Adjuster Pro Practice Exam

Adjuster Pro Practice Exam The source of the adjusters authority - CORRECT ANSWER-In the context of insurance adjusting, who is the principal? Coverage is not negotiable - CORRECT ANSWER-When Nancy is pulling into her driveway, she accidentally hit the gas and plowed through her front wall. She tries to negotiate the claim with the adjuster, why is this not possible? True - CORRECT ANSWER-True or false: assuring a claimant a policy is covered without determining the cause of loss is considered improperly acting as a fiduciary agent? Civil disputes between parties - CORRECT ANSWER-Tort Law The principle of indemnity - CORRECT ANSWER-Melindas home sustained $6,500 in damages when Jared ran into it with his truck. Melinda received $6,599 from her insurance company and Jared also paid her $5,000. Melinda has now profited from this loss and is in violation of: A morale hazard - CORRECT ANSWER-Robby drives likes to race other drivers and isn't concerned with damages because of his good insurance. Robby's behavior is Public adjuster - CORRECT ANSWER-A fiduciary agent of behalf of the claimant Insured - CORRECT ANSWER-An individual or organization that pays premiums in exchange for financial protection Principle of indemnity - CORRECT ANSWER-Prevents an insured from making a profit Policy recission - CORRECT ANSWERPublic adjuster - CORRECT ANSWER-Hired by the claimant and paid commission Susan's business is not similar to her husbands - CORRECT ANSWER-Susan is a successful plastic surgeon and wants to purchase liability insurance. Her husband, a teacher, is part of a risk retention group and is quite happy with his insurance. Susan decides to apply to her husband's group, but her application is denied. Why is this? A loss - CORRECT ANSWER-Ninas home is located in a high crime neighborhood. One day, she comes home from work to find that her garage door had been vandalized and must be replaced. Nina's insurer pays her a $2,200 settlement for her claim. The insurer considers the settlement; Conditions - CORRECT ANSWER-Edna loses some of her property in a hailstorm. When an adjuster comes to investigate the loss, he gives an estimate that Edna thinks is far too low. As negotiations continue, neither Edna nor the adjuster will budge. Where in Edna's policy would you find the procedure to follow in this situation? Adjuster/claimant negotiations - CORRECT ANSWER-Easiest and least costly negotiation method The offered must have no more than one stipulation - CORRECT ANSWER-This does NOT make acceptance of an offer to contract legally enforceable Conditions - CORRECT ANSWER-Where would you find this statement in a policy? "The insured must make reasonable effort to protect the covered property from further damages" Wind - CORRECT ANSWER-Janes shed burns down in a tornado, when a tree falls on the roof and snaps a power line, which then ignited the structure. What is the proximate cause of loss? Conditions - CORRECT ANSWER-Where can you find the "duties of the insured after an occurrence"? The rental fees are an extra expense that resulted from the direct damage to the port - CORRECT ANSWER-After a hurricane severely damaged the Grayson Fishing Port, they must rent another dock to continue their commercial fishing operations until repairs can be Mande to their port. The Grayson Fishing Port is covered under a commercial insurance policy with Time Element coverage. What must they prove in order to be indemnified for the rental fees? Declarations - CORRECT ANSWER-Where can you find the policy period in a policy? Internal explosion - CORRECT ANSWER-In a basic form dwelling policy there are three covered perils. Fire and lightning are two of them, what is the third? Subrogation - CORRECT ANSWER-One night, sally sets fire to Jimmy's restaurant. Thankfully, jimmy has commercial property insurance, and it covers the damages to the restaurant. Which condition makes is possible for the insurance company to go after Sally to get back what they paid out to Jimmy? Coverage for slander and copyright - CORRECT ANSWER-Typically included in a BOP $10,000 (new property is automatically covered for 30 days at 25% of the coverage limit, up to $10,000) - CORRECT ANSWER-Eddie has a personal articles floater with a $60,000 limit for jewelry. On a weekend trip to London, he buys a new diamond-studded flask for $20,000, but his luggage gets stolen on the way home, before he has had a