ALL LINES ADJUSTER EXAM
QUESTIONS WITH[ A
GRADED ]ANSWERS
The ntinsured nthas ntfiled nta ntclaim ntunder ntthe nt"Business ntIncome ntDepartment
ntProperties nt- ntBroad ntForm" ntbecause ntthe ntprimary ntbuyer ntof ntproducts ntand
ntservices ntfrom ntthe ntbusiness nthas ntfiled ntfor ntbankruptcy ntunder ntthis ntform ntthe
ntprimary ntbuyers ntbusiness ntwould ntbe ntknown ntas nt- ntANS--A ntrecipient ntlocation
recipient ntlocation nt- ntANS--Businesses ntwho ntsupport ntinsured ntby ntbeing ntthe
ntprimary ntbuyer ntfor nttheir ntproducts
HO-3 nt(special ntform) nt- ntANS--covers ntthe ntdwelling ntand ntother ntstructures nton nta
ntrisk-of-direct-physical ntloss ntbasis. ntAll ntdirect ntphysical ntlosses ntare ntcovered
ntexcept ntthose ntlosses ntspecifically ntexcluded. ntPersonal ntproperty ntis ntcovered nton nta
ntnamed ntperils ntbasis
HO-5 ntComprehensive ntForm nt- ntANS--provides ntopen ntperils ntcoverage nt("all-risks
ntcoverage") nton ntthe ntdwelling, ntother ntstructures ntand ntpersonal ntproperty.
HO-2 nt(broad ntform) nt- ntANS--covers ntthe ntdwelling, ntother ntstructures, ntand ntpersonal
ntproperty nton nta ntnamed ntperils ntbasis
HO-4 nt(contents ntbroad ntform) nt- ntANS--Only ntcovers nta nttenant's ntpersonal ntproperty
nton nta ntnamed ntperils ntbasis
The ntdwelling ntis ntinsured ntfor nt200,000 ntunder ntDP-2 ntdwelling ntpolicy nthow ntmuch
ntcoverage ntapplies ntto ntthe ntbarn? nt- ntANS--Nothing ntfarm ntproperty ntare ntnot nteligible
ntunder ntthe ntdwelling ntpolicy.
A ntCovered ntAuto ntincludes ntthose ntvehicle(s) ntlisted nton ntthe ntDeclarations, ntplus
ntany nttrailers ntor ntwagons ntowned ntby ntthe ntNamed ntInsured, ntany ntnewly ntacquired
ntvehicles, ntand ntany ntvehicle ntused ntas nta nt_________. nt- ntANS--Temporary
ntSubstitute ntAuto
The ntcovered ntauto ntis ntdefined ntin ntthe ntpolicy ntas ntall ntof ntthe ntfollowing ntEXCEPT:
A) ntany ntadditional ntauto ntacquired ntin ntthe ntpast nt30 ntdays. nt
B) ntany ntauto ntshown ntin ntthe ntdeclarations. nt
C) ntany ntauto ntused ntas nta nttemporary ntsubstitute ntwhile ntan ntinsured ntauto ntis ntbeing
ntrepaired. nt
D) ntany nttrailer ntowned ntby ntthe ntinsured ntor ntspouse. nt- ntANS--Answer: ntA nt
,An ntadditional ntauto ntacquired ntduring ntthe ntpolicy ntperiod ntis ntconsidered nta ntcovered
ntauto. ntHowever, ntsome ntrestrictions ntdo ntapply. ntFor ntexample, ntif ntthe ntnewly
ntacquired ntauto ntis ntin ntaddition ntto ntany ntvehicle ntshown nton ntthe ntdeclarations, ntit
ntmust ntbe ntinsured ntwithin nt14 ntdays ntof ntthe ntpurchase ntdate. ntIf ntit ntreplaces ntone
ntof ntthe ntcars, ntthe ntinsured ntdoes ntnot ntneed ntto ntadd ntit ntduring ntthat ntpolicy ntperiod.
Coverage ntF nton nthomeowners ntpolicy ntprovides nt- ntANS--Medical ntpayments ntto
ntothers; ntpays ntall ntnecessary ntmedical ntexpenses ntfor ntup ntto ntthree ntyears ntafter ntan
ntaccident.
