SOUTH CAROLINA ADJUSTER TEST |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Insured that faces a liability loss expected? Provide prompt notification
Promptly forward to the insurer any loss notice, demand, summons, or other legal
process.
Assist the insurer in making a settlement.
Attend the trial or other proceedings, if requested.
Provide witnesses information
Assume no obligation and make no payments directly to claimants
Do not admit to the claim
Policy Limits The maximum amount an insured may collect, or for which an insured is protected under
the terms of the policy.
Salvage Damaged property, If an insurer pays for a Total loss to covered property, the insurer has
the right to recover, sell, or dispose of the property.
Appraisal Condition In a situation where the amount of loss is in a disagreement the insurer and insured will
both obtain an appraiser and the appraisers will obtain an umpire.
Claim Settlement Options for Property The limits of liability under the policy
Amount of money of insured repair ing or replacing the property
Replace the damaged property with like kind and quality
The amount actually spent to repair the damaged property
Claim Settlement Options for liability The insurer will investigate the claim
Pay as necessary
Pay defense costs, and attorney fees regardless of the outcome
Vacancy or Unoccupancy A vacant building contains no people and no furniture or other personal property
An unoccupied building contains no people, but there may be some furniture or other
personal property.
Restoration of Limits After occurrence new set limits are available. However in a event of partial loss the limits
are reduced by the amount of the partial until the repairs are made.
per person The maximum amount available for payment of bodily injury to a single person in an
accident, regardless of the policy limit stated in the policy for bodily injury claims.
, Aggregate Limit The maximum amount an insurer will pay for all covered losses during the covered policy
period.
Split Limits Policy limit that provides separate limits for BI and PD
Combined Single Limit One policy limit that applies to both BI and PD losses as one total limit coverage and to
one single accident.
Limits on Liability A policy that has a maximum amount insurer will pay out.
Property insurance policy often contains sub-limits to specific types of property. Such as
money, jewelry, or trees.
pro rata liability A generic term for a provision that applies when two or more policies of the same type
cover the same insurable interest in the property. Each insurer pays based on the
proportion that its insurance bears to the total amount of insurance on the property.
contribution by equal shares Under this concept, when 2 or more insurers' policies cover at the same level (Primary or
Excess), each insurer contributes an equal amount to the loss settlement until the loss is
paid, or until each insurer has exhausted its limits of insurance, whichever comes first.
Example: If there are 3 insurers participating, each would pay 33 1/3 percent of the loss; if
4 insurers participating, each would pay 25 percent of the loss; or if 5 insurers
participating, each would pay 20 percent of the loss.
primary and excess insurance the primary insurer pays first, and the excess insurer pays only after the policy limits
under the primary policy are exhausted
Policy Territory Specifies the geographic area in which the property must be damaged in order for
coverage to apply.
cancellation When policy is terminated prior to the expiration date, by the insurer or insured a
cancellation.
Language describes when, how, and by whom and for what reason, when cancelled by
insurer.
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Insured that faces a liability loss expected? Provide prompt notification
Promptly forward to the insurer any loss notice, demand, summons, or other legal
process.
Assist the insurer in making a settlement.
Attend the trial or other proceedings, if requested.
Provide witnesses information
Assume no obligation and make no payments directly to claimants
Do not admit to the claim
Policy Limits The maximum amount an insured may collect, or for which an insured is protected under
the terms of the policy.
Salvage Damaged property, If an insurer pays for a Total loss to covered property, the insurer has
the right to recover, sell, or dispose of the property.
Appraisal Condition In a situation where the amount of loss is in a disagreement the insurer and insured will
both obtain an appraiser and the appraisers will obtain an umpire.
Claim Settlement Options for Property The limits of liability under the policy
Amount of money of insured repair ing or replacing the property
Replace the damaged property with like kind and quality
The amount actually spent to repair the damaged property
Claim Settlement Options for liability The insurer will investigate the claim
Pay as necessary
Pay defense costs, and attorney fees regardless of the outcome
Vacancy or Unoccupancy A vacant building contains no people and no furniture or other personal property
An unoccupied building contains no people, but there may be some furniture or other
personal property.
Restoration of Limits After occurrence new set limits are available. However in a event of partial loss the limits
are reduced by the amount of the partial until the repairs are made.
per person The maximum amount available for payment of bodily injury to a single person in an
accident, regardless of the policy limit stated in the policy for bodily injury claims.
, Aggregate Limit The maximum amount an insurer will pay for all covered losses during the covered policy
period.
Split Limits Policy limit that provides separate limits for BI and PD
Combined Single Limit One policy limit that applies to both BI and PD losses as one total limit coverage and to
one single accident.
Limits on Liability A policy that has a maximum amount insurer will pay out.
Property insurance policy often contains sub-limits to specific types of property. Such as
money, jewelry, or trees.
pro rata liability A generic term for a provision that applies when two or more policies of the same type
cover the same insurable interest in the property. Each insurer pays based on the
proportion that its insurance bears to the total amount of insurance on the property.
contribution by equal shares Under this concept, when 2 or more insurers' policies cover at the same level (Primary or
Excess), each insurer contributes an equal amount to the loss settlement until the loss is
paid, or until each insurer has exhausted its limits of insurance, whichever comes first.
Example: If there are 3 insurers participating, each would pay 33 1/3 percent of the loss; if
4 insurers participating, each would pay 25 percent of the loss; or if 5 insurers
participating, each would pay 20 percent of the loss.
primary and excess insurance the primary insurer pays first, and the excess insurer pays only after the policy limits
under the primary policy are exhausted
Policy Territory Specifies the geographic area in which the property must be damaged in order for
coverage to apply.
cancellation When policy is terminated prior to the expiration date, by the insurer or insured a
cancellation.
Language describes when, how, and by whom and for what reason, when cancelled by
insurer.
