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The Adjuster School
State Insurance Claims Adjusters Certification
Claims Adjuster Exam
Course Title and Number: Claims Adjuster Exam Exam Title: Board Exam Exam Date: Exam 2024- 2025 Instructor: [Insert Instructor’s Name] Student Name: [Insert Student’s Name] Student ID: [Insert Student ID]
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180 minutes
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State Insurance Claims Adjusters Certification 2024- Insurance Adjuster Exam Questions and Answers | 100% Pass Guaranteed | Graded A+ | Read All Instructions Carefully and Answer All the Questions Correctly Good Luck: - An insurance contract can be modified by a(n) _____. - =Answer>> Endorsement What is a floater used for? - =Answer>> To insure property that moves from one place to another that is not otherwise covered in the policy What is the purpose of supplemental coverage? - =Answer>> It expands the coverage of a policy Which is NOT a reason that an insurer may cancel a homeowners policy? - =Answer>> Too many claims An insurer may cancel a policy for each of the following reasons EXCEPT: - =Answer>> The age of the insured Kent has filed 4 claims on his insurance policy in the past three years, therefore, ABC Insurance has decided that he is too high of a risk and they are not going to renew his policy on his next renewal date. How many days' notice of the non-renewal is ABC Insurance required to give to Kent? - =Answer>> 30 days Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Greg had an accident with his car. Greg had hit a tree several blocks away from his house and messed his car up pretty bad. Greg didn't call anyone but just walked back home leaving his car. Greg just assumed that it would be totaled, so he didn't bother doing anything else with the car. This is an example of what? - =Answer>> Abandonment Barry just sold his car to Kim. Kim signed the bill of sale and paid Barry for the car and left. On the way home she had an accident. Barry had not canceled his insurance for the car yet but was planning on notifying his carrier the next week. Whose insurance would be covering the car in Kim's accident? - =Answer>> Kim would have to cover it with her own insurance. Transferring an insurance policy to another party: - =Answer>> Is known as assignment, and may be done only with the insurance company's written consent ←Correct answer What type of hazard is created when a home is vacant or unoccupied for more than 60 days? - =Answer>> Moral hazard Insurance policies suspend coverage for losses caused by vandalism or theft if at the time of the loss the building has been vacant for more than: - =Answer>> 60 Days Of the following, which one is NOT in a position to be considered a Bailee for someones personal property? - =Answer>> Grocery Store Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
What is a Liberalization Clause? - =Answer>> States that if the insurance company broadens coverage with that policy then it is automatically updated to the broader coverage Tom had his car in the shop. The car was to be left for repair for three days. While the car was being repaired, the shop had a fire and burned down with Tom's car. Which clause in Tom's policy would make his policy not liable for the damage to his car? - =Answer>> No Benefit to Bailee What is earned premium? - =Answer>> The amount of money that the insurance company has earned over a specific time period Which of the following is a clause in property and casualty contracts which states that if policy or endorsement forms are broadened and no additional premium is required, then all existing similar policies or endorsements will be construed to include the broadened coverage? - =Answer>> Liberalization Connie has a 20 year roof on her home that is 5 years old. It gets damaged in the hail storm and needs to be replaced. The original cost of the roof was $8,000 and the cost to get it replaced now is estimated at $10,000. What is the amount of depreciation that would be attributed to this roof? - =Answer>> $2, Greg has his roof damaged in the hail storm. He had a 20- year roof put on his house 10 years ago. It cost Greg Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
actual cash value of the property at the time of the loss. This type of policy is known as a: - =Answer>> Valued policy Which of the following would most likely be a Valued Policy?
