CHALLENGING CHAPTERS: ALABAMA P&C, WC,
& CROP ADJUSTER PRE-LICENSING QUESTIONS
WITH 100% ACCURATE ANSWERS
ALABAMA ADJUSTER PRE-LICENSING
ALABAMA ADJUSTER PRE-
STUDYGLOBAL 5/16/25
LICENSING
, XYZ Computer's production building for circuit boards is struck by lightning, which results in a fire that
burns down the entire facility. XYZ Computer cannot continue the production of computers until the
facility is rebuilt. Which insurance coverage might indemnify XYZ Computer for lost revenue until a new
facility is built? - Accurate answers Business Interruption
Which of the following statements is TRUE about Coverage C under a DP-2 or DP-3? - Accurate
answers Rowboats and canoes are covered, but only while on the premises.
Barbara is preparing to negotiate an auto claim on behalf of XYZ Insurance. She knows the
circumstances of the loss and has completed the investigation and evaluation. What other piece of
information must Barbara know before entering into negotiation with the claimant? - Accurate
answers The maximum amount XYZ Insurance will pay for the claim
Under which circumstances may an insurer cancel a policy with sufficient notice? - Accurate answers
If the policyholder misrepresents facts to obtain a policy
When Jane is involved in an accident in Alabama, she immediately calls her insurer and files a claim. Her
insurer is required by law to do all of the following EXCEPT: - Accurate answers refrain from paying
or denying the claim until the claimant submits proof of loss forms.
HIPAA was enacted by the US Congress in _________. - Accurate answers 1996
In Alabama, the employers of which of the following employees do not need to purchase Workers'
Compensation insurance for them? - Accurate answers Farm laborers
A lightning strike sparks a fire on the ground of Blake's property, causing damage to several trees and
shrubs in the process. Assuming Blake carries a $120,000 DP-2 on his home with a Trees, Shrubs, and
Other Plants endorsement, what is the maximum Blake can receive for his 15 damaged plants? -
Accurate answers $6,000- Lightning is a covered peril and damaged plants are covered at $500 per
plant up to 5% of Coverage A limit
All of the following people are exempt from adjuster licensing in Alabama, EXCEPT: - Accurate answers
out-of-state adjusters who are licensed in their home state.
An overhead projector is taken to a conference room at a local hotel for a week. Sometime during the
week, the projector falls off its stand and is destroyed. Assuming it is a covered loss, what commercial
property coverage might cover the projector? - Accurate answers Property Off-Premises
When Sally slips and falls at XYZ Furniture, she injures her back and incurs $145,000 in covered medical
expenses. Assuming XYZ Furniture carries a CGL policy with a General Aggregate of $400,000, and a Per
Occurrence limit of $100,000, what will the new limits be after paying this claim? - Accurate answers
General Aggregate: $300,000; Per Occurrence: $100,000
Lori's property was damaged in a recent flood. The damages to her home and detached garage came to
$80,000 and $15,000, respectively. Lori has a Dwelling Form flood policy with $100,000 limit. How much
& CROP ADJUSTER PRE-LICENSING QUESTIONS
WITH 100% ACCURATE ANSWERS
ALABAMA ADJUSTER PRE-LICENSING
ALABAMA ADJUSTER PRE-
STUDYGLOBAL 5/16/25
LICENSING
, XYZ Computer's production building for circuit boards is struck by lightning, which results in a fire that
burns down the entire facility. XYZ Computer cannot continue the production of computers until the
facility is rebuilt. Which insurance coverage might indemnify XYZ Computer for lost revenue until a new
facility is built? - Accurate answers Business Interruption
Which of the following statements is TRUE about Coverage C under a DP-2 or DP-3? - Accurate
answers Rowboats and canoes are covered, but only while on the premises.
Barbara is preparing to negotiate an auto claim on behalf of XYZ Insurance. She knows the
circumstances of the loss and has completed the investigation and evaluation. What other piece of
information must Barbara know before entering into negotiation with the claimant? - Accurate
answers The maximum amount XYZ Insurance will pay for the claim
Under which circumstances may an insurer cancel a policy with sufficient notice? - Accurate answers
If the policyholder misrepresents facts to obtain a policy
When Jane is involved in an accident in Alabama, she immediately calls her insurer and files a claim. Her
insurer is required by law to do all of the following EXCEPT: - Accurate answers refrain from paying
or denying the claim until the claimant submits proof of loss forms.
HIPAA was enacted by the US Congress in _________. - Accurate answers 1996
In Alabama, the employers of which of the following employees do not need to purchase Workers'
Compensation insurance for them? - Accurate answers Farm laborers
A lightning strike sparks a fire on the ground of Blake's property, causing damage to several trees and
shrubs in the process. Assuming Blake carries a $120,000 DP-2 on his home with a Trees, Shrubs, and
Other Plants endorsement, what is the maximum Blake can receive for his 15 damaged plants? -
Accurate answers $6,000- Lightning is a covered peril and damaged plants are covered at $500 per
plant up to 5% of Coverage A limit
All of the following people are exempt from adjuster licensing in Alabama, EXCEPT: - Accurate answers
out-of-state adjusters who are licensed in their home state.
An overhead projector is taken to a conference room at a local hotel for a week. Sometime during the
week, the projector falls off its stand and is destroyed. Assuming it is a covered loss, what commercial
property coverage might cover the projector? - Accurate answers Property Off-Premises
When Sally slips and falls at XYZ Furniture, she injures her back and incurs $145,000 in covered medical
expenses. Assuming XYZ Furniture carries a CGL policy with a General Aggregate of $400,000, and a Per
Occurrence limit of $100,000, what will the new limits be after paying this claim? - Accurate answers
General Aggregate: $300,000; Per Occurrence: $100,000
Lori's property was damaged in a recent flood. The damages to her home and detached garage came to
$80,000 and $15,000, respectively. Lori has a Dwelling Form flood policy with $100,000 limit. How much
