Adjuster Exam 2 Questions and
Answers 100% PASS
Which of the following is practicing risk retention?—ANSWER--The restaurant owner who
removes earthquake coverage from his policy is choosing to retain this risk, instead of
transferring it to the insurance company.
A pre-defined monetary portion of an insurance claim paid by a policyholder is a:—ANSWER-
-deductible
What kind of adjuster is employed by only one insurance company and is paid by salary?—
ANSWER--staff adjuster
Which of the following sequences is most likely in the correct chronological order?—
ANSWER--Acknowledge the claim, then open a line of communication with the claimant.
When the settlement difference between an insurer and a claimant is minor:—ANSWER--it
should be settled in favor of the claimant
Bill's home was destroyed by a tornado and it will cost $235,000 to rebuild. His homeowners
policy has a $225,000 limit and a $1,700 deductible. What will most likely be the final
settlement amount for Bill's home?—ANSWER--$225,000
Cindy and her insurer cannot reach an agreement on her property claim. They have gone
back and forth for weeks without coming within $10,000 of each other. Both honestly
, believe they are making a fair offer for indemnification, but they are at an impasse. At this
point, both parties want a third party to make a legally binding decision, but they don't want
to go to court. What is the best option for Cindy and her insurer?—ANSWER--Arbitration is a
dispute resolution method in which a neutral third party hears both sides of the argument
and provides a legally binding decision.
Which of these homeowners policy coverages does NOT usually have a deductible?—
ANSWER--Fire Department Service Charge does not usually have a deductible. Personal
Property and Debris Removal are subject to the policy deductible, while Sewer Backup is
excluded in the homeowners forms.
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he still
wants to protect his initial investment. What is the cheapest policy option that would
protect Simon's financial interest in his home, even in the brutal winters?—ANSWER--The
HO-2 is the cheapest form for a homeowner, but it still covers all 17 Broad Form perils,
which include the weight of ice, snow, or sleet, as well as freezing of plumbing, heating, air
conditioning systems, or domestic appliances.
An HO-3 policy is intended for a/an:—ANSWER--HO-3 policy is intended for individuals, not
corporations, businesses, or government entities.
Which of the following statements about the Watercraft Liability endorsement in a
homeowners policy is FALSE?—ANSWER--The Watercraft Liability endorsement is intended
for watercraft powered by motors with more than 25 horsepower and sailing vessels 26 feet
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Answers 100% PASS
Which of the following is practicing risk retention?—ANSWER--The restaurant owner who
removes earthquake coverage from his policy is choosing to retain this risk, instead of
transferring it to the insurance company.
A pre-defined monetary portion of an insurance claim paid by a policyholder is a:—ANSWER-
-deductible
What kind of adjuster is employed by only one insurance company and is paid by salary?—
ANSWER--staff adjuster
Which of the following sequences is most likely in the correct chronological order?—
ANSWER--Acknowledge the claim, then open a line of communication with the claimant.
When the settlement difference between an insurer and a claimant is minor:—ANSWER--it
should be settled in favor of the claimant
Bill's home was destroyed by a tornado and it will cost $235,000 to rebuild. His homeowners
policy has a $225,000 limit and a $1,700 deductible. What will most likely be the final
settlement amount for Bill's home?—ANSWER--$225,000
Cindy and her insurer cannot reach an agreement on her property claim. They have gone
back and forth for weeks without coming within $10,000 of each other. Both honestly
, believe they are making a fair offer for indemnification, but they are at an impasse. At this
point, both parties want a third party to make a legally binding decision, but they don't want
to go to court. What is the best option for Cindy and her insurer?—ANSWER--Arbitration is a
dispute resolution method in which a neutral third party hears both sides of the argument
and provides a legally binding decision.
Which of these homeowners policy coverages does NOT usually have a deductible?—
ANSWER--Fire Department Service Charge does not usually have a deductible. Personal
Property and Debris Removal are subject to the policy deductible, while Sewer Backup is
excluded in the homeowners forms.
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he still
wants to protect his initial investment. What is the cheapest policy option that would
protect Simon's financial interest in his home, even in the brutal winters?—ANSWER--The
HO-2 is the cheapest form for a homeowner, but it still covers all 17 Broad Form perils,
which include the weight of ice, snow, or sleet, as well as freezing of plumbing, heating, air
conditioning systems, or domestic appliances.
An HO-3 policy is intended for a/an:—ANSWER--HO-3 policy is intended for individuals, not
corporations, businesses, or government entities.
Which of the following statements about the Watercraft Liability endorsement in a
homeowners policy is FALSE?—ANSWER--The Watercraft Liability endorsement is intended
for watercraft powered by motors with more than 25 horsepower and sailing vessels 26 feet
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
