INSURANCE ADJUSTER EXAM QUESTIONS AND CORRECT ANSWERS

INSURANCE ADJUSTER EXAM
QUESTIONS AND CORRECT ANSWERS

WhichA2kindA2ofA2lossesA2areA2coveredA2underA2aA2standardA2fireA2policy?A2-A2Ans--Direct

AllA2firesA2areA2notA2coveredA2byA2theA2StandardA2FireA2policies,A2onlyA2thoseA2that:A2-
A2Ans--areA2hostileA2andA2haveA2aA2flameA2orA2glow


AtA2whatA2timeA2doesA2aA2fireA2policyA2goA2intoA2affect?A2-A2Ans--
12:01amA2standardA2timeA2atA2theA2locationA2ofA2theA2insured'sA2property

AA2propertyA2isA2insuredA2underA2twoA2StandardA2FireA2policiesA2forA2$25,000A2each.A2AA2
fireA2causesA2$10,000A2worthA2ofA2damage.A2WhatA2isA2theA2maximumA2amountA2theA2ins
uredA2mayA2collectA2underA2eachA2policy?A2-A2Ans--$5,000

AA2fireA2burningA2inA2theA2middleA2ofA2theA2livingA2roomA2wouldA2beA2considered:A2-A2Ans--
aA2hostileA2fire

AnA2insured'sA2houseA2isA2damagedA2byA2fireA2causedA2byA2aA2neighbor'sA2negligence.A2T
heA2insuranceA2companyA2willA2attemptA2toA2recoverA2damageA2fromA2theA2neighbor.A2Thi
sA2isA2called:A2-A2Ans--subrogation

WhichA2ofA2theA2followingA2statementsA2areA2trueA2concerningA2requirementsA2ofA2theA2st
andardA2fireA2policy?A2-A2Ans--
TheA2insuredA2mustA2separateA2damagedA2fromA2undamagedA2propertyA2inA2theA2eventA2t
hereA2isA2aA2lossA2ANDA2IfA2aA2lossA2occurs,A2theA2insuredA2normallyA2hasA260A2daysA2toA2
fileA2aA2proofA2ofA2lossA2withA2theA2insurer

WhichA2typesA2ofA2propertyA2areA2excludedA2fromA2coverageA2underA2theA2basicA2fireA2pol
icy?A2-A2Ans--accounts,A2currency,A2deeds,A2andA2securities

WhoA2isA2insuredA2underA2theA2StandardA2FireA2policy?A2-A2Ans--
theA2namedA2insuredA2andA2hisA2legalA2representatives

AnA2agreementA2whichA2affordsA2temporaryA2insuranceA2protectionA2untilA2theA2policyA2isA
2issuedA2isA2called:A2-A2Ans--aA2binder


asA2aA2generalA2rule,A2aA2completeA2fireA2insuranceA2policyA2wouldA2beA2madeA2upA2of:A2-
A2Ans--theA2StandardA2FireA2policyA2withA2oneA2orA2moreA2formsA2attached


TheA2oneA2conditionA2listedA2belowA2whichA2willA2notA2voidA2aA2fireA2policy:A2
a)A2falseA2swearing
b)A2misrepresentation
c)A2over-insurance

,d)A2concealmentA2-A2Ans--over-insurance

replacementA2costA2minusA2depreciation:A2-A2Ans--ActualA2CashA2ValueA2(ACV)

TheA2StandardA2FireA2policyA2withA2anA2extendedA2coverageA2endorsementA2attachedA2c
oversA2whichA2ofA2theA2following:A2-A2Ans--riot

AA2lossA2dueA2toA2orderA2ofA2CivilA2Authority:A2-A2Ans--
isA2excludedA2unlessA2theA2lossA2occursA2becauseA2ofA2anA2orderA2byA2CivilA2AuthoritiesA2
forA2theA2purposeA2ofA2controllingA2aA2fire

TheA2termA2"unoccupancy"A2refersA2toA2theA2absenceA2ofA2:A2-A2Ans--
personsA2fromA2aA2building

SupposeA2aA2fireA2occursA2onA2FebruaryA226th.A2OnA2AprilA230th,A2theA2insuranceA2comp
anyA2notifiesA2theA2mortgageeA2theA2insuredA2hasA2notA2filedA2aA2proofA2ofA2loss.A2ToA2pro
tectA2theirA2interest,A2theA2mortgageeA2mustA2fileA2aA2proofA2ofA2lossA2withinA2_________A
2daysA2afterA2whatA2date?A2-A2Ans--60A2daysA2afterA2AprilA230th


ForA2recoveryA2underA2theA2StandardA2FireA2policy,A2aA2partyA2must:A2-A2Ans--
beA2namedA2inA2theA2policyA2andA2showA2anA2insurableA2interestA2inA2theA2propertyA2atA2th
eA2timeA2theA2lossA2occurs

