ADJUSTER PRO UPDATED FINAL PAPER QUESTIONS AND
SOLUTIONS RATED A+
✔✔Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter ruins
Jackie's laptop during a flight. When they go to court, Jackie is the:
A. Tortfeasor
B. Plaintiff
C. Tort
D. Defendant - ✔✔B. Plaintiff
✔✔Ginger under the mistaken impression that Jackie made a lewd gesture at her,
attacks and injuries Jackie after a soccer game. When Jackie takes Ginger to court,
Ginger is the:
A. Accuser
B. Plaintiff
C. Tortfeasor
D. Felon - ✔✔C. Tortfeasor
✔✔Jerrod is awarded $4,000 in a court case after Ollie accidently starts a fire and burns
down his detached garage. This award is an example of:
A. Statutory damages
B. General damages
C. Punitive damages
D. Special damages - ✔✔D. Special damages
✔✔Define: Statutory law - ✔✔Based on written, legislated laws
✔✔Define: Common law - ✔✔Based on court cases and customs
✔✔Define: Tort law - ✔✔Body of law that applies to civil court cases and addresses any
civil wrongdoing
✔✔Define: Intentional tort - ✔✔Planned wrongful act
✔✔Define: Negligent tort - ✔✔Unintentional wrongful act
✔✔Define: Tortfeasor - ✔✔The defendant in the court case
✔✔Define: Complaint - ✔✔Filed by a claimant against a policyholder
✔✔Define: Answer - ✔✔Policyholder's response to complaint
,✔✔Define: Default judgment - ✔✔Issued if policyholder fails to answer complaint
✔✔What are the duties of the insured? - ✔✔Alert insurer if taken to court
Send insurer all information pertaining to the case
✔✔What is the insurer obligated to do? - ✔✔Defend the insured in a court case
✔✔What is a reservation of rights or a non-waiver agreement? - ✔✔Issues when the
case may not fall under the terms of the insurance policy
✔✔Define: Compensatory damages - ✔✔Awards money for tangible and intangible
damages
✔✔Define: Special damages - ✔✔Money awarded for exact value of tangible damages
✔✔Define: General damages - ✔✔Money awarded for intangible, emotional damages
decided by court
✔✔Define: Punitive damages - ✔✔Awards money for malicious, willful misconduct on
the part of the tortfeasor
✔✔Define: Statute of limitation - ✔✔A plaintiff has a limited time to file a complaint after
an occurrence
✔✔Define: Wrongful death act - ✔✔Protects parties associated with a death caused by
negligence
✔✔Define: Waiver of sovereign immunity - ✔✔Individuals may sue government entities
in certain cases
✔✔Define: Workers' compensation law - ✔✔Keeps employees from suing their
employers for injuries
✔✔Define: Auto no-fault laws - ✔✔Keeps people from suing drivers for damages due to
motorized vehicles
✔✔Define: Breach of product warranty - ✔✔Manufacturers are strictly liable for
producing faulty or dangerous products
✔✔While driving, Sue looks down to adjust the radio and crashes the car into Jane's
car, damaging both cars and injuring herself. Which of the following statements applies
to Sue?
,A. Sue is legally liable for the damages to Jane's car
B. In order to be indemnified by Sue's insurer, Jane must prove Sue's legal liability in
court
C. Jane is liable for Sue's injuries
D. Sue's liability insurance would cover Sue's injuries - ✔✔A. Sue is legally liable for the
damages to Jane's car
✔✔Which of the following incidents would a liability insurance policy cover?
A. A man crashes his car into his own fence
B. A fire damages the back bedroom of your house
C. The company van is stolen from your warehouse
D. A man slips inside a grocery store and injures himself - ✔✔D. A man slips inside a
grocery store and injures himself
✔✔Sam is a claimant seeking damages from XYZ Insurance. The XYZ adjuster comes
to meet with Sam to hear the circumstances of her injury. The adjuster determines that
Sam played an active role in her own injuries, and therefore XYZ Insurance will pay her
nothing at all for her injuries. What defense is the adjuster using?
A. No negligence
B. Comparative negligence
C. Contributory negligence
D. Full negligence - ✔✔C. Contributory negligence
✔✔Jim is out turkey hunting on a private ranch when he hears some movement in the
brush. Assuming it's a turkey, Jim raises his shotgun and fires. Unfortunately for Jim, he
has not taken a turkey, but has severely injured one of the landowner's calves instead.
