RI Adjuster Exam Practice Exam
Questions 100% Well Answered.
Which of the following phrases BEST defines a hazard?
A. The uncertainty of a loss
B. The cause of a loss
C. An unexpected loss
D. A condition that increases the chance of a loss - Answer D
A family takes their 50-horsepower outboard motor boat to the lake on a trailer towed behind their
personal auto. The pleasure boat is appropriately covered for physical damage under which of the
following policies?
A. Dwelling
B. Homeowners
C. Boat owners
D. Yacht - Answer C
Which of the following perils is covered by Broad Form perils but not covered by the Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Sinkhole collapse - Answer B
G insures G's television repair shop under a Building and Personal Property Coverage Form with limits of
$100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to
the building and $20,000 in losses to the contents. G also has to pay $1,000 for debris removal. If the
policy has as deductible of $250, G will receive a MAXIMUM of which of the following amounts from the
insurer?
A. $29,750
B. $30,000
,C. $30,750
D. $31,000 - Answer C
Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form
(DP-1) is INCORRECT?
A. No act by the insured will jeopardize the mortgagee's rights
B. The mortgagee may file a Proof of Loss if the insured fails to do so
C. The mortgagee is entitled to receive prior notice of a policy's cancellation
D. The mortgagee may abandon the insured property to the insurer. - Answer D
A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be
found in which of the following sections of a Commercial Property policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - Answer B
1. Which of the following businesses would be eligible for a Business owner's policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop - Answer D
A primary obligation of an insurer is to:
A. Pay the claims covered under the policy
B. Provide a financial statement with each policy
C. Make inspections and surveys of insured property
D. Prepare an inventory after a loss - Answer A
,All of the following options are examples of insurable interest EXCEPT:
A. A person's interest in property she is buying on contract
B. A tenant's interest in improvements she has made to a leased building
C. A TV repairman's interest in a customer's TV which has been repaired but is still on premises
D. An individuals' interest in property her parents will someday leave to her - Answer D
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2) If a flood causes $1,000 in
damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay?
A. $800
B. $0
C. $900
D. $1,000 - Answer B
Which of the following sources may be used to provide property insurability information?
A. Police Records
B. Physical inspections
C. Checking account statements
D. Lie detector tests - Answer B
Which of the following terms BEST describes continuous and repeated exposure to conditions that are
neither expected nor intended by the insured?
A. Negligence
B. Liability
C. Accident
D. Occurrence - Answer D
In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration
a producer must secure from an applicant?
A. A signature on a premium finance agreement
B. Payment of six months' premium
, C. Payment of twelve months' premium
D. Promise to pay premium - Answer D
The National Flood Insurance Program provides coverage for losses caused by all of the following
occurrences EXCEPT:
A. Mudslides
B. Runoff from heavy rain
C. Overflow of tidal waters
D. Water-main breakage - Answer D
The Personal Liability section of a Homeowners policy covers which of the following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - Answer D
Which of the following statements is CORRECT about the Fair Credit Reporting Act?
It requires an insurer to send to an applicant a copy of the applicant's credit report
It requires an insurer to obtain a credit report on an applicant
It allows an insurer to obtain a credit report without the applicant's permission
It provides a method for an applicant to correct any incorrect information in the credit report - Answer
D
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause - Answer A
Questions 100% Well Answered.
Which of the following phrases BEST defines a hazard?
A. The uncertainty of a loss
B. The cause of a loss
C. An unexpected loss
D. A condition that increases the chance of a loss - Answer D
A family takes their 50-horsepower outboard motor boat to the lake on a trailer towed behind their
personal auto. The pleasure boat is appropriately covered for physical damage under which of the
following policies?
A. Dwelling
B. Homeowners
C. Boat owners
D. Yacht - Answer C
Which of the following perils is covered by Broad Form perils but not covered by the Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Sinkhole collapse - Answer B
G insures G's television repair shop under a Building and Personal Property Coverage Form with limits of
$100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to
the building and $20,000 in losses to the contents. G also has to pay $1,000 for debris removal. If the
policy has as deductible of $250, G will receive a MAXIMUM of which of the following amounts from the
insurer?
A. $29,750
B. $30,000
,C. $30,750
D. $31,000 - Answer C
Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form
(DP-1) is INCORRECT?
A. No act by the insured will jeopardize the mortgagee's rights
B. The mortgagee may file a Proof of Loss if the insured fails to do so
C. The mortgagee is entitled to receive prior notice of a policy's cancellation
D. The mortgagee may abandon the insured property to the insurer. - Answer D
A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be
found in which of the following sections of a Commercial Property policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - Answer B
1. Which of the following businesses would be eligible for a Business owner's policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop - Answer D
A primary obligation of an insurer is to:
A. Pay the claims covered under the policy
B. Provide a financial statement with each policy
C. Make inspections and surveys of insured property
D. Prepare an inventory after a loss - Answer A
,All of the following options are examples of insurable interest EXCEPT:
A. A person's interest in property she is buying on contract
B. A tenant's interest in improvements she has made to a leased building
C. A TV repairman's interest in a customer's TV which has been repaired but is still on premises
D. An individuals' interest in property her parents will someday leave to her - Answer D
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2) If a flood causes $1,000 in
damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay?
A. $800
B. $0
C. $900
D. $1,000 - Answer B
Which of the following sources may be used to provide property insurability information?
A. Police Records
B. Physical inspections
C. Checking account statements
D. Lie detector tests - Answer B
Which of the following terms BEST describes continuous and repeated exposure to conditions that are
neither expected nor intended by the insured?
A. Negligence
B. Liability
C. Accident
D. Occurrence - Answer D
In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration
a producer must secure from an applicant?
A. A signature on a premium finance agreement
B. Payment of six months' premium
, C. Payment of twelve months' premium
D. Promise to pay premium - Answer D
The National Flood Insurance Program provides coverage for losses caused by all of the following
occurrences EXCEPT:
A. Mudslides
B. Runoff from heavy rain
C. Overflow of tidal waters
D. Water-main breakage - Answer D
The Personal Liability section of a Homeowners policy covers which of the following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - Answer D
Which of the following statements is CORRECT about the Fair Credit Reporting Act?
It requires an insurer to send to an applicant a copy of the applicant's credit report
It requires an insurer to obtain a credit report on an applicant
It allows an insurer to obtain a credit report without the applicant's permission
It provides a method for an applicant to correct any incorrect information in the credit report - Answer
D
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause - Answer A
