RI Adjuster Exam Practice Exam: Q&A
Which of the following phrases BEST defines a hazard?
A. The uncertainty of a loss
B. The cause of a loss
C. An unexpected loss
D. A condition that increases the chance of a loss Correct Ans - D
A family takes their 50-horsepower outboard motor boat to the lake on a trailer towed behind their personal auto. The pleasure boat is appropriately covered for physical damage under which of the following policies?
A. Dwelling
B. Homeowners
C. Boat owners
D. Yacht Correct Ans - C
Which of the following perils is covered by Broad Form perils but not covered by the Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Sinkhole collapse Correct Ans - B
G insures G's television repair shop under a Building and Personal Property Coverage Form with limits of $100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to the building and $20,000 in losses to the contents. G also has to pay $1,000 for debris removal. If the policy has as deductible of $250, G will receive a MAXIMUM of which of the following amounts from the insurer?
A. $29,750
B. $30,000
C. $30,750
D. $31,000 Correct Ans - C
Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form (DP-1) is INCORRECT?
A. No act by the insured will jeopardize the mortgagee's rights
B. The mortgagee may file a Proof of Loss if the insured fails to do so C. The mortgagee is entitled to receive prior notice of a policy's cancellation
D. The mortgagee may abandon the insured property to the insurer. Correct Ans - D
A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be found in which of the following sections of a Commercial Property policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions Correct Ans - B
1. Which of the following businesses would be eligible for a Business owner's policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop Correct Ans - D
A primary obligation of an insurer is to:
A. Pay the claims covered under the policy
B. Provide a financial statement with each policy
C. Make inspections and surveys of insured property
D. Prepare an inventory after a loss Correct Ans - A
All of the following options are examples of insurable interest EXCEPT:
A. A person's interest in property she is buying on contract
B. A tenant's interest in improvements she has made to a leased building
C. A TV repairman's interest in a customer's TV which has been repaired but is
still on premises
D. An individuals' interest in property her parents will someday leave to her Correct Ans - D
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2) If a flood causes $1,000 in damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay?
A. $800
B. $0
C. $900 D. $1,000 Correct Ans - B
Which of the following sources may be used to provide property insurability information?
A. Police Records
B. Physical inspections
C. Checking account statements
D. Lie detector tests Correct Ans - B
Which of the following terms BEST describes continuous and repeated exposure to conditions that are neither expected nor intended by the insured?
A. Negligence
B. Liability
C. Accident
D. Occurrence Correct Ans - D
In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration a producer must secure from an applicant?
A. A signature on a premium finance agreement
B. Payment of six months' premium
C. Payment of twelve months' premium
D. Promise to pay premium Correct Ans - D
The National Flood Insurance Program provides coverage for losses caused by
all of the following occurrences EXCEPT:
A. Mudslides
B. Runoff from heavy rain
C. Overflow of tidal waters
D. Water-main breakage Correct Ans - D
The Personal Liability section of a Homeowners policy covers which of the following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured Correct Ans - D Which of the following statements is CORRECT about the Fair Credit Reporting Act?
It requires an insurer to send to an applicant a copy of the applicant's credit report
It requires an insurer to obtain a credit report on an applicant
It allows an insurer to obtain a credit report without the applicant's permission
It provides a method for an applicant to correct any incorrect information in the credit report Correct Ans - D
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause Correct Ans - A
A building adjacent to an insured's business is severely damaged by fire. Because of the nature of the damage to the adjoining property, the insured is denied access to the business by the fire department. If the insured's property is covered under a Business Income Coverage Form, the insurer will cover the loss of the earnings for a MAXIMUM of:
A. Thirty days
B. Sixty days
C. Three weeks
D. Six months Correct Ans - A
A sudden and unexpected event that is normally identifiable as to time and place is best described as:
A. An accident
B. A liability
C. Negligence
D. An occurrence Correct Ans - A
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire interior. Water used to extinguish the fire causes extensive damage to floors and furnishings. The water damage is best described as:
A. A time element loss
B. A consequential loss
Which of the following phrases BEST defines a hazard?
