adjuster test 2

Many states amend property insurance coverage additions and extensions by statute due to insufficient coverage amounts or time limits. All of the following are property insurance additions or extensions that are frequently amended by state statute, EXCEPT:

"Other Structures" is NOT a coverage addition or extension under a property policy

Dexter covers his dwelling under a DP-2 policy with $10,000 personal property (contents) coverage. He owns a canoe and stores it at a lake in a private garage that he does not own. Fire destroys the garage and Dexter's boat. How much coverage will Dexter's DP-2 form provide for his boat?

$0 bc the extension does not extend to canoes or row boats

A standard Personal Umbrella policy purchased with the lowest limit of liability offered would provide _______ of coverage.

$1,000,000 of coverage

Hannah must take time away from work to help assist in the investigation of a claim that was made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to:

$250 per day

Under the standardized Homeowners forms, how much "additional coverage" is provided under Section II - Liability for loss of earnings by the insured to assist the insurer in the investigation or defense of a claim?

$250 per day.

Federal Employers Liability Act (FELA) :

-Created to protect railroad workers who were injured on the job. - Not WC, it is "fault-based". -Unless the workers was 100% at fault, workers covered under FELA can sue their employers.

Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to:

10% of the coverage c limit of liability

When the "Extended Period of Indemnity" option is selected by the insured on their Business Income form, the additional coverage "Extended Business Income" is extended from 60 days up to a maximum of _____ days.

360 days

John has had his Georgia adjuster license revoked for cause. He will not be entitled to file another application for a license within _______ from the effective date of the revocation.

5 years

If a building insured by a standardized Businessowners policy has been vacant or unoccupied beyond _______ the insurer can send the insured a notice of cancellation.

60 days

Third Party Administrators in Georgia must post:

A $100,000 fidelity bond

Which of the following losses would be covered under the 1943 New York Standard Fire Policy?

A fire that is a result of a riot that causes property damage to the insured's property. -SFP only covers direct losses

According to the Georgia insurance code, all of the following may lawfully use an automated claim adjudication system, EXCEPT:

A licensed attorney.

Which of the following would be covered by Coverage A of a Farm Property policy?

A mobile home used as the farm dwelling.

Billy has his commercial interests covered with a Commercial Package Policy. He would like to modify one of his coverage parts. This change will be made by:

Adding an endorsement to the coverage part he'd like to change.

An insured sells mobile agricultural and construction equipment and needs coverage for this equipment while it is in stock for sale. Which of the following coverage forms would provide the insured with the coverage he needs?

An Equipment Dealer's form

The definition of "collapse" as defined in the additional coverage of the Homeowners forms includes:

An abrupt falling down or caving in of the structure or a part of the structure.

What would NOT be considered a "rebate" in Georgia?

An agent promises to return w a professionally printed and bound brochure explaining the coverages of the policy ( a brochure is not something of value that would help insured finances)

Skye is an insured under an insurance policy that covers both the insured and the insured's actions for which they can be held liable. Which of the following statements is NOT true in this situation? ~Any claim submitted against the policy for bodily injury caused by Skye is a third-party claim. ~Any claim submitted against the policy for an act of negligence accidentally committed by Skye is a first-party claim. ~Any claim submitted against the policy by Skye is a first-party claim. ~Any claim submitted against the policy for property damage caused by Skye is a third-party claim.

Any claim submitted against the policy for an act of negligence accidentally committed by Skye is a first-party claim. ~Claims submitted to cover acts of negligence for which Skye is liable are third-party liability claims.

The provision in an insurance contract that outlines the process of bringing a contract dispute before an objective third party for resolution is known as:

Arbitration

Which of the following is a true statement regarding the "Law of Large Numbers"?

As the number of insured units increases, the ability to predict losses increases.

The duties of the insured after a loss are included in insurance policy language to:

Assist in the adjuster's investigation of the claim.

The Georgia Commissioner is required to conduct an examination of each domestic insurer:

At least once every 5 years

Which of the following statements best describes the process of mediation?

Both parties present their dispute to a neutral third party, but no decision reached by the mediator is legally binding.

Which of the following is NOT considered to be a "specialty adjuster"?

Casualty Aduster (and/or property)

The "aggregate limit" of a Commercial Umbrella policy does not apply to:

Commercial Automobile losses

Samantha is renting an apartment and has just purchased a Homeowners policy using the HO-4 form. Which of the following insuring agreements is NOT included on Samantha's policy?

Coverage A

The limit of liability under an HO-4 form is based on the primary amount of insurance for:

Coverage C

Farmer Greg's poultry can be covered by:

Coverages E or F of the Farm Personal Property form.

All of the following are excluded under the Commercial Building and Personal Property form, EXCEPT:

EXCLUDED: petty cash and IOUs, watch dog, the insured's panel truck. INCLUDED: furniture and fixtures

Mike's Moonshine, Inc. is located in a state that permits Mike to decide whether he would like to provide workers' compensation coverage to his employees or not. Mike lives is a(n):

Elective state

Which of the following is NOT one of the five types of general liability exposures?

