Connecticut Casualty Adjusters License Exam Questions and Answers
Riley's coupe is insured with a personal auto policy that includes liability, uninsured
motorists, and other-than-collission coverages. He buys a new sedan and wants collission
coverage on it. Which statement is true about this coverage? - Answer - He must notify the
insurer about the newly acquired sedan within four days.
Because Riley's coupe does not have collission coverage, he must report the newly acquired
sedan to his insurer within four days of its acquisition to get collision coverage for it.
Dairy products in Bette's ice cream shop would be destroyed if her freezers failed for more
than a few hours. So Bette added the utility services-direct damage endorsement,
scheduling overhead transmission lines, to her businessowners policy. When the shop
losses electrical power due to a mechanical breakdown of the utility company's equipment:
- Answer - Bette's loss will not be covered because mechanical breakdown is not a covered
peril
For coverage to apply, the service interruption must result from damage to utility company
property caused by a covered cause of loss. Mechanical breakdown is not a covered peril.
An imposter pretends to be Barbara, the president of a succesful company, while engaging
in scandalous activities. These activities attract media attention and threaten the firm's
reputation. So Barbara spends $5,000 on advertisements to preserve this reputation. How
will Barbara's businessowners policy address this expense? - Answer - it covers this
expense if the identity fraud expense coverage endorsement is attached.
The identity fraud expense coverage endorsement adds a $5,000 limit for advertising
expenses to restore a business reputation.
,Maurice's personal auto policy (PAP) on the family car lists him as the named insured. His
wife, Sondra, is involved in an accident while using the car as a charity organization
volunteer. The injured paties sue Maurice, Sondra, and the charity organization. Which is
insured under the policy's liability coverage? - Answer - Maurice, Sondra, and the Charity
Organization
Sondra is a named insured by virtue of her marriage to Maurice, who is named in the
policy. Charity Orgranization is an insured because it may be held liable for an insured's
use of the named insured's covered auto.
Jeffrey has violated a cease and desist order of the Commissioner. After notice and hearing,
what is the maximum amount he may be fined? - Answer - $50,000 for each violation
An individual who violates a cease and desist order of the Commissioner may be fined up to
$50,000 dollars for each violation or may have his or her license suspended or revoked.
What does an insurance company require from an insured before it will determine whether
the policy covers a loss? - Answer - Proof of Loss Statement
An insured's proof of loss statement is required by an insurance company before it will
determine whether the policy covers the loss.
Which of the following provides an insurance company with a fairly accurate means of
determining the likelihood of a particular event occurring? - Answer - The law of large
numbers
Because it is based on a large number of independent occurences of a simlar nature, the
law of large numbers allows insurers to determine the probability that actual losses will
equal expected losses.
, Claudette's home is flooded. Assuming her homeowners policy would cover at least part of
the damage, she submits a claim. In verifying coverage, Ira-the adjuster assigned to
Claudette's claim- discovers that she did not have flood insurance, and here claim is
therefore not covered. Under the circumstances, Ira should - Answer - explain to Claudette
why her claim is being denied
The adjuster is obligated to explain why a claim is denied.
Adrian leaves his workbench to help a customer. When he returns, he discovers that his
soldering iron has fallen into a wastebasket and started a fire. Adrian rents his shop and
has a businessowners policy with only business personal property and liability coverage.
Why will his BOP cover the landlord's claim for damage to the building? - Answer - The
fire damage was caused by Adrian's negligence
The BOP's property damage liability coverage covers the insured's tort liability for damage
to leased premesis from fire or explosion. This is fire legal liability coverage.
Toni teaches art classes in her home for small groups of neighbors. The classes are
infrequent and are not regularly scheduled. Toni earns a few thousand dollars from these
classes every year. Which is most suitable for Toni's business? - Answer - Permitted
incidental occupancies endorsement
The permitted incidental occupanices endorsement is narrower than the home busienss
insurance coverage endorsement. It covers incidental types of business conducted on the
residence premesis, such as offices, schools, and studios.
