MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>., Exams of Nursing

Download MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. and more Exams Nursing in PDF only on Docsity! MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued ABC Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with a General Aggregate of $750,000 and a per occurrence limit of $250,000, what is the maximum that ABC's insurer will pay for Jerome's injuries? - correct answer ✅$250,000 Strict Liability: - correct answer ✅holds a person liable for his actions regardless of how much care he demonstrates. Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in good time. Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and Wendy falls into the crawl-space below, injuring her leg and back. Which commercial general liability coverage could help cover the cost of Wendy's injuries? - correct answer ✅Completed Operations Liability In which case would the insured be indemnified by her auto liability coverage? - correct answer ✅NOT: None; liability coverage never indemnifies the insured. OR she causes property damage to her neighbor MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Lucille owns her own woodworking business, building custom items such as dressers, wooden trunks, and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her insurer. Which of the following would be covered under Coverage A of the Building and Personal Property Coverage Form in her commercial property policy? - correct answer ✅A bandsaw permanently affixed to the floor In which of these situations could a Mississippi insurer cancel a policy after 60 days with sufficient notice? - correct answer ✅The policyholder's son has his license suspended during the policy period. Bonnie's PAP includes Comprehensive coverage. Which of the following losses could this coverage pay for? - correct answer ✅Bonnie's car catches fire Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car into Sam's. Sam's own insurance company, ABC Insurance, immediately pays him $5,000 for his injuries. Sam then ponders whether to file a $6,000 lawsuit against Nicole. Why can't Sam sue Nicole for the full MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ If an insurer decides to cancel a personal auto policy (for a reason other than non-payment of premiums) after the policy has been in effect for 60 days, the insurer must provide written notice to the insured __________ in advance. - correct answer ✅30 days Acme Construction, Inc. has one contractor and one receptionist. The contractor makes $25/hr, and the receptionist makes $10/hr. The contractor worked exactly 8 hours in 2010, so he made $200. The receptionist worked 10 hours, so she made $100. Therefore, Acme's entire payroll for 2010 was $300. Assume that, for every $100 of payroll, the WC rate for contractors is $50 and the rate for receptionists is $5. How much did Acme owe in WC premiums? - correct answer ✅$105 During a routine tooth extraction, Dr. Dentem administers too much laughing gas and causes brain damage to his client. The family sues Dr. Dentem for failing to follow procedure. Which kind of insurance would cover the cost of the lawsuit? - correct answer ✅Malpractice insurance Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks down Sally's back door to get into her kitchen for a snack. When MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Sally comes home to find the damage, she files a claim with her insurance company. Will the damage to Sally's home be covered, and why or why not? - correct answer ✅Yes. The HO-3 is an open peril policy, without exclusion for wildlife. Which of the following is similar to a Business Auto Policy, but adds several policy provisions and protections specific to the trucking industry? - correct answer ✅NOT: Trip Transit policy Which of the following is NOT one of the requirements that adjusters must meet in order to handle NFIP claims? - correct answer ✅NOT: have at least four consecutive years of adjusting experience OR Inform claimants that only the NFIP Servicing Agent or WYO company can make a final decision on their claim Which of the following insurers is NOT committing an unfair trade practice. - correct answer ✅ACME Insurance is giving stock options to agents who exceed their sales quotas MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ ABC Insurance has a deal with Sunset Realty in which ABC compensates Sunset for requiring all home buyers purchase their homeowners insurance from ABC - correct answer ✅an "object" Which of the following is an example of a moral hazard? - correct answer ✅Ken lights a candle, sets it right next to the window draperies and leaves the house to go to work In which section of an insurance policy might you find the following statement? "'We, us, and our' refers to ABC Insurance company." - correct answer ✅Definitions If the Commissioner has reason to believe that a person or company is engaging in an unfair trade practice, he must give the person at least ____ notice before holding a hearing to review the case. - correct answer ✅10 days Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the following would be a reason this policy may not be legally MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Making false or misleading statements about a policy's terms or benefits is unfair and considered: - correct answer ✅misrepresentation Randy owns a clothing store. One day, he notices a shady character with a backpack who is hanging around acting nervous. Randy becomes suspicious and approaches the young man. As the boy makes an effort to avoid him, Randy grabs his arm and detains him until the police arrive. Not finding any stolen merchandise, the police let the boy go. Two weeks later Randy is notified that he will be sued for violation of the young man's civil rights. This is an example of what type of personal injury covered under Randy's Commercial General Liability policy? - correct answer ✅False Arrest, Detention, or Imprisonment After a tornado severely damaged their building, the owners of ABC Online Marketing have to rent another building for a few months while repairs are underway. Which additional coverage