1|Page InsuranceadjusterexamquestionsTestbankFinal
Question1:Duringastorm,heavywindscauseatreelimbto
breakandfallontoPaul'shouse,causing$6,500indamage.
Paul'sinsurancecompanynowconsidershishouse:
CORRECTANSWER:ALoss
Question2:Whichofthefollowingbestdescribesa"risk,"
accordingtotheinsurancedefinition?
CORRECTANSWER:Apotentialforfinancialloss
Question3:Wehaveanexpert-writtensolutiontothisproblem!
Alionatazooescapedwhenazooemployeefailedtofollow protocol.Thelioninjuredazoopatron.Incourt,theinjured
patron'slawyercouldinvokethedoctrineof:
CORRECTANSWER:ResIpsaLoquitur
Question4:Whichofthefollowingbestdefinesthedoctrineof
ResIpsaLoquitur?
CORRECTANSWER:Thecircumstancesoftheinjurymakeit
obviousthatthedefendantisnegligent;noproofisneeded
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Question5:Nina'shomeislocatedinahighcrime
neighborhood.Oneday,shecomeshomefromworktofindthat hergaragedoorhadbeenspray-paintedwithgraffiti.Nina's
insurerwouldconsidertheactofvandalismtoNina'sgaragea:
CORRECTANSWER:Peril
Question6:Aneconomicdeviceusedtoprotectagainsttherisk
ofrealizingunforeseenandextraordinaryfinanciallossiscalled:
CORRECTANSWER:APeril
Question7:AnytownPediatricshasbeenhavingahardtime
findingmedicalmalpracticeinsurance.Thepremiumsare extraordinarilyhigh,andtheygethighereveryyear.Finally,fed upwiththecostofinsurance,thedirectorsdecidetoformtheir owninsurancecompany,whichwillserveonlyAnytown Pediatrics.Thisway,anyprofitsgeneratedbytheinsurerwill comebacktoAnytownPediatrics.Whatkindofinsurance companywouldthisbe?
CORRECTANSWER:Captiveinsurer
Question8:Inaninsurancecontract,exclusionsserveallofthe
followingpurposes,except:
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CORRECTANSWER:addcoveragesthatneedspecial
treatment
Question9:Samwastiredoftheneighbor'streesalongthefence
linepokingthroughthefenceanddroppingleavesinhisyard,so hereachedacrossthefencewithhispolesawandcutdownthe neighbor'stree.Sam'sneighborwasupsetandsuedhimforthe damages.Samisorderedtopay$500forthetree.Underwhich categoryofdamagewouldthisfall?
CORRECTANSWER:CompensoryDamage
Question10:Jackierecentlyinheritedalife-sizedmarblestatue
ofhergreat-grandfather.Itisanirreplaceableantique,anditis nearlyimpossibletodeterminetheACV.Whichtypeofpolicy wouldbestindemnifyJackieintheeventthatthestatuewas everdamaged?
CORRECTANSWER:AgreedValuePolicy
Question11:ABCConsultinghasaCGLpolicyandan
Umbrellapolicy,buttheCGLrunsfromJanuary1toDecember 31andtheUmbrellapolicyrunsfromJune1toMay31.This differenceininceptionandexpirationdatescreatesconfusion
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whensettlingclaims.Thisconditionisknownas:
CORRECTANSWER:Nonconcurency
Question12:Apowersurgesparksasmallelectricalfireinan
officebuilding.Theelectricalfiretriggerstheautomatic sprinklersystem.Thewaterfromthesprinklerssoaksthe carpetsandshorts-outallthecomputers,causingthousandsof dollarsindamage.Theofficemustclosefortwomonthsduring
repairs.Thesprinklerssoakingtheofficewouldbeconsidered:
CORRECTANSWER:Anoccurrence
Question13:Sara'svehiclewasstolenandherinsurerpaidher
theftclaimforthetotalvalueofthecar.Aweeklater,thepolice foundSara'scarandreturnedittoher.Whichofthefollowing statementsistrue?
CORRECTANSWER:TheRecoveredPropertyprovisionstates
thatSaramustnotifytheinsurerandeitherreturnthesettlement paymentorsurrenderthevehicletotheinsurer
Question14:AsSethisdrivingalongacountryroad,adeer
jumpsoutinfrontofhim.ThiscausesSethtoveerofftheroad andcrashintoCassie'swoodfenceandabrickmailbox.Asa
