Adjusters Test Part 1

29. An Adjuster goes to an insured's home to evaluate the damages after a hailstorm. During the 15-business day period the adjuster determines he needs additional time to evaluate and investigate the claim. In a written request, he must identify his specific reason for the additional time needed. How many additional calendar days will the adjuster gain as a result of this written request? * 15 30 45 60

15

39. Assuming Mr. Insured has a Flood Policy with no coverage issues. He suffered a total loss flood to the main dwelling in the amount of $500,000.00. What is the maximum amount payable to the insured? * $500,000.00 $250,000.00 $100,000.00 $0

250,000.00

20. If an insurer has a reasonable basis to believe that a loss resulted from arson, the insurer shall notify the claimant in writing of the acceptance or rejection of the claim not later than the _______ day after the date the insurer receives all items, statements, and forms required by the insurer. * 30th 45th 60th 90th

30th

34. Anticipating a major hurricane, Mr. Smith relocated about $50,000.00 worth of furniture, clothing, and electronics from the loss location. He rented a storage unit from ABC Rent-A-Space on September 1, 2013. On November 1, 2013, Mr. Smith went to retrieve his personal property from ABC Rent-A-Space and discovered the items had been stolen.Mr. Smith has submitted a theft claim under the Texas Homeowners Policy. He has a limit of liability of $80,000.00 for contents. How much of a settlement will Mr. Smith receive? (Do not factor in deductible or depreciation) * $50,000.00 $25,000.00 $8,000.00 $0

5,000.00

35. Using the scenario in question #34 for Mr. Smith, how much of a settlement would Mr. Smith receive if a theft loss occurred 30 days after he initially stored the personal property items at ABC Rent-A-Space? (Do not factor in deductible or depreciation) * $50,000.00 $25,000.00 $8,000.00 $0

50,000.00

26. After obtaining your adjuster's license, your license can automatically be renewed within how many days before it expires? * 90 120 180 200

90

3. A circumstance that increases the likelihood or probable severity of a loss. For example, the storing of explosives in a home basement is that increases the probability of an explosion. * An Accident A Loss A Peril A Hazard

A Hazard

30. An event arising out of natural causes with no human intervention, which could not have been prevented by reasonable care or foresight. * Arson Vehicle Impact Act of God Bodily Injury

Act of God

38. As a result of a total loss fire at the insured location, the insured has an extra expense for food and hotel costs. This is an example of: * Fair Rental Value Additional Living Expenses (ALE) Business Interruption Prohibited Use

Additional Living Expenses (ALE)

2. A bond for a specific amount conditioned for the faithful and honest conduct of business by the licensed adjuster. Staff and Independent Claim Adjusters do not need bonds. In the State of Texas, only Public Adjusters need bonds. This bond is called: * Adjuster Bond Financial Institution Bond Miscellaneous Bond Bid Bond

Adjuster Bond

14. A representative of the insurer (insurance company) who seeks to determine the extent of the insurer's liability for loss when a claim is submitted. * Underwriter Agent Adjuster Clerical

Agent

47. Driver A is traveling Westbound on Fillmore Street. Driver B is traveling Southbound on McAllister street. They collide at a busy intersection. This is an example of: * A Casualty An Accident An Exclusion A Hazard

An Accident

17. A Texas claims adjuster receives his adjusters license from the Texas Department of Insurance on August 15, 2013. During what month and year will he need to renew his license by? * August 15, 2014 August 15, 2015 December 15, 2014 December 15, 2015

August 15, 2015

25. After a recent flood Mr. Paulson files a claim. After reviewing his flood policy Mr. Paulson realizes which of the following coverages are not included under his policy? * Building Damage Contents Damage Additional Living Expense (ALE) Debris Removal

Building Damage

37. As a result of a large structural fire, a grocery store was unable to perform regular business. This loss would be an example of: * Additional Living Expense Fair Rental Value Prohibited Use Business Interruption

Business Interruption

50. During a strong windstorm, a large cargo ship hit an unknown object, which caused damage to the contents being transported. Which type of coverage applies to this loss? * Freight Hull Cargo Inland Marine

Cargo

6. A demand made by the insured, or the insured's beneficiary, for payment of the benefits as provided by the policy. * Accident Claim Subrogation Salvage