would help cover the cost of renting this other building? - correct answer ✅NOT: additional covered property endorsement OR Fixed cost insurance MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Stephanie owns a house that she rents out for $2,500 a month. A massive kitchen fire forces her tenants to move out while the interior is overhauled. After two months, the repairs are complete, and Stephanie contacts her tenants, only to find that they've found a new place to live. It takes Stephanie another month and a half to find new tenants. Assuming that Stephanie had a $100,000 DP-2 policy, what is the maximum amount she could receive for lost rental income under Coverage D? - correct answer ✅$5,000 Which statement about the Federal Employers Liability Act is TRUE? - correct answer ✅NOT: It provides benefits in the form of monthly payments and medical coverage to coal miners Which of the following is NOT and unfair trade practice in Mississippi? - correct answer ✅Requiring that a homebuyer purchase insurance as a mortgage condition, but allowing the applicant to chose his own insurer Which of the following events would trigger the end to a commercial property Builders Risk Coverage Form? - correct answer ✅The building is accepted by the purchaser MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following does not describe one of the implied warranties of Ocean Marine Insurance? - correct answer ✅The vessel must not travel in story or otherwise dangerous weather conditions Jim drops his car off at ABC Garage to have his exhaust system repaired and takes the train to work. When he returns, he finds that his car has been vandalized. Jim has comprehensive coverage, but feels the garage is responsible for the damage since Jim entrusted the car to ABC Garage. Which coverage type under ABC's garagekeepers policy would split the cost of the loss with Jim's own insurer without placing blame on ABC Garage? - correct answer ✅NOT: liability coverage OR Excess Comprehensive Coverage Coverage C - Personal Property of a homeowners policy typically excludes: - correct answer ✅fish Several cases of listeria have been traced back to Aaron's crop of soybeans that he recently sold at market. What type of coverage will pay for the claims MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following is TRUE about workers' compensation insurance? - correct answer ✅It benefits both the employee and the employer An "occurrence" is defined as: - correct answer ✅an unexpected even that causes a loss. Phil owns a public pool. One day, Phil has an altercation with a woman visiting the pool. Phil doesn't like the way she looks, so he tells her that she has to leave the premises right away. The woman takes Phil to court for violating her civil rights. This is an example of what type of personal injury covered under Phil's Commercial General Liability policy? - correct answer ✅Not: Malicious Prosecution OR Libel & Slander Which of these businesses would be LEAST likely to need a bailee's customer floater? - correct answer ✅An ice cream shop Which of the following would be considered an Instrumentality of Transportation and Communication? - correct answer ✅Pipeline MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following would NOT be covered under Errors and Omissions insurance? - correct answer ✅Bodily injury claim Which of the following homeowners policies provide coverage on an open- peril basis for personal property without endorsement? - correct answer ✅NOT: HO-3 and HO-5 A "hazard" is define as: - correct answer ✅NOT: the likelihood of experiencing a loss. Which statement about the Federal Employees Compensation Act is TRUE? - correct answer ✅It provides federal government insurance for civilian employees. A processing and servicing company would qualify for a BOP only if they have less than _____ in annual revenues. - correct answer ✅NOT: $5 million MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Cliff receives a letter from the IRS, informing him that he has severely underestimated his Adjusted Gross Income for the past year. Cliff was oblivious to this fact because XYZ Accounting has filed his taxes for him for the past 15 years. Now, Cliff owes $15,000 in back taxes. He sues XYZ Accounting for this mistake. Which of the following would cover the cost of the lawsuit for XYZ Accounting? - correct answer ✅NOT: commercial Liability Insurance Peter works as a real estate agent and uses the internet extensively for sales leads and advertising. One day, he finds another realtor's ad online and copies it, using his own information as the contact info. This generates a lot of business for Peter, but unfortunately Peter gets a call one day and is informed that he is being sued for copyright infringement. This is an example of what type of claim covered under Peter's Commercial General Liability policy? - correct answer ✅Advertising Injury Which of the following would be covered under Coverage A in a dwelling policy? - correct answer ✅Gas furnace in the basement MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which characteristic would prohibit a convenience store/gas station from purchasing a BOP? - correct answer ✅The operation of a car wash Joe decides to go surfing for three months in Hawaii. Before he leaves, he locks up his surfboard shop and rents a storage unit for most of his equipment and merchandise. When Joe returns, he finds that his shop has been broken into and vandalized. Under what policy condition would Joe's insurer likely refuse to make a full payment? - correct answer ✅Vacancy All of the following are universal exclusions in a Commercial Crime policy, EXCEPT: - correct answer ✅theft of money or securities outside the insured premises in the care of a messenger Jane caused an auto accident while driving the company vehicle for work. Unfortunately, the van she ran into was carrying 6 passengers, all of whom were injured in the accident. The total of everyone's injuries comes to $210,000. Jane's company's business auto policy only covers up to $100,000 in bodily injury per accident. Which of the following might help cover the MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ remaining