6-20 Claims Adjuster QUESTIONS &
ANSWERS(RATED A)
The following are basic characteristics of a property or liability insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion - ANSWER C. Loss Settlement Contract
The Insurers responsibility to pay for a property loss may be conditioned on the insured having used
reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer
proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - ANSWER A. Conditional Contract
A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the
subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - ANSWER D. Insurable Interest
, Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump
damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above - ANSWER B. Abandonment
A policy condition, either based on information in the insured's application or inserted by the insurer, is
defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above - ANSWER A. Warranty
If financial responsibility doesn't exist at the time of an accident, which of the following things must
happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future responsibility for future accidents
C. Both A&B
D. None of the Above - ANSWER C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his renewal
date he receives notice of the company's intention to non-renew because of 3 negligent losses and 1
speeding ticket in the past 3 years. His driving record and claim history make this a valid non-renewal.
A. True
B. False - ANSWER B. False
, Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property - ANSWER A. 10,000
While driving his own car, Bill is involved in an accident that is the fault of the other driver, Mike. He
looks to collect for his injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
D. His PIP, his Med Pay, His UM, Mike's Liability. - ANSWER C. His PIP, his Med Pay, Mike's Liability, his
UM.
eremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he expect his PIP
coverage to pay toward his medical bills that total $3,000?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - ANSWER A. $1,600
Robert is driving his car in Florida when he is hit by an at-fault driver. Robert has $10,000 in medical bills,
carries Basic PIP with a $1000 deductible and has no Med Pay. How much will the at-fault driver have to
pay for Robert's injuries?
A. $2800
, B Nothing--Robert's PIP is primary
C. $10,000
D. $1,000 - ANSWER A. $2800
Frank has a not-at-fault accident, he has basic PIP, no deductible and Med pay of $5,000. How much will
his Med Pay contribute to medical bills of $15,000?
A. $15,000
B. $5,000
C. $3,000
D. $0, Frank is not-at-fault - ANSWER B. $5,000
Jane and Sue are riding with Jim in Jim's car. All 3 are Florida Residents who own cars and carry Basic PIP
with no deductible. Sue has $12,000 in Medical Bills. Whose coverage will pay and how much will it pay?
A. Sue's PIP will pay $12,000
B. Sue must first collect from any med pay available
C. Sue's PIP will pay $9600
D. Jim's PIP will pay $10,000 - ANSWER C. Sue's PIP will pay $9600
As to required proof for future accidents by purchase of auto liability insurance, the insurer must make a
filing (Form SR-22) certifying that coverage is in effect, and this certification must remain on file for
__________ years:
A. 1
B. 3
C. 4
D. 2 - ANSWER B. 3
ANSWERS(RATED A)
The following are basic characteristics of a property or liability insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss Settlement Contract
D. Contract of Adhesion - ANSWER C. Loss Settlement Contract
The Insurers responsibility to pay for a property loss may be conditioned on the insured having used
reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer
proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - ANSWER A. Conditional Contract
A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the
subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - ANSWER D. Insurable Interest
, Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump
damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above - ANSWER B. Abandonment
A policy condition, either based on information in the insured's application or inserted by the insurer, is
defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above - ANSWER A. Warranty
If financial responsibility doesn't exist at the time of an accident, which of the following things must
happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future responsibility for future accidents
C. Both A&B
D. None of the Above - ANSWER C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his renewal
date he receives notice of the company's intention to non-renew because of 3 negligent losses and 1
speeding ticket in the past 3 years. His driving record and claim history make this a valid non-renewal.
A. True
B. False - ANSWER B. False
, Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property - ANSWER A. 10,000
While driving his own car, Bill is involved in an accident that is the fault of the other driver, Mike. He
looks to collect for his injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
D. His PIP, his Med Pay, His UM, Mike's Liability. - ANSWER C. His PIP, his Med Pay, Mike's Liability, his
UM.
eremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he expect his PIP
coverage to pay toward his medical bills that total $3,000?
A. $1,600
B. $1,000
C. $2,400
D. $3,000 - ANSWER A. $1,600
Robert is driving his car in Florida when he is hit by an at-fault driver. Robert has $10,000 in medical bills,
carries Basic PIP with a $1000 deductible and has no Med Pay. How much will the at-fault driver have to
pay for Robert's injuries?
A. $2800
, B Nothing--Robert's PIP is primary
C. $10,000
D. $1,000 - ANSWER A. $2800
Frank has a not-at-fault accident, he has basic PIP, no deductible and Med pay of $5,000. How much will
his Med Pay contribute to medical bills of $15,000?
A. $15,000
B. $5,000
C. $3,000
D. $0, Frank is not-at-fault - ANSWER B. $5,000
Jane and Sue are riding with Jim in Jim's car. All 3 are Florida Residents who own cars and carry Basic PIP
with no deductible. Sue has $12,000 in Medical Bills. Whose coverage will pay and how much will it pay?
A. Sue's PIP will pay $12,000
B. Sue must first collect from any med pay available
C. Sue's PIP will pay $9600
D. Jim's PIP will pay $10,000 - ANSWER C. Sue's PIP will pay $9600
As to required proof for future accidents by purchase of auto liability insurance, the insurer must make a
filing (Form SR-22) certifying that coverage is in effect, and this certification must remain on file for
__________ years:
A. 1
B. 3
C. 4
D. 2 - ANSWER B. 3