Jim is responsible for the cost of the calf because he acted with:
A. Negligence
B. Great care
C. Responsibility
D. Liability - ✔✔A. Negligence
✔✔Strict liability:
A. Holds a person liable for his actions regardless of how much care he demonstrates
B. Does not hold up in a court of law
C. Releases an individual from liability in dealing with dangerous objects
D. Holds an individual to a lower level of care - ✔✔A. Holds a person liable for his
actions regardless of how much care he demonstrates
✔✔Vicarious liability _____ negligence.
, A. Negates
B. Transfers
C. Causes
D. Prevents - ✔✔B. Transfers
✔✔Joe's homeowners policy has a single limit of $150,000 for bodily injury liability
coverage. One day, Joe's friend was injured in an accident on Joe's property, and the
medical bills came to $15,000, which were covered by Joe's homeowners policy. Which
of the following is TRUE?
A. Joe's policy still has $150,000 available for bodily injury liability coverage
B. Joe's per occurrence limit has been reduced by $15,000, but the aggregate limit is
unchanged
C. Joe's aggregate limit has been reduced by $15,000, but the occurrence limit is
unchanged
D. Joe's policy now has a $135,000 available for bodily injury liability coverage - ✔✔C.
Joe's aggregate limit has been reduced by $15,000, but the occurrence limit is
unchanged
✔✔Greg has two limits listed on his homeowners policy for liability coverage: one for
bodily injury and one for property damage. Each limit applied on a per occurrence basis.
What type of limits are these?
A. Situational limits
B. Split limits
C. Aggregate limits
D. Single limits - ✔✔D. Single limits
✔✔James owns a masonry business and has a commercial liability policy with the
following liability limits: $150,000 per occurrence / $500,000 per policy term. While at a
job site, his cement truck's chute cannot reach the pour site, so the operator adds two
extra chutes, extending its length. The chute collapses under the weight of the concrete,
causing $35,000 in injury to one of the workers. The loss is covered by the policy, and
James' insurer pays the claim. What will the new limits be for the remainder of the policy
term?
A. $115,000 / $500,000
B. $115,000 / $465,000
C. $150,000 / $500,000
D. $150,000 / $465,000 - ✔✔D. $150,000 / $465,000
✔✔ABC Masonry, Inc. has an aggregate liability policy with limits of 100,,000.
One day, an accident at a construction site leads to $150,000 in damage to public
property. Assuming the cause of loss is covered under ABC Masonry's liability policy,
how will this claim be paid?
SOLUTIONS RATED A+
✔✔Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter ruins
Jackie's laptop during a flight. When they go to court, Jackie is the:
A. Tortfeasor
B. Plaintiff
C. Tort
D. Defendant - ✔✔B. Plaintiff
✔✔Ginger under the mistaken impression that Jackie made a lewd gesture at her,
attacks and injuries Jackie after a soccer game. When Jackie takes Ginger to court,
Ginger is the:
A. Accuser
B. Plaintiff
C. Tortfeasor
D. Felon - ✔✔C. Tortfeasor
✔✔Jerrod is awarded $4,000 in a court case after Ollie accidently starts a fire and burns
down his detached garage. This award is an example of:
A. Statutory damages
B. General damages
C. Punitive damages
D. Special damages - ✔✔D. Special damages
✔✔Define: Statutory law - ✔✔Based on written, legislated laws
✔✔Define: Common law - ✔✔Based on court cases and customs
✔✔Define: Tort law - ✔✔Body of law that applies to civil court cases and addresses any
civil wrongdoing
✔✔Define: Intentional tort - ✔✔Planned wrongful act
✔✔Define: Negligent tort - ✔✔Unintentional wrongful act
✔✔Define: Tortfeasor - ✔✔The defendant in the court case
✔✔Define: Complaint - ✔✔Filed by a claimant against a policyholder
✔✔Define: Answer - ✔✔Policyholder's response to complaint
,✔✔Define: Default judgment - ✔✔Issued if policyholder fails to answer complaint
✔✔What are the duties of the insured? - ✔✔Alert insurer if taken to court
Send insurer all information pertaining to the case
✔✔What is the insurer obligated to do? - ✔✔Defend the insured in a court case
✔✔What is a reservation of rights or a non-waiver agreement? - ✔✔Issues when the
case may not fall under the terms of the insurance policy
✔✔Define: Compensatory damages - ✔✔Awards money for tangible and intangible
damages
✔✔Define: Special damages - ✔✔Money awarded for exact value of tangible damages
✔✔Define: General damages - ✔✔Money awarded for intangible, emotional damages
decided by court
✔✔Define: Punitive damages - ✔✔Awards money for malicious, willful misconduct on
the part of the tortfeasor
✔✔Define: Statute of limitation - ✔✔A plaintiff has a limited time to file a complaint after
an occurrence
✔✔Define: Wrongful death act - ✔✔Protects parties associated with a death caused by
negligence
✔✔Define: Waiver of sovereign immunity - ✔✔Individuals may sue government entities
in certain cases
✔✔Define: Workers' compensation law - ✔✔Keeps employees from suing their
employers for injuries
✔✔Define: Auto no-fault laws - ✔✔Keeps people from suing drivers for damages due to
motorized vehicles
✔✔Define: Breach of product warranty - ✔✔Manufacturers are strictly liable for
producing faulty or dangerous products
✔✔While driving, Sue looks down to adjust the radio and crashes the car into Jane's
car, damaging both cars and injuring herself. Which of the following statements applies
to Sue?
