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AdjusterPRO Final Exam Questions And Answers 100% Pass.

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AdjusterPRO Final Exam Questions And Answers 100% Pass. -+What is a reserve, in insurance terms? - answerA pool of collected premiums that the insurer sets aside to pay claims Which of these scenarios is NOT an example of indemnification? - answerWhen trying to renew her dog's license, Ellen h...

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©BRIGHTSTARS EXAM SOLUTIONS
10/22/2024 12:14 PM

AdjusterPRO Final Exam Questions And
Answers 100% Pass.

-+What is a reserve, in insurance terms? - answer✔A pool of collected premiums that the insurer
sets aside to pay claims

Which of these scenarios is NOT an example of indemnification? - answer✔When trying to
renew her dog's license, Ellen has to pay a penalty to the city for letting its rabies vaccination
lapse.
Ellen having to pay a fine is not an example of indemnification. Indemnification means being
restored to the financial condition you were in before a loss. In three of these situations, someone
experienced a loss and was then "made whole": Joe-Bob's neighbor lost his TV, Alice lost her
house, and Hugh lost the use of his car. But in the case of Ellen's dog, the city did not experience
a loss; it simply imposed a penalty to teach Ellen a lesson about keeping up with her dog's shots.
Greg plays trombone in his school band during football games. During a rally song in the stands
one day, Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it
down the bleachers, completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the opposing team's coach also offers to replace the instrument, at whatever
the cost. So Greg orders a new $3,200 trombone and has the opposing team's athletic department
absorb the cost. Which principle has Greg violated? - answer✔The principle of indemnity

Which of the following statements is true about an insurance policy? - answer✔It relies on the
utmost good faith of both the insured and the insurer

An insurance policy relies on the utmost good faith of both the insured and the insurer.
Which of the following would you find in the Conditions section of an insurance policy? -
answer✔The insured's duty after a loss
In which section of an insurance policy might you find the following statement? "Damage to
insured property must be reported within 15 days of the damaging occurrence." -
answer✔Conditions

, ©BRIGHTSTARS EXAM SOLUTIONS
10/22/2024 12:14 PM

A captive insurance company: - answer✔exists solely to provide insurance for its parent
company.
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly traded
company, and Cindy can participate in the election of the board, receiving dividends if the
company does well. Sine Nomine Insurance could be best described as a: - answer✔Sine Nomine
Insurance is a mutual insurance company.
When an insurer issues an insurance policy, the actual item, person, or organization that is being
insured is called the: - answer✔risk.

Which of the following is a hazard? - answer✔A driver's tendency to text while driving

Which of the following situations does NOT involve an insurable risk? - answer✔Dale just
bought 30 shares of a hot new startup company online.

Which of the following situations does NOT involve an instance of "pure risk?" - answer✔Loss
of money invested in the stock market

Which of the following is an insurable risk? - answer✔football stadium

Risk avoidance is a risk management technique that: - answer✔eliminates risk.
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: - answer✔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: - answer✔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? - answer✔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.

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