All Lines Adjuster Exam with 100% Correct Answers
2024/2025
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 -
Answer-A recipient location
/.recipient location - Answer-Businesses who support insured by being the primary
buyer for their products
/.HO-3 (special form) - Answer-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 - Answer-provides open perils coverage ("all-risks
coverage") on the dwelling, other structures and personal property.
/.HO-2 (broad form) - Answer-covers the dwelling, other structures, and personal
property on a named perils basis
/.HO-4 (contents broad form) - Answer-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? - Answer-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 _________. - Answer-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. - Answer-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.
/.Coverage F on homeowners policy provides - Answer-Medical payments to others;
pays all necessary medical expenses for up to three years after an accident.
/.Coverage F: Medical Payments to Others - Answer-Does not apply to the insured or
members of the insured's household
Not liability coverage and is not base on fault
/.An insured has taken inventory of his merchandise and discovers a substantial
shortage of valuable stock. He submits a claim to his insurance carrier that provides his
coverage under a Business Owners Policy. What coverage is provided by the BOP? -
Answer-No coverage would apply, there is no coverage for missing property when there
is no physical evidence to show cause of loss
/.Arbitration (ADR) - Answer-Neutral third party hears a dispute and makes a decision
both parties have agreed to follow.
/.Mediation - Answer-A method of settling disputes outside of court by using the
services of a neutral third party, called a mediator. The mediator acts as a
communicating agent between the parties and suggests ways in which the parties can
resolve their dispute. Not binding.
/.Difference between Arbitration and Meditation? - Answer-Mediation is not binding,
Arbitration is.
/.Mediation-Arbitration - Answer-If the parties cannot reach a settlement through
mediation, an arbitrator will resolve the dispute.
/.The building and personal property coverage form provides coverage for outdoor signs
- Answer-Whether attached to the building or not for up to 2,500 if damaged by a peril
insured against.
/.Building and Personal Property Coverage Form - Answer-Commercial Property
coverage form that covers buildings, the insured's business personal property, and the
personal property of others located at the business premises
/.Foreseeability Test - Answer-To determine if the defendant's conduct was the
proximate cause of the plaintiff's injury, the court applies
/.Foreseeability - Answer-excludes liability for harms that were sufficiently
unforeseeable at the time of the defendant's tortious conduct.
, /.Purpose of freight insurance - Answer-Covers shipper fees
/.Freight Insurance - Answer-indemnifies the ship owner for the loss of earnings if the
goods are damaged or lost and are not delivered. Shipper Fees.
/.Freight Insurance - Answer-insures that shipowner will receive payment for
transportation charges.
/.What perils are covered on the basic form peril of the Homeowners Policy - Answer-
fire, lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles,
vandalism, riot and civil commotion, theft, and premises liability.
/.What perils are covered under the broad from Homeowners Policy - Answer-include
basic perils plus falling objects; weight of ice, sleet, or snow; freezing pipes; and some
coverage for sudden and accidental water discharge.
/.Exclusions to Homeowners policy - Answer-earthquakes;
termites, rats;
freezing pipes while your house is unoccupied;
losses if your house is vacant for the number of days specified by your policy;
wear and tear or maintenance; wind or hail damage to trees and shrubs; mold, except
necessary costs to repair or replace property damage caused by a covered water loss;
and water damage resulting from continuous and repeated leakage or seepage.
/.Landlord's furnishing - Answer-Is not additional coverage and doesn't insurance the
limits of the policy
/.Power to bind means - Answer-The principal is bound to the decisions of the adjuster
/.RVC (replacement cost value) - Answer-The cost to replace the property on the same
premises with other property of comparable material and quality used for the same
purpose
/.DP-3 Special Form - Answer-Under this Dwelling coverage form: dwelling and other
structures are covered for all direct physical damage (open peril), except for perils
specifically excluded..
/.In a surety bonding third-party contract, who is the principal? - Answer-the party whose
performance is guaranteed by the obligor. in a contract between the surety and the
constructor [construction company], the principal is the constructor. in a contract
between the surety and a subcontractor, the principal is the subcontractor (#6, 16)
.
