CT Adjuster Exam Practice Questions
And 100% Solved Solutions.
Riley's coupe is insured with a personal auto policy that includes liability, uninsured motorists, and other-
than-collission coverages. He buys a new sedan and wants collission coverage on it. Which statement is
true about this coverage? - Answer He must notify the insurer about the newly acquired sedan within
four days.
Because Riley's coupe does not have collission coverage, he must report the newly acquired sedan to his
insurer within four days of its acquisition to get collision coverage for it.
Dairy products in Bette's ice cream shop would be destroyed if her freezers failed for more than a few
hours. So Bette added the utility services-direct damage endorsement, scheduling overhead
transmission lines, to her businessowners policy. When the shop losses electrical power due to a
mechanical breakdown of the utility company's equipment: - Answer Bette's loss will not be covered
because mechanical breakdown is not a covered peril
For coverage to apply, the service interruption must result from damage to utility company property
caused by a covered cause of loss. Mechanical breakdown is not a covered peril.
An imposter pretends to be Barbara, the president of a succesful company, while engaging in scandalous
activities. These activities attract media attention and threaten the firm's reputation. So Barbara spends
$5,000 on advertisements to preserve this reputation. How will Barbara's businessowners policy address
this expense? - Answer it covers this expense if the identity fraud expense coverage endorsement is
attached.
The identity fraud expense coverage endorsement adds a $5,000 limit for advertising expenses to restore
a business reputation.
Maurice's personal auto policy (PAP) on the family car lists him as the named insured. His wife, Sondra, is
involved in an accident while using the car as a charity organization volunteer. The injured paties sue
Maurice, Sondra, and the charity organization. Which is insured under the policy's liability coverage? -
Answer Maurice, Sondra, and the Charity Organization
, Sondra is a named insured by virtue of her marriage to Maurice, who is named in the policy. Charity
Orgranization is an insured because it may be held liable for an insured's use of the named insured's
covered auto.
Jeffrey has violated a cease and desist order of the Commissioner. After notice and hearing, what is the
maximum amount he may be fined? - Answer $50,000 for each violation
An individual who violates a cease and desist order of the Commissioner may be fined up to $50,000
dollars for each violation or may have his or her license suspended or revoked.
What does an insurance company require from an insured before it will determine whether the policy
covers a loss? - Answer Proof of Loss Statement
An insured's proof of loss statement is required by an insurance company before it will determine
whether the policy covers the loss.
Which of the following provides an insurance company with a fairly accurate means of determining the
likelihood of a particular event occurring? - Answer The law of large numbers
Because it is based on a large number of independent occurences of a simlar nature, the law of large
numbers allows insurers to determine the probability that actual losses will equal expected losses.
Claudette's home is flooded. Assuming her homeowners policy would cover at least part of the damage,
she submits a claim. In verifying coverage, Ira-the adjuster assigned to Claudette's claim- discovers that
she did not have flood insurance, and here claim is therefore not covered. Under the circumstances, Ira
should - Answer explain to Claudette why her claim is being denied
The adjuster is obligated to explain why a claim is denied.
Adrian leaves his workbench to help a customer. When he returns, he discovers that his soldering iron
has fallen into a wastebasket and started a fire. Adrian rents his shop and has a businessowners policy
with only business personal property and liability coverage. Why will his BOP cover the landlord's claim
for damage to the building? - Answer The fire damage was caused by Adrian's negligence
And 100% Solved Solutions.
Riley's coupe is insured with a personal auto policy that includes liability, uninsured motorists, and other-
than-collission coverages. He buys a new sedan and wants collission coverage on it. Which statement is
true about this coverage? - Answer He must notify the insurer about the newly acquired sedan within
four days.
Because Riley's coupe does not have collission coverage, he must report the newly acquired sedan to his
insurer within four days of its acquisition to get collision coverage for it.
Dairy products in Bette's ice cream shop would be destroyed if her freezers failed for more than a few
hours. So Bette added the utility services-direct damage endorsement, scheduling overhead
transmission lines, to her businessowners policy. When the shop losses electrical power due to a
mechanical breakdown of the utility company's equipment: - Answer Bette's loss will not be covered
because mechanical breakdown is not a covered peril
For coverage to apply, the service interruption must result from damage to utility company property
caused by a covered cause of loss. Mechanical breakdown is not a covered peril.
An imposter pretends to be Barbara, the president of a succesful company, while engaging in scandalous
activities. These activities attract media attention and threaten the firm's reputation. So Barbara spends
$5,000 on advertisements to preserve this reputation. How will Barbara's businessowners policy address
this expense? - Answer it covers this expense if the identity fraud expense coverage endorsement is
attached.
The identity fraud expense coverage endorsement adds a $5,000 limit for advertising expenses to restore
a business reputation.
Maurice's personal auto policy (PAP) on the family car lists him as the named insured. His wife, Sondra, is
involved in an accident while using the car as a charity organization volunteer. The injured paties sue
Maurice, Sondra, and the charity organization. Which is insured under the policy's liability coverage? -
Answer Maurice, Sondra, and the Charity Organization
, Sondra is a named insured by virtue of her marriage to Maurice, who is named in the policy. Charity
Orgranization is an insured because it may be held liable for an insured's use of the named insured's
covered auto.
Jeffrey has violated a cease and desist order of the Commissioner. After notice and hearing, what is the
maximum amount he may be fined? - Answer $50,000 for each violation
An individual who violates a cease and desist order of the Commissioner may be fined up to $50,000
dollars for each violation or may have his or her license suspended or revoked.
What does an insurance company require from an insured before it will determine whether the policy
covers a loss? - Answer Proof of Loss Statement
An insured's proof of loss statement is required by an insurance company before it will determine
whether the policy covers the loss.
Which of the following provides an insurance company with a fairly accurate means of determining the
likelihood of a particular event occurring? - Answer The law of large numbers
Because it is based on a large number of independent occurences of a simlar nature, the law of large
numbers allows insurers to determine the probability that actual losses will equal expected losses.
Claudette's home is flooded. Assuming her homeowners policy would cover at least part of the damage,
she submits a claim. In verifying coverage, Ira-the adjuster assigned to Claudette's claim- discovers that
she did not have flood insurance, and here claim is therefore not covered. Under the circumstances, Ira
should - Answer explain to Claudette why her claim is being denied
The adjuster is obligated to explain why a claim is denied.
Adrian leaves his workbench to help a customer. When he returns, he discovers that his soldering iron
has fallen into a wastebasket and started a fire. Adrian rents his shop and has a businessowners policy
with only business personal property and liability coverage. Why will his BOP cover the landlord's claim
for damage to the building? - Answer The fire damage was caused by Adrian's negligence
