Louisiana P&C Adjuster Exam Prep: Series 204 | Questions with 100% Correct Answers |
Updated &Verified | 2024-2025 | 100% Score
What are the four requirements of a legally binding contract? - ✔✔Agreement, consideration,
competent parties, legal purpose
Jim applied for a homeowners policy with his agent, who gave him immediate temporary coverage.
However, after checking Jim's background information, his agent discovers that Jim has been convicted
of arson, so she declines his application. Which of the following best describes Jim's failure to mention
his conviction during the application process? - ✔✔Concealment
When an insured signs a document acknowledging that he gives up his right to a certain coverage, such
as uninsured motorist coverage in an auto policy, this is called: - ✔✔an express waiver.
Natalie's brakes have been squealing for several months. Every time she drives her car, she's reminded
that she needs to have them replaced, but she forgets all about it as soon as she gets out of the car.
Natalie's actions can be considered a: - ✔✔physical hazard.
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the policyholder
______. - ✔✔premium payments; peace of mind
Ronald always drives with his windows rolled down because he loves the feeling of the wind in his hair.
However, he often forgets to roll his windows up when he gets out of the car. Of course, this behavior
makes it easier for thieves to steal his belongings from the car, but Ronald can't help being forgetful.
Ronald's behavior would be considered a: - ✔✔morale hazard.
Skip's Convenience Store must agree to install and maintain an emergency shutoff system for its gas
pumps in order to qualify for insurance coverage. Which of the following statements is true? - ✔✔This
requirement is a warranty found in the conditions section of the policy.
Insurance policies are aleatory contracts. This means: - ✔✔they depend on an unknown future event.
, In an insurance policy, where might one find the following statement? "The insured must make
reasonable effort to protect the covered property from further damage." - ✔✔Conditions
How is concealment distinct from misrepresentation? - ✔✔Concealment is deliberately withholding
information, while misrepresentation is stating a falsehood.
Oswald can't afford to take his car to a shop, even though it is falling into disrepair. The windshield has
been cracked for some time, and two of the lights are broken, not to mention the oil leak he noticed last
week. While he is driving on icy roads one day, he loses control and slides into a guardrail, damaging the
front bumper. He is upset by the accident, but then sees an opportunity. He files a claim for the
accident, stating that the windshield, lights, and oil tank were damaged by the collision. Oswald's actions
constitute: - ✔✔soft fraud
If Brigitta applies for insurance, the insurer will probably issue her a temporary policy so she can be
covered while they come to a decision about her application. This is called: - ✔✔a binder
How is actual cash value calculated? - ✔✔Replacement cost minus total depreciation
The law of large numbers states that: - ✔✔insuring a greater number of units increases the accuracy of
the insurer's loss predictions.
Chris and Matt are playing a friendly game of one-on-one basketball in Matt's driveway. When Chris
goes up for a slam dunk, Matt accidentally trips him while attempting to block the shot. Chris lands hard
and tears the ACL in his left knee. Matt's homeowners liability insurance will cover Chris' medical bills
because: - ✔✔Matt's actions were unintentional, but negligent.
All of the following statements are true of liability insurance, EXCEPT: - ✔✔Liability insurance provides
indemnification for the insured.
When Mary leaves her stove on by accident, she starts a fire that destroys her kitchen and leaves smoke
damage throughout her home. While the fire department puts the fire out, the influx of water causes
extensive damage as well. On top of all that, Mary is forced to board her three dogs at a kennel for
several weeks while her house is under repair. The kennel charge would be considered: - ✔✔an indirect
loss.
Updated &Verified | 2024-2025 | 100% Score
What are the four requirements of a legally binding contract? - ✔✔Agreement, consideration,
competent parties, legal purpose
Jim applied for a homeowners policy with his agent, who gave him immediate temporary coverage.
However, after checking Jim's background information, his agent discovers that Jim has been convicted
of arson, so she declines his application. Which of the following best describes Jim's failure to mention
his conviction during the application process? - ✔✔Concealment
When an insured signs a document acknowledging that he gives up his right to a certain coverage, such
as uninsured motorist coverage in an auto policy, this is called: - ✔✔an express waiver.
Natalie's brakes have been squealing for several months. Every time she drives her car, she's reminded
that she needs to have them replaced, but she forgets all about it as soon as she gets out of the car.
Natalie's actions can be considered a: - ✔✔physical hazard.
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the policyholder
______. - ✔✔premium payments; peace of mind
Ronald always drives with his windows rolled down because he loves the feeling of the wind in his hair.
However, he often forgets to roll his windows up when he gets out of the car. Of course, this behavior
makes it easier for thieves to steal his belongings from the car, but Ronald can't help being forgetful.
Ronald's behavior would be considered a: - ✔✔morale hazard.
Skip's Convenience Store must agree to install and maintain an emergency shutoff system for its gas
pumps in order to qualify for insurance coverage. Which of the following statements is true? - ✔✔This
requirement is a warranty found in the conditions section of the policy.
Insurance policies are aleatory contracts. This means: - ✔✔they depend on an unknown future event.
, In an insurance policy, where might one find the following statement? "The insured must make
reasonable effort to protect the covered property from further damage." - ✔✔Conditions
How is concealment distinct from misrepresentation? - ✔✔Concealment is deliberately withholding
information, while misrepresentation is stating a falsehood.
Oswald can't afford to take his car to a shop, even though it is falling into disrepair. The windshield has
been cracked for some time, and two of the lights are broken, not to mention the oil leak he noticed last
week. While he is driving on icy roads one day, he loses control and slides into a guardrail, damaging the
front bumper. He is upset by the accident, but then sees an opportunity. He files a claim for the
accident, stating that the windshield, lights, and oil tank were damaged by the collision. Oswald's actions
constitute: - ✔✔soft fraud
If Brigitta applies for insurance, the insurer will probably issue her a temporary policy so she can be
covered while they come to a decision about her application. This is called: - ✔✔a binder
How is actual cash value calculated? - ✔✔Replacement cost minus total depreciation
The law of large numbers states that: - ✔✔insuring a greater number of units increases the accuracy of
the insurer's loss predictions.
Chris and Matt are playing a friendly game of one-on-one basketball in Matt's driveway. When Chris
goes up for a slam dunk, Matt accidentally trips him while attempting to block the shot. Chris lands hard
and tears the ACL in his left knee. Matt's homeowners liability insurance will cover Chris' medical bills
because: - ✔✔Matt's actions were unintentional, but negligent.
All of the following statements are true of liability insurance, EXCEPT: - ✔✔Liability insurance provides
indemnification for the insured.
When Mary leaves her stove on by accident, she starts a fire that destroys her kitchen and leaves smoke
damage throughout her home. While the fire department puts the fire out, the influx of water causes
extensive damage as well. On top of all that, Mary is forced to board her three dogs at a kennel for
several weeks while her house is under repair. The kennel charge would be considered: - ✔✔an indirect
loss.