liability caused by Jane's accident? - correct answer ✅NOT: Extended liability policy When a Mississippi worker dies from a work-related accident, the surviving spouse receives an immediate lump sum payment of: - correct answer ✅$1,000 Cameron is fully insured by a DP-2 on his $130,000 home. His monthly mortgage payment is $775 per month, and he usually pays $400 per month in groceries. When a kitchen fire damages his house, causing $61,000 in damage, he forced to move out for a month while the repairs can be made. Cameron's hotel bill for the month comes to $1,250 and he spends $600 eating at restaurants. Based only on this information, how much indemnification can Cameron expect to receive for this claim? - correct answer ✅Coverage A - $61,000; Coverage E - $1,450 All of the following are types of Cargo Coverage in Ocean Marine insurance, EXCEPT: - correct answer ✅NOT: Single Risk Form MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Indemnification may include all of the following except: - correct answer ✅payment for pain and suffering While Andrea was grocery shopping in BB Mart, the large Dairy sign fell off the wall and landed on her. Because of her extensive injuries, Andrea sued BB Mart and was awarded $375,000 in damages. BB Mart's Commercial General Liability policy has a general aggregate limit of $1,000,000 and a per occurrence limit of $300,000. What is the per occurrence limit after this claim is settled? - correct answer ✅$300,000 Both Steve and his wife, Arlene, carry DP-2 policies on their $135,000 home. Steve's policy has a limit of $108,000 and Arlene's has a $27,000 limit, and both policies pay on a pro rata basis. After a hailstorm causes $13,000 in damage to their roof, how much of the damage will be covered by Steve's policy (ignoring any deductible)? - correct answer ✅$10,400 Martin regularly travels much of the state for work, so his employer has given him a company car. Which endorsement to Martin's PAP would provide him with liability coverage for the company car? - correct answer ✅Extended Non-Owner MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Coast-to-Coast Trucking is in the business of transporting fresh produce from farmers to markets all across the U.S. Which type of inland marine policy would best protect Coast-to-Coast Trucking's interest in the produce that it ships? - correct answer ✅Motor Truck Cargo Policy When discussing farm insurance, which of the following most accurately describes "scheduled property"? - correct answer ✅Itemized property During a storm, lightning strikes a tree in Harry's yard and starts a fire that spreads to his shed where he keeps all his equipment for his landscaping business. In addition to the shed, Harry has to purchase all new equipment to stay in business. The cost to replace the equipment would be considered: - correct answer ✅direct loss Which of the following statements about Electronic Data Processing (EDP) insurance coverage is FALSE? - correct answer ✅NOT: EDP is always sold as an endorsement to another policy OR EDP is usually a limited coverage MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Josephine has purchased a Business Owners Policy. She insures both the real and personal property at 80% under the policy. Assuming no endorsements apply, the losses will be adjusted on a(n) _______________ basis. - correct answer ✅replacement cost. Alan owns a commercial landscaping business and does most of his work during the summer months. One day, he arrives at work to find an enormous hole in the middle of the yard where he stored his lawn mowers. Under which Causes of Loss form(s) would the mowers, which were consumed by the sinkhole, be covered by his commercial property policy? - correct answer ✅NOT: Special form only OR Broad, and Special forms only All of the following pieces of information can be found in the Conditions section of an insurance policy, EXCEPT: - correct answer ✅causes of loss that are not covered UM/UIM coverage excludes: - correct answer ✅government vehicles MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ If, after a hearing, the Commissioner has determined that a person is committing an unfair trade practice that is not defined under Mississippi Insurance Code: - correct answer ✅he must wait at least 30 days, and if the person is still engaging in the activity, the Commissioner may petition the Attorney General to issue a cease and desist order. Of the following individuals, who would be considered an "adjuster," as defined by Mississippi insurance code? - correct answer ✅Barry is an independent contractor who investigates losses on behalf of various insurers. Which of the following would NOT be covered under Valuable Papers Business Insurance? - correct answer ✅Stock Certificates Walter works for a shipping company, delivering packages and picking up orders. He lives very close to work and the grocery store is only a few blocks away, so he can live conveniently without owning a car. However, he would like to have some Personal Injury Protection, just in case he ever gets injured in an accident. Which BAP endorsement could his employer use to give him this coverage? - correct answer ✅NOT: Personal Injury Protection MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ As a requirement for getting her New York adjuster license, Alice is required to submit proof of bonding with her application. She purchases a surety bond from PBJ Bonds. In this contract, PBJ Bonds would be considered the: - correct answer ✅surety Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to his home. During this time, he has spent $3,000 in hotel expenses, on top of his monthly mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage D - Loss of Use?or - correct answer ✅$0 One day, a customer at Jim's Tire Sales was severely injured when a rack of tires collapsed and fell on her. Later, the customer filed a lawsuit against Jim for $750,000. Jim has a commercial general liability policy, but the limit for this type of loss is only $500,000. Not wanting to use his entire limit on this one claim, Jim tries to use his excess liability policy first, which has a limit of $1,000,000, so he can retain