UPDATED Exam Questions and CORRECT
Answers
$$ Binders are good up to how many days? - CORRECT ANSWER - 90
$$ An adjuster has ____ working days to pay the insured once the settlement offer is accepted??
- CORRECT ANSWER - 15
$$ How many days do you have to investigate a claim? - CORRECT ANSWER - 15
$$ How many days are provided to mail in a proof of loss form? - CORRECT ANSWER - 60
$$ You have ____ days to inspect damaged property. - CORRECT ANSWER -7
$$ What is the maximum prison time penalty for insurance fraud? - CORRECT ANSWER -
Up to 10 years
Embezzlement by an agent can incur a penalty from ____ -- ____ years (if it harms the insurer
badly enough). - CORRECT ANSWER - 10-15 years
$$ The Commissioner has ____ hours to act upon the application for the Emergency Adjuster
License once it's received? - CORRECT ANSWER - 24
$$ Once issued the emergency license is valid for no more than how many days? - CORRECT
ANSWER - 120
$$ What is the Adjuster application fee? - CORRECT ANSWER - $25
,$$ An adjuster must notify the Commissioner within ____ days of a change of address? -
CORRECT ANSWER - 30
$$ If a nonresident adjuster applies within ____ days of establishing legal residency in this state,
he/she becomes a resident adjuster. - CORRECT ANSWER - 90
$$ An adjuster has how many days to report to the Commissioner any administrative action
taken against him/her in another jurisdiction or by another governmental agency? - CORRECT
ANSWER - 30
$$ In circumstances of revocation, suspension, and penalty, when the Commissioner denies an
application, an adjuster has ____ total days to ask for a hearing in order to appeal. - CORRECT
ANSWER - 10
$$ In cases of revocation, suspension and penalty, an adjuster can possibly pay up to what dollar
amount for a fine? And in how many days must the fine be paid before the license is revoked or
suspended? - CORRECT ANSWER - $1,000 -
30 Days
$$ Claims denials are required within how many calendar days from filing? - CORRECT
ANSWER - 15
$$ If an extension is needed to investigate a claim the first party must be notified in writing
within ____ calendar days from the initial notification date and every ____ calendar days
thereafter, but must not go unsettled and unpaid for more than ____ days unless determined by
the Insurance Commissioner.
In the event that the insurer fails to pay the claim in full within 90 calendar days from the
claimant's filing of the proof of loss, except for exemptions provided above, there will be
assessed against the claim and assessed as interest on such at the then current prime rate plus 1%.
Any penalty paid by an insurer pursuant to this section will not be a consideration in any rate
filing made by such insurer. - CORRECT ANSWER - 15 calendar days
30 calendar days
,90 calendar days
If an insurer needs more time to investigate the claim, it must notify the first party claimant in
writing within 15 calendar days from the date of the initial notification and every 30 calendar
days thereafter; but in no instance may a claim remain unsettled and unpaid for more than 90
calendar days from the first party claimant's filing of the proof of loss unless: - CORRECT
ANSWER - 1. a legitimate dispute as to coverage, liability or claims exist or
2. if the claimant has fraudulently caused or contributed to the loss.
$$ Acknowledgment of Notices of claims must be acknowledged within____working days
unless payment is made sooner. - CORRECT ANSWER - 15
$$ The minimum auto liability limits are? - CORRECT ANSWER - 25/50/25
$$ Claims files must be kept for the current year, plus how many years? - CORRECT
ANSWER - 5
$$ All licenses of adjusters expire at midnight on what specific date? - CORRECT
ANSWER - Annually on May 31
$$ Answer of inquiries from the Insurance Department must be answered within ____ working
days of receipt of inquiry. - CORRECT ANSWER - 15
$$ Replies to other pertinent communications must be made within ____ working days to all
pertinent from claimant. - CORRECT ANSWER - 15
$$ Within how many days must every insurer adopt and communicate to all its claims agent
written standards for investigation and processing of claims? - CORRECT ANSWER - 90
Days
, $$ Notice of applicable time limitations must be given how many days to first party claimants
before they expire? And how many days for third party claimants? - CORRECT ANSWER -
30 days, 60 days
$$ Claims arising within ____ days after the determination of insolvency, but such obligation
will include only that amount of each covered claim which is in excess of $___ and no more than
$ ______ . - CORRECT ANSWER - 30 days -
$100 -
$300,000
$$ In Mine Subsidence Insurance loss coverage will be the loss in excess of 2% of the policy's
total insured value, but at no time may the deductible be less than $ _____ or more than $500.
Total insured value that is re-insured by the board may not exceed $75,000. - CORRECT
ANSWER - $250
$$ Mine Subsidence claim:
All claims of insured must be paid within ____ days after proof of loss is presented to an insurer
unless otherwise agreed by the insured and claimant for mine subsidence.
All claims must be paid to the insurer within ____ days after proof of loss is presented to an the
State for mine subsidence. - CORRECT ANSWER - 120 days
90 days
$$ Coverage under the Joint Underwriting Association:
Coverage for any one residential risk will not exceed $ _____ and for any one commercial risk
will not exceed $ ______. - CORRECT ANSWER - $200,000/ $500,000
$$ Standard Fire Policy:
Any loss that occurs while a described building INTENDED for occupancy is vacant or
unoccupied for more than ____ days is NOT covered. - CORRECT ANSWER - 60