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State Insurance Claims Adjusters Certification 2024-
2025
Insurance Claims Adjuster License Exam
Comprehensive Review Questions and Answers | 100%
Pass Guaranteed | Graded A+ |
Read All Instructions Carefully and Answer All the
Questions Correctly Good Luck: -
Insurance Defined; The Laws of large numbers;
The Principle of Indemnity; Insurable Interest;
The Principle of Risk; Peril vs Hazard; Risk
Management; Underwriting; Reinsurance
1: Which of the following best demonstrates a moral
Hazard? - =Answer>> A recent purchaser of auto
insurance drives less carefully, knowing that the insurer
will cover any losses that occur
2: Risk is best defined as: - =Answer>> An
uncertainty of a loss
3: Which of the following is most likely to be
uninsurable? - =Answer>> The purchaser of a new
home wants to protect herself from a possible drop in
housing prices
4: Which of the following most accurately describes
reinsurance - =Answer>> When an insurance
company buys insurance for some of the risks for which
it has issued coverage
5: The attempt to restore an insured to his or her
financial condition before a loss occurred is best
describes as - =Answer>> Indemnification
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6: A risk where both profit and loss are possible is
known as - =Answer>> Speculative
7: Which of the following is a true statement regarding
the Law of Large Numbers - =Answer>> The L of L #'s
states that as the number of insured unit's increases,
the ability to predict losses increase
8: Which of the following is true regarding pure and
speculative risks - =Answer>> With pure risk there is
only the possibility of loss
9: An insurance contract must comply with the
"Principle of Indemnity" Jarron's friend Nick accidentally
destroys Jarron"s laptop computer. Nick pays Jarron for
the damages, but Jarron also submits a claim to his
insurance company for the laptop. The claim will be: -
=Answer>> Denied because Jarron has already been
paid for the damage
10: Which of the following would be an example of a
moral hazard? - =Answer>> Embezzlement
11: Adverse selection occurs when - =Answer>>
Applicants are accepted by the insurer with little or no
attention given to underwriting
12: A church has had the woodwork in the building
refinished and new stain and varnish has been applied.
The workers placed the rags and brushes that were
used to apply the varnish in a small closet and closed
the door, creating the possibility of spontaneous
combustion. Which of the following terms best
describes this condition? - =Answer>> Hazard
13: Meg has been in very good health in the past 3
years. She has been exercising, her blood pressure is at
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a perfect level and her cholesterol is the envy of all her
friends. Because Meg is feeling so healthy, she decides
to cancel her health insurance policy. This is an
example of which of the following risk management
methods - =Answer>> Risk retention
14: Which of the following statements is not true
concerning the Law of Large numbers? - =Answer>>
The size of the sample group is not relevant to the
accuracy of the results
15: Which of the following is not a hazard -
=Answer>> A fire started in a wastebasket
16: Max lives in a large apartment complex where there
is no guard station or gate. Several hundred people live
in the complex so it's very easy to determine the work
schedules of the neighbors living around him. One
morning Max leaves for work at 6:30am as he usually
does, but he forgets to lock the front door. Later that
morning someone comes into the apartment and steals
Max's computer. What was the peril in this situation? -
=Answer>> The theft of the computer
17: Horatio is a business owner who is part of a
business owners group that is buying old commercial
buildings in their small city and refurbishing them.
Horatio has bought a beautiful historical building made
mostly of wood. He knows that he should install a
sprinkler system right away to prevent a fire. What risk
management strategy is Horatio using? - =Answer>>
Risk reduction
18: All of the following are characteristics of an
insurable risk, EXCEPT? - =Answer>> The loss must
be catastrophic in nature
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