Adjuster Exam Study Prep
Adjuster Exam Study Prep
Study online at https://quizlet.com/_ewpv75
1. When mary leaves her stove on by accident, she starts An indirect loss
a fire that destroys her kitchen and leaves smmoke
damage throughout her home. While the fire depart-
ment puts the fire out, the influx of water causes
extensive damage as well. On top of all that, Mary is
forced to board her three dogs at a kennel for several
weeks while her house is under repair. The kennel
charge would be considered:
2. A typical mobile home policy: Settles losses on an actual
cash value basis
3. Which of the following is TRUE for tort law it deals with civil disputes
between parties
4. Roxanne bought her 50" TV four years ago for $2,400. $200
During a storm, her house is struck by lightning and $400*4=$1600.
the current fries her TV. The TV deprecites $400 per $1,800-$1,600=$200
year, and a similar TV costs $1,800 today. Assuming
Roxanne's homeowners policy pays ACV for personal
property, how much can she expect to receive in in-
demnification for the damaged TV?
5. Astrid, a public adjuster, agrees to reduce her damage a kickback
estimate by 5%, in exchange for $500 in cash per claim
from LMN Insurance. This is an example of:
6. Which of the following statements about the coverage d. is FALSE
for watercraft in the standard homeowners policy is all other answers are TRUE
FALSE?
a. Wind and hail is excluded, unless the craft is en-
closed in a building.
b. Coverace C applies a special limit of $1,500 to wa-
Page 1 of 18
, Adjuster Exam Study Prep
Adjuster Exam Study Prep
Study online at https://quizlet.com/_ewpv75
tercraft.
c. Off-premises theft of watercraft is excluded.
d. The policy's liability coverage would apply to an
owned watercraft with a 50 hp outboard motor.
7. Tayshawn goes in to buy an auto insurance policy from Twisting
Sine Nomine Insurance. Kelly, the insurance agent,
deceitfully tells him that in order to take advantage of
the advertised low premiums, he will have to also pur-
chase his homeowners insurance from Sine Nomine.
Tayshawn is happy with his current policy, but he can-
cels it in favor of Sine Nomine. Which unethical sales
practice has Kelly committed?
8. Collision coverage will pay for which of the following A speeding car rolls over at
accidents? a sharp turn
9. When Sarah causes a wreck at an intersection, her car $3,500
is left with $3,400 in damages. She gets a rental while $3,400+$600-$500=$3,500
her car is in the repair shop, which costs an additional
$600. If Sarah's personal auto policy has $500 collision
deductible, how will she be indemnified?
10. James holds a DP-1 policy on his house for $150,000. $8000 - Jane's policy rep-
His wife, Jane, feels that they should really have closer resents 1/4 the total cov-
to $200,000 in total coverage, so she takes out an erage and therefore pays
additional $50,000 DP-1 policy on the same dwelling. 1/4 of the damages.
Both policies pay settlements on a pro rata basis. After
a fire causes $32,000 in damage to the home, how
much of the damages will be covered by Jane's DP-1
policy?
11. bail bond
Page 2 of 18
, Adjuster Exam Study Prep
Adjuster Exam Study Prep
Study online at https://quizlet.com/_ewpv75
Jim has been arrested for drunk driving. In order to be
allowed out of jail before his court date, Jim will most
likely need:
12. Missy lives on the top floor at Lakewood Condomini- Missy would be indemni-
ums. One day, a windstorm severely damages the fied for her furniture and
building, including structural damage, broken win- floors, but not the roof.
dows, and interior water damage to most of the units.
Part of the roof over Missy's unit is torn off by the high
winds, and the rain ruins her furniture and hardwood
floors. Which of these losses would be covered by
Missy's HO-6 policy?
13. Carrie is a member of the Benevolent and Protective A fraternal benefit society
Order of the Elks. As such, she receives discounts on
things like hotels, bike tours, online shopping, and
insurance. She decides to purchase a $20,000 whole
life insurance policy through the Order of the Elks. This
is possible because the Elks are:
14. Frank owns a front-loader that he uses in his construc- Mobile Equipment
tion business. Which endorsement would he need to
purchase in order to include this vehicle as an "auto"
under his BAP?
15. The homeowners policy on Daryl's $110,000 home is The insurer pays the mort-
voided when he intentionally burns the house to the gage lender $76,000
ground. Consequently, he does not receive the settle-
ment check he was hoping to get when he committed
the arson, but he still has an outstanding mortgage
balance of $76,000. How does this event affect the
mortgage lender?
