6-20 CLAIMS ADJUSTER COMPLETE
PRACTICE QUESTIONS AND
ANSWERS
The following are basic characteristics of a property or liability
insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion - CORRECT ANSWER-C. Loss
Settlement Contract
The Insurers responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to
avoid the loss, to protect the property against further loss, and
to give the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - CORRECT ANSWER-A. Conditional
Contract
,A(n) __________ is one wherein economic loss would be
suffered from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - CORRECT ANSWER-D. Insurable
Interest
The __________ states that when there is an unbroken
connection between an occurrence and damage that grows out
of the occurrence, then the resultant damage is all a part of the
occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance - CORRECT ANSWER-A.
Doctrine of Proximate Cause
Frank owned a home that was destroyed by a hurricane. Both
ABC and XYZ Banks were listed as additional interests on his
homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - CORRECT ANSWER-D. All listed
interests
The Loss Settlement Valuation that subtracts an allowance for
depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old For New"
,D. None of the Above - CORRECT ANSWER-A. Actual Cash
Value
Insurance applies separately to each insured as if other
insureds did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the Above - CORRECT ANSWER-A. Severability
States that if the insurer adopts a revision which would broaden
coverage without additional premium within some period of time
prior to the policy period or during the policy period, the insured
receives the benefit of such broadened coverage. (Usually 60
days)
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - CORRECT ANSWER-D. Liberalization
Property insurance policies usually contain a(n) __________
clause, stating the insured cannot dump damaged property on
the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above - CORRECT ANSWER-B. Abandonment
A policy condition, either based on information in the insured's
application or inserted by the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
, D. None of the Above - CORRECT ANSWER-A. Warranty
If financial responsibility doesn't exist at the time of an accident,
which of the following things must happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to
10/20/10)
B. The owner and operator must provide certification of future
responsibility for future accidents
C. Both A&B
D. None of the Above - CORRECT ANSWER-C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group
for 3 years. 30 days before his renewal date he receives notice
of the company's intention to non-renew because of 3 negligent
losses and 1 speeding ticket in the past 3 years. His driving
record and claim history make this a valid non-renewal.
A. True
B. False - CORRECT ANSWER-B. False
Personal Injury Protection, or PIP, has a __________ per
person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property - CORRECT ANSWER-
A. 10,000
While driving his own car, Bill is involved in an accident that is
the fault of the other driver, Mike. He looks to collect for his
injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
PRACTICE QUESTIONS AND
ANSWERS
The following are basic characteristics of a property or liability
insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion - CORRECT ANSWER-C. Loss
Settlement Contract
The Insurers responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to
avoid the loss, to protect the property against further loss, and
to give the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - CORRECT ANSWER-A. Conditional
Contract
,A(n) __________ is one wherein economic loss would be
suffered from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - CORRECT ANSWER-D. Insurable
Interest
The __________ states that when there is an unbroken
connection between an occurrence and damage that grows out
of the occurrence, then the resultant damage is all a part of the
occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance - CORRECT ANSWER-A.
Doctrine of Proximate Cause
Frank owned a home that was destroyed by a hurricane. Both
ABC and XYZ Banks were listed as additional interests on his
homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - CORRECT ANSWER-D. All listed
interests
The Loss Settlement Valuation that subtracts an allowance for
depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old For New"
,D. None of the Above - CORRECT ANSWER-A. Actual Cash
Value
Insurance applies separately to each insured as if other
insureds did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the Above - CORRECT ANSWER-A. Severability
States that if the insurer adopts a revision which would broaden
coverage without additional premium within some period of time
prior to the policy period or during the policy period, the insured
receives the benefit of such broadened coverage. (Usually 60
days)
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - CORRECT ANSWER-D. Liberalization
Property insurance policies usually contain a(n) __________
clause, stating the insured cannot dump damaged property on
the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above - CORRECT ANSWER-B. Abandonment
A policy condition, either based on information in the insured's
application or inserted by the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
, D. None of the Above - CORRECT ANSWER-A. Warranty
If financial responsibility doesn't exist at the time of an accident,
which of the following things must happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to
10/20/10)
B. The owner and operator must provide certification of future
responsibility for future accidents
C. Both A&B
D. None of the Above - CORRECT ANSWER-C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group
for 3 years. 30 days before his renewal date he receives notice
of the company's intention to non-renew because of 3 negligent
losses and 1 speeding ticket in the past 3 years. His driving
record and claim history make this a valid non-renewal.
A. True
B. False - CORRECT ANSWER-B. False
Personal Injury Protection, or PIP, has a __________ per
person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property - CORRECT ANSWER-
A. 10,000
While driving his own car, Bill is involved in an accident that is
the fault of the other driver, Mike. He looks to collect for his
injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
