CLAIMS ADJUSTER LICENSING EXAM
SCRIPT WITH VERIFIED QUESTIONS AND
ANSWERS
●● Cliff receives a letter from the IRS, informing him that he has
severely underestimated his Adjusted Gross Income for the past year.
Cliff was oblivious to this fact because XYZ Accounting has filed his
taxes for him for the past 15 years. Now, Cliff owes $15,000 in back
taxes. He sues XYZ Accounting for this mistake. Which of the following
would cover the cost of the lawsuit for XYZ Accounting?
Answer: Errors and Omissions Insurance
●● Dr. Jones' current occurrence malpractice policy is in effect from
July 1, 2005 through July 1, 2006. Which lawsuit would trigger this
malpractice insurance policy?
Answer: A man sues Dr. Jones on July 26, 2009 for a damaging knee
surgery performed on March 3, 2006
●● Which of the following would NOT be covered under Employment
Practices Liability Insurance (EPLI) ?
Answer: Civil Fines
●● The "Consent to Settle" clause in the Professional Liability policy is
best described as:
,Answer: A clause that requires the insurance company to get approval
from the insured before settling a claim.
●● Which of the following would be most likely to purchase an Errors
and Omissions policy?
a. actor
b. real estate agent
c. logger
d. professor
Answer: b. real estate agent
●● According to the Employee Retirement Income Security Act
(ERISA), an individual or corporation who exercises discretionary
authority or control over the management of an employee benefit plan is
called:
Answer: a fiduciary
●● A company that wants to insure itself against losses due to data
breach should purchase:
Answer: Cyber and Privacy Insurance
●● Acme University buys liability insurance for each of its board
members, to protect them against lawsuits that might be brought against
, them specifically in their capacity as board members. What kind of
liability insurance is this?
A. Fiduciary
B. Cyber
C. Employment practices
D. Directors and officers (D & O)
Answer: D. Directors and officers (D & O)
●● Ken, an editor for a major newspaper, is fired after arriving to work
late. He files suit against his employer for wrongful termination. Which
type of insurance would Ken's employer need to help cover the costs of
the lawsuit?
Answer: Employment Practices Liability Insurance
●● Which of the following highlights a major difference between an
insurance contract and a surety bond?
Answer: An insurer may cancel an insurance contract; a surety cannot
cancel a surety bond
●● As a requirement for getting his California adjuster license, Danny is
required to submit proof of bonding with his application. He purchases
and surety bond from PBJ Bonds. IN this contract, Danny is considered
the:
SCRIPT WITH VERIFIED QUESTIONS AND
ANSWERS
●● Cliff receives a letter from the IRS, informing him that he has
severely underestimated his Adjusted Gross Income for the past year.
Cliff was oblivious to this fact because XYZ Accounting has filed his
taxes for him for the past 15 years. Now, Cliff owes $15,000 in back
taxes. He sues XYZ Accounting for this mistake. Which of the following
would cover the cost of the lawsuit for XYZ Accounting?
Answer: Errors and Omissions Insurance
●● Dr. Jones' current occurrence malpractice policy is in effect from
July 1, 2005 through July 1, 2006. Which lawsuit would trigger this
malpractice insurance policy?
Answer: A man sues Dr. Jones on July 26, 2009 for a damaging knee
surgery performed on March 3, 2006
●● Which of the following would NOT be covered under Employment
Practices Liability Insurance (EPLI) ?
Answer: Civil Fines
●● The "Consent to Settle" clause in the Professional Liability policy is
best described as:
,Answer: A clause that requires the insurance company to get approval
from the insured before settling a claim.
●● Which of the following would be most likely to purchase an Errors
and Omissions policy?
a. actor
b. real estate agent
c. logger
d. professor
Answer: b. real estate agent
●● According to the Employee Retirement Income Security Act
(ERISA), an individual or corporation who exercises discretionary
authority or control over the management of an employee benefit plan is
called:
Answer: a fiduciary
●● A company that wants to insure itself against losses due to data
breach should purchase:
Answer: Cyber and Privacy Insurance
●● Acme University buys liability insurance for each of its board
members, to protect them against lawsuits that might be brought against
, them specifically in their capacity as board members. What kind of
liability insurance is this?
A. Fiduciary
B. Cyber
C. Employment practices
D. Directors and officers (D & O)
Answer: D. Directors and officers (D & O)
●● Ken, an editor for a major newspaper, is fired after arriving to work
late. He files suit against his employer for wrongful termination. Which
type of insurance would Ken's employer need to help cover the costs of
the lawsuit?
Answer: Employment Practices Liability Insurance
●● Which of the following highlights a major difference between an
insurance contract and a surety bond?
Answer: An insurer may cancel an insurance contract; a surety cannot
cancel a surety bond
●● As a requirement for getting his California adjuster license, Danny is
required to submit proof of bonding with his application. He purchases
and surety bond from PBJ Bonds. IN this contract, Danny is considered
the:
