Insurance Adjuster Exam Questions And Answers Verified 100% Correct

Insurance Adjuster Exam Questions And Answers Verified 100% Correct The two major types of insurers in the private sector are: - ANSWER Stock and Mutual companies temporary contract of insurance that commits the insurer before before a policy is issued is called a: - ANSWER binder a term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as: - ANSWER estoppel property and liability insurers use different marketing methods. Which of the following are features of the independent agency system? - ANSWER Agents can represent one or more insurers AND Agent owns renewal rights to policies Concealment is failure of the insurance applicant to reveal a material fact to the insurer. Which of the following statements must be proved before the insurer can deny a claim on the basis of concealment? - ANSWER a concealed fact was known to be material by the insured AND the insured intended to defraud the insurer who is considered the first party to an insurance contract? - ANSWER the Insured the insuring agreement summarizes the insurers obligations and conditions for loss payment. Which of the following is/are types of insuring agreements? - ANSWER open peril policy when a person installs burglar bars and a fire alarm system, what method of managing risks has been undertaken? - ANSWER Reduction All of the following could be covered under a named insured's personal auto policy, except: - ANSWER A private passenger vehicle owned by the named insured's spouse who moved to a separate residence 5 months ago (b/c policy only covers up to 90 days; she's been gone 5 months) The physical damage section of the personal auto policy excludes losses arising from: a) flood b) earthquake c) animals d) mechanical breakdowns - ANSWER d) mechanical breakdowns Which of the following causes of loss is covered by Other-Than-Collision Coverage written under a Personal Auto Policy? a) freezing b) electrical breakdown c) vandalism damage to tires d) upset - ANSWER vandalism damage to tires Which of the following losses would be covered by Other-Than-Collision Coverage under an automobile policy? a) mechanical breakdown b) hail c) wear and tear d) upset - ANSWER b) Hail What is the principle coverage under the Personal Auto Policy coverage Part D? a) liability coverage b) physical damage coverage c) uninsured motorist coverage d) medical payments coverage - ANSWER b) Physical Damage Coverage How much will the Personal Auto Policy Coverage Part A pay towards an appeal bond? - ANSWER unlimited to dollar amount All of the following are true about newly-acquired eligible vehicles, except: a) some coverage applies automatically to all newly acquired eligible vehicles b) comprehensive nor collision coverage is never automatically provided for newly acquired vehicles c) liability coverage for additional vehicles will be provided automatically only for 14 days d) if liability coverage applies to a replacement vehicle the coverage is automatic until the end of the policy term - ANSWER b) comprehensive nor collision coverage is never automatically provided to newly acquired vehicles all of the following statements concerning the physical damage section of the personal auto policy are correct except: a) coverage is provided for transportation expenses if a covered auto is stolen b) coverage is excluded for mechanical breakdown unless it is a result of theft of the covered vehicle c) coverage is excluded for private passenger autos borrowed by the named insured or family members d) the insurer has the option of repairing a damaged auto rather than making a monetary settlement - ANSWER c) coverage is excluded for private passenger autos borrowed by the named insured or family members Which of the following best outlines the intent of automobile liability insurance? - ANSWER To pay on behalf of the insured, all sums which the insured shall become legally obligated to pay as damages caused by accident and arising out of the ownership, or use of the automobile Personal Auto Policy (PAP) provisions includes duties of insured after an accident. All of the following are duties of insured after an accident, except: a) notify insurance company b) cooperate with insurer c) do not leave the auto and accident area d) notify the police if necessary - ANSWER c) do not leave the auto and accident area All of the following would be covered under Part A- Liability on a personal auto policy, except: - ANSWER The insured brakes suddenly to avoid hitting a squirrel who has run into the street and a passenger in the insured's automobile is injured (b/c had least amount of control, automatic reaction) a remedy is available when the insured and the insurer cannot agree on whether the insured is entitled to collect damages or on the amount of damages to be awarded in uninsured motorist cases. This remedy is: a) subrogation b) settling out of court c) no benefit to liable d) arbitration - ANSWER d) arbitration What is a temporary substitute automobile? - ANSWER an auto not owned by an insured and used with the owner's permission while the insured's auto is withdrawn from use because of its loss, destruction, breakdown, or servicing Auto liability insurance is divided into coverage for two types of damage one person may cause another. They are: - ANSWER bodily injury and property damage Which of the following is covered by an insured's auto property damage liability insurance? a) damage to the insured's car by collision b) breakage of the insured's windshield c) damage to property of others caused by insured's negligence d) theft of the insured's car - ANSWER c) damage to the property of others caused by the insured's negligence All policies covering private passenger vehicles must be issued for a minimum term of: - ANSWER 6 months What is the maximum amount payable for bail bonds under supplementary payments in