ISURANCE ADJUSTER EXAM
QUESTIONS TEST BANK QUESTIONS
AND ANSWERS
Which of the following would most likely be covered under Other Than Collision
coverage in a personal auto policy? -Answer-Civil Unrest
D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash
into a lamp post. Which part of his Personal Auto Policy will help him pay for the repairs
to the lamp post? -Answer-Liability Coverage
In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of the
following vehicles, EXCEPT: -Answer-a trailer that Tim's neighbor let him borrow.
Under a garagekeepers policy, which coverage would split a covered loss with the car
owner's personal insurance? -Answer-Direct Primary
In a Commercial Auto Policy, which coverage symbol indicates that a car is subject to
mandatory no-fault insurance? -Answer-5
Under a Personal Auto Policy, an insurer will cover Medical Payments for up to ____
from the date of the accident. -Answer-3 years
Which of the following people is NOT occupying a vehicle that would qualify as "your
covered auto" on the declarations page of his Personal Auto Policy? -Answer-Patrick
borrows his neighbor's 45,000 pound semi truck to help his neighbor move.
Molly borrows her friend Dom's car to run to the grocery store. On the way home, she
rear-ends a van, injuring the driver and 3 other passengers. Each of the passengers
suffers $45,000 in injuries, while the driver suffers $40,000. Assuming Dom has a
liability policy with limits of 50/100/50, while Molly has 25/50/25 coverage, how much will
the primary policy cover? -Answer-100,000
Liability limits in a Personal Auto Policy are applied: -Answer-Per Person, and Per
Accident
Part D of the Personal Auto Policy does NOT cover: -Answer-Freezing
Don has a PAP with $500 Collision and Comprehensive deductibles, Liability limits of
25/50/25, and $5,000 in Medical Payments coverage. He is struck by a car while taking
a walk in his neighborhood, leaving him with $36,500 in medical costs. The driver of the
,vehicle has liability coverage of 30/60/25, which pays up to its limit for Don's injuries.
How will Don's policy respond to the loss? -Answer-Medical Payments will pay $5,000.
PAP holders have several duties after a loss. Which of the following is NOT one of
them? -Answer-The Policy holder must complete a drivering safety course
Nancy borrows Drew's car so she can run to the grocery store. While out, she rear-ends
an SUV, injuring the driver and one passenger. The passenger suffers $40,000 in
injuries, while the driver suffers $60,000. Assuming Drew has a liability policy with limits
of 30/60/10, while Nancy carries minimum coverage for South Carolina, how much will
Nancy's policy cover? -Answer-$35,000
In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement: -Answer-
allows coverage to be added for motorcycles and motor homes.
Which of the following people would NOT qualify as an "insured" under a BAP? -
Answer-The policyholder's spouse, who is not named on the policy but habitually drives
the company's SUV without permission.
Rebecca has Collision coverage in her Personal Auto Policy. After a collision, the
adjuster determines that Rebecca's car is totaled. How much is Rebecca likely to
receive from her insurer (ignoring the deductible)? -Answer-The actual cash value of her
vehicle
In a personal auto policy, Collision coverage: -Answer-pays for physical damage to the
vehicle caused by a rollover.
Deana has Personal Injury Protection coverage in her PAP. Which of these injuries
would NOT be covered by Deana's PIP? -Answer-Tom suffers neck injuries when
Deana rear-ends him at a stop sign.
On January 27, 2008, Ryan is using an exercise bike purchased from NusquamCycle
when the chain breaks, causing him to fall and severely bruise his knee. It seems to
heal just fine, but three years later, on January 29, 2011, Ryan's knee gives out while
jogging. His doctor informs him that he'll need surgery and that this deterioration was
most likely caused by his earlier accident with the exercise bike. Assuming
NusquamCycle is no longer in business, which Commercial General Liability policy
would cover Ryan's claim filed January 29, 2011? -Answer-An occurrence policy from
Jan 31 2006-Jan 31 2009
Julie owns the local shopping mall. One day, Julie sees Greg walking through the mall
and doesn't like the way he looks, so she forces him to leave the premises. Greg then
sues Julie for her actions. This is an example of what type of personal injury covered
under Julie's Commercial General Liability policy? -Answer-Wrongful eviction
, Mindy filed a claim against XYZ Consulting on March 5, 2016 for an accident that
happened on September 15, 2015. XYZ Consulting was previously covered by a claims-
made CGL policy, but changed to an occurrence policy in January 2016, when the
policy came up for annual renewal. How will XYZ Consulting's insurer respond to
Mindy's claim? -Answer-The claim will not be covered because the accident did not
occur during the current policy period.
