NEW HAMPSHIRE ADJUSTER EXAM PREP: SERIES 12-75 QUESTIONS WITH CORRECT UPDATED ANSWERS GRADED A++
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NEW HAMPSHIRE ADJUSTER EXAM PREP: SERIES 12-75 QUESTIONS WITH CORRECT UPDATED ANSWERS GRADED A++
Which of the following best defines "insured"?
A. Transfer of the risk of financial loss from one party to another
B. A legally binding contract in which the insurance company agrees to pay for...
NEW HAMPSHIRE ADJUSTER EXAM PREP: SERIES
12-75 QUESTIONS WITH CORRECT UPDATED
ANSWERS GRADED A++
Which of the following best defines "insured"?
A. Transfer of the risk of financial loss from one party to another
B. A legally binding contract in which the insurance company agrees to pay for
specified losses in exchange for premiums
C. An individual or organization that pays premiums in exchange for financial
protection
D. A company, group, or government agency offering financial protection
C. An individual or organization that pays premiums in exchange for financial protection
What are the four requirements of a legally binding contract?
A. Agreement, consideration, character, signatures
B. Authority, character, competent parties, legal purpose
C. Authority, consideration, signatures, legal purpose
D. Agreement, consideration, competent parties, legal purpose
D. Agreement, consideration, competent parties, legal purpose
Darnell is applying for auto insurance with his agent. Currently, he only wants to
get a minimal amount of coverage to keep his premiums as low as possible, so he
decides not to include uninsured motorist coverage on his policy. His agent has
him sign a document giving up his right to this coverage. What is this called?
A. A warranty
B. An express waiver
,C. A binder
D. An implied waiver
B. An express waiver
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called:
A. risk avoidance
B. insurance
C. indemnification
D. subrogation
B. insurance
tom purchases a new car from his local car dealer. he also decides to get
insurance coverage that will pay to repair the car if he were to get into an
accident. this is because tom wants to protect:
A. his own financial interest in the car
B. other drivers on the road
C. his insurance company's profit margins
D. any passengers who ride in his car
A. his own financial interest in the car
Skip's Convenience Store must agree to install and maintain an emergency
shutoff system for its gas pumps in order to qualify for insurance coverage.
Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the policy
B. This requirement is a warranty found in the conditions section of the policy
C. This requirement is a warranty found in the declarations section of the policy
D. This requirement is a representation found in the declarations section of the
policy
B. This requirement is a warranty found in the conditions section of the policy
,In an insurance contract, the policyholder gives the insurer _____, and the insurer
gives the policyholder____.
A. covered property; a risk pool
B. premium payments; peace of mind
C. peace of mind; risk
D. a surety; premium payments
B. premium payments; peace of mind
When an insured signs a document acknowledging that he gives up his right to a
certain coverage, such as uninsured motorist coverage in an auto policy, this is
called:
A. an express waiver
B. an implied waiver
C. a warranty
D. an estoppel
A. an express waiver
Sandra rear-ended Randy's car when he stopped quickly for a yellow light that
she was sure they were both going to make. The damage was minor, but Sandra
was worried her premiums would increase if the accident was reported, so she
gave Randy $500 in an effort to keep it just between the two of them. However,
Randy filed the claim with his insurance company and received a settlement
check for $750. What has Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization
C. The principle of indemnity
Scott is visiting his insurance agent's office and applying for auto insurance on
his new car. The auto policy that the agent drafts will be based on Scott's
, ________.
A. warranties
B. promises
C. subrogation
D. representations
D. representations
Which of the following statements about insurable interest is FALSE?
A. Dean has insurable interest in the city's power transformer that supplies power
to the homes on his street because damage to the transformer would leave Dean
without power.
B. Mark has insurable interest in the company that he co-owns with his partner,
Aaron.
C. Mary has insurable interest in Barry's life because Barry's death would cause
Mary economic hardship.
D. The bank has insurable interest in Wilson's home, for which it holds the
mortgage.
A. Dean has insurable interest in the city's power transformer that supplies power to the
homes on his street because damage to the transformer would leave Dean without
power.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would
cost $29,600 to replace it today. The vehicle has an annual depreciation of $1,200.
Darren loses control while driving too fast around a bend in the road and flips his
vehicle, totaling it. Assuming Darren's auto insurance policy pays ACV, how
much can he expect to receive in indemnification for this claim?
ACV= Replacement Value-Total Depreciation
$29,600-($1,200x5yrs)
A. $29,600
B. $23,600
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