INSURANCE ADJUSTER EXAM AHA PALS EXAM NEWEST 2025 217
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS TEST BANK
1. Which kind of losses are covered under a standard fire policy?
Direct
2. All fires are not covered by the Standard Fire policies, only those that:
are hostile and have a flame or glow
3. The physical damage section of the personal auto policy excludes losses arising from:
a) flood
b) earthquake
c) animals
d) mechanical breakdowns
d) mechanical breakdowns
4. Which of the following causes of loss is covered by Other-Than-Collision Coverage
written under a Personal Auto Policy?
a) freezing
b) electrical breakdown
c) vandalism damage to tires
d) upset
Vandalism damage to tires
5. Which of the following losses would be covered by Other-Than-Collision Coverage
under an automobile policy?
a) mechanical breakdown
b) hail
c) wear and tear
d) upset
b) Hail
6. What is the principle coverage under the Personal Auto Policy coverage Part D?
a) liability coverage
b) physical damage coverage
c) uninsured motorist coverage
d) medical payments coverage
b) Physical Damage Coverage
7. How much will the Personal Auto Policy Coverage Part A pay towards an appeal bond?
unlimited to dollar amount
8. All of the following are true about newly-acquired eligible vehicles, except:
a) some coverage applies automatically to all newly acquired eligible vehicles
b) comprehensive nor collision coverage is never automatically provided for newly
acquired vehicles
, c) liability coverage for additional vehicles will be provided automatically only for 14
days
d) if liability coverage applies to a replacement vehicle the coverage is automatic until the
end of the policy term
b) comprehensive nor collision coverage is never automatically provided to newly
acquired vehicles
9. all of the following statements concerning the physical damage section of the personal
auto policy are correct except:
a) coverage is provided for transportation expenses if a covered auto is stolen
b) coverage is excluded for mechanical breakdown unless it is a result of theft of the
covered vehicle
c) coverage is excluded for private passenger autos borrowed by the named insured or
family members
d) the insurer has the option of repairing a damaged auto rather than making a monetary
settlement
c) coverage is excluded for private passenger autos borrowed by the named insured or
family members
10. Which of the following best outlines the intent of automobile liability insurance?
To pay on behalf of the insured, all sums which the insured shall become legally
obligated to pay as damages caused by accident and arising out of the ownership, or use
of the automobile
11. Personal Auto Policy (PAP) provisions include duties of insured after an accident. All of
the following are duties of insured after an accident, except:
a) notify insurance company
b) cooperate with insurer
c) do not leave the auto and accident area
d) notify the police if necessary
c) do not leave the auto and accident area
12. All of the following would be covered under Part A- Liability on a personal auto policy,
except:
The insured brakes suddenly to avoid hitting a squirrel who has run into the street and a
passenger in the insured's automobile is injured (b/c had least amount of control,
automatic reaction)
13. a remedy is available when the insured and the insurer cannot agree on whether the
insured is entitled to collect damages or on the amount of damages to be awarded in
uninsured motorist cases. This remedy is:
a) subrogation
b) settling out of court
c) no benefit to liable
d) arbitration
d) arbitration
, 14. What is a temporary substitute automobile?
an auto not owned by an insured and used with the owner's permission while the insured's
auto is withdrawn from use because of its loss, destruction, breakdown, or servicing
15. Auto liability insurance is divided into coverage for two types of damage one person may
cause another. They are:
bodily injury and property damage
16. Which of the following is covered by an insured's auto property damage liability
insurance?
a) damage to the insured's car by collision
b) breakage of the insured's windshield
c) damage to property of others caused by insured's negligence
d) theft of the insured's car
c) damage to the property of others caused by the insured's negligence
17. All policies covering private passenger vehicles must be issued for a minimum term of:
6 months
18. What is the maximum amount payable for bail bonds under supplementary payments in
the Personal Auto Policy?
$250
19. Part C- Uninsured coverage, is:
required to be offered by insurance companies, but the insured can reject it
20. which of the following is true with respect to automobile medical payments?
coverage applies to reasonable expenses incurred within 3 years from the date of accident
for necessary medical and related services
21. All of the following would be included in the definition of your covered auto on a
personal auto policy, except:
a) a vehicle shown in the declarations
b) a $350 trailer owned by the named insured
c) a non-owned vehicle used by the insured when their covered auto is being serviced
d) a vehicle furnished for regular use of the named insured by the insured's employer
d) a vehicle furnished for regular use of the named insured by the insured's employer
22. At what time does a fire policy go into effect?
12:01am standard time at the location of the insured's property
23. A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect under
each policy?
