INSURANCE ADJUSTER EXAM QUESTIONS TEST BANK EXAM
QUESTIONS AND ANSWERS LATEST DOWNLOAD 2024/2025 BEST
EXAM SOLUTION GRADED A+ FOR SUCCESS
Nina's home is located in a high crime neighborhood. One day, she comes home from work
to find that her garage door had been spray-painted with graffiti. Nina's insurer would
consider the act of vandalism to Nina's garage a: - CORRECT ANSWERS Peril
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called: - CORRECT ANSWERS A Peril
Anytown Pediatrics has been having a hard time finding medical malpractice insurance. The
premiums are extraordinarily high, and they get higher every year. Finally, fed up with the
cost of insurance, the directors decide to form their own insurance company, which will
serve only Anytown Pediatrics. This way, any profits generated by the insurer will come back
to Anytown Pediatrics. What kind of insurance company would this be? - CORRECT
ANSWERS Captive insurer
In an insurance contract, exclusions serve all of the following purposes, except: - CORRECT
ANSWERS add coverages that need special treatment.
Sam was tired of the neighbor's trees along the fence line poking through the fence and
dropping leaves in his yard, so he reached across the fence with his pole saw and cut down
the neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is
ordered to pay $500 for the tree. Under which category of damage would this fall? -
CORRECT ANSWERS Compensory Damage
Jackie recently inherited a life-sized marble statue of her great-grandfather. It is an
irreplaceable antique, and it is nearly impossible to determine the ACV. Which type of policy
would best indemnify Jackie in the event that the statue was ever damaged? - CORRECT
ANSWERS Agreed Value Policy
ABC Consulting has a CGL policy and an Umbrella policy, but the CGL runs from January 1 to
December 31 and the Umbrella policy runs from June 1 to May 31. This difference in
inception and expiration dates creates confusion when settling claims. This condition is
known as: - CORRECT ANSWERS Nonconcurency
A power surge sparks a small electrical fire in an office building. The electrical fire triggers
the automatic sprinkler system. The water from the sprinklers soaks the carpets and shorts-
out all the computers, causing thousands of dollars in damage. The office must close for two
,INSURANCE ADJUSTER EXAM QUESTIONS TEST BANK EXAM
QUESTIONS AND ANSWERS LATEST DOWNLOAD 2024/2025 BEST
EXAM SOLUTION GRADED A+ FOR SUCCESS
months during repairs. The sprinklers soaking the office would be considered: - CORRECT
ANSWERS An occurrence
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A
week later, the police found Sara's car and returned it to her. Which of the following
statements is true? - CORRECT ANSWERS The Recovered Property provision states that Sara
must notify the insurer and either return the settlement payment or surrender the vehicle to
the insurer.
As Seth is driving along a country road, a deer jumps out in front of him. This causes Seth to
veer off the road and crash into Cassie's wood fence and a brick mailbox. As a result of the
crash, Seth suffers $3,700 in damage to his sedan and causes $1,800 in damage to Cassie's
property. How much of the damage will be covered by Seth's liability insurance? - CORRECT
ANSWERS $1800
Which of the following sequences is most likely in the correct chronological order? -
CORRECT ANSWERS Acknowledge the claim, then open a line of communication with the
claimant.
Appraisal is used to decide: - CORRECT ANSWERS the settlement amount
The adjusters preliminary report would most likely not include: - CORRECT ANSWERS The
settlement amount
Which of the following is least likely to be one of the important questions an adjuster must
answer before entering into the negotiations process? - CORRECT ANSWERS How much is
the insured willing to pay
During a storm, heavy winds cause a tree limb to break and fall onto Paul's house, causing
$6,500 in damage. Paul's insurance company now considers his house: - CORRECT ANSWERS
A Loss
Which of the following best describes a "risk," according to the insurance definition? -
CORRECT ANSWERS A potential for financial loss
, INSURANCE ADJUSTER EXAM QUESTIONS TEST BANK EXAM
QUESTIONS AND ANSWERS LATEST DOWNLOAD 2024/2025 BEST
EXAM SOLUTION GRADED A+ FOR SUCCESS
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo
patron. In court, the injured patron's lawyer could invoke the doctrine of: - CORRECT
ANSWERS Res Ipsa Loquitur.
Which of the following best defines the doctrine of Res Ipsa Loquitur? - CORRECT ANSWERS
The circumstances of the injury make it obvious that the defendant is negligent; no proof is
needed
Sylvia is in the process of building an addition onto her used book store, which is insured
under a commercial property policy. About 40 days into the process, her mother takes a bad
fall and breaks her hip. Seeing that she needs to move closer to her mom, Sylvia sells the
book store. Her Builder's Risk coverage is terminated because: - CORRECT ANSWERS Sylvia
no longer has insurable interest in the bui;ding
Sarah and a carload of her friends are driving to Vermont for the weekend when she hits a
deer, causing $10,000 in damages to her car and $5,000 in medical bills for herself and her
passengers. Which insurance coverage will pay for the damages to Sarah's car? - CORRECT
ANSWERS Comprehensive
What document do insurance companies give to claimants when they think something in the
claim is not covered by the policy, but they are not sure yet? - CORRECT ANSWERS
Reservation of rights letter
Jared is fishing from his 22-foot sailboat when he is caught in a sudden hailstorm. His boat
suffers extensive hail damage. When he files a claim against his homeowners policy, he is
upset to learn that his claim is denied because: - CORRECT ANSWERS the boat was not fully
enclosed inside a building during the hailstorm.
Which ISO is known as the Condominium form? - CORRECT ANSWERS Homeowners 6
Bill's home was destroyed by a tornado, and Nick is adjusting the claim. Bill's home will cost
$235,000 to rebuild. His homeowners policy has a $225,000 limit and a $1,700 deductible.
How much would Nick typically calculate the final settlement amount to be? - CORRECT
ANSWERS $225,000
After a hail storm passed through his neighborhood, Perry had his roof inspected by a local
contractor. The contractor gave Perry an estimate of $9,850 to replace his roof, so he filed a
claim with his insurer. The adjuster came up with her own estimate of $9,645 to replace
QUESTIONS AND ANSWERS LATEST DOWNLOAD 2024/2025 BEST
EXAM SOLUTION GRADED A+ FOR SUCCESS
Nina's home is located in a high crime neighborhood. One day, she comes home from work
to find that her garage door had been spray-painted with graffiti. Nina's insurer would
consider the act of vandalism to Nina's garage a: - CORRECT ANSWERS Peril
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called: - CORRECT ANSWERS A Peril
Anytown Pediatrics has been having a hard time finding medical malpractice insurance. The
premiums are extraordinarily high, and they get higher every year. Finally, fed up with the
cost of insurance, the directors decide to form their own insurance company, which will
serve only Anytown Pediatrics. This way, any profits generated by the insurer will come back
to Anytown Pediatrics. What kind of insurance company would this be? - CORRECT
ANSWERS Captive insurer
In an insurance contract, exclusions serve all of the following purposes, except: - CORRECT
ANSWERS add coverages that need special treatment.
Sam was tired of the neighbor's trees along the fence line poking through the fence and
dropping leaves in his yard, so he reached across the fence with his pole saw and cut down
the neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is
ordered to pay $500 for the tree. Under which category of damage would this fall? -
CORRECT ANSWERS Compensory Damage
Jackie recently inherited a life-sized marble statue of her great-grandfather. It is an
irreplaceable antique, and it is nearly impossible to determine the ACV. Which type of policy
would best indemnify Jackie in the event that the statue was ever damaged? - CORRECT
ANSWERS Agreed Value Policy
ABC Consulting has a CGL policy and an Umbrella policy, but the CGL runs from January 1 to
December 31 and the Umbrella policy runs from June 1 to May 31. This difference in
inception and expiration dates creates confusion when settling claims. This condition is
known as: - CORRECT ANSWERS Nonconcurency
A power surge sparks a small electrical fire in an office building. The electrical fire triggers
the automatic sprinkler system. The water from the sprinklers soaks the carpets and shorts-
out all the computers, causing thousands of dollars in damage. The office must close for two
,INSURANCE ADJUSTER EXAM QUESTIONS TEST BANK EXAM
QUESTIONS AND ANSWERS LATEST DOWNLOAD 2024/2025 BEST
EXAM SOLUTION GRADED A+ FOR SUCCESS
months during repairs. The sprinklers soaking the office would be considered: - CORRECT
ANSWERS An occurrence
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A
week later, the police found Sara's car and returned it to her. Which of the following
statements is true? - CORRECT ANSWERS The Recovered Property provision states that Sara
must notify the insurer and either return the settlement payment or surrender the vehicle to
the insurer.
