ALABAMA ADJUSTER UPDATED PRACTICE TEST
QUESTIONS AND ANSWERS GRADED A+
✔✔70. The First Named insured is required to notify the insurance company of a
Commercial Property loss immediately. When the insurance company requests proof of
the loss, the First Named insured has____________ days to provide the completed
form. - ✔✔60 days
✔✔71. High Time was a quiet restaurant on Lake Travis until a windstorm blew away its
roof, destroy a dock on the property, and damaged or retaining wall. Which of these
items is covered under a Commercial Property policy? - ✔✔The roof
✔✔72. Frequently, Commercial Inland Marine contracts are written as monoline
policies. They can, however, be added to the Commercial Package policy by attaching
all of the following EXCEPT: - ✔✔Commercial Inland Marine Definitions
✔✔A floater is a - ✔✔coverage on property that moves from one location to another; a
floater can also act as a separate policy.
✔✔74. Commercial Inland Marine policies cover things that - ✔✔move, are transported
domestically, or are associated with transportation and communication.
✔✔75. A Commercial Crime Coverage Form contains 8 Insuring Agreements, ranging
from Employee Theft to Money Orders and Counterfeit Paper Currency. What is the
deductible amount for the Insuring Agreements? - ✔✔Deductible amounts may vary
with each Insuring Agreement
✔✔76. Alicia was a bookkeeper who worked for Calvin at his hardware store. Calvin
discovered that she had altered the names on several checks from clients and diverted
them to her own personal bank account. First Calvin called police, then he called his
insurance agent and said, "I have a case for forgery here!" The agent replied, not
exactly Calvin, because "forgery and alteration" covers Commercial Crime losses
involving - ✔✔outgoing financial instruments.
✔✔77. Which of the following is NOT considered money under a Commercial Crime
policy? - ✔✔Securities
✔✔78. If Carla's supervisor asks her to drive a cash deposit to the bank, Carla is acting
as a(n) - ✔✔messenger
✔✔79. Which of the following is NOT a federal Workers Compensation law? - ✔✔The
Smith Act
, ✔✔80. Many states have created a _______________ to offset the increased risk of
exposure when a disabled employee suffers a work-related injury. - ✔✔Second Injury
Fund
✔✔81. Which of the following occupations is NOT usually considered an exempt
occupation for Workers Comp coverage? - ✔✔Employees of building contractors
✔✔82. In almost every work situation that involves occupational injury or illness, -
✔✔Workers Comp pays exclusively.
✔✔83. Workers Compensation is - ✔✔a state-regulated industry.
✔✔84. A shipment from China with unloaded to a warehouse dock in Galveston. The
importing company sent in the papers to pay the proper import duties, but the process is
taking so long that the company was losing money. In order to take immediate
possession of its goods, the import company could pass a(n) - ✔✔Customs bond.
✔✔85. Calvin was so upset that his mother's cousin Terry took a Bobcat tractor from
Calvin's storage shed that he took Terry to court. Terry claimed he paid for the
expensive item, but his receipt was burned in a fire. Meanwhile, Calvin needed to use
the Bobcat, so he asked the court to allow him to regain possession. "First", for the
stern judge, "I'll need a(n)_____________ bond from you." - ✔✔Replevin
✔✔86. JBC company wants to bid on a 1.8 million contract but cash flow problems are
making it difficult to find the money for the Bid bond. The Small Business Administration
(SBA) can help. Besides guaranteeing the Bid bond, the SBA can also guarantee all of
the following types of bonds EXCEPT - ✔✔License and Permit.