Which of the following would be covered under Coverage B of the Business Owners
Policy? -Answer-The copy machine in a restaurant's back office
Which of the following would be covered under Coverage B of a typical Business
Owners Policy? -Answer-Inventory
Which of the following coverages is typically included in a BOP? -Answer-Coverage for
slander and copyright
Lena is moving to Japan for two years in order to take advantage of a promotion at her
job. She won't bring her 4-seater propeller plane with her. What kind of aviation
insurance should Lena purchase for her plane while it's in storage and she is away? -
Answer-All risks- Not in motion
Which of the following statements about flood insurance is FALSE? -Answer-Flood
insurance rates are determined by private insurers
Blue Lines Shipping sustains hundreds of thousands of dollars in losses when one of
their ships full of cargo catches fire and sinks in the Pacific Ocean. Which of the
following situations would NOT be cause for the insurer to refuse to indemnify Blue
Lines Shipping for its losses? -Answer-A storm knocks out the navigation system,
causing an electrical fire.
African Spice Exporters Inc. brings two shipments of cloves from Zanzibar, Tanzania to
the United States each year. When their second shipment of the year is stopped by the
Coast Guard off the coast of Florida, 10 pounds of contraband is found hidden among
the bins of cloves. All of the ship's cargo is seized and the ship's crew arrested. When
African Spice Exporters Inc. files a claim with its insurer for the seized cargo, the claim
comes back denied. Why might this claim have been denied? -Answer-African Spice
Exporters Inc. violated the "legality" implied warranty of ocean marine insurance.
Most states require businesses to purchase workers' compensation insurance to cover
their employees. Workers' comp in those states is: -Answer-Compulsory
Who is responsible for paying the premiums on a workers' compensation policy? -
Answer-The Employer
Kerry's advertising business employs Meg to clean offices at night, and recently Meg
slipped and fell at work, hurting her back. Kerry can be assured that workers'
QUESTIONS TEST BANK QUESTIONS
AND ANSWERS
Which of the following would most likely be covered under Other Than Collision
coverage in a personal auto policy? -Answer-Civil Unrest
D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash
into a lamp post. Which part of his Personal Auto Policy will help him pay for the repairs
to the lamp post? -Answer-Liability Coverage
In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of the
following vehicles, EXCEPT: -Answer-a trailer that Tim's neighbor let him borrow.
Under a garagekeepers policy, which coverage would split a covered loss with the car
owner's personal insurance? -Answer-Direct Primary
In a Commercial Auto Policy, which coverage symbol indicates that a car is subject to
mandatory no-fault insurance? -Answer-5
Under a Personal Auto Policy, an insurer will cover Medical Payments for up to ____
from the date of the accident. -Answer-3 years
Which of the following people is NOT occupying a vehicle that would qualify as "your
covered auto" on the declarations page of his Personal Auto Policy? -Answer-Patrick
borrows his neighbor's 45,000 pound semi truck to help his neighbor move.
Molly borrows her friend Dom's car to run to the grocery store. On the way home, she
rear-ends a van, injuring the driver and 3 other passengers. Each of the passengers
suffers $45,000 in injuries, while the driver suffers $40,000. Assuming Dom has a
liability policy with limits of 50/100/50, while Molly has 25/50/25 coverage, how much will
the primary policy cover? -Answer-100,000
Liability limits in a Personal Auto Policy are applied: -Answer-Per Person, and Per
Accident
Part D of the Personal Auto Policy does NOT cover: -Answer-Freezing
Don has a PAP with $500 Collision and Comprehensive deductibles, Liability limits of
25/50/25, and $5,000 in Medical Payments coverage. He is struck by a car while taking
a walk in his neighborhood, leaving him with $36,500 in medical costs. The driver of the
,vehicle has liability coverage of 30/60/25, which pays up to its limit for Don's injuries.
How will Don's policy respond to the loss? -Answer-Medical Payments will pay $5,000.