As Seth is driving along a country road, a deer jumps out in front of him. This causes Seth to
veer off the road and crash into Cassie's wood fence and a brick mailbox. As a result of the
crash, Seth suffers $3,700 in damage to his sedan and causes $1,800 in damage to Cassie's
property. How much of the damage will be covered by Seth's liability insurance? - CORRECT
ANSWERS $1800
Which of the following sequences is most likely in the correct chronological order? -
CORRECT ANSWERS Acknowledge the claim, then open a line of communication with the
claimant.
Appraisal is used to decide: - CORRECT ANSWERS the settlement amount
The adjusters preliminary report would most likely not include: - CORRECT ANSWERS The
settlement amount
Which of the following is least likely to be one of the important questions an adjuster must
answer before entering into the negotiations process? - CORRECT ANSWERS How much is
the insured willing to pay
During a storm, heavy winds cause a tree limb to break and fall onto Paul's house, causing
$6,500 in damage. Paul's insurance company now considers his house: - CORRECT ANSWERS
A Loss
Which of the following best describes a "risk," according to the insurance definition? -
CORRECT ANSWERS A potential for financial loss
, INSURANCE ADJUSTER EXAM QUESTIONS TEST BANK EXAM
QUESTIONS AND ANSWERS LATEST DOWNLOAD 2024/2025 BEST
EXAM SOLUTION GRADED A+ FOR SUCCESS
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo
patron. In court, the injured patron's lawyer could invoke the doctrine of: - CORRECT
ANSWERS Res Ipsa Loquitur.
Which of the following best defines the doctrine of Res Ipsa Loquitur? - CORRECT ANSWERS
The circumstances of the injury make it obvious that the defendant is negligent; no proof is
needed
Sylvia is in the process of building an addition onto her used book store, which is insured
under a commercial property policy. About 40 days into the process, her mother takes a bad
fall and breaks her hip. Seeing that she needs to move closer to her mom, Sylvia sells the
book store. Her Builder's Risk coverage is terminated because: - CORRECT ANSWERS Sylvia
no longer has insurable interest in the bui;ding
Sarah and a carload of her friends are driving to Vermont for the weekend when she hits a
deer, causing $10,000 in damages to her car and $5,000 in medical bills for herself and her
passengers. Which insurance coverage will pay for the damages to Sarah's car? - CORRECT
ANSWERS Comprehensive
What document do insurance companies give to claimants when they think something in the
claim is not covered by the policy, but they are not sure yet? - CORRECT ANSWERS
Reservation of rights letter
Jared is fishing from his 22-foot sailboat when he is caught in a sudden hailstorm. His boat
suffers extensive hail damage. When he files a claim against his homeowners policy, he is
upset to learn that his claim is denied because: - CORRECT ANSWERS the boat was not fully
enclosed inside a building during the hailstorm.
Which ISO is known as the Condominium form? - CORRECT ANSWERS Homeowners 6
Bill's home was destroyed by a tornado, and Nick is adjusting the claim. Bill's home will cost
$235,000 to rebuild. His homeowners policy has a $225,000 limit and a $1,700 deductible.
How much would Nick typically calculate the final settlement amount to be? - CORRECT
ANSWERS $225,000
After a hail storm passed through his neighborhood, Perry had his roof inspected by a local
contractor. The contractor gave Perry an estimate of $9,850 to replace his roof, so he filed a
claim with his insurer. The adjuster came up with her own estimate of $9,645 to replace
