Travelers Texas Claims License
A new adjuster is asked by his boss to learn all he can about ocean marine. His study finds that ocean marine insurance A) Covers risks/perils associated with transportation of good over water B) Covered ocean-front property C) Covers risks and perils associated with the transportation of good over land D) Insures businesses that pollute the ocean
A
A ship loaded with lumber encountered "the perfect storm". Some of the lumber was thrown overboard to save the ship. This action is called A) Jettison B) Overboard Dump C) Peril of the seas D) Barratry
A
Answer: A A communication from the insurer to its policyholder outlining items that may create questions of coverage is known as A) A reservation of rights letter B) A release C) A Lawsuit D) A declination of coverage letter
A
Bertram's Cleaners is a new dry cleaner and laundry service business. They have vehicles that pick-up customers property to be processed and then delivered back to the customer. What type of policy would the business need to protect the customers property during transit and their possession? A) A bailee policy B) A business owners policy C) A commercial property policy D) A cargo policy
A
Exclusions list causes of loss (perils) that are not covered. Which of the following is excluded under the Dwelling policy? A) Nuclear War B) Fire C) Pipe leak D) Wind
A
If an adjuster is concerned about losing or damaging his expensive adjusting equipment, he might want to look into what type of policy? A) Personal Inland Marine B) Business Inland Marine C) Personal Ocean Marine D) Business Ocean Marine
A
Jack also knows that a dwelling policy generally included only 4 types of coverage A) Dwelling, other structures, contents and loss of use B) Liability, dwelling, other structure and contents C) Dwelling coverage only D) Medical payments, dwelling, other structures and content
A
Jack is angry at his insurance company. He was in the automobile accident and his car was so severely damaged that it has been declared a total loss. The company has offered him the "fair market value" of the car. Jack just wishes he had his car back, because there is no way he can replace that car with what they are offering him. What is the reality that Jack is having difficult grasping? A) Insurance is only designed to address the financial loss that arises from damage to property or personal injury. It can't turn back the hands of time or keep back things from happening. B) Insurance is really a waste of money. As a practical matter, it doesn't help. C) He should have just put his premiums in the bank. He may have had enough to just buy a new car by now. D) Its just not fair.
A
Jack then explains to the insured that "Fair Rental Value" provides coverage A) For lost rental income due to a covered loss B) For property damage to that part of the dwelling that the renter occupies C) For the cost of duplicate rent that the tenants will have to pay if they cannot occupy the insured dwelling D) Only if the dwelling is totally destroyed and deemed a total loss
A
Jane was injured in an automobile accident. Unfortunately, she waited too long to file suit against the tortfeasor, and by the time she did, her cause of action was no longer permitted under the law. What kind of law affects one's legal liability in this manner? A) Statue of Limitations B) No-Fault/PIP Law C) Valued Policy Law D) Workers Compensation
A
Jason was awarded $50,000 for his pain and suffering. What kind of damages does this represent? A) General damages B) Special damages C) Punitive damages D) Monetary damages
A
Ms. Yurasov purchased a dwelling policy to cover this home because A) Rental property often does not require all of the coverage provided in a home owners policy and a dwelling policy adequately protects her financial interests. B) She's cheap, and wont spring for the more expensive homeowners' policy C) Dwelling policies only cover fire losses D) Dwelling policies only cover 4-8 family dwellings
A
Once Mario decides to make a first party claim against his own homeowner's insurance carrier, he will be considered a what? A) A claimant B) A plaintiff C) A complainant D) An insurer
A
Sam paid $1,200 to get his old car painted and it quite proud of how it looks. Two weeks later, while driving to Tallahassee, he runs through a severe thunder and hailstorm. When he arrives, he finds the entire surface of his car hood, top and trunk to be pitted and scratched. He is furious. He calls his agent to report the damage and file a claim under his insurance. He has a Personal Auto Policy with Collision with a deducible of $500 and Comp with a deductible of $100. The repair estimate comes to $1,755. How much would you pay? A) $1,655 B) $2,955 C) $1,425 D) $1,755
