Claims Adjuster Final (Multiple
Choice) Questions with 100% correct
answers
A driver convicted of driving under the influence must carry liability limits of at
least: - CORRECT ANSWER- 100/300/50
The right to sue when damaged by the practices of an insurance company is based
upon the: - CORRECT ANSWER- Unfair Trade Practices Act
The cost to replace an item less depreciation is a description of: - CORRECT
ANSWER- Actual Cash Value
An adjuster is a ___ agent. - CORRECT ANSWER- Fiduciary
Auto liability insurance will pay damages to others for all of the following,
EXCEPT: - CORRECT ANSWER- Injuries caused by intentionally hitting someone
An auto dealer allowed a customer to test drive a vehicle believing that the person
was interested in buying the car. The customer tricked the dealer and stole the
car. Which coverage would provide physical damage coverage if the car was
damaged or wrecked by the thief? - CORRECT ANSWER- The coverage needed by
a business to cover the loss of property surrendered as a
result of a kidnapping threat of the insured is:
An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of -
CORRECT ANSWER- The insured and insurer
An insurer gives which of the following as Consideration for an insurance policy? -
CORRECT ANSWER- A Promise
The interest of the insured and all other persons in the property involved in a claim is
found in - CORRECT ANSWER- A Proof of Loss
An insured rear-ends another driver's vehicle. The auto policy that pays damages to
repair the damaged vehicle is a _______? - CORRECT ANSWER- Liability Policy
Your insurance company wrote an auto insurance binder for an owner who said that he
did not have any prior accidents. Immediately thereafter it was discovered that he did
not tell the truth. The company now wants to cancel the binder as quickly as possible.
What
is true? - CORRECT ANSWER- 5 days’ notice required
, For insurance to pay damages, an insurable interest must exist: - CORRECT
ANSWER- When the loss takes place
Texting while driving is best described as a: - CORRECT ANSWER- Hazard
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of
$200,000. Both policies are pro-rata policies. How much will policy B pay for this loss?
- CORRECT ANSWER- $60,000
I sold my home yesterday, signed a deed and transferred title. Last night there was a
house fire. I had not yet cancelled my homeowner's insurance. The purchaser also had
a homeowner's policy. Which policy should pay to pay the claim? - CORRECT
ANSWER- Purchaser's policy
Giving prompt notice of loss is best described as a policy: - CORRECT ANSWER-
Condition
If there is a total loss by an insured peril to a FL building, the insurer must pay: -
CORRECT ANSWER- Actual Cash Value
A Loss Payable Clause refers to - CORRECT ANSWER- Lenders interest in
personal property
My coin collection was appraised and my insurance company specifically insured the
valued of that collection. That is an example of: - CORRECT ANSWER- A Valued
Policy
An insurance contract is based on the Principle of: - CORRECT ANSWER- Utmost
Good Faith
The two kinds of waivers are: - CORRECT ANSWER- express and implied
Proximate Cause is the unbroken connection between the occurrence and ____ that
grows out of the occurrence. - CORRECT ANSWER- Damages
Which loss settlement valuation may be a violation of the Principle of Indemnity? -
CORRECT ANSWER- Replacement Cost
If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the
value of the property is $100,000, what loss amount will the insurer pay? - CORRECT
ANSWER- $45,000
The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If
a hurricane loss of $6,000 occurs to the home that is valued and insured for $100,000,
how much will the policy pay? - CORRECT ANSWER- $1,000
A waiver is defined as - CORRECT ANSWER- Giving up a known right voluntarily
Choice) Questions with 100% correct
answers
A driver convicted of driving under the influence must carry liability limits of at
least: - CORRECT ANSWER- 100/300/50
The right to sue when damaged by the practices of an insurance company is based
upon the: - CORRECT ANSWER- Unfair Trade Practices Act
The cost to replace an item less depreciation is a description of: - CORRECT
ANSWER- Actual Cash Value
An adjuster is a ___ agent. - CORRECT ANSWER- Fiduciary
Auto liability insurance will pay damages to others for all of the following,
EXCEPT: - CORRECT ANSWER- Injuries caused by intentionally hitting someone
An auto dealer allowed a customer to test drive a vehicle believing that the person
was interested in buying the car. The customer tricked the dealer and stole the
car. Which coverage would provide physical damage coverage if the car was
damaged or wrecked by the thief? - CORRECT ANSWER- The coverage needed by
a business to cover the loss of property surrendered as a
result of a kidnapping threat of the insured is:
An adjuster is a fiduciary agent with a responsibility of loyalty to the interest of -
CORRECT ANSWER- The insured and insurer
An insurer gives which of the following as Consideration for an insurance policy? -
CORRECT ANSWER- A Promise
The interest of the insured and all other persons in the property involved in a claim is
found in - CORRECT ANSWER- A Proof of Loss
An insured rear-ends another driver's vehicle. The auto policy that pays damages to
repair the damaged vehicle is a _______? - CORRECT ANSWER- Liability Policy
Your insurance company wrote an auto insurance binder for an owner who said that he
did not have any prior accidents. Immediately thereafter it was discovered that he did
not tell the truth. The company now wants to cancel the binder as quickly as possible.
What
is true? - CORRECT ANSWER- 5 days’ notice required
, For insurance to pay damages, an insurable interest must exist: - CORRECT
ANSWER- When the loss takes place
Texting while driving is best described as a: - CORRECT ANSWER- Hazard
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a limit of
$200,000. Both policies are pro-rata policies. How much will policy B pay for this loss?
- CORRECT ANSWER- $60,000
I sold my home yesterday, signed a deed and transferred title. Last night there was a
house fire. I had not yet cancelled my homeowner's insurance. The purchaser also had
a homeowner's policy. Which policy should pay to pay the claim? - CORRECT
ANSWER- Purchaser's policy
Giving prompt notice of loss is best described as a policy: - CORRECT ANSWER-
Condition
If there is a total loss by an insured peril to a FL building, the insurer must pay: -
CORRECT ANSWER- Actual Cash Value
A Loss Payable Clause refers to - CORRECT ANSWER- Lenders interest in
personal property
My coin collection was appraised and my insurance company specifically insured the
valued of that collection. That is an example of: - CORRECT ANSWER- A Valued
Policy
An insurance contract is based on the Principle of: - CORRECT ANSWER- Utmost
Good Faith
The two kinds of waivers are: - CORRECT ANSWER- express and implied
Proximate Cause is the unbroken connection between the occurrence and ____ that
grows out of the occurrence. - CORRECT ANSWER- Damages
Which loss settlement valuation may be a violation of the Principle of Indemnity? -
CORRECT ANSWER- Replacement Cost
If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000 and the
value of the property is $100,000, what loss amount will the insurer pay? - CORRECT
ANSWER- $45,000
The insured has a Homeowner's insurance policy with a 5% Hurricane deductible. If
a hurricane loss of $6,000 occurs to the home that is valued and insured for $100,000,
how much will the policy pay? - CORRECT ANSWER- $1,000
A waiver is defined as - CORRECT ANSWER- Giving up a known right voluntarily
