CONNECTICUT ALL-LINES EXCEPT WORKERS COMP
ADJUSTER LICENSING COURSE
Each of the following people would be an insured for auto medical payments coverage
under Bob Miller's business auto policy, EXCEPT
a. Bob Miller (the named insured), struck by an auto while walking across the street.
The auto was not a covered auto.
b. Mel Carpenter, Bob's neighbor, occupying a covered auto.
c. Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto.
Frank lives with his mother, who is divorced from Bob.
d. Mary Thomas, Bob's ex-wife, occupying a covered auto. - Answers -C; Frank
Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank
lives with his mother, who is divorced from Bob.
An "open-ended" release pertains to:
a. Any and all releases.
b. A release involving an attorney.
c. A conditional or partial release.
d. A release where expenses have been paid - Answers -C; A conditional or partial
release
Which of the following is a violation of the unfair claims practice laws?
a. Knowingly misrepresenting to insureds or third-party claimants pertinent facts or
policy provisions relating to coverages at issue, or providing misleading information with
respect to the coverages
b. Failing to acknowledge with reasonable promptness pertinent communications with
respect to a claim
c. Failing to adopt and implement reasonable standards for the prompt investigation and
settlement of claims
d. All are violations - Answers -D; All are violations
George is the named insured under a claims-made CGL policy with a retroactive date of
July 1, 2005, and a policy period of January 1, 2011 to January 1, 2012. The policy was
not renewed and allowed to expire. On February 10, 2012, a claim is made against
George for property damage that occurred on December 31, 2005. This claim:
a. Will be covered under the automatic 60-day extended reporting period if George has
no other insurance that applies.
b. Is not covered, but would be if George's policy were written on an occurrence basis.
c. Is not covered because the occurrence did not take place during the policy period.
d. Is not covered because the occurrence took place after the retroactive date. -
Answers -A; Will be covered under the automatic 60-day extended reporting period if
George has no other insurance that applies.
Which of the following would be excluded under the Personal Auto liability coverage?
,a. A person transports people from the airport to nearby hotels for a fee.
b. A person uses his car to transport his workmates once per week in a car pool.
c. A person borrows a friend's vehicle to travel to the airport.
d. A person gets a speeding ticket in addition to being cited for an accident. - Answers
-A; A person transports people from the airport to nearby hotels for a fee
A main street business has suffered an explosion loss from a hot water heating boiler.
The civil authorities have blocked off the street and the insured's customers cannot get
to his store. The insured carries a Businessowners Policy. He sustains a loss of income.
Before his policy will pay any loss of income there is a ______hour waiting period and
the policy will then pay for loss of income up to _____weeks.
a. 72 / four weeks
b. 24 / two weeks
c. 12 / four weeks
d. 48 / three weeks - Answers -A; 72 hours / four weeks
A valid contract must contain all of the following, EXCEPT:
a. Be a written instrument
b. Competent parties
c. Legal purpose
d. Valuable consideration - Answers -A; Be a written instrument
Under the "Money Orders and Counterfeit Money" coverage of the Commercial Crime
form, all would be covered EXCEPT:
a. Taking a forged check from a customer in exchange for merchandise.
b. Receiving counterfeit currency in a sale.
c. Making change on a counterfeit bill.
d. Cashing a stolen money order. - Answers -A; Taking a forged check from a
customer in exchange for merchandise
What is the appropriate manner in which to sign a "Full Settlement Release"?
a. A business may use its d.b.a.
b. An individual may use an a.k.a.
c. An individual or a business must sign with a full legal name
d. Initials that represent a name may be used - Answers -C; An individual or a
business must sign with a full legal name
Under the conditions section of the BOP, all of the following would be considered vacant
EXCEPT:
a. A 100 unit apartment building of which 70 units are not rented.
b. An office building containing two empty units and these two empty suites represent
25% of the total floor space.
c. A mercantile building with a print shop on the ground floor but the second and third
floors are not being utilized.
,d. A new building which has not been rented out at all. - Answers -B; An office building
containing two empty units and these two empty suites represent 25% of the total floor
space
An insurance policy is a contract. If any part of the policy language is ambiguous, the
court will generally rule:
a. In favor of the insurer since the forms were filed and approved by the insurance
department.
b. In favor of the insured.
c. That the policy can be rewritten.
d. To refund the premium back to the insured. - Answers -B; in favor of the insured
Which of the following amounts would be paid on a covered auto suffering a total loss?
The retail value is $1,250 and the average trade in value is $1,000.
a. $1,000 plus applicable taxes
b. $1,500 plus applicable taxes
c. $1,250 plus applicable taxes
d. $2,995 plus applicable taxes - Answers -C; $1,250 plus applicable taxes
The Homeowner program allows for the attachment of the "personal injury coverage"
endorsement. What coverage will this add for the insured's liability protection?
a. Libel
b. Slander
c. Wrongful entry or eviction
d. All are correct - Answers -D; All are correct
Uninsured motorist coverage would not pay if:
a. The insured carries underinsured motorist coverage
b. Medical payments coverage would apply
c. No-fault would pay
d. Other liability coverage applies - Answers -D; Other liability coverage applies
The Connecticut Standard Fire policy pays property losses on the basis of:
a. Replacement cost basis
b. Actual cash value
c. Functional replacement cost basis
d. Agree amount basis - Answers -B; Actual cash value
Which of the following statements is FALSE concerning business auto coverage?
a. Medical payments coverage is automatically provided.
b. It may be used to cover specifically described autos only
c. If written to cover "any auto", non-owned and hired autos are automatically covered.
d. Whether newly acquired autos are automatically covered depends upon the
applicable coverage symbol. - Answers -A; Medical payments coverage is
automatically provided
, An insured covered under a homeowner policy is in the process of declaring
bankruptcy. What are the insurer's obligations if the insured has a covered claim?
a. The insurer can deny property claims.
b. All covered claims must be honored.
c. Only part of a covered claim is covered.
d. A larger deductible may be applied to a covered loss. - Answers -B; All covered
claims must be honored
An adjuster, acting as a fiduciary agent, should:
I. Not represent interests that are ADVERSE to those of the principal.
II. Not seek to profit from an outside source as a consequence of actions for, and on
behalf of, the principal.
III. Act with a high degree of fidelity and loyalty to the interests of the principal.
a. I only
b. I, II, and III
c. I and II only
d. II only - Answers -B; I, II and III
All of the following are claim settlement options for property, EXCEPT:
a. Value as established by the insurer
b. Repair the property
c. Replace the property with like kind and quality
d. Replace the property with new - Answers -A; Value as established by the insurer
Which of the following is true regarding the HO-5 form?
a. Provides open peril coverage on the buildings and their contents.
b. Provides open peril coverage on buildings and broad form peril coverage on their
contents.
c. Provides broad form peril coverage on the buildings and their contents.
d. Provides broad form peril coverage on the buildings and named peril coverage on
their contents. - Answers -A; Provides open peril coverage on the buildings and their
contents
After an auto collision loss an insurance company may elect to pay the insured's claim
and take possession of the vehicle. This practice is referred to as:
a. Salvage
b. Subrogation
c. Warranty
d. Deductible - Answers -A; Salvage
Which of the following would NOT be found in the conditions section of an insurance
policy?
ADJUSTER LICENSING COURSE
Each of the following people would be an insured for auto medical payments coverage
under Bob Miller's business auto policy, EXCEPT
a. Bob Miller (the named insured), struck by an auto while walking across the street.
The auto was not a covered auto.
b. Mel Carpenter, Bob's neighbor, occupying a covered auto.
c. Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto.
Frank lives with his mother, who is divorced from Bob.
d. Mary Thomas, Bob's ex-wife, occupying a covered auto. - Answers -C; Frank
Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank
lives with his mother, who is divorced from Bob.
An "open-ended" release pertains to:
a. Any and all releases.
b. A release involving an attorney.
c. A conditional or partial release.
d. A release where expenses have been paid - Answers -C; A conditional or partial
release
Which of the following is a violation of the unfair claims practice laws?
a. Knowingly misrepresenting to insureds or third-party claimants pertinent facts or
policy provisions relating to coverages at issue, or providing misleading information with
respect to the coverages
b. Failing to acknowledge with reasonable promptness pertinent communications with
respect to a claim
c. Failing to adopt and implement reasonable standards for the prompt investigation and
settlement of claims
d. All are violations - Answers -D; All are violations
George is the named insured under a claims-made CGL policy with a retroactive date of
July 1, 2005, and a policy period of January 1, 2011 to January 1, 2012. The policy was
not renewed and allowed to expire. On February 10, 2012, a claim is made against
George for property damage that occurred on December 31, 2005. This claim:
a. Will be covered under the automatic 60-day extended reporting period if George has
no other insurance that applies.
b. Is not covered, but would be if George's policy were written on an occurrence basis.
c. Is not covered because the occurrence did not take place during the policy period.
d. Is not covered because the occurrence took place after the retroactive date. -
Answers -A; Will be covered under the automatic 60-day extended reporting period if
George has no other insurance that applies.
Which of the following would be excluded under the Personal Auto liability coverage?
,a. A person transports people from the airport to nearby hotels for a fee.
b. A person uses his car to transport his workmates once per week in a car pool.
c. A person borrows a friend's vehicle to travel to the airport.
d. A person gets a speeding ticket in addition to being cited for an accident. - Answers
-A; A person transports people from the airport to nearby hotels for a fee
A main street business has suffered an explosion loss from a hot water heating boiler.
The civil authorities have blocked off the street and the insured's customers cannot get
to his store. The insured carries a Businessowners Policy. He sustains a loss of income.
Before his policy will pay any loss of income there is a ______hour waiting period and
the policy will then pay for loss of income up to _____weeks.
a. 72 / four weeks
b. 24 / two weeks
c. 12 / four weeks
d. 48 / three weeks - Answers -A; 72 hours / four weeks
A valid contract must contain all of the following, EXCEPT:
a. Be a written instrument
b. Competent parties
c. Legal purpose
d. Valuable consideration - Answers -A; Be a written instrument
Under the "Money Orders and Counterfeit Money" coverage of the Commercial Crime
form, all would be covered EXCEPT:
a. Taking a forged check from a customer in exchange for merchandise.
b. Receiving counterfeit currency in a sale.
c. Making change on a counterfeit bill.
d. Cashing a stolen money order. - Answers -A; Taking a forged check from a
customer in exchange for merchandise
What is the appropriate manner in which to sign a "Full Settlement Release"?
a. A business may use its d.b.a.
b. An individual may use an a.k.a.
c. An individual or a business must sign with a full legal name
d. Initials that represent a name may be used - Answers -C; An individual or a
business must sign with a full legal name
Under the conditions section of the BOP, all of the following would be considered vacant
EXCEPT:
a. A 100 unit apartment building of which 70 units are not rented.
b. An office building containing two empty units and these two empty suites represent
25% of the total floor space.
c. A mercantile building with a print shop on the ground floor but the second and third
floors are not being utilized.
,d. A new building which has not been rented out at all. - Answers -B; An office building
containing two empty units and these two empty suites represent 25% of the total floor
space
An insurance policy is a contract. If any part of the policy language is ambiguous, the
court will generally rule:
a. In favor of the insurer since the forms were filed and approved by the insurance
department.
b. In favor of the insured.
c. That the policy can be rewritten.
d. To refund the premium back to the insured. - Answers -B; in favor of the insured
Which of the following amounts would be paid on a covered auto suffering a total loss?
The retail value is $1,250 and the average trade in value is $1,000.
a. $1,000 plus applicable taxes
b. $1,500 plus applicable taxes
c. $1,250 plus applicable taxes
d. $2,995 plus applicable taxes - Answers -C; $1,250 plus applicable taxes
The Homeowner program allows for the attachment of the "personal injury coverage"
endorsement. What coverage will this add for the insured's liability protection?
a. Libel
b. Slander
c. Wrongful entry or eviction
d. All are correct - Answers -D; All are correct
Uninsured motorist coverage would not pay if:
a. The insured carries underinsured motorist coverage
b. Medical payments coverage would apply
c. No-fault would pay
d. Other liability coverage applies - Answers -D; Other liability coverage applies
The Connecticut Standard Fire policy pays property losses on the basis of:
a. Replacement cost basis
b. Actual cash value
c. Functional replacement cost basis
d. Agree amount basis - Answers -B; Actual cash value
Which of the following statements is FALSE concerning business auto coverage?
a. Medical payments coverage is automatically provided.
b. It may be used to cover specifically described autos only
c. If written to cover "any auto", non-owned and hired autos are automatically covered.
d. Whether newly acquired autos are automatically covered depends upon the
applicable coverage symbol. - Answers -A; Medical payments coverage is
automatically provided
, An insured covered under a homeowner policy is in the process of declaring
bankruptcy. What are the insurer's obligations if the insured has a covered claim?
a. The insurer can deny property claims.
b. All covered claims must be honored.
c. Only part of a covered claim is covered.
d. A larger deductible may be applied to a covered loss. - Answers -B; All covered
claims must be honored
An adjuster, acting as a fiduciary agent, should:
I. Not represent interests that are ADVERSE to those of the principal.
II. Not seek to profit from an outside source as a consequence of actions for, and on
behalf of, the principal.
III. Act with a high degree of fidelity and loyalty to the interests of the principal.
a. I only
b. I, II, and III
c. I and II only
d. II only - Answers -B; I, II and III
All of the following are claim settlement options for property, EXCEPT:
a. Value as established by the insurer
b. Repair the property
c. Replace the property with like kind and quality
d. Replace the property with new - Answers -A; Value as established by the insurer
Which of the following is true regarding the HO-5 form?
a. Provides open peril coverage on the buildings and their contents.
b. Provides open peril coverage on buildings and broad form peril coverage on their
contents.
c. Provides broad form peril coverage on the buildings and their contents.
d. Provides broad form peril coverage on the buildings and named peril coverage on
their contents. - Answers -A; Provides open peril coverage on the buildings and their
contents
After an auto collision loss an insurance company may elect to pay the insured's claim
and take possession of the vehicle. This practice is referred to as:
a. Salvage
b. Subrogation
c. Warranty
d. Deductible - Answers -A; Salvage
Which of the following would NOT be found in the conditions section of an insurance
policy?