A
Texas law requires that all automobile policies include Personal Injury Protection coverage unless A) Rejected in writing by the named insured B) An extra premium is paid by the insured C) The insured has a bad driving record D) There are more than three listed drivers
A
The Texas Windstorm Insurance Underwriting Association offers what kind of coverage? A) Windstorm, hail, fire and explosion insurance in "high-risk" areas B) Automobile insurance for high-risk drivers C) Workers compensation insurance for high-risk employments D) Group health benefits for companies subject to higher risk of loss in the event of hurricane landfall
A
The very first thing Haywood should do in handling this claim would be to A) Acknowledge receipt of the claim by initiating contact with both of Insured and the 3rd Party. B) Contact the 3rd party and deny liability for the 3rd party's damages. C) Send letters to both parties asking them to secure repair estimated for their property damage and to "sign and return the enclosed medical authorizations." D) Contact the insured driver only
A
To insure cargo from point of origin to final destination, what kind of ocean marine insurance is needed? A) Warehouse-to-warehouse coverage B) Demurrage coverage C) Point of Origin coverage D) Cargo coverage
A
What are you really buying when you purchase insurance? A) Peace of mind B) Protection from financial loss C) An investment opportunity D) Protection from risk
A
Which of the following is NOT a claims-handling goat of a carrier and its adjuster? A) To keep track of the losses each policyholder has to the carrier can avoid more risk by cancelling policies that have high claim frequency. B) To comply with the requirements of law or terms of the insurance contact. C) To maintain friendly and satisfactory relations with the public D) To minimize loss for the insured party and carrier.
A
Which of the following is NOT a reason why an insurance carrier would stop offering coverage for a particular line of business? A) Offering such insurance would mean taking a risk B) They feel they can't change enough premiums to make a profit C) The risk has gotten too great D) State regulations have become too intrusive or cumbersome
A
By spreading the risk, and costs, of insurance across large numbers of people or business entities, insurance carriers achieve what objective? A) Make more money for stockholders B) Reduce the financial cost or impact of premiums and lost to any one individual C) Increase the change of avoiding risk D) Write more policies and increase revenues
B
Contributory Negligence and Assumption of the risk are tow defenses that have abandoned in most stated because legislatures and the courts consider them to be A) Too complex and difficult for juries to understand and apply B) Too harsh on the injured party of plaintiff C) Too favorable for the insurance industry D) Outdated for application in modern society
B
Dwelling coverage would be intended for A) Jack and Diane who want to protect themselves from the loss of their personal property in case the apartment they rent catches fire B) Abbott and Costello own a duplex rented to tenants. They simply want to protect their financial interests in this rental property C) Dave and Judy who own their home and want a blended insurance policy that offers protection form both property and liability loss. D) Tarzan and Jane are seeking protection from guest injured on their property
B
If you were to take a dwelling policy and add additional coverages like liability and medical payments coverage, you would have what kind of policy? A) A dwelling policy with extra endorsements B) A homeowner's policy C) A general liability policy D) An endorsement
B
In a claim or lawsuit, the burden of proving damages rests with A) The defendant B) The Plaintiff C) The witnesses D) The court
B
In his letter to his agent Mario says, "The driver of the other car immediately alleged injury to her neck." What does Mario mean by "alleged"? A) That she couldn't move her neck at all. B) The injury may or may not be real or legitimate C) That she really hurt, so don't worry about it. D) That the injury was serious, and she needed to get to the hospital immediately.
B
In which of the following situations should the drivers injured be excluded from coverage under PIP? A) While traveling down I-10, Max rear-ended by another vehicle and sustains a whiplash injury B) While driving through town, Larry noticed that a police officer was trying to pull him over. Because his license was suspended, he tried to outrun that officer. As he ran through a busy intersection, he was hit by a vehicle that ran a red light. Larry was taken to the hospital for serious injuries C) While Jenna was in Dallas on business, she ran the re light and struck a vehicle that was being changed by the Dallas Police. She hit her knees on the steering column and went to the hospital. The police later issued her a ticket for "failure to obey a traffic signal." D) John borrowed his sister's car to go to the grocery store. While backing out of a parking space at the grocery store, John was struck by another vehicle traveling down the aisle at a high speed an sustained an injury to his neck.
B
Jack notices that this dwelling policy is a DP-3. A DP-3 is an "all risk" policy, which means A) Any loss is automatically covered B) All risks of direct physical loss are covered unless they are excluded C) It costs more because it is more risky to cover D) The policy provides coverage for Fire, Lightning and Internal Explosion only
B
Janie graduated from college and moved to New York City her father, a reputable insurance agent, tells her "once you're settled in, it's absolutely essential that you make sure you are properly insured." Considering his advice, which of the following is NOT an appropriate reason why insurance is considered such an "essential product" in today's world. A) Banks require insurance to cover their liens on cars financed with them. B) Insurance, as an investment opportunity for your money, has little risk and excellent return. C) Healthcare for catastrophic injury or disease has become too expensive to assume on your own. D) Mortgage companies require property insurance to cover the risk of loss on homes they finance.
B
Jason fell off a scaffold at work that was constructed by another company. He filed suit against the other company and was ultimately awarded damages for his out of pocket medical expenses and lost income. What kind of damages were these? A) General damages B) Special damages C) Punitive damages D) Monetary damages
B
Jason was injured at work. He cannot sue his employer, even though the employer may be responsible under the law of vicarious liability for acts of Jason's co-employee, because his employer is required to pay his medical expenses and a portion of his earnings until he can return to work. What kind of law can limit Jason's liability to sue his employer in tort for damages if his employer is at fault? A) No-Fault/PIP Law B) Workers Compensation C) Valued Policy Law D) Statue of Limitations
B
Joe is president of Acme Holdings Inc. His company was sued by mane who claims that one of Joe's employees ran over his foot with a forklift, yet the employee denies that any such incident occurred. Joe wanted the case to go to trial but Joe's insurance company settled with plaintiff for $10,000. Joe called the insurance company and threatened lawsuit. What is the policy condition that gives the carrier such a right? A) A reservation of rights B) Right of settlement C) The duty to defend D) The duty to cooperate
B
Micky Dolez has a drum set that is highly valued at $150,000 not only for its quality but for the significance of this musical history. He is contemplating the purchase of a persona article floater to protect his investment. He is, however, concerned about the fact that he travels abroad quite frequently and wants to make sure this kind of policy would be right for him. Select the characteristic below that address that concern A) A personal articles floater is not the right policy for him, as coverage is only extended within the continental US. B) The personal articles floater provides worldwide coverage therefore loss to or of the drum set would be covered C) Musical instrumental aren't eligible property for a personal article floater D) The personal article floater is only available for property values under $50,000
B
Scenario: Jack just got a job as adjuster with Acme insurance. He just received a claim for damages resulting from a large oak tree that fell on the house after it got struck by lightning, crashed through the roof, and opened a huge hole that allowed water to enter the house in three rooms. The house is currently unlivable, and the tenants have moved out. The insured is in desperate need for assistance. Jack knowns that dwelling coverages are primarily intended for A) Individuals seeking protection for loss to property while renting B) Individuals seeking only to protect their financial interests in property C) Individuals looking for a cheap, blended insurance policy that offers protection against loss to property as well as legal liability D) Individuals seeking protecting for liability to guests injured on their property
B
Stacy forgot to give the bills for towing ($50) and tune-up ($200) to the adjuster. She forwards these and asks for reimbursement. What would you pay? A) $250. Both bills should be paid under Mechanical breakdown, towing and labor B) $50. Only the towing bill is covered C) $200. The tune-up is covered under Mechanical Breakdown, the towing isn't D) $0. Tune-ups aren't covered and the car was not towed from the place of disablement.