A. The uncertainty of a loss
B. The cause of a loss
C. An unexpected loss
D. A condition that increases the chance of a loss Correct Ans - D
A family takes their 50-horsepower outboard motor boat to the lake on a trailer towed behind their personal auto. The pleasure boat is appropriately covered for physical damage under which of the following policies?
A. Dwelling
B. Homeowners
C. Boat owners
D. Yacht Correct Ans - C
Which of the following perils is covered by Broad Form perils but not covered by the Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Sinkhole collapse Correct Ans - B
G insures G's television repair shop under a Building and Personal Property Coverage Form with limits of $100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to the building and $20,000 in losses to the contents. G also has to pay $1,000 for debris removal. If the policy has as deductible of $250, G will receive a MAXIMUM of which of the following amounts from the insurer?
A. $29,750
B. $30,000
C. $30,750
D. $31,000 Correct Ans - C
Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form (DP-1) is INCORRECT?
A. No act by the insured will jeopardize the mortgagee's rights
B. The mortgagee may file a Proof of Loss if the insured fails to do so C. The mortgagee is entitled to receive prior notice of a policy's cancellation
D. The mortgagee may abandon the insured property to the insurer. Correct Ans - D
A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be found in which of the following sections of a Commercial Property policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions Correct Ans - B
1. Which of the following businesses would be eligible for a Business owner's policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop Correct Ans - D
A primary obligation of an insurer is to:
A. Pay the claims covered under the policy
B. Provide a financial statement with each policy
C. Make inspections and surveys of insured property
D. Prepare an inventory after a loss Correct Ans - A
All of the following options are examples of insurable interest EXCEPT:
A. A person's interest in property she is buying on contract
B. A tenant's interest in improvements she has made to a leased building
C. A TV repairman's interest in a customer's TV which has been repaired but is
still on premises
D. An individuals' interest in property her parents will someday leave to her Correct Ans - D
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2) If a flood causes $1,000 in damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay?
A. $800
B. $0
C. $900 D. $1,000 Correct Ans - B
Which of the following sources may be used to provide property insurability information?
A. Police Records
B. Physical inspections
C. Checking account statements
D. Lie detector tests Correct Ans - B
Which of the following terms BEST describes continuous and repeated exposure to conditions that are neither expected nor intended by the insured?
A. Negligence
B. Liability
C. Accident
D. Occurrence Correct Ans - D
In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration a producer must secure from an applicant?
A. A signature on a premium finance agreement
B. Payment of six months' premium
C. Payment of twelve months' premium
D. Promise to pay premium Correct Ans - D
The National Flood Insurance Program provides coverage for losses caused by
all of the following occurrences EXCEPT:
A. Mudslides
B. Runoff from heavy rain
C. Overflow of tidal waters
D. Water-main breakage Correct Ans - D
The Personal Liability section of a Homeowners policy covers which of the following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured Correct Ans - D Which of the following statements is CORRECT about the Fair Credit Reporting Act?
It requires an insurer to send to an applicant a copy of the applicant's credit report
It requires an insurer to obtain a credit report on an applicant
It allows an insurer to obtain a credit report without the applicant's permission
It provides a method for an applicant to correct any incorrect information in the credit report Correct Ans - D
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause Correct Ans - A
A building adjacent to an insured's business is severely damaged by fire. Because of the nature of the damage to the adjoining property, the insured is denied access to the business by the fire department. If the insured's property is covered under a Business Income Coverage Form, the insurer will cover the loss of the earnings for a MAXIMUM of:
A. Thirty days
B. Sixty days
C. Three weeks
D. Six months Correct Ans - A
A sudden and unexpected event that is normally identifiable as to time and place is best described as:
A. An accident
B. A liability
C. Negligence
D. An occurrence Correct Ans - A
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire interior. Water used to extinguish the fire causes extensive damage to floors and furnishings. The water damage is best described as:
A. A time element loss
B. A consequential loss
