Download Alabama Adjuster Exam Questions And Answers and more Exams Insurance Economics in PDF only on Docsity!
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Define: Claimant - correct answer ✅A person or entity that requests indemnification for losses under the terms of an insurance policy Define: Adjuster - correct answer ✅Person who investigates, evaluates, and negotiates claims arising under insurance contracts Define: Adjusting - correct answer ✅The process of comparing a claimant's losses to the promises made in an insurance policy Define: Staff adjuster - correct answer ✅Salaried employee of an adjuster Define: Independent adjuster - correct answer ✅Self-employed, contracts with insurers or bureaus, paid by schedule, or time + expense Define: Public adjuster - correct answer ✅Hired by the insured, usually paid commission
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Define: Emergency adjuster - correct answer ✅Temporarily licensed to service the many claims arising from catastrophes After Jerry pulled the fire alarm, the indoor sprinkler system came on and flooded the offices at Elliot Designs, causing thousands of dollars in damage. Elliot Designs filed a claim with KLM Insurance, who dispatched Chrystal to investigate and process the claim. Who is the claimant in this scenario? A. KLM Insurance B. Jerry C. Chrystal D. Elliot Designs - correct answer ✅D. Elliot Designs After a storm demolished Greg's house, his insurance company sent an adjuster out to adjust his claim. After investigating Greg's claim, the adjuster offered him a settlement which Greg felt was too low. Not knowing much about property insurance, Greg wans a second
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What is the title of the insurance professional who processes claims for compensation? A. Insurance adjuster B. Insurance salesman C. Insurance broker D. Insurance agent - correct answer ✅A. Insurance adjuster Jane is a salaried employee of XYZ Insurance. Working out of a regional office, Jane is sent to deal with some of the most difficult claims in her area. What kind of adjuster is Jane? A. Emergency adjuster B. Public adjuster C. Staff adjuster D. Independent adjuster - correct answer ✅C. Staff adjuster
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What kind of adjuster represents the insured rather than the insurer? A. Public adjuster B. Emergency adjuster C. Independent adjuster D. Staff adjuster - correct answer ✅A. Public adjuster What do you call a self-employed adjuster who works as a contractor for insurers or claims-handling companies? A. Public adjuster B. Emergency adjuster C. Independent adjuster D. Staff adjuster - correct answer ✅C. Independent adjuster
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What is included in a final report? - correct answer ✅Full details of claim investigation, evidence, loss totals, and final claim resolution What is included in an interim report? - correct answer ✅Update on progress of claim due at set intervals An adjuster who acts as a fiduciary agent for an insurer must: A. Represent the policyholder in her interactions with the insurer B. Be a salaried employee of that insurer C. Have authority granted by the insurer through a contract D. Deal with the insurer's lawyer instead of directly with the insurer
correct answer ✅C. Have authority granted by the insurer through a contract In which report to the principal would an adjuster include all witness statements and other supporting evidence, in addition to the total settlement amount?
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A. Final report B. Preliminary report C. Settlement report D. Interim report - correct answer ✅A. Final report An adjuster who has just taken witness statements for a claim she is currently investigating, but is not yet ready to close the claim, may submit to the insurer a / an: A. Preliminary report B. Witness deposition report C. Interim report D. Full report - correct answer ✅C. Interim report An adjuster acts as an agent for the insurer. As such, it is essential that the adjuster understand: A. Her duty to check in daily with the insurance company
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Julie works as an insurance adjuster for XYZ Insurance. While adjusting a claim, she determines that the claimant is covered by his insurance contract and issues him a settlement check for $5,000. The insured cashes the check and performs the repairs. Two months later, the insurer reviews the file and realizes that the claimant's damages were NOT covered by the policy. The insurer demands the settlement money back. Which of the following best explains why the claimant will most likely not have to return the money? A. Subrogation does not allow the insurer to recover payment B. The settlement payment was a warranty C. Julie had the power to bind the insurer to her decision to pay the claim D. Julie issued the settlement based on guarantees provided by the claimant - correct answer ✅C. Julie had the power to bind the insurer to her decision to pay the claim Which item would NOT belong in an adjuster's initial report on a claim?
