NH ADJUSTER FOR PROPERTY &
CASUALTY QUESTIONS &
ANSWERS CORRECT 100%
Joe's 21-pound cat runs into the neighbor's yard and severely scratches the
neighbor's arms and face. Which of the following would respond to the neighbor's
emergency room bills? - ANSWERJoe's homeowners policy under the Personal
Liability section
Bob is purchasing a commercial property policy to cover contents of a building
valued at $100,000. The policy includes an 80 percent coinsurance clause. To avoid
a coinsurance penalty in the event of a partial loss, Bob should purchase a policy
with minimum limits of at least$80,000 - ANSWER$80,000 :: The value of the
covered property is ($100,000) times 80% = $80,000.
Which of the following best describes the purpose of the "insuring agreement"
contained in an insurance policy? - ANSWERTo the insurer's promise to pay in case
of a loss. :: The insuring agreement section of the policy contains the insurer's
promise to pay. This is the section where the "contractual agreement" is located.
An insured building suffers a total loss as a result of fire or lightning without criminal
fault of the insured. The insurance company is required to pay: - ANSWERThe
building limit insured by the policy :: The insurer is required to pay the total limit of
the policy on the building.
Any misinformation provided by an applicant which is such that the insurance
company would not have issued a policy if the true facts were known is: -
ANSWERMaterial Misrepresentation ::
This statement defines material misrepresentation, which is deliberately withholding
an important fact that would have a bearing on the acceptability and/or pricing of the
risk.
The insured has a communication failure at his premises due to a lightning strike at
the phone company. The insured's phone system is damaged and he is out of
business for four days. Which endorsement is necessary to provide coverage for the
loss of business income - ANSWERUtility Services - Time Element :: Utility Services
- Time Element endorsement would cover the loss of business income in this
example if the phone system was listed on the endorsement and the cause of the
loss was covered by the policy.
Which of the following coverages would apply to a rental car used by an insured
executive while on vacation? - ANSWERCoverage for Non-Owned Autos :: whether
it be a rental car or a vehicle belonging to a friend
, Jim drives Linda's car. Both Jim and Linda have a personal auto policy. Which of the
following statements is CORRECT concerning coverage if Jim causes an accident? -
ANSWERThe policy Linda owns is primary and the policy Jim owns is excess. ::
Insurance follows the car. Therefore, Linda's policy would pay first and Jim's policy
would be excess.
An interline endorsement used in a Commercial Package Policy (CPP):
I. May be mandatory or optional.
II. Is an endorsement that applies to more than one line of insurance. -
ANSWERBoth I and II ::
Interline endorsements are used in the CPP to simplify coverages and conditions
among many different forms. Many of the same policy conditions apply to the various
coverage parts.
Under the definitions section of the CGL policy, the term "your product" does not
include: - ANSWERVending machines rented to or located for use by others.. :: A
vending machine rented for use by others is not considered to be "your product."
Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya
accidentally leaves the oven on all day while she is out, her Lasagna catches fire,
burning Jack's house to the ground, along with all the contents located inside. Which
of the following items would be covered under Coverage C of Jack's DP-3 policy? -
ANSWERJack's appliances :: Coverage C is for personal property (contents). Since
this is Jack's policy, it will cover his appliances but nothing belonging to Tanya (her
renters insurance would cover it). The damage to the structure would be covered
under Coverage A of Jack's policy.
You have a 15 x 28 room with a 10 ft. ceiling. It costs $.50 per square foot to clean
and prep the room and another $.50 per square foot for painting the room. How
much will it cost to prep and paint the room and ceiling? - ANSWERThe room is 15 X
28 with a ceiling height of 10 feet. The ceiling area is 420 sq. feet The wall area is (2
walls @ 30 feet) and (two walls @ 56 feet). This is a total of 86 feet times the height
of the ceiling which is 10 feet = 860 square feet plus the ceiling of 420 equals a total
of 1280 square feet. $1.00 times 1280 square feet equals $1,280.
Which of the following is NOT a claim settlement option in a property loss? -
ANSWERThe correct answer is: Pay market value only.. ::
Offering market value only is not a claim settlement option. If the insured carries
replacement cost coverage then the adjuster needs to address the payment of the
claim accordingly.
If an insured takes precautionary measures to protect property from flood damage
such as creating a retaining wall of sand bags, how much coverage if any, will be
provided by a flood policy? - ANSWER$1,000 if the flood is imminent and the
property is in danger of flooding.:: The policy will provide additional coverage up to
$1,000 for preventative measures taken to prevent the property from an imminent
flood loss. This $1,000 however will be subtracted from the policy limit covering any
property that may be damaged by the imminent flood.