,A. Sue is legally liable for the damages to Jane's car
B. In order to be indemnified by Sue's insurer, Jane must prove Sue's legal liability in
court
C. Jane is liable for Sue's injuries
D. Sue's liability insurance would cover Sue's injuries - ✔✔A. Sue is legally liable for the
damages to Jane's car
✔✔Which of the following incidents would a liability insurance policy cover?
A. A man crashes his car into his own fence
B. A fire damages the back bedroom of your house
C. The company van is stolen from your warehouse
D. A man slips inside a grocery store and injures himself - ✔✔D. A man slips inside a
grocery store and injures himself
✔✔Sam is a claimant seeking damages from XYZ Insurance. The XYZ adjuster comes
to meet with Sam to hear the circumstances of her injury. The adjuster determines that
Sam played an active role in her own injuries, and therefore XYZ Insurance will pay her
nothing at all for her injuries. What defense is the adjuster using?
A. No negligence
B. Comparative negligence
C. Contributory negligence
D. Full negligence - ✔✔C. Contributory negligence
✔✔Jim is out turkey hunting on a private ranch when he hears some movement in the
brush. Assuming it's a turkey, Jim raises his shotgun and fires. Unfortunately for Jim, he
has not taken a turkey, but has severely injured one of the landowner's calves instead.
Jim is responsible for the cost of the calf because he acted with:
A. Negligence
B. Great care
C. Responsibility
D. Liability - ✔✔A. Negligence
✔✔Strict liability:
A. Holds a person liable for his actions regardless of how much care he demonstrates
B. Does not hold up in a court of law
C. Releases an individual from liability in dealing with dangerous objects
D. Holds an individual to a lower level of care - ✔✔A. Holds a person liable for his
actions regardless of how much care he demonstrates
✔✔Vicarious liability _____ negligence.
, A. Negates
B. Transfers
C. Causes
D. Prevents - ✔✔B. Transfers
✔✔Joe's homeowners policy has a single limit of $150,000 for bodily injury liability
coverage. One day, Joe's friend was injured in an accident on Joe's property, and the
medical bills came to $15,000, which were covered by Joe's homeowners policy. Which
of the following is TRUE?
A. Joe's policy still has $150,000 available for bodily injury liability coverage
B. Joe's per occurrence limit has been reduced by $15,000, but the aggregate limit is
unchanged
C. Joe's aggregate limit has been reduced by $15,000, but the occurrence limit is
unchanged
D. Joe's policy now has a $135,000 available for bodily injury liability coverage - ✔✔C.
Joe's aggregate limit has been reduced by $15,000, but the occurrence limit is
unchanged
✔✔Greg has two limits listed on his homeowners policy for liability coverage: one for
bodily injury and one for property damage. Each limit applied on a per occurrence basis.
What type of limits are these?
A. Situational limits
B. Split limits
C. Aggregate limits
D. Single limits - ✔✔D. Single limits
✔✔James owns a masonry business and has a commercial liability policy with the
following liability limits: $150,000 per occurrence / $500,000 per policy term. While at a
job site, his cement truck's chute cannot reach the pour site, so the operator adds two
extra chutes, extending its length. The chute collapses under the weight of the concrete,
causing $35,000 in injury to one of the workers. The loss is covered by the policy, and
James' insurer pays the claim. What will the new limits be for the remainder of the policy
term?
A. $115,000 / $500,000
B. $115,000 / $465,000
C. $150,000 / $500,000
D. $150,000 / $465,000 - ✔✔D. $150,000 / $465,000
✔✔ABC Masonry, Inc. has an aggregate liability policy with limits of 100,,000.
One day, an accident at a construction site leads to $150,000 in damage to public
property. Assuming the cause of loss is covered under ABC Masonry's liability policy,
how will this claim be paid?
