Alabama Adjuster
An auto claim that can be settled with repairs is considered discharged when the claim
is paid directly to the repair shop.Janice was in the parking lot when Stanley crashed
into her car. Stanley said that he will take care of the damages but Janice did not hear
from him or his insurance company. After paying for the collision repair, Janice's
insurance company pursued a claim against Stanley. Janice's insurance company has
the right to collect the amount paid to the insured based on the insurance principle
of______________ - Answers -subrogation
2. Arnie has complained to your insurance company that the settlement for his auto
claim was paid directly to the repair company rather than through him. What will you tell
him? - Answers -An auto claim that can be settled with repairs is considered discharged
when the claim is paid directly to the repair shop.
3. Different claims records require different levels of organization and precision,
but____________ records require the most accurate, detailed and organized
presentation. - Answers -full formal
4. While looking over a loan notification, Dan the Adjuster became suspicious because
of one item. What would be most likely to raise concerns? - Answers -The notice of loss
was suspiciously late.
5. You are a claim adjuster ready to collect witness statements. Which of following is an
acceptable form of statement from relevant witness? - Answers -An audio recording of a
witness statement accompanied by a signed authorization form.
6. Andy Adjuster is given a file for a new claim. The first thing he will do is? - Answers -
read the policy to determine if the claim is covered.
7. Buena Vista Insurance Company is incorporated in Mexico, with its main offices in
Mexico City. Buena Vista would be considered a(n)____________company in any U. S.
state. - Answers -alien
8. Which type company closely resembles Mutual Companies in their organization and
operation? - Answers -Fraternal Benefit Societies
9. The Law of Large Numbers refers to - Answers -a mathematical principle, which
states the larger the number of exposures, the closer the actual results will come to
equalizing the expected outcome.
10. The kind of risk only allows you to lose and you cannot win is: - Answers -Pure Risk
, 11. The Standard Fire policy is structured with blank sections - Answers -Four
12. At the time of the covered property loss, the insurance company must do which of
the following? - Answers -Whichever method described above the company chooses
13. The following statements about policy provisions that change coverage are true,
except, - Answers -Additional Coverages. They can add dollar value or give back limited
coverage by removing an exclusion
14. Personal property that cost John $6,000 was stolen during a home theft.
Depreciation on the property since he purchased it is $3,500. Today, the same property
would cost $7,500 to replace. What will be John's settlement on an Actual Cash Value
basis? - Answers -$4,000
15. When applying for an insurance policy, Wilma suddenly asked her insurance agent,
"How do you know you can trust me on these answers?" The agent replied, "Some
answers we can verify, but you and I have a responsibility of trust to each other." This is
called the - Answers -Doctrine of Utmost Good Faith.
16. Don buys a Homeowners policy to cover his home. Six months into the policy, he
sold his house to Jack. He told Jack not to worry about buying a Homeowner's policy
since the home has six months left on the policy Don bought. Don was wrong because
an insurance policy is a/an - Answers -personal contract
17. To be legally enforceable, a contract must contain all of the following essential
elements EXCEPT: - Answers -equal terms
18. An insurance policy is a contract in which the number of dollars given up by each
party is unequal. The policy holder pays a premium and may collect zero from the
insurer or may collect the great deal more than the amount paid in premiums when a
loss occurs. This is called - Answers -aleatory contract.
19. Besides gaining time for gathering information to consider a claim, what is the top
reason for issuing a reservation of rights letter and/or a nonwaiver agreement? -
Answers -To protect the insurance company against claims not covered under the
policy.
20. The burden is on the_______ to see if special requirements of the policy apply to a
claim. - Answers -Adjuster
21. As a landlord, Susan wants the dwelling policy that provides the best coverage.
Which DP form should she use? - Answers -DP-3
22. Under the Terrorism Risk Insurance Program (TRIP), every policy owner of a Fire
Insurance policy or anotherP & C policy, is required to - Answers -accept or reject
coverage for losses related to terrorism.
