Auto Adjuster Exam 17-66 Latest Update -

Auto Adjuster Exam 17-66 Latest Update -

Questions and Verified Correct Answers Golden Ticket to Guaranteed A+ Verified by Professor A non-waiver agreement issued by an insurance company is: - CORRECT ANSWER: A coverage issue..

Non-waiver agreements and reservation of rights letters both serve the following general purposes: 1. To advise the insured that any action taken by the insurance company in investigating the cause of loss or in ascertaining the amount of loss is not intended to waive or invalidate any policy condition, and 2. To clarify that the intent of the agreement is to permit an investigation of the claim and that neither the insured nor the insurer will thereby waive any respective rights or obligations.

Adverse selection occurs when: - CORRECT ANSWER: Applicants are accepted by the insurer with little or no attention given to underwriting. .

Insurers must carefully underwrite all risks to avoid being the victim of adverse selection which is the tendency of insureds with a greater-than-average chance of loss to purchase insurance. With adverse selection, the insurer is confronted with the probability of loss due to risks not factored in at the time of sale.

All of the following are covered by the Terrorism Risk Insurance Program Reauthorization Act of 2015, EXCEPT: - CORRECT ANSWER: Commercial Automobile.

Commercial Automobile was covered under the TRIA of 2002, however, with the reauthorization in 2015, it is now excluded. Commercial property, commercial casualty, and workers compensation coverage have been covered since 2002 and are still covered under the 2015 reauthorization.

An insurance professional that is accused of dishonesty or breach of trust involving interstate commerce under the Federal Fraud and False Statement Regulation of the 1 / 2

United States Code (USC 1033) will be prosecuted by: - CORRECT ANSWER: The U.S. Attorney general.

Before revoking or suspending a license, the Superintendent must first send _____

notice and give the accused an opportunity for a hearing. - CORRECT ANSWER: 10

days

If any person engages in activities in violation of the Federal Insurance Fraud and False Statements regulation, he or she may be subject to which of the following? - CORRECT

ANSWER: A civil penalty of not more than $50,000

In New York, an insurer settling total auto losses must report the losses to: - CORRECT

ANSWER: The Department of Financial Services.

The Department of Financial Services of New York requires that insurers settling a total auto loss, report the loss information upon completion of the claim.

In order to proceed with subrogation, the insurance company generally: - CORRECT

ANSWER: Takes a subrogation assignment from the insured.

In regards to a personal auto policy, which of the following statements is incorrect? -

CORRECT ANSWER: The maximum amount payable under the Supplementary

Payments is $250.

Supplementary payments provide coverage for expenses incurred by the insurer in the defense of the insured without a limit. No limit is specified for the payment of interest that has accrued as a result of a judgment against the insured. There is a specific limit of $250 for bail bonds and a limit of $200 per day for lost wages as a result of the insured attending hearings etc. in their defense. These payments are in addition to the policy limits of liability.

In which of the following situations should an adjuster consider obtaining a non-waiver

agreement? - CORRECT ANSWER: In dealing with a potential coverage dispute

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