Series 201 Exam Questions & Answers
Which one of the following is not one of the duties of the Commissioner of Insurance?
A. Enforcing provisions of the Insurance Code
B. Examining and licensing individuals and companies
C. Examining Insureds' financial conditions
D. Holding hearings regarding suspension or revocation of a license -
ANSWERExamining Insureds' financial conditions
Which of the following is not considered an unfair claims practice?
A. Knowingly misrepresenting facts or provisions
B. Denying a claim
C. Attempting to settle for less than a reasonable amount
D. Unreasonably delaying payment - ANSWERDenying a claim
All of the following are types of adjusters licenses regulated by the Louisiana
Department of Insurance EXCEPT:
A. Crop Adjuster
B. Automobile Adjuster
C. Personal Lines Adjuster
D. Commercial Lines Adjuster - ANSWERCrop Adjuster
The Louisiana Commissioner of Insurance is elected to a term of:
A. One Year
B. Two Years
C. Three Years
D. Four Years - ANSWERFour Years
A Louisiana adjusters' license expires:
A. January 1st of even numbered years
B. The last day of each adjusters birthday month in odd numbered years
C. June 1st of even numbered years
D. The last day of each adjusters birthday month in even numbered years -
ANSWERThe last day of each adjusters birthday month in odd numbered years
To obtain an insurance adjusters license, an individual must do all of the following
EXCEPT:
A. Be 18 years of age
,B. Be fingerprinted
C. Complete pre-license training
D. Pass an examination - ANSWERComplete pre-license training
Unfair claims practices will be assumed to be intentional if:
A. They occur with such frequency as to indicate a general business practice
B. They are reported to the Insurer by the policyholder
C. The licensee has been reported for a similar practice during the preceding three
years
D. The licensee fails to promptly submit a required report - ANSWERThey occur with
such frequency as to indicate a general business practice
When the Commissioner finds that an adjuster has knowingly violated the provisions of
the Claims Settlement Practices, what is the maximum fine that may be levied?
A. $1,000
B. $10,000
C. $50,000
D. $100,000 - ANSWER$100,000
All of the following are required to have a Louisiana adjusters license EXCEPT:
A. Independent Adjusters
B. Adjusters handling only Casualty Claims
C. Adjusters handling only Workers' Compensation Claims
D. Adjusters handling only Automobile Claims - ANSWERAdjusters handling only
Workers' Compensation Claims
Under the Standards of Conduct, adjusters must adhere to all of the following
requirements EXCEPT:
A. An adjuster may not take an assignment of any claim if the adjuster is not competent
and knowledgeable of the insurance coverage applying to the loss.
B. An adjuster may not acquire any interest in salvage property.
C. Licensed comprehensive adjusters may act as either an adjuster for an Insurer or as
a public adjuster, but not both on the same claim.
D. An adjuster may not permit an unlicensed employee or representative of the adjuster
to conduct business for which a license is required. - ANSWERLicensed comprehensive
adjusters may act as either an adjuster for an Insurer or as a public adjuster, but not
both on the same claim.
Contracts must contain all of the following elements EXCEPT:
A. Offer & Acceptance
B. Competent Parties
, C. Lawful Purpose
D. Monetary Deposit - ANSWERMonetary Deposit
Insurance policies may be described as all of the following EXCEPT:
A. Unconditional contract
B. Contract of adhesion
C. Aleatory contract
D. Contract of indemnity - ANSWERUnconditional contract
The principle of indemnity states:
A. That there is a clear winner and clear loser to every transaction
B. That reward comes with risk
C. That no one can profit from an insurance loss
D. That all losses must be repaid - ANSWERThat no one can profit from an insurance
loss
Because an insurer writes the policy language and the insured has little or no control
over the content, any ambiguity in the wording is usually resolved in favor of the
insured. Because the design and wording of a policy are in the hands of the insurer,
insurance policies are said to be:
A. Contracts of adhesion
B. Unilateral contracts
C. Contracts of indemnity
D. Warranties - ANSWERContracts of adhesion
Under contract law, the actions by a party may intentionally and voluntarily give up a
known right. When this occurs, it is known as:
A. Warranty
B. Waiver
C. Representation
D. Binding contract - ANSWERWaiver
In the formation of a legal contract, each party must give up something of value. Under
contract law, this is referred to as:
A. Consideration
B. Agreement
C. Adhesion
D. Indemnity - ANSWERConsideration
Which one of the following is not one of the duties of the Commissioner of Insurance?
A. Enforcing provisions of the Insurance Code
B. Examining and licensing individuals and companies
C. Examining Insureds' financial conditions
D. Holding hearings regarding suspension or revocation of a license -
ANSWERExamining Insureds' financial conditions
Which of the following is not considered an unfair claims practice?
A. Knowingly misrepresenting facts or provisions
B. Denying a claim
C. Attempting to settle for less than a reasonable amount
D. Unreasonably delaying payment - ANSWERDenying a claim
All of the following are types of adjusters licenses regulated by the Louisiana
Department of Insurance EXCEPT:
A. Crop Adjuster
B. Automobile Adjuster
C. Personal Lines Adjuster
D. Commercial Lines Adjuster - ANSWERCrop Adjuster
The Louisiana Commissioner of Insurance is elected to a term of:
A. One Year
B. Two Years
C. Three Years
D. Four Years - ANSWERFour Years
A Louisiana adjusters' license expires:
A. January 1st of even numbered years
B. The last day of each adjusters birthday month in odd numbered years
C. June 1st of even numbered years
D. The last day of each adjusters birthday month in even numbered years -
ANSWERThe last day of each adjusters birthday month in odd numbered years
To obtain an insurance adjusters license, an individual must do all of the following
EXCEPT:
A. Be 18 years of age
,B. Be fingerprinted
C. Complete pre-license training
D. Pass an examination - ANSWERComplete pre-license training
Unfair claims practices will be assumed to be intentional if:
A. They occur with such frequency as to indicate a general business practice
B. They are reported to the Insurer by the policyholder
C. The licensee has been reported for a similar practice during the preceding three
years
D. The licensee fails to promptly submit a required report - ANSWERThey occur with
such frequency as to indicate a general business practice
When the Commissioner finds that an adjuster has knowingly violated the provisions of
the Claims Settlement Practices, what is the maximum fine that may be levied?
A. $1,000
B. $10,000
C. $50,000
D. $100,000 - ANSWER$100,000
All of the following are required to have a Louisiana adjusters license EXCEPT:
A. Independent Adjusters
B. Adjusters handling only Casualty Claims
C. Adjusters handling only Workers' Compensation Claims
D. Adjusters handling only Automobile Claims - ANSWERAdjusters handling only
Workers' Compensation Claims
Under the Standards of Conduct, adjusters must adhere to all of the following
requirements EXCEPT:
A. An adjuster may not take an assignment of any claim if the adjuster is not competent
and knowledgeable of the insurance coverage applying to the loss.
B. An adjuster may not acquire any interest in salvage property.
C. Licensed comprehensive adjusters may act as either an adjuster for an Insurer or as
a public adjuster, but not both on the same claim.
D. An adjuster may not permit an unlicensed employee or representative of the adjuster
to conduct business for which a license is required. - ANSWERLicensed comprehensive
adjusters may act as either an adjuster for an Insurer or as a public adjuster, but not
both on the same claim.
Contracts must contain all of the following elements EXCEPT:
A. Offer & Acceptance
B. Competent Parties
, C. Lawful Purpose
D. Monetary Deposit - ANSWERMonetary Deposit
Insurance policies may be described as all of the following EXCEPT:
A. Unconditional contract
B. Contract of adhesion
C. Aleatory contract
D. Contract of indemnity - ANSWERUnconditional contract
The principle of indemnity states:
A. That there is a clear winner and clear loser to every transaction
B. That reward comes with risk
C. That no one can profit from an insurance loss
D. That all losses must be repaid - ANSWERThat no one can profit from an insurance
loss
Because an insurer writes the policy language and the insured has little or no control
over the content, any ambiguity in the wording is usually resolved in favor of the
insured. Because the design and wording of a policy are in the hands of the insurer,
insurance policies are said to be:
A. Contracts of adhesion
B. Unilateral contracts
C. Contracts of indemnity
D. Warranties - ANSWERContracts of adhesion
Under contract law, the actions by a party may intentionally and voluntarily give up a
known right. When this occurs, it is known as:
A. Warranty
B. Waiver
C. Representation
D. Binding contract - ANSWERWaiver
In the formation of a legal contract, each party must give up something of value. Under
contract law, this is referred to as:
A. Consideration
B. Agreement
C. Adhesion
D. Indemnity - ANSWERConsideration
