California adjusters Exam Questions and Answers Grade
A+
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called - Answer-Insurance
Premium, payments - Answer-In an insurance contract rhe policyholder gives the
insurer— and the insurer gives the policyholder —-
Insurance - Answer-The transfer if risk from one party to another
An insured from making a profit - Answer-The principle of indemnity is designed.
To prevent
An individual or organization that pays premiums in exchange for financial
protection - Answer-Which if the following best defines insured
Agreement consideration competent parties legal purpose - Answer-What are the
four requirements of a legally binding contract
The principle of indemnity - Answer-Melinda s home sustained $6500 in damages
when Jared ran into it with his truck Melinda received $6500 from her insurance
company and Jared also paid her. $5000 Melinda has now profited from this loss
and is in violation of
Premiums from the insured and the promise to pay from the insurer - Answer-In
an insurance contract consideration from both parties is compromised of
The principle of indemnity - Answer-Sandra rear ended Randy's car when he
stopped quickly for a yellow light that she was sure they were going to make. the
damage was minor but Sandra was worried her premiums would increase if the
accident was reported so she gave Tandy $500 in an effort to keep it just between
them. However. Randy filed the claim with his insurance company and received a
settlement. Check for $750. What was Randy violated?
The insurer will only pay up to the amount already collected in premiums for each
insured - Answer-Who bid the following statements about insurance is false?
,If the policy limit is greater than the value of the insured item the claimant may
profit from a total loss - Answer-Which of the following statements about
insurance is false?
Offeree must have no more than one stipulation - Answer-Which if the following
isNOT one of the criteria that makes acceptance if an offer to a contract legally
enforceable?
Insuring Agreement - Answer-We will provide the insurance described in this
policy in return for the premiums and compliance with all applicable provisions if
this policy. In which section if the insurance policy would his statement be found?
Nuclear Hazard - Answer-Which of these causes of loss is least likely to be covered
by a typical insurance policy?
Conditions - Answer-Edna loses some of her property ina hailstorm. when the
adjuster comes to investigate the loss he gives an estimate that Edna thinks is far
too low. as negotiations continue neither Edna nor the adjuster will budge. Where
in Edna's policy would you find the procedure. To follow in this situation?
Stephen's insurance company denied his recent claim citing that his particular
cause of loss was not covered. However according to Stephen 's interpretation Of
the policy language his loss could be covered so he disputes the decision
When his case went to trial the jury also decided the policy was open to
interpretation so the decided in favor of Stephen this is because - Answer-
They depend on an unknown future event - Answer-Insurance policies are
aleatory contracts. This means
Alien insurer - Answer-An insurer that obeys the laws of a country other than the
US is called
Stock company - Answer-What type of insurer sells shares to the public and is
owned by its shareholders?
captive insurer - Answer-Any town pediatric has been having a a hard time finding
medial practice insurance. The premiums are extremely high. And they get higher
, every year. Finally fed up with the costs of insurance the directors decide to form
their own insurance company which will only serve Anytown Pediatric
What kind of insurance. Would his be ?
Non-admitted Insurer - Answer-Bob is looking for an insurance policy but he can't
find the right kind of insurance coverage on his home state of Oregon but he may
be able to purchase surplus lines insurance from:
hazard - Answer-Monica home is located in a flood zone . In insurance terms the
location of Monica's home is considered?
peri- - Answer-Nina 's home is located in a high crime area . One day she comes
home from work to find that her garage door has been spray painted with graffiti.
Nina's insurer would consider the act of vandalism a
During a fire the fire department hoses down a house to extinguish the flames.
The water damages that results is an indirect loss - Answer-Which of the following
is NOT an example an indirect loss?
- Answer-During a heavy thunderstorm the lightning strikes a tree outside Carl,s
house which splinters and falls onto Carl's roof. The room under the roof floods
with water damaging. Carl's expensive flooring Carl's roof damage would be
considered ?
Actual economic interest is defined as - Answer-Insurable interest is defined as
His favorite restaurant - Answer-Insurance interest allows rick to take out an
insurance policy in all but the following
Jim has already received indemnity from his insurer - Answer-When Shawn
purposefully caused fire damage to Jim's restaurant Jim's insurer paid the claim
and then sued Shawn for the damages but Jim is still pretty mad about the food
hole deal and wants to sue him as well. Why is it not possible for him to sue
Shawn?
Replacement cost minus total depreciation - Answer-How is actual cash value
calculated ?