✔✔87. Mark, a developer, may need a bond to guarantee sidewalks, landscaping and
other promised items to be completed by the April 1st due date. Which of the following
bonds are designed to provide this guarantee? - ✔✔Ancillary
✔✔88. In a surety agreement the party to whom an obligation is owed is referred to as -
✔✔Obligee
✔✔89. A surety bond covers - ✔✔Performance
✔✔90. Equipment Breakdown coverage losses are settled on what basis? -
✔✔Replacement cost
✔✔91. Which of the following statements correctly describes the One Breakdown
provision in an Equipment Breakdown Policy? - ✔✔If an initial breakdown triggers
subsequent breakdowns it will be treated as one loss and only one deductible apply
QUESTIONS AND ANSWERS GRADED A+
✔✔70. The First Named insured is required to notify the insurance company of a
Commercial Property loss immediately. When the insurance company requests proof of
the loss, the First Named insured has____________ days to provide the completed
form. - ✔✔60 days
✔✔71. High Time was a quiet restaurant on Lake Travis until a windstorm blew away its
roof, destroy a dock on the property, and damaged or retaining wall. Which of these
items is covered under a Commercial Property policy? - ✔✔The roof
✔✔72. Frequently, Commercial Inland Marine contracts are written as monoline
policies. They can, however, be added to the Commercial Package policy by attaching
all of the following EXCEPT: - ✔✔Commercial Inland Marine Definitions
✔✔A floater is a - ✔✔coverage on property that moves from one location to another; a
floater can also act as a separate policy.
✔✔74. Commercial Inland Marine policies cover things that - ✔✔move, are transported
domestically, or are associated with transportation and communication.
✔✔75. A Commercial Crime Coverage Form contains 8 Insuring Agreements, ranging
from Employee Theft to Money Orders and Counterfeit Paper Currency. What is the
deductible amount for the Insuring Agreements? - ✔✔Deductible amounts may vary
with each Insuring Agreement
✔✔76. Alicia was a bookkeeper who worked for Calvin at his hardware store. Calvin
discovered that she had altered the names on several checks from clients and diverted
them to her own personal bank account. First Calvin called police, then he called his
insurance agent and said, "I have a case for forgery here!" The agent replied, not
exactly Calvin, because "forgery and alteration" covers Commercial Crime losses
involving - ✔✔outgoing financial instruments.
✔✔77. Which of the following is NOT considered money under a Commercial Crime
policy? - ✔✔Securities
✔✔78. If Carla's supervisor asks her to drive a cash deposit to the bank, Carla is acting
as a(n) - ✔✔messenger
✔✔79. Which of the following is NOT a federal Workers Compensation law? - ✔✔The
Smith Act
, ✔✔80. Many states have created a _______________ to offset the increased risk of
exposure when a disabled employee suffers a work-related injury. - ✔✔Second Injury
Fund
✔✔81. Which of the following occupations is NOT usually considered an exempt
occupation for Workers Comp coverage? - ✔✔Employees of building contractors
✔✔82. In almost every work situation that involves occupational injury or illness, -
✔✔Workers Comp pays exclusively.
✔✔83. Workers Compensation is - ✔✔a state-regulated industry.
✔✔84. A shipment from China with unloaded to a warehouse dock in Galveston. The
importing company sent in the papers to pay the proper import duties, but the process is
taking so long that the company was losing money. In order to take immediate
possession of its goods, the import company could pass a(n) - ✔✔Customs bond.
✔✔85. Calvin was so upset that his mother's cousin Terry took a Bobcat tractor from
Calvin's storage shed that he took Terry to court. Terry claimed he paid for the
expensive item, but his receipt was burned in a fire. Meanwhile, Calvin needed to use
the Bobcat, so he asked the court to allow him to regain possession. "First", for the
stern judge, "I'll need a(n)_____________ bond from you." - ✔✔Replevin
✔✔86. JBC company wants to bid on a 1.8 million contract but cash flow problems are
making it difficult to find the money for the Bid bond. The Small Business Administration
(SBA) can help. Besides guaranteeing the Bid bond, the SBA can also guarantee all of
the following types of bonds EXCEPT - ✔✔License and Permit.
✔✔87. Mark, a developer, may need a bond to guarantee sidewalks, landscaping and
other promised items to be completed by the April 1st due date. Which of the following
bonds are designed to provide this guarantee? - ✔✔Ancillary
✔✔88. In a surety agreement the party to whom an obligation is owed is referred to as -
✔✔Obligee
✔✔89. A surety bond covers - ✔✔Performance
✔✔90. Equipment Breakdown coverage losses are settled on what basis? -
✔✔Replacement cost
✔✔91. Which of the following statements correctly describes the One Breakdown
provision in an Equipment Breakdown Policy? - ✔✔If an initial breakdown triggers
subsequent breakdowns it will be treated as one loss and only one deductible apply
