ADJUSTER EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A building valued at $500,000 is insured at $300,000 on a policy containing an
80% coinsurance clause how much would be paid on a $200,000 loss?
Disregarding deductibles. - ANSWERS-$160,000
QUESTION 2
An insured has coverage on a dwelling with two insurers. Gold and silver. The
policy limit with gold is $100,000 and the limit with silver is $50,000.
Disregarding deductibles how much will each insure pay in the $60,000 loss -
ANSWERS-Gold will pay $40,000 and silver will pay $20,000
QUESTION 3
Insurance policies or concurrent when? - ANSWERS-They contain the same
coverage
QUESTION 4
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, ILLINIOS PUBLIC 2025
ADJUSTER EXAM
An insured may not - ANSWERS-Abandon property to the insurance company
QUESTION 5
When is Abandonment of insured property by the insured is allowed - ANSWERS-
Never
QUESTION 6
A manufacturer with a policy limit of $100,000 and a deductible $1000 had a fire
loss that damaged a lot of inventory. The amount of the damage is estimated to be
$50,000. The insured, with permission of the insurer, was able to sell some other
mildly damage inventory for $9000. How much will the insured pay for this loss? -
ANSWERS-$58,000
QUESTION 7
An Insurer has taking savage after paying $55,000 in a covered fire loss. If the
insurer can sell the savage for $10,000 after incurring a $2000 in advertising
expenses, how will the insured claim appear on the insurance loss history -
ANSWERS-A net claim of $45,000
QUESTION 8
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, ILLINIOS PUBLIC 2025
ADJUSTER EXAM
Which term below is included in a property policy as a method of resolving a
dispute over the amount of loss? - ANSWERS-Appraisal
QUESTION 9
Under the appraisal condition, who decides the amount of loss? - ANSWERS-Any
two of the following; the umpire and appraisals
QUESTION 10
Which of the following happens in a bailment situation - ANSWERS-Transfer of
possession
QUESTION 11
Which of the following is not a bailment situation? - ANSWERS-You borrow your
neighbors lawn more
QUESTION 12
A commercial insured has three buildings insured with a blanket limit of $375,000.
At policy inception, building one had a value of $200,000, building two was
valued at $150,000 in building three had a value of $120,000. What is the most
would be available for any one loss. - ANSWERS-$375,000
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