An employer that is unable to purchase workers compensation insurance in the state's
voluntary private market may be able to procure it through: - Answer - The state's
residual market facility
Riley's coupe is insured with a personal auto policy that includes liability, uninsured
motorists, and other-than-collission coverages. He buys a new sedan and wants collission
coverage on it. Which statement is true about this coverage? - Answer - He must notify the
insurer about the newly acquired sedan within four days.
Because Riley's coupe does not have collission coverage, he must report the newly acquired
sedan to his insurer within four days of its acquisition to get collision coverage for it.
Dairy products in Bette's ice cream shop would be destroyed if her freezers failed for more
than a few hours. So Bette added the utility services-direct damage endorsement,
scheduling overhead transmission lines, to her businessowners policy. When the shop
losses electrical power due to a mechanical breakdown of the utility company's equipment:
- Answer - Bette's loss will not be covered because mechanical breakdown is not a covered
peril
For coverage to apply, the service interruption must result from damage to utility company
property caused by a covered cause of loss. Mechanical breakdown is not a covered peril.
An imposter pretends to be Barbara, the president of a succesful company, while engaging
in scandalous activities. These activities attract media attention and threaten the firm's
reputation. So Barbara spends $5,000 on advertisements to preserve this reputation. How
will Barbara's businessowners policy address this expense? - Answer - it covers this
expense if the identity fraud expense coverage endorsement is attached.
The identity fraud expense coverage endorsement adds a $5,000 limit for advertising
expenses to restore a business reputation.
,Maurice's personal auto policy (PAP) on the family car lists him as the named insured. His
wife, Sondra, is involved in an accident while using the car as a charity organization
volunteer. The injured paties sue Maurice, Sondra, and the charity organization. Which is
insured under the policy's liability coverage? - Answer - Maurice, Sondra, and the Charity
Organization
Sondra is a named insured by virtue of her marriage to Maurice, who is named in the
policy. Charity Orgranization is an insured because it may be held liable for an insured's
use of the named insured's covered auto.
Jeffrey has violated a cease and desist order of the Commissioner. After notice and hearing,
what is the maximum amount he may be fined? - Answer - $50,000 for each violation
An individual who violates a cease and desist order of the Commissioner may be fined up to
$50,000 dollars for each violation or may have his or her license suspended or revoked.
What does an insurance company require from an insured before it will determine whether
the policy covers a loss? - Answer - Proof of Loss Statement
An insured's proof of loss statement is required by an insurance company before it will
determine whether the policy covers the loss.
Which of the following provides an insurance company with a fairly accurate means of
determining the likelihood of a particular event occurring? - Answer - The law of large
numbers
Because it is based on a large number of independent occurences of a simlar nature, the
law of large numbers allows insurers to determine the probability that actual losses will
equal expected losses.
, Claudette's home is flooded. Assuming her homeowners policy would cover at least part of
the damage, she submits a claim. In verifying coverage, Ira-the adjuster assigned to
Claudette's claim- discovers that she did not have flood insurance, and here claim is
therefore not covered. Under the circumstances, Ira should - Answer - explain to Claudette
why her claim is being denied
The adjuster is obligated to explain why a claim is denied.
Adrian leaves his workbench to help a customer. When he returns, he discovers that his
soldering iron has fallen into a wastebasket and started a fire. Adrian rents his shop and
has a businessowners policy with only business personal property and liability coverage.
Why will his BOP cover the landlord's claim for damage to the building? - Answer - The
fire damage was caused by Adrian's negligence
The BOP's property damage liability coverage covers the insured's tort liability for damage
to leased premesis from fire or explosion. This is fire legal liability coverage.
Toni teaches art classes in her home for small groups of neighbors. The classes are
infrequent and are not regularly scheduled. Toni earns a few thousand dollars from these
classes every year. Which is most suitable for Toni's business? - Answer - Permitted
incidental occupancies endorsement
The permitted incidental occupanices endorsement is narrower than the home busienss
insurance coverage endorsement. It covers incidental types of business conducted on the
residence premesis, such as offices, schools, and studios.
An employer that is unable to purchase workers compensation insurance in the state's
voluntary private market may be able to procure it through: - Answer - The state's
residual market facility
