ALL LINES ADJUSTER EXAM QUESTIONS
WITH VERIFIED ACTUAL ANSWERS .
The insured has filed a claim under the "Business Income Department Properties - Broad Form" because
the primary buyer of products and services from the business has filed for bankruptcy under this form
the primary buyers business would be known as - correct Answers -A recipient location
recipient location - correct Answers -Businesses who support insured by being the primary buyer for
their products
HO-3 (special form) - correct Answers -covers the dwelling and other structures on a risk-of-direct-
physical loss basis. All direct physical losses are covered except those losses specifically excluded.
Personal property is covered on a named perils basis
HO-5 Comprehensive Form - correct Answers -provides open perils coverage ("all-risks coverage") on the
dwelling, other structures and personal property.
HO-2 (broad form) - correct Answers -covers the dwelling, other structures, and personal property on a
named perils basis
HO-4 (contents broad form) - correct Answers -Only covers a tenant's personal property on a named
perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the barn?
- correct Answers -Nothing farm property are not eligible under the dwelling policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned
by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________. - correct
Answers -Temporary Substitute Auto
1
,The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse. - correct Answers -Answer: A
An additional auto acquired during the policy period is considered a covered auto. However, some
restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on the
declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars, the
insured does not need to add it during that policy period.
Coverage F on homeowners policy provides - correct Answers -Medical payments to others; pays all
necessary medical expenses for up to three years after an accident.
Coverage F: Medical Payments to Others - correct Answers -Does not apply to the insured or members
of the insured's household
Not liability coverage and is not base on fault
An insured has taken inventory of his merchandise and discovers a substantial shortage of valuable
stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners
Policy. What coverage is provided by the BOP? - correct Answers -No coverage would apply, there is no
coverage for missing property when there is no physical evidence to show cause of loss
Arbitration (ADR) - correct Answers -Neutral third party hears a dispute and makes a decision both
parties have agreed to follow.
Mediation - correct Answers -A method of settling disputes outside of court by using the services of a
neutral third party, called a mediator. The mediator acts as a communicating agent between the parties
and suggests ways in which the parties can resolve their dispute. Not binding.
2
, Difference between Arbitration and Meditation? - correct Answers -Mediation is not binding, Arbitration
is.
Mediation-Arbitration - correct Answers -If the parties cannot reach a settlement through mediation, an
arbitrator will resolve the dispute.
The building and personal property coverage form provides coverage for outdoor signs - correct
Answers -Whether attached to the building or not for up to 2,500 if damaged by a peril insured against.
Building and Personal Property Coverage Form - correct Answers -Commercial Property coverage form
that covers buildings, the insured's business personal property, and the personal property of others
located at the business premises
Foreseeability Test - correct Answers -To determine if the defendant's conduct was the proximate cause
of the plaintiff's injury, the court applies
Foreseeability - correct Answers -excludes liability for harms that were sufficiently unforeseeable at the
time of the defendant's tortious conduct.
Purpose of freight insurance - correct Answers -Covers shipper fees
Freight Insurance - correct Answers -indemnifies the ship owner for the loss of earnings if the goods are
damaged or lost and are not delivered. Shipper Fees.
Freight Insurance - correct Answers -insures that shipowner will receive payment for transportation
charges.
What perils are covered on the basic form peril of the Homeowners Policy - correct Answers -fire,
lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles, vandalism, riot and civil
commotion, theft, and premises liability.
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WITH VERIFIED ACTUAL ANSWERS .
The insured has filed a claim under the "Business Income Department Properties - Broad Form" because
the primary buyer of products and services from the business has filed for bankruptcy under this form
the primary buyers business would be known as - correct Answers -A recipient location
recipient location - correct Answers -Businesses who support insured by being the primary buyer for
their products
HO-3 (special form) - correct Answers -covers the dwelling and other structures on a risk-of-direct-
physical loss basis. All direct physical losses are covered except those losses specifically excluded.
Personal property is covered on a named perils basis
HO-5 Comprehensive Form - correct Answers -provides open perils coverage ("all-risks coverage") on the
dwelling, other structures and personal property.
HO-2 (broad form) - correct Answers -covers the dwelling, other structures, and personal property on a
named perils basis
HO-4 (contents broad form) - correct Answers -Only covers a tenant's personal property on a named
perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the barn?
- correct Answers -Nothing farm property are not eligible under the dwelling policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned
by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________. - correct
Answers -Temporary Substitute Auto
1
,The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse. - correct Answers -Answer: A
An additional auto acquired during the policy period is considered a covered auto. However, some
restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on the
declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars, the
insured does not need to add it during that policy period.
Coverage F on homeowners policy provides - correct Answers -Medical payments to others; pays all
necessary medical expenses for up to three years after an accident.
Coverage F: Medical Payments to Others - correct Answers -Does not apply to the insured or members
of the insured's household
Not liability coverage and is not base on fault
An insured has taken inventory of his merchandise and discovers a substantial shortage of valuable
stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners
Policy. What coverage is provided by the BOP? - correct Answers -No coverage would apply, there is no
coverage for missing property when there is no physical evidence to show cause of loss
Arbitration (ADR) - correct Answers -Neutral third party hears a dispute and makes a decision both
parties have agreed to follow.
Mediation - correct Answers -A method of settling disputes outside of court by using the services of a
neutral third party, called a mediator. The mediator acts as a communicating agent between the parties
and suggests ways in which the parties can resolve their dispute. Not binding.
2
, Difference between Arbitration and Meditation? - correct Answers -Mediation is not binding, Arbitration
is.
Mediation-Arbitration - correct Answers -If the parties cannot reach a settlement through mediation, an
arbitrator will resolve the dispute.
The building and personal property coverage form provides coverage for outdoor signs - correct
Answers -Whether attached to the building or not for up to 2,500 if damaged by a peril insured against.
Building and Personal Property Coverage Form - correct Answers -Commercial Property coverage form
that covers buildings, the insured's business personal property, and the personal property of others
located at the business premises
Foreseeability Test - correct Answers -To determine if the defendant's conduct was the proximate cause
of the plaintiff's injury, the court applies
Foreseeability - correct Answers -excludes liability for harms that were sufficiently unforeseeable at the
time of the defendant's tortious conduct.
Purpose of freight insurance - correct Answers -Covers shipper fees
Freight Insurance - correct Answers -indemnifies the ship owner for the loss of earnings if the goods are
damaged or lost and are not delivered. Shipper Fees.
Freight Insurance - correct Answers -insures that shipowner will receive payment for transportation
charges.
What perils are covered on the basic form peril of the Homeowners Policy - correct Answers -fire,
lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles, vandalism, riot and civil
commotion, theft, and premises liability.
3
