ALABAMA ADJUSTER LATEST 2026 EVALUATION TEST
QUESTIONS AND ANSWERS GRADED A+
✔✔40. The coverages of DP-1, DP- 2 and DP-3 are identical EXCEPT for - ✔✔peril
power- that is, the increasing extent of coverage from DP-1 to DP- 3
✔✔41. The commercial package policy may contain a maximum of how many coverage
modules? - ✔✔7
✔✔42. Farm Liability coverage includes - ✔✔Advertising Injury.
✔✔43. The Livestock Coverage form covers the death of livestock resulting from
several perils. Which one is NOT one of those perils? - ✔✔Injured while in transit
✔✔44. Byron provided sheep for the "Wool Riding Event" for little kids at the Future
Farmers of America's (FAA) county wide fair. One of the 4 year old sheep riders fell and
broke his arm. The boy's parents brought a claim against the FAA and Byron. Will
Byron's Farm Liability coverage pay for the boy's injury? - ✔✔No, it will not pay for the
claim because the policy contains an exclusion for any race or contest involving
livestock.
✔✔45. During a controlled burn of a wheat field, an unexpected wind blew the fire out of
control and sent dense smoke over a passing highway. This caused a truck to drift from
its lane and crash into another car. If the farmer who set the fire in trouble? Will his
Farms and Rancher's policy pay for this claim? - ✔✔Yes, the negligent act occurred in
the course of a farm activity.
✔✔46. The Farm Liability Coverage Form can be said to be a mixture of personal
liability of the__________ and the business liability of the__________ policies. -
✔✔Homeowners - Commercial General Liability
✔✔47. You and your insurance company cannot agree on the value of the car you
totaled. What method will be used to settle the dispute? - ✔✔Appraisal
✔✔48. Jim was walking from his car to catch a shuttle bus to the Austin Jazz Festival
when a car hit him, causing several injuries that made him lose a week's wages. Jim
had a Personal Auto Policy with Medical Payments. What did his policy pay? - ✔✔Jim's
policy will pay for his medical payments
✔✔49. Randy decided to make a few extra bucks by hiring out his pickup on weekends
for hauling trash from houses. What does he need to think about regarding his auto
insurance? - ✔✔Randy's policy does not cover the use of his pickup for hire.
, ✔✔50. While considering a personal auto policy, Pam had questions about
Uninsured/Underinsured Motorists (UM/UIM) coverage. To help clear things up, which
of the following statements about Uninsured/Underinsured Motorist will you tell her if not
true? - ✔✔Pam must buy UM/UIM.
✔✔51. Commercial Property Insurance insures all of the following types of real property
EXCEPT - ✔✔Land
✔✔52. The definition of an employee in a Commercial Auto policy includes all of the
following EXCEPT - ✔✔a temporary worker.
✔✔53. A business concerned with its potential liability when employees use their own
vehicles on company errands needs - ✔✔Employers Non-Ownership Liability
✔✔54. When an overnight guest asked the Austin Hotel's valet to park her Porsche
Boxster, the young man accelerated in the parking garage and scraped the side of the
car. The damage cost a little more than if he had been parking a Chevy- a total of
$2,300. The hotel's Garagekeepers Coverage with Collision and Other than Collision
insurance policy couldn't help their recently- unemployed valet but how can it help the
hotel? - ✔✔It will pay for all of the damages arriving out of the collision, minus the
deductible.
✔✔55. If Barry is injured while repairing a car in the auto repair shop where he is
employed, which coverage will pay for his medical costs? - ✔✔Workers' Compensation
✔✔56. What is the minimum liability limit that the Motor Carrier Act of 1980 requires for
those transporting specified hazardous materials such as explosives? - ✔✔$5,000,000
✔✔57. The Business Auto Coverage is designed to cover all of the following EXCEPT -
✔✔mobile equipment
✔✔58. The limits of liability under the Business Auto form are typically expressed as a
(n) - ✔✔single limit
✔✔59. The First Named Insured can cancel a policy at any time without notice, and the
company can cancel with 10 days' notice for nonpayment of premium. If the company
cancels for any other reason, it is required to give at least__________ notice. - ✔✔30
days
✔✔60. Duvall Industries decides to sell its company to Brent Companies. To make the
change easier, Duval advises Brent that it can take over the existing CPP. What does
the Common Conditions clause say about this action? - ✔✔Yes, if the insurance
company grants permission
QUESTIONS AND ANSWERS GRADED A+
✔✔40. The coverages of DP-1, DP- 2 and DP-3 are identical EXCEPT for - ✔✔peril
power- that is, the increasing extent of coverage from DP-1 to DP- 3
✔✔41. The commercial package policy may contain a maximum of how many coverage
modules? - ✔✔7
✔✔42. Farm Liability coverage includes - ✔✔Advertising Injury.
