Public Adjuster Exam B

The term "time-element" is another way of saying:

"Indirect loss".

Section I of the Homeowners forms provides up to ________ when the insured is assessed by a corporation or property owner's association for damage to property owned collectively, but only if it was damaged by a peril insured against under Coverage A of the policy.

$1,000.

Maci has $500 cash destroyed by fire in her covered home. She files a claim under her standard Homeowners policy. How much will the policy pay on this claim?

$200

Aaron purchases a Homeowners insurance policy for $700,000 with a 4% deductible. A few months later, a heavy hailstorm destroys his roof, porch, and windows, causing $50,000 in damages. How much should Aaron expect to receive from the insurance company to pay for the damages?

$22,000.

An "insured" under an unendorsed Homeowners policy can be all of the following, EXCEPT:

A childhood friend of the named insured who is visiting for a month from England.

Which of the following losses would be covered by the EC peril of "Windstorm or Hail" under a Dwelling policy?

A roof that suffered damage in a tornado.

Which of the following is used to bring a standardized insurance form into compliance with state laws?

Endorsements

Which of the following is generally intended to cover property that moves from one location to another?

Floaters

What is the purpose of the public adjuster's bond?

For the use and benefit of any person injured by a willful, malicious or wrongful act by a public adjuster in connection with the transaction of its business

Conrad is a contractor with Builders' Risk coverage written on a reported value basis on his current construction job. He started clearing the land on May 1st, digging the basement on May 13th, pouring the foundation on May 31st, blocking the basement walls on June 5th, flooring the first floor above the basement on June 15th, and constructing the walls of the first floor on June 30th. When did Conrad's Builders' Risk policy begin providing coverage?

June 15th.

Under the appraisal clause in a commercial inland form, which of the following is true?

The insurer still retains its right to deny the claim entirely.

Under "pollution cleanup and removal" coverage under the standard ISO BOP form, when must a loss be reported?

Within 180 days.

Mary intentionally trips her neighbor while the neighbor is trespassing on the insured's property. Although the neighbor is not injured, Mary gives the neighbor $500 in cash to settle any potential liability claim. How will Mary's insurance company most likely respond in this situation?

he insurer will deny liability coverage because Mary's action was intentional.

Wholesalers can be covered by the BOP if no more than _____ of their total floor area is open to the public.

25%

How many bundles of roof shingles would be required to roof 100 square feet?

3

Which of the following would be considered vacant on an unendorsed Commercial Property policy?

A leased building in which less than 31% of the building is occupied.

The information provided by the insured in a proof of loss form is considered:

A representation

Brian owns a home that is covered under a Dwelling policy. He rents this home to Taylor. Joe, the neighbor who lives next door to Brian's rental home, has been cooking methamphetamine for quite some time and selling it out of his house. One afternoon, Joe's "meth lab" exploded, spreading dangerous chemical to the houses around his. It also caused a fire that rendered the house unstable until it can be demolished. The civil authorities in the area have required that Taylor vacate her rental home, until the area next door can be cleaned up. Which of the following statements is true regarding how Brian will be compensated under his Dwelling policy for the loss of Taylor's rent during the time she must live elsewhere?

Brian will receive 20% of the Coverage A limit, for a maximum of 2 weeks.

Which of the following statements is TRUE regarding Commercial Property coverage?

Commercial property coverage can be written as both a monoline policy and as part of a package policy..

On a standard BOP policy, all of the following items have a limitation on the coverage amount if the cause of loss is theft, EXCEPT:

Computers.

Pete's business is covered by a standard Businessowners policy. He has been accused by a customer of displaying inaccurate pricing on his website. Which of the following statements best describes how this claim would be handled by the BOP?

Coverage for any claim caused by a wrong description of the price of goods, products or services is excluded by the personal and advertising injury coverage of the BOP.

A department store has a large inventory of costume jewelry and watches. No single item is valued for more than $100.00. A customer steals most of the items and flees the scene. What theft coverage would be provided by an unendorsed standardized BOP policy?

Full limit of Coverage B.

The Building and Personal Property coverage form provides coverage for all of the following types of property, EXCEPT:

Growing crops and lawns.

Section I of Homeowners policies cover all of the following, EXCEPT:

Locations owned by the named insured that are not described on the declarations page of the policy.

All of the following losses are excluded by the Earthquake & Volcanic Eruption Endorsement of a Commercial Property policy, EXCEPT:

Loss to stucco on a covered building when it is damaged or lost due to earthquake or volcanic eruption.

A covered loss has damaged the property belonging to the owner. Property belonging to a customer is also damaged. The customer brings suit against the insured for this damage. The insurer may do which of the following?

Negotiate the settlement of the property of others directly with the owners of that property and pay the defense costs incurred in the suit against the insured.

Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority Prohibits Use" for:

No more than two weeks

If a public adjuster has had their license revoked, what is the waiting period before they can reapply?

One year

The "Medical Expense" coverage of Section II of the Businessowners policy will pay the reasonable expenses for first aid, medical services, and funeral services, within:

One year from the date of the accident.

All of the following would be advantages to an insured or an insurer for purchasing or writing a Commercial Package policy, EXCEPT:

Packaging monoline policies together can provide broader coverage under each coverage part than purchasing the policies separately.

If a Condominium Association policy and a Condominium Unit-Owners policy are in force on the same property, how would the claim be handled?

The Condominium Association form is primary.

Arthur owns an art gallery where he displays the artistic works of local artists and cleans and stores expensive paintings for clients as well. In order to keep the delicate paintings from suffering damage, Arthur must keep his storage room temperature at 68 degrees at all times. Which of the following endorsements should Arthur purchase to cover any damage incurred by the paintings in case of a power outage that causes the temperature to fluctuate?

The Spoilage Endorsement.

A public adjuster's bond is made payable to:

The State of New Jersey

All of the following items may be covered by a Commercial Inland Marine policy, EXCEPT:

Transport vehicles

Which of the following terms is deemed as the uncertainty of future outcome?

risk