/.Surety bond guarantees fulfillment of certain obligations such as - Answer-payment of
debt, performance and certain duties, meeting contractual commitments
2024/2025
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 -
Answer-A recipient location
/.recipient location - Answer-Businesses who support insured by being the primary
buyer for their products
/.HO-3 (special form) - Answer-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 - Answer-provides open perils coverage ("all-risks
coverage") on the dwelling, other structures and personal property.
/.HO-2 (broad form) - Answer-covers the dwelling, other structures, and personal
property on a named perils basis
/.HO-4 (contents broad form) - Answer-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? - Answer-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 _________. - Answer-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. - Answer-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.
/.Coverage F on homeowners policy provides - Answer-Medical payments to others;
pays all necessary medical expenses for up to three years after an accident.
/.Coverage F: Medical Payments to Others - Answer-Does not apply to the insured or
members of the insured's household
Not liability coverage and is not base on fault
/.An insured has taken inventory of his merchandise and discovers a substantial
shortage of valuable stock. He submits a claim to his insurance carrier that provides his
coverage under a Business Owners Policy. What coverage is provided by the BOP? -
Answer-No coverage would apply, there is no coverage for missing property when there
is no physical evidence to show cause of loss
/.Arbitration (ADR) - Answer-Neutral third party hears a dispute and makes a decision
both parties have agreed to follow.
/.Mediation - Answer-A method of settling disputes outside of court by using the
services of a neutral third party, called a mediator. The mediator acts as a
communicating agent between the parties and suggests ways in which the parties can
resolve their dispute. Not binding.
/.Difference between Arbitration and Meditation? - Answer-Mediation is not binding,
Arbitration is.
/.Mediation-Arbitration - Answer-If the parties cannot reach a settlement through
mediation, an arbitrator will resolve the dispute.
/.The building and personal property coverage form provides coverage for outdoor signs
- Answer-Whether attached to the building or not for up to 2,500 if damaged by a peril
insured against.
/.Building and Personal Property Coverage Form - Answer-Commercial Property
coverage form that covers buildings, the insured's business personal property, and the
personal property of others located at the business premises
/.Foreseeability Test - Answer-To determine if the defendant's conduct was the
proximate cause of the plaintiff's injury, the court applies
/.Foreseeability - Answer-excludes liability for harms that were sufficiently
unforeseeable at the time of the defendant's tortious conduct.
, /.Purpose of freight insurance - Answer-Covers shipper fees
/.Freight Insurance - Answer-indemnifies the ship owner for the loss of earnings if the
goods are damaged or lost and are not delivered. Shipper Fees.
/.Freight Insurance - Answer-insures that shipowner will receive payment for
transportation charges.
/.What perils are covered on the basic form peril of the Homeowners Policy - Answer-
fire, lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles,
vandalism, riot and civil commotion, theft, and premises liability.
/.What perils are covered under the broad from Homeowners Policy - Answer-include
basic perils plus falling objects; weight of ice, sleet, or snow; freezing pipes; and some
coverage for sudden and accidental water discharge.
/.Exclusions to Homeowners policy - Answer-earthquakes;
termites, rats;
freezing pipes while your house is unoccupied;
losses if your house is vacant for the number of days specified by your policy;
wear and tear or maintenance; wind or hail damage to trees and shrubs; mold, except
necessary costs to repair or replace property damage caused by a covered water loss;
and water damage resulting from continuous and repeated leakage or seepage.
/.Landlord's furnishing - Answer-Is not additional coverage and doesn't insurance the
limits of the policy
/.Power to bind means - Answer-The principal is bound to the decisions of the adjuster
/.RVC (replacement cost value) - Answer-The cost to replace the property on the same
premises with other property of comparable material and quality used for the same
purpose
/.DP-3 Special Form - Answer-Under this Dwelling coverage form: dwelling and other
structures are covered for all direct physical damage (open peril), except for perils
specifically excluded..
/.In a surety bonding third-party contract, who is the principal? - Answer-the party whose
performance is guaranteed by the obligor. in a contract between the surety and the
constructor [construction company], the principal is the constructor. in a contract
between the surety and a subcontractor, the principal is the subcontractor (#6, 16)
.
/.Surety bond guarantees fulfillment of certain obligations such as - Answer-payment of
debt, performance and certain duties, meeting contractual commitments
