KENTUCKY ADJUSTER EXAM PREP

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KENTUCKY ADJUSTER EXAM PREP

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -99 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Controlled Line Floaters

Answer:

-Written on std. provision -Disclose the rates being charged

-General property floaters: personal effects and personal property

-Specific property floaters UNCONTROLLED- NOT STANDARD-can be written as scheduled

Question 2: 5A Flood Definition

Answer:

- general and temp inundation of 2 acres or properties caused by:

Overflow of inland or tidal waters, rapid accumulation of surface waters or runoff, mudflow -Collapse of land along shore of a lake or other body of water which causes overflow of inland waters

Question 3: Endorsements

Answer:

Additions to policy

Question 4: NFIP Independent Adjuster Requirements 5A

Answer:

-Must be NFIP certified -Must complete continuing educations each year

Question 5: 5A NFIP Standard Flood Insurance Policy SFIP

Answer:

-Federal Insurance, not subject to local or state courts, or state departments of Insurance

-NFIP direct: Issued and claims handled by fed. government

Write your own WYO- Private insurers, more efficient, generates 90% policies -5.6 millions Americans, 1 trillion assets

Question 6: 5A NFIP Policy Forms

Answer:

• Dwelling Form

-General Property Form -RCBAP Residential CONDO

Question 7: SFIP Insured's duties 5A

Answer:

Notify insurer, separate damaged from undamaged, Put account books and records in safe place for adjuster, Submit NFIP proof of loss form within 60 days

Question 8: Adjuster code of - Attorneys

Answer:

Claimant has the right to representation by attorney

Question 9: Hangarkeepers Liability Aviation

Answer:

-form of bailee insurance -Covers damage to planes in custody of insured

Question 10: Aviation- Medical Payments Coverage

Answer:

• No-fault coverage
• covers injuries that occur on, or while boarding or exiting, aircraft

-Pays for medical and even funeral costs

Question 11: Categories of Risk

Answer:

• Speculative= any risk in which gain is possible. Not insurable
• Pure Risk= any risk which no gain is possible

Question 12: Four Qualifications of a contract:

Answer:

-Agreement -Consideration -Competent parties -Legal Purpose

Question 13: Loss payee and mortgagee

Answer:

clauses protect lenders interest

Question 14: Inland Marine Instrument. of transportation/communication

Answer:

Uncontrolled form; pays for direct damage or loss of revenue due to covered loss; Covers property directly related to transportation and communication: bridges, tunnels, roads, dams,

Question 15: 5A Flood Insurance Rate Maps FIRMS

Answer:

• Identify flood zones and hazards
• Measurement called "Base Flood" a flood so bad that happens once 100 yrs

- BFE: highest level water reaches

• Help regulate new construction and premiums

Question 16: Umbrella Policy 5c

Answer:

• Can operate like stand alone, also works as primary policy, provides broadest coverage

Question 17: Domestic Motor Truck Cargo

Answer:

-Uncontrolled, protects carrier of shipped goods -Free on Board(FOB) Shipping point: Ownership of/ responsibility for cargo transfers to buyer as soon as cargo leaves shipper -Free or Board- Ownership of / responsibility for cargo transfers to buyer after buyer accepts cargo

Question 18: Inland Marine Personal Property Floater Risks

Answer:

Insurers may write separate forms for specific property coverage; usually coverage for several types of property is combined in a PAF; specifies coverage and premium for each property type; OPEN PERIL,

ANYWHERE IN WORLD; NO DEDUCTIBLE

Question 19: Vicarious Liability

Answer:

When negligence is transferred from one party to another

Question 20: Cargo Liability

Answer:

Indemnifies for lost and damaged baggage

Question 21: Personal Lines

Answer:

Insurance an individual takes out on a risk owned for person reasons (home, land)

Question 22: 4H Equipment Breakdown Protection Coverage

Answer:

"Boiler and Machinery insurance" No Liability Coverage Only covers a breakdown

Question 23: Proximate cause

Answer:

original occurrence in an unbroken chain of events that results in a loss

Question 24: Adjuster code of ethics- competence

Answer:

shall not undertake a claim that they are not trained on

Question 25: Covered "Breakdown" Equipment 4h

Answer:

-build to operate under internal pressure -Mechanical or electrical equip -Communication and computer equip