✔✔43. The Livestock Coverage form covers the death of livestock resulting from
several perils. Which one is NOT one of those perils? - ✔✔Injured while in transit
✔✔44. Byron provided sheep for the "Wool Riding Event" for little kids at the Future
Farmers of America's (FAA) county wide fair. One of the 4 year old sheep riders fell and
broke his arm. The boy's parents brought a claim against the FAA and Byron. Will
Byron's Farm Liability coverage pay for the boy's injury? - ✔✔No, it will not pay for the
claim because the policy contains an exclusion for any race or contest involving
livestock.
✔✔45. During a controlled burn of a wheat field, an unexpected wind blew the fire out of
control and sent dense smoke over a passing highway. This caused a truck to drift from
its lane and crash into another car. If the farmer who set the fire in trouble? Will his
Farms and Rancher's policy pay for this claim? - ✔✔Yes, the negligent act occurred in
the course of a farm activity.
✔✔46. The Farm Liability Coverage Form can be said to be a mixture of personal
liability of the__________ and the business liability of the__________ policies. -
✔✔Homeowners - Commercial General Liability
✔✔47. You and your insurance company cannot agree on the value of the car you
totaled. What method will be used to settle the dispute? - ✔✔Appraisal
✔✔48. Jim was walking from his car to catch a shuttle bus to the Austin Jazz Festival
when a car hit him, causing several injuries that made him lose a week's wages. Jim
had a Personal Auto Policy with Medical Payments. What did his policy pay? - ✔✔Jim's
policy will pay for his medical payments
✔✔49. Randy decided to make a few extra bucks by hiring out his pickup on weekends
for hauling trash from houses. What does he need to think about regarding his auto
insurance? - ✔✔Randy's policy does not cover the use of his pickup for hire.
, ✔✔50. While considering a personal auto policy, Pam had questions about
Uninsured/Underinsured Motorists (UM/UIM) coverage. To help clear things up, which
of the following statements about Uninsured/Underinsured Motorist will you tell her if not
true? - ✔✔Pam must buy UM/UIM.
✔✔51. Commercial Property Insurance insures all of the following types of real property
EXCEPT - ✔✔Land
✔✔52. The definition of an employee in a Commercial Auto policy includes all of the
following EXCEPT - ✔✔a temporary worker.
✔✔53. A business concerned with its potential liability when employees use their own
vehicles on company errands needs - ✔✔Employers Non-Ownership Liability
✔✔54. When an overnight guest asked the Austin Hotel's valet to park her Porsche
Boxster, the young man accelerated in the parking garage and scraped the side of the
car. The damage cost a little more than if he had been parking a Chevy- a total of
$2,300. The hotel's Garagekeepers Coverage with Collision and Other than Collision
insurance policy couldn't help their recently- unemployed valet but how can it help the
hotel? - ✔✔It will pay for all of the damages arriving out of the collision, minus the
deductible.
✔✔55. If Barry is injured while repairing a car in the auto repair shop where he is
employed, which coverage will pay for his medical costs? - ✔✔Workers' Compensation
✔✔56. What is the minimum liability limit that the Motor Carrier Act of 1980 requires for
those transporting specified hazardous materials such as explosives? - ✔✔$5,000,000
✔✔57. The Business Auto Coverage is designed to cover all of the following EXCEPT -
✔✔mobile equipment
✔✔58. The limits of liability under the Business Auto form are typically expressed as a
(n) - ✔✔single limit
✔✔59. The First Named Insured can cancel a policy at any time without notice, and the
company can cancel with 10 days' notice for nonpayment of premium. If the company
cancels for any other reason, it is required to give at least__________ notice. - ✔✔30
days
✔✔60. Duvall Industries decides to sell its company to Brent Companies. To make the
change easier, Duval advises Brent that it can take over the existing CPP. What does
the Common Conditions clause say about this action? - ✔✔Yes, if the insurance
company grants permission
