Indiana Adjuster Practice Exam Questions with Answers

Greg plays trombone in his school band during football games. During a rally song in the stands one day, Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it down the bleachers, completely destroying it. Greg's insurance pays him $400 to replace the trombone, but then the opposing team's coach also offers to replace the instrument, at whatever the cost. So Greg orders a new $3,200 trombone and has the opposing team's athletic department absorb the cost. Which principle has Greg violated? The principle of indemnity Which of the following statements does NOT apply to the Standard Fire Policy? A. It is the basis for all homeowners policies. B. It pays actual cash value. C. It automatically covers wind and vandalism. D. It is a named peril policy. C. It automatically covers wind and vandalism. The Standard Fire Policy is also known by a nickname: The "___ " Policy. 165 Line Stan built a porch for his home three years ago at a cost of $10,000. The value of the porch has depreciated by $6,000, and it would cost $12,000 to replace it today. After Stan's porch burnt down during a BBQ today, how much would a Standard Fire Policy indemnify Stan for his porch? $6,000 (The Standard Fire Policy pays on an ACV basis. Recall from earlier in the course, that the formula for calculating ACV is Replacement Cost minus Depreciation. So, in this case: $12,000 - $6,000 = $6,000.) In an insurance policy, the summary of what the insurer will do in the event of a covered loss is called: the insuring agreement. If an adjuster needs to find clarification about what actually constitutes a collision, in which section of an insurance policy would she find that information? Definitions In which section of an insurance policy might you find the following statement? "Damage to insured property must be reported within 15 days of the damaging occurrence." Conditions All of the following pieces of information can be found in the Conditions section of an insurance policy, EXCEPT: A. anything the insured must do for coverage to remain in effect. B. what the insured must do in the event of a lawsuit. C. the insured's duties after a loss. D. causes of loss that are not covered. D. causes of loss that are not covered. Which of the following statements is true about an insurance policy? It relies on the utmost good faith of both the insured and the insurer. In a __________, only one party is legally obligated to perform. unilateral contract A reciprocal insurer is: an unincorporated organization of subscribers that operates through an attorney-in-fact to provide insurance benefits for its members.