ADJUSTERPRO PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+<RECENT VERSION>

ADJUSTERPRO PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+&lt;RECENT VERSION&gt; 1. Which of the following is NOT true of Personal Injury Protection? A. PIP is usually secondary coverage. B. PIP restricts the policyholder's right to recover losses in civil court. C. PIP is primary coverage. D. PIP provides no-fault protection. - answer A. PIP is usually secondary coverage. 2. During a strong storm, Missy's grain drill was mangled by a tornado, which rendered it useless. Before the damage, the grain drill was worth $25,000, but it would cost $45,000 to buy a new one today. Missy's farm policy has a replacement cost endorsement, and the grain drill is scheduled on a Mobile Agricultural Machinery and Equipment form with a $36,000 limit. Missy replaces her grain drill with one she found on sale for $40,000. How much total indemnification will she receive? A. $36,000 B. $25,000 C. $45,000 D. $40,000 - answer $36,000 3. Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a strong rain, some of the waste washes into a nearby river. Which insurance coverage can protect Scott from any liability caused by the goat waste runoff? A. Farm Product Liability B. Custom Farming Liability C. Farm Livestock-Waste Liability D. Farm Pollution Liability - answer D. Farm Pollution Liability 4. Christine's spinach field was partially destroyed by fire that resulted from a lightning strike during a recent storm. She lost 23 of her 150 acres. The adjuster writes her a check for the value of the damaged 23 acres, even though the yield from the rest of the field is doing exceptionally well and may make up for the damaged portion. What type of insurance policy does Christine have? A. Revenue Protection B. Multi-Peril Crop Insurance C. Crop-Hail D. Yield Guarantee - answer christine has CROP-HAIL POLICY for her spinach field of 150 acres 5. Veronica owns a pottery business and is insured under a commercial property policy. She was in the process of building an extra structure for the sole purpose of kiln firing her pottery when a massive storm came through and blew down all the scaffolding, which added additional cost to the construction project. Which coverage extension of the Builder's Risk Coverage Form would cover the scaffolding? A. Scaffolding, Construction Forms, and Temporary Structures B. Debris Removal C. Property in Transit D. Preservation of Property - answer A. Scaffolding, Construction Forms, and Temporary Structures 6. Jimmy owns a pawn shop which brings with it a certain amount of risk. He decides to hire a security guard, and install a surveillance system and an alarm system to reduce his monthly premiums on his commercial property policy through the: A. Protective Safeguard endorsement. B. Protective Guardian endorsement. C. Security, Surveillance and Alarm endorsement. D. Risk Reduction endorsement. - answer A. Protective Safeguard endorsement. 7. Phil runs a locomotive repair business, which is insured under a commercial property policy. One night, some blasting powder is accidentally ignited and blows a crowbar through one of the engines. No one is hurt, but the locomotive is severely damaged. Which coverage option may help cover the cost of repairing the engine from this unfortunate event? A. Interior Explosion Coverage B. Mechanical Breakdown Coverage C. Legal Liability Coverage D. Replacement Cost Coverage - answer C. Legal Liability Coverage 8. The Legal Liability Coverage Form provides insurance protection against negligent damage to the personal property of others while in the insured's care or on the insured's premises. - answer Phil runs a locomotive repair business, which is insured under a commercial property policy. One night, some blasting powder is accidentally ignited and blows a crowbar through one of the engines. No one is hurt, but the locomotive is severely damaged. Which coverage option may help cover the cost of repairing the engine from this unfortunate event? 9. Gail's restaurant is doing more business than ever, so Gail decides to add more dining space. Three weeks into the project, a hurricane blows through town, reducing the new construction to rubble. Gail maintains commercial property insurance coverage valued at 70% of her property's replacement cost, although her policy says she must maintain at least 80% to be fully insured. Which coverage on her policy could pay to rebuild her restaurant at replacement cost? A. Increased Construction Costs coverage B. None C. Outdoor Property extension D. Replacement Cost endorsement - answer NONE!!!!! 10. Which of the following events would trigger the end to a commercial property Builders Risk Coverage Form? A. The foundation of the building under construction is poured. That is incorrect. Builder's Risk covers residential and commercial structures while they are under construction or being remodeled or renovated. Once accepted by the purchaser, the coverage no longer applies. B. The building is 50% completed. C. The building is accepted by the purchaser. D. One year after the completion of the building. - answer C. The building is accepted by the purchaser. 11. Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in good time. Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and Wendy falls into the crawl-space below, injuring her leg and back. Which commercial general liability coverage could help cover the cost of Wendy's injuries? A. Premises Liability B. Insured Contracts Liability C. Product Liability D. Completed Operations Liability - answer COMPLETED OPERATIONS LIABILITY!!!!!! 12. That is incorrect. This claim would fall under Completed Operations Liability in Jim's CGL policy. This coverage applies to claims involving work that has already been completed off of the insured premises. - answer Wendy hires Jim to build an addition to her house. JiA flood causes $100,000 of damage to the dwelling and $25,000 of damage to the detached garage. Howard has a Dwelling Form flood policy with a $150,000 limit. What we need to determine: How much will the policy pay for the damage to Howard's home and detached garage combined, ignoring deductible amounts? - answer 15,000 13. States that allow private insurers to offer workers' comp coverage as an alternative to the state workers' comp fund are called: - answer competitive. 14. Supplemental Income Benefits - answer pay 80% of the difference between 80% of the worker's pre-injury amount AND his wages after the injury. 15. Cody made $800/week before he lost an arm in a work-related injury. By the time his Impairment Income Benefits run out, he has a job answering phones in an office, where he makes $300/week. How much could Cody receive per week in Supplemental Income Benefits? - answer $272 Supplemental Income Benefits pay 80% of the difference between 80% of the worker's pre-injury AWW and his wages after the injury. In this case, Cody was making $800/week before his injury. 80% of $800 is $640. Subtract $300 from $640 and you get $340. Then, 80% of $340 is $272.