
paying?
A. $0
B. $965,000
C. $100,000
D. $865,000 - ANSWER: A. $0
HO-6 covers what? - ANSWER: the finished surfaces of the insured's unit, but not the
overall building, since this is owned collectively.
What is the best reference for reconstructing the details of a claim?
A. The claimant
B. An eyewitness
C. The claim file
D. The insured who was present - ANSWER: C. The claim file
In _______court, the government (usually referred to as "the State") prosecutes a
person for breaking the law, with the possibility of punishment like jail time or a fine.
- ANSWER: criminal
In ______court, one party files a lawsuit against another, asking for money or for a
court order against the other party. - ANSWER: civil
HO-4 only covers _______ - ANSWER: a renter's personal property, not the structure
Terry is renting half of a duplex. During a severe storm, lightning strikes a tree in the
front yard and causes a large portion of the tree to fall on Terry's side of the duplex.
Which of the following losses will be covered by Terry's Homeowners 4 policy?
A. Removal of the tree and debris will cost hundreds of dollars.
B. Terry's roof and front wall were damaged when the tree fell on the house.
C. Terry's TV and entertainment system were damaged when the tree fell through
the roof.
EXAM 250+ QUESTIONS AND CORRECT ANSWERS|
AGRADE
Common law is based upon - ANSWER: court decisions and customs.
cause of loss or damage - ANSWER: peril
Jim owns a home valued at $187,500, but he only has a $100,000 homeowner's
policy and is underinsured. During a storm, lightning strikes Jim's home causing
$45,000 in damages. The insurer decides to invoke a coinsurance penalty. How much
will Jim be required to pay for the penalty? - ANSWER: The coinsurance requirement
of 80% means that Jim should have maintained a minimum policy of $150,000 in
coverage. Instead, Jim maintained a $100,000 policy, under-insuring himself by a
third. When the insurer invokes the coinsurance penalty, Jim is then responsible for
a third of the damages, which in this case totaled $45,000. So, Jim must pay $15,000.
In the context of insurance adjusting, who is the principal? - ANSWER: The source of
the adjuster's authority
What document do insurance companies give to claimants when they think
something in the claim is not covered by the policy, but they are not sure yet? -
ANSWER: Reservation of Rights letter
Which of the following is NOT a reason why an adjuster would collect written or
recorded witness statements during a claim investigation?
A. To fully comply with the Conditions section of the insurance policy
B. To dispute an account provided by the claimant or another witness
C. To impeach a witness's credibility if he changes his story when the claim goes to
court
D. To expose data that may have been overlooked in the claim handling process -
ANSWER: A. To fully comply with the Conditions section of the insurance policy
Nichole's car was damaged while it was being serviced at Don's Auto Shop. Nichole's
auto insurance policy covers physical damage to her vehicle, but it will not cover the
damage that occurred while the vehicle was under the control of Don's Auto Shop.
Which provision in her policy states this?
A. Control of Property
B. No Benefit to Bailee
,C. Assignment
D. Severability of Interests - ANSWER: B. No Benefit to Bailee
Which of the following would NOT fall under the definition of "Residence Premises"
in Shannon's homeowners policy?
A. The beach house that Shannon and her family rent for a weekend getaway each
month
B. Shannon's detached 4-car garage
C. The two-bedroom house that Shannon owns in town, which she rents out to four
college students
D. The vacant lot that Shannon owns, located right next to her own house - ANSWER:
C. The two-bedroom house that Shannon owns in town, which she rents out to four
college students
With a ____ deductible, the policyholder only pays for damages that are less than his
deductible. If the cost of damages equals or exceeds his deductible, the insurer pays
the full amount and the policyholder pays nothing. - ANSWER: franchise
Which of the following does NOT apply to Tort Law?
A. The state charges the defendant
B. Only a simple majority is required to reward the claimant for damages
C. Tort law applies only to civil trials
D. The defendant is called the tortfeasor - ANSWER: A. The state charges the
defendant
Quincy is in court attempting to convince the jury through a preponderance of
evidence that his insurer is deliberately withholding his rightful indemnification for
his property claim. In which type of legal proceeding are Quincy and his insurer
currently involved?
A. Criminal trial
B. Civil trial
C. Contributory negligence hearing
D. Comparative negligence hearing - ANSWER: B. Civil trial
, XYZ Trucking Company has a franchise deductible policy with a deductible of
$100,000. When a tornado rips through their lot, the company sustains $965,000 in
damage. How much of the damage will XYZ Trucking Company be responsible for
paying?
A. $0
B. $965,000
C. $100,000
D. $865,000 - ANSWER: A. $0
HO-6 covers what? - ANSWER: the finished surfaces of the insured's unit, but not the
overall building, since this is owned collectively.
What is the best reference for reconstructing the details of a claim?
A. The claimant
B. An eyewitness
C. The claim file
D. The insured who was present - ANSWER: C. The claim file
In _______court, the government (usually referred to as "the State") prosecutes a
person for breaking the law, with the possibility of punishment like jail time or a fine.
- ANSWER: criminal
In ______court, one party files a lawsuit against another, asking for money or for a
court order against the other party. - ANSWER: civil
HO-4 only covers _______ - ANSWER: a renter's personal property, not the structure
Terry is renting half of a duplex. During a severe storm, lightning strikes a tree in the
front yard and causes a large portion of the tree to fall on Terry's side of the duplex.
Which of the following losses will be covered by Terry's Homeowners 4 policy?
A. Removal of the tree and debris will cost hundreds of dollars.
B. Terry's roof and front wall were damaged when the tree fell on the house.
C. Terry's TV and entertainment system were damaged when the tree fell through
the roof.