most of the aggregate limit in his base policy. Unfortunately for Jim, this is not possible because: - correct answer ✅an excess liability policy pays on after the base policy's limit has been exhausted MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following individuals is NOT considered a "custodian" in commercial crime insurance? - correct answer ✅Customer Ophelia's auto policy covers two cars, and it includes UM coverage with limits of 25/50/25. When she is severely injured in an accident caused by an uninsured motorist, what is the most UM coverage that Ophelia can collect for her injuries? - correct answer ✅$50,000 Stan has a personal auto policy to cover his two vehicles, but he recently purchased a custom built motorcycle as well. Which type of endorsement will Stan need to cover the motorcycle? - correct answer ✅Miscellaneous Vehicle Endorsement In dwelling policies, Coverage D pays for: - correct answer ✅lost rental income Which of the following is NOT one of the powers of the Insurance Commissioner? - correct answer ✅Write insurance laws MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Workers' compensation premiums are based on all of the following except: - correct answer ✅the race of the employee. Which of these perils is NOT excluded from coverage in a homeowners policy? - correct answer ✅NOT: water damage In Ocean Marine insurance, this clause appropriates the loss to one company, rather than spreading the loss among all cargo owners. - correct answer ✅Particular Average Which of the following statements is TRUE? - correct answer ✅Exclusive remedy means an injured employee cannot sue his employer. Which of the following perils is excluded from coverage in a National Flood Insurance Program policy? - correct answer ✅Water-main breakage MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ In a Personal Auto Policy, the term "family member" would include: - correct answer ✅the named insured's 26-year-old son who lives at home In Ocean Marine insurance, this term of sale states that the seller of goods is responsible for damage to the cargo during shipment: - correct answer ✅Cost, Insurance, and Freight (CIF) The fee paid by the insured in exchange for an insurance policy is called a: - correct answer ✅premium Which of the following would you find in the Conditions section of an insurance policy? - correct answer ✅The insured's duty after a loss Sarah is playing with a basketball on the stairs at Bob's house. In doing so, she trips, falls, and breaks her leg. She files a claim against Bob's insurance company for her injuries. The adjuster determines that Sarah was 50% partially responsible for her own injuries, and therefore should only receive indemnification for 50% of her medical bills. What defense of the claim is the adjuster using? - correct answer ✅Comparative negligence MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Walter works for a shipping company, delivering packages and picking up orders. He lives very close to work and the grocery store is only a few blocks away, so he can live conveniently without owning a car. However, he would like to have some Personal Injury Protection, just in case he ever gets injured in an accident. Which BAP endorsement could his employer use to give him this coverage? - correct answer ✅Named individuals Broadened PIP A CGL can provide liability insurance coverage for all of the following persons, EXCEPT: - correct answer ✅NOT: stockholders or Sole proprietors When the high-pressure feeder malfunctioned at the ACME Paper Mill, the resulting explosion severely damaged the mill and shut down operations for almost two months. Once the repairs are finished, the city inspector comes out to inspect the work and finds that the repaired scrubber needs to be replaced in order to meet current industry safety standards. Which coverage could help ACME with this added expense? - correct answer ✅Law and Ordinance Coverage MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ In Mississippi, what is the current minimum amount of liability coverage required for a commercial auto? - correct answer ✅100/300/100 Susan is insured with a homeowners policy. After someone destroyed her late husband's gravestone with a vehicle, Susan filed a claim against her homeowners policy. Which of the following statements is TRUE? - correct answer ✅With Grave Marker coverage, Susan can receive a maximum of $5,000 to pay for the damaged gravestone. Anna's Rare Books in Birmingham needs to ship three F.Scott Fitzgerald first editions to a customer in Mobile. The combined value of the books is over $400,000. What type of Inland Marine insurance policy should Anna's Rare Books buy to cover this shipment? - correct answer ✅A trip transit policy Veronica owns a pottery business and is insured under a commercial property policy. She was in the process of building an extra structure for the sole purpose of kiln firing her pottery when a massive storm came through and blew down all the scaffolding, which added additional cost to the construction project. Which coverage extension of the Builder's Risk MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ If you are caught driving without the minimum amount of auto liability coverage in Mississippi, which of the following penalties would you face? - correct answer ✅Suspension of your driver's license and a fine of $500 Mark is driving along and looking for an address on the East side of Walker Street. As he squints to see the numbers posted on the buildings, he plows into the back of a car waiting at a stoplight. Both the driver and the passenger of the struck car are injured. The driver suffers $60,000 in bodily injury, the passenger suffers $55,000 in bodily injury, and the vehicle Mark hit sustains $30,000 in damage. Mark has liability coverage with split limits of 50/100/25. How much will Mark be responsible for out-of-pocket after this accident? - correct answer ✅$20,000 Matthew works for Barry John Coal Company. One day, when all the work trucks are busy, Matthew's boss asks him to use his own truck to deliver a load of coal to a customer. On the way, Matt gets distracted looking at directions and swerves into