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Adjusterpro Final Exam Questions And Answers With Verified Solutions Already Passed!!!
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Adjusterpro Final Exam Questions And Answers With Verified Solutions Already Passed!!!
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Adjusterpro Final Exam Questions AndAnswers With Verified Solutions Already
Passed!!!
-+What is a reserve, in insurance terms? - ANSWER✔✔ A pool of collected
premiums that the insurer sets aside to pay claims
Which of these scenarios is NOT an example of indemnification? - ANSWER✔✔
When trying to renew her dog's license, Ellen has to pay a penalty to the city
for letting its rabies vaccination lapse.
Ellen having to pay a fine is not an example of indemnification. Indemnification
means being restored to the financial condition you were in before a loss. In
three of these situations, someone experienced a loss and was then "made
whole": Joe-Bob's neighbor lost his TV, Alice lost her house, and Hugh lost
the use of his car. But in the case of Ellen's dog, the city did not experience a
loss; it simply imposed a penalty to teach Ellen a lesson about keeping up
with her dog's shots.
Greg plays trombone in his school band during football games. During a rally song
in the stands one day, Greg annoys one of the opposing team's fans, who
grabs his $400 trombone and hurls it down the bleachers, completely
destroying it. Greg's insurance pays him $400 to replace the trombone, but
then the opposing team's coach also offers to replace the instrument, at
whatever the cost. So Greg orders a new $3,200 trombone and has the
opposing team's athletic department absorb the cost. Which principle has
Greg violated? - ANSWER✔✔ The principle of indemnity
Which of the following statements is true about an insurance policy? -
ANSWER✔✔ It relies on the utmost good faith of both the insured and the
insurer
,An insurance policy relies on the utmost good faith of both the insured and the
insurer.
Which of the following would you find in the Conditions section of an insurance
policy? - ANSWER✔✔ The insured's duty after a loss
In which section of an insurance policy might you find the following statement?
"Damage to insured property must be reported within 15 days of the
damaging occurrence." - ANSWER✔✔ Conditions
A captive insurance company: - ANSWER✔✔ exists solely to provide insurance
for its parent company.
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a
publicly traded company, and Cindy can participate in the election of the
board, receiving dividends if the company does well. Sine Nomine Insurance
could be best described as a: - ANSWER✔✔ Sine Nomine Insurance is a
mutual insurance company.
When an insurer issues an insurance policy, the actual item, person, or organization
that is being insured is called the: - ANSWER✔✔ risk.
Which of the following is a hazard? - ANSWER✔✔ A driver's tendency to text
while driving
Which of the following situations does NOT involve an insurable risk? -
ANSWER✔✔ Dale just bought 30 shares of a hot new startup company
online.
, Which of the following situations does NOT involve an instance of "pure risk?" -
ANSWER✔✔ Loss of money invested in the stock market
Which of the following is an insurable risk? - ANSWER✔✔ football stadium
Risk avoidance is a risk management technique that: - ANSWER✔✔ eliminates
risk.
Amy needs more floor space in her antique furniture store, so she buys a storage
building 3 miles away. She is worried about keeping the furniture in the
storage building safe, so she puts in an alarm system and smoke detectors.
By purchasing the alarm system and smoke detectors, Amy is practicing: -
ANSWER✔✔ risk reduction.
Six Stars Development Company has just been offered a great deal on ten large
properties in Las Vegas. The economy in Las Vegas has been declining
recently, but the CEO of Six Stars expects it to recover soon. This could be
an exceptional opportunity for Six Stars, but it's also pretty risky. Ultimately,
the Six Stars executive team decides not to purchase the properties. This is
an example of: - ANSWER✔✔ risk avoidance.
Jason's auto policy states that the insurer may cancel coverage if a premium is
more than 30 days late. However, Jason is currently more than 30 days late,
and has been so five times in the last year, and his insurer has done nothing
about it. When Jason gets into an accident and files a claim, which of the
following is most likely to happen? - ANSWER✔✔ An implied waiver is
one that is assumed based on someone's actions. When the insurer decided to
accept Jason's late premium payments, it implied that it was waiving its right
to cancel Jason's policy because of a late payment. So, when Jason files a
claim, the insurer may not claim that his policy is void due to late payments.
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