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INDIANA ADJUSTER PRACTICE EXAM QUESTIONS AND UPDATED ANSWERS 2024 – 2025
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INDIANA ADJUSTER PRACTICE EXAM QUESTIONS AND UPDATED ANSWERS 2024 – 2025
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INDIANA ADJUSTER PRACTICE EXAM QUESTIONSAND UPDATED ANSWERS 2024 – 2025
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,bleac
hers,,completely,destroying,it.,Greg's,insurance,pays,him,$400,to,replace,the,trombone,,but,then,the,op
posing,team's,coach,also,offers,to,replace,the,instrument,,at,whatever,the,cost.,So,Greg,orders,a,new,$
3,200,trombone,and,has,the,opposing,team's,athletic,department,absorb,the,cost.,Which,principle,has,
Greg,violated?,,ANS,-,,The,principle,of,indemnity
Which,of,the,following,statements,does,NOT,apply,to,the,Standard,Fire,Policy?
A.,It,is,the,basis,for,all,homeowners,policies.
B.,It,pays,actual,cash,value.
C.,It,automatically,covers,wind,and,vandalism.
D.,It,is,a,named,peril,policy.,,ANS,-,,C.,It,automatically,covers,wind,and,vandalism.
The,Standard,Fire,Policy,is,also,known,by,a,nickname:,The,"___,",Policy.,,ANS,-,,165,Line
Stan,built,a,porch,for,his,home,three,years,ago,at,a,cost,of,$10,000.,The,value,of,the,porch,has,deprecia
ted,by,$6,000,,and,it,would,cost,$12,000,to,replace,it,today.,After,Stan's,porch,burnt,down,during,a,BBQ
,today,,how,much,would,a,Standard,Fire,Policy,indemnify,Stan,for,his,porch?,,ANS,-
,,$6,000,(The,Standard,Fire,Policy,pays,on,an,ACV,basis.,Recall,from,earlier,in,the,course,,that,the,formul
a,for,calculating,ACV,is,Replacement,Cost,minus,Depreciation.,So,,in,this,case:,$12,000,-
,$6,000,=,$6,000.)
In,an,insurance,policy,,the,summary,of,what,the,insurer,will,do,in,the,event,of,a,covered,loss,is,called:,,A
NS,-,,the,insuring,agreement.
If,an,adjuster,needs,to,find,clarification,about,what,actually,constitutes,a,collision,,in,which,section,of,an
,insurance,policy,would,she,find,that,information?,,ANS,-,,Definitions
,In,which,section,of,an,insurance,policy,might,you,find,the,following,statement?,"Damage,to,insured,pro
perty,must,be,reported,within,15,days,of,the,damaging,occurrence.",,ANS,-,,Conditions
All,of,the,following,pieces,of,information,can,be,found,in,the,Conditions,section,of,an,insurance,policy,,E
XCEPT:
A.,anything,the,insured,must,do,for,coverage,to,remain,in,effect.
B.,what,the,insured,must,do,in,the,event,of,a,lawsuit.
C.,the,insured's,duties,after,a,loss.
D.,causes,of,loss,that,are,not,covered.,,ANS,-,,D.,causes,of,loss,that,are,not,covered.
Which,of,the,following,statements,is,true,about,an,insurance,policy?,,ANS,-
,,It,relies,on,the,utmost,good,faith,of,both,the,insured,and,the,insurer.
In,a,__________,,only,one,party,is,legally,obligated,to,perform.,,ANS,-,,unilateral,contract
A,reciprocal,insurer,is:,,ANS,-
,,an,unincorporated,organization,of,subscribers,that,operates,through,an,attorney-in-
fact,to,provide,insurance,benefits,for,its,members.
Xavier,owns,a,small,insurance,company.,Recently,the,company,won,a,bid,to,insure,a,new,housing,devel
opment,in,Omaha,,NE.,His,company,can,handle,any,claims,that,arise,,but,if,a,series,of,tornados,were,to,
tear,through,the,area,and,destroy,the,entire,development,,Xavier's,company,would,suffer,financially.,W
hich,type,of,insurer,could,help,Xavier's,company,protect,itself,the,most,from,this,potential,loss?,,ANS,-
,,A,re-insurer
Which,of,these,is,NOT,typically,excluded,from,coverage,in,a,property,insurance,policy?
A.,Off-premises,power,failure
B.,Nuclear,events
C.,Civil,confiscation
D.,Lightning,,ANS,-,,D.,Lightning
, Clark,is,filling,out,an,application,for,an,insurance,policy.,The,application,asks,for,his,birth,date,,and,Clark
,writes,1-24-67.,His,actual,birthday,is,1-24-
63,,but,he,likes,to,appear,younger,so,he,uses,a,different,date.,This,would,be,called:,,ANS,-
,,misrepresentation.
Bob,has,been,in,the,construction,business,a,long,time,and,is,ready,to,retire.,He,sells,the,company,to,his,
friend,Scott,and,then,lets,the,insurer,know,that,any,claims,against,his,policy,should,be,paid,to,Scott,fro
m,now,on.,The,insurer,informs,Bob,that,they,cannot,do,this,due,to,which,condition?,,ANS,-,,Assignment
According,to,the,Mortgagee,Clause,,what,is,NOT,one,of,the,rights,of,the,mortgagee?
A.,The,mortgagee,may,receive,a,portion,of,claim,payments.
B.,The,mortgagee,may,change,the,coverage,amount.
C.,The,mortgagee,may,be,indemnified,,even,in,the,event,of,fraud,by,the,insured.
D.,The,mortgagee,will,be,notified,if,the,insurer,intends,to,cancel,the,policy.,,ANS,-
,,B.,The,mortgagee,may,change,the,coverage,amount.
Which,of,the,following,situations,does,NOT,involve,an,instance,of,"pure,risk?"
A.,Loss,of,a,house,due,to,a,hurricane
B.,Loss,of,money,invested,in,the,stock,market
C.,Loss,of,a,company,car,in,an,unfortunate,accident
D.,Loss,of,crops,due,to,an,infestation,of,parasites,,ANS,-,,B.,Loss,of,money,invested,in,the,stock,market
A,lightning,strike,causes,one,of,the,storage,buildings,on,John's,farm,to,burn,to,the,ground,,aided,by,the,
fuel,tanks,he,kept,in,the,building.,John,knows,he,wasn't,supposed,to,store,any,fuel,in,the,building,,so,he
,keeps,that,piece,of,information,to,himself,when,he,files,a,claim.,John's,insurer,may,deny,his,claim,base
d,on,his:,,ANS,-,,concealment.
An,insurance,company,might,consider,any,of,the,following,a,risk,,EXCEPT:
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