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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]
Examination
180 minutes
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State Insurance Claims Adjusters Certification 2024- Insurance Claims Adjuster License Exam Comprehensive Review Questions and Answers | 100% Pass Guaranteed | Graded A+ | Read All Instructions Carefully and Answer All the Questions Correctly Good Luck: - Insurance Defined; The Laws of large numbers; The Principle of Indemnity; Insurable Interest; The Principle of Risk; Peril vs Hazard; Risk Management; Underwriting; Reinsurance 1: Which of the following best demonstrates a moral Hazard? - =Answer>> A recent purchaser of auto insurance drives less carefully, knowing that the insurer will cover any losses that occur 2: Risk is best defined as: - =Answer>> An uncertainty of a loss 3: Which of the following is most likely to be uninsurable? - =Answer>> The purchaser of a new home wants to protect herself from a possible drop in housing prices 4: Which of the following most accurately describes reinsurance - =Answer>> When an insurance company buys insurance for some of the risks for which it has issued coverage Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
12: A church has had the woodwork in the building refinished and new stain and varnish has been applied. The workers placed the rags and brushes that were used to apply the varnish in a small closet and closed the door, creating the possibility of spontaneous combustion. Which of the following terms best describes this condition? - =Answer>> Hazard 13: Meg has been in very good health in the past 3 years. She has been exercising, her blood pressure is at a perfect level and her cholesterol is the envy of all her friends. Because Meg is feeling so healthy, she decides to cancel her health insurance policy. This is an example of which of the following risk management methods - =Answer>> Risk retention 14: Which of the following statements is not true concerning the Law of Large numbers? - =Answer>> The size of the sample group is not relevant to the accuracy of the results 15: Which of the following is not a hazard - =Answer>> A fire started in a wastebasket 16: Max lives in a large apartment complex where there is no guard station or gate. Several hundred people live in the complex so it's very easy to determine the work schedules of the neighbors living around him. One morning Max leaves for work at 6:30am as he usually does, but he forgets to lock the front door. Later that morning someone comes into the apartment and steals Max's computer. What was Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
the peril in this situation? - =Answer>> The theft of the computer 17: Horatio is a business owner who is part of a business owners group that is buying old commercial buildings in their small city and refurbishing them. Horatio has bought a beautiful historical building made mostly of wood. He knows that he should install a sprinkler system right away to prevent a fire. What risk management strategy is Horatio using? - =Answer>> Risk reduction 18: All of the following are characteristics of an insurable risk, EXCEPT? - =Answer>> The loss must be catastrophic in nature 19: When a person purchases several insurance policies to provide more coverage on a risk than the value of the possible loss, it is known as? - =Answer>> Over insurance 20: A slippery floor is an example of? - =Answer>> A physical hazard 21: The principle of indemnity is illustrated by which of the following? - =Answer>> Restores an insured to the same condition enjoyed before a loss An insured has fabricated a claim so that it would appear to be legitimate. This would be? - =Answer>> Moral hazard Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
4: Vanessa states on an application for personal automobile insurance, that she has had no car accidents within the past 3 years. She later remembers an accident and corrects this statement to include an accident that occurred 2 years ago. Vanessa's original statement can be describes as? - =Answer>> A representation 5: Which of the following best demonstrates the meaning of "contract of adhesion"? - =Answer>> Since the insurance company formulates the policy language, the courts usually will resolve any ambiguities in the insured's favor 6: Which of the following would not have the capacity to enter into an insurance contract - =Answer>> A person who is under the influence of drugs at the time the agreement was made 7: Which of the following is a statement that is guaranteed to be the truth throughout the duration of the policy - =Answer>> A warranty 8: Which of the following statements best describes a "Representation" made in an insurance application - =Answer>> A representation is a statement made by the applicant that he believes to be true when made, but which might prove to be false An applicant fails to disclose known facts when completing an application for insurance. This is known as? - =Answer>> Concealment Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