oncoming traffic, causing a serious accident. Why might Matt's PAP liability insurer deny coverage for the damage Matt caused? - correct answer ✅Matt's accident occurred during employment- related activities, so it will be covered by the employer's liability policy. MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following statements about the Standard Fire Policy is TRUE? - correct answer ✅It is no longer used in its original format. - correct answer ✅ In a __________, only one party is legally obligated to perform. - correct answer ✅unilateral contract Jerry is using an expensive video recorder near the family pool when he slips and falls in, destroying the camera. Jerry bought the camera three years ago for $4,000, and it depreciates at $500 per year. A new, similar camera costs $5,000 today. Assuming the loss is covered, if Jerry had a replacement cost policy, how much would Jerry's insurer indemnify Jerry for the destroyed camera? - correct answer ✅$5,000 Acme Insurance Group agrees to act as a surety to Willis Construction in the development and construction of a new shopping mall. As a condition of the agreement, Acme Insurance Group requires Willis Construction to post MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ $500,000 in a bank account controlled by Acme Insurance Group. If Willis Construction completes their obligation, Acme Insurance Group will return the cash to Willis Construction. What would we call the $500,000 in the bank account? - correct answer ✅Collateral While Andrea was grocery shopping in BB Mart, the large Dairy sign fell off the wall and landed on her. Because of her extensive injuries, Andrea sued BB Mart and was awarded $375,000 in damages. BB Mart's Commercial General Liability policy has a general aggregate limit of $1,000,000 and a per occurrence limit of $300,000. What is BB Mart's general aggregate limit after the claim for Andrea's injuries is paid? - correct answer ✅$700,000 On January 27, 2008, Ryan was using an exercise bike purchased from NusquamCycle when the chain broke, causing him to fall and severely bruise his knee. It seemed to heal just fine, but three years later, on January 25, 2011, Ryan's knee gave out while jogging. His doctor told him that he'll need surgery and that this deterioration most likely resulted from the earlier accident with the exercise bike. Which of the following CGL policies would cover Ryan's claim filed January 25, 2011? - correct answer ✅A claims- made from Jan 31, 2010- Jan 31, 2011 with a retroactive date of Jan 1 2008 MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following claims may be covered under an Equipment Breakdown Protection Coverage Form? - correct answer ✅NOT: A self- propelled machine used to transport heavy objects within the factory experienced a malfunction in its computer program, causing it to run into a wall, which damaged it to the point of needing repair. OR a severe hail storm damaged a company's air conditioning units Which of the following is NOT a requirement for a legally binding contract? - correct answer ✅It must be a notarized document. James owns a masonry business and has a commercial liability policy with the following liability limits: $150,000 per occurrence / $500,000 per policy term. While at a job site, his cement truck's chute cannot reach the pour site, so the operator adds two extra chutes, extending its length. The chute collapses under the weight of the concrete, causing $35,000 in injury to one of the workers. The loss is covered by the policy, and James' insurer pays the claim. What will the new limits be for the remainder of the policy term? - correct answer ✅NOT: $115,000/ $465,000 MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following would be considered an insurable risk? - correct answer ✅NOT: a high-crime area Jay's Chip Factory makes potato chips, and it gets chip bags from Bags, Inc. One day, the bag-making machine at Bags, Inc. broke down, and thus, Jay's Chip Factory couldn't get the bags it needed to bag its potato chips. Jay's Chip Factory had to shut down production temporarily while waiting on Bags, Inc. to fix their machine. Jay's lost business income may be covered under what coverage in its Equipment Breakdown Protection Coverage Form? - correct answer ✅NOT: Business Income and Extra expense Which endorsement to the Commercial Crime policy would protect a bank against its legal liability for burglary, robbery, destruction, or damage to customers' belongings kept in safe deposit at the bank? - correct answer ✅NOT: Client's Property OR Deposit Box Liability Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection, separate from his home and other property. What term most accurately describes the type of policy Stu would purchase? - correct answer ✅NOT: Valuable Papers Policy OR ACV Policy MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ In a homeowners policy, Coverage B - Other Structures provides insurance for which of the following? - correct answer ✅Detached garages Which of the following would be most likely to purchase an Errors and Omissions policy? - correct answer ✅Real estate agent Bill has just been convicted of acting as an insurance adjuster without a license. Which of the following is TRUE? - correct answer ✅NOT: This is a felony, and Bill can be fined up to $2,500, be sentenced to 1 year in prison, or both OR This is a misdemeanor, and Bill can be fined up $2,500, be sentenced to 1 year in prison, or both. In a DP-2 Broad Form, which of the following would be covered under the peril of Theft? - correct answer ✅Broken windows caused by a burglar breaking in. Which of the following would NOT be covered under Part A of a Personal Auto Policy? - correct answer ✅NOT: Lost Wages MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Tina has two policies (Policy X and Policy Y) that cover the same risk on a pro rata basis. Policy X has a limit of $100,000 and Policy Y has a limit of $25,000. When Tina suffers a loss totaling $75,000, how will the two policies respond? - correct answer ✅Policy X will pay $60,000 and Policy Y will pay $15,000 What is a reserve, in insurance terms? - correct answer ✅A pool of collected premiums that the insurer sets aside to pay claims Which of the following statements about the Standard Flood Insurance Policy is FALSE? - correct answer ✅It is subject to state courts. Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30 days late. However, Jason is currently more than 30 days late, and has been so five times in the last year, and his insurer has done nothing about it. When Jason gets into an accident and files a claim, which of the following is most likely to happen? - correct answer ✅The insurer will pay the claim bc of the implied waiver they have made by not canceling Jason's policy the previous times he was late with his payments. MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ DEC Construction was hired to completely renovate Randall's department store. DEC Construction is in charge of the project, but hires Mac Electric (an independent contractor) to complete the electrical portion of the job and requires Mac to buy Owners & Contractors Protective Liability coverage as a condition of the contract. Who would be listed as the named insured(s) for this coverage? - correct answer ✅DEC Construction Which endorsement to the Commercial Crime policy would protect a bank against its legal liability for burglary, robbery, destruction, or damage to customers' belongings kept in safe deposit at the bank? - correct answer ✅NOT: Client's Property A power surge sparks a small electrical fire in an office building. The electrical fire triggers the automatic sprinkler system. The water from the sprinklers soak the carpets and short-out all the computers, causing thousands of dollars in damage. What is the proximate cause of the loss? - correct answer ✅NOT: the electrical fire The Write Your Own program allows private insurers to: - correct answer ✅NOT: give policyholders the opportunity to design their own policy. MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of these is NOT typically excluded from coverage in a property insurance policy? - correct answer ✅Lightning James is in the consulting business and frequently flies from city to city to meet clients and help them improve their business practices. Most cities have adequate public transit, but sometimes it's easier to rent a car. Which coverage symbol would specifically pertain to rental cars on James' Business Auto Policy? - correct answer ✅Symbol 8 Grace purchased a recliner from XYZ Furniture. After getting it home, she decided to try out the new chair. While leaning back, the chair breaks and Grace injures her neck. She sues XYZ Furniture and is awarded $300,000. The costs for the legal defense come to $45,000. XYZ Furniture's CGL policy has a Products-Completed Operations Aggregate limit of $750,000, with a per occurrence limit of $250,000. How much will XYZ Furniture have to pay out- of-pocket for this claim? - correct answer ✅$50,000 MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Francis owns a small shoe store. Since his business isn't particularly risky, he has a commercial property policy that provides named-peril coverage to his building and personal property, without any additional coverages. Which Causes of Loss form does Francis have attached to his coverage form? - correct answer ✅Basic Form In a garagekeepers policy, PIP coverage is: - correct answer ✅available with an endorsement Veronica owns a pottery business and is insured under a commercial property policy. She was in the process of building an extra structure for the sole purpose of kiln firing her pottery, but after 40 days of waiting for it to be completed, she moved her business to a new location without any intention of moving back. Her Builder's Risk Coverage Form was terminated because: - correct answer ✅the property is abandoned States that have special legislation that requires workers' compensation coverage to be provided exclusively by the state's workers' comp program are: - correct answer ✅monopolistic MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Generally speaking, which of the following has the broadest coverage? - correct answer ✅Umbrella coverage Which of the following statements regarding Commercial Package Policies (CPP) is TRUE? - correct answer ✅NOT: A CPP is an example of a moonlike policy. OR A CPP requires a separate declarations page for each coverage. An adjuster must report a change of address to the Insurance Commissioner: - correct answer ✅30 days After a loss covered under a dwelling policy, Ordinance or Law coverage pays for: - correct answer ✅increased repair costs due to laws or codes. Jennifer's PAP has a Comprehensive deductible of $100. Jennifer lets her sister Tina borrow her car, and Tina hits a llama worth $500. The llama's owner files a claim for the loss of his llama. How will that claim be settled? - correct answer ✅NOT: $0 paid bc it is not a covered loss MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the replacement of the tree and bushes that were damaged by the windstorm? - correct answer ✅NOT: $500 OR $1,500 XYZ Insurance is a private insurer that sells flood insurance policies. Which of the following statements is FALSE? - correct answer ✅XYZ Insurance participates in the NFIP Direct Program Workers' compensation insurance can provide compensation for all of the following, EXCEPT: - correct answer ✅Lost vacation time Which of the following would NOT be covered under a typical Ocean Marine policy? - correct answer ✅The owner sustains a financial loss when her vessel is confiscated by the government. Greta's Ski Supply is covered under the Building and Personal Property Coverage Form with limits of $50,000 for business personal property and MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ James is walking down the street when Andrea, an uninsured motorist, strikes him with her car. James suffers $12,000 in injuries from the accident. He has personal injury protection of $10,000 from his own automobile insurance policy, which immediately pays him the full amount. By accepting $10,000 from his own insurance company, James has waived the right to sue Andrea for more than _____ for personal injury. - correct answer ✅$2,000 Ken is getting his certification to adjust large