PRO-ADJUSTER FINAL TEST.
ACTUAL EXAM {GRADED A+}. // 2024
AUGUST LATEST UPDATE. //
VERIFIED ANSWERS. //
NEW EXAM!!! NEW EXAM!!!
Amy needs more floor space in her antique furniture store, so she buys a
storage building 3 miles away. She is worried about keeping the furniture in the
storage building safe, so she puts in an alarm system and smoke detectors. By
purchasing the alarm system and smoke detectors, Amy is practicing: - ANS✔✔-
risk reduction.
Six Stars Development Company has just been offered a great deal on ten large
properties in Las Vegas. The economy in Las Vegas has been declining recently,
but the CEO of Six Stars expects it to recover soon. This could be an exceptional
opportunity for Six Stars, but it's also pretty risky. Ultimately, the Six Stars
executive team decides not to purchase the properties. This is an example of: -
ANS✔✔-risk avoidance.
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? - ANS✔✔-An implied waiver is one that is assumed based
on someone's actions. When the insurer decided to accept Jason's late premium
payments, it implied that it was waiving its right to cancel Jason's policy because
of a late payment. So, when Jason files a claim, the insurer may not claim that
his policy is void due to late payments.
,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: - ANS✔✔-A
warranty is a guarantee that certain conditions will be met. If the policyholder
violates a warranty, the insurer can void the policy.
Which of the following is an example of a moral hazard? - ANS✔✔-Ken lights a
candle, sets it right next to the window draperies and leaves the house to go to
work.
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: - ANS✔✔-Lucy does not intend to have the necklace stolen. But
leaving it in sight in her car overnight is risky, and she would probably be more
careful if she had no insurance on the necklace. Lucy's behavior is a morale
hazard, since she is unconsciously more willing to take a risk, due to her
insurance coverage.
Inland Marine insurance protects: - ANS✔✔-Inland Marine insurance protects
property being transported.
What is the waiting period for disability benefits under workers' compensation
insurance? - ANS✔✔-The waiting period for disability benefits is 3 days. Benefits
are paid starting on the fourth day after the injury takes place. If the disability
lasts for 21 days or more, the first three days will also be covered.
Which of the following is TRUE about workers' compensation insurance? -
ANS✔✔-WC insurance benefits the employee because work-related injuries are
covered, regardless of who was at fault. It benefits the employer because the
employee loses the right to sue the employer for work-related injuries.
In Alabama, an employee's Average Weekly Wage is: - ANS✔✔-An employee's
Average Weekly Wage is the average amount the employee earned in the last 52
weeks leading up to her injury.
Maria was in the hospital for five days, recovering from a stroke. The bill she
received for her hospital stay broke down the charges for room, lab fees, meals,
and nursing care. However, her insurer paid a flat daily rate and she was left
responsible for paying the remaining charges. What type of insurance does Maria
, have? - ANS✔✔-Hospital Indemnity insurance is a supplemental coverage that
provides a flat amount of indemnification per day for hospitalization.
Residual market insurance programs are primarily designed to meet the needs of
which type of consumer? - ANS✔✔-Residual market insurance programs exist to
serve high-risk consumers.
Which of the following statements best explains why residual market insurance
programs exist? - ANS✔✔-Residual market insurance programs exist to serve
high-risk consumers. These people need insurance, but insurers, who do
business to make a profit, don't have any incentive to insure high-risk
individuals.
What must be proven in order for Time Element Insurance to cover a loss? -
ANS✔✔-In order for Time Element Insurance to cover a loss, the indirect losses
must be the result of a covered direct loss.
When handling a Business Interruption claim, the adjuster must do all of the
following EXCEPT - ANS✔✔-If there is a waiting period, it will be stated on the
Declarations page. However, the adjuster will have to determine what the
business income would have been if the loss didn't occur, what fixed expenses
the business must continue to pay, and the indirect loss of profits or revenue
resulting from a covered peril.
Arlene's house suffered structural damage in an earthquake last year, but her
policy does not cover earthquake damage, so Arlene never got it fixed. When a
tornado rips through her neighborhood, it causes some roof damage totaling
$2,000, and Arlene sees an opportunity in the situation. She files a claim for the
roof damage, but also claims that the tornado caused the structural damage to
her house that was actually caused by the earthquake last year. Which of the
following statements is true? - ANS✔✔-Arlene committed soft fraud
A power surge sparks a small electrical fire in an office building. The electrical
fire triggers the automatic sprinkler system. The water from the sprinklers soaks
the carpets and shorts-out all the computers, causing thousands of dollars in
damage. What is the proximate cause of the loss? - ANS✔✔-The power surge
caused the fire, which caused the sprinklers to go off, which led to the water
damage to the office and computers. Since there is an unbroken chain of events
starting with the power surge, the power surge is the proximate cause of all the
other damages.
