ADJUSTER PRO EXAM QUESTIONS

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ADJUSTER PRO EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Define: Workers' compensation law

Answer:

Keeps employees from suing their employers for injuries Question 2: Define: Common law

Answer:

Based on court cases and customs Question 3: Define: Liability insurance

Answer:

Protects policyholders when they cause damage or injuries to another party Question 4: John has purchased a homeowners insurance policy with a percentage deductible based on the total limit of insurance for his home. John insures his home for $600,000, and the policy includes a 3% deductible. A huge thunderstorm passes through one night and blows the roof off his house. The insurance company estimates that covered damage totals $80,000. How much indemnification should John expect for the losses to his roof?

A. $80,000

B. $77,600

C. $62,000

D. $18,000

Answer:

C. $62,000

Question 5: Sam's neighbor, Lee is suing him for intentionally cutting down Lee's tree and damaging his gazebo when the tree fell on it. When Sam notifies his insurer of the lawsuit, the insurer issues Sam _____, which gives him fair warning that he may need to prepare his own defense if the insurer finds this case is not covered.

• An answer
• A complaint
• A notice of rights
• A reservation of rights

Answer:

• A reservation of rights

Question 6: What are the duties of the insured?

Answer:

Alert insurer if taken to court Send insurer all information pertaining to the case Question 7: Define: Complaint

Answer:

Filed by a claimant against a policyholder Question 8: Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter ruins

Jackie's laptop during a flight. When they go to court, Jackie is the:

• Tortfeasor
• Plaintiff
• Tort
• Defendant

Answer:

• Plaintiff

Question 9: Joan files a lawsuit against Andy because his dog escaped and caused her to fall on an icy sidewalk. Which of the following statements is FALSE?

• Andy must submit an answer to avoid a default judgment
• Andy's insurer is obligated to defend him in court until it proves that there is no coverage

under the policy in question, or until the suit is settled

• Andy must notify his insurer that he is being taken to court
• Andy's insurer will send Joan a reservation of rights

Answer:

• Andy's insurer will send Joan a reservation of rights

Question 10: Sam is a claimant seeking damages from XYZ Insurance. The XYZ adjuster comes to meet with Sam to hear the circumstances of her injury. The adjuster determines that Sam played an active role in her own injuries, and therefore XYZ Insurance will pay her nothing at all for her injuries. What defense is the adjuster using?

• No negligence
• Comparative negligence
• Contributory negligence
• Full negligence

Answer:

• Contributory negligence

Question 11: Chandler is a photographer who is taking pictures at a reenactment of the Battle of Gettysburg, when Harper (Union Cavalry) crashed through the brush and into Chandler, breaking both his arms and his camera. In court, Chandler demands payment not only for his medical bills and broken camera, but for future lost business; now that he is unable to take pictures for the next 6 months, his clients are moving on and entering into contracts with other photographers. When Chandler speaks of this total amount of all damages that have resulted

and will result from Harper's mistake, he is referring to:

• Reservation of rights

• Diminution of value
• Joint tortfeasors
• Punitive damages

Answer:

• Diminution of value

Question 12: Define: Intentional tort

Answer:

Planned wrongful act Question 13: Jesse's home is worth $200,000 and he has a homeowners policy with a $160,000 limit. After a covered loss, Jesse is left with a total of $10,000 in damages. Assuming the insurer requires the standard 80% level of insurance for coinsurance purposes, and ignoring any deductibles, how much will Jesse receive in indemnification?

A. $9,500

B. $8,000

C. $10,000

• None

Answer:

C. $10,000

Question 14: A few weeks ago Christopher's garage was destroyed by an out-of-control motorist. Fortunately, the motorist had sufficient liability insurance to cover the damages.However, the insurer insists that Christopher's garage is worth far less than the appraisals he has received from contractors. Christopher and the insurer have gone back and forth in negotiations for weeks, making little headway. Christopher decides it's time to:

• Issue a reservation of rights
• Issue a judgment
• Issue a complaint against the policyholder
• Issue an answer for the policyholder

Answer: