MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit
him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued ABC
Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with a
General Aggregate of $750,000 and a per occurrence limit of $250,000, what is the
maximum that ABC's insurer will pay for Jerome's injuries? - CORRECT ANSWER
$250,000
Strict Liability: - CORRECT ANSWER holds a person liable for his actions
regardless of how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in
good time. Unfortunately, as Wendy is walking across the threshold of the new addition,
a floorboard gives way and Wendy falls into the crawl-space below, injuring her leg and
back. Which commercial general liability coverage could help cover the cost of Wendy's
injuries? - CORRECT ANSWER Completed Operations Liability
In which case would the insured be indemnified by her auto liability coverage? -
CORRECT ANSWER NOT: None; liability coverage never indemnifies the insured.
OR she causes property damage to her neighbor
Lucille owns her own woodworking business, building custom items such as dressers,
wooden trunks, and mantelpieces. A fire destroys her entire operation and Lucille files a
claim with her insurer. Which of the following would be covered under Coverage A of
,MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
the Building and Personal Property Coverage Form in her commercial property policy? -
CORRECT ANSWER A bandsaw permanently affixed to the floor
In which of these situations could a Mississippi insurer cancel a policy after 60 days with
sufficient notice? - CORRECT ANSWER The policyholder's son has his license
suspended during the policy period.
Bonnie's PAP includes Comprehensive coverage. Which of the following losses could
this coverage pay for? - CORRECT ANSWER Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car
into Sam's. Sam's own insurance company, ABC Insurance, immediately pays him
$5,000 for his injuries. Sam then ponders whether to file a $6,000 lawsuit against Nicole.
Why can't Sam sue Nicole for the full amount of his injuries? - CORRECT ANSWER
By accepting payment from ABC Insurance, Sam subrogated a portion of his rights
against Nicole to ABC Insurance.
In order to be a licensed adjuster, a person must be at least ____ years old. -
CORRECT ANSWER 18
Grant works at ABC Convenience. One day, a man pulls up in an expensive car and pays
cash for his gas with a hundred dollar bill. Grant accepts the bill without checking its
validity. When Grant's manager checks the bill later, he discovers it is a fake. Which
commercial crime coverage could protect ABC Convenience from financial loss
,MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
associated with accepting the fake hundred dollar bill? - CORRECT ANSWER
Money orders and counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an alternative to the
state workers' comp fund are called: - CORRECT ANSWER competitive
The Employee Retirement Income Security Act (ERISA): - CORRECT ANSWER
requires that every fiduciary of an employee benefit plan and every person who handles
funds or other property of those plans must be bonded
Bill lives in Mississippi and has the minimum auto liability coverage required for the
state. He causes an accident that results in $35,000 in property damage and $50,000 in
bodily injury to another person. How much will Bill have to pay out of pocket for this
accident? - CORRECT ANSWER $10,000 in property damage and $25,000 in
medical expense
Which of the following statements regarding scheduled fidelity bonds is FALSE? -
CORRECT ANSWER All employees are bonded for the same aggregate amount.
D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash
into a telephone pole. Which part of his Auto Insurance Policy will help him pay for the
repairs to his car? - CORRECT ANSWER Collision coverage
If an insurer decides to cancel a personal auto policy (for a reason other than non-
payment of premiums) after the policy has been in effect for 60 days, the insurer must
, MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
provide written notice to the insured __________ in advance. - CORRECT ANSWER
30 days
Acme Construction, Inc. has one contractor and one receptionist. The contractor makes
$25/hr, and the receptionist makes $10/hr. The contractor worked exactly 8 hours in
2010, so he made $200. The receptionist worked 10 hours, so she made $100. Therefore,
Acme's entire payroll for 2010 was $300. Assume that, for every $100 of payroll, the WC
rate for contractors is $50 and the rate for receptionists is $5. How much did Acme owe
in WC premiums? - CORRECT ANSWER $105
During a routine tooth extraction, Dr. Dentem administers too much laughing gas and
causes brain damage to his client. The family sues Dr. Dentem for failing to follow
procedure. Which kind of insurance would cover the cost of the lawsuit? - CORRECT
ANSWER Malpractice insurance
Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks
down Sally's back door to get into her kitchen for a snack. When Sally comes home to
find the damage, she files a claim with her insurance company. Will the damage to Sally's
home be covered, and why or why not? - CORRECT ANSWER Yes. The HO-3 is
an open peril policy, without exclusion for wildlife.
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit
him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued ABC
Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with a
General Aggregate of $750,000 and a per occurrence limit of $250,000, what is the
maximum that ABC's insurer will pay for Jerome's injuries? - CORRECT ANSWER
$250,000
Strict Liability: - CORRECT ANSWER holds a person liable for his actions
regardless of how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in
good time. Unfortunately, as Wendy is walking across the threshold of the new addition,
a floorboard gives way and Wendy falls into the crawl-space below, injuring her leg and
back. Which commercial general liability coverage could help cover the cost of Wendy's
injuries? - CORRECT ANSWER Completed Operations Liability
In which case would the insured be indemnified by her auto liability coverage? -
CORRECT ANSWER NOT: None; liability coverage never indemnifies the insured.
OR she causes property damage to her neighbor
Lucille owns her own woodworking business, building custom items such as dressers,
wooden trunks, and mantelpieces. A fire destroys her entire operation and Lucille files a
claim with her insurer. Which of the following would be covered under Coverage A of
,MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
the Building and Personal Property Coverage Form in her commercial property policy? -
CORRECT ANSWER A bandsaw permanently affixed to the floor
In which of these situations could a Mississippi insurer cancel a policy after 60 days with
sufficient notice? - CORRECT ANSWER The policyholder's son has his license
suspended during the policy period.
Bonnie's PAP includes Comprehensive coverage. Which of the following losses could
this coverage pay for? - CORRECT ANSWER Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car
into Sam's. Sam's own insurance company, ABC Insurance, immediately pays him
$5,000 for his injuries. Sam then ponders whether to file a $6,000 lawsuit against Nicole.
Why can't Sam sue Nicole for the full amount of his injuries? - CORRECT ANSWER
By accepting payment from ABC Insurance, Sam subrogated a portion of his rights
against Nicole to ABC Insurance.
In order to be a licensed adjuster, a person must be at least ____ years old. -
CORRECT ANSWER 18
Grant works at ABC Convenience. One day, a man pulls up in an expensive car and pays
cash for his gas with a hundred dollar bill. Grant accepts the bill without checking its
validity. When Grant's manager checks the bill later, he discovers it is a fake. Which
commercial crime coverage could protect ABC Convenience from financial loss
,MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
associated with accepting the fake hundred dollar bill? - CORRECT ANSWER
Money orders and counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an alternative to the
state workers' comp fund are called: - CORRECT ANSWER competitive
The Employee Retirement Income Security Act (ERISA): - CORRECT ANSWER
requires that every fiduciary of an employee benefit plan and every person who handles
funds or other property of those plans must be bonded
Bill lives in Mississippi and has the minimum auto liability coverage required for the
state. He causes an accident that results in $35,000 in property damage and $50,000 in
bodily injury to another person. How much will Bill have to pay out of pocket for this
accident? - CORRECT ANSWER $10,000 in property damage and $25,000 in
medical expense
Which of the following statements regarding scheduled fidelity bonds is FALSE? -
CORRECT ANSWER All employees are bonded for the same aggregate amount.
D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash
into a telephone pole. Which part of his Auto Insurance Policy will help him pay for the
repairs to his car? - CORRECT ANSWER Collision coverage
If an insurer decides to cancel a personal auto policy (for a reason other than non-
payment of premiums) after the policy has been in effect for 60 days, the insurer must
, MS ADJUSTER LICENSE EXAM 2024 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
provide written notice to the insured __________ in advance. - CORRECT ANSWER
30 days
Acme Construction, Inc. has one contractor and one receptionist. The contractor makes
$25/hr, and the receptionist makes $10/hr. The contractor worked exactly 8 hours in
2010, so he made $200. The receptionist worked 10 hours, so she made $100. Therefore,
Acme's entire payroll for 2010 was $300. Assume that, for every $100 of payroll, the WC
rate for contractors is $50 and the rate for receptionists is $5. How much did Acme owe
in WC premiums? - CORRECT ANSWER $105
During a routine tooth extraction, Dr. Dentem administers too much laughing gas and
causes brain damage to his client. The family sues Dr. Dentem for failing to follow
procedure. Which kind of insurance would cover the cost of the lawsuit? - CORRECT
ANSWER Malpractice insurance
Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks
down Sally's back door to get into her kitchen for a snack. When Sally comes home to
find the damage, she files a claim with her insurance company. Will the damage to Sally's
home be covered, and why or why not? - CORRECT ANSWER Yes. The HO-3 is
an open peril policy, without exclusion for wildlife.