$5,000
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS TEST BANK
1. Which kind of losses are covered under a standard fire policy?
Direct
2. All fires are not covered by the Standard Fire policies, only those that:
are hostile and have a flame or glow
3. The physical damage section of the personal auto policy excludes losses arising from:
a) flood
b) earthquake
c) animals
d) mechanical breakdowns
d) mechanical breakdowns
4. Which of the following causes of loss is covered by Other-Than-Collision Coverage
written under a Personal Auto Policy?
a) freezing
b) electrical breakdown
c) vandalism damage to tires
d) upset
Vandalism damage to tires
5. Which of the following losses would be covered by Other-Than-Collision Coverage
under an automobile policy?
a) mechanical breakdown
b) hail
c) wear and tear
d) upset
b) Hail
6. What is the principle coverage under the Personal Auto Policy coverage Part D?
a) liability coverage
b) physical damage coverage
c) uninsured motorist coverage
d) medical payments coverage
b) Physical Damage Coverage
7. How much will the Personal Auto Policy Coverage Part A pay towards an appeal bond?
unlimited to dollar amount
8. All of the following are true about newly-acquired eligible vehicles, except:
a) some coverage applies automatically to all newly acquired eligible vehicles
b) comprehensive nor collision coverage is never automatically provided for newly
acquired vehicles
, c) liability coverage for additional vehicles will be provided automatically only for 14
days
d) if liability coverage applies to a replacement vehicle the coverage is automatic until the
end of the policy term
b) comprehensive nor collision coverage is never automatically provided to newly
acquired vehicles
9. all of the following statements concerning the physical damage section of the personal
auto policy are correct except:
a) coverage is provided for transportation expenses if a covered auto is stolen
b) coverage is excluded for mechanical breakdown unless it is a result of theft of the
covered vehicle
c) coverage is excluded for private passenger autos borrowed by the named insured or
family members
d) the insurer has the option of repairing a damaged auto rather than making a monetary
settlement
c) coverage is excluded for private passenger autos borrowed by the named insured or
family members
10. Which of the following best outlines the intent of automobile liability insurance?
To pay on behalf of the insured, all sums which the insured shall become legally
obligated to pay as damages caused by accident and arising out of the ownership, or use
of the automobile
11. Personal Auto Policy (PAP) provisions include duties of insured after an accident. All of
the following are duties of insured after an accident, except:
a) notify insurance company
b) cooperate with insurer
c) do not leave the auto and accident area
d) notify the police if necessary
c) do not leave the auto and accident area
12. All of the following would be covered under Part A- Liability on a personal auto policy,
except:
The insured brakes suddenly to avoid hitting a squirrel who has run into the street and a
passenger in the insured's automobile is injured (b/c had least amount of control,
automatic reaction)
13. a remedy is available when the insured and the insurer cannot agree on whether the
insured is entitled to collect damages or on the amount of damages to be awarded in
uninsured motorist cases. This remedy is:
a) subrogation
b) settling out of court
c) no benefit to liable
d) arbitration
d) arbitration
, 14. What is a temporary substitute automobile?
an auto not owned by an insured and used with the owner's permission while the insured's
auto is withdrawn from use because of its loss, destruction, breakdown, or servicing
15. Auto liability insurance is divided into coverage for two types of damage one person may
cause another. They are:
bodily injury and property damage
16. Which of the following is covered by an insured's auto property damage liability
insurance?
a) damage to the insured's car by collision
b) breakage of the insured's windshield
c) damage to property of others caused by insured's negligence
d) theft of the insured's car
c) damage to the property of others caused by the insured's negligence
17. All policies covering private passenger vehicles must be issued for a minimum term of:
6 months
18. What is the maximum amount payable for bail bonds under supplementary payments in
the Personal Auto Policy?
$250
19. Part C- Uninsured coverage, is:
required to be offered by insurance companies, but the insured can reject it
20. which of the following is true with respect to automobile medical payments?
coverage applies to reasonable expenses incurred within 3 years from the date of accident
for necessary medical and related services
21. All of the following would be included in the definition of your covered auto on a
personal auto policy, except:
a) a vehicle shown in the declarations
b) a $350 trailer owned by the named insured
c) a non-owned vehicle used by the insured when their covered auto is being serviced
d) a vehicle furnished for regular use of the named insured by the insured's employer
d) a vehicle furnished for regular use of the named insured by the insured's employer
22. At what time does a fire policy go into effect?
12:01am standard time at the location of the insured's property
23. A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect under
each policy?
$5,000