WhatA2isA2theA2requirementA2onA2howA2muchA2experienceA2oneA2mustA2haveA2toA2beA2ele
ctedA2theA2insuranceA2commissionerA2inA2Georgia?A2-A2Ans--None

OnceA2elected,A2howA2longA2isA2theA2insuranceA2commissioner'sA2term?A2-A2Ans--
4A2years

IsA2thereA2aA2limitA2onA2theA2numberA2ofA2termsA2anA2insuranceA2commissionerA2canA2ser
ve?A2-A2Ans--No

WhoA2isA2Georgia'sA2currentA2insuranceA2commissioner?A2-A2Ans--RalphA2Hudgens

WhatA2twoA2capacitiesA2doesA2Georgia'sA2insuranceA2commissionerA2serve?A2-A2Ans--
1.A2ChiefA2OfficerA2ofA2InsuranceA2Dept.
2.A2ChiefA2FireA2Marshall

WhatA2happensA2ifA2theA2InsuranceA2CommissionerA2hasA2toA2resignA2early?A2-A2Ans--
NoA2election;A2theA2ChiefA2DeputyA2willA2takeA2over

WhatA2isA2theA2requirementA2toA2serveA2asA2ChiefA2DeputyA2inA2Georgia?A2-A2Ans--
mustA2haveA2aA2bondA2inA2theA2amountA2ofA2$15,000

IfA2youA2areA2aA2domesticA2insurerA2inA2Georgia,A2howA2oftenA2doesA2codeA2sayA2yourA2fin
ancialsA2mustA2beA2examined?A2-A2Ans--onceA2everyA25A2years

, OnlyA2oneA2courtA2inA2GeorgiaA2hasA2theA2rightA2toA2overturnA2theA2decisionA2ofA2theA2Insu
ranceA2Commissioner.A2WhichA2isA2it?A2-A2Ans--SuperiorA2CourtA2ofA2FultonA2County

WhatA2certificateA2isA2requiredA2forA2aA2companyA2toA2beA2anA2authorizedA2insurerA2inA2Ge
orgia?A2-A2Ans--CertificateA2ofA2Authority

SurplusA2LinesA2RiskA2-A2Ans--hasA2beenA2rejectedA2byA23A2authorizedA2insurers

WhatA2isA2theA2primaryA2reasonA2theA2stateA2ofA2GeorgiaA2wouldA2revokeA2anA2insuranceA
2company'sA2certificateA2toA2authorize?A2-A2Ans--ifA2they'reA2underA2financialA2distress


WhatA2areA2theA2requirementsA2toA2beA2aA2licensedA2producerA2inA2Georgia?A2-A2Ans--
mustA2beA2atA2leastA218A2yearsA2old,A2takeA2aA240A2hourA2course,A2passA2licensingA2exam,
A2applyA2forA2license,A2passA2backgroundA2check


WhichA2ofA2theA2followingA2wouldA2beA2consideredA2anA2"offer"?A2-A2Ans--
theA2applicantA2submitsA2anA2applicationA2toA2theA2companyA2withA2payment

AllA2ofA2theA2followingA2areA2trueA2aboutA2insurableA2riskA2except:
a)A2theA2lossA2mustA2notA2beA2catastrophicA2inA2nature
b)A2theA2lossA2mustA2beA2largeA2enoughA2toA2createA2hardship
c)A2theA2lossA2mustA2notA2beA2definiteA2andA2definable
d)A2theA2lawA2ofA2largeA2numbersA2shouldA2applyA2-A2Ans--
c)A2theA2lossA2mustA2notA2beA2definiteA2andA2definable

allA2ofA2theA2followingA2areA2partsA2ofA2theA2insuranceA2contractA2except:A2
a)A2declarations
b)A2insuringA2agreements
c)A2conditions
d)A2inclusionsA2-A2Ans--d)A2inclusions

somethingA2thatA2increasesA2theA2chanceA2ofA2aA2perilA2occurringA2isA2knownA2asA2a(n):A2-
A2Ans--hazard


openA2peril,A2orA2"allA2risk",A2forms:A2-A2Ans--nameA2theA2exclusionsA2andA2limitations

WhenA2aA2personA2decidesA2notA2toA2buyA2insuranceA2becauseA2ofA2theA2cost,A2whatA2me
thodA2ofA2handlingA2riskA2hasA2beenA2undertaken?A2-A2Ans--riskA2retention

theA2insuranceA2industryA2dealsA2withA2thoseA2areasA2ofA2riskA2whereA2theA2chancesA2ofA2l
ossA2are:A2-A2Ans--anywhereA2betweenA20%A2andA2100%

whichA2ofA2theA2followingA2isA2notA2anA2elementA2forA2theA2formationA2ofA2aA2validA2contrac
t?A2
a)A2consideration