Coverage ntF: ntMedical ntPayments ntto ntOthers nt- ntANS--Does ntnot ntapply ntto ntthe
ntinsured ntor ntmembers ntof ntthe ntinsured's nthousehold
Not ntliability ntcoverage ntand ntis ntnot ntbase nton ntfault
An ntinsured nthas nttaken ntinventory ntof nthis ntmerchandise ntand ntdiscovers nta
ntsubstantial ntshortage ntof ntvaluable ntstock. ntHe ntsubmits nta ntclaim ntto nthis ntinsurance
ntcarrier ntthat ntprovides nthis ntcoverage ntunder nta ntBusiness ntOwners ntPolicy. ntWhat
ntcoverage ntis ntprovided ntby ntthe ntBOP? nt- ntANS--No ntcoverage ntwould ntapply, ntthere
ntis ntno ntcoverage ntfor ntmissing ntproperty ntwhen ntthere ntis ntno ntphysical ntevidence ntto
ntshow ntcause ntof ntloss
Arbitration nt(ADR) nt- ntANS--Neutral ntthird ntparty nthears nta ntdispute ntand ntmakes nta
ntdecision ntboth ntparties nthave ntagreed ntto ntfollow.
Mediation nt- ntANS--A ntmethod ntof ntsettling ntdisputes ntoutside ntof ntcourt ntby ntusing
ntthe ntservices ntof nta ntneutral ntthird ntparty, ntcalled nta ntmediator. ntThe ntmediator ntacts
ntas nta ntcommunicating ntagent ntbetween ntthe ntparties ntand ntsuggests ntways ntin
ntwhich ntthe ntparties ntcan ntresolve nttheir ntdispute. ntNot ntbinding.
Difference ntbetween ntArbitration ntand ntMeditation? nt- ntANS--Mediation ntis ntnot
ntbinding, ntArbitration ntis.
Mediation-Arbitration nt- ntANS--If ntthe ntparties ntcannot ntreach nta ntsettlement ntthrough
ntmediation, ntan ntarbitrator ntwill ntresolve ntthe ntdispute.
The ntbuilding ntand ntpersonal ntproperty ntcoverage ntform ntprovides ntcoverage ntfor
ntoutdoor ntsigns nt- ntANS--Whether ntattached ntto ntthe ntbuilding ntor ntnot ntfor ntup ntto
nt2,500 ntif ntdamaged ntby nta ntperil ntinsured ntagainst.
Building ntand ntPersonal ntProperty ntCoverage ntForm nt- ntANS--Commercial ntProperty
ntcoverage ntform ntthat ntcovers ntbuildings, ntthe ntinsured's ntbusiness ntpersonal
ntproperty, ntand ntthe ntpersonal ntproperty ntof ntothers ntlocated ntat ntthe ntbusiness
ntpremises
, Foreseeability ntTest nt- ntANS--To ntdetermine ntif ntthe ntdefendant's ntconduct ntwas ntthe
ntproximate ntcause ntof ntthe ntplaintiff's ntinjury, ntthe ntcourt ntapplies
Foreseeability nt- ntANS--excludes ntliability ntfor ntharms ntthat ntwere ntsufficiently
ntunforeseeable ntat ntthe nttime ntof ntthe ntdefendant's nttortious ntconduct.
Purpose ntof ntfreight ntinsurance nt- ntANS--Covers ntshipper ntfees
Freight ntInsurance nt- ntANS--indemnifies ntthe ntship ntowner ntfor ntthe ntloss ntof ntearnings
ntif ntthe ntgoods ntare ntdamaged ntor ntlost ntand ntare ntnot ntdelivered. ntShipper ntFees.
Freight ntInsurance nt- ntANS--insures ntthat ntshipowner ntwill ntreceive ntpayment ntfor
nttransportation ntcharges.
What ntperils ntare ntcovered nton ntthe ntbasic ntform ntperil ntof ntthe ntHomeowners ntPolicy
nt- ntANS--fire, ntlightning, ntsmoke, ntwindstorm, nthurricane, nthail, ntexplosion, ntaircraft
ntand ntvehicles, ntvandalism, ntriot ntand ntcivil ntcommotion, nttheft, ntand ntpremises
ntliability.
