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MONTANA ALL LINES ADJUSTER (PEARSON VUE)
EXAMINATION COMPLETE VERIFIED QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR||NEWEST EXAM!!!
An insured has purchased Coverage A and Coverage B of
a standard Businessowners policy and the limit of
insurance shown in the Declarations is 80% of the
replacement cost value, how will losses be settled? -
Answer-Both Coverage A and Coverage B will be settled
on a replacement cost basis
administrator bond - Answer-A bond required by the court
of the administrator of the estate of the deceased
What does the Small Business Administration (SBA)
surety bond program provide? - Answer-Reimburses the
sureties that provide the bonds a percentage of the losses
sustained if the contractor defaults. .
The "control of property" condition of the Commercial
Property policy: - Answer-States that a negligent act of
someone beyond the insured's direction or control will not
affect the coverage.
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The "liberalization clause" of an insurance policy - Answer-
States that if an insurer decides to broaden its standard
policy coverages, then all outstanding policies issued prior
to that decision will automatically receive those new
coverages at no additional premium
After completing an inspection of an insured's pressure
equipment and fire suppression systems, the inspector
determines that the pressure equipment needs to be
repaired and the suppression systems have not been
cleaned and inspected in the time frame required by the
policy. The insurer will: - Answer-Suspend coverage
immediately by red tagging the items until they are
repaired, cleaned and pass reinspection.
HO-2 (broad form) - Answer-(broad form): covers the
dwelling, other structures, and personal property on a
named perils basis
HO-8 covers what? - Answer-HO-8 is Modified Coverage
Form. It covers the least broad perils. This is the MOST
LIMITED HO form. it provides the very basic peril
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coverage. Coverage for both buildings and contens are
considered on an ACV basis only.
The insured has filed a claim under the "Business Income
Department Properties - Broad Form" because the primary
buyer of products and services from the business has filed
for bankruptcy under this form the primary buyers
business would be known as - Answer-A recipient location
recipient location - Answer-Businesses who support
insured by being the primary buyer for their products
HO-3 (special form) - Answer-covers the dwelling and
other structures on a risk-of-direct-physical loss basis. All
direct physical losses are covered except those losses
specifically excluded. Personal property is covered on a
named perils basis
HO-5 Comprehensive Form - Answer-provides open perils
coverage ("all-risks coverage") on the dwelling, other
structures and personal property.
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HO-2 (broad form) - Answer-covers the dwelling, other
structures, and personal property on a named perils basis
HO-4 (contents broad form) - Answer-Only covers a
tenant's personal property on a named perils basis
The dwelling is insured for 200,000 under DP-2 dwelling
policy how much coverage applies to the barn? - Answer-
Nothing farm property are not eligible under the dwelling
policy.
A Covered Auto includes those vehicle(s) listed on the
Declarations, plus any trailers or wagons owned by the
Named Insured, any newly acquired vehicles, and any
vehicle used as a _________. - Answer-Temporary
Substitute Auto
The covered auto is defined in the policy as all of the
following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
MONTANA ALL LINES ADJUSTER (PEARSON VUE)
EXAMINATION COMPLETE VERIFIED QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR||NEWEST EXAM!!!
An insured has purchased Coverage A and Coverage B of
a standard Businessowners policy and the limit of
insurance shown in the Declarations is 80% of the
replacement cost value, how will losses be settled? -
Answer-Both Coverage A and Coverage B will be settled
on a replacement cost basis
administrator bond - Answer-A bond required by the court
of the administrator of the estate of the deceased
What does the Small Business Administration (SBA)
surety bond program provide? - Answer-Reimburses the
sureties that provide the bonds a percentage of the losses
sustained if the contractor defaults. .
The "control of property" condition of the Commercial
Property policy: - Answer-States that a negligent act of
someone beyond the insured's direction or control will not
affect the coverage.
,2|Page
The "liberalization clause" of an insurance policy - Answer-
States that if an insurer decides to broaden its standard
policy coverages, then all outstanding policies issued prior
to that decision will automatically receive those new
coverages at no additional premium
After completing an inspection of an insured's pressure
equipment and fire suppression systems, the inspector
determines that the pressure equipment needs to be
repaired and the suppression systems have not been
cleaned and inspected in the time frame required by the
policy. The insurer will: - Answer-Suspend coverage
immediately by red tagging the items until they are
repaired, cleaned and pass reinspection.
HO-2 (broad form) - Answer-(broad form): covers the
dwelling, other structures, and personal property on a
named perils basis
HO-8 covers what? - Answer-HO-8 is Modified Coverage
Form. It covers the least broad perils. This is the MOST
LIMITED HO form. it provides the very basic peril
,3|Page
coverage. Coverage for both buildings and contens are
considered on an ACV basis only.
The insured has filed a claim under the "Business Income
Department Properties - Broad Form" because the primary
buyer of products and services from the business has filed
for bankruptcy under this form the primary buyers
business would be known as - Answer-A recipient location
recipient location - Answer-Businesses who support
insured by being the primary buyer for their products
HO-3 (special form) - Answer-covers the dwelling and
other structures on a risk-of-direct-physical loss basis. All
direct physical losses are covered except those losses
specifically excluded. Personal property is covered on a
named perils basis
HO-5 Comprehensive Form - Answer-provides open perils
coverage ("all-risks coverage") on the dwelling, other
structures and personal property.
, 4|Page
HO-2 (broad form) - Answer-covers the dwelling, other
structures, and personal property on a named perils basis
HO-4 (contents broad form) - Answer-Only covers a
tenant's personal property on a named perils basis
The dwelling is insured for 200,000 under DP-2 dwelling
policy how much coverage applies to the barn? - Answer-
Nothing farm property are not eligible under the dwelling
policy.
A Covered Auto includes those vehicle(s) listed on the
Declarations, plus any trailers or wagons owned by the
Named Insured, any newly acquired vehicles, and any
vehicle used as a _________. - Answer-Temporary
Substitute Auto
The covered auto is defined in the policy as all of the
following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
