Insurance adjuster Exam-Questions Solved 100%
Correct| Verified Solutions-Newest 2025
ABC Masonry, Inc has an aggregate liability policy with limits of 100, 000/300,000. One
day, an accident at a construction site leads to 150,000 in damage to public property.
Assuming the cause of the loss is covered under ABC Masonry's liability policy, how will
this claim be paid. - ✔✔Since the per-occurrence limit is only 100,000 that's all the
insurer will pay. This payment reduces the aggregate to 2000,000 and leaves 50,000 that
ABC Masonary is responsible for paying
Split Limits - ✔✔Establishes the 3 different limits on how much the policy will pay
out. (Body injury, body injury for each person, and property damage)
Aggregate limits - ✔✔Typically found in commercial liability policies. Establishes 2
liability limits; max payout per occurrence. Maximum payout per policy period
Joe's homeowners policy has a single limit of 150,000 for bodily injury liability coverage.
One day, joes friend was injured in an accident on Joes property and the medical billls
came to 15,000, which were covered by Joe's homeowners policy. Which of the
following is true? - ✔✔Single limits apply to the maximum payout of the insurance
policy for any on occurrence or incident. They are not aggregate limits, so the policy will
still pay up to 150,000 for any other covered bodily injury occurrence.
Sarah is playing with a basketball on the stairs at Bobs house. In doing so, she trips, falls,
and breaks her leg. She files a claim against bobs insurance policy for her injuries. The
adjuster determines that Sarah was 50% responsible for her own injuries, and therefore
should only receive indemnification for 50% of her medical bills. What defense is the
adjuster using. - ✔✔Comparative negligence; when the insurer only offers partial
indemnification arguing that the claimant is partially responsible for their injuries
Statutory Law - ✔✔Based on written laws(eg state. Legislature)
, Common law - ✔✔Based on court decisions and customs when statutory does not
provide an answer
Tort Law - ✔✔Any civil wrongdoing, whether intentional or unintentional
Tortfeasor - ✔✔The person accused of committing a tort/crime; better known as the
defendant
Joint Tortfeasors - ✔✔A group of two or more persons accused of committing a tort
A ____ is a law set forth by a governing body such as a state or city - ✔✔Statutory
law; includes federal laws, state laws, and city laws
Jurisdiction - ✔✔
Reservations of rights - ✔✔When the circumstances of a lawsuit or a claim may not
be covered under the policy, the insurer will issue a reservation of rights
Non-waiver agreement - ✔✔Used when the insurer think coverage may not apply to
a claim; has to be signed by the policyholder. It states that the insurer may continue to
investigate a claim, but that it still keeps its rights to deny coverage
When would a default judgment occur - ✔✔When the defendant does not answer a
complaint; A default judgment allows the claimant to collect the full requested damages
Compensatory Damages - ✔✔Money awarded for tangible and intangible (special
and general)
Correct| Verified Solutions-Newest 2025
ABC Masonry, Inc has an aggregate liability policy with limits of 100, 000/300,000. One
day, an accident at a construction site leads to 150,000 in damage to public property.
Assuming the cause of the loss is covered under ABC Masonry's liability policy, how will
this claim be paid. - ✔✔Since the per-occurrence limit is only 100,000 that's all the
insurer will pay. This payment reduces the aggregate to 2000,000 and leaves 50,000 that
ABC Masonary is responsible for paying
Split Limits - ✔✔Establishes the 3 different limits on how much the policy will pay
out. (Body injury, body injury for each person, and property damage)
Aggregate limits - ✔✔Typically found in commercial liability policies. Establishes 2
liability limits; max payout per occurrence. Maximum payout per policy period
Joe's homeowners policy has a single limit of 150,000 for bodily injury liability coverage.
One day, joes friend was injured in an accident on Joes property and the medical billls
came to 15,000, which were covered by Joe's homeowners policy. Which of the
following is true? - ✔✔Single limits apply to the maximum payout of the insurance
policy for any on occurrence or incident. They are not aggregate limits, so the policy will
still pay up to 150,000 for any other covered bodily injury occurrence.
Sarah is playing with a basketball on the stairs at Bobs house. In doing so, she trips, falls,
and breaks her leg. She files a claim against bobs insurance policy for her injuries. The
adjuster determines that Sarah was 50% responsible for her own injuries, and therefore
should only receive indemnification for 50% of her medical bills. What defense is the
adjuster using. - ✔✔Comparative negligence; when the insurer only offers partial
indemnification arguing that the claimant is partially responsible for their injuries
Statutory Law - ✔✔Based on written laws(eg state. Legislature)
, Common law - ✔✔Based on court decisions and customs when statutory does not
provide an answer
Tort Law - ✔✔Any civil wrongdoing, whether intentional or unintentional
Tortfeasor - ✔✔The person accused of committing a tort/crime; better known as the
defendant
Joint Tortfeasors - ✔✔A group of two or more persons accused of committing a tort
A ____ is a law set forth by a governing body such as a state or city - ✔✔Statutory
law; includes federal laws, state laws, and city laws
Jurisdiction - ✔✔
Reservations of rights - ✔✔When the circumstances of a lawsuit or a claim may not
be covered under the policy, the insurer will issue a reservation of rights
Non-waiver agreement - ✔✔Used when the insurer think coverage may not apply to
a claim; has to be signed by the policyholder. It states that the insurer may continue to
investigate a claim, but that it still keeps its rights to deny coverage
When would a default judgment occur - ✔✔When the defendant does not answer a
complaint; A default judgment allows the claimant to collect the full requested damages
Compensatory Damages - ✔✔Money awarded for tangible and intangible (special
and general)
