JOURNEYMAN PIPEFITTER LICENSE EXAM 5
FINAL PAPER 2026 COMPLETE SOLVED
QUESTIONS PRACTICE REVISION PACK EXPERT
REVIEW
◉ A reservation of rights:
A. lets the insurer begin to investigate a claim, without later being
forced to pay it if it turns out not to be covered.
B. is a letter that needs to be signed by the policyholder.
C. informs the policyholder that his claim has been denied.
D. means that the insurer does not need to defend a policyholder in
court.
Answer: A. lets the insurer begin to investigate a claim, without later
being forced to pay it if it turns out not to be covered.
◉ A Reservation of Rights letter is sent by:
A. the policyholder to the insurance company.
B. by the claimant to his legal counsel.
C. a third party to the responsible first party.
D. the insurer to the claimant..
Answer: D. the insurer to the claimant.
,◉ Which of the following is excluded from liability insurance
coverage?
A. vicarious liability
B. intentional acts of tort or wrongdoing
C. carelessness
D. unintentional acts of negligence.
Answer: B. intentional acts of tort or wrongdoing
◉ Larry accidentally left a candle burning when he went to sleep one
night, and his house caught fire. Larry disagrees with the amount of
the adjuster's estimate to repair the damage, so he and his insurer
have each chosen a representative, and the two representatives have
also mutually decided upon an umpire. These three individuals will
attempt to reach a settlement amount, and if at least two of them
agree, the decision will be legally binding. What type of negotiation
technique are Larry and his insurer using?
A. Mediation
B. Arbitration
C. Litigation.
D. Appraisal.
Answer: D. Appraisal
◉ Common law is based upon:
A. written laws promulgated by the federal government.
,B. state law.
C. court decisions and customs.
D. tort law..
Answer: C. court decisions and customs.
◉ After wrecking her car on an icy road, Lilly filed a claim with her
insurer, ABM Insurance, who dispatched Richard to investigate her
claim. Who is the principal in this scenario?
A. ABM Insurance
B. This information is not provided in the scenario.
C. Lilly
D. Richard.
Answer: A. ABM Insurance
◉ Skip's Convenience Store must agree to install and maintain an
emergency shutoff system for its gas pumps in order to qualify for
insurance coverage. Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the
policy.
B. This requirement is a warranty found in the conditions section of
the policy.
C. This requirement is a warranty found in the declarations section
of the policy.
, D. This requirement is a representation found in the declarations
section of the policy..
Answer: B. This requirement is a warranty found in the conditions
section of the policy.
◉ Tom is an experienced insurance agent looking for a new job
where he works for one insurer and has the responsibility of
training and supervising other agents. Which of the following would
best fit the type of job Tom is looking for?
A. Captive Agent
B. Independent Agent
C. Direct Writer
D. General Agent.
Answer: D. General Agent
◉ When Nancy was pulling into her driveway, she accidently hit the
gas and plowed through the front wall of her house and into her
living room, causing $22,000 in damages to her home. Unfortunately
for Nancy, the adjuster denies her claim because the cause of loss is
excluded from coverage. Nancy tries to negotiate with the adjuster,
but she is unsuccessful. This is because:
A. adjusters do not have the authority to negotiate with claimants.
B. the difference in dollar amounts is too great.
C. coverage is not negotiable.
FINAL PAPER 2026 COMPLETE SOLVED
QUESTIONS PRACTICE REVISION PACK EXPERT
REVIEW
◉ A reservation of rights:
A. lets the insurer begin to investigate a claim, without later being
forced to pay it if it turns out not to be covered.
B. is a letter that needs to be signed by the policyholder.
C. informs the policyholder that his claim has been denied.
D. means that the insurer does not need to defend a policyholder in
court.
Answer: A. lets the insurer begin to investigate a claim, without later
being forced to pay it if it turns out not to be covered.
◉ A Reservation of Rights letter is sent by:
A. the policyholder to the insurance company.
B. by the claimant to his legal counsel.
C. a third party to the responsible first party.
D. the insurer to the claimant..
Answer: D. the insurer to the claimant.
,◉ Which of the following is excluded from liability insurance
coverage?
A. vicarious liability
B. intentional acts of tort or wrongdoing
C. carelessness
D. unintentional acts of negligence.
Answer: B. intentional acts of tort or wrongdoing
◉ Larry accidentally left a candle burning when he went to sleep one
night, and his house caught fire. Larry disagrees with the amount of
the adjuster's estimate to repair the damage, so he and his insurer
have each chosen a representative, and the two representatives have
also mutually decided upon an umpire. These three individuals will
attempt to reach a settlement amount, and if at least two of them
agree, the decision will be legally binding. What type of negotiation
technique are Larry and his insurer using?
A. Mediation
B. Arbitration
C. Litigation.
D. Appraisal.
Answer: D. Appraisal
◉ Common law is based upon:
A. written laws promulgated by the federal government.
,B. state law.
C. court decisions and customs.
D. tort law..
Answer: C. court decisions and customs.
◉ After wrecking her car on an icy road, Lilly filed a claim with her
insurer, ABM Insurance, who dispatched Richard to investigate her
claim. Who is the principal in this scenario?
A. ABM Insurance
B. This information is not provided in the scenario.
C. Lilly
D. Richard.
Answer: A. ABM Insurance
◉ Skip's Convenience Store must agree to install and maintain an
emergency shutoff system for its gas pumps in order to qualify for
insurance coverage. Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the
policy.
B. This requirement is a warranty found in the conditions section of
the policy.
C. This requirement is a warranty found in the declarations section
of the policy.
, D. This requirement is a representation found in the declarations
section of the policy..
Answer: B. This requirement is a warranty found in the conditions
section of the policy.
◉ Tom is an experienced insurance agent looking for a new job
where he works for one insurer and has the responsibility of
training and supervising other agents. Which of the following would
best fit the type of job Tom is looking for?
A. Captive Agent
B. Independent Agent
C. Direct Writer
D. General Agent.
Answer: D. General Agent
◉ When Nancy was pulling into her driveway, she accidently hit the
gas and plowed through the front wall of her house and into her
living room, causing $22,000 in damages to her home. Unfortunately
for Nancy, the adjuster denies her claim because the cause of loss is
excluded from coverage. Nancy tries to negotiate with the adjuster,
but she is unsuccessful. This is because:
A. adjusters do not have the authority to negotiate with claimants.
B. the difference in dollar amounts is too great.
C. coverage is not negotiable.
