LA Claims Adjuster Property and
Causality Practice Exam 1 Questions
and Answers Latest Version Already
Passed
What is the definition of "negligence" in property and casualty claims?
✔✔The failure to exercise reasonable care, resulting in harm or loss to another party
What is the purpose of an insurance deductible?
✔✔To reduce the insurer's financial liability by requiring the policyholder to cover part of the
loss
How does an adjuster determine the amount of loss for a property claim?
✔✔By evaluating the damages and applying the policy's terms, conditions, and limits
What does "actual cash value" mean in a property insurance policy?
✔✔The replacement cost of the damaged property minus depreciation
What is a "liability claim" in casualty insurance?
1
,✔✔A claim made when the insured is alleged to have caused injury or damage to another party
What does "replacement cost" mean in a property insurance context?
✔✔The amount needed to replace damaged property with new property of like kind and quality,
without depreciation
What is the role of an adjuster during a claims investigation?
✔✔To gather evidence, interview witnesses, and review documentation to determine the validity
of the claim
What is "underinsurance"?
✔✔When the amount of coverage is less than the actual value of the property or risk
What does "policy limit" refer to in a casualty insurance policy?
✔✔The maximum amount an insurer will pay for a covered loss
What is a "sublimit" in an insurance policy?
2
,✔✔A specific limit within the overall policy limit that applies to a certain type of loss or
coverage
What is the difference between "occurrence" and "claims-made" policies?
✔✔An occurrence policy covers incidents that happen during the policy period, while a claims-
made policy covers claims filed during the policy period
What does "bodily injury" liability insurance cover?
✔✔It covers the cost of medical bills, legal fees, and other expenses for injuries caused to others
in an accident
What is "personal injury" liability coverage?
✔✔Coverage for claims related to defamation, slander, invasion of privacy, or other non-
physical harm
What does "property damage" liability insurance cover?
✔✔It covers the cost of repairing or replacing someone else’s property that was damaged by the
insured
3
, How does an adjuster handle fraud in an insurance claim?
✔✔By investigating suspicious circumstances and reporting any findings to the insurer for
possible denial or legal action
What is the "duty to defend" in a liability insurance policy?
✔✔The obligation of the insurer to provide legal defense for the insured when a claim is made
against them
What is "flood insurance" and what type of damage does it typically cover?
✔✔Flood insurance covers damage caused by water from rising rivers, lakes, or storm surges
What is an "act of God" in relation to property and casualty claims?
✔✔A natural event, such as a hurricane or earthquake, that is unforeseeable and typically
excluded from standard insurance policies
What is the difference between "physical damage" and "liability" coverage?
✔✔Physical damage coverage repairs or replaces the insured's own property, while liability
coverage protects against claims made by others
4
Causality Practice Exam 1 Questions
and Answers Latest Version Already
Passed
What is the definition of "negligence" in property and casualty claims?
✔✔The failure to exercise reasonable care, resulting in harm or loss to another party
What is the purpose of an insurance deductible?
✔✔To reduce the insurer's financial liability by requiring the policyholder to cover part of the
loss
How does an adjuster determine the amount of loss for a property claim?
✔✔By evaluating the damages and applying the policy's terms, conditions, and limits
What does "actual cash value" mean in a property insurance policy?
✔✔The replacement cost of the damaged property minus depreciation
What is a "liability claim" in casualty insurance?
1
,✔✔A claim made when the insured is alleged to have caused injury or damage to another party
What does "replacement cost" mean in a property insurance context?
✔✔The amount needed to replace damaged property with new property of like kind and quality,
without depreciation
What is the role of an adjuster during a claims investigation?
✔✔To gather evidence, interview witnesses, and review documentation to determine the validity
of the claim
What is "underinsurance"?
✔✔When the amount of coverage is less than the actual value of the property or risk
What does "policy limit" refer to in a casualty insurance policy?
✔✔The maximum amount an insurer will pay for a covered loss
What is a "sublimit" in an insurance policy?
2
,✔✔A specific limit within the overall policy limit that applies to a certain type of loss or
coverage
What is the difference between "occurrence" and "claims-made" policies?
✔✔An occurrence policy covers incidents that happen during the policy period, while a claims-
made policy covers claims filed during the policy period
What does "bodily injury" liability insurance cover?
✔✔It covers the cost of medical bills, legal fees, and other expenses for injuries caused to others
in an accident
What is "personal injury" liability coverage?
✔✔Coverage for claims related to defamation, slander, invasion of privacy, or other non-
physical harm
What does "property damage" liability insurance cover?
✔✔It covers the cost of repairing or replacing someone else’s property that was damaged by the
insured
3
, How does an adjuster handle fraud in an insurance claim?
✔✔By investigating suspicious circumstances and reporting any findings to the insurer for
possible denial or legal action
What is the "duty to defend" in a liability insurance policy?
✔✔The obligation of the insurer to provide legal defense for the insured when a claim is made
against them
What is "flood insurance" and what type of damage does it typically cover?
✔✔Flood insurance covers damage caused by water from rising rivers, lakes, or storm surges
What is an "act of God" in relation to property and casualty claims?
✔✔A natural event, such as a hurricane or earthquake, that is unforeseeable and typically
excluded from standard insurance policies
What is the difference between "physical damage" and "liability" coverage?
✔✔Physical damage coverage repairs or replaces the insured's own property, while liability
coverage protects against claims made by others
4
