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Insurance adjuster exam questions Test bank Final
Question 1: During a storm, heavy winds cause a tree limb to
break and fall onto Paul's house, causing $6,500 in damage.
Paul's insurance company now considers his house:
CORRECT ANSWER : A Loss
Question 2: Which of the following best describes a "risk,"
according to the insurance definition?
CORRECT ANSWER : A potential for financial loss
Question 3: We have an expert-written solution to this problem!
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo patron. In court, the injured
patron's lawyer could invoke the doctrine of:
CORRECT ANSWER : Res Ipsa Loquitur
Question 4: Which of the following best defines the doctrine of
Res Ipsa Loquitur?
CORRECT ANSWER: The circumstances of the injury make it
obvious that the defendant is negligent; no proof is needed
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Question 5: Nina's home is located in a high crime
neighborhood. One day, she comes home from work to find that her garage door had been spray-painted with graffiti. Nina's
insurer would consider the act of vandalism to Nina's garage a:
CORRECT ANSWER : Peril
Question 6: An economic device used to protect against the risk
of realizing unforeseen and extraordinary financial loss is called:
CORRECT ANSWER : A Peril
Question 7: Anytown Pediatrics has been having a hard time
finding medical malpractice insurance. The premiums are extraordinarily high, and they get higher every year. Finally, fed up with the cost of insurance, the directors decide to form their own insurance company, which will serve only Anytown Pediatrics. This way, any profits generated by the insurer will come back to Anytown Pediatrics. What kind of insurance company would this be?
CORRECT ANSWER : Captive insurer
Question 8: In an insurance contract, exclusions serve all of the
following purposes, except:
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CORRECT ANSWER : add coverages that need special
treatment
Question 9: Sam was tired of the neighbor's trees along the fence
line poking through the fence and dropping leaves in his yard, so he reached across the fence with his pole saw and cut down the neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is ordered to pay $500 for the tree. Under which category of damage would this fall?
CORRECT ANSWER : Compensory Damage
Question 10: Jackie recently inherited a life-sized marble statue
of her great-grandfather. It is an irreplaceable antique, and it is nearly impossible to determine the ACV. Which type of policy would best indemnify Jackie in the event that the statue was ever damaged?
CORRECT ANSWER : Agreed Value Policy
Question 11: ABC Consulting has a CGL policy and an
Umbrella policy, but the CGL runs from January 1 to December 31 and the Umbrella policy runs from June 1 to May 31. This
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difference in inception and expiration dates creates confusion
when settling claims. This condition is known as:
CORRECT ANSWER : Nonconcurency
Question 12: 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 soaks the carpets and shorts-out all the computers, causing thousands of dollars in damage. The office must close for two months during
repairs. The sprinklers soaking the office would be considered:
CORRECT ANSWER : An occurrence
Question 13: Sara's vehicle was stolen and her insurer paid her
theft claim for the total value of the car. A week later, the police found Sara's car and returned it to her. Which of the following statements is true?
CORRECT ANSWER : The Recovered Property provision states
that Sara must notify the insurer and either return the settlement payment or surrender the vehicle to the insurer
Question 14: As Seth is driving along a country road, a deer
jumps out in front of him. This causes Seth to veer off the road