An auto claim that can be settled with repairs is considered discharged when the claim
is paid directly to the repair shop.Janice was in the parking lot when Stanley crashed
into her car. Stanley said that he will take care of the damages but Janice did not hear
from him or his insurance company. After paying for the collision repair, Janice's
insurance company pursued a claim against Stanley. Janice's insurance company has
the right to collect the amount paid to the insured based on the insurance principle
of______________ - Answers -subrogation
2. Arnie has complained to your insurance company that the settlement for his auto
claim was paid directly to the repair company rather than through him. What will you tell
him? - Answers -An auto claim that can be settled with repairs is considered discharged
when the claim is paid directly to the repair shop.
3. Different claims records require different levels of organization and precision,
but____________ records require the most accurate, detailed and organized
presentation. - Answers -full formal
4. While looking over a loan notification, Dan the Adjuster became suspicious because
of one item. What would be most likely to raise concerns? - Answers -The notice of loss
was suspiciously late.
5. You are a claim adjuster ready to collect witness statements. Which of following is an
acceptable form of statement from relevant witness? - Answers -An audio recording of a
witness statement accompanied by a signed authorization form.
6. Andy Adjuster is given a file for a new claim. The first thing he will do is? - Answers -
read the policy to determine if the claim is covered.
7. Buena Vista Insurance Company is incorporated in Mexico, with its main offices in
Mexico City. Buena Vista would be considered a(n)____________company in any U. S.
state. - Answers -alien
8. Which type company closely resembles Mutual Companies in their organization and
operation? - Answers -Fraternal Benefit Societies
9. The Law of Large Numbers refers to - Answers -a mathematical principle, which
states the larger the number of exposures, the closer the actual results will come to
equalizing the expected outcome.
10. The kind of risk only allows you to lose and you cannot win is: - Answers -Pure Risk
, 11. The Standard Fire policy is structured with blank sections - Answers -Four
12. At the time of the covered property loss, the insurance company must do which of
the following? - Answers -Whichever method described above the company chooses
13. The following statements about policy provisions that change coverage are true,
except, - Answers -Additional Coverages. They can add dollar value or give back limited
coverage by removing an exclusion
14. Personal property that cost John $6,000 was stolen during a home theft.
Depreciation on the property since he purchased it is $3,500. Today, the same property
would cost $7,500 to replace. What will be John's settlement on an Actual Cash Value
basis? - Answers -$4,000
15. When applying for an insurance policy, Wilma suddenly asked her insurance agent,
"How do you know you can trust me on these answers?" The agent replied, "Some
answers we can verify, but you and I have a responsibility of trust to each other." This is
called the - Answers -Doctrine of Utmost Good Faith.
16. Don buys a Homeowners policy to cover his home. Six months into the policy, he
sold his house to Jack. He told Jack not to worry about buying a Homeowner's policy
since the home has six months left on the policy Don bought. Don was wrong because
an insurance policy is a/an - Answers -personal contract
17. To be legally enforceable, a contract must contain all of the following essential
elements EXCEPT: - Answers -equal terms
18. An insurance policy is a contract in which the number of dollars given up by each
party is unequal. The policy holder pays a premium and may collect zero from the
insurer or may collect the great deal more than the amount paid in premiums when a
loss occurs. This is called - Answers -aleatory contract.
19. Besides gaining time for gathering information to consider a claim, what is the top
reason for issuing a reservation of rights letter and/or a nonwaiver agreement? -
Answers -To protect the insurance company against claims not covered under the
policy.
20. The burden is on the_______ to see if special requirements of the policy apply to a
claim. - Answers -Adjuster
21. As a landlord, Susan wants the dwelling policy that provides the best coverage.
Which DP form should she use? - Answers -DP-3
22. Under the Terrorism Risk Insurance Program (TRIP), every policy owner of a Fire
Insurance policy or anotherP & C policy, is required to - Answers -accept or reject
coverage for losses related to terrorism.