Errors and Omission

The authority that is specifically provided to an adjuster (orally or in writing) by the insurance company who has appointed that adjuster is known as:

Express Authority

A Homeowners policy is a personal package policy. All of the following are advantages of a personal package policy:

Fewer gaps in coverage Lower Premiums Simplify the billing process for insurance companies --you do NOT get lower deductibles

Which of the following basic coverages are provided under a Standard Fire policy?

Fire, lightning and removal.

Hannah was working as an employee of Indemnify Insurance, Inc. as an adjuster. She had her adjuster license revoked by the state because she was found to have engaged in the unauthorized practice of law. What is the activity most likely to have resulted in Hannah having her license revoked?

Hannah advised the company that they should settle a claim for a specific dollar amount that was lower than the policy limit because she felt the insured would take the lower amount.

Symbols listed on the Declarations page of a Business Auto policy represent: I. The type of vehicle covered. II. The vehicle use classification. III. The ownership status of the vehicle. IV. The territory where the coverage will apply.

I and III only.

The type of "agent authority" that allows an adjuster to exercise his/her express authority is:

Implied Authority -"Implied authority" allows the adjuster to perform all of the usual tasks necessary to adjust a claim that are specified in their "express authority".

In which of the following situations should an adjuster consider obtaining a non-waiver agreement?

In dealing with a potential coverage dispute.

Indemnify Insurance, Inc. is deploying adjusters to an area recently hit by a hurricane. The company has 25 employee adjusters who are ready to deploy but they need 25 more. Carol is a licensed adjuster who signs a contract with Indemnify Insurance, Inc. to work on their behalf during this deployment. Carol is acting as:

Independent Adjuster (she is under contract and not an EE at company)

The doctrine of utmost good faith:

Is a legal obligation that requires both parties to the insurance contract act with honesty and integrity

The "removal coverage" of the Standard Fire policy is:

Is extremely broad and will cover the removal expense for five days and beyond if an extension is arranged with the insurance company

A non-waiver agreement is taken more seriously in a court of law because:

It is signed by the insured.

The insured's store is covered under a jewelers' block policy. The owner's wife removes an expensive piece of jewelry from the store's showroom and wears it to a party where it is stolen. How will the insurer handle this claim?

It will be denied because of an exclusion.

The "Free of Particular Average" clause of an Ocean Marine policy eliminates all coverage for partial losses to cargo unless caused by all of the following, EXCEPT:

Jettison

What is NOT considered an unfair claim practice?

Making claim payments and stating the coverage under which payment is made.

A legal term describing an intentional act that is illegal or morally wrong, and contributes to the injury of another person is:

Malfeasance

What coverage under the BOP automatically applies if a customer slips and falls on the named insured's premises, regardless of legal liability?

Medical expense coverage.

A rebate is:

Offering something of value in exchange for purchasing an insurance policy.

A "hostile fire" is defined by the Standard Fire policy as:

One that burns beyond its intended boundaries

With regard to workers' compensation coverage, a "competitive" state is:

One where both private and government insurers write workers' compensation policies that compete against one another.

A mutual insurance company is:

Owned by its policy holder.

Which of the following symbols of the Protective Safeguards endorsement to a Commercial Property policy indicates "any system described in the schedule on the Declarations page"?

P-9

Physical damage coverage to an insured's car is covered by which of the following insuring agreements of the Personal Auto policy?

Part D

A person, firm, or corporation that, for compensation, acts on behalf of an insured in negotiating the settlement of certain claims for loss or damage to property is known as a/an:

Public Adjuster

All loss or damage to property other than money and securities under a Commercial Crime policy is settled on:

Replacement cost basis

Which of the following is considered an Unfair Claim Settlement Practice?

Requiring a claimant to submit a preliminary claim report before moving forward on the claim.

In a liability policy, the limits of coverage can be expressed as

Single, Split and Aggregate THERE IS NO SUCH THING AS RESTRICTED

Who would NOT have the capacity to enter into an insurance contract?

Someone who is on drugs or alcohol and younger than 18

Soraya is a company adjuster who is investigating a third-party claim submitted by Chris. Soraya is a new adjuster and wants to be sure she does not waive any of the insurer's rights under the policy so she sends a reservation of rights letter to Chris. Which of the following statements is TRUE in this situation?

Soraya should not have taken this action because a third-party claimant has no rights or obligations under the policy -Reservation of rights documents are only used with first-party claims because third-party claimants have no obligations (duties) under the policy.

Regulation of the insurance industry in the United States is primarily left to:

State Governments.

The "control of property" condition of the Commercial Property policy:

States that a negligent act of someone beyond the insured's direction or control will not affect the coverage.

Which of the following statements is TRUE with regard to law?

Statute law is codified.

After completing an inspection of an insured's pressure equipment and fire suppression systems, the inspector determines that the pressure equipment needs to be repaired and the suppression systems have not been cleaned and inspected in the time frame required by the policy. The insurer will:

Suspend coverage immediately by red tagging the items until they are repaired, cleaned and pass reinspection.

