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Adjuster Pro Texas/311 Questions and Answers/A+ Rated!!!
Adjuster Pro Texas/311 Questions and Answers/A+ Rated!!!
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Adjuster Pro Texas/311 Questionsand Answers/A+ Rated!!!
All of the following pieces of information can be found in the conditions
section of an insurance policy EXCEPT: - -Causes of loss that are not covered
-Which of the following best defines the principle of indemnity? - -After a
loss, the insured should be restored to his approximate financial condition
before the loss
-SureTrust Insurance was founded and operates in Texas. In Texas,
Suretrust is considered - -a domestic insurer
-What is a reserve, in insurance terms? - -A pool of collected premiums that
the insurer sets aside to pay claims
-Which of the following would you find in the Conditions section of an
insurance policy? - -The insured's duty after a loss
-Which of the following is found in the declarations page of an insurance
policy? - -The name of the insured party
-Which of the following refers to being restored to the financial condition you
were in before a loss? - -Indemnification
-Dr. Nelson routinely schedules her patients for lab tests that they dont need
so she can charge their insurers for more money. Dr. Nelson is: - -
committing health insurance fraud
-Six Starts Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they are a little
short on money and decide to save money by not purchasing insurance on
their new properties. Six Stars is practicing: - -Risk retention
-Which of the following people committed soft fraud? - -Rafael accidentally
slipped on a wet floor at the supermarket. Although his only injury was a
sprained ankle, he claimed he had back and neck pain when he sued the
supermarket in an effort to get more money in the settlement.
-When a car stops short in front of Mike's car, he manages to hit the brakes
in time and avoids a collision. To Mike's surprise, the other driver then
throws the car into reverse and backs into Mike's car! The other drivers
actions are an example of: - -Hard fraud
, -When Louise goes online and fills out phony applications with XYZ Auto
Insurance in order to print the temporary insurance cards and sell them for a
profit on the black market, she is: - -Committing hard fraud
-Lucy has insurance on an expensive necklace she likes to wear to work
every day. After work, she takes it off and leaves it in her car's cupholder so
she can put it back on in the morning on her way to work. Lucy's behavior
would be considered a: - -Morale hazard
-When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - -Risk
-Which of the following situations does not involve an instance of "pure risk"
- -Loss of money invested in the stock market
-Which of the following is an example of how some insurers are fighting back
against insurance fraud? - -Starting fraud busting units staffed with former
detectives and police officers
-Which of the following is NOT a form of insurance fraud? - -Increasing your
insurance coverage when you think a loss is likely
-Steve has just purchased a wedding ring for his new bride. If something
were to happen to the ring, he'd be out of a lot of money, so he purchases an
insurance policy. He is able to do this because: - -The ring is a pure risk
-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
-After an earthquake, Jake's home is still standing, but it is a little shaken.
The damage is not extensive but Jake wants to cash in on the situation, so he
takes a sledgehammer to some of his extra belongings and adds them to his
claim. Jake has committed: - -Property insurance fraud
-Which of the following is an example of a hazard? - -Sandra's home is in an
area of Los Angeles that is often hit by earthquakes
-Risk avoidance is a risk management technique that: - -Eliminates risk
-An "occurrence" is defined as: - -An unexpected event that causes loss
, -When Sally applies for an auto policy, her agent issues her a _______ so that
she can benefit from insurance protection while he underwrites the policy. -
-Binder
-Jane's shed burns to the ground during a tornado, when the high winds
break a wall of the shed, knocking over a lantern inside. What is the
proximate cause of the loss? - -Wind
-During a storm, lightning strikes a tree in Harry's yard and starts a fire that
spreads to his shed where he keeps all his equipment for his landscaping
business. In addition to the shed, Harry has to purchase all new equipment to
stay in business. The cost to replace the equipment would be considered: - -
A direct loss
-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: - -Misrepresentation
-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? - -The insurer will pay the
claim because of the implied waiver they have made by not canceling Jason's
policy the previous times he was late with his payments.
-What is a binder? - -Temporary coverage for an insurance applicant until
the policy is issued
-In order to qualify for an insurance policy, Lydia's Fine Jewels must agree to
have a security guard on the premises 24/7. This is called a: - -Warranty
-Which of the following statements about the principle of estoppel is TRUE? -
-Estoppel protects the insured party from an insurer who initially approves
coverage, but then later denies coverage after the insured pays for repairs.
-Driving home after a 14-hour shift Sam falls asleep at the wheel and plows
into Sandra's home, causing extensive damage to the East wall and roof. As
a result, Sandra and her family must move into a hotel until the repairs are
completed. The cost of staying in a hotel is: - -An indirect loss
-When Jim is involved in an accident, he immediately calls his insurer and
files a claim. When his insurer denies the claim, it is required to provide Jim
with: - -A reason for denying the claim
, -Sue decides to get a valued insurance policy on her antique car. She and
her insurance company agree to a value of $85,000. Three years later, the
car is destroyed when a tree falls on it in a parking lot. The car depreciates
at $2,000 a year, and its replacement cost is 100,000. Ignoring any
deductible, how much can Sue expect her insurer to indemnify her? - -
$85,000
-When Zach purposefully burned down Matt's restaurant, Matt's insurer paid
the claim and then went after Zach for the damages. Matt is furious about
what Zach did and wants to sue him as well. Why is it NOT possible for Matt
to sue Zach? - -Matt has already received indemnification from his insurer
-Jesse's home is worth $200,000 and he has a homeowners policy with a
$160,000 limit. After a covered loss, Jesse is left with a total of $10,000 in
damages. Assuming the insurer requires the standard 80% level of insurance
for coinsurance purposes, and ignoring any deductibles, how much will Jesse
receive in indemnification? - -$10,000
-While making a right-hand turn from the right lane, Ben is sideswiped by
Roxanne, totaling the car he bought new 12 years ago for $15,000. Roxanne
is judged to be at fault. She has an auto policy with limits of 50/100/25 and a
$500 deductible on her collision coverage. Assuming Ben's car depreciates at
a rate of $1,100 a year, how much will Roxanne have to pay out of pocket
when Ben files a claim against her insurer for the damages? - -0
-Which of the following does not have an insurable interest in Big Ed's Steak
House, a local restaurant? - -Jim, who regularly eats at Big Ed's Steak House
because it's his favorite restaurant.
-ABC Masonry, Inc. has an aggregate liability policy with limits of
100,000/300,000. One day, an accident at a construction site leads to
$150,000 in damage to public property. Assuming the cause of loss is
covered under ABC Masonry's liability policy, how will this claim be paid? - -
The insurer pays $100,000; the aggregate limits is now $200,000; and ABC
Masonry must pay $50,000
-A few weeks ago Christopher's garage was destroyed by an out of control
motorist. Fortunately, the motorist had sufficient liability insurance to cover
the damages. However, the insurer insists that Christopher's garage is worth
far less than the appraisals he has received from contractors. Christopher
and insurer have gone back and forth in negotiations for weeks, making little
headway. Christopher decides it's time to: - -issue a complaint against the
policyholder
-Ricky was watching a baseball game at XYZ stadium, when the railing on
which he was leaning gave way and he fell two stories. As a result of his fall,
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