INSURANCE ADJUSTER FINAL EXAM ACTUAL
QUESTIONS AND ANSWERS SURE A+
✔✔an insurer formed under the law of a state of the United States other than the state
where it is licensed, domiciled and chartered is: - ✔✔a Foreign insurer
✔✔careless driving because the driver knows he or she is insured is a: - ✔✔Morale
hazard
✔✔oily rags left to accumulate in the garage is a: - ✔✔physical hazard
✔✔insurance policies are contracts of adhesion, which means: - ✔✔terms of the
contract are drawn up by the insurer and the insured simply adheres to the terms
✔✔It is assumed that any oral agreements made before contract formation were
incorporated into the written contract. Once formed, earlier oral evidence will not be
admitted in court to change or contradict the contract. This is known as: - ✔✔Parol
Evidence Rule
✔✔The two major types of insurers in the private sector are: - ✔✔Stock and Mutual
companies
, ✔✔temporary contract of insurance that commits the insurer before before a policy is
issued is called a: - ✔✔binder
✔✔a term that blocks all attempts to change conduct or reassert a right previously
waived, and it usually applies after the other party has begun to rely on the conduct or
waiver is known as: - ✔✔estoppel
✔✔property and liability insurers use different marketing methods. Which of the
following are features of the independent agency system? - ✔✔Agents can represent
one or more insurers AND Agent owns renewal rights to policies
✔✔Concealment is failure of the insurance applicant to reveal a material fact to the
insurer. Which of the following statements must be proved before the insurer can deny a
claim on the basis of concealment? - ✔✔a concealed fact was known to be material by
the insured AND the insured intended to defraud the insurer
✔✔who is considered the first party to an insurance contract? - ✔✔the Insured
✔✔the insuring agreement summarizes the insurers obligations and conditions for loss
payment. Which of the following is/are types of insuring agreements? - ✔✔open peril
policy
✔✔when a person installs burglar bars and a fire alarm system, what method of
managing risks has been undertaken? - ✔✔Reduction
✔✔All of the following could be covered under a named insured's personal auto policy,
except: - ✔✔A private passenger vehicle owned by the named insured's spouse who
moved to a separate residence 5 months ago (b/c policy only covers up to 90 days;
she's been gone 5 months)
✔✔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
✔✔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
QUESTIONS AND ANSWERS SURE A+
✔✔an insurer formed under the law of a state of the United States other than the state
where it is licensed, domiciled and chartered is: - ✔✔a Foreign insurer
✔✔careless driving because the driver knows he or she is insured is a: - ✔✔Morale
hazard
✔✔oily rags left to accumulate in the garage is a: - ✔✔physical hazard
✔✔insurance policies are contracts of adhesion, which means: - ✔✔terms of the
contract are drawn up by the insurer and the insured simply adheres to the terms
✔✔It is assumed that any oral agreements made before contract formation were
incorporated into the written contract. Once formed, earlier oral evidence will not be
admitted in court to change or contradict the contract. This is known as: - ✔✔Parol
Evidence Rule
✔✔The two major types of insurers in the private sector are: - ✔✔Stock and Mutual
companies
, ✔✔temporary contract of insurance that commits the insurer before before a policy is
issued is called a: - ✔✔binder
✔✔a term that blocks all attempts to change conduct or reassert a right previously
waived, and it usually applies after the other party has begun to rely on the conduct or
waiver is known as: - ✔✔estoppel
✔✔property and liability insurers use different marketing methods. Which of the
following are features of the independent agency system? - ✔✔Agents can represent
one or more insurers AND Agent owns renewal rights to policies
✔✔Concealment is failure of the insurance applicant to reveal a material fact to the
insurer. Which of the following statements must be proved before the insurer can deny a
claim on the basis of concealment? - ✔✔a concealed fact was known to be material by
the insured AND the insured intended to defraud the insurer
✔✔who is considered the first party to an insurance contract? - ✔✔the Insured
✔✔the insuring agreement summarizes the insurers obligations and conditions for loss
payment. Which of the following is/are types of insuring agreements? - ✔✔open peril
policy
✔✔when a person installs burglar bars and a fire alarm system, what method of
managing risks has been undertaken? - ✔✔Reduction
✔✔All of the following could be covered under a named insured's personal auto policy,
except: - ✔✔A private passenger vehicle owned by the named insured's spouse who
moved to a separate residence 5 months ago (b/c policy only covers up to 90 days;
she's been gone 5 months)
✔✔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
✔✔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
