ADJUSTER PRO- INSURANCE ADJUSTER TEST 2023-
2024 REAL EXAM 250+ QUESTIONS AND CORRECT
ANSWERS|AGRADE
Phil runs a locomotive repair business, which is insured under a commercial
property policy. One night, some blasting powder is accidentally ignited and
blows a crowbar through one of the engines. No one is hurt, but the
locomotive is severely damaged. Which coverage option may help cover the
cost of repairing the engine from this unfortunate event?
Legal Liability Coverage
Law and Ordinance, also known as Code Upgrade Coverage, covers which of
the following expenses?
The cost of repairs or upgrades done to meet new building codes
Which of the following perils is excluded from coverage in a National Flood
Insurance Program policy?
Water-main breakage
Logan has a small plane that he enjoys flying on the weekends, but he never
takes friends or passengers with him. Which of the following is TRUE?
Logan should buy Bodily Injury Excluding Passengers and Property Damage
Liability, but he doesn’t need to spend the money on Passenger Bodily Injury
Liability.
Which of the following statements about the Standard Flood Insurance Policy
is FALSE?
It is subject to state courts
In Ocean Marine insurance, this clause appropriates the loss to one company,
rather than spreading the loss among all cargo owners.
Particular Average
Which of the following situations does NOT involve an insurable risk?
Dale just bought 30 shares of a hot new startup company online.
An insurance contract is an agreement between two parties where each side
promises to be truthful, factual, and honest about their respective positions.
Therefore, an insurance contract is said to be a contract of:
utmost good faith.
Once a claimant files a complaint to the court, the claimant will become the
plaintiff
Which of the following is NOT a characteristic of insurance contracts?
Universal
Strict liability
holds a person liable for his actions regardless of how much care he demonstrates.
Which of the following best describes who adjusters can work for?
Either insurers or claimants
What is one thing that an adjuster is not able to negotiate about?
Punitive damages
Which of the following statements does NOT apply to the Standard Fire
Policy?
It automatically covers wind and vandalism
Which of the following is NOT true of Personal Injury Protection?
Pip is usually secondary coverage
Which statement BEST describes Umbrella coverage?
Excess liability insurance that can also provide additional coverages not provided
by the base policy
Which statement BEST describes the “Follow Form” in excess liability
coverage?
Excess liability insurance that “follows” the base insurance policy to the letter
When Emma’s house was burglarized, the thieves stole several pieces from
her art collection. Although the pieces were only prints, Emma files a claim
stating that they were originals, and therefore worth a good deal more than
they really are. What has Emma committed?
soft fraud
Bill holds a hull policy for his cargo ship which sails between China and the
United States, transporting wooden toys. On voyage (i) his vessel is damaged
by pirates. On voyage (ii) the vessel is damaged by striking employees. On
voyage (iii) the vessel is destroyed when it strays into a war zone and is struck
by a missile. Bill’s losses will be covered by his hull coverage for which of
these voyages?
i. only
Which of the following statements about MPCI is FALSE?
MPCI is a form of crop-revenue insurance.
Disability payments through workers’ compensation insurance are primarily based
on:
…
Martin regularly travels much of the state for work, so his employer has given
him a company car. Which endorsement to Martin’s PAP would provide him
with liability coverage for the company car?
Extended non owner
Lemon Insurance Co. decides not to renew Hugh’s Personal Auto policy,
which is set to expire on May 31. Which of the following statements is TRUE?
lemon Insurance must notify Hugh at least 45 days before the policy expires.
What is the most common type of Time Element Insurance?
Business Interruption Insurance
Which of the following homeowners policies provide coverage on an openperil basis for personal property without endorsement?
HO-5
In a Commercial Crime policy, a “messenger” is defined as:
the insured, a business partner, or an employee who has care or custody of insured
property inside the premises, excluding anyone acting as a watchperson or janitor
After a loss covered under a dwelling policy, Ordinance or Law coverage pays
for:
increased repair costs due to laws or codes.
Which of the following is NOT one of the requirements that a “Fast Food
Restaurant” business must meet in order to qualify for a BOP?
Liquor must not account for more than 25% of total annual sales.
Bonnie’s PAP includes Comprehensive coverage. Which of the following
losses could this coverage pay for?
Bonnie’s car catches on fire
A typical workers’ compensation policy combines two basic forms of coverage.
They are:
Workers’ Compensation and Employers Liability ??
Which of the following statements about Crop-Hail insurance is FALSE?
It is generally available from private insurers. ??
During a severe windstorm, a large tree in Jeff’s yard was blown down and
two large bushes were ripped from the ground. Jeff has an HO-3. What is the
maximum amount that Jeff can receive for the replacement of the tree and
bushes that were damaged by the windstorm?
$1500
Which of the following is NOT true of the Company’s Options provision in the
standard fire policy?
…
After an earthquake, Jake’s home is still standing, but it is a little shaken. The
damage is not extensive, but Jake wants to cash in on the situation, so he takes
a sledgehammer to some of his extra belongings and adds them to his claim.
Jake has committed:
property Insurance fraud