ADJUSTER PRO- INSURANCE ADJUSTER TEST 2023 -
2024 REAL EXAM 250+ QUESTIONS AND CORRECT
ANSWERS|AGRADE
Phil runs a locomotive repair business, which is insured under a commercial property policy. One night, some blasting powder is accidentally ignited and blows a crowbar through one of the engines. No one is hurt, but the locomotive is severely damaged. Which coverage option may help cover the cost of repairing the engine from this unfortunate event?Legal Liability Coverage Law and Ordinance, also known as Code Upgrade Coverage, covers which of the following expenses?The cost of repairs or upgrades done to meet new building codes Which of the following perils is excluded from coverage in a National Flood Insurance Program policy?Water-main breakage Logan has a small plane that he enjoys flying on the weekends, but he never takes friends or passengers with him. Which of the following is TRUE?Logan should buy Bodily Injury Excluding Passengers and Property Damage Liability, but he doesn't need to spend the money on Passenger Bodily Injury Liability.Which of the following statements about the Standard Flood Insurance Policy is FALSE?It is subject to state courts In Ocean Marine insurance, this clause appropriates the loss to one company, rather than spreading the loss among all cargo owners.Particular Average Which of the following situations does NOT involve an insurable risk? 1 / 4
Dale just bought 30 shares of a hot new startup company online.An insurance contract is an agreement between two parties where each side promises to be truthful, factual, and honest about their respective positions.
Therefore, an insurance contract is said to be a contract of:
utmost good faith.Once a claimant files a complaint to the court, the claimant will become the plaintiff Which of the following is NOT a characteristic of insurance contracts?Universal Strict liability holds a person liable for his actions regardless of how much care he demonstrates.Which of the following best describes who adjusters can work for?Either insurers or claimants What is one thing that an adjuster is not able to negotiate about?Punitive damages Which of the following statements does NOT apply to the Standard Fire Policy?It automatically covers wind and vandalism Which of the following is NOT true of Personal Injury Protection?Pip is usually secondary coverage Which statement BEST describes Umbrella coverage?Excess liability insurance that can also provide additional coverages not provided by the base policy Which statement BEST describes the "Follow Form" in excess liability coverage?Excess liability insurance that "follows" the base insurance policy to the letter 2 / 4
When Emma’s house was burglarized, the thieves stole several pieces from her art collection. Although the pieces were only prints, Emma files a claim stating that they were originals, and therefore worth a good deal more than they really are. What has Emma committed?soft fraud Bill holds a hull policy for his cargo ship which sails between China and the United States, transporting wooden toys. On voyage (i) his vessel is damaged by pirates. On voyage (ii) the vessel is damaged by striking employees. On voyage (iii) the vessel is destroyed when it strays into a war zone and is struck by a missile. Bill’s losses will be covered by his hull coverage for which of these voyages?
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Which of the following statements about MPCI is FALSE?MPCI is a form of crop-revenue insurance.Disability payments through workers' compensation insurance are primarily based
on:
...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?Extended non owner Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on May 31. Which of the following statements is TRUE?lemon Insurance must notify Hugh at least 45 days before the policy expires.What is the most common type of Time Element Insurance?Business Interruption Insurance Which of the following homeowners policies provide coverage on an open- peril basis for personal property without endorsement?HO-5 In a Commercial Crime policy, a “messenger” is defined as: 3 / 4
the insured, a business partner, or an employee who has care or custody of insured property inside the premises, excluding anyone acting as a watchperson or janitor After a loss covered under a dwelling policy, Ordinance or Law coverage pays
for:
increased repair costs due to laws or codes.Which of the following is NOT one of the requirements that a “Fast Food Restaurant” business must meet in order to qualify for a BOP?Liquor must not account for more than 25% of total annual sales.Bonnie’s PAP includes Comprehensive coverage. Which of the following losses could this coverage pay for?Bonnie's car catches on fire A typical workers' compensation policy combines two basic forms of coverage.
They are:
Workers' Compensation and Employers Liability ??Which of the following statements about Crop-Hail insurance is FALSE?It is generally available from private insurers. ??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?$1500 Which of the following is NOT true of the Company’s Options provision in the standard fire policy?...After an earthquake, Jake’s home is still standing, but it is a little shaken. The damage is not extensive, but Jake wants to cash in on the situation, so he takes a sledgehammer to some of his extra belongings and adds them to his claim.
Jake has committed:
property Insurance fraud
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