10: Any intentional misinformation provide by an applicant for an insurance policy that would have kept the insurance company from issuing the policy had that information been known is? - =Answer>> A material misrepresentational 11: Which of the following parts of the insurance contract contains the "contractual agreement" between the insurance company and the insured? - =Answer>> The insuring agreement 12: In order for a contract to be binding in a court of law, it must be designed for: - =Answer>> Legal purposes 13: An intentional act designed to deceive and induce another party to part with something of value is known as? - =Answer>> Legal purposes 14: Which of the following best describes the purpose of the "insuring agreement" contained in an insurance policy? - =Answer>> The insuring agreement 14: Which of the following best describes the purpose of the "insuring agreement" contained in an insurance policy? - =Answer>> To the insurer's promise to pay in case of a loss 15: An element of a valid contract must involve an offer and an acceptance. Sebastian completes an application for auto insurance and submits it to Indemnify Insurance Company. Who made the offer? - =Answer>> Sebastian Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
22: The doctrine that states an insured's policy should provide the coverage that a sensible and prudent person would expect is? - =Answer>> The Reasonable expectations doctrine 23: The Declarations page of an insurance policy contains? - =Answer>> The name and address of the insured and duration of the policy 24: An agent, insured, or claimant has intentionally deceived an insurer for financial gain. Such an act is known as? - =Answer>> Fraud 25: If an insurance company covered an excluded claim it may have to continue paying other such claims because of?
- =Answer>> Estoppel 26: The giving up of a known right is called? - =Answer>> Waiver Insurance policy terms & definitions - =Answer>> 1: Leland has 2 insurance policies covering his home. Indemnify Insurance carries a $120000.00 limit of liability on the home, while Binders Keepers, Inc. carries a limit of $80000.00. A fire breaks out in Leland's kitchen and causes $40000.00 in damages. Remember when there are 2 or more policies covering the same risk, the "other insurance clause" determines the method used to calculate each company's share of the claim. Leland's policy states that the pro-rata share method will be used. Which of the following Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
is the correct amount that will be paid by Indemnify Insurance? - =Answer>> $24000.00 - =Answer>> 2: An "other insurance" clause is included in insurance policies to deal with the problem of? - =Answer>> Over insurance - =Answer>> 3: Helena has not paid her insurance premium for a significant amount of time. Which of the following is likely to happen in this scenario? - =Answer>> Her policy will be cancelled - =Answer>> 4: An insurance binder is best describes as? - =Answer>> Temporary, short-term evidence of coverage - =Answer>> 5: Insurance companies often outsource a significant percentage of their duties to third party administrators (TPAs). All of the following statements about TPAs are true except - =Answer>> TPAs assume the risk on the policies they handle - =Answer>> 6: Which of the following policy provisions or clauses is designed to prevent the violation of the principle of indemnity? - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
12: Gena purchased a policy to cover her home. Recently, she has been conducting business from the home and has hired several employees. She also has several clients per day coming to the home for business purposes. When Gena's insurer finds out about the additional exposures she has introduced into her home, they decide to take action. Which of the following actions is Gena's insurer most likely to take? - =Answer>> Suspend her policy until she moves the business out of her home - =Answer>> 13: Which of the following is a general summary of a policy?
- =Answer>> Certificate of Insurance - =Answer>> 14: Willie's Widgets is covered by a policy that includes a franchise deductible of $50000.00 and a policy limit of $400000.00. A fire rips through Willie's warehouse, and he sustains $342000.00 in damages. How much of the claim will Willie's Widgets be responsible for paying? - =Answer>> $50000.00 - =Answer>> 15: The provision in an insurance contract that outlines the process of bringing a contract dispute before an objective third party for resolution is known as? - =Answer>> Arbitration - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
16: When can an insured assign his or her insurance policies over to another party? - =Answer>> Only with written consent of the insurer - =Answer>> 17: A document that temporarily obligates an insurance company to provide coverage while the issuance of a policy is pending is known as? - =Answer>> Binder - =Answer>> 18: After paying a claim submitted by an insured, an insurance company may have the right to pursue legal actions against the negligent party that caused the insured's loss. This is known as? - =Answer>> Subrogation - =Answer>> 19: The time period after the policy inception and before the policy expiration is known as? - =Answer>> The policy period - =Answer>> Insurance regulations: Standardized & Statutory Policies; The State Insurance Department; Licensing; Regulation of Insurance Companies; Approval of Rates & Forms; Hearing, Cease & Desist Orders; State Guaranty Assoc. - =Answer>> 1: The purpose of licensing surplus lines brokers in a given state is? - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
7: All of the following statements are true regarding Public Law 15(The McCarren-Ferguson Act), except? - =Answer>> Under the Law, the federal government retains the right to approve insurance forms - =Answer>> 8: Indemnify Insurance has been using a specific ISO Homeowners form for several years in all states where they are admitted insurer. Indemnify Insurance has recently been admitted to an additional state, but the laws of the state contradict a few of the provisions in the ISO form. How is this situation likely to be handled? - =Answer>> A statutory form will be drawn up and attached to each Homeowners policy Indemnify Insurance writes in the state
- =Answer>> 9: An "admitted insurer" in any given state could include all of the following except? - =Answer>> A surplus lines insurer - =Answer>> 10: All of the following statements are true regarding State Guaranty Associations, except? - =Answer>> The fund assists insurers in gaining new insurance business by allowing them to advertise their membership in the Guaranty Association - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
11: In order to lawfully write insurance business in a state, an insurance company must hold? - =Answer>> A certificate of authority - =Answer>> 12: Regulation of the insurance industry in the US is primarily left to? - =Answer>> State government - =Answer>> 13: What is the main purpose of government regulation of the insurance industry? - =Answer>> To protect the insurance consuming public - =Answer>> 14: It has been reported to the insurance department in any given state that Callie, a licensee in the state, has violated an insurance law. The Commissioner/Director/Superintendent will hold a hearing to determine the nature of Callie's behavior. After the hearing, the Commissioner is convinced that Callie has engaged in behavior that violates insurance Law. Which of the following is the next step that will be taken by the department? - =Answer>> Issuing a Cease and desist order - =Answer>> 15: Which of the following organizations creates and maintains model laws that establish standards for how insurance is offered and delivered in the US - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
5: Guilt in a Criminal prosecution cannot be used as the sole reason, to deny a license to someone for lack of good moral character - =Answer>> An individual who resides in Canada will not be granted a nonresident adjuster license in Michigan, unless they already have an adjuster license in another state of the US - =Answer>> An adjuster license in MI will not be granted, to a person who has an interest in a fire repair contracting company - =Answer>> The definition of "good moral character" for the purpose of professional licensing in MI is, the propensity on the part of the person to serve the public in the licensed area in a fair, honest and open manner - =Answer>> 6: Which of the following is a requirement for a potential licensee in MI to receive a "certificate of employability" - =Answer>> Successfully completing a career and technical education course - =Answer>> Intro to Property Insurance; Cause of loss forms; basis for insuring property; Property policy terms & Provisions; Property policy Provisions; Types of total & Partial losses - =Answer>> 1: Which of the following would meet the definition of "concurrent causation"? - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
2 or more perils that cause a single loss - =Answer>> 2: Which of the following is true regarding "open peril" coverage? - =Answer>> It provides coverage for all perils, unless that peril is specifically excluded - =Answer>> 3: One of the purposes of the coinsurance clause is to? - =Answer>> Encourage insureds to insure property for most if not all of its value - =Answer>> 4: All of the following is a function of the standard mortgage clause in a property insurance policy except? - =Answer>> Guarantees that the mortgage payments will be made by an insurance policy, if the insured does not make the payments - =Answer>> 5: If a dwelling or commercial building has been without occupants for a significant period of time, but personal property still exists within the dwelling or building, it is considered? - =Answer>> Unoccupied - =Answer>> 6: A separate limit scheduled "per type of property" on a cause of loss form, is known as? - =Answer>> Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
