Exam (elaborations)
Adjuster Pro Practice Exam
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Adjuster Pro Practice Exam
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Adjuster Pro Practice ExamStu 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? - -Monoline Policy
-Which of the following statements does NOT apply to the Standard Fire
Policy? - -It automatically covers wind and vandalism.
-Which of the following refers to being restored to the financial condition you
were in
before a loss? - -Indemnification
-The fee paid by the insured in exchange for an insurance policy is called a: -
-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? - -
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? - -Advance
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? - -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: - -fiduciary duty.
-Many adjusters prefer arbitration to litigation, because professional
arbitrators tend to
be more ___________ than civil juries. - -knowledgeable
-Which of the following is NOT true of the no-release settlement? - -It's also
called an "advance payment settlement."
-Why should litigation be considered a last resort option? - -It can be costly
and unpredictable
-Which of the following steps would occur LAST in the processing of a claim?
- -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: - -protect
the financial and property interests of KLM Insurance
-Bobby is adjusting a complicated auto claim. Which of the following is
TRUE? - -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: - -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? - -$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? - -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? - -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: - -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? - -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? - -$1,500
-For loss settlement purposes, most homeowners policies: - -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
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