Adjuster Pro Practice Exam Questions And Answers All Verified

Adjuster Pro Practice Exam Questions And Answers All Verified Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection, separate from his home and other property. What term most accurately describes the type of policy Stu would purchase? - ANS Monoline Policy Which of the following statements does NOT apply to the Standard Fire Policy? - ANS It automatically covers wind and vandalism. Which of the following refers to being restored to the financial condition you were in before a loss? - ANS Indemnification The fee paid by the insured in exchange for an insurance policy is called a: - ANS premium Haley takes a bottle of water into a store, pours some of it on the floor when no one is looking, and then pretends to slip and fall. She cries out for help in apparent pain until someone comes to her aid. She then sues the store for her fake injury in an effort to collect an insurance settlement. What has Haley committed? - ANS Hard fraud Which settlement option is most often used when a claimant misses work because of bodily injury, but a settlement has not yet been reached? - ANS Advance payment settlement Cindy and her insurer cannot reach an agreement for her property claim, and have gone back and forth for weeks without coming within $10,000 of each other. At this point, since both believe they are offering a fair settlement, a third party is needed to help facilitate the negotiation. Both parties still want to retain their ability to "walkaway" if they cannot reach an agreement. What is the next best step for Cindy and her insurer? - ANS Mediation When Jeanette shows up to handle a claim on behalf of ABC Insurance, she evaluates the claim and negotiates a settlement. Maintaining her integrity and acting ethically, Jeanette is fulfilling her: - ANS fiduciary duty. Many adjusters prefer arbitration to litigation, because professional arbitrators tend to be more ___________ than civil juries. - ANS knowledgeable Which of the following is NOT true of the no-release settlement? - ANS It's also called an "advance payment settlement." Why should litigation be considered a last resort option? - ANS It can be costly and unpredictable Which of the following steps would occur LAST in the processing of a claim? - ANS Negotiate a settlement with the claimant As an adjuster for KLM Insurance, Chrystal has the important role of fiduciary agent. While acting in this capacity, Chrystal's primary responsibility is to: - ANS protect the financial and property interests of KLM Insurance Bobby is adjusting a complicated auto claim. Which of the following is TRUE? - ANS Because the policyholder (Jane) is 84 years old and seems to have trouble remembering what happened before the accident, Bobby should feel free to contact her 45-year-old caretaker for clarification. Jim is an insurance adjuster working a theft claim. As part of his investigation, Jim might want to do all of the following, EXCEPT: - ANS look for ways to lower the settlement for the claimant. Adjuster Alice is trying to determine the final settlement amount for Ted's claim. Ted's house was damaged in a covered loss, and Alice has estimated that it will cost $25,000 to make the necessary repairs. Ted's homeowners policy has a $100,000 limit and a $2,000 deductible. Typically, how much would Adjuster Alice calculate Ted's final settlement amount to be? - ANS $23,000 As an insurance adjuster, Heather is responsible for updating and maintaining an accurate record of all the information pertinent to an individual's insurance claim, including copies of all written documentation, photos and property sketches, witness statements, and copies of medical bills. What is this record called? - ANS Claim file Bill is going to switch employers, and therefore switch healthcare providers. Which federal law ensures that he won't be denied coverage when he switches health plans? - ANS HIPAA Cindy, a drunk driver, accidentally crashes into Nancy's house, causing $22,000 in damage. On top of that, Nancy tries to get the adjuster to add an additional $20,000 for punitive damages to punish Cindy for driving while intoxicated. However, Nancy fails in her attempts at negotiation. This is because: - ANS the adjuster does not have authority to negotiate for punitive damages.