Adjuster Pro Exam 3
Adjuster Pro Exam 3
Study online at https://quizlet.com/_euvkx8
1. An insurer that obeys the laws an alien insurer.
of a country other than the U.S.
is called:
2. The transfer of risk from one Insurance
party to another is called
3. Kerry accidentally set his In order to be fully insured, Kerry should have a limit of
kitchen on fire while frying a at least $140,000 (since 175,000 x 0.8 = $140,000). To cal-
turkey for the holidays. The culate his coinsurance penalty, take the coverage that Kerry
fire results in $32,000 in dam- has (120,000) and divide it by the coverage he should have
age to his home, which is val- ($140,000), and the answer is 0.857. This means that the
ued at $175,000. However, Ker- insurer will pay 85.7% of partial losses. Multiply Kerry's partial
ry only has a $120,000 home- losses by .857 to calculate how much the insurer will cover
owners policy limit. Assuming ($32,000 x 0.857 = $27,424). Kerry will be responsible for
Kerry's policy has the 80% coin- the rest, so we subtract the insurer's portion from the total
surance requirement, approxi- damages ($32,000 - $27,424) and the answer is $4,576.
mately how much of the dam-
age will Kerry be responsible
for paying? (Round all num-
bers to three decimal places.)
4. _______ authority is granted Apparent
when an agent takes authori-
ty that is not given in his con-
tract, but the insurer ignores
the mistake and does not cor-
rect the agent.
5. When a claimant submits a Having a court of law dictate the proper settlement
claim to an insurer, the insur-
er has several options for re-
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, Adjuster Pro Exam 3
Adjuster Pro Exam 3
Study online at https://quizlet.com/_euvkx8
sponding. Which option does
the insurer want to avoid?
6. An independent adjuster: is self-employed and may be contracted by one or more com-
panies at a time.
7. The homeowners policy on The Mortgage clause of an insurance policy protects a mort-
Daryl's $110,000 home is void- gage lender's interest in the insured property. This clause
ed when he intentionally burns makes it possible for Daryl's mortgage lender to be indem-
the house to the ground. Con- nified for the remainder of its interest in the home ($76,000),
sequently, he does not receive even though Daryl's actions have voided the policy.
the settlement check he was
hoping to get when he com-
mitted the arson, but he still
has an outstanding mortgage
balance of $76,000. How does
this event affect the mortgage
lender?
8. Where in the Standard Fire Pol- Declarations
icy might one find the phrase,
"Policy Period: Effective Nov 01
2015 to Nov 30 2016"?
9. In an insurance contract, exclu- add coverages that need special treatment.
sions can be used for all of the
following reasons, EXCEPT:
10. Which of the following state- The policy's liability coverage would apply to an owned water-
ments about the coverage craft with a 50 hp outboard motor.
for watercraft in the standard
homeowners policy is FALSE?
Wind and hail damage is ex-
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2 of 8
Adjuster Pro Exam 3
Study online at https://quizlet.com/_euvkx8
1. An insurer that obeys the laws an alien insurer.
of a country other than the U.S.
is called:
2. The transfer of risk from one Insurance
party to another is called
3. Kerry accidentally set his In order to be fully insured, Kerry should have a limit of
kitchen on fire while frying a at least $140,000 (since 175,000 x 0.8 = $140,000). To cal-
turkey for the holidays. The culate his coinsurance penalty, take the coverage that Kerry
fire results in $32,000 in dam- has (120,000) and divide it by the coverage he should have
age to his home, which is val- ($140,000), and the answer is 0.857. This means that the
ued at $175,000. However, Ker- insurer will pay 85.7% of partial losses. Multiply Kerry's partial
ry only has a $120,000 home- losses by .857 to calculate how much the insurer will cover
owners policy limit. Assuming ($32,000 x 0.857 = $27,424). Kerry will be responsible for
Kerry's policy has the 80% coin- the rest, so we subtract the insurer's portion from the total
surance requirement, approxi- damages ($32,000 - $27,424) and the answer is $4,576.
mately how much of the dam-
age will Kerry be responsible
for paying? (Round all num-
bers to three decimal places.)
4. _______ authority is granted Apparent
when an agent takes authori-
ty that is not given in his con-
tract, but the insurer ignores
the mistake and does not cor-
rect the agent.
5. When a claimant submits a Having a court of law dictate the proper settlement
claim to an insurer, the insur-
er has several options for re-
1/8
1 of 8
, Adjuster Pro Exam 3
Adjuster Pro Exam 3
Study online at https://quizlet.com/_euvkx8
sponding. Which option does
the insurer want to avoid?
6. An independent adjuster: is self-employed and may be contracted by one or more com-
panies at a time.
7. The homeowners policy on The Mortgage clause of an insurance policy protects a mort-
Daryl's $110,000 home is void- gage lender's interest in the insured property. This clause
ed when he intentionally burns makes it possible for Daryl's mortgage lender to be indem-
the house to the ground. Con- nified for the remainder of its interest in the home ($76,000),
sequently, he does not receive even though Daryl's actions have voided the policy.
the settlement check he was
hoping to get when he com-
mitted the arson, but he still
has an outstanding mortgage
balance of $76,000. How does
this event affect the mortgage
lender?
8. Where in the Standard Fire Pol- Declarations
icy might one find the phrase,
"Policy Period: Effective Nov 01
2015 to Nov 30 2016"?
9. In an insurance contract, exclu- add coverages that need special treatment.
sions can be used for all of the
following reasons, EXCEPT:
10. Which of the following state- The policy's liability coverage would apply to an owned water-
ments about the coverage craft with a 50 hp outboard motor.
for watercraft in the standard
homeowners policy is FALSE?
Wind and hail damage is ex-
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