NEW HAMPSHIRE ADJUSTER EXAM PREP: SERIES 12 -75

NEW HAMPSHIRE ADJUSTER EXAM PREP: SERIES 12 -75

NEWEST ACTUAL 2/ QUESTIONS WITH UPDATED

ANSWERS VERIFIED/GRADED A++

Sandra rear-ended Randy's car when he stopped quickly for a yellow light that she was sure they were both going to make.The damage was minor, but Sandra was worried her premiums would increase if the accident was reported, so she gave Randy $500 in an effort to keep it just between the two of them. However, Randy filed the claim with his insurance company and received a settlement check for $750. What has Randy violated?

• The principle of insurable interest
• The principle of subrogation
• The principle of indemnity
• The principle of loss minimization
• The principle of indemnity

Scott is visiting his insurance agent's office and applying for auto insurance on his new car. The auto policy that the agent drafts will be based on Scott's ________.

• warranties
• promises 1 / 4

• subrogation
• representations
• representations

Which of the following statements about insurable interest is

FALSE?

• Dean has insurable interest in the city's power transformer

that supplies power to the homes on his street because damage to the transformer would leave Dean without power.

• Mark has insurable interest in the company that he co-owns

with his partner, Aaron.

• Mary has insurable interest in Barry's life because Barry's

death would cause Mary economic hardship.

• The bank has insurable interest in Wilson's home, for which

it holds the mortgage.

• Dean has insurable interest in the city's power transformer

that supplies power to the homes on his street because damage to the transformer would leave Dean without power.

Darren's SUV cost him $28,500 when he bought it new five years ago, but it would cost $29,600 to replace it today. The vehicle has an annual depreciation of $1,200. Darren loses control while driving too fast around a bend in the road and flips his vehicle, totaling it. Assuming Darren's auto insurance 2 / 4

policy pays ACV, how much can he expect to receive in indemnification for this claim?ACV= Replacement Value-Total Depreciation $29,600-($1,200x5yrs)

A. $29,600

B. $23,600

C. $22,500

D. $27,300

B. $23,600

Susan is a successful plastic surgeon and wants to purchase liability insurance. Her husband, a teacher, is part of a risk retention group and is quite happy with his insurance. Susan decides to apply to her husband's group, but her application is

denied. This is because:

• Susan's business is not similar to that of her husband's
• Susan has not owned her own business for more than two

years

• Surgeons cannot be members of a risk retention
• Risk retention groups do not typically provide liability

insurance

• Susan's business is not similar to that of her husband's
• / 4

Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house was struck by lightning and the current fried her TV. The TV depreciates at $400 per year and a similar TV costs $1,200 today. Assuming Roxanne's homeowners policy has a replacement cost endorsement for personal property, how much can she expect to receive in indemnification for her damaged TV?Replacement Cost= Current Cost-[Original Purchase Cost-(Total Depreciation] $1,200-[$2,400-($400x4yrs)]

A. $2,400

B. $200

C. $600

D. $1,200

B. $200

It is important to use the correct units of measurement when documenting damage to a structure in an estimate. Which of the following is TRUE with regards to units of measure?

• Siding is measured in squares; trim is measured in linear

feet

• Siding is measured in linear feet; trim is measure in square

feet

• / 4