What ntperils ntare ntcovered ntunder ntthe ntbroad ntfrom ntHomeowners ntPolicy nt- ntANS--
include ntbasic ntperils ntplus ntfalling ntobjects; ntweight ntof ntice, ntsleet, ntor ntsnow;
ntfreezing ntpipes; ntand ntsome ntcoverage ntfor ntsudden ntand ntaccidental ntwater
ntdischarge.
Exclusions ntto ntHomeowners ntpolicy nt- ntANS--earthquakes; nt
termites, ntrats; nt
freezing ntpipes ntwhile ntyour nthouse ntis ntunoccupied; nt
losses ntif ntyour nthouse ntis ntvacant ntfor ntthe ntnumber ntof ntdays ntspecified ntby ntyour
ntpolicy; nt
wear ntand nttear ntor ntmaintenance; ntwind ntor nthail ntdamage ntto nttrees ntand ntshrubs;
ntmold, ntexcept ntnecessary ntcosts ntto ntrepair ntor ntreplace ntproperty ntdamage ntcaused
ntby nta ntcovered ntwater ntloss;
and ntwater ntdamage ntresulting ntfrom ntcontinuous ntand ntrepeated ntleakage ntor
ntseepage.
Landlord's ntfurnishing nt- ntANS--Is ntnot ntadditional ntcoverage ntand ntdoesn't ntinsurance
ntthe ntlimits ntof ntthe ntpolicy
Power ntto ntbind ntmeans nt- ntANS--The ntprincipal ntis ntbound ntto ntthe ntdecisions ntof ntthe
ntadjuster
RVC nt(replacement ntcost ntvalue) nt- ntANS--The ntcost ntto ntreplace ntthe ntproperty nton
ntthe ntsame ntpremises ntwith ntother ntproperty ntof ntcomparable ntmaterial ntand ntquality
ntused ntfor ntthe ntsame ntpurpose
QUESTIONS WITH[ A
GRADED ]ANSWERS
The ntinsured nthas ntfiled nta ntclaim ntunder ntthe nt"Business ntIncome ntDepartment
ntProperties nt- ntBroad ntForm" ntbecause ntthe ntprimary ntbuyer ntof ntproducts ntand
ntservices ntfrom ntthe ntbusiness nthas ntfiled ntfor ntbankruptcy ntunder ntthis ntform ntthe
ntprimary ntbuyers ntbusiness ntwould ntbe ntknown ntas nt- ntANS--A ntrecipient ntlocation
recipient ntlocation nt- ntANS--Businesses ntwho ntsupport ntinsured ntby ntbeing ntthe
ntprimary ntbuyer ntfor nttheir ntproducts
HO-3 nt(special ntform) nt- ntANS--covers ntthe ntdwelling ntand ntother ntstructures nton nta
ntrisk-of-direct-physical ntloss ntbasis. ntAll ntdirect ntphysical ntlosses ntare ntcovered
ntexcept ntthose ntlosses ntspecifically ntexcluded. ntPersonal ntproperty ntis ntcovered nton nta
ntnamed ntperils ntbasis
HO-5 ntComprehensive ntForm nt- ntANS--provides ntopen ntperils ntcoverage nt("all-risks
ntcoverage") nton ntthe ntdwelling, ntother ntstructures ntand ntpersonal ntproperty.
HO-2 nt(broad ntform) nt- ntANS--covers ntthe ntdwelling, ntother ntstructures, ntand ntpersonal
ntproperty nton nta ntnamed ntperils ntbasis
HO-4 nt(contents ntbroad ntform) nt- ntANS--Only ntcovers nta nttenant's ntpersonal ntproperty
nton nta ntnamed ntperils ntbasis
The ntdwelling ntis ntinsured ntfor nt200,000 ntunder ntDP-2 ntdwelling ntpolicy nthow ntmuch
ntcoverage ntapplies ntto ntthe ntbarn? nt- ntANS--Nothing ntfarm ntproperty ntare ntnot nteligible
ntunder ntthe ntdwelling ntpolicy.