Claim

40. Automobile A and Automobile B had a head on accident. Both of the automobiles were towed away to a repair shop. Under the Texas Personal Auto Policy, which of the coverages pay for the cost of towing Automobile A? * No coverage for towing expense Collision Coverage Comprehensive Coverage Uninsured Motorist

Collision Coverage

36. As a policyholder, there are several duties that are listed in the Homeowners policy that are required after a claim has been made. What section of the policy would you find these duties? * Conditions Loss Settlement Losses Not Insured Extensions of Coverage

Conditions

32. An insurance policy is considered to be a __________ between the insurance company and the policyholder. * Cancellation Claim Contract Liability

Contract

9. A fire has occurred in Mr. Wong's garage. The date of the loss is February 17, 2013. After filing the claim, Mr. Wong discovered a small problem; his policy covers the period from February 1, 2012 through February 1, 2013. The date February 1, 2013 would be considered his policy's? * Policy Date Premium Date Expiration Date Coverage Date

Coverage Date

33. An insured files a claim that is not a covered loss by the general insurance contract. Non-coverage of a loss would be found in what section of an insurance policy? * Declarations Special Limits of Liability Exclusions Conditions

Declaration

22. Adjuster Johnson completes a thorough inspection on a flood-damaged dwelling. Adjuster Johnson makes a payment under the Flood policy. The settlement will afford the insured to repair the home to a safe, secure, and sanitary condition. What agency is responsible to oversee the repair standards? Department of Insurance Federal Emergency Management Agency Texas Department of Public Safety Texas Windstorm Insurance Association

Federal Emergency Management Agency

45. Claims Representative Jones estimated damage to the loss location. The initial amount of the loss did not exceed the policy deductible of $500.00. In order to provide a payment to the insured, the adjuster added an extra $800.00 to her estimate. This is an example of: * Felony Hazard Peril Fraud

Fraud

49. During a strong windstorm, a large cargo ship hit an unknown object, which caused damage to the vessel, including the engine. What type of coverage applies to this loss? * Hull Cargo Freight Protection & Indemnity

Hull

28. Amount you must pay before hurricane insurance will kick in. Many insurers in hurricane-prone states are selling homeowners insurance policies with percentage deductibles for storm damage, instead of the traditional dollar deductibles used for claims such as fire and theft. * Insurable Interest Settlement Pro-rated Hurricane Deductible

Hurricane Deductible

23. After a hailstorm Mrs. Martinez files a claim. When the adjuster arrives to inspect her home she decides to show the adjuster some other damage not related to the recent hailstorm. After reviewing the damages, the adjuster realizes that some of her damage will not be covered under the claim related to the hailstorm. As a result, full or partial denials of coverage by the adjuster must be? * Over the telephone In writing Given by the agent Hidden from the insured

In writing

12. A large hailstone broke the front window of an insured location. Mr. Policyholder went to the lumberyard and purchased a sheet of wood to cover the broken window. The insurance company will reimburse the policyholder at a later date. This is an example of: * Loss Ratio Depreciation Settlement Incurred Expense

Incurred Expense

46. ________ Coverage insures the charge made for shipping cargo. This insurance covers the loss of shipping costs. If cargo is damaged, replacement cargo must be shipped, causing a second payment of shipping costs. * Hull Cargo Freight Inland Marine

Inland Marine

43. Claims Adjuster Smith receives a notice for a fire claim. He meets with the homeowner at the loss location, evaluates the claim and makes a payment to the homeowner for all the damages. What is the name associated with the person who receives payment for the loss? * Insured Insurer Plaintiff Mediator

Insured

44. Claims Adjuster Williams meets with an insured on March 15, 2013. The insured is very angry with Claims Adjuster Williams, because the appointment was scheduled on March 10, 2013. As a result of the missed appointment by the adjuster, he back dates the claim notes to March 10, 2013 and provides coverage when coverage doesn't exist. This is an example of a violation under the following: * Unfair Consumer Act Marketing Practices Texas State Laws Unfair Settlement Practices

Marketing Practices

8. A Fidelity Bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specific individuals. Which of the following is not a type of Fidelity Bond? * Commercial Blanket Bond Blanket Position Bond Name Schedule Bond Surety Bond

Name Schedule Bond

41. Claims Adjuster Box receives a claim on January 2, 2013. She reviews the facts and determines that the claim will be denied. Claims Adjuster Box denies the claim on March 01, 2013 without an inspection. Has Claims Adjuster Box handled the claim correctly? * YES, inspection is not needed to deny a claim YES, the denial was handled in a timely manner NO, inspection is needed and must be denied no later than 15 business days NO, inspection not needed but denial has to be made no later than 45 business days

No, inspection is needed and Maui be denied no later than 15 business days

19. John Smith is a California resident and has applied for a Texas adjuster's license after passing the adjuster pre-licensing exam. What would his residential status be considered by Texas Department of Insurance? * Non-resident of Texas Resident, because he passed the exam in Texas Non-resident of California Exempt from any status

Non-resident of California

21. This is a type of insurance for ocean vessels. It is the oldest type of insurance. It covers the ship's hull. * Inland Marine Ocean Marine Personal Boat Policy Protection and Indemnity

Ocean Marine

5. A contractor submits an invoice, which is 20% over the total cost of the repairs. This industry standard is called: * Material and Labor Taxes and Labor Profit and Taxes Overhead and Profit

Overhead and Profit

4. A claims adjuster inspects a claim at an insured location. The adjuster advises the insurance company that he estimates the damage to be around $30,000.00. This is called: * Estimating the reserves Creating hold-backs Paying the claim at replacement cost Estimating the salvage

Paying the claim at replacement cost

11. A large fire destroyed all of the insured's living room furniture. Under what coverage in the Homeowners B policy would this loss apply? * Dwelling Personal Property Loss of Use Conditions

Personal Property

16. A supermarket customer purchased a carton of milk. The carton of milk had a small leak which caused the tile flooring to become slippery. Several customers lost their footing as a result of the slippery floor. The customers would file a possible claim for any injuries under what type of Commercial General Liability policy? * Professional Liability Product Liability Premises Liability General Operations

Premises Liability

15. A Staff Adjuster meets with the policyholder at the loss location. The Insured has hired a representative to settle the claim with the insurance company on his behalf. This representative is called a(n): * Independent Adjuster Public Adjuster Staff Adjuster Agent

Public Adjuster

31. An agreement between the insurance regulators of two or more states to recognize the licenses of adjusters in each of their states. * Adjuster Bond Reciprocity Liberalization Surety

Reciprocity

10. A hailstorm caused major damage to the named insured's wood fence at the insured location. The fence was estimated to be about 10-years old. How will the adjuster determine the settlement of this claim per the Homeowners Form - B policy without an added endorsement? (Do not factor in the deductible) * Replacement Cost Actual Cash Value Cannot exceed special limit for wood fences No coverage for wood fences

Replacement Cost

13. A large oak tree fell on the insured's wood fence. Under what section of the Homeowners policy would the Debris Removal clause be found? * Section I - Conditions Section I - Losses Not Insured Section I - Extensions of Coverage Section I - Losses Insured

Section I - Extensions of Coverage

24. After a major hurricane all of the homes on the coast were coded by the insurance company; as priority losses. Insurance companies also describe the size of a loss and the extent of damages as: * Indemnity Incurred Expense Severity Loss Ratio

Severity

7. A drunken driver runs into the side of an insured dwelling. The insurance company pays the homeowner, but seeks financial recovery from the legally liable party. This process is called: * Salvage Subrogation Mediation Premium

Subrogation

27. All of these are examples of an insurer except: * State Farm Allstate American Insurance Group (AIG) The Texas Department of Insurance

The Texas Department of Insurance

18. A drunken driver runs into the side of the insured's detached garage. The insurance adjuster made a payment based on the policy coverages directly to the insured. This payment is able to be made as a result of a(n): * Policy exclusion Contract between the insured and the insurer Third party loss Incurred expense by the insured

Third party loss

42. Claims Adjuster Scott denied a claim without conducting a proper and complete investigation of the loss. Claims Adjuster Scott is in violation of: * Unfair Consumer Act Prompt Payment of Claims Unfair Settlement Practices Marketing Practices

Unfair Settlement Practices

48. Driver A is traveling Westbound on Fillmore Street. Driver B is traveling Southbound on McAllister Street. They collide at a busy intersection. Driver B does not have insurance coverage. What section of the Texas Personal Auto Property would best apply to this scenario? * Liability Coverage Uninsured Motorist Coverage Medical Payments Coverage Comprehensive Coverage

Uninsured Motorists Coverage