CT Adjuster Exam Practice Questions
With Complete Solutions
Riley's coupe is insured with a personal auto policy that
includes liability, uninsured motorists, and other-than-
collission coverages. He buys a new sedan and wants
collission coverage on it. Which statement is true about this
coverage? - Correct Answers ✅He must notify the insurer
about the newly acquired sedan within four days.
Because Riley's coupe does not have collission coverage, he
must report the newly acquired sedan to his insurer within
four days of its acquisition to get collision coverage for it.
Dairy products in Bette's ice cream shop would be destroyed
if her freezers failed for more than a few hours. So Bette
added the utility services-direct damage endorsement,
scheduling overhead transmission lines, to her
businessowners policy. When the shop losses electrical power
due to a mechanical breakdown of the utility company's
equipment: - Correct Answers ✅Bette's loss will not be
covered because mechanical breakdown is not a covered
peril
For coverage to apply, the service interruption must result
from damage to utility company property caused by a
covered cause of loss. Mechanical breakdown is not a
covered peril.
An imposter pretends to be Barbara, the president of a
succesful company, while engaging in scandalous activities.
,CT Adjuster Exam Practice Questions
With Complete Solutions
These activities attract media attention and threaten the
firm's reputation. So Barbara spends $5,000 on
advertisements to preserve this reputation. How will
Barbara's businessowners policy address this expense? -
Correct Answers ✅it covers this expense if the identity
fraud expense coverage endorsement is attached.
The identity fraud expense coverage endorsement adds a
$5,000 limit for advertising expenses to restore a business
reputation.
Maurice's personal auto policy (PAP) on the family car lists
him as the named insured. His wife, Sondra, is involved in an
accident while using the car as a charity organization
volunteer. The injured paties sue Maurice, Sondra, and the
charity organization. Which is insured under the policy's
liability coverage? - Correct Answers ✅Maurice, Sondra,
and the Charity Organization
Sondra is a named insured by virtue of her marriage to
Maurice, who is named in the policy. Charity Orgranization is
an insured because it may be held liable for an insured's use
of the named insured's covered auto.
Jeffrey has violated a cease and desist order of the
Commissioner. After notice and hearing, what is the
maximum amount he may be fined? - Correct Answers
✅$50,000 for each violation
, CT Adjuster Exam Practice Questions
With Complete Solutions
An individual who violates a cease and desist order of the
Commissioner may be fined up to $50,000 dollars for each
violation or may have his or her license suspended or
revoked.
What does an insurance company require from an insured
before it will determine whether the policy covers a loss? -
Correct Answers ✅Proof of Loss Statement
An insured's proof of loss statement is required by an
insurance company before it will determine whether the
policy covers the loss.
Which of the following provides an insurance company with a
fairly accurate means of determining the likelihood of a
particular event occurring? - Correct Answers ✅The law of
large numbers
Because it is based on a large number of independent
occurences of a simlar nature, the law of large numbers
allows insurers to determine the probability that actual losses
will equal expected losses.
Claudette's home is flooded. Assuming her homeowners
policy would cover at least part of the damage, she submits a
claim. In verifying coverage, Ira-the adjuster assigned to
With Complete Solutions
Riley's coupe is insured with a personal auto policy that
includes liability, uninsured motorists, and other-than-
collission coverages. He buys a new sedan and wants
collission coverage on it. Which statement is true about this
coverage? - Correct Answers ✅He must notify the insurer
about the newly acquired sedan within four days.
Because Riley's coupe does not have collission coverage, he
must report the newly acquired sedan to his insurer within
four days of its acquisition to get collision coverage for it.
Dairy products in Bette's ice cream shop would be destroyed
if her freezers failed for more than a few hours. So Bette
added the utility services-direct damage endorsement,
scheduling overhead transmission lines, to her
businessowners policy. When the shop losses electrical power
due to a mechanical breakdown of the utility company's
equipment: - Correct Answers ✅Bette's loss will not be
covered because mechanical breakdown is not a covered
peril
For coverage to apply, the service interruption must result
from damage to utility company property caused by a
covered cause of loss. Mechanical breakdown is not a
covered peril.
An imposter pretends to be Barbara, the president of a
succesful company, while engaging in scandalous activities.
,CT Adjuster Exam Practice Questions
With Complete Solutions
These activities attract media attention and threaten the
firm's reputation. So Barbara spends $5,000 on
advertisements to preserve this reputation. How will
Barbara's businessowners policy address this expense? -
Correct Answers ✅it covers this expense if the identity
fraud expense coverage endorsement is attached.
The identity fraud expense coverage endorsement adds a
$5,000 limit for advertising expenses to restore a business
reputation.
Maurice's personal auto policy (PAP) on the family car lists
him as the named insured. His wife, Sondra, is involved in an
accident while using the car as a charity organization
volunteer. The injured paties sue Maurice, Sondra, and the
charity organization. Which is insured under the policy's
liability coverage? - Correct Answers ✅Maurice, Sondra,
and the Charity Organization
Sondra is a named insured by virtue of her marriage to
Maurice, who is named in the policy. Charity Orgranization is
an insured because it may be held liable for an insured's use
of the named insured's covered auto.
Jeffrey has violated a cease and desist order of the
Commissioner. After notice and hearing, what is the
maximum amount he may be fined? - Correct Answers
✅$50,000 for each violation
, CT Adjuster Exam Practice Questions
With Complete Solutions
An individual who violates a cease and desist order of the
Commissioner may be fined up to $50,000 dollars for each
violation or may have his or her license suspended or
revoked.
What does an insurance company require from an insured
before it will determine whether the policy covers a loss? -
Correct Answers ✅Proof of Loss Statement
An insured's proof of loss statement is required by an
insurance company before it will determine whether the
policy covers the loss.
Which of the following provides an insurance company with a
fairly accurate means of determining the likelihood of a
particular event occurring? - Correct Answers ✅The law of
large numbers
Because it is based on a large number of independent
occurences of a simlar nature, the law of large numbers
allows insurers to determine the probability that actual losses
will equal expected losses.
Claudette's home is flooded. Assuming her homeowners
policy would cover at least part of the damage, she submits a
claim. In verifying coverage, Ira-the adjuster assigned to
