Adjuster Pro Practice Exam CORRECTAdjuster Pro Practice Exam CORRECT

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? -ANSWER Monoline Policy of the following statements does NOT apply to the Standard Fire Policy? - Which ANSWER It automatically covers wind and vandalism. Which of the following refers to being restored to the financial condition you were in before a loss? -ANSWER Indemnification The fee paid by the insured in exchange for an insurance policy is called a: -ANSWER 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? -ANSWER 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? -ANSWER 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? -ANSWER 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: -ANSWER fiduciary duty. Many adjusters prefer arbitration to litigation, because professional arbitrators tend to be more ___________ than civil juries. -ANSWER knowledgeable Which of the following is NOT true of the no-release settlement? -ANSWER It's also called an "advance payment settlement." Why should litigation be considered a last resort option? -ANSWER It can be costly and unpredict