INSURANCE ADJUSTER EXAM

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INSURANCE ADJUSTER 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: What is the requirement to serve as Chief Deputy in Georgia?

Answer:

must have a bond in the amount of $15,000 Question 2: Which of the following statements are true concerning requirements of the standard fire policy?

Answer:

The insured must separate damaged from undamaged property in the event there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of loss with the insurer

Question 3: Surplus Lines Risk

Answer:

has been rejected by 3 authorized insurers Question 4: It is assumed that any oral agreements made before contract formation were incorporated into the written contract. Once formed, earlier oral evidence will not be admitted in

court to change or contradict the contract. This is known as:

Answer:

Parol Evidence Rule

Question 5: A fire burning in the middle of the living room would be considered:

Answer:

a hostile fire

Question 6: Coverage A-Dwelling covers which of the following?

Answer:

Materials located next to the residence for use in the construction of the dwelling Question 7: the insuring agreement summarizes the insurers obligations and conditions for loss payment. Which of the following is/are types of insuring agreements?

Answer:

open peril policy Question 8: Which of the following is covered by an insured's auto property damage liability insurance?

• damage to the insured's car by collision
• breakage of the insured's windshield
• damage to property of others caused by insured's negligence
• theft of the insured's car

Answer:

• damage to the property of others caused by the insured's negligence

Question 9: Which of the following losses would be covered by Other-Than-Collision Coverage under an automobile policy?

• mechanical breakdown
• hail
• wear and tear
• upset

Answer:

b) Hail

Question 10: If the named insured allows his son to use one of the vehicles covered under the personal auto policy (PAP), is the son an insured under the PAP even though he does not reside in the insured's household?

Answer:

Yes, because the definition of "insured" includes any person using the named insured's covered auto Question 11: Which of the following causes of loss is covered by Other-Than-Collision Coverage written under a Personal Auto Policy?

• freezing
• electrical breakdown
• vandalism damage to tires
• upset

Answer:

vandalism damage to tires Question 12: property and liability insurers use different marketing methods. Which of the following are features of the independent agency system?

Answer:

Agents can represent one or more insurers AND Agent owns renewal rights to policies Question 13: temporary contract of insurance that commits the insurer before before a policy is

issued is called a:

Answer:

binder Question 14: Part C- Uninsured coverage, is:

Answer:

required to be offered by insurance companies, but the insured can reject it Question 15: The condominium form HO-6 provides no dwelling coverage but provides the same coverage as what other form for personal property?

Answer:

HO-2 (they're both Broad Form named perils)

Question 16: All of the following types of personal property on each homeowner form are

subject to a special limit of liability of $1,500, except:

• watercraft
• trailers
• securities, accounts, deeds
• firearms

Answer:

• firearms ($2500)

Question 17: which of the following is not an element for the formation of a valid contract?

• consideration
• legal purpose
• agreement
• incompetent parties

Answer:

• incompetent parties

Question 18: which of the following is true with respect to automobile medical payments?

Answer:

coverage applies to reasonable expenses incurred within 3 years from the date of accident for necessary medical and related services Question 19: Is there a limit on the number of terms an insurance commissioner can serve?

Answer:

No Question 20: Which of the following best outlines the intent of automobile liability insurance?

Answer:

To pay on behalf of the insured, all sums which the insured shall become legally obligated to pay as damages caused by accident and arising out of the ownership, or use of the automobile