NM ADJUSTER COMPLETE REVIEW 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉In a standard workers compensation policy, when would
employer's liability coverage apply? Answer: For employee-injury
claims that are outside the scope of the workers compensation law.
◉Which of the following is not an "additional coverage" under
homeowners liability Section II coverage? Answer: Payments made
by the insurer to settle a claim.
◉Symbol 2 is entered for one of the physical damage coverages in
the declarations of the BAP. The insured buys an additional auto
after the policy begins. The newly acquired auto will become a
covered auto: Answer: Automatically.
◉What is a requirement that a professional association must meet
to obtain group insurance? Answer: It must have been in existence
for at least two years.
◉Third-party provisions allow for an entity that lends money to an
insured to purchase property, to be named on the insurance for that
,property. In property insurance, this is known as a "standard
mortgage clause." In auto insurance, it is known as: Answer: Loss
payable clause.
◉Technician A says that when acoustical foam is removed during
the repair, it is not necessary to replace it. Technician B says the
acoustical materials should be replaced with structural foam to
maintain structural sound requirements. Who is right? Answer:
Neither.
◉The insured carries auto insurance in New York and has purchased
the Supplementary Uninsured Motorist Coverage (SUM). This
coverage: Answer: Replaces the statutory uninsured motorist
coverage.
◉Substitute services will provide: Answer: $25 per day for one year.
◉Entering into any agreement to commit, or by any concerted
action committing, any act resulting in or tending to result in
unreasonable restraint of the business of insurance is an example of:
Answer: Coercion.
◉An employee has been asked to use his own personal vehicle to
perform certain tasks on behalf of his employer. What coverage is
used under the business auto policy to protect the employer for
, lawsuits when the employee has an accident that causes legal action
against the employer? Answer: Employers non-ownership coverage.
◉What is not specifically considered an unfair trade practice under
the insurance code of most states? Answer: Appointment of
producers by unauthorized insurers.
◉Are costs to recall products that may be defective considered "your
product" under the CGL policy? Answer: No.
◉Would the Business Owner's Policy (BOP) cover injury or damage
caused by the operation of mobile equipment? Answer: Yes.
◉A company has been hired to determine the extent of pollution
damage and recommend methods of its removal. However, it fails to
identify some of the pollutants. What coverage might this company
need to cover their liability exposures? Answer: Environmental
Errors and Omissions Coverage.
◉Convenience stores selling gasoline must have a minimum of ______
square feet in total floor area in order to qualify for the BOP?
Answer: 3,000.
QUESTIONS WITH SOLUTIONS GRADED A+
◉In a standard workers compensation policy, when would
employer's liability coverage apply? Answer: For employee-injury
claims that are outside the scope of the workers compensation law.
◉Which of the following is not an "additional coverage" under
homeowners liability Section II coverage? Answer: Payments made
by the insurer to settle a claim.
◉Symbol 2 is entered for one of the physical damage coverages in
the declarations of the BAP. The insured buys an additional auto
after the policy begins. The newly acquired auto will become a
covered auto: Answer: Automatically.
◉What is a requirement that a professional association must meet
to obtain group insurance? Answer: It must have been in existence
for at least two years.
◉Third-party provisions allow for an entity that lends money to an
insured to purchase property, to be named on the insurance for that
,property. In property insurance, this is known as a "standard
mortgage clause." In auto insurance, it is known as: Answer: Loss
payable clause.
◉Technician A says that when acoustical foam is removed during
the repair, it is not necessary to replace it. Technician B says the
acoustical materials should be replaced with structural foam to
maintain structural sound requirements. Who is right? Answer:
Neither.
◉The insured carries auto insurance in New York and has purchased
the Supplementary Uninsured Motorist Coverage (SUM). This
coverage: Answer: Replaces the statutory uninsured motorist
coverage.
◉Substitute services will provide: Answer: $25 per day for one year.
◉Entering into any agreement to commit, or by any concerted
action committing, any act resulting in or tending to result in
unreasonable restraint of the business of insurance is an example of:
Answer: Coercion.
◉An employee has been asked to use his own personal vehicle to
perform certain tasks on behalf of his employer. What coverage is
used under the business auto policy to protect the employer for
, lawsuits when the employee has an accident that causes legal action
against the employer? Answer: Employers non-ownership coverage.
◉What is not specifically considered an unfair trade practice under
the insurance code of most states? Answer: Appointment of
producers by unauthorized insurers.
◉Are costs to recall products that may be defective considered "your
product" under the CGL policy? Answer: No.
◉Would the Business Owner's Policy (BOP) cover injury or damage
caused by the operation of mobile equipment? Answer: Yes.
◉A company has been hired to determine the extent of pollution
damage and recommend methods of its removal. However, it fails to
identify some of the pollutants. What coverage might this company
need to cover their liability exposures? Answer: Environmental
Errors and Omissions Coverage.
◉Convenience stores selling gasoline must have a minimum of ______
square feet in total floor area in order to qualify for the BOP?
Answer: 3,000.
