ADJUSTER PRO EXAM TEST WITH ANSWERS

ADJUSTER PRO EXAM TEST WITH ANSWERS Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection, separate from his home and other property. What term most accurately describes the type of policy Stu would purchase? - CORRECT ANSWER-Monoline Policy Which of the following statements does NOT apply to the Standard Fire Policy? - CORRECT ANSWER-It automatically covers wind and vandalism. Which of the following refers to being restored to the financial condition you were in before a loss? - CORRECT ANSWER-Indemnification The fee paid by the insured in exchange for an insurance policy is called a: - CORRECT ANSWER-premium Haley takes a bottle of water into a store, pours some of it on the floor when no one is looking, and then pretends to slip and fall. She cries out for help in apparent pain until someone comes to her aid. She then sues the store for her fake injury in an effort to collect an insurance settlement. What has Haley committed? - CORRECT ANSWER-Hard fraud Which settlement option is most often used when a claimant misses work because of bodily injury, but a settlement has not yet been reached? - CORRECT ANSWERAdvance payment settlement Cindy and her insurer cannot reach an agreement for her property claim, and have gone back and forth for weeks without coming within $10,000 of each other. At this point, since both believe they are offering a fair settlement, a third party is needed to help facilitate the negotiation. Both parties still want to retain their ability to "walkaway" if they cannot reach an agreement. What is the next best step for Cindy and her insurer? - CORRECT ANSWER-Mediation When Jeanette shows up to handle a claim on behalf of ABC Insurance, she evaluates the claim and negotiates a settlement. Maintaining her integrity and acting ethically, Jeanette is fulfilling her: - CORRECT ANSWER-fiduciary duty. Many adjusters prefer arbitration to litigation, because professional arbitrators tend to be more ___________ than civil juries. - CORRECT ANSWER-knowledgeable Which of the following is NOT true of the no-release settlement? - CORRECT ANSWER-It's also called an "advance payment settlement." Why should litigation be considered a last resort option? - CORRECT ANSWER-It can be costly and unpredictable Which of the following steps would occur LAST in the processing of a claim? - CORRECT ANSWER-Negotiate a settlement with the claimant As an adjuster for KLM Insurance, Chrystal has the important role of fiduciary agent. While acting in this capacity, Chrystal's primary responsibility is to: - CORRECT ANSWER-protect the financial and property interests of KLM Insurance Bobby is adjusting a complicated auto claim. Which of the following is TRUE? - CORRECT ANSWER-Because the policyholder (Jane) is 84 years old and seems to have trouble remembering what happened before the accident, Bobby should feel free to contact her 45-year-old caretaker for clarification. Jim is an insurance adjuster working a theft claim. As part of his investigation, Jim might want to do all of the following, EXCEPT: - CORRECT ANSWER-look for ways to lower the settlement for the claimant. Adjuster Alice is trying to determine the final settlement amount for Ted's claim. Ted's house was damaged in a covered loss, and Alice has estimated that it will cost $25,000 to make the necessary repairs. Ted's homeowners policy has a $100,000 limit and a $2,000 deductible. Typically, how much would Adjuster Alice calculate Ted's final settlement amount to be? - CORRECT ANSWER-$23,000 As an insurance adjuster, Heather is responsible for updating and maintaining an accurate record of all the information pertinent to an individual's insurance claim, including copies of all written documentation, photos and property sketches, witness statements, and copies of medical bills. What is this record called? - CORRECT ANSWER-Claim file Bill is going to switch employers, and therefore switch healthcare providers. Which federal law ensures that he won't be denied coverage when he switches health plans? - CORRECT ANSWER-HIPAA Cindy, a drunk driver, accidentally crashes into Nancy's house, causing $22,000 in damage. On top of that, Nancy tries to get the adjuster to add an additional $20,000 for punitive damages to punish Cindy for driving while intoxicated. However, Nancy fails in her attempts at negotiation. This is because: - CORRECT ANSWER-the adjuster does not have authority to negotiate for punitive damages. Bill's new home is in the final stages of construction, and he has purchased an HO-2 policy to insure his financial interest in the property. This morning, Bill's contractor calls to tell him that an electrical fire has destroyed his new kitchen, and all of the crown molding that was supposed to be installed today has been stolen. It will be $15,000 to rebuild the kitchen and another $4,200 to replace the trim. How will Bill's insurer respond when he files a claim? - CORRECT ANSWER-His insurer will pay $15,000 to rebuild the kitchen and nothing for the stolen trim. Tim's $2,500 boat trailer was stolen from his driveway. Ignoring any deductibles, how much can Tim receive for his stolen trailer when he files a claim against his homeowners policy? - CORRECT ANSWER-$1,500 For loss settlement purposes, most homeowners policies: - CORRECT ANSWER-pay for damages to personal property at actual cash value, and damages to structures at replacement cost. After a rain storm, Nancy realizes that she left her bedroom windows open the entire time. Now there is extensive water damage to her area rug and furniture, and the laptop that had been sitting on her desk is ruined. Nancy has a Broad Form homeowners policy, so she calls her insurance company and files a claim. What is the likely result of Nancy's claim? - CORRECT ANSWER-The insurer will not cover any of the damage, since Nancy left the windows open. Sherrie's roof and fence are damaged in a violent windstorm. Sherrie has a typical HO-3 policy with a $150,000 limit for Coverage A - Dwelling. Assuming she has no endorsements, how much coverage does she have available for the damage to her fence? - CORRECT ANSWER-$15,000 Phil heads over to visit his friend Josh, who is sick with the flu. While at the house, Josh fails to cover his mouth when he coughs and Phil ends up contacting the flu. Phil files a claim with Josh's insurer for medical expenses and lost income while Phil is out sick from work. The insurer denies the claim because: - CORRECT ANSWERdisease transmitted from the insured to a third party is excluded. Mark is on vacation in Italy when his luggage is stolen, including a $2,000 laptop, a $500 suitcase, and $400 in clothes. Mark has an HO-3 homeowners policy. Excluding any applicable deductible, which of the following statements is TRUE? - CORRECT ANSWER-Mark's homeowners policy will cover $2,400 of this loss. Which of the following losses may qualify for coverage under Coverage F - Medical Payments? - CORRECT ANSWER-Kevin accidentally shoots himself in the foot with a nail gun while he is helping Joe build a deck in