Insurance Adjuster Exam 2023 - Questions with Correct Answers Latest (Already Graded A+)

Insurance Adjuster Exam 2023 - Questions with Correct Answers Latest (Already Graded A+) Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies the mortgagee the insured has not filed a proof of loss. To protect their interest, the mortgagee must file a proof of loss within _________ days after what date? - 60 days after April 30th For recovery under the Standard Fire policy, a party must: - be named in the policy and show an insurable interest in the property at the time the loss occurs What is the requirement on how much experience one must have to be elected the insurance commissioner in Georgia? - None Once elected, how long is the insurance commissioner's term? - 4 years Is there a limit on the number of terms an insurance commissioner can serve? - No Who is Georgia's current insurance commissioner? - Ralph Hudgens What two capacities does Georgia's insurance commissioner serve? - 1. Chief Officer of Insurance Dept. 2. Chief Fire Marshall What happens if the Insurance Commissioner has to resign early? - No election; the Chief Deputy will take over What is the requirement to serve as Chief Deputy in Georgia? - must have a bond in the amount of $15,000 If you are a domestic insurer in Georgia, how often does code say your financials must be examined? - once every 5 years Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner. Which is it? - Superior Court of Fulton County What certificate is required for a company to be an authorized insurer in Georgia? - Certificate of Authority Surplus Lines Risk - has been rejected by 3 authorized insurers What is the primary reason the state of Georgia would revoke an insurance company's certificate to authorize? - if they're under financial distress What are the requirements to be a licensed producer in Georgia? - must be at least 18 years old, take a 40 hour course, pass licensing exam, apply for license, pass background check Which of the following would be considered an "offer"? - the applicant submits an application to the company with payment All of the following are true about insurable risk except: a) the loss must not be catastrophic in nature b) the loss must be large enough to create hardship c) the loss must not be definite and definable d) the law of large numbers should apply - c) the loss must not be definite and definable all of the following are parts of the insurance contract except: a) declarations b) insuring agreements c) conditions d) inclusions - d) inclusions something that increases the chance of a peril occurring is known as a(n): - hazard open peril, or "all risk", forms: - name the exclusions and limitations When a person decides not to buy insurance because of the cost, what method of handling risk has been undertaken? - risk retention the insurance industry deals with those areas of risk where the chances of loss are: - anywhere between 0% and 100% which of the following is not an element for the formation of a valid contract? a) consideration b) legal purpose c) agreement d) incompetent parties - d) incompetent parties Actual cash value= - replacement cost minus depreciation an insurance policy is an aleatory contract, which means: - performance depends on the occurrence of an uncertain event an insured's right to seek damages from someone at-fault may be may be transferred to the insurer under the policy's: - subrogation clause the Law of Large Numbers states that: - the more examples used to develop a statistic, the more reliable the statistic will be Which of the following about insurance policies are true? - policies are usually personal contracts The concept of restoring the insured to approximately the same economic position occupied before the loss is called: - indemnity which of the following is used to modify an insurance policy from its original form? - Endorsements an insurer formed under the law of a state of the United States other than the state where it is licensed, domiciled and chartered is: - a Foreign insurer careless driving because the driver knows he or she is insured is a: - Morale hazard oily rags left to accumulate in the garage is a: - physical hazard insurance policies are contracts of adhesion, which means: - terms of the contract are drawn up by the insurer and the insured simply adheres to the terms It is assumed that any oral agreements made before contract formation were incorporated into the written contract. Once formed, earlier oral evidence will not be admitted in court to change or contradict the contract. This is known as: - Parol Evidence Rule The two major types of insurers in the private sector are: - Stock and Mutual companies temporary contract of insurance that commits the insurer before before a policy is issued is called a: - binder a term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as: - estoppel property and liability insurers use different marketing methods. Which of the following are features of the independent agency system? - Agents can represent one or more insurers AND Agent owns renewal rights to policies Concealment is failure of the insurance applicant to reveal a material fact to the insurer. Which of the following statements must be proved before the insurer can deny a claim on the basis of concealment? - a concealed fact was known to be material by the insured AND the insured intended to defraud the insurer who is considered the first party to an insurance contract? - the Insured the insuring agreement summarizes the insurers obligations and conditions for loss payment. Which of the following is/are types of insuring agreements? - open peril policy when a person installs burglar bars and a fire alarm system, what method of managing risks has been undertaken? - Reduction All of the following could be covered under a named insured's personal auto policy, except: - A private passenger vehicle owned by the named insured's spouse who moved to a separate residence 5 months ago (b/c policy only covers up to 90 days; she's been gone 5 months) The physical damage section of the personal auto policy excludes losses arising from: a) flood b) earthquake c) animals d) mechanical breakdowns - d) mechanical breakdowns Which of the following causes of loss is covered by Other-Than-Collision Coverage written under a Personal Auto Policy? a) freezing b) electrical breakdown c) vandalism damage to tires d) upset - vandalism damage to tires