CASUALTY QUESTIONS &
ANSWERS CORRECT 100%
Joe's 21-pound cat runs into the neighbor's yard and severely scratches the
neighbor's arms and face. Which of the following would respond to the neighbor's
emergency room bills? - ANSWERJoe's homeowners policy under the Personal
Liability section
Bob is purchasing a commercial property policy to cover contents of a building
valued at $100,000. The policy includes an 80 percent coinsurance clause. To avoid
a coinsurance penalty in the event of a partial loss, Bob should purchase a policy
with minimum limits of at least$80,000 - ANSWER$80,000 :: The value of the
covered property is ($100,000) times 80% = $80,000.
Which of the following best describes the purpose of the "insuring agreement"
contained in an insurance policy? - ANSWERTo the insurer's promise to pay in case
of a loss. :: The insuring agreement section of the policy contains the insurer's
promise to pay. This is the section where the "contractual agreement" is located.
An insured building suffers a total loss as a result of fire or lightning without criminal
fault of the insured. The insurance company is required to pay: - ANSWERThe
building limit insured by the policy :: The insurer is required to pay the total limit of
the policy on the building.
Any misinformation provided by an applicant which is such that the insurance
company would not have issued a policy if the true facts were known is: -
ANSWERMaterial Misrepresentation ::
This statement defines material misrepresentation, which is deliberately withholding
an important fact that would have a bearing on the acceptability and/or pricing of the
risk.
The insured has a communication failure at his premises due to a lightning strike at
the phone company. The insured's phone system is damaged and he is out of
business for four days. Which endorsement is necessary to provide coverage for the
loss of business income - ANSWERUtility Services - Time Element :: Utility Services
- Time Element endorsement would cover the loss of business income in this
example if the phone system was listed on the endorsement and the cause of the
loss was covered by the policy.
Which of the following coverages would apply to a rental car used by an insured
executive while on vacation? - ANSWERCoverage for Non-Owned Autos :: whether
it be a rental car or a vehicle belonging to a friend
, Jim drives Linda's car. Both Jim and Linda have a personal auto policy. Which of the
following statements is CORRECT concerning coverage if Jim causes an accident? -
ANSWERThe policy Linda owns is primary and the policy Jim owns is excess. ::
Insurance follows the car. Therefore, Linda's policy would pay first and Jim's policy
would be excess.
An interline endorsement used in a Commercial Package Policy (CPP):
I. May be mandatory or optional.
II. Is an endorsement that applies to more than one line of insurance. -
ANSWERBoth I and II ::
Interline endorsements are used in the CPP to simplify coverages and conditions
among many different forms. Many of the same policy conditions apply to the various
coverage parts.
Under the definitions section of the CGL policy, the term "your product" does not
include: - ANSWERVending machines rented to or located for use by others.. :: A
vending machine rented for use by others is not considered to be "your product."
Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya
accidentally leaves the oven on all day while she is out, her Lasagna catches fire,
burning Jack's house to the ground, along with all the contents located inside. Which
of the following items would be covered under Coverage C of Jack's DP-3 policy? -
ANSWERJack's appliances :: Coverage C is for personal property (contents). Since
this is Jack's policy, it will cover his appliances but nothing belonging to Tanya (her
renters insurance would cover it). The damage to the structure would be covered
under Coverage A of Jack's policy.
You have a 15 x 28 room with a 10 ft. ceiling. It costs $.50 per square foot to clean
and prep the room and another $.50 per square foot for painting the room. How
much will it cost to prep and paint the room and ceiling? - ANSWERThe room is 15 X
28 with a ceiling height of 10 feet. The ceiling area is 420 sq. feet The wall area is (2
walls @ 30 feet) and (two walls @ 56 feet). This is a total of 86 feet times the height
of the ceiling which is 10 feet = 860 square feet plus the ceiling of 420 equals a total
of 1280 square feet. $1.00 times 1280 square feet equals $1,280.
Which of the following is NOT a claim settlement option in a property loss? -
ANSWERThe correct answer is: Pay market value only.. ::
Offering market value only is not a claim settlement option. If the insured carries
replacement cost coverage then the adjuster needs to address the payment of the
claim accordingly.
If an insured takes precautionary measures to protect property from flood damage
such as creating a retaining wall of sand bags, how much coverage if any, will be
provided by a flood policy? - ANSWER$1,000 if the flood is imminent and the
property is in danger of flooding.:: The policy will provide additional coverage up to
$1,000 for preventative measures taken to prevent the property from an imminent
flood loss. This $1,000 however will be subtracted from the policy limit covering any
property that may be damaged by the imminent flood.
