OTL EXAM CHAPTER 7 questions well
answered to pass
Which statement describes subrogation? - correct answer ✔✔The insurer recovers a financial
loss from a third party who was at fault.
Which situation includes an indirect loss? - correct answer ✔✔Betty's home is damaged by fire
and she needs to stay in a hotel while the damage is repaired.
When an insured property is not destroyed, but the insurer reimburses the insured for the
damaged property as if it were a total loss, who owns the salvage? - correct answer ✔✔The
insurer
Which type of adjuster may be hired by insureds to represent their interests during a claim? -
correct answer ✔✔Public adjuster
Which example is that of an automobile claim being prejudiced? - correct answer ✔✔The
insured delays reporting the claim and tries to settle the claim themselves directly with the third
party.
What is meant by a stated amount coinsurance clause? - correct answer ✔✔A coinsurance
clause that is stated as a specific dollar amount
A liability policy written on which basis provides the broadest scope of coverage? - correct
answer ✔✔Those written on an occurrence basis
What does the CIAA code of ethics and fair practice policies do? - correct answer ✔✔It
promotes a uniform standard of conduct in the adjustment of claims
answered to pass
Which statement describes subrogation? - correct answer ✔✔The insurer recovers a financial
loss from a third party who was at fault.
Which situation includes an indirect loss? - correct answer ✔✔Betty's home is damaged by fire
and she needs to stay in a hotel while the damage is repaired.
When an insured property is not destroyed, but the insurer reimburses the insured for the
damaged property as if it were a total loss, who owns the salvage? - correct answer ✔✔The
insurer
Which type of adjuster may be hired by insureds to represent their interests during a claim? -
correct answer ✔✔Public adjuster
Which example is that of an automobile claim being prejudiced? - correct answer ✔✔The
insured delays reporting the claim and tries to settle the claim themselves directly with the third
party.
What is meant by a stated amount coinsurance clause? - correct answer ✔✔A coinsurance
clause that is stated as a specific dollar amount
A liability policy written on which basis provides the broadest scope of coverage? - correct
answer ✔✔Those written on an occurrence basis
What does the CIAA code of ethics and fair practice policies do? - correct answer ✔✔It
promotes a uniform standard of conduct in the adjustment of claims
