Exam (elaborations)
ADJUSTER PRO PRACTICE EXAM
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ADJUSTER PRO PRACTICE EXAM
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Name: Score:149 Multiple choice questions
Term
Josephine has purchased a Business Owners Policy. She insures both the real and
personal property at 80% under the policy. Assuming no endorsements apply, the
losses will be adjusted on a(n) _______________ basis.
actual cash value
replacement cost
market value
insurable interest1 of 149
Term
Which of the following is NOT true of the Company's Options provision in the
standard fire policy?
Usually a ""last resort"" form of insurance
Water-main breakage
It requires the insurer to settle the claim, in whichever manner it chooses, within 30 days
of receiving notice of the claim
Ken lights a candle, sets it right next to the window draperies and leaves the house to go
to work.2 of 149
Term
All of the following are typical exclusions in an insurance policy, EXCEPT
pipeline
explosion
indemnification
lightning3 of 149 Term
Mark is on vacation in Italy when his luggage is stolen, including a $2,000 laptop, a
$500 suitcase, and $400 in clothes. Mark has an HO-3 homeowners policy. Excluding
any applicable deductible, which of the following statements is TRUE?
A trip transit policy
90-day suspension of her driver's license
A business owners policy offers liability protection.
Mark's homeowners policy will cover $2,400 of this loss.4 of 149
Term
Bobby is adjusting a complicated auto claim. Which of the following is TRUE?
Flora will file a first-party claim for the damage to her car, and Cam will file a third-party
claim for the
damage to his billboard.
Leased business personal property that must be insured
coverage applies to each insured separately, as if no other insured existed.
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.5 of 149
Term
Mark is a college student and frequently needs to either rent a car or borrow his
friend's car. Although he doesn't own a car of his own, he wants to buy himself some
liability coverage that would apply whenever he drives someone else's car. Which
coverage should Mark get?
No-fault Coverage
Mediation
Uninsured Motorist Coverage
Non-Owner Coverage6 of 149 Term
Which of the following statements about the principle of estoppel is TRUE?
Damage the insured causes to his own garage
An employee's laptop which she uses for work
Estoppel protects the insured party from an insurer who initially approves coverage, but
then later
denies coverage after the insured pays for repairs.
Standard Form 257 of 149
Term
Which of the following statements does NOT apply to the Standard Fire Policy?
It pays actual cash value.
It is a named peril policy.
It automatically covers wind and vandalism.
Diminution of value.8 of 149
Term
After a rain storm, Nancy realizes that she left her bedroom windows open the entire
time. Now there is extensive water damage to her area rug and furniture, and the
laptop that had been sitting on her desk is ruined. Nancy has a Broad Form
homeowners policy, so she calls her insurance company and files a claim. What is
the likely result of Nancy's claim?
an indirect loss.
The insurer will not cover any of the damage, since Nancy left the windows open.
the adjuster does not have authority to negotiate for punitive damages.
coverage applies to each insured separately, as if no other insured existed.9 of 149 Term
Driving home from work one night, Judy is pulled over by a state trooper. When Judy
asks why she was stopped, the trooper informs her that her auto insurance has
lapsed. This is Judy's first offense. What penalty will Judy face, if any
the name of the insured party
fire of $500 and suspension of her driver's license for six months
direct primary coverage
90-day suspension of her driver's license10 of 149
Term
The Indiana Commissioner of Insurance has the power to do all of the following,
EXCEPT:
Claim File
Alien Insurer
Domestic Insurer
Foreign Insurer11 of 149
Term
Rachel is filling out an application for a homeowners policy. She is truthfully
answering the questions regarding her home's location, size, age, etc. Which of the
following is a true statement?
A business owners policy offers liability protection.
Rachel is providing representations.
Implied authority.
The property is abandoned.12 of 149
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