A ntCovered ntAuto ntincludes ntthose ntvehicle(s) ntlisted nton ntthe ntDeclarations, ntplus
ntany nttrailers ntor ntwagons ntowned ntby ntthe ntNamed ntInsured, ntany ntnewly ntacquired
ntvehicles, ntand ntany ntvehicle ntused ntas nta nt_________. nt- ntANS--Temporary
ntSubstitute ntAuto
The ntcovered ntauto ntis ntdefined ntin ntthe ntpolicy ntas ntall ntof ntthe ntfollowing ntEXCEPT:
A) ntany ntadditional ntauto ntacquired ntin ntthe ntpast nt30 ntdays. nt
B) ntany ntauto ntshown ntin ntthe ntdeclarations. nt
C) ntany ntauto ntused ntas nta nttemporary ntsubstitute ntwhile ntan ntinsured ntauto ntis ntbeing
ntrepaired. nt
D) ntany nttrailer ntowned ntby ntthe ntinsured ntor ntspouse. nt- ntANS--Answer: ntA nt
,An ntadditional ntauto ntacquired ntduring ntthe ntpolicy ntperiod ntis ntconsidered nta ntcovered
ntauto. ntHowever, ntsome ntrestrictions ntdo ntapply. ntFor ntexample, ntif ntthe ntnewly
ntacquired ntauto ntis ntin ntaddition ntto ntany ntvehicle ntshown nton ntthe ntdeclarations, ntit
ntmust ntbe ntinsured ntwithin nt14 ntdays ntof ntthe ntpurchase ntdate. ntIf ntit ntreplaces ntone
ntof ntthe ntcars, ntthe ntinsured ntdoes ntnot ntneed ntto ntadd ntit ntduring ntthat ntpolicy ntperiod.
Coverage ntF nton nthomeowners ntpolicy ntprovides nt- ntANS--Medical ntpayments ntto
ntothers; ntpays ntall ntnecessary ntmedical ntexpenses ntfor ntup ntto ntthree ntyears ntafter ntan
ntaccident.
Coverage ntF: ntMedical ntPayments ntto ntOthers nt- ntANS--Does ntnot ntapply ntto ntthe
ntinsured ntor ntmembers ntof ntthe ntinsured's nthousehold
Not ntliability ntcoverage ntand ntis ntnot ntbase nton ntfault
An ntinsured nthas nttaken ntinventory ntof nthis ntmerchandise ntand ntdiscovers nta
ntsubstantial ntshortage ntof ntvaluable ntstock. ntHe ntsubmits nta ntclaim ntto nthis ntinsurance
ntcarrier ntthat ntprovides nthis ntcoverage ntunder nta ntBusiness ntOwners ntPolicy. ntWhat
ntcoverage ntis ntprovided ntby ntthe ntBOP? nt- ntANS--No ntcoverage ntwould ntapply, ntthere
ntis ntno ntcoverage ntfor ntmissing ntproperty ntwhen ntthere ntis ntno ntphysical ntevidence ntto
ntshow ntcause ntof ntloss
Arbitration nt(ADR) nt- ntANS--Neutral ntthird ntparty nthears nta ntdispute ntand ntmakes nta
ntdecision ntboth ntparties nthave ntagreed ntto ntfollow.
Mediation nt- ntANS--A ntmethod ntof ntsettling ntdisputes ntoutside ntof ntcourt ntby ntusing
ntthe ntservices ntof nta ntneutral ntthird ntparty, ntcalled nta ntmediator. ntThe ntmediator ntacts
ntas nta ntcommunicating ntagent ntbetween ntthe ntparties ntand ntsuggests ntways ntin
ntwhich ntthe ntparties ntcan ntresolve nttheir ntdispute. ntNot ntbinding.
Difference ntbetween ntArbitration ntand ntMeditation? nt- ntANS--Mediation ntis ntnot
ntbinding, ntArbitration ntis.
Mediation-Arbitration nt- ntANS--If ntthe ntparties ntcannot ntreach nta ntsettlement ntthrough
ntmediation, ntan ntarbitrator ntwill ntresolve ntthe ntdispute.
