Louisiana P&C Adjuster Exam Prep: Series 204 100% Correct
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Course
LOUISIANA CLAIM ADJUSTER
Institution
LOUISIANA CLAIM ADJUSTER
What are the four requirements of a legally binding contract? - ANSWER Agreement, consideration, competent parties, legal purpose
Jim applied for a homeowners policy with his agent, who gave him immediate temporary coverage. However, after checking Jim's background information, his agent discove...
Louisiana P&C Adjuster Exam Prep:
Series 204 100% Correct
What are the four requirements of a legally binding contract? - ANSWER Agreement,
consideration, competent parties, legal purpose
Jim applied for a homeowners policy with his agent, who gave him immediate temporary
coverage. However, after checking Jim's background information, his agent discovers
that Jim has been convicted of arson, so she declines his application. Which of the
following best describes Jim's failure to mention his conviction during the application
process? - ANSWER Concealment
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: -
ANSWER an express waiver.
Natalie's brakes have been squealing for several months. Every time she drives her car,
she's reminded that she needs to have them replaced, but she forgets all about it as
soon as she gets out of the car. Natalie's actions can be considered a: - ANSWER
physical hazard.
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives
the policyholder ______. - ANSWER premium payments; peace of mind
Ronald always drives with his windows rolled down because he loves the feeling of the
wind in his hair. However, he often forgets to roll his windows up when he gets out of
the car. Of course, this behavior makes it easier for thieves to steal his belongings from
the car, but Ronald can't help being forgetful. Ronald's behavior would be considered a:
- ANSWER morale hazard.
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? - ANSWER This requirement is a warranty found in the
conditions section of the policy.
Insurance policies are aleatory contracts. This means: - ANSWER they depend on an
unknown future event.
In an insurance policy, where might one find the following statement? "The insured must
make reasonable effort to protect the covered property from further damage." -
ANSWER Conditions
How is concealment distinct from misrepresentation? - ANSWER Concealment is
deliberately withholding information, while misrepresentation is stating a falsehood.
, Oswald can't afford to take his car to a shop, even though it is falling into disrepair. The
windshield has been cracked for some time, and two of the lights are broken, not to
mention the oil leak he noticed last week. While he is driving on icy roads one day, he
loses control and slides into a guardrail, damaging the front bumper. He is upset by the
accident, but then sees an opportunity. He files a claim for the accident, stating that the
windshield, lights, and oil tank were damaged by the collision. Oswald's actions
constitute: - ANSWER soft fraud
If Brigitta applies for insurance, the insurer will probably issue her a temporary policy so
she can be covered while they come to a decision about her application. This is called: -
ANSWER a binder
How is actual cash value calculated? - ANSWER Replacement cost minus total
depreciation
The law of large numbers states that: - ANSWER insuring a greater number of units
increases the accuracy of the insurer's loss predictions.
Chris and Matt are playing a friendly game of one-on-one basketball in Matt's driveway.
When Chris goes up for a slam dunk, Matt accidentally trips him while attempting to
block the shot. Chris lands hard and tears the ACL in his left knee. Matt's homeowners
liability insurance will cover Chris' medical bills because: - ANSWER Matt's actions were
unintentional, but negligent.
All of the following statements are true of liability insurance, EXCEPT: - ANSWER
Liability insurance provides indemnification for the insured.
When Mary leaves her stove on by accident, she starts a fire that destroys her kitchen
and leaves smoke damage throughout her home. While the fire department puts the fire
out, the influx of water causes extensive damage as well. On top of all that, Mary is
forced to board her three dogs at a kennel for several weeks while her house is under
repair. The kennel charge would be considered: - ANSWER an indirect loss.
Which of the following topics would NOT likely be found in the Conditions section of the
Standard Fire Policy? - ANSWER Location of the insured property
Which of the following statements applies to actual cash value? - ANSWER Actual cash
value generally reflects the fair market value of an item.
During a storm, lightning strikes a tree in Norman's back yard, causing it to fall on his
house and damage his roof. In this case, Norman's fallen tree is considered: - ANSWER
a direct loss.
If a claim includes lost wages, an adjuster should: - ANSWER verify the loss with the
employer.
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