Assignment 12 - Adjusting Property and
Liability Claims Exam Questions with
correct Answers 2025/2026 100% Verified.
When determining the dollar amount of the loss, what valuation method is usually calculated as
replacement cost minus depreciation? - ANS-Actual cash value (ACV)
All of the following are insured's' duties after a loss, EXCEPT - ANS-Investigating salvage
options
Which one of the following statements is true? - ANS-Intentionally set fires are arson, whether
committed by the insured or not
Which one of the following statements is correct with respect to establishing actual cash value
(ACV) of damaged property? - ANS-Adjusters often rely on published guides to determine
depreciation and individual insurers create such guides based on their experience
Anna has a homeowners policy with RMI Insurance Company. Her full-length mink coat is
covered under the policy on a stated amount (value) basis for its appraised value of $3,500.
After retrieving her coat from the coat check at a restaurant one evening, Anna discovers that
someone has slashed the lining in a number of places and has smeared what appears to be nail
polish on the fur. The adjuster handling the claim at RMI determines that the coat is damaged
beyond cleaning and repair. He also determines that since the coat was originally appraised, it
has suffered significant moth damage and estimates its current value at $1,500. Assuming no
exclusions apply to this claim, which one of the following describes how Anna's loss would be
settled? - ANS-The adjuster would pay the actual cash value of the coat at the time of the loss,
or $1,500
Fixtures are personal property that have become attached to and part of real property. Which
one of the following is correct with respect to determining whether damaged "fixtures" are real or
personal property? - ANS-Custom items particularly adapted to the real property, such as
custom draperies, are generally considered to be real property
A prerequisite to asserting a claim under a property insurance policy is which one of the
following types of interest in the policy? - ANS-Insurable
, Which one of the following terms is used to identify the property ownership of a husband and
wife? - ANS-Tenancy by entirety
Which one of the following is a procedure that claim representatives must follow to settle a
claim? - ANS-Documenting the cause and amount of the loss
Which one of the following items' property value would be most dramatically and suddenly
affected by depreciation? - ANS-Computer system
A property claim adjuster must answer a series of questions as part of the claim adjusting
process. All of the following questions can be answered by consulting the policy and applying
policy language to the given situation, EXCEPT - ANS-What is the dollar amount of the loss?
Which one of the following is a property gradual cause of loss? - ANS-Latent defect
Which one of the following statements is true concerning personal property? - ANS-Fixtures are
personal property that have become attached to and part of real property
Which one of the following is a main cause of depreciation? - ANS-Obsolescence
Which method of valuing property is typically used for jewelry or furs, when a sales receipt or
appraisal is available for the property in question? - ANS-Stated value
All of the following are questions adjusters ask to determine whether fixtures are real property,
EXCEPT - ANS-How long has the fixture been on the property?
When two or more individuals who are not spouses have a complete, indivisible interest in
property, that type of ownership is referred to as - ANS-Joint ownership
Which one of the following statements is true concerning an insured's duty after a property loss?
- ANS-The insured is required to protect the property from further loss by making emergency
repairs
A direct marketing company sells its merchandise on the Internet and relies on a large number
of owned computers to process its orders. One evening, a fire destroys the office and all of its
personal property. The marketing company insures the office personal property on an actual
cash value basis. Given this information, which one of the following is the major factor in
determining depreciation with this loss? - ANS-Obsolescence
Which powerful adjustment tool is written, signed, and sworn to by the insured, yet not often
used by property adjusters? - ANS-Proof of loss
Liability Claims Exam Questions with
correct Answers 2025/2026 100% Verified.
When determining the dollar amount of the loss, what valuation method is usually calculated as
replacement cost minus depreciation? - ANS-Actual cash value (ACV)
All of the following are insured's' duties after a loss, EXCEPT - ANS-Investigating salvage
options
Which one of the following statements is true? - ANS-Intentionally set fires are arson, whether
committed by the insured or not
Which one of the following statements is correct with respect to establishing actual cash value
(ACV) of damaged property? - ANS-Adjusters often rely on published guides to determine
depreciation and individual insurers create such guides based on their experience
Anna has a homeowners policy with RMI Insurance Company. Her full-length mink coat is
covered under the policy on a stated amount (value) basis for its appraised value of $3,500.
After retrieving her coat from the coat check at a restaurant one evening, Anna discovers that
someone has slashed the lining in a number of places and has smeared what appears to be nail
polish on the fur. The adjuster handling the claim at RMI determines that the coat is damaged
beyond cleaning and repair. He also determines that since the coat was originally appraised, it
has suffered significant moth damage and estimates its current value at $1,500. Assuming no
exclusions apply to this claim, which one of the following describes how Anna's loss would be
settled? - ANS-The adjuster would pay the actual cash value of the coat at the time of the loss,
or $1,500
Fixtures are personal property that have become attached to and part of real property. Which
one of the following is correct with respect to determining whether damaged "fixtures" are real or
personal property? - ANS-Custom items particularly adapted to the real property, such as
custom draperies, are generally considered to be real property
A prerequisite to asserting a claim under a property insurance policy is which one of the
following types of interest in the policy? - ANS-Insurable
, Which one of the following terms is used to identify the property ownership of a husband and
wife? - ANS-Tenancy by entirety
Which one of the following is a procedure that claim representatives must follow to settle a
claim? - ANS-Documenting the cause and amount of the loss
Which one of the following items' property value would be most dramatically and suddenly
affected by depreciation? - ANS-Computer system
A property claim adjuster must answer a series of questions as part of the claim adjusting
process. All of the following questions can be answered by consulting the policy and applying
policy language to the given situation, EXCEPT - ANS-What is the dollar amount of the loss?
Which one of the following is a property gradual cause of loss? - ANS-Latent defect
Which one of the following statements is true concerning personal property? - ANS-Fixtures are
personal property that have become attached to and part of real property
Which one of the following is a main cause of depreciation? - ANS-Obsolescence
Which method of valuing property is typically used for jewelry or furs, when a sales receipt or
appraisal is available for the property in question? - ANS-Stated value
All of the following are questions adjusters ask to determine whether fixtures are real property,
EXCEPT - ANS-How long has the fixture been on the property?
When two or more individuals who are not spouses have a complete, indivisible interest in
property, that type of ownership is referred to as - ANS-Joint ownership
Which one of the following statements is true concerning an insured's duty after a property loss?
- ANS-The insured is required to protect the property from further loss by making emergency
repairs
A direct marketing company sells its merchandise on the Internet and relies on a large number
of owned computers to process its orders. One evening, a fire destroys the office and all of its
personal property. The marketing company insures the office personal property on an actual
cash value basis. Given this information, which one of the following is the major factor in
determining depreciation with this loss? - ANS-Obsolescence
Which powerful adjustment tool is written, signed, and sworn to by the insured, yet not often
used by property adjusters? - ANS-Proof of loss
