pg. 1 Hawaii Adjuster Newest 2024 Test Bank/ Complete 600 Actual Exam Questions with Correct Detailed Answers (Verified Answers)/ Graded A+
What is the purpose of the Hawaii Property Insurance Association? - Correct Answer - To assure the availability of basic property insurance
Which of the following is included in the Crime policy's definition of "securities"? - Correct Answer - Evidences of debt
What is the maximum amount payable for bail bonds under the "supplementary payments" provided by Part A of the Personal Auto policy? - Correct Answer - $250
All of the following items have a special limit of liability for Coverage C of the
Homeowners forms, EXCEPT: - Correct Answer - Outdoor furniture
Which of the following is a TRUE statement regarding how bullion and manuscripts are covered under the 1943 New York Standard Fire policy? - Correct Answer - Bullion or manuscripts may be covered, but only if they are specifically named in the policy
Which of the following statements about risk is the most accurate? - Correct Answer - Risk can be retained, shared, transferred, avoided, or reduced
Which of the following statements is NOT true concerning the Law of Large numbers? - Correct Answer - The size of the sample group is not relevant to the accuracy of the results
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pg. 2 Which of the following best demonstrates the meaning of "contract of adhesion?" - Correct Answer - Since the insurance company formulates the policy language, the courts usually will resolve any ambiguities in the insured's favor
The retroactive date on a claims-made CGL form specifies: - Correct Answer - That losses occurring before the date will not be covered by the policy
Which of the following types of losses will NOT be excluded by Thomas Drug Company's CGL policy? - Correct Answer - Bodily injury to a customer arising out of a forklift being used by the insured
Which of the following would be considered "economic losses" that could result in compensatory damages being awarded in a negligence case? - Correct Answer - Medical expense and lost wages
Which of these statements best describes "the law of agency?" - Correct Answer - A relationship in which someone is authorized by contract to represent another party
Before interviewing the injured worker, who has filed a claim, the adjuster should: - Correct Answer - Determine if the employee is represented by an attorney
A claim is brought against the named insured under a CGL policy. Before settlement is made the insured files for bankruptcy. This action: - Correct Answer - Does not relieve the insurance company from paying the claim. is correct
Risk is best defined as: - Correct Answer - An uncertainty of loss
Which of the following statements regarding Commercial Auto coverage is NOT TRUE?
- Correct Answer - The definition of "trucker" and "motor carrier" are the same in both
the Truckers form and the Motor Carrier form
What coverage is used to cover damage to a customer's auto in the care and custody of a repair garage? - Correct Answer - Garage keeper’s liability 2 / 4
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All of the following statements regarding medical payments under the general liability policy are true, EXCEPT: - Correct Answer - Loss of earnings as a result of injuries caused by a product of the named insured
Which of the following is not a prohibited practice as specified in the NAIC Unfair Practices article? - Correct Answer - Unfair employment practices
An "admitted insurer" in any given state could include all of the following, EXCEPT: - Correct Answer - A surplus lines insurer
Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he decides to have the valet park his car, saving his girlfriend from getting wet. The valet is driving the car into the restaurant's parking garage, when he clips the side of the garage entrance with the front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and headlight of Chaz's car. How would Part D of Chaz's Personal Automobile respond to this loss? - Correct Answer - It would cover the loss to Chaz's car because it is the insured automobile, but would not cover the damage to the garage
The definition of "occupying" in the personal auto definitions means all of the following,
EXCEPT: - Correct Answer - Under a vehicle
The state licensing examination scores for a license application in Hawaii, are valid for _____ from the date of the examination. - Correct Answer - two years
The MCS-90 Endorsement to a Truckers or Motor Carrier Coverage form can be cancelled: - Correct Answer - With 35-days’ notice if either the insured or the insurer cancels
The standardized Building and Personal Property Coverage form requires the insured to submit a signed, sworn proof of loss statement: - Correct Answer - Within 60 days of the insurance company's request
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pg. 4 A claim is brought against the named insured under a CGL policy. Before settlement is made the insured files for bankruptcy. This action: - Correct Answer - Does not relieve the insurance company from paying the claim
Joan is covered for $10,000 under a personal article’s floater for her jewelry. She acquires another piece of jewelry valued at $2,500. Under the automatic coverage provision for newly acquired property within the policy, how much coverage would apply to the newly acquired jewelry for 30 days? - Correct Answer - $2,500
A burglar apprehended in Smith's Jewelry Store by Mr. Smith, the owner, puts up a fight and suffers a broken jaw as a consequence. The burglar sues Smith's Jewelry Store for bodily injury. Will the store's CGL policy provide defense of the suit? - Correct Answer - Yes. Although intentional, the injury was committed by Mr. Smith to protect himself and his property and is therefore covered
All of the following are included in the definition of "fungus" under the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria additional coverage of the Commercial
Property cause of loss forms, EXCEPT: - Correct Answer - Algae
The insured carries a yacht policy and is pulling a water skier. The skier is a family member and is injured. What coverage might apply to this accident? - Correct Answer - Medical payments coverage
The EC peril of "smoke" under the standard DP-1 form covers which of the following? - Correct Answer - The release of soot from a furnace that damages the walls of the living room in the covered dwelling
An insurer has violated the insurance laws of Hawaii. The Attorney General on behalf of the Insurance Commissioner seeks an action in forfeiture against the insurer. What is the penalty that can apply each day that the violation continues? - Correct Answer -
$10,000
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out of the control of the insured: - Correct Answer - The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid
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