B
The basic dwelling coverages, like the traditional standard fire "165 lines" policy include which of the following losses A) A neighborhood gang vandalizes your home and spray graffiti all over it B) You own a small home that you rent to students. It catches fire and burns down. C) A thief breaks into your home and steals your wide-screen HD television set. D) Your home is flooded when the city sewer systems backs up.
B
The insured wants to know low long the adjustment and repairs will take because he is losing money while the tenants are out. Jack tells the inured that a Dwelling policy includes coverage for loss of use Los of use is also referred to as what? A) Contents coverage B) Fair rental value C) Other structures coverage D) Rental car coverage
B
The oldest form of insurance known exist is A) Personal insurance B) Ocean Marine insurance C) Commercial property insurance D) Life insurance
B
What characteristic of property determines that it would be best covered by "marine" insurance A) Its value. Only high valued property should be covered by insurance B) Portability or its ability to be moved or transported from one place to another. If the property can be moved, its eligible for marine insurance C) Its size. Small items constitute less of a risk and do not require insurance D) Its weight. Heavy items cost a lot of transport. As such they are more risky.
B
When voluntary carriers begin to restrict the coverages they offer, or begin to totally cease writing insurance in a particular market, what happens? A) The federal government steps in and makes carriers offer insurance B) Insurance becomes either unavailable or unaffordable to the public C) State legislators carry favor with various carriers to protect their personal business D) Companies begin to go bankrupt
B
Which of the following does NOT constitute "conducting insurance business" in Texas? A) Investigating and adjusting insurance claims B) Repairing damaged vehicles under a "preferred body shop" arrangement with an insurance carrier. C) The solicitation of insurance applications D) The binding and sale of insurance policies
B
Which of the following is NOT a true statement that describes the Texas Workers Compensation Insurance Fund A) TWCIF premiums are higher than premiums offered in the voluntary market B) Even if a Texas employer meets all the eligibility requirements, the TWCIF can reject the employer and provide it with work com insurance C) TWCIF is required by law to provide insurance to employers that other carriers cannot or will not cover D) If TWCIF rejects the employer, the employer may appeal the decision as far up as the Texas District Courts
B
You've just paid your insured $1,265 against a total repair job of $1,765 after a 3rd party rear ended your insured. You decide to pursue recovery of your payment and your insureds $500 deducible from the 3rd party. This is known as? A) Appeal B) Subrogation C) Reimbursement D) Arbitration
B
Your insured is covered under a Dwelling DP-3 policy which contents coverage and no endorsements. He has a hunting rifle stolen by forcible entry into the dwelling. The front door is severely damages and must be replaced. Which of the following is a true statement regarding this loss? A) The entire claim will be denied B) Only the damage to the structure caused by the burglars will be paid C) The theft of the gun is covered under personal property D) Both the damage to the door and the theft of the gun will be covered
B
A merchant wants to obtain insurance coverage to protect himself from the costs of shipping cargo if, for some reason, the shipment does not reach its destination. This type if coverage is called A) Hull coverage B) Cargo coverage C) Freight coverage D) Liability coverage
C
Companies in the business of long-haul trucking are responsible for damage to customer goods they transport EXCEPT for damages resulting from A) Lack of maintenance B) Shifting of cargo due to reckless driving or packing by the carrier C) Acts of God D) Traffic accidents
C
Dwelling policies with some endorsed additional coverages, are primarily used by: A) Traditional standard market insurance carriers B) Highly customized high deductible insurance programs C) The high-risk residual marker, like windstorm and flood insurance D) Managing general agents for their more influential clients
C
First, foremost and always, what is an adjusters most important objective in todays work of insurance? A) To save money for the carrier so stockholders will invest more readily and allow the company to secure more capital whenever it needs it. B) To find ways to deny claim