LA Claims Adjuster Property and
Causality Practice Exam 2 Questions
and Answers Latest Version Already
Passed
What is the difference between a claims adjuster and an insurance agent?
✔✔An adjuster evaluates and settles claims, while an agent sells insurance policies
What is a deductible in property insurance?
✔✔The amount the policyholder must pay out-of-pocket before insurance coverage kicks in
What is the function of a replacement cost policy?
✔✔It reimburses the policyholder for the cost to replace damaged property without factoring in
depreciation
What is actual cash value (ACV) in insurance terms?
✔✔The replacement cost minus depreciation
How does an adjuster determine the value of a property loss?
1
,✔✔By considering factors such as replacement cost, depreciation, and market conditions
What does "loss of use" coverage protect against?
✔✔It covers additional living expenses if a property becomes uninhabitable due to a covered
loss
What is subrogation in the context of insurance claims?
✔✔The process by which an insurer seeks to recover claim payments from a third party
responsible for the loss
What does "coverage A" in a homeowner’s policy typically refer to?
✔✔The dwelling or structure of the home
What is a "bodily injury" claim in liability insurance?
✔✔A claim made for physical injuries caused to a person due to the insured’s actions or
negligence
What is the role of an independent claims adjuster?
2
,✔✔To assess claims on behalf of an insurer but not employed directly by the insurer
What is the difference between general liability insurance and property insurance?
✔✔General liability insurance covers injuries or damages caused by the policyholder, while
property insurance covers damages to the insured's property
What is a claims adjuster’s primary responsibility when investigating a claim?
✔✔To gather facts, assess damage, and determine the insurer's liability under the policy terms
What is the standard time frame for reporting an auto accident claim in Louisiana?
✔✔As soon as possible, but typically within a few days after the incident
What is "underinsurance" in the context of a property insurance policy?
✔✔When the policy limit is lower than the replacement cost or market value of the property
What does an adjuster need to verify before settling a claim?
✔✔That the loss is covered under the policy, the extent of the damage, and the appropriate
payout
3
, How does an adjuster handle fraud detection in claims?
✔✔By carefully reviewing the claim, assessing the documentation, and following up on
inconsistencies
What is a "waiver of subrogation" clause in a property insurance policy?
✔✔A provision that prevents the insurer from pursuing a third party for reimbursement after
paying a claim
What are "exclusions" in an insurance policy?
✔✔Situations or events that are not covered by the insurance policy
What does "vicarious liability" mean in liability insurance?
✔✔The responsibility of one party (such as an employer) for the actions of another party (such
as an employee)
What is "loss of income" coverage in a business policy?
✔✔Coverage that compensates for lost revenue if the business is temporarily shut down due to a
covered loss
4
Causality Practice Exam 2 Questions
and Answers Latest Version Already
Passed
What is the difference between a claims adjuster and an insurance agent?
✔✔An adjuster evaluates and settles claims, while an agent sells insurance policies
What is a deductible in property insurance?
✔✔The amount the policyholder must pay out-of-pocket before insurance coverage kicks in
What is the function of a replacement cost policy?
✔✔It reimburses the policyholder for the cost to replace damaged property without factoring in
depreciation
What is actual cash value (ACV) in insurance terms?
✔✔The replacement cost minus depreciation
How does an adjuster determine the value of a property loss?
1
,✔✔By considering factors such as replacement cost, depreciation, and market conditions
What does "loss of use" coverage protect against?
✔✔It covers additional living expenses if a property becomes uninhabitable due to a covered
loss
What is subrogation in the context of insurance claims?
✔✔The process by which an insurer seeks to recover claim payments from a third party
responsible for the loss
What does "coverage A" in a homeowner’s policy typically refer to?
✔✔The dwelling or structure of the home
What is a "bodily injury" claim in liability insurance?
✔✔A claim made for physical injuries caused to a person due to the insured’s actions or
negligence
What is the role of an independent claims adjuster?
2
,✔✔To assess claims on behalf of an insurer but not employed directly by the insurer
What is the difference between general liability insurance and property insurance?
✔✔General liability insurance covers injuries or damages caused by the policyholder, while
property insurance covers damages to the insured's property
What is a claims adjuster’s primary responsibility when investigating a claim?
✔✔To gather facts, assess damage, and determine the insurer's liability under the policy terms
What is the standard time frame for reporting an auto accident claim in Louisiana?
✔✔As soon as possible, but typically within a few days after the incident
What is "underinsurance" in the context of a property insurance policy?
✔✔When the policy limit is lower than the replacement cost or market value of the property
What does an adjuster need to verify before settling a claim?
✔✔That the loss is covered under the policy, the extent of the damage, and the appropriate
payout
3
, How does an adjuster handle fraud detection in claims?
✔✔By carefully reviewing the claim, assessing the documentation, and following up on
inconsistencies
What is a "waiver of subrogation" clause in a property insurance policy?
✔✔A provision that prevents the insurer from pursuing a third party for reimbursement after
paying a claim
What are "exclusions" in an insurance policy?
✔✔Situations or events that are not covered by the insurance policy
What does "vicarious liability" mean in liability insurance?
✔✔The responsibility of one party (such as an employer) for the actions of another party (such
as an employee)
What is "loss of income" coverage in a business policy?
✔✔Coverage that compensates for lost revenue if the business is temporarily shut down due to a
covered loss
4
