CLAIMS ADJUSTER LICENSING
COMPREHENSIVE EXAM STUDY GUIDE
WITH COMPLETE SOLUTIONS
●● According to the "Definitions" section of a Personal Auto Policy,
which of the following is NOT "occupying" her vehicle?
Answer: Rachel leaves her cat in her car, with the windows crack, while
she goes into the drugstore to fill a prescription
●● A newly acquired auto must:
Answer: weigh less than 10,000 pounds
●● Damian has a PAP with Comprehensive Coverage and Miscellaneous
Vehicle Coverage. When he gets a bonus at work, he decides to buy a
new car. Three weeks later, while driving his new Tesla, Damian
swerves to avoid a squirrel and hits a telephone pole. He files a claim
with his insurance, explaining that he was going to add the car to his
PAP on the following Monday. Why might his insurance deny his claim?
Answer: Damian waited too long to inform his insurance company of his
purchase.
●● Todd just bought a new car. He does not currently have collision
coverage, but would like to get it for his new car. In order to do this, he
must notify his insurer within ________ days of getting the car.
,Answer: 4
●● Which if the following would NOT be covered under a Personal
Auto Policy (PAP)?
Answer: An 18-wheeler with a driver and a passenger
●● Norris borrows Arnold's truck to pick up some lumber from the
hardware store. On the way to the store, Norris collides with a car,
injuring the three people inside. The driver suffers $15,000 in injuries,
one passenger suffers $25,000, and the other passenger suffers $20,000.
Norris has a PAP with liability limits of 50/100/50, and Arnold's policy
has liability limits of 25/50/10. How much will the primary policy pay
for the injuries?
Answer: $50,000
●● The insuring agreement for Part A -Liability in a personal auto policy
states that:
Answer: the insurer has the right to settle liability cases out of court
●● Nancy and Drew borrow Joe's car so they can have a picnic at the old
water tower. On their way to the picnic, Drew accidentally rear-ends Mr.
Jackley, causing $2,900 in damage. Whose liability insurance will pay
first for the damages?
Answer: Joe's
, ●● Mark is driving along and looking for an address on the East side of
Walker Street. As he squints to see the numbers posted on the buildings,
he plows into the back of a car waiting at a stoplight. Both the driver and
the passenger of the struck car are injured. The driver suffers $60,000 in
bodily injury, the passenger suffers $55,000 in bodily injury, and the
vehicle Mark hit sustains $30,000 in damage. Mark has liability
coverage with split limits of 50/100/25. How much will Mark be
responsible for out-of-pocket after this accident?
Answer: $20,000 ($10,000 + $5,000 + $5,000 = $20,000)
●● One day after buying a nice used car, Ian drives to Cheryl's house to
ask her out. On the way, a dog runs out in front of him. Ian veers to
avoid the animal, but loses control of his car and crashes into a ditch,
causing $16,500 in damage to the car. To make matters worse, Ian hasn't
even reported the purchase to his insurer yet, and he doesn't have
Collision or Comprehensive coverage. However, Ian need not fret too
much. Why is that?
Answer: Comprehensive and Collision coverages automatically apply to
his newly purchased car for the first 4 days after purchase.
●● Matthew works for Barry John Coal Company. One day, when all the
work trucks are busy, Matthew's boss asks him to use his own truck to
deliver a load of coal to a customer. On the way, Matt gets distracted
looking at directions and swerves into oncoming traffic, causing a
serious accident. Why might Matt's PAP liability insurer deny coverage
for the damage Matt caused?
COMPREHENSIVE EXAM STUDY GUIDE
WITH COMPLETE SOLUTIONS
●● According to the "Definitions" section of a Personal Auto Policy,
which of the following is NOT "occupying" her vehicle?
Answer: Rachel leaves her cat in her car, with the windows crack, while
she goes into the drugstore to fill a prescription
●● A newly acquired auto must:
Answer: weigh less than 10,000 pounds
●● Damian has a PAP with Comprehensive Coverage and Miscellaneous
Vehicle Coverage. When he gets a bonus at work, he decides to buy a
new car. Three weeks later, while driving his new Tesla, Damian
swerves to avoid a squirrel and hits a telephone pole. He files a claim
with his insurance, explaining that he was going to add the car to his
PAP on the following Monday. Why might his insurance deny his claim?
Answer: Damian waited too long to inform his insurance company of his
purchase.
●● Todd just bought a new car. He does not currently have collision
coverage, but would like to get it for his new car. In order to do this, he
must notify his insurer within ________ days of getting the car.
,Answer: 4
●● Which if the following would NOT be covered under a Personal
Auto Policy (PAP)?
Answer: An 18-wheeler with a driver and a passenger
●● Norris borrows Arnold's truck to pick up some lumber from the
hardware store. On the way to the store, Norris collides with a car,
injuring the three people inside. The driver suffers $15,000 in injuries,
one passenger suffers $25,000, and the other passenger suffers $20,000.
Norris has a PAP with liability limits of 50/100/50, and Arnold's policy
has liability limits of 25/50/10. How much will the primary policy pay
for the injuries?
Answer: $50,000
●● The insuring agreement for Part A -Liability in a personal auto policy
states that:
Answer: the insurer has the right to settle liability cases out of court
●● Nancy and Drew borrow Joe's car so they can have a picnic at the old
water tower. On their way to the picnic, Drew accidentally rear-ends Mr.
Jackley, causing $2,900 in damage. Whose liability insurance will pay
first for the damages?
Answer: Joe's
, ●● Mark is driving along and looking for an address on the East side of
Walker Street. As he squints to see the numbers posted on the buildings,
he plows into the back of a car waiting at a stoplight. Both the driver and
the passenger of the struck car are injured. The driver suffers $60,000 in
bodily injury, the passenger suffers $55,000 in bodily injury, and the
vehicle Mark hit sustains $30,000 in damage. Mark has liability
coverage with split limits of 50/100/25. How much will Mark be
responsible for out-of-pocket after this accident?
Answer: $20,000 ($10,000 + $5,000 + $5,000 = $20,000)
●● One day after buying a nice used car, Ian drives to Cheryl's house to
ask her out. On the way, a dog runs out in front of him. Ian veers to
avoid the animal, but loses control of his car and crashes into a ditch,
causing $16,500 in damage to the car. To make matters worse, Ian hasn't
even reported the purchase to his insurer yet, and he doesn't have
Collision or Comprehensive coverage. However, Ian need not fret too
much. Why is that?
Answer: Comprehensive and Collision coverages automatically apply to
his newly purchased car for the first 4 days after purchase.
●● Matthew works for Barry John Coal Company. One day, when all the
work trucks are busy, Matthew's boss asks him to use his own truck to
deliver a load of coal to a customer. On the way, Matt gets distracted
looking at directions and swerves into oncoming traffic, causing a
serious accident. Why might Matt's PAP liability insurer deny coverage
for the damage Matt caused?