PAP holders have several duties after a loss. Which of the following is NOT one of
them? -Answer-The Policy holder must complete a drivering safety course
Nancy borrows Drew's car so she can run to the grocery store. While out, she rear-ends
an SUV, injuring the driver and one passenger. The passenger suffers $40,000 in
injuries, while the driver suffers $60,000. Assuming Drew has a liability policy with limits
of 30/60/10, while Nancy carries minimum coverage for South Carolina, how much will
Nancy's policy cover? -Answer-$35,000
In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement: -Answer-
allows coverage to be added for motorcycles and motor homes.
Which of the following people would NOT qualify as an "insured" under a BAP? -
Answer-The policyholder's spouse, who is not named on the policy but habitually drives
the company's SUV without permission.
Rebecca has Collision coverage in her Personal Auto Policy. After a collision, the
adjuster determines that Rebecca's car is totaled. How much is Rebecca likely to
receive from her insurer (ignoring the deductible)? -Answer-The actual cash value of her
vehicle
In a personal auto policy, Collision coverage: -Answer-pays for physical damage to the
vehicle caused by a rollover.
Deana has Personal Injury Protection coverage in her PAP. Which of these injuries
would NOT be covered by Deana's PIP? -Answer-Tom suffers neck injuries when
Deana rear-ends him at a stop sign.
On January 27, 2008, Ryan is using an exercise bike purchased from NusquamCycle
when the chain breaks, causing him to fall and severely bruise his knee. It seems to
heal just fine, but three years later, on January 29, 2011, Ryan's knee gives out while
jogging. His doctor informs him that he'll need surgery and that this deterioration was
most likely caused by his earlier accident with the exercise bike. Assuming
NusquamCycle is no longer in business, which Commercial General Liability policy
would cover Ryan's claim filed January 29, 2011? -Answer-An occurrence policy from
Jan 31 2006-Jan 31 2009
Julie owns the local shopping mall. One day, Julie sees Greg walking through the mall
and doesn't like the way he looks, so she forces him to leave the premises. Greg then
sues Julie for her actions. This is an example of what type of personal injury covered
under Julie's Commercial General Liability policy? -Answer-Wrongful eviction
, Mindy filed a claim against XYZ Consulting on March 5, 2016 for an accident that
happened on September 15, 2015. XYZ Consulting was previously covered by a claims-
made CGL policy, but changed to an occurrence policy in January 2016, when the
policy came up for annual renewal. How will XYZ Consulting's insurer respond to
Mindy's claim? -Answer-The claim will not be covered because the accident did not
occur during the current policy period.
Which of the following would be covered under Coverage B of the Business Owners
Policy? -Answer-The copy machine in a restaurant's back office
Which of the following would be covered under Coverage B of a typical Business
Owners Policy? -Answer-Inventory
Which of the following coverages is typically included in a BOP? -Answer-Coverage for
slander and copyright
Lena is moving to Japan for two years in order to take advantage of a promotion at her
job. She won't bring her 4-seater propeller plane with her. What kind of aviation
insurance should Lena purchase for her plane while it's in storage and she is away? -
Answer-All risks- Not in motion
Which of the following statements about flood insurance is FALSE? -Answer-Flood
insurance rates are determined by private insurers
Blue Lines Shipping sustains hundreds of thousands of dollars in losses when one of
their ships full of cargo catches fire and sinks in the Pacific Ocean. Which of the
following situations would NOT be cause for the insurer to refuse to indemnify Blue
Lines Shipping for its losses? -Answer-A storm knocks out the navigation system,
causing an electrical fire.
African Spice Exporters Inc. brings two shipments of cloves from Zanzibar, Tanzania to
the United States each year. When their second shipment of the year is stopped by the
Coast Guard off the coast of Florida, 10 pounds of contraband is found hidden among
the bins of cloves. All of the ship's cargo is seized and the ship's crew arrested. When
African Spice Exporters Inc. files a claim with its insurer for the seized cargo, the claim
comes back denied. Why might this claim have been denied? -Answer-African Spice
Exporters Inc. violated the "legality" implied warranty of ocean marine insurance.
Most states require businesses to purchase workers' compensation insurance to cover
their employees. Workers' comp in those states is: -Answer-Compulsory
Who is responsible for paying the premiums on a workers' compensation policy? -
Answer-The Employer
Kerry's advertising business employs Meg to clean offices at night, and recently Meg
slipped and fell at work, hurting her back. Kerry can be assured that workers'