The ntbuilding ntand ntpersonal ntproperty ntcoverage ntform ntprovides ntcoverage ntfor
ntoutdoor ntsigns nt- ntANS--Whether ntattached ntto ntthe ntbuilding ntor ntnot ntfor ntup ntto
nt2,500 ntif ntdamaged ntby nta ntperil ntinsured ntagainst.
Building ntand ntPersonal ntProperty ntCoverage ntForm nt- ntANS--Commercial ntProperty
ntcoverage ntform ntthat ntcovers ntbuildings, ntthe ntinsured's ntbusiness ntpersonal
ntproperty, ntand ntthe ntpersonal ntproperty ntof ntothers ntlocated ntat ntthe ntbusiness
ntpremises
, Foreseeability ntTest nt- ntANS--To ntdetermine ntif ntthe ntdefendant's ntconduct ntwas ntthe
ntproximate ntcause ntof ntthe ntplaintiff's ntinjury, ntthe ntcourt ntapplies
Foreseeability nt- ntANS--excludes ntliability ntfor ntharms ntthat ntwere ntsufficiently
ntunforeseeable ntat ntthe nttime ntof ntthe ntdefendant's nttortious ntconduct.
Purpose ntof ntfreight ntinsurance nt- ntANS--Covers ntshipper ntfees
Freight ntInsurance nt- ntANS--indemnifies ntthe ntship ntowner ntfor ntthe ntloss ntof ntearnings
ntif ntthe ntgoods ntare ntdamaged ntor ntlost ntand ntare ntnot ntdelivered. ntShipper ntFees.
Freight ntInsurance nt- ntANS--insures ntthat ntshipowner ntwill ntreceive ntpayment ntfor
nttransportation ntcharges.
What ntperils ntare ntcovered nton ntthe ntbasic ntform ntperil ntof ntthe ntHomeowners ntPolicy
nt- ntANS--fire, ntlightning, ntsmoke, ntwindstorm, nthurricane, nthail, ntexplosion, ntaircraft
ntand ntvehicles, ntvandalism, ntriot ntand ntcivil ntcommotion, nttheft, ntand ntpremises
ntliability.
What ntperils ntare ntcovered ntunder ntthe ntbroad ntfrom ntHomeowners ntPolicy nt- ntANS--
include ntbasic ntperils ntplus ntfalling ntobjects; ntweight ntof ntice, ntsleet, ntor ntsnow;
ntfreezing ntpipes; ntand ntsome ntcoverage ntfor ntsudden ntand ntaccidental ntwater
ntdischarge.
Exclusions ntto ntHomeowners ntpolicy nt- ntANS--earthquakes; nt
termites, ntrats; nt
freezing ntpipes ntwhile ntyour nthouse ntis ntunoccupied; nt
losses ntif ntyour nthouse ntis ntvacant ntfor ntthe ntnumber ntof ntdays ntspecified ntby ntyour
ntpolicy; nt
wear ntand nttear ntor ntmaintenance; ntwind ntor nthail ntdamage ntto nttrees ntand ntshrubs;
ntmold, ntexcept ntnecessary ntcosts ntto ntrepair ntor ntreplace ntproperty ntdamage ntcaused
ntby nta ntcovered ntwater ntloss;
and ntwater ntdamage ntresulting ntfrom ntcontinuous ntand ntrepeated ntleakage ntor
ntseepage.
Landlord's ntfurnishing nt- ntANS--Is ntnot ntadditional ntcoverage ntand ntdoesn't ntinsurance
ntthe ntlimits ntof ntthe ntpolicy
Power ntto ntbind ntmeans nt- ntANS--The ntprincipal ntis ntbound ntto ntthe ntdecisions ntof ntthe
ntadjuster
RVC nt(replacement ntcost ntvalue) nt- ntANS--The ntcost ntto ntreplace ntthe ntproperty nton
ntthe ntsame ntpremises ntwith ntother ntproperty ntof ntcomparable ntmaterial ntand ntquality
ntused ntfor ntthe ntsame ntpurpose
