INDIANA ADJUSTER PRACTICE EXAM

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INDIANA ADJUSTER PRACTICE EXAM

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: For loss settlement purposes, most homeowners policies:

Answer:

pay for damages to personal property at actual cash value, and damages to structures at replacement cost.Question 2: 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:

Answer:

issue a complaint against the policyholder.Question 3: Clark is filling out an application for an insurance policy. The application asks for his birth date, and Clark writes 1-24-67. His actual birthday is 1-24-63, but he likes to appear

younger so he uses a different date. This would be called:

Answer:

misrepresentation.

Question 4: Which of the following would NOT be covered under Part A of a Personal Auto Policy?

Answer:

• Damage the insured causes to his own garage

Question 5: Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his insurance company and $4,000 from the other driver. By receiving a profit from the loss, Mark

could be in violation of:

Answer:

the principle of indemnity.Question 6: While shopping at Acme, Mark slips and falls on a wet floor, knocking over some shelves, smashing a window, and injuring his knee. The medical costs for Mark's knee surgery total $8,000, and he will live the rest of his life with a limp since his knee may never fully heal.Which of these costs will be most difficult for Acme's insurer and Mark to negotiate?

Answer:

The mental anguish associated with never fully recovering Question 7: Which of the following statements is TRUE of a claim dispute litigated in a state that follows the doctrine of Contributory Negligence?

Answer:

If the plaintiff if found to be at all negligent, she will receive no settlement.Question 8: Which of the following statements apply to subrogation? Select all that apply.

Answer:

1) Subrogation transfers a portion of the rights of the claimant to the insurer.

2) This is designed to keep people from collecting indemnification twice for the same damages.

3) When an insurer indemnifies someone, that person's rights are transferred to the insurer, but only up to the amount that the insurer paid her.Question 9: Jim is out turkey hunting on a private ranch when he hears some movement in the brush. Assuming it's a turkey, Jim raises his shotgun and fires. Unfortunately for Jim, he has not taken a turkey, but has severely injured one of the landowner's calves instead. Jim is

responsible for the cost of the calf because he acted with:

Answer:

negligence.

Question 10: Jerry is using an expensive video recorder near the family pool when he slips and falls in, destroying the camera. Jerry bought the camera three years ago for $4,000, and it depreciates at $500 per year. A new, similar camera costs $5,000 today. Assuming the loss is covered, if Jerry had a replacement cost policy, how much would Jerry's insurer indemnify Jerry for the destroyed camera?

Answer:

$5,000

Question 11: Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car into Sam's. Sam's own insurance company, ABC Insurance, immediately pays him $5,000 for his injuries. Sam then ponders whether to file a $6,000 lawsuit against Nicole.Why can't Sam sue Nicole for the full amount of his injuries?

Answer:

By accepting payment from ABC Insurance, Sam forfeited his right to collect this amount from Nichole.Question 12: The DP-3 is known as the:

Answer:

Special Form.Question 13: Which of the following steps would occur LAST in the processing of a claim?

Answer:

Negotiate a settlement with the claimant Question 14: Greg plays trombone in his school band during football games. During a rally song in the stands one day, Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it down the bleachers, completely destroying it. Greg's insurance pays him $400 to replace the trombone, but then the opposing team's coach also offers to replace the instrument, at whatever the cost. So Greg orders a new $3,200 trombone and has the opposing team's athletic department absorb the cost. Which principle has Greg violated?

Answer:

The principle of indemnity Question 15: There are several terms that are often interchangeable with "endorsements." Which of the following is NOT one of these terms?

• Binders
• Attachments
• Addendums

• Riders

Answer:

• Binders

Question 16: A fiduciary agent must regularly report to the principal. Which of the following is the BEST example of a principal in the context of insurance?

Answer:

An insurer that employs an insurance adjuster to investigate damage claims.Question 17: Which of the following is NOT a characteristic of insurance contracts?

• Aleatory
• Universal
• Conditional
• Unilateral

Answer:

• Universal

Question 18: Jim has two policies that cover the same risk, but they respond differently: Policy X is primary and Policy Z is excess. Policy X has a limit of $50,000 and Policy Z has a limit of $25,000. When Jim suffers an insured loss totaling $62,000, how will each policy respond?

Answer:

Policy X will pay $50,000 and Policy Z will pay $12,000 Question 19: All of the following are typical exclusions in an insurance policy, EXCEPT:

• explosion.
• flooding.
• nuclear hazards.
• earthquakes.

Answer:

• explosion.