Which sections of the Standard Fire policy are found on the first page of the policy?

The Declarations page and the Insuring Agreement.

What is NOT true regarding fiduciary responsibilities of an adjuster? The adjuster must represent the interests of their principal. The adjuster has the authority to act on behalf of their principal. The adjuster should not represent interests that are averse to those of the principal. The adjuster must make statements in writing before they will bind the principal.

The adjuster must make statements in writing before they will bind the principal. -can be ORALLY or WRITTEN

A vehicle is stolen and the insured submits a claim to his/her insurance company. When the vehicle is found, the insured is covered by a new insurance carrier. Which company covers the claim?

The carrier covering the insured at the time of the loss.

An agent with a surplus/excess lines license, will place insurance business with an unauthorized insurer when:

The coverage cannot be obtained from insurers authorized within the state

When the Employee Theft insuring agreement is selected as part of a Crime insurance policy and coverage is provided on a named scheduled basis, this means:

The employees covered are listed by name.

A written insurance contract that includes all coverage forms and endorsements is known as:

The insurance policy

An insured is covered under a CGL policy. He would like to purchase another policy to increase the limits of insurance for his commercial liability exposures. Which of the following statements is correct regarding the insured's situation?

The insured may purchase either a Commercial Umbrella or an Excess Liability policy to increase his liability insurance limits.

An independent adjuster acts on behalf of his or her principal. Which of the following is the principal for an independent adjuster?

The insurer

Which section of the 1943 New York Standard Fire Policy contains the information regarding the policy term?

The insuring agreement

Manny is purchasing a Commercial Property policy with a Business Income form included. Manny can select from any of the following as a method to provide coverage, while avoiding the coinsurance requirement, EXCEPT:

The maximum monthly limit of indemnity optional (THIS DOES NOT EXIST)

A named insured in a Personal Umbrella policy has died. Which of the following is true regarding how the policy will be "assigned" following the death?

The policy will continue to cover the spouse or any member of the deceased insured's household, but only while residing in the residence premises and only until the end of the policy period.

Willie's Widgets, Inc. holds a retirement party for a long-time employee with an open bar. One of Willie's employees drinks too much, leaves the party and injures Matilda in a car accident. Matilda sues Willie's Widgets for continuing to serve alcohol to an employee that was clearly drunk and then allowing him to drive. Which of the following statements BEST describes how Willie's CGL policy will handle this third-party claim?

The policy will pay the claim because Willie's Widgets is not a bar or liquor store in the business of selling alcohol --CGL excludes those in the business of selling alcohol

In most states, workers' compensation laws apply:

To most workers except those specifically excluded by state statute. (type of employment required)

An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. If the insured carries a watercraft policy, what coverages would apply?

Uninsured boater's coverage and hull insurance.

Vicarious means "through or in place of another person." There are times when a person may be held responsible for the negligent acts of another person

Vicarious means "through or in place of another person." There are times when a person may be held responsible for the negligent acts of another person

Which of the following terms means "liability through another person"?

Vicarious/Imputed liability.

General summary of a policy?

a certificate of insurance

Coverage under the Builders' Risk form is written for:

a period of one year.

The limit of a bond (the maximum amount the surety is liable to pay) is known as its:

bond penalty

An applicant fails to disclose KNOWN facts when completing an application for insurance. This act is known as:

concealment

All of the following are property policy additions and/or extensions of coverage that are likely to be amended by state statutory forms, EXCEPT:

coverage for property removed (this is standard on the form)

With a Commercial Package Policy (CPP), the term that refers to the combination of forms and endorsements selected by the insured for a certain line of insurance is:

coverage part

Within an insurance contract, the deductible amount can be found:

declaration page

The Georgia Insurance Commissioner is:

elected by the citizens for 4 yrs

What is used to bring a standardized insurance form into compliance with state laws?

endorsements.

The arbitration clause or provision in an insurance contract specifies

he steps in the process of bringing an insurance contract dispute before an objective third party for resolution. Arbitration clauses are included in both property and liability (casualty) insurance policies.

Which of the following is NOT one of the first steps in a claims investigation?

obtaining a release on the claim (this is one of the last steps)

Physical Damage coverage?

pays for direct and accidental loss to your vehicle.

What is medical payments coverage?

pays medical expenses for you and your other passengers. -does not matter who is at fault

What is liability coverage?

protection for when you're at fault for an accident. -covers injury and damage to other vehicle and driver also

What is Uninsured Motorist Coverage?

protects you if youre in an accident with someone who does not have their own insurance

UNDERinsured Motorist Coverge?

provides protection for when the other driver has insurance just not enough to cover

The traditional definition of actual cash value (ACV) is:

replacement cost minus depreciation

The "Free of Particular Average" clause of an Ocean Marine policy WILL NOT COVER partial losses to cargo unless caused by

stranding, sinking, fire, or collision.

Coverage A covers:

the dwelling and any attached structures such as a garage

Under what circumstances does an insurer allow the transfer of an insured's rights and duties under a Commercial Package Policy without the permission of the insurer?

when insured dies