Adjuster Pro Texas: Questions With Evidence-
Based Solutions
All of the following pieces of information can be found in the
conditions section of an insurance policy EXCEPT: Correct Answer
- Causes of loss that are not covered
Which of the following best defines the principle of indemnity?
Correct Answer - After a loss, the insured should be restored to
his approximate financial condition before the loss
SureTrust Insurance was founded and operates in Texas. In Texas,
Suretrust is considered Correct Answer - a domestic insurer
What is a reserve, in insurance terms? Correct Answer - A pool
of collected premiums that the insurer sets aside to pay claims
Which of the following would you find in the Conditions section of
an insurance policy? Correct Answer - The insured's duty after
a loss
Which of the following is found in the declarations page of an
insurance policy? Correct Answer - The name of the insured
party
Which of the following refers to being restored to the financial
condition you were in before a loss? Correct Answer -
Indemnification
Dr. Nelson routinely schedules her patients for lab tests that they
dont need so she can charge their insurers for more money. Dr.
Nelson is: Correct Answer - committing health insurance fraud
,Six Starts Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they are a
little short on money and decide to save money by not purchasing
insurance on their new properties. Six Stars is practicing: Correct
Answer - Risk retention
Which of the following people committed soft fraud? Correct
Answer - Rafael accidentally slipped on a wet floor at the
supermarket. Although his only injury was a sprained ankle, he
claimed he had back and neck pain when he sued the supermarket
in an effort to get more money in the settlement.
When a car stops short in front of Mike's car, he manages to hit the
brakes in time and avoids a collision. To Mike's surprise, the other
driver then throws the car into reverse and backs into Mike's car!
The other drivers actions are an example of: Correct Answer -
Hard fraud
When Louise goes online and fills out phony applications with XYZ
Auto Insurance in order to print the temporary insurance cards and
sell them for a profit on the black market, she is: Correct Answer -
Committing hard fraud
Lucy has insurance on an expensive necklace she likes to wear to
work every day. After work, she takes it off and leaves it in her car's
cupholder so she can put it back on in the morning on her way to
work. Lucy's behavior would be considered a: Correct Answer -
Morale hazard
When an insurer issues an insurance policy, the actual item, person,
or organization that is being insured is called the: Correct Answer
- Risk
,Which of the following situations does not involve an instance of
"pure risk" Correct Answer - Loss of money invested in the
stock market
Which of the following is an example of how some insurers are
fighting back against insurance fraud? Correct Answer -
Starting fraud busting units staffed with former detectives and
police officers
Which of the following is NOT a form of insurance fraud? Correct
Answer - Increasing your insurance coverage when you think a
loss is likely
Steve has just purchased a wedding ring for his new bride. If
something were to happen to the ring, he'd be out of a lot of money,
so he purchases an insurance policy. He is able to do this because:
Correct Answer - The ring is a pure risk
Haley takes a bottle of water into a store, pours some of it on the
floor when no one is looking, and then pretends to slip and fall. She
cries out for help in apparent pain until someone comes to her aid.
She then sues the store for her fake injury in an effort to collect an
insurance settlement. What has Haley committed? Correct Answer
- Hard fraud
After an earthquake, Jake's home is still standing, but it is a little
shaken. The damage is not extensive but Jake wants to cash in on the
situation, so he takes a sledgehammer to some of his extra
belongings and adds them to his claim. Jake has committed:
Correct Answer - Property insurance fraud
Which of the following is an example of a hazard? Correct Answer
- Sandra's home is in an area of Los Angeles that is often hit by
earthquakes
, Risk avoidance is a risk management technique that: Correct
Answer - Eliminates risk
An "occurrence" is defined as: Correct Answer - An unexpected
event that causes loss
When Sally applies for an auto policy, her agent issues her a _______
so that she can benefit from insurance protection while he
underwrites the policy. Correct Answer - Binder
Jane's shed burns to the ground during a tornado, when the high
winds break a wall of the shed, knocking over a lantern inside. What
is the proximate cause of the loss? Correct Answer - Wind
During a storm, lightning strikes a tree in Harry's yard and starts a
fire that spreads to his shed where he keeps all his equipment for
his landscaping business. In addition to the shed, Harry has to
purchase all new equipment to stay in business. The cost to replace
the equipment would be considered: Correct Answer - A direct
loss
Clark is filling out an application for an insurance policy. The
application asks for his birth date, and Clark writes 1/24/67. His
actual birthday is 1/24/63, but he likes to appear younger so he
uses a different date. This would be called: Correct Answer -
Misrepresentation
Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year,
and his insurer has done nothing about it. When Jason gets into an
accident and files a claim, which of the following is most likely to
happen? Correct Answer - The insurer will pay the claim
Based Solutions
All of the following pieces of information can be found in the
conditions section of an insurance policy EXCEPT: Correct Answer
- Causes of loss that are not covered
Which of the following best defines the principle of indemnity?
Correct Answer - After a loss, the insured should be restored to
his approximate financial condition before the loss
SureTrust Insurance was founded and operates in Texas. In Texas,
Suretrust is considered Correct Answer - a domestic insurer
What is a reserve, in insurance terms? Correct Answer - A pool
of collected premiums that the insurer sets aside to pay claims
Which of the following would you find in the Conditions section of
an insurance policy? Correct Answer - The insured's duty after
a loss
Which of the following is found in the declarations page of an
insurance policy? Correct Answer - The name of the insured
party
Which of the following refers to being restored to the financial
condition you were in before a loss? Correct Answer -
Indemnification
Dr. Nelson routinely schedules her patients for lab tests that they
dont need so she can charge their insurers for more money. Dr.
Nelson is: Correct Answer - committing health insurance fraud
,Six Starts Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they are a
little short on money and decide to save money by not purchasing
insurance on their new properties. Six Stars is practicing: Correct
Answer - Risk retention
Which of the following people committed soft fraud? Correct
Answer - Rafael accidentally slipped on a wet floor at the
supermarket. Although his only injury was a sprained ankle, he
claimed he had back and neck pain when he sued the supermarket
in an effort to get more money in the settlement.
When a car stops short in front of Mike's car, he manages to hit the
brakes in time and avoids a collision. To Mike's surprise, the other
driver then throws the car into reverse and backs into Mike's car!
The other drivers actions are an example of: Correct Answer -
Hard fraud
When Louise goes online and fills out phony applications with XYZ
Auto Insurance in order to print the temporary insurance cards and
sell them for a profit on the black market, she is: Correct Answer -
Committing hard fraud
Lucy has insurance on an expensive necklace she likes to wear to
work every day. After work, she takes it off and leaves it in her car's
cupholder so she can put it back on in the morning on her way to
work. Lucy's behavior would be considered a: Correct Answer -
Morale hazard
When an insurer issues an insurance policy, the actual item, person,
or organization that is being insured is called the: Correct Answer
- Risk
,Which of the following situations does not involve an instance of
"pure risk" Correct Answer - Loss of money invested in the
stock market
Which of the following is an example of how some insurers are
fighting back against insurance fraud? Correct Answer -
Starting fraud busting units staffed with former detectives and
police officers
Which of the following is NOT a form of insurance fraud? Correct
Answer - Increasing your insurance coverage when you think a
loss is likely
Steve has just purchased a wedding ring for his new bride. If
something were to happen to the ring, he'd be out of a lot of money,
so he purchases an insurance policy. He is able to do this because:
Correct Answer - The ring is a pure risk
Haley takes a bottle of water into a store, pours some of it on the
floor when no one is looking, and then pretends to slip and fall. She
cries out for help in apparent pain until someone comes to her aid.
She then sues the store for her fake injury in an effort to collect an
insurance settlement. What has Haley committed? Correct Answer
- Hard fraud
After an earthquake, Jake's home is still standing, but it is a little
shaken. The damage is not extensive but Jake wants to cash in on the
situation, so he takes a sledgehammer to some of his extra
belongings and adds them to his claim. Jake has committed:
Correct Answer - Property insurance fraud
Which of the following is an example of a hazard? Correct Answer
- Sandra's home is in an area of Los Angeles that is often hit by
earthquakes
, Risk avoidance is a risk management technique that: Correct
Answer - Eliminates risk
An "occurrence" is defined as: Correct Answer - An unexpected
event that causes loss
When Sally applies for an auto policy, her agent issues her a _______
so that she can benefit from insurance protection while he
underwrites the policy. Correct Answer - Binder
Jane's shed burns to the ground during a tornado, when the high
winds break a wall of the shed, knocking over a lantern inside. What
is the proximate cause of the loss? Correct Answer - Wind
During a storm, lightning strikes a tree in Harry's yard and starts a
fire that spreads to his shed where he keeps all his equipment for
his landscaping business. In addition to the shed, Harry has to
purchase all new equipment to stay in business. The cost to replace
the equipment would be considered: Correct Answer - A direct
loss
Clark is filling out an application for an insurance policy. The
application asks for his birth date, and Clark writes 1/24/67. His
actual birthday is 1/24/63, but he likes to appear younger so he
uses a different date. This would be called: Correct Answer -
Misrepresentation
Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year,
and his insurer has done nothing about it. When Jason gets into an
accident and files a claim, which of the following is most likely to
happen? Correct Answer - The insurer will pay the claim
