Maine Adjuster Property and Casualty Exam
2 UPDATED ACTUAL Exam Questions and
CORECT Answers
The required minimum amounts of liability car insurance coverage in Maine - CORRECT
ANSWER -50/100/25
Would a ferry crashing between the coast of Maine and Nova Scotia a be covered by the
personal auto insurance policy - CORRECT ANSWER -No
Limit on Theft of Unscheduled Jewelry - CORRECT ANSWER -$1500
When insurer and insured cannot agree on loss - CORRECT ANSWER -they each hire an
appraiser
If the appraisers cannot agree on loss - CORRECT ANSWER -they select an umpire
If the appraisers cannot agree on an umpire - CORRECT ANSWER -a judge will decide
Insurable interest must exist - CORRECT ANSWER -Both at the time the insurance policy
is purchased and at the time a loss occurs.
If a Corporation rents a plane and the President of Corporation is flying the plane they need -
CORRECT ANSWER -Non-owned Aircraft Liability Policy.
what is purpose of the Maine Auto Insurance plan - CORRECT ANSWER -to provide
insurance when it cannot be obtained in the voluntary market.
,what type of loss is it when you have to rent a car as a result of a loss - CORRECT
ANSWER -indirect loss
Loss x Did Have/ Should have - CORRECT ANSWER -deductible
The insured pays a small premium and the insurer promises to pay a large amount if a covered
loss occurs. This is an example of a - CORRECT ANSWER -Aleatory Contract
Kim shows up at the agent's office to pay her premium on her policy that cancelled last night.
The agent accepts the premium and Kim believes her policy is paid. This is an example of what
kind of agent authority? - CORRECT ANSWER -apparent
Only one of the parties, the insurer, can be legally bound to honor their promise. This is an
example of a - CORRECT ANSWER -Unilateral Contract
Rules have to be followed in order for an insurance contract to work. This is an example of a -
CORRECT ANSWER -Conditional Contract
Tiffany buys a policy and is not happy with the claim denial based on the wording. She feels the
language is vague. The court agrees with her and awards her coverage. This is an example of a -
CORRECT ANSWER -Contract of Adhesion
The insurer relies on the application information to be truthful and the insured relies on the
insurer to be truthful and fair in the claim settlement. This is an example of a - CORRECT
ANSWER -Contract of Utmost Good Faith
An insurance policy drafted by the company and offered to the insured for acceptance or
rejection without negotiation is called a: - CORRECT ANSWER -Contract of Adhesion
What is NOT a requirement to sit for the exam? - CORRECT ANSWER -high school
diploma or equivalency
, If a violation has caused or is about to cause substantial and material harm, the Superintendent
may issue an order that the person in violation cease and desist from the activity. Notice of the
order must be mailed - CORRECT ANSWER -by certified mail.
The privacy disclosure notice must not - CORRECT ANSWER -require the applicant to
give permission to in writing to use the information
The agent contract with an insurance company is an example of what type of agent authority? -
CORRECT ANSWER -express
Loss is measurable, loss must be accidental, loss must NOT be catastrophic in nature. These are
all elements of - CORRECT ANSWER -an insurable risk.
Binders of insurance - CORRECT ANSWER -can be both oral and written.
Since the policy is written by the insurer and the insured has no input in the wording, any
vagueness or ambiguity will always be ruled in favor of the insured. This is known as -
CORRECT ANSWER -the doctrine of adhesion
Katelyn is upset she was denied coverage because of vague wording. The court agrees and tells
the insurer to give her the coverage. This decision is based on: - CORRECT ANSWER -
Contract of adhesion
What is it called when someone does something so inherently dangerous that the public decided
they are responsible - CORRECT ANSWER -Strict liability
Lost wages, and medical bills are examples of what type of compensatory damages? -
CORRECT ANSWER -special damages
2 UPDATED ACTUAL Exam Questions and
CORECT Answers
The required minimum amounts of liability car insurance coverage in Maine - CORRECT
ANSWER -50/100/25
Would a ferry crashing between the coast of Maine and Nova Scotia a be covered by the
personal auto insurance policy - CORRECT ANSWER -No
Limit on Theft of Unscheduled Jewelry - CORRECT ANSWER -$1500
When insurer and insured cannot agree on loss - CORRECT ANSWER -they each hire an
appraiser
If the appraisers cannot agree on loss - CORRECT ANSWER -they select an umpire
If the appraisers cannot agree on an umpire - CORRECT ANSWER -a judge will decide
Insurable interest must exist - CORRECT ANSWER -Both at the time the insurance policy
is purchased and at the time a loss occurs.
If a Corporation rents a plane and the President of Corporation is flying the plane they need -
CORRECT ANSWER -Non-owned Aircraft Liability Policy.
what is purpose of the Maine Auto Insurance plan - CORRECT ANSWER -to provide
insurance when it cannot be obtained in the voluntary market.
,what type of loss is it when you have to rent a car as a result of a loss - CORRECT
ANSWER -indirect loss
Loss x Did Have/ Should have - CORRECT ANSWER -deductible
The insured pays a small premium and the insurer promises to pay a large amount if a covered
loss occurs. This is an example of a - CORRECT ANSWER -Aleatory Contract
Kim shows up at the agent's office to pay her premium on her policy that cancelled last night.
The agent accepts the premium and Kim believes her policy is paid. This is an example of what
kind of agent authority? - CORRECT ANSWER -apparent
Only one of the parties, the insurer, can be legally bound to honor their promise. This is an
example of a - CORRECT ANSWER -Unilateral Contract
Rules have to be followed in order for an insurance contract to work. This is an example of a -
CORRECT ANSWER -Conditional Contract
Tiffany buys a policy and is not happy with the claim denial based on the wording. She feels the
language is vague. The court agrees with her and awards her coverage. This is an example of a -
CORRECT ANSWER -Contract of Adhesion
The insurer relies on the application information to be truthful and the insured relies on the
insurer to be truthful and fair in the claim settlement. This is an example of a - CORRECT
ANSWER -Contract of Utmost Good Faith
An insurance policy drafted by the company and offered to the insured for acceptance or
rejection without negotiation is called a: - CORRECT ANSWER -Contract of Adhesion
What is NOT a requirement to sit for the exam? - CORRECT ANSWER -high school
diploma or equivalency
, If a violation has caused or is about to cause substantial and material harm, the Superintendent
may issue an order that the person in violation cease and desist from the activity. Notice of the
order must be mailed - CORRECT ANSWER -by certified mail.
The privacy disclosure notice must not - CORRECT ANSWER -require the applicant to
give permission to in writing to use the information
The agent contract with an insurance company is an example of what type of agent authority? -
CORRECT ANSWER -express
Loss is measurable, loss must be accidental, loss must NOT be catastrophic in nature. These are
all elements of - CORRECT ANSWER -an insurable risk.
Binders of insurance - CORRECT ANSWER -can be both oral and written.
Since the policy is written by the insurer and the insured has no input in the wording, any
vagueness or ambiguity will always be ruled in favor of the insured. This is known as -
CORRECT ANSWER -the doctrine of adhesion
Katelyn is upset she was denied coverage because of vague wording. The court agrees and tells
the insurer to give her the coverage. This decision is based on: - CORRECT ANSWER -
Contract of adhesion
What is it called when someone does something so inherently dangerous that the public decided
they are responsible - CORRECT ANSWER -Strict liability
Lost wages, and medical bills are examples of what type of compensatory damages? -
CORRECT ANSWER -special damages
