NEW HAMPSHIRE ADJUSTER REAL EXAM 150 QUESTIONS AND
CORRECT ANSWERS 2024-2025 LATEST VERSION//ALREADY
GRADED A+
Which of the following best defines "insured"?
A. Transfer of the risk of financial loss from one party to another
B. A legally binding contract in which the insurance company agrees to pay for specified losses in
exchange for premiums
C. An individual or organization that pays premiums in exchange for financial protection
D. A company, group, or government agency offering financial protection
C. An individual or organization that pays premiums in exchange for financial protection
What are the four requirements of a legally binding contract?
A. Agreement, consideration, character, signatures
B. Authority, character, competent parties, legal purpose
C. Authority, consideration, signatures, legal purpose
D. Agreement, consideration, competent parties, legal purpose
D. Agreement, consideration, competent parties, legal purpose
Darnell is applying for auto insurance with his agent. Currently, he only wants to get a minimal amount
of coverage to keep his premiums as low as possible, so he decides not to include uninsured motorist
coverage on his policy. His agent has him sign a document giving up his right to this coverage. What is
this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiver
B. An express waiver
An economic device used to protect against the risk of realizing unforeseen and extraordinary financial
loss is called:
A. risk avoidance
B. insurance
C. indemnification
D. subrogation
B. insurance
,tom purchases a new car from his local car dealer. he also decides to get insurance coverage that will
pay to repair the car if he were to get into an accident. this is because tom wants to protect:
A. his own financial interest in the car
B. other drivers on the road
C. his insurance company's profit margins
D. any passengers who ride in his car
A. his own financial interest in the car
Skip's Convenience Store must agree to install and maintain an emergency shutoff system for its gas
pumps in order to qualify for insurance coverage. Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the policy
B. This requirement is a warranty found in the conditions section of the policy
C. This requirement is a warranty found in the declarations section of the policy
D. This requirement is a representation found in the declarations section of the policy
B. This requirement is a warranty found in the conditions section of the policy
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the
policyholder____.
A. covered property; a risk pool
B. premium payments; peace of mind
C. peace of mind; risk
D. a surety; premium payments
B. premium payments; peace of mind
When an insured signs a document acknowledging that he gives up his right to a certain coverage, such
as uninsured motorist coverage in an auto policy, this is called:
A. an express waiver
B. an implied waiver
C. a warranty
D. an estoppel
A. an express waiver
Sandra rear-ended Randy's car when he stopped quickly for a yellow light that she was sure they were
both going to make. The damage was minor, but Sandra was worried her premiums would increase if
the accident was reported, so she gave Randy $500 in an effort to keep it just between the two of them.
However, Randy filed the claim with his insurance company and received a settlement check for $750.
What has Randy violated?
A. The principle of insurable interest
,B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization
C. The principle of indemnity
Scott is visiting his insurance agent's office and applying for auto insurance on his new car. The auto
policy that the agent drafts will be based on Scott's ________.
A. warranties
B. promises
C. subrogation
D. representations
D. representations
Which of the following statements about insurable interest is FALSE?
A. Dean has insurable interest in the city's power transformer that supplies power to the homes on his
street because damage to the transformer would leave Dean without power.
B. Mark has insurable interest in the company that he co-owns with his partner, Aaron.
C. Mary has insurable interest in Barry's life because Barry's death would cause Mary economic
hardship.
D. The bank has insurable interest in Wilson's home, for which it holds the mortgage.
A. Dean has insurable interest in the city's power transformer that supplies power to the homes on his
street because damage to the transformer would leave Dean without power.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would cost $29,600 to
replace it today. The vehicle has an annual depreciation of $1,200. Darren loses control while driving too
fast around a bend in the road and flips his vehicle, totaling it. Assuming Darren's auto insurance policy
pays ACV, how much can he expect to receive in indemnification for this claim?
ACV= Replacement Value-Total Depreciation
$29,600-($1,200x5yrs)
A. $29,600
B. $23,600
C. $22,500
D. $27,300
B. $23,600
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. This is because:
, A. Susan's business is not similar to that of her husband's
B. Susan has not owned her own business for more than two years
C. Surgeons cannot be members of a risk retention
D. Risk retention groups do not typically provide liability insurance
A. Susan's business is not similar to that of her husband's
Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house was struck by lightning
and the current fried her TV. The TV depreciates at $400 per year and a similar TV costs $1,200 today.
Assuming Roxanne's homeowners policy has a replacement cost endorsement for personal property,
how much can she expect to receive in indemnification for her damaged TV?
Replacement Cost=
Current Cost-[Original Purchase Cost-(Total Depreciation]
$1,200-[$2,400-($400x4yrs)]
A. $2,400
B. $200
C. $600
D. $1,200
B. $200
It is important to use the correct units of measurement when documenting damage to a structure in an
estimate. Which of the following is TRUE with regards to units of measure?
A. Siding is measured in squares; trim is measured in linear feet
B. Siding is measured in linear feet; trim is measure in square feet
C. Both siding and trim are measured in square feet
D. Both siding and trim are measured in linear feet
A. Siding is measured in squares; trim is measured in linear feet
A hailstorm moves over Erin's restaurant. Large hailstorms break through a skylight and water pours in,
damaging the flooring in the restaurant. Additionally, the electrical system shorts out and Erin has to
close for three days. The hail would be considered:
A. a direct loss
B. an indirect loss
C. the physical hazard
D. the proximate cause of loss
D. the proximate cause of loss
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo patron. In
court, the injured patron's lawyer could invoke the doctrine of:
CORRECT ANSWERS 2024-2025 LATEST VERSION//ALREADY
GRADED A+
Which of the following best defines "insured"?
A. Transfer of the risk of financial loss from one party to another
B. A legally binding contract in which the insurance company agrees to pay for specified losses in
exchange for premiums
C. An individual or organization that pays premiums in exchange for financial protection
D. A company, group, or government agency offering financial protection
C. An individual or organization that pays premiums in exchange for financial protection
What are the four requirements of a legally binding contract?
A. Agreement, consideration, character, signatures
B. Authority, character, competent parties, legal purpose
C. Authority, consideration, signatures, legal purpose
D. Agreement, consideration, competent parties, legal purpose
D. Agreement, consideration, competent parties, legal purpose
Darnell is applying for auto insurance with his agent. Currently, he only wants to get a minimal amount
of coverage to keep his premiums as low as possible, so he decides not to include uninsured motorist
coverage on his policy. His agent has him sign a document giving up his right to this coverage. What is
this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiver
B. An express waiver
An economic device used to protect against the risk of realizing unforeseen and extraordinary financial
loss is called:
A. risk avoidance
B. insurance
C. indemnification
D. subrogation
B. insurance
,tom purchases a new car from his local car dealer. he also decides to get insurance coverage that will
pay to repair the car if he were to get into an accident. this is because tom wants to protect:
A. his own financial interest in the car
B. other drivers on the road
C. his insurance company's profit margins
D. any passengers who ride in his car
A. his own financial interest in the car
Skip's Convenience Store must agree to install and maintain an emergency shutoff system for its gas
pumps in order to qualify for insurance coverage. Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the policy
B. This requirement is a warranty found in the conditions section of the policy
C. This requirement is a warranty found in the declarations section of the policy
D. This requirement is a representation found in the declarations section of the policy
B. This requirement is a warranty found in the conditions section of the policy
In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the
policyholder____.
A. covered property; a risk pool
B. premium payments; peace of mind
C. peace of mind; risk
D. a surety; premium payments
B. premium payments; peace of mind
When an insured signs a document acknowledging that he gives up his right to a certain coverage, such
as uninsured motorist coverage in an auto policy, this is called:
A. an express waiver
B. an implied waiver
C. a warranty
D. an estoppel
A. an express waiver
Sandra rear-ended Randy's car when he stopped quickly for a yellow light that she was sure they were
both going to make. The damage was minor, but Sandra was worried her premiums would increase if
the accident was reported, so she gave Randy $500 in an effort to keep it just between the two of them.
However, Randy filed the claim with his insurance company and received a settlement check for $750.
What has Randy violated?
A. The principle of insurable interest
,B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization
C. The principle of indemnity
Scott is visiting his insurance agent's office and applying for auto insurance on his new car. The auto
policy that the agent drafts will be based on Scott's ________.
A. warranties
B. promises
C. subrogation
D. representations
D. representations
Which of the following statements about insurable interest is FALSE?
A. Dean has insurable interest in the city's power transformer that supplies power to the homes on his
street because damage to the transformer would leave Dean without power.
B. Mark has insurable interest in the company that he co-owns with his partner, Aaron.
C. Mary has insurable interest in Barry's life because Barry's death would cause Mary economic
hardship.
D. The bank has insurable interest in Wilson's home, for which it holds the mortgage.
A. Dean has insurable interest in the city's power transformer that supplies power to the homes on his
street because damage to the transformer would leave Dean without power.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would cost $29,600 to
replace it today. The vehicle has an annual depreciation of $1,200. Darren loses control while driving too
fast around a bend in the road and flips his vehicle, totaling it. Assuming Darren's auto insurance policy
pays ACV, how much can he expect to receive in indemnification for this claim?
ACV= Replacement Value-Total Depreciation
$29,600-($1,200x5yrs)
A. $29,600
B. $23,600
C. $22,500
D. $27,300
B. $23,600
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. This is because:
, A. Susan's business is not similar to that of her husband's
B. Susan has not owned her own business for more than two years
C. Surgeons cannot be members of a risk retention
D. Risk retention groups do not typically provide liability insurance
A. Susan's business is not similar to that of her husband's
Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house was struck by lightning
and the current fried her TV. The TV depreciates at $400 per year and a similar TV costs $1,200 today.
Assuming Roxanne's homeowners policy has a replacement cost endorsement for personal property,
how much can she expect to receive in indemnification for her damaged TV?
Replacement Cost=
Current Cost-[Original Purchase Cost-(Total Depreciation]
$1,200-[$2,400-($400x4yrs)]
A. $2,400
B. $200
C. $600
D. $1,200
B. $200
It is important to use the correct units of measurement when documenting damage to a structure in an
estimate. Which of the following is TRUE with regards to units of measure?
A. Siding is measured in squares; trim is measured in linear feet
B. Siding is measured in linear feet; trim is measure in square feet
C. Both siding and trim are measured in square feet
D. Both siding and trim are measured in linear feet
A. Siding is measured in squares; trim is measured in linear feet
A hailstorm moves over Erin's restaurant. Large hailstorms break through a skylight and water pours in,
damaging the flooring in the restaurant. Additionally, the electrical system shorts out and Erin has to
close for three days. The hail would be considered:
A. a direct loss
B. an indirect loss
C. the physical hazard
D. the proximate cause of loss
D. the proximate cause of loss
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo patron. In
court, the injured patron's lawyer could invoke the doctrine of:
