Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+

Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+Define: Claimant - CORRECT ANSWERS A person or entity that requests indemnification for losses under the terms of an insurance policy Define: Adjuster - CORRECT ANSWERS Person who investigates, evaluates, and negotiates claims arising under insurance contracts Define: Adjusting - CORRECT ANSWERS The process of comparing a claimant's losses to the promises made in an insurance policy Define: Staff adjuster - CORRECT ANSWERS Salaried employee of an adjuster Define: Independent adjuster - CORRECT ANSWERS Self-employed, contracts with insurers or bureaus, paid by schedule, or time + expense Define: Public adjuster - CORRECT ANSWERS Hired by the insured, usually paid commission Define: Emergency adjuster - CORRECT ANSWERS Temporarily licensed to service the many claims arising from catastrophes After Jerry pulled the fire alarm, the indoor sprinkler system came on and flooded the offices at Elliot Designs, causing thousands of dollars in damage. Elliot Designs filed a claim with KLM Insurance, who dispatched Chrystal to investigate and process the claim. Who is the claimant in this scenario? A. KLM Insurance B. Jerry C. Chrystal D. Elliot Designs - CORRECT ANSWERS D. Elliot Designs After a storm demolished Greg's house, his insurance company sent an adjuster out to adjust his claim. After investigating Greg's claim, the adjuster offered him a settlement which Greg felt was too low. Not knowing much about property insurance, Greg wans a second opinion to make Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ sure he is receiving what he deserves. Who might Greg hire to help him with negotiating a fair settlement? A. An independent adjuster B. An insurance adjuster C. A staff adjuster D. A public adjuster - CORRECT ANSWERS D. A public adjuster A severe storm rages through Oklahoma City, with tornados causing multiple square miles worth of damage. All the licensed adjusters in the area are already occupied or deployed to the scene. Who can the insurance commissioner look to for temporary help resolving the rest of the claims from this storm? A. Staff adjusters B. Emergency adjusters C. Independent adjusters D. Public adjusters - CORRECT ANSWERS B. Emergency adjusters What is the title of the insurance professional who processes claims for compensation? A. Insurance adjuster B. Insurance salesman C. Insurance broker D. Insurance agent - CORRECT ANSWERS A. Insurance adjuster Jane is a salaried employee of XYZ Insurance. Working out of a regional office, Jane is sent to deal with some of the most difficult claims in her area. What kind of adjuster is Jane? A. Emergency adjuster B. Public adjuster C. Staff adjuster Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Independent adjuster - CORRECT ANSWERS C. Staff adjuster What kind of adjuster represents the insured rather than the insurer? A. Public adjuster B. Emergency adjuster C. Independent adjuster D. Staff adjuster - CORRECT ANSWERS A. Public adjuster What do you call a self-employed adjuster who works as a contractor for insurers or claimshandling companies? A. Public adjuster B. Emergency adjuster C. Independent adjuster D. Staff adjuster - CORRECT ANSWERS C. Independent adjuster Define: Fiduciary agent - CORRECT ANSWERS The adjuster acts on behalf of principal and must protect the principal's interests Define: The power to bind - CORRECT ANSWERS The principal may have to honor the adjuster's decisions, even when made in error Define: Report to the principal - CORRECT ANSWERS The adjuster must give the principal detailed information on how each claim is going What are the 3 types of adjuster reports? - CORRECT ANSWERS Preliminary Interim Final Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ What is included in a preliminary report? - CORRECT ANSWERS Initial investigation results, timeline of claim, initial claim reserve What is included in a final report? - CORRECT ANSWERS Full details of claim investigation, evidence, loss totals, and final claim resolution What is included in an interim report? - CORRECT ANSWERS Update on progress of claim due at set intervals An adjuster who acts as a fiduciary agent for an insurer must: A. Represent the policyholder in her interactions with the insurer B. Be a salaried employee of that insurer C. Have authority granted by the insurer through a contract D. Deal with the insurer's lawyer instead of directly with the insurer - CORRECT ANSWERS C. Have authority granted by the insurer through a contract In which report to the principal would an adjuster include all witness statements and other supporting evidence, in addition to the total settlement amount? A. Final report B. Preliminary report C. Settlement report D. Interim report - CORRECT ANSWERS A. Final report An adjuster who has just taken witness statements for a claim she is currently investigating, but is not yet ready to close the claim, may submit to the insurer a / an: A. Preliminary report B. Witness deposition report C. Interim report Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Full report - CORRECT ANSWERS C. Interim report An adjuster acts as an agent for the insurer. As such, it is essential that the adjuster understand: A. Her duty to check in daily with the insurance company B. That her words or actions may bind the insurance company C. Her duty to profit from every claim investigation D. That she must always offer a settlement favorable to the claimant - CORRECT ANSWERS B. That her words or actions may bind the insurance company Which of the following does not apply to the adjuster's responsibility of reporting to the principal? A. The reports should include any pertinent information about investigations the adjuster has performed B. The reports should be frequent and detailed C. The reports should include advice on how to get out of paying covered claims D. The reports should include information that would benefit the principal - CORRECT ANSWERS C. The reports should include advice on how to get out of paying covered claims Julie works as an insurance adjuster for XYZ Insurance. While adjusting a claim, she determines that the claimant is covered by his insurance contract and issues him a settlement check for $5,000. The insured cashes the check and performs the repairs. Two months later, the insurer reviews the file and realizes that the claimant's damages were NOT covered by the policy. The insurer demands the settlement money back. Which of the following best explains why the claimant will most likely not have to return the money? A. Subrogation does not allow the insurer to recover payment B. The settlement payment was a warranty C. Julie had the power to bind the insurer to her decision to pay the claim D. Julie issued the settlement based on guarantees provided by the claimant - CORRECT ANSWERS C. Julie had the power to bind the insurer to her decision to pay the claim