- =Answer>> Life Insurance If an item has an agreed value that is stated in the policy, which of the following statements is NOT true? - =Answer>> The agreed value is able to fluctuate with current market value Where would you find the deductible listed on a standard homeowners insurance policy - =Answer>> Declarations Page What is a deductible? - =Answer>> The self-insured portion of an insured loss Which of the following is NOT a reason to include deductibles in insurance policies? - =Answer>> To punish insureds who don't purchase enough insurance When is the deductible used? - =Answer>> Taken off the settlement check received by the insured The Smiths have a fire that totally destroys one of their $1,000 laptops before the fire is extinguished. If the fire coverage on contents contains a $1,500 deductible, the insured will receive - =Answer>> $0. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Ben was involved in an auto accident. His injuries were covered under PAP Medical Payment. How long after the accident will the policy cover his medical expenses for? ( )2 years( )1 year(x )3 years( )6 months Explanation: Medical payments under the PAP are payable for up to three years from the date of the accident. (PAP.28) - =Answer>> Bev wants to assign her insurance policy to her daughter that is going to live in her house as she leaves the country. What does Bev need to know about ASSIGNMENT as it pertains to an insurance contract/policy? ( )Assignments are never allowed in insurance( )Assignments are only done at the request of the insurance company( )Assignments don't need to be documented as long as it is family related( x)A policy cannot be assigned to another party without the consent of the insurance company Explanation: All parties must agree to any assignment and the new party must have an insurable interest in what is being assigned. (POL.49) - =Answer>> Cory just got his first Inland Marine Policy for his business. His company provides transport services along with light construction work. Which of the following CANNOT be covered in his policy including available endorsements? ( )Cory's shipments of grain made by truck while in transport( )Cory's construction equipment while at customers location( )The product being loaded onto one of Cory's truck for transport(x )Cory's building and personal property at the corporate headquarters of his transport business Explanation: Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Scott's medical expense would not be covered but Tim's car and navigation system would be. (PAP.35) - =Answer>> Transferring an insurance policy to another party: ( x )Is known as assignment, and may be done only with the insurance company's written consent( )Is permitted only at the policy expiration date( )Is illegal( )Subrogates the insured's rights to collect from a negligent third party to the insurance company Explanation: The "assignment" condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer, except in the event of the death of the named insured. (POL.49) - =Answer>> Which one of the following statements about insurance contracts is TRUE? ( )Each party to the contract must give and receive equal consideration( )The insured is actively involved in writing the policy provisions( )The insured and the insurance company have equal negotiation power in the creation of the contract( x)Insurance usually involves unilateral contracts Explanation: Insurance policies are considered to be unilateral because only the insurance company is legally bound to perform its part of the agreement. While both the insured and the insurer must give consideration, it need not be equal. The policy creation with all provisions are prepared by the insurance company, with little or no input from the insured. (POL.9) - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Which one of the following is NOT a factor in determining eligibility for coverage under a particular homeowners form? ( x )Square footage( )Intended use( )Occupancy( )Dwelling type Explanation: The square footage of the dwelling has no relevance in determining eligibility. (HO.2) - =Answer>> The three parties to an adjuster bond are surety, principal and obligee. Which party would be considered the obligee? ( )The Insurance Company(x)A government agency requiring a bond( )The Adjuster( )The Bonding Agency Explanation: A government agency requiring a bond is the recipient in the bond relationship. (BND.3) - =Answer>> Harvey has a standard homeowners policy. The policy states that he is required to notifiy the insurance company of any material changes or events. He needs to store some explosives temporarily in his garage and notifies the insurance company. They receive his notice and take no action and do not change his premiums or coverage. This is an example of what? ( x )Implied Waiver( )Binder( )Estopple( )Express Waiver Explanation: When both parties are made aware of a material change but no action is taken to modify or change the current agreement, then it is an implied waiver. (CON.4) - =Answer>> Because an insurer writes the policy language and the insured has little or no control over the content, any Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
The chinese were credited with the first concept of insurance by spreading their shipments over multiple ships. This prevented them from losing their entire load if one ship had an issue. How is that concept seen in insurance we have today? - =Answer>> A pool of people buy insurance and only a small number are expected to have a loss. What does NAIC stand for? - =Answer>> National Association of Insurance Commissioners Which of the following is NOT something the NAIC would do? - =Answer>> Collect insurance premiums Who is the primary regulator of the insurance industry? - =Answer>> State Department of Insurance The responsibility to regulate the insurance industry belongs to: - =Answer>> Both federal and state government What is the purpose of the NAIC? - =Answer>> To develop best practice standards within the insurance industry John has had a loss at his home from a wind storm that blew a tree onto his home. John feels the insurance carrier isn't responding to him quickly enough so he can deal with the crisis on hand. His calls are not being answered and no one is addressing his claim that he filed. Who would stand up for his interest as a consumer in this instance? - =Answer>> The state department of insurance Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Tommy just had his garage on his home destroyed by fire. ABC Insurance company was notified by Tommy immediately of his loss, but they are not returning his calls or communicating with him in any way. Who would Tommy call to get some action? - =Answer>> The State Insurance Commissioner Cory has filed a loss for water damaged of a malfunctioned ice maker. He filed a loss with his carrier once the damaged occurred per the instructions of his policy. The carrier called him on the phone and talked to him briefly stating that they didn't think they should cover the claim and he should talk to the ice machine manufacturer. They weren't sending out an adjuster and were closing his file. They told him his floors would go back to normal after they dried out. What part of Chapter 541-Unfair and Deceptive Incurance practices would protect him? - =Answer>> Refusing to pay a claim without conducting a reasonable investigation with respect to the claim Failing to attempt, in good faith, to effectuate a prompt, fair, and equitable settlement of a claim with respect to which the insurer's liability has become reasonably clear." is an example of what? - =Answer>> Unfair Trade Practices What is the purpose of the National Association of Insurance Commissioners? - =Answer>> To help develop national standards for insurance Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Brian has a house by a creek. His house is in a low area that tends to flood easier when the rains are heavy. His back yard is quite large with a trampoline that the kids enjoy playing on. Off to the back of his property is an old well that has a sheet of plywood covering it to keep people from falling in. Of the items listed below, which would be considered a peril and NOT a hazard? - =Answer>> Flood Which of the following is an example of a direct loss? - =Answer>> Loss due to fire damage to a building A church has hired a painting contractor to stain and varnish the woodwork in the building. He leaves the rags and brushes used to apply the painting materials in a small storage area. This is an example of: - =Answer>> A hazard Peter had a small mail center that he owned. A fire gutted the inside of the building making it unusable. Peter must now spend the time to go relocate his buiness. He lost 1 month of income from his business because of this. What type of loss would his loss of income be considered? - =Answer>> Indirect Loss Which of the following is NOT an example of a hazard? - =Answer>> Fire that destroys personal property in a building What type of adjuster is hired by the insured? - =Answer>> Public Adjuster Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
A public adjuster represents the interest of: - =Answer>> The Insured A public adjuster is always paid: - =Answer>> On a fee basis-- usually 10% What type of adjusters usually work large storms such as a hurricane? - =Answer>> Independent Adjusters Of the following, which is NOT needed as an insurance adjuster? - =Answer>> Commercial Drivers license As an adjuster, who do you represent as an adjuster? - =Answer>> The insurance company As an independent adjuster, how much should you expect to travel? - =Answer>> 7 almost always How many days a week would you expect to work as a catastrophe adjuster? - =Answer>> 7 days If a husband and wife work as a team adjusting, which of them should be licensed? - =Answer>> Both of them The immediate contact rule requires an insurer to acknowledge receipt of a claim and request any additional information within _____ days after being notified of the claim. - =Answer>> 15 Tommy is an insurance adjuster with ABC Insurance. His brother, Tim, has a roofing company. Tommy, being the Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
What is the minimum age to hold an adjuster's license? - =Answer>> 18 All of the following are qualifications of applicants for an adjuster license in Texas EXCEPT: - =Answer>> Is trustworthy An adjuster's license will usually be revoked for which one of the following reasons - =Answer>> Having been convicted of a felony Which of the following does NOT qualify for discipline or denial of an insurance adjuster license application? - =Answer>> Convicted of a misdemeanor not related to duties as an adjuster All licensees must complete _____ hours of continuing education within each reporting period. - =Answer>> 24 Philip holds an adjuster license, but only completes 20 of the 24 required continuing education hours. If Philip completed 30 hours in the previous licensing period, which one of the following statements about Philip's situation is correct? - =Answer>> Philip is not given a grace period to get his CE credits earned. He would pay a fine for each CE credit hour deficient plus any other renewal fees required. What makes an insurance policy a contract of adhesion? - =Answer>> One party creates the contract and the other agrees to it. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
Sue just received a notice from her insurance company stating how much her premium payment would be for the upcoming renewal period. Another term for the premium that she will pay for the policy is: - =Answer>> Consideration Carl has been working with his insurance company on a new insurance policy. In order for the insurance contract to be legally valid, each of the following must be present EXCEPT - =Answer>> Notarization Which of the following is NOT a requirement of a valid contract? - =Answer>> Witness to the agreement Marlin was told by ABC Insurance Company that he did not have the capacity to enter into an insurance contract. Which of the following could be the reason the insurance company made that comment? - =Answer>> He was not sober at the time of making the agreement What is the main reason an adjuster would use a Reservation of Rights letter instead of a Non-waiver Agreement? - =Answer>> The insured isn't required to sign it Richard has decided that in his Auto Policy that he does not want to carry PIP coverage, which is required in Texas unless the insured signs a statement that they do not want the coverage. How would you describe Richard's giving up of his right? - =Answer>> Waiver Bill builds decorative ladders for libraries. He knows they are almost never used and takes many shortcuts when Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