A+
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called - Answer-Insurance
Premium, payments - Answer-In an insurance contract rhe policyholder gives the
insurer— and the insurer gives the policyholder —-
Insurance - Answer-The transfer if risk from one party to another
An insured from making a profit - Answer-The principle of indemnity is designed.
To prevent
An individual or organization that pays premiums in exchange for financial
protection - Answer-Which if the following best defines insured
Agreement consideration competent parties legal purpose - Answer-What are the
four requirements of a legally binding contract
The principle of indemnity - Answer-Melinda s home sustained $6500 in damages
when Jared ran into it with his truck Melinda received $6500 from her insurance
company and Jared also paid her. $5000 Melinda has now profited from this loss
and is in violation of
Premiums from the insured and the promise to pay from the insurer - Answer-In
an insurance contract consideration from both parties is compromised of
The principle of indemnity - Answer-Sandra rear ended Randy's car when he
stopped quickly for a yellow light that she was sure they were going to make. the
damage was minor but Sandra was worried her premiums would increase if the
accident was reported so she gave Tandy $500 in an effort to keep it just between
them. However. Randy filed the claim with his insurance company and received a
settlement. Check for $750. What was Randy violated?
The insurer will only pay up to the amount already collected in premiums for each
insured - Answer-Who bid the following statements about insurance is false?
,If the policy limit is greater than the value of the insured item the claimant may
profit from a total loss - Answer-Which of the following statements about
insurance is false?
Offeree must have no more than one stipulation - Answer-Which if the following
isNOT one of the criteria that makes acceptance if an offer to a contract legally
enforceable?
Insuring Agreement - Answer-We will provide the insurance described in this
policy in return for the premiums and compliance with all applicable provisions if
this policy. In which section if the insurance policy would his statement be found?
Nuclear Hazard - Answer-Which of these causes of loss is least likely to be covered
by a typical insurance policy?
Conditions - Answer-Edna loses some of her property ina hailstorm. when the
adjuster comes to investigate the loss he gives an estimate that Edna thinks is far
too low. as negotiations continue neither Edna nor the adjuster will budge. Where
in Edna's policy would you find the procedure. To follow in this situation?
Stephen's insurance company denied his recent claim citing that his particular
cause of loss was not covered. However according to Stephen 's interpretation Of
the policy language his loss could be covered so he disputes the decision
When his case went to trial the jury also decided the policy was open to
interpretation so the decided in favor of Stephen this is because - Answer-
They depend on an unknown future event - Answer-Insurance policies are
aleatory contracts. This means
Alien insurer - Answer-An insurer that obeys the laws of a country other than the
US is called
Stock company - Answer-What type of insurer sells shares to the public and is
owned by its shareholders?
captive insurer - Answer-Any town pediatric has been having a a hard time finding
medial practice insurance. The premiums are extremely high. And they get higher
, every year. Finally fed up with the costs of insurance the directors decide to form
their own insurance company which will only serve Anytown Pediatric
What kind of insurance. Would his be ?
Non-admitted Insurer - Answer-Bob is looking for an insurance policy but he can't
find the right kind of insurance coverage on his home state of Oregon but he may
be able to purchase surplus lines insurance from:
hazard - Answer-Monica home is located in a flood zone . In insurance terms the
location of Monica's home is considered?
peri- - Answer-Nina 's home is located in a high crime area . One day she comes
home from work to find that her garage door has been spray painted with graffiti.
Nina's insurer would consider the act of vandalism a
During a fire the fire department hoses down a house to extinguish the flames.
The water damages that results is an indirect loss - Answer-Which of the following
is NOT an example an indirect loss?
- Answer-During a heavy thunderstorm the lightning strikes a tree outside Carl,s
house which splinters and falls onto Carl's roof. The room under the roof floods
with water damaging. Carl's expensive flooring Carl's roof damage would be
considered ?
Actual economic interest is defined as - Answer-Insurable interest is defined as
His favorite restaurant - Answer-Insurance interest allows rick to take out an
insurance policy in all but the following
Jim has already received indemnity from his insurer - Answer-When Shawn
purposefully caused fire damage to Jim's restaurant Jim's insurer paid the claim
and then sued Shawn for the damages but Jim is still pretty mad about the food
hole deal and wants to sue him as well. Why is it not possible for him to sue
Shawn?
Replacement cost minus total depreciation - Answer-How is actual cash value
calculated ?
