Exam (elaborations)
Adjuster Pro/386 Complete Questions and Answers 2023
Adjuster Pro/386 Complete Questions and Answers 2023
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Adjuster Pro/386 Complete Questionsand Answers 2023
John is doing some lawn maintenance using a steel blade on his weed-
whacker. He fails to properly tighten the blade and it comes loose while he is
trimming some tall grass at the edge of his property. The blade flies off
towards his neighbor's house and crashes into the HVAC unit, severing the
lines and effectively destroying the unit. Which coverage in John's
homeowners policy might pay for the damage he caused to his neighbor's
HVAC system?
A. Coverage E - Personal Liability
B. Coverage B - Other Structures
C. None
D. Coverage A - Dwelling - -A
-Which of the following expenses would NOT be covered under a
homeowners policy additional coverage called Claims Expenses?
A. Interest accrual on judgements
B. Administrative costs related to renewing the insured's policy
C. Premiums for bonds required in a lawsuit defended by the insurer
D. Up to $250 per day for the insured's lost wages while the insured is
helping with the claim investigation - -B
-A neighbor stepped on a rusty rake while walking through Jake's backyard,
unannounced. He ends up with a bad case of tetanus and has to stay in the
hospital for three days. He files a claim against Jake, who protests any
wrongdoing because he believes his neighbor was trespassing and should be
responsible for his own injury. Jake wants a court of law to settle the dispute.
How can the insurer settle the claim put forth by Jake's neighbor?
A. The insurer can settle anyway it finds advantageous to its interests.
B. The insurer must use arbitration since Jake feels he is not at fault.
C. The insurer can only settle in court if Jake demands a lawsuit.
D. The insurer must settle however Jake's neighbor wishes. - -A
-Frances is visiting her mom's grave and notices that several headstones in
the cemetery have been defaced with spray-paint, including her mother's.
Frances hires a professional cleaning service to remove the spray-paint from
her mother's headstone. Which type of additional coverage in her
homeowners policy could help Frances with the cost of removing the paint?
A. None
,B. Grave Markers coverage
C. Reasonable repairs coverage
D. Debris Removal coverage - -B
-Following a covered loss, which of these expenses would NOT be covered
under Coverage F - Medical Payments in a homeowners policy?
A. Funeral services
B. Dental costs
C. Hospital stays
D. Weight loss surgery - -D
-Paul lives in an area where property values are appreciating rapidly. He
would like his homeowner's policy to reflect the increase in the value of his
home. Which endorsement might Paul purchase to accomplish this?
A. Inflation Guard
B. Increased Limits on Personal Property
C. Additional Structures
D. Valuation Endorsement - -A
-Under Coverage F - Medical Payments to Others, the Payment of Claim
provision states:
A. all payments made under Coverage F will be paid at actual cash value.
B. Coverage F is voluntary coverage: even if a claim is paid, it is not an
admission of the insurer's liability.
C. no payments will be made until the insurer's liability has been determined.
Under Coverage F - Medical Payments to Others, the Payment of Claim
provision states that Coverage F is voluntary coverage: even if a claim is
paid, it is not an admission of the insurer's liability.
D. the insurer reserves the right to demand a proof of loss before paying an
indemnity under Coverage F. - -B
-Ron works from home. After a kitchen fire renders his home uninhabitable,
he is forced to rent an apartment in town while the repairs are made. Which
type of coverage could help Ron pay the cost of renting the apartment?
A. Coverage B - Other Structures
B. Coverage A - Dwelling
C. None
D. Coverage D - Loss of Use - -D
-John's home is totally destroyed by a fire, and along with it most of his
personal property. A few of the items were scheduled in his homeowners
,policy, such as his Rolex watch and a few antiques, but everything else was
left as "unscheduled property." These "unscheduled" items,
A. will not be covered.
The Scheduled Personal Property endorsement is used to list (or schedule)
certain items with higher coverage limits. Otherwise, all personal property
normally kept at the insured premises is covered up to the Coverage C limit,
with no need to list, or schedule, each individual item.
B. will have to be scheduled before they can be covered.
C. will take twice as long for indemnification since their times weren't
scheduled.
D. will be covered under the normal policy limits - -D
-The Liberalization clause in a homeowners policy:
A. states that the insurer is obligated to pay out only up to the limit set by
the policy, but must do so within 60 days of receiving proof of loss.
In the HO policy, the Liberalization provision applies not only to changes
made during the policy period, but also to any changes up to 60 days before
it goes into effect.
B. states that only losses occurring during the policy period will be paid.
C. applies not only to changes made during the policy period, but also to any
changes made up to 60 days before the policy went into effect.
D. voids the policy if the insured deliberately conceals or misstates pertinent
info. - -C
-To meet the 80% level of co-insurance required by his lender, Tom
discovers he must insure his home for at least $320,000. What is the value of
Tom's home?
A. $440,000
B. $256,000
$320,% = $400,000
C. $400,000
D. $320,000 - -C
-Which of the following is true of an Indiana insurer who does not want to
renew a policy?
A. It may decide not to renew for any reason, but must give the policyholder
30 days' notice beforehand.
B. It may decide not to renew for any reason, and is not required to give
notice to the policyholder.
C. It may only decide not to renew if the policyholder has paid less than 50%
of his premiums in the last quarter, and must give the policyholder 10 days'
notice beforehand.
, D. Its reasons for nonrenewal must meet state requirements, and it must
give the policyholder 20 days' notice beforehand. - -D
-In Indiana, if an insurer wishes to cancel a policy that has been in effect for
less than 60 days, it may do so:
A. for any reason, as long as it refunds any pre-paid premiums.
That is incorrect. In Indiana, if an insurer wishes to cancel a policy that has
been in effect for less than 60 days, it may do so only for a state-approved
reason, and must give the policyholder 10 days' written notice before
cancellation.
B. only for a state-approved reason, and must give the policyholder 10 days'
written notice before cancellation.
C. only for violation of safety codes, and must give the policyholder 20 days'
written notice before cancellation.
D. for any reason, and must give the policyholder 15 days' written notice
before cancellation. - -B
-An unendorsed D-1 Basic Form covers what 3 perils? - -fire, lightning,
internal explosion
-Frank is only going to use his property a few times a year as a hunting
lounge. What coverage should he get? - -Dwelling Policy
-Molly leaves town for a one week vacation. When she returns, she finds
that the back door to her house has been kicked in and damage. Her laptop
is gone, and-to her surprise, she finds that the pipe copper piping in the
basement has been torn out and stolen as well! She has a DP-3 with
coverage for contents but no additional endorsements. What, if anything, is
covered? - -the damage to the door and the copper piping
-ABC Trucking owns a nice vacation house in the country, to which they
regularly bring high-ticket clients as a benefit for staying loyal to them. They
would like to purchase a policy to insure the property from things like fire,
windstorm damage, or vandalism. What policy type could ABC Trucking
purchase to cover the property? - -Dwelling policy
-Leonard has a dwelling insured under a DP-1 with a limit of liability of
$100,000 and no endorsements. An automobile swerves off the road and
crashes through Leonard's dwelling. The cost to repair the damage to the
wall is $10,000. However, when Leonard attempts to get the permits to do
the repair, he finds out that current codes require that he perform a $1,000
upgrade to the plumbing in the wall. How much will the policy pay (ignore
the deductible)? - -Nothing. Damage from vehicles is not a covered peril
under a DP-1 without an endorsement.
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