commercial claims for the NFIP. Which of the following is NOT required of Ken in order to qualify for this certification? - correct answer ✅Be able to accurately adjust RCBAP losses of $1,000,000 or more. Steve has just purchased a wedding ring for his new bride. If something were to happen to the ring, he'd be out a lot of money, so he purchases an insurance policy. He is able to do this because: - correct answer ✅the ring is a pure risk Which of the following employees must be covered under Workers' Compensation insurance? - correct answer ✅NOT: Korey is one of 4 MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ employees at Oakley's farm Or Margot is a secretary at St James Catholic Church A typical workers' compensation policy combines two basic forms of coverage. They are: - correct answer ✅Workers' compensation and Employers Liability Which of the following is NOT a feature of a typical Business Owners Policy? - correct answer ✅Usually Actual Cost Valuation Clara plays the harp in an orchestra. Her harp cost $12,000, and she had it for 5 years before it was stolen from her locker at a symphony hall. She recently found out a new harp will cost $15,000. Assuming her harp depreciated at $1,000 a year, how much will an actual cash value policy indemnify Clara? - correct answer ✅$10,000- ACV pays at current market value minus depreciation. Clark is filling out an application for an insurance policy. The application asks for his birth date, and Clark writes 1-24-67. His actual birthday is 1-24-63, MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ but he likes to appear younger so he uses a different date. This would be called: - correct answer ✅Misrepresentation A dryer fire scorches the interior of Bill's home, forcing him to move out while repairs are made. In addition to paying for temporary housing, he also loses the rental income he received from his roommate Frank. Which two Dwelling policy coverages could help Bill with the lost rental income AND his additional living expenses? - correct answer ✅Coverage D & Coverage E Marlene has been living in her $120,000 home for 31 years. Because she has paid off the mortgage, she decides to save some money on her monthly insurance premiums by reducing her homeowners coverage to $40,000. After a severe hailstorm totals her roof, her adjuster estimates the damage at $12,000. Assuming the insurer imposes the standard coinsurance penalty, and ignoring the deductible, how much will Marlene receive in the settlement? - correct answer ✅$5,000 Which financial institution bond is designed for all types of insurance companies? - correct answer ✅Standard Form 25 MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following is a feature typically found in a Business Owners Policy? - correct answer ✅NOT: Professional Liability Coverage According to the "Definitions" section of a Personal Auto Policy, which of the following would NOT qualify as a "family member"? - correct answer ✅The insured's ex-wife who moved out of the house 4 months ago. Which statement about Personal Article Floaters is FALSE? - correct answer ✅They have a deductible of $500 Jane's Bakery has Equipment Breakdown Protection coverage on a large industrial oven used in producing several hundred loaves of bread a day. One day, the oven malfunctions and catches fire, rendering her business inoperable for four days. In order to fill bread orders, Jane must ship her dough to a warehouse where she found another oven to rent while her oven is repaired. Under which coverage would Jane be indemnified for the shipping and oven rental costs? - correct answer ✅Extra Expense Coverage MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Flora is driving in the rain when she skids off the road and slams into Cam's billboard, totalling her car and causing $2,000 in damage to the billboard. Flora has an auto policy with ABC Insurance. Cam files a third-party claim and ABC Insurance pays him $1,500 for the billboard. Which of the following is TRUE? - correct answer ✅NOT: Cam has surrogated his right to collect the remaining $500 Melanie owns a set of 3 antique crystal vases that is worth $2,800, but during her most recent move, one of the vases was broken. Melanie and her insurer have been unable to find a replacement vase to complete the set and bring it back to its original value. Without the broken vase, the remainder of the set is only worth $1,000. What should Melanie receive from the insurer under the Pair and Set provision of her Personal Articles Floater? - correct answer ✅$1,800 Adam is shopping for a car in a local automobile dealership. While visiting the showroom, he trips over a rug that has folded over and breaks his arm in the fall. Which of the following is true? - correct answer ✅NOT: The automobile dealership may file a first party claim with its own insurance company MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Kate has a Personal Auto Policy through XYZ Insurance. In which of the following scenarios would XYZ Insurance NOT be allowed immediately to increase Kate's policy premium? - correct answer ✅NOT: Kate moves and updates her address with XYZ insurance Diana is insured under a DP-2 policy with the following coverage limits: Coverage A - $150,000, Coverage B - $15,000, and Coverage C - $25,000. She and her fiancé have planned a destination wedding, but their hotel catches fire shortly after their arrival. Smoke from the fire damages all of their belongings, including Diana's $4,000 wedding dress. Diana's loss totals $5,200. When she files a claim with her insurance company, how much can she expect to receive for this loss under her DP-2 (ignoring any deductible)? - correct answer ✅NOT: $5,200 John, a contractor, just purchased a new backhoe and wants to get an insurance policy to cover it. He's looking for a policy that will provide coverage not only on the job site, but also while transporting it back and forth between sites. What type of inland marine insurance policy would likely fit John's needs? - correct answer ✅Contractor's equipment floater MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following statements about the original Standard Fire Policy is FALSE? - correct answer ✅It was the first multi-line policy, combining both physical damage and liability coverages In a BOP, the General Aggregate Limit is: - correct answer ✅twice the per occurrence limit Which statement BEST describes the additional coverages available for both commercial and residential policies? - correct answer ✅They add coverage for specific losses or expenses Errors and Omissions coverage in an Equipment Breakdown Protection policy provides coverage for: - correct answer ✅damage sustained by the insured after a continent business made a mistake unintentionally omitted information required by the insured. Under the Earthquake and Volcanic Eruption endorsement in a commercial property policy, what is the time span within which multiple earthquake or MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ volcanic events are considered a "single occurrence" for coverage purposes? - correct answer ✅168 hours (7 days) Under the Earthquake and Volcanic Eruption endorsement in a commercial property policy, what is the time span within which multiple earthquake or volcanic events are considered a "single occurrence" for coverage purposes? - correct answer ✅Indemnification Mark is a college student and frequently needs to either rent a car or borrow his friend's car. Although he doesn't own a car of his own, he wants to buy himself some liability coverage that would apply whenever he drives someone else's car. Which coverage should Mark get? - correct answer ✅Non-owner coverage What requirements must Wholesalers and Distributors meet in order to be eligible for a BOP? - correct answer ✅25% or less of floor space is available to the general public, and less than 25% of gross income may come from retail sales. MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Which of the following is NOT one of the differences between a BAP and a truckers policy? - correct answer ✅A BAP uses coverage symbols to designate covered autos. Which of the following statements is NOT true of endorsements? - correct answer ✅NOT: Endorsements may be added to a policy at any time during the policy period Driving home after a 14-hour shift, Sam falls asleep at the wheel and plows into Sandra's home, causing extensive damage to the East wall and roof. As a result, Sandra and her family must move into a hotel until the repairs are completed. The cost of staying in a hotel is: - correct answer ✅an indirect loss. When an insurer issues an insurance policy, the actual item, person, or organization that is being insured is called the: - correct answer ✅RISK Which of the following is NOT eligible for Dwelling coverage? - correct answer ✅An 8-unit apartment building in which the owner resides. MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Helen's business is growing rapidly, so she decided to add an annex onto her office and hire another worker. While under construction, a storm blows down most of the annex structure, forcing Helen to restart from scratch. Her commercial policy provides insurance coverage equal to 75% of the property value, despite the fact that her policy requires 80% coverage to be fully insured. Which coverage extension could help Helen rebuild at replacement cost? - correct answer ✅None - Extensions are only available if the policyholder maintains the minimum level of insurance of 80% to value When Acme Paper Mill was struck by lightning, the resulting damage included a burst waste pipe, which began leaking chemical-laden waste water into the county aquifer. Acme Paper Mill discovered the leak 2 weeks later and reported it to their insurer immediately. Which additional coverage could help Acme with the expense of cleaning up the contaminated water? - correct answer ✅Pollutant cleanup and removal insurance Lewis owns a computer store, and he spends many hours a day on the sales floor demonstrating his products to customers. He often gets very animated when showing the electronics and, although he does not intend for anything MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ bad to happen, he doesn't worry too much about handling them carefully, since he knows that his insurance policy will cover any damages. This behavior would be called a: - correct answer ✅Morale hazard An insurance company may consider each of the following a risk, EXCEPT: - correct answer ✅a flood zone This provision in Ocean Marine insurance obligates insurers of various interests to share the cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its cargo. - correct answer ✅General Average DEC Construction was hired to completely renovate Randall's department store . DEC Construction is in charge of the project, but hires Mac Electric (an independent contractor) to complete the electrical portion, and requires Mac to have Owners & Contractors Protective Liability coverage for the job. Who is responsible for paying the premiums for this policy? - correct answer ✅NOT: DEC Construction MS adjuster license exam Questions and Answers (Latest Update 2024)RATED A+>. MS adjuster license exam Questions and Answers (Latest Update 2023)RATED A+ Jones' Auto in Dallas, Texas buys 50 cars from ABC Auto in Tokyo, Japan. They sign a contract whereby Jones' Auto assumes the risk of any damages to the cars until they are delivered. What term of sale have they agreed to? - correct answer ✅Cost and Frieght Craig has an HO-3 policy covering his primary residence with a Coverage A limit of $250,000, Coverage B limit of $25,000, and a Coverage C limit of $150,000. Craig also has a cabin on the lake, which was burglarized. The thieves stole much of the cabin's contents, for a total loss of $18,500. Ignoring any deductibles, how much will Craig's HO-3 policy pay for this claim? - correct answer ✅NOT: $18,500 Which Farm policy would cover animal waste overflow and chemical spills? - correct answer ✅Farm Pollution Liability Craig must close his business for three months after being injured in an auto accident. When Craig recovers, he returns to his shop where he finds broken glass and notices some of his supplies have been pilfered. Under what condition in his commercial property policy might the insurer deny coverage? - correct answer ✅Vacancy