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A. The date that the adjuster first contacts the claimant B. A list of all known circumstances surrounding the claim C. The final settlement amount D. A detailed list of the damages being claimed - correct answer ✅C. The final settlement amount Which of these is NOT an essential detail for an adjuster to include in a loss report? A. The policy limit B. The policy deductible C. The policy number D. The policy premium - correct answer ✅D. The policy premium What are the 3 types of authority? - correct answer ✅Express authority implied authority apparent authority
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D. Implied authority - correct answer ✅D. Implied authority After her business suffered damage in a fire, Jane filed a claim with Acme Insurance, which dispatched Bob to adjust it, even though he was not allowed to adjust commercial claims. He investigated Jane's losses and submitted his estimate to Acme Insurance, which issued her a settlement check based on that estimate. Bob had _____ because Acme Insurance accepted his estimate and paid Jane's claim. A. Agency authority B. Apparent authority C. Express authority D. Expert authority - correct answer ✅B. Apparent authority _____ authority is what the public reasonably believes the agent has, based on the agent's representations. A. Contract
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B. Apparent C. Express D. Impied - correct answer ✅D. Implied James signed a contract with XYZ Insurance that enables him to sell insurance policies and collect premiums on their behalf. What authority has James been granted? A. Implied authority B. Full authority C. Express authority D. Apparent authority - correct answer ✅C. Express authority Don works as an adjuster for ABC Insurance. Which of the following is most likely NOT one of Don's responsibilities? A. Represent the insured if a claim goes to court B. Provide ABC Insurance with complete claim documentation
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Which of the following statements is NOT true of an insurance adjuster? A. An insurance adjuster who settles claims on behalf of an insurer has the power to bind that insurer, even if she makes a mistake B. An insurance adjuster is an agent C. An insurance adjuster receives her authority to sell products on behalf of the insurer through a written contract D. An insurance adjuster must always use reasonable judgment for both the insurer and the claimant - correct answer ✅C. An insurance adjuster receives her authority to sell products on behalf of the insurer through a written contract Define: Agent - correct answer ✅Receives the authority to act on behalf of another What are the 3 responsibilities of an agent? - correct answer ✅Adhere to contract at all times Use reasonable judgment Supply all pertinent information to the insurer
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Define: Independent agent - correct answer ✅Self-employed; sells insurance from many insurers Define: Exclusive agent (captive agent) - correct answer ✅Commissioned; offers products from only one insurer Define: General agent - correct answer ✅Trains and supervises exclusive agents for an insurer Define: Direct writer - correct answer ✅Salaried employee; works for one company Which of the following is NOT a duty of a captive agent? A. Representing the insurer B. Negotiating settlements C. Selling insurance policies
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D. Independent agent - correct answer ✅C. Captive agent Which of the following statements is FALSE? A. An agent is authorized to act as a representative of another party B. An agent always has a fiduciary duty to defend the claimant C. An agent may represent more than one party D. An agent's actions are construed as those of the party she represents - correct answer ✅B. An agent always has a fiduciary duty to defend the claimant Susan calls herself an insurance broker. She sells multiple lines of insurance from a variety of insurance companies. What type of agent is Susan? A. Direct writer B. General agent C. Captive agent
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D. Independent sales agent - correct answer ✅D. Independent sales agent Sam works on commission only, selling only insurance products from XYZ Insurance. What type of agent is Sam? A. Exclusive agent B. Independent sales agent C. Direct writer D. General agent - correct answer ✅A. Exclusive agent This agent works for only one insurer and is paid commission. A. Exclusive agent B. Independent agent C. Independent adjuster D. General agent - correct answer ✅A. Exclusive agent
