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Adjuster Pro Exam Prep
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Adjuster Pro Exam PrepCommon law is based upon - -court decisions and customs.
-cause of loss or damage - -peril
-Jim owns a home valued at $187,500, but he only has a $100,000
homeowner's policy and is underinsured. During a storm, lightning strikes
Jim's home causing $45,000 in damages. The insurer decides to invoke a
coinsurance penalty. How much will Jim be required to pay for the penalty? -
-The coinsurance requirement of 80% means that Jim should have
maintained a minimum policy of $150,000 in coverage. Instead, Jim
maintained a $100,000 policy, under-insuring himself by a third. When the
insurer invokes the coinsurance penalty, Jim is then responsible for a third of
the damages, which in this case totaled $45,000. So, Jim must pay $15,000.
-In the context of insurance adjusting, who is the principal? - -The source of
the adjuster's authority
-What document do insurance companies give to claimants when they think
something in the claim is not covered by the policy, but they are not sure
yet? - -Reservation of Rights letter
-Which of the following is NOT a reason why an adjuster would collect
written or recorded witness statements during a claim investigation?
A. To fully comply with the Conditions section of the insurance policy
B. To dispute an account provided by the claimant or another witness
C. To impeach a witness's credibility if he changes his story when the claim
goes to court
D. To expose data that may have been overlooked in the claim handling
process - -A. To fully comply with the Conditions section of the insurance
policy
-Nichole's car was damaged while it was being serviced at Don's Auto Shop.
Nichole's auto insurance policy covers physical damage to her vehicle, but it
will not cover the damage that occurred while the vehicle was under the
control of Don's Auto Shop. Which provision in her policy states this?
A. Control of Property
B. No Benefit to Bailee
,C. Assignment
D. Severability of Interests - -B. No Benefit to Bailee
-Which of the following would NOT fall under the definition of "Residence
Premises" in Shannon's homeowners policy?
A. The beach house that Shannon and her family rent for a weekend getaway
each month
B. Shannon's detached 4-car garage
C. The two-bedroom house that Shannon owns in town, which she rents out
to four college students
D. The vacant lot that Shannon owns, located right next to her own house - -
C. The two-bedroom house that Shannon owns in town, which she rents out
to four college students
-With a ____ deductible, the policyholder only pays for damages that are less
than his deductible. If the cost of damages equals or exceeds his deductible,
the insurer pays the full amount and the policyholder pays nothing. - -
franchise
-Which of the following does NOT apply to Tort Law?
A. The state charges the defendant
B. Only a simple majority is required to reward the claimant for damages
C. Tort law applies only to civil trials
D. The defendant is called the tortfeasor - -A. The state charges the
defendant
-Quincy is in court attempting to convince the jury through a preponderance
of evidence that his insurer is deliberately withholding his rightful
indemnification for his property claim. In which type of legal proceeding are
Quincy and his insurer currently involved?
A. Criminal trial
B. Civil trial
C. Contributory negligence hearing
, D. Comparative negligence hearing - -B. Civil trial
-XYZ Trucking Company has a franchise deductible policy with a deductible
of $100,000. When a tornado rips through their lot, the company sustains
$965,000 in damage. How much of the damage will XYZ Trucking Company
be responsible for paying?
A. $0
B. $965,000
C. $100,000
D. $865,000 - -A. $0
-HO-6 covers what? - -the finished surfaces of the insured's unit, but not the
overall building, since this is owned collectively.
-What is the best reference for reconstructing the details of a claim?
A. The claimant
B. An eyewitness
C. The claim file
D. The insured who was present - -C. The claim file
-In _______court, the government (usually referred to as "the State")
prosecutes a person for breaking the law, with the possibility of punishment
like jail time or a fine. - -criminal
-In ______court, one party files a lawsuit against another, asking for money
or for a court order against the other party. - -civil
-HO-4 only covers _______ - -a renter's personal property, not the structure
-Terry is renting half of a duplex. During a severe storm, lightning strikes a
tree in the front yard and causes a large portion of the tree to fall on Terry's
side of the duplex. Which of the following losses will be covered by Terry's
Homeowners 4 policy?
A. Removal of the tree and debris will cost hundreds of dollars.
B. Terry's roof and front wall were damaged when the tree fell on the house.
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