Adjuster Pro 4 40 – Questions With Objective
Answers
Which of the following BEST describes the insurance provided by
residual market insurance programs? Correct Answer -
Zane's farmhouse was burglarized. The thieves stole his $4,000 sofa,
his $3,000 silverware collection, and his $5,000 watch. Under Zane's
farm insurance policy, which has a Coverage A limit of $150,000,
how much can he expect to receive in indemnification for this loss,
assuming there are no endorsements and ignoring any deductibles?
Correct Answer - $9,000
Acme Construction is in charge of building a new subdivision in the
city, and hires Jim's Masonry to lay the foundations. As part of the
deal, Jim's Masonry is required to purchase Owners & Contractors
Protective Liability to protect Acme Construction in the event Jim
makes a mistake that results in a liability claim. Who will be listed as
the named insured on this policy? Correct Answer -
John has purchased a homeowners insurance policy with a
percentage deductible based on the total limit of insurance for his
home. John insures his home for $600,000, and the policy includes a
3% deductible. A huge thunderstorm passes through one night and
blows the roof off his house. The insurance company estimates that
covered damage totals $80,000. How much indemnification should
John expect for the losses to his roof? Correct Answer -
$62,000
Which of the following statements regarding health insurance is
TRUE? Correct Answer - To be covered, members of an HMO
must receive treatment for their medical conditions within the
established network of healthcare providers.
,Which of the following statements best describes the Law of Large
Numbers? Correct Answer -
Which of the following is FALSE about Workers' Compensation
insurance? Correct Answer -
ABC Construction recently won a bid to reconstruct the town park.
After a few months of work, ABC Construction realizes they won't
make any money on the project and walk away, leaving the park
half-finished. Luckily, the town had required ABC Construction to
hold a surety bond from Parker Sureties, who can now step in to
finance the completion of the job. Which of the following statements
is TRUE? Correct Answer -
Which of the following refers to being restored to the financial
condition you were in before a loss? Correct Answer -
The Valuable Papers and Records floater can cover losses to all of
the following, EXCEPT: Correct Answer - securities.
Which of the following incidents would a liability insurance policy
cover? Correct Answer -
Which of the following highlights a major difference between an
insurance contract and a surety bond? Correct Answer -
Which of the following coverage options does NOT waive the
coinsurance requirement in a commercial property policy?
Correct Answer -
The purpose of the principle of indemnity is: Correct Answer -
to prevent an insured from making a profit on a loss.
, The open enrollment period for a Medicare Supplement policy starts
when a person turns ____ and enrolls in Medicare, and lasts for ____.
Correct Answer -
Which of the following statements is FALSE? Correct Answer -
Which of the following can NOT cover the death of the insured's cow
due to a lightning strike? Correct Answer -
Which building would fall under a General Property Form flood
insurance policy? Correct Answer -
Which of the following best describes how losses are valued under a
Commercial Crime policy? Correct Answer - Money is valued at
face value; securities are set at their value on the day the loss is
discovered; and other property is valued at the lesser of the cost to
repair or replace.
Which of the following would NOT result in disciplinary action from
the Department of Financial Services? Correct Answer -
States that require all businesses to purchase workers'
compensation insurance are called: Correct Answer -
After a tornado completely destroys the roof and windows of Calah's
business building, she finds that there are new codes in place
requiring thicker shingles and reinforced window frames. Calah
insured her business using a replacement cost policy. Which
commercial property coverage can help Calah with the added costs
of bringing her building up to code? Correct Answer -
All of the following people may be allowed to perform official wind
mitigation inspections that meet the requirements for insurance
premium discounts, except a: Correct Answer -
Answers
Which of the following BEST describes the insurance provided by
residual market insurance programs? Correct Answer -
Zane's farmhouse was burglarized. The thieves stole his $4,000 sofa,
his $3,000 silverware collection, and his $5,000 watch. Under Zane's
farm insurance policy, which has a Coverage A limit of $150,000,
how much can he expect to receive in indemnification for this loss,
assuming there are no endorsements and ignoring any deductibles?
Correct Answer - $9,000
Acme Construction is in charge of building a new subdivision in the
city, and hires Jim's Masonry to lay the foundations. As part of the
deal, Jim's Masonry is required to purchase Owners & Contractors
Protective Liability to protect Acme Construction in the event Jim
makes a mistake that results in a liability claim. Who will be listed as
the named insured on this policy? Correct Answer -
John has purchased a homeowners insurance policy with a
percentage deductible based on the total limit of insurance for his
home. John insures his home for $600,000, and the policy includes a
3% deductible. A huge thunderstorm passes through one night and
blows the roof off his house. The insurance company estimates that
covered damage totals $80,000. How much indemnification should
John expect for the losses to his roof? Correct Answer -
$62,000
Which of the following statements regarding health insurance is
TRUE? Correct Answer - To be covered, members of an HMO
must receive treatment for their medical conditions within the
established network of healthcare providers.
,Which of the following statements best describes the Law of Large
Numbers? Correct Answer -
Which of the following is FALSE about Workers' Compensation
insurance? Correct Answer -
ABC Construction recently won a bid to reconstruct the town park.
After a few months of work, ABC Construction realizes they won't
make any money on the project and walk away, leaving the park
half-finished. Luckily, the town had required ABC Construction to
hold a surety bond from Parker Sureties, who can now step in to
finance the completion of the job. Which of the following statements
is TRUE? Correct Answer -
Which of the following refers to being restored to the financial
condition you were in before a loss? Correct Answer -
The Valuable Papers and Records floater can cover losses to all of
the following, EXCEPT: Correct Answer - securities.
Which of the following incidents would a liability insurance policy
cover? Correct Answer -
Which of the following highlights a major difference between an
insurance contract and a surety bond? Correct Answer -
Which of the following coverage options does NOT waive the
coinsurance requirement in a commercial property policy?
Correct Answer -
The purpose of the principle of indemnity is: Correct Answer -
to prevent an insured from making a profit on a loss.
, The open enrollment period for a Medicare Supplement policy starts
when a person turns ____ and enrolls in Medicare, and lasts for ____.
Correct Answer -
Which of the following statements is FALSE? Correct Answer -
Which of the following can NOT cover the death of the insured's cow
due to a lightning strike? Correct Answer -
Which building would fall under a General Property Form flood
insurance policy? Correct Answer -
Which of the following best describes how losses are valued under a
Commercial Crime policy? Correct Answer - Money is valued at
face value; securities are set at their value on the day the loss is
discovered; and other property is valued at the lesser of the cost to
repair or replace.
Which of the following would NOT result in disciplinary action from
the Department of Financial Services? Correct Answer -
States that require all businesses to purchase workers'
compensation insurance are called: Correct Answer -
After a tornado completely destroys the roof and windows of Calah's
business building, she finds that there are new codes in place
requiring thicker shingles and reinforced window frames. Calah
insured her business using a replacement cost policy. Which
commercial property coverage can help Calah with the added costs
of bringing her building up to code? Correct Answer -
All of the following people may be allowed to perform official wind
mitigation inspections that meet the requirements for insurance
premium discounts, except a: Correct Answer -