Page 3 of 18
Adjuster Exam Study Prep
Study online at https://quizlet.com/_ewpv75
1. When mary leaves her stove on by accident, she starts An indirect loss
a fire that destroys her kitchen and leaves smmoke
damage throughout her home. While the fire depart-
ment puts the fire out, the influx of water causes
extensive damage as well. On top of all that, Mary is
forced to board her three dogs at a kennel for several
weeks while her house is under repair. The kennel
charge would be considered:
2. A typical mobile home policy: Settles losses on an actual
cash value basis
3. Which of the following is TRUE for tort law it deals with civil disputes
between parties
4. Roxanne bought her 50" TV four years ago for $2,400. $200
During a storm, her house is struck by lightning and $400*4=$1600.
the current fries her TV. The TV deprecites $400 per $1,800-$1,600=$200
year, and a similar TV costs $1,800 today. Assuming
Roxanne's homeowners policy pays ACV for personal
property, how much can she expect to receive in in-
demnification for the damaged TV?
5. Astrid, a public adjuster, agrees to reduce her damage a kickback
estimate by 5%, in exchange for $500 in cash per claim
from LMN Insurance. This is an example of:
6. Which of the following statements about the coverage d. is FALSE
for watercraft in the standard homeowners policy is all other answers are TRUE
FALSE?
a. Wind and hail is excluded, unless the craft is en-
closed in a building.
b. Coverace C applies a special limit of $1,500 to wa-
Page 1 of 18
, Adjuster Exam Study Prep
Adjuster Exam Study Prep
Study online at https://quizlet.com/_ewpv75
tercraft.
c. Off-premises theft of watercraft is excluded.
d. The policy's liability coverage would apply to an
owned watercraft with a 50 hp outboard motor.
7. Tayshawn goes in to buy an auto insurance policy from Twisting
Sine Nomine Insurance. Kelly, the insurance agent,
deceitfully tells him that in order to take advantage of
the advertised low premiums, he will have to also pur-
chase his homeowners insurance from Sine Nomine.
Tayshawn is happy with his current policy, but he can-
cels it in favor of Sine Nomine. Which unethical sales
practice has Kelly committed?
8. Collision coverage will pay for which of the following A speeding car rolls over at
accidents? a sharp turn
9. When Sarah causes a wreck at an intersection, her car $3,500
is left with $3,400 in damages. She gets a rental while $3,400+$600-$500=$3,500
her car is in the repair shop, which costs an additional
$600. If Sarah's personal auto policy has $500 collision
deductible, how will she be indemnified?
10. James holds a DP-1 policy on his house for $150,000. $8000 - Jane's policy rep-
His wife, Jane, feels that they should really have closer resents 1/4 the total cov-
to $200,000 in total coverage, so she takes out an erage and therefore pays
additional $50,000 DP-1 policy on the same dwelling. 1/4 of the damages.
Both policies pay settlements on a pro rata basis. After
a fire causes $32,000 in damage to the home, how
much of the damages will be covered by Jane's DP-1
policy?
11. bail bond
Page 2 of 18
, Adjuster Exam Study Prep
Adjuster Exam Study Prep
Study online at https://quizlet.com/_ewpv75
Jim has been arrested for drunk driving. In order to be
allowed out of jail before his court date, Jim will most
likely need:
12. Missy lives on the top floor at Lakewood Condomini- Missy would be indemni-
ums. One day, a windstorm severely damages the fied for her furniture and
building, including structural damage, broken win- floors, but not the roof.
dows, and interior water damage to most of the units.
Part of the roof over Missy's unit is torn off by the high
winds, and the rain ruins her furniture and hardwood
floors. Which of these losses would be covered by
Missy's HO-6 policy?
13. Carrie is a member of the Benevolent and Protective A fraternal benefit society
Order of the Elks. As such, she receives discounts on
things like hotels, bike tours, online shopping, and
insurance. She decides to purchase a $20,000 whole
life insurance policy through the Order of the Elks. This
is possible because the Elks are:
14. Frank owns a front-loader that he uses in his construc- Mobile Equipment
tion business. Which endorsement would he need to
purchase in order to include this vehicle as an "auto"
under his BAP?
15. The homeowners policy on Daryl's $110,000 home is The insurer pays the mort-
voided when he intentionally burns the house to the gage lender $76,000
ground. Consequently, he does not receive the settle-
ment check he was hoping to get when he committed
the arson, but he still has an outstanding mortgage
balance of $76,000. How does this event affect the
mortgage lender?
Page 3 of 18
