NH Adjuster for Property & Casualty Exam Questions and Answers 100% Pass

NH Adjuster for Property & Casualty Exam Questions and Answers 100% Pass Joe's 21-pound cat runs into the neighbor's yard and severely scratches the neighbor's arms and face. Which of the following would respond to the neighbor's emergency room bills? - Answer- Joe's homeowners policy under the Personal Liability section Bob is purchasing a commercial property policy to cover contents of a building valued at $100,000. The policy includes an 80 percent coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, Bob should purchase a policy with minimum limits of at least$80,000 - Answer- $80,000 :: The value of the covered property is ($100,000) times 80% = $80,000. Which of the following best describes the purpose of the "insuring agreement" contained in an insurance policy? - Answer- To the insurer's promise to pay in case of a loss. :: The insuring agreement section of the policy contains the insurer's promise to pay. This is the section where the "contractual agreement" is located. An insured building suffers a total loss as a result of fire or lightning without criminal fault of the insured. The insurance company is required to pay: - Answer- The building limit insured by the policy :: The insurer is required to pay the total limit of the policy on the building. Any misinformation provided by an applicant which is such that the insurance company would not have issued a policy if the true facts were known is: - Answer- Material Misrepresentation :: This statement defines material misrepresentation, which is deliberately withholding an important fact that would have a bearing on the acceptability and/or pricing of the risk. The insured has a communication failure at his premises due to a lightning strike at the phone company. The insured's phone system is damaged and he is out of business for four days. Which endorsement is necessary to provide coverage for the loss of business income - Answer- Utility Services - Time Element :: Utility Services - Time Element endorsement would cover the loss of business income in this example if the phone system was listed on the endorsement and the cause of the loss was covered by the policy. Which of the following coverages would apply to a rental car used by an insured executive while on vacation? - Answer- Coverage for Non-Owned Autos :: whether it be a rental car or a vehicle belonging to a friend Jim drives Linda's car. Both Jim and Linda have a personal auto policy. Which of the following statements is CORRECT concerning coverage if Jim causes an accident? - Answer- The policy Linda owns is primary and the policy Jim owns is excess. :: Insurance follows the car. Therefore, Linda's policy would pay first and Jim's policy would be excess. An interline endorsement used in a Commercial Package Policy (CPP): I. May be mandatory or optional. II. Is an endorsement that applies to more than one line of insurance. - Answer- Both I and II :: Interline endorsements are used in the CPP to simplify coverages and conditions among many different forms. Many of the same policy conditions apply to the various coverage parts. Under the definitions section of the CGL policy, the term "your product" does not include: - Answer- Vending machines rented to or located for use by others.. :: A vending machine rented for use by others is not considered to be "your product." Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to the ground, along with all the contents located inside. Which of the following items would be covered under Coverage C of Jack's DP-3 policy? - Answer- Jack's appliances :: Coverage C is for personal property (contents). Since this is Jack's policy, it will cover his appliances but nothing belonging to Tanya (her renters insurance would cover it). The damage to the structure would be covered under Coverage A of Jack's policy. You have a 15 x 28 room with a 10 ft. ceiling. It costs $.50 per square foot to clean and prep the room and another $.50 per square foot for painting the room. How much will it cost to prep and paint the room and ceiling? - Answer- The room is 15 X 28 with a ceiling height of 10 feet. The ceiling area is 420 sq. feet The wall area is (2 walls @ 30 feet) and (two walls @ 56 feet). This is a total of 86 feet times the height of the ceiling which is 10 feet = 860 square feet plus the ceiling of 420 equals a total of 1280 square feet. $1.00 times 1280 square feet equals $1,280. Which of the following is NOT a claim settlement option in a property loss? - Answer- The correct answer is: Pay market value only..