CT ADJUSTER EXAM PRACTICE QUESTIONS
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? - Answers - 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.
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: - Answers - 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.
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? - Answers
- 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.
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? - Answers - 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.
Jeffrey has violated a cease and desist order of the Commissioner. After notice and
hearing, what is the maximum amount he may be fined? - Answers - $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.
What does an insurance company require from an insured before it will determine
whether the policy covers a loss? - Answers - 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.
The BOP's property damage liability coverage covers the insured's tort liability for
damage to leased premesis from fire or explosion. This is fire legal liability coverage.
Toni teaches art classes in her home for small groups of neighbors. The classes are
infrequent and are not regularly scheduled. Toni earns a few thousand dollars from
these classes every year. Which is most suitable for Toni's business? - Answers -
Permitted incidental occupancies endorsement
The permitted incidental occupanices endorsement is narrower than the home busienss
insurance coverage endorsement. It covers incidental types of business conducted on
the residence premesis, such as offices, schools, and studios.
An employer that is unable to purchase workers compensation insurance in the state's
voluntary private market may be able to procure it through: - Answers - The state's
residual market facility
Employers that are unable to purchase workers compensation insurance in the
voluntary private market can buy it from the state residual market facility. Surplus lines
insurance is coverage that is unavailable by any insurer in a state and therefore must be
procured through a non-admitted insurer.
Melanie is licensed in Connecticut as an adjuster. She is charged with embezzlement in
Texas on June 1. She must notify the Department of Insurance about the charge no
later than - Answers - June 30th
An adjuster must notify the department of any civil or criminal prosecutions against the
adjuster within 30 days.
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - Answers - Contracts of adhesion
Most insurance contracts are contracts of adhesion because the policy is drafted by the
insurer and little if any negotiation is normally available with respect to the policy's
wording
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? - Answers - 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.
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: - Answers - 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.
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? - Answers
- 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.
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? - Answers - 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.
Jeffrey has violated a cease and desist order of the Commissioner. After notice and
hearing, what is the maximum amount he may be fined? - Answers - $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.
What does an insurance company require from an insured before it will determine
whether the policy covers a loss? - Answers - 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.
The BOP's property damage liability coverage covers the insured's tort liability for
damage to leased premesis from fire or explosion. This is fire legal liability coverage.
Toni teaches art classes in her home for small groups of neighbors. The classes are
infrequent and are not regularly scheduled. Toni earns a few thousand dollars from
these classes every year. Which is most suitable for Toni's business? - Answers -
Permitted incidental occupancies endorsement
The permitted incidental occupanices endorsement is narrower than the home busienss
insurance coverage endorsement. It covers incidental types of business conducted on
the residence premesis, such as offices, schools, and studios.
An employer that is unable to purchase workers compensation insurance in the state's
voluntary private market may be able to procure it through: - Answers - The state's
residual market facility
Employers that are unable to purchase workers compensation insurance in the
voluntary private market can buy it from the state residual market facility. Surplus lines
insurance is coverage that is unavailable by any insurer in a state and therefore must be
procured through a non-admitted insurer.
Melanie is licensed in Connecticut as an adjuster. She is charged with embezzlement in
Texas on June 1. She must notify the Department of Insurance about the charge no
later than - Answers - June 30th
An adjuster must notify the department of any civil or criminal prosecutions against the
adjuster within 30 days.
The fact that insurance policy language is written by an insurance company and is
nonnegotiable makes insurance policies: - Answers - Contracts of adhesion
Most insurance contracts are contracts of adhesion because the policy is drafted by the
insurer and little if any negotiation is normally available with respect to the policy's
wording
