ALABAMA ADJUSTER LATEST 2026 TEST PAPER
QUESTIONS AND ANSWERS GRADED A+
✔✔Failure to use the required amount of fertilizer - ✔✔Roberts tomato crop production
was well below, the revenue guarantee this year, and Robert files a claim against his
crop revenue policy for the low yield. However, the adjuster denies Roberts claim after
cleaning her inspection. What might be a reason for the denial?
✔✔An actual production history - ✔✔in order to set a yield guarantee for Maren's policy,
Maren's agent will need a record of the last four years of her crop yields. This record is
called.
✔✔Jane did not leave samples of the destroyed crop for the adjuster to examine . -
✔✔Farmer Jane had an MPCI policy in place when her wheat field was ruined by a hail
storm . Jane promptly plowed up the wheat and planted a cover crop . Two days later
she filed a claim with her insurer . The claim was denied . What might be the reason for
the denial ?
✔✔It is subsidized by the FCIC . - ✔✔Which of the following statements about Crop -
Hail insurance is FALSE ?
✔✔The Risk Management Agency . - ✔✔Who sets the critical production dates and
assigns commodity market prices for MPCI policies ?
✔✔Because of their complexity , commercial policies only offer named - peril coverage .
- ✔✔Which of the following does NOT apply to commercial property insurance ?
✔✔A paint mixer permanently affixed to the floor - ✔✔A fire burns down Jenny's
Hardware , leaving virtually nothing salvageable . Which of the following items would
NOT be covered under Coverage B of the Building and Personal Property Coverage
Form in her commercial property policy ?
✔✔$ 80,000 - ✔✔A fire in Sarah's factory causes her to shut the factory doors for 50
days . To limit her loss of income and keep production going , Sarah spends $ 125,000
renting equipment and another building . Sarah's commercial property policy doesn't
have Business Income Coverage , but it does include Extra Expense Coverage . The
limit on her Extra Expense coverage is $ 100,000 and she has Limits of Loss Payment
of 40 % / 80 % / 100 % during her period of restoration . How much indemnification will
Sarah receive for her extra expenses ?
✔✔An employee's laptop which she uses for work - ✔✔A fire burns down Jenny's
Hardware , leaving virtually nothing salvageable . Which of the following items would
NOT be covered under Coverage A of the Building and Personal Property Coverage
Form in her commercial property policy ?
, ✔✔A bandsaw permanently affixed to the floor - ✔✔Lucille owns her own woodworking
business , building custom items such as dressers , wooden trunks , and mantelpieces .
A fire destroys her entire operation and Lucille files a claim with her insurer . Which of
the following would be covered under Coverage A of the Building and Personal Property
Coverage Form in her commercial property policy ?
✔✔Claims - Made policy from Jan 1 2003 - Jan 1 2004 with a supplemental extended
tail . - ✔✔On January 27 , 2004 , Ryan was using an exercise bike from NusquamCycle
when the chain broke , causing him to fall and bruise his knee . Seven years later , on
January 25 , 2011 , Ryan's knee gave out while jogging . His doctor told him that he'll
need surgery and that this deterioration was probably caused by his bruise from the
exercise bike . Assuming NusquamCycle is no longer in business , which CGL policy
would cover Ryan's claim filed on January 25 , 2011 ?
✔✔Employee - ✔✔David just opened his own consulting business , and has taken on
several new clients . He's having difficulty managing his schedule on top of all the other
responsibilities related to owning his own business , so he hires Tina via contract to
work as his full - time office manager for $ 15 per hour . According to the definitions in
David's Commercial General Liability policy , which of the following best describes Tina
?
✔✔A claims - made policy from Jan 31 2009 - Jan 31 2011 - ✔✔chain broke , causing
him to fall and severely three years later , on January 25 , On January 27 , 2008 , Ryan
was using an exercise bike purchased from NusquamCycle when the bruise his knee . It
seemed to heal just fine , but 2011 , Ryan's knee gave out while jogging . His doctor told
him that he'll need surgery and that this deterioration resulted from the earlier accident
with the exercise bike . Which of the following CGL policies may cover Ryan's claim filed
January 25 , 2011 ?
✔✔Dr. Adams ' insurer must seek her consent before settling the claim . - ✔✔Dr.
Adams is in the middle of a malpractice lawsuit . Her insurer decides it will be more cost
effective to simply settle the suit rather than draw the process out over several months .
Assuming Dr. Adams holds a Professional Liability Policy , which of the following
statements is TRUE in regards to settling the claim ?
✔✔a clause that requires the insurance company to get approval from the insured
before settling a claim . - ✔✔The " Consent to Settle " clause in the Professional Liability
policy is best described as :
✔✔Collateral - ✔✔Which of these is NOT a party to a surety bond ?
