CT Adjuster Exam Practice Questions
WITH Answers 100% Pass
Riley's coupe is insured with a personal auto policy that includes
liability, uninsured motorists, and other-than-collission coverages. He
buys a new sedan and wants collission coverage on it. Which statement
is true about this coverage? -
CORRECT ANSWER: He must notify the insurer about the newly
acquired sedan within four days.
Because Riley's coupe does not have collission coverage, he must report
the newly acquired sedan to his insurer within four days of its acquisition
to get collision coverage for it.
QUESTION: Dairy products in Bette's ice cream shop would be
destroyed if her freezers failed for more than a few hours. So Bette
added the utility services-direct damage endorsement, scheduling
,overhead transmission lines, to her businessowners policy. When the
shop losses electrical power due to a mechanical breakdown of the utility
company's equipment: -
CORRECT ANSWER: Bette's loss will not be covered because
mechanical breakdown is not a covered peril
For coverage to apply, the service interruption must result from damage
to utility company property caused by a covered cause of loss.
Mechanical breakdown is not a covered peril.
QUESTION: An imposter pretends to be Barbara, the president of a
succesful company, while engaging in scandalous activities. These
activities attract media attention and threaten the firm's reputation. So
Barbara spends $5,000 on advertisements to preserve this reputation.
How will Barbara's businessowners policy address this expense? -
CORRECT ANSWER: it covers this expense if the identity fraud
expense coverage endorsement is attached.
,The identity fraud expense coverage endorsement adds a $5,000 limit for
advertising expenses to restore a business reputation.
QUESTION: Maurice's personal auto policy (PAP) on the family car
lists him as the named insured. His wife, Sondra, is involved in an
accident while using the car as a charity organization volunteer. The
injured paties sue Maurice, Sondra, and the charity organization. Which
is insured under the policy's liability coverage? -
CORRECT ANSWER: Maurice, Sondra, and the Charity Organization
Sondra is a named insured by virtue of her marriage to Maurice, who is
named in the policy. Charity Orgranization is an insured because it may
be held liable for an insured's use of the named insured's covered auto.
QUESTION: Jeffrey has violated a cease and desist order of the
Commissioner. After notice and hearing, what is the maximum amount
he may be fined? -
CORRECT ANSWER: $50,000 for each violation
, An individual who violates a cease and desist order of the Commissioner
may be fined up to $50,000 dollars for each violation or may have his or
her license suspended or revoked.
QUESTION: What does an insurance company require from an insured
before it will determine whether the policy covers a loss? -
CORRECT ANSWER: Proof of Loss Statement
An insured's proof of loss statement is required by an insurance
company before it will determine whether the policy covers the loss.
QUESTION: Which of the following provides an insurance company
with a fairly accurate means of determining the likelihood of a particular
event occurring? -
CORRECT ANSWER: The law of large numbers
WITH Answers 100% Pass
Riley's coupe is insured with a personal auto policy that includes
liability, uninsured motorists, and other-than-collission coverages. He
buys a new sedan and wants collission coverage on it. Which statement
is true about this coverage? -
CORRECT ANSWER: He must notify the insurer about the newly
acquired sedan within four days.
Because Riley's coupe does not have collission coverage, he must report
the newly acquired sedan to his insurer within four days of its acquisition
to get collision coverage for it.
QUESTION: Dairy products in Bette's ice cream shop would be
destroyed if her freezers failed for more than a few hours. So Bette
added the utility services-direct damage endorsement, scheduling
,overhead transmission lines, to her businessowners policy. When the
shop losses electrical power due to a mechanical breakdown of the utility
company's equipment: -
CORRECT ANSWER: Bette's loss will not be covered because
mechanical breakdown is not a covered peril
For coverage to apply, the service interruption must result from damage
to utility company property caused by a covered cause of loss.
Mechanical breakdown is not a covered peril.
QUESTION: An imposter pretends to be Barbara, the president of a
succesful company, while engaging in scandalous activities. These
activities attract media attention and threaten the firm's reputation. So
Barbara spends $5,000 on advertisements to preserve this reputation.
How will Barbara's businessowners policy address this expense? -
CORRECT ANSWER: it covers this expense if the identity fraud
expense coverage endorsement is attached.
,The identity fraud expense coverage endorsement adds a $5,000 limit for
advertising expenses to restore a business reputation.
QUESTION: Maurice's personal auto policy (PAP) on the family car
lists him as the named insured. His wife, Sondra, is involved in an
accident while using the car as a charity organization volunteer. The
injured paties sue Maurice, Sondra, and the charity organization. Which
is insured under the policy's liability coverage? -
CORRECT ANSWER: Maurice, Sondra, and the Charity Organization
Sondra is a named insured by virtue of her marriage to Maurice, who is
named in the policy. Charity Orgranization is an insured because it may
be held liable for an insured's use of the named insured's covered auto.
QUESTION: Jeffrey has violated a cease and desist order of the
Commissioner. After notice and hearing, what is the maximum amount
he may be fined? -
CORRECT ANSWER: $50,000 for each violation
, An individual who violates a cease and desist order of the Commissioner
may be fined up to $50,000 dollars for each violation or may have his or
her license suspended or revoked.
QUESTION: What does an insurance company require from an insured
before it will determine whether the policy covers a loss? -
CORRECT ANSWER: Proof of Loss Statement
An insured's proof of loss statement is required by an insurance
company before it will determine whether the policy covers the loss.
QUESTION: Which of the following provides an insurance company
with a fairly accurate means of determining the likelihood of a particular
event occurring? -
CORRECT ANSWER: The law of large numbers
