ILLINOIS ADJUSTER UPDATED TEST EXAM MANUAL
QUESTIONS AND ANSWERS MARKED A+
✔✔100. Which of thefollowing is not an indirect loss?
(A. Builder's risk
(B. Leasehold interest
(C. Extraexpense
(D. Loss of rents - ✔✔(A. Builder's risk
✔✔101. What type of policy covers all perils that are not excluded?'
(A. All-risk or special form
(B. Named perils
(C. Replacement cost
(D. Extended coverage - ✔✔(A. All-risk or special form
✔✔102. Which of the following most accurately describes concurrent causation?
(A. Two or more policies cover the same loss
(B. Loss caused by repetitive wave action
(C. Two or more perils acting together to cause a loss
(D. Electrical injury from apower outage - ✔✔(C. Two or more perils acting together to
cause a loss
✔✔103. David and Thomas each own half of an 80-inch flatscreen TV.
Only David buys insurance, in his name only, with a limit of $12,000 and a deductible of
$250. A total loss occurs while David is using the TV. At the time of loss, the TV is
valued at $15,000. How much wil Dave and/or Thomas receive?
A. Dave and Thomas wil each receive $5,875.
B. Dave and Thomas wil each receive $7,375.
C. Davewill receive $11,750 and Thomas wil receivenothing.~
D. Dave wil receive $12,000 and Thomas wil receive nothing. - ✔✔(D. Dave wil receive
$12,000 and Thomas wil receive nothing.
✔✔104. Which of the following is not a duty of the insured in the event of loss?
(A. File a lawsuit against a person suspected of arson
(B. Cooperate with the insurance company adjuster
(C. Give a complete inventory of damaged property to the insurer
(D. Give prompt notice of the loss to the insurer - ✔✔(A. File a lawsuit against a person
suspected of arson
✔✔105. Which of the following is true about a proof of loss?
(A. It is the insured's option to prove a loss
(B. It confirms the insurance compan's opinion of the loss
(C. The insurance company must prove a loss
, (D. An insured must prove a loss in a signed, sworn statement - ✔✔(D. An insured must
prove a loss in a signed, sworn statement
✔✔106. Which of the following most accurately describes actual cash value?
(A. Replacement cost minus depreciation
(B. Replacement cost plus depreciation
(C. Replacement cost with no deduction for depreciation
(D. Price paid minus inflation - ✔✔(A. Replacement cost minus depreciation
✔✔107. Which of the following happens ni a bailment?
(A. Transfer of possession
(B. Transfer of possession and temporary title
(C. Transfer of title
(D. Release from jail - ✔✔(A. Transfer of possession
✔✔108. Which of the following is not a bailment?
(A. You bring your dishwasher to the appliance repair shop
(B. You borrow your neighbor's chainsaw
(C. You have jewelry cleaned at a jeweler
(D. You take your car in to the auto dealer for an oil change - ✔✔(B. You borrow your
neighbor's chainsaw
✔✔109. A commercial insured has three buildings insured with a blanket limit of
$375,000. At policy inception, building 1 had a value of $200,000, building 2 was valued
at $150,000, and building 3 had a value of 120,000. What is the most that would be
available for loss to any one building? Hint: on the date of loss you would not yet know
the current values of any building, but you would know the limit on the policy.
(A. $120,000
(B. $150,000
(C. $200,000
(D. $375,000 - ✔✔(D. $375,000
✔✔110. Two policies are non concurrent when:
(A. They exclude tidal flow
(B. They cover different buildings
(C. They have different expiration dates
(D. They cover the same property but with different terms and provisions - ✔✔(D. They
cover the same property but with different terms and provisions
✔✔111. What is the purpose of an insurer's declaratory action?
(A. To declare the maximum limits of liability in a civil proceeding
(B. To obtain the court's opinion of coverage under a policy in a loss situation
(C. To declare the insured's and mortgagee's rights in an insurance policy
QUESTIONS AND ANSWERS MARKED A+
✔✔100. Which of thefollowing is not an indirect loss?
(A. Builder's risk
(B. Leasehold interest
(C. Extraexpense
(D. Loss of rents - ✔✔(A. Builder's risk
✔✔101. What type of policy covers all perils that are not excluded?'
(A. All-risk or special form
(B. Named perils
(C. Replacement cost
(D. Extended coverage - ✔✔(A. All-risk or special form
✔✔102. Which of the following most accurately describes concurrent causation?
(A. Two or more policies cover the same loss
(B. Loss caused by repetitive wave action
(C. Two or more perils acting together to cause a loss
(D. Electrical injury from apower outage - ✔✔(C. Two or more perils acting together to
cause a loss
✔✔103. David and Thomas each own half of an 80-inch flatscreen TV.
Only David buys insurance, in his name only, with a limit of $12,000 and a deductible of
$250. A total loss occurs while David is using the TV. At the time of loss, the TV is
valued at $15,000. How much wil Dave and/or Thomas receive?
A. Dave and Thomas wil each receive $5,875.
B. Dave and Thomas wil each receive $7,375.
C. Davewill receive $11,750 and Thomas wil receivenothing.~
D. Dave wil receive $12,000 and Thomas wil receive nothing. - ✔✔(D. Dave wil receive
$12,000 and Thomas wil receive nothing.
✔✔104. Which of the following is not a duty of the insured in the event of loss?
(A. File a lawsuit against a person suspected of arson
(B. Cooperate with the insurance company adjuster
(C. Give a complete inventory of damaged property to the insurer
(D. Give prompt notice of the loss to the insurer - ✔✔(A. File a lawsuit against a person
suspected of arson
✔✔105. Which of the following is true about a proof of loss?
(A. It is the insured's option to prove a loss
(B. It confirms the insurance compan's opinion of the loss
(C. The insurance company must prove a loss
, (D. An insured must prove a loss in a signed, sworn statement - ✔✔(D. An insured must
prove a loss in a signed, sworn statement
✔✔106. Which of the following most accurately describes actual cash value?
(A. Replacement cost minus depreciation
(B. Replacement cost plus depreciation
(C. Replacement cost with no deduction for depreciation
(D. Price paid minus inflation - ✔✔(A. Replacement cost minus depreciation
✔✔107. Which of the following happens ni a bailment?
(A. Transfer of possession
(B. Transfer of possession and temporary title
(C. Transfer of title
(D. Release from jail - ✔✔(A. Transfer of possession
✔✔108. Which of the following is not a bailment?
(A. You bring your dishwasher to the appliance repair shop
(B. You borrow your neighbor's chainsaw
(C. You have jewelry cleaned at a jeweler
(D. You take your car in to the auto dealer for an oil change - ✔✔(B. You borrow your
neighbor's chainsaw
✔✔109. A commercial insured has three buildings insured with a blanket limit of
$375,000. At policy inception, building 1 had a value of $200,000, building 2 was valued
at $150,000, and building 3 had a value of 120,000. What is the most that would be
available for loss to any one building? Hint: on the date of loss you would not yet know
the current values of any building, but you would know the limit on the policy.
(A. $120,000
(B. $150,000
(C. $200,000
(D. $375,000 - ✔✔(D. $375,000
✔✔110. Two policies are non concurrent when:
(A. They exclude tidal flow
(B. They cover different buildings
(C. They have different expiration dates
(D. They cover the same property but with different terms and provisions - ✔✔(D. They
cover the same property but with different terms and provisions
✔✔111. What is the purpose of an insurer's declaratory action?
(A. To declare the maximum limits of liability in a civil proceeding
(B. To obtain the court's opinion of coverage under a policy in a loss situation
(C. To declare the insured's and mortgagee's rights in an insurance policy