✔✔requires that every fiduciary of an employee benefit plan and every person who
handles funds or other property of those plans must be bonded . - ✔✔The Employee
Retirement Income Security Act ( ERISA ) :
QUESTIONS AND ANSWERS GRADED A+
✔✔Failure to use the required amount of fertilizer - ✔✔Roberts tomato crop production
was well below, the revenue guarantee this year, and Robert files a claim against his
crop revenue policy for the low yield. However, the adjuster denies Roberts claim after
cleaning her inspection. What might be a reason for the denial?
✔✔An actual production history - ✔✔in order to set a yield guarantee for Maren's policy,
Maren's agent will need a record of the last four years of her crop yields. This record is
called.
✔✔Jane did not leave samples of the destroyed crop for the adjuster to examine . -
✔✔Farmer Jane had an MPCI policy in place when her wheat field was ruined by a hail
storm . Jane promptly plowed up the wheat and planted a cover crop . Two days later
she filed a claim with her insurer . The claim was denied . What might be the reason for
the denial ?
✔✔It is subsidized by the FCIC . - ✔✔Which of the following statements about Crop -
Hail insurance is FALSE ?
✔✔The Risk Management Agency . - ✔✔Who sets the critical production dates and
assigns commodity market prices for MPCI policies ?
✔✔Because of their complexity , commercial policies only offer named - peril coverage .
- ✔✔Which of the following does NOT apply to commercial property insurance ?
✔✔A paint mixer permanently affixed to the floor - ✔✔A fire burns down Jenny's
Hardware , leaving virtually nothing salvageable . Which of the following items would
NOT be covered under Coverage B of the Building and Personal Property Coverage
Form in her commercial property policy ?
✔✔$ 80,000 - ✔✔A fire in Sarah's factory causes her to shut the factory doors for 50
days . To limit her loss of income and keep production going , Sarah spends $ 125,000
renting equipment and another building . Sarah's commercial property policy doesn't
have Business Income Coverage , but it does include Extra Expense Coverage . The
limit on her Extra Expense coverage is $ 100,000 and she has Limits of Loss Payment
of 40 % / 80 % / 100 % during her period of restoration . How much indemnification will
Sarah receive for her extra expenses ?
✔✔An employee's laptop which she uses for work - ✔✔A fire burns down Jenny's
Hardware , leaving virtually nothing salvageable . Which of the following items would
NOT be covered under Coverage A of the Building and Personal Property Coverage
Form in her commercial property policy ?
, ✔✔A bandsaw permanently affixed to the floor - ✔✔Lucille owns her own woodworking
business , building custom items such as dressers , wooden trunks , and mantelpieces .
A fire destroys her entire operation and Lucille files a claim with her insurer . Which of
the following would be covered under Coverage A of the Building and Personal Property
Coverage Form in her commercial property policy ?
✔✔Claims - Made policy from Jan 1 2003 - Jan 1 2004 with a supplemental extended
tail . - ✔✔On January 27 , 2004 , Ryan was using an exercise bike from NusquamCycle
when the chain broke , causing him to fall and bruise his knee . Seven years later , on
January 25 , 2011 , Ryan's knee gave out while jogging . His doctor told him that he'll
need surgery and that this deterioration was probably caused by his bruise from the
exercise bike . Assuming NusquamCycle is no longer in business , which CGL policy
would cover Ryan's claim filed on January 25 , 2011 ?
✔✔Employee - ✔✔David just opened his own consulting business , and has taken on
several new clients . He's having difficulty managing his schedule on top of all the other
responsibilities related to owning his own business , so he hires Tina via contract to
work as his full - time office manager for $ 15 per hour . According to the definitions in
David's Commercial General Liability policy , which of the following best describes Tina
?
✔✔A claims - made policy from Jan 31 2009 - Jan 31 2011 - ✔✔chain broke , causing
him to fall and severely three years later , on January 25 , On January 27 , 2008 , Ryan
was using an exercise bike purchased from NusquamCycle when the bruise his knee . It
seemed to heal just fine , but 2011 , Ryan's knee gave out while jogging . His doctor told
him that he'll need surgery and that this deterioration resulted from the earlier accident
with the exercise bike . Which of the following CGL policies may cover Ryan's claim filed
January 25 , 2011 ?
✔✔Dr. Adams ' insurer must seek her consent before settling the claim . - ✔✔Dr.
Adams is in the middle of a malpractice lawsuit . Her insurer decides it will be more cost
effective to simply settle the suit rather than draw the process out over several months .
Assuming Dr. Adams holds a Professional Liability Policy , which of the following
statements is TRUE in regards to settling the claim ?
✔✔a clause that requires the insurance company to get approval from the insured
before settling a claim . - ✔✔The " Consent to Settle " clause in the Professional Liability
policy is best described as :
✔✔Collateral - ✔✔Which of these is NOT a party to a surety bond ?
✔✔requires that every fiduciary of an employee benefit plan and every person who
handles funds or other property of those plans must be bonded . - ✔✔The Employee
Retirement Income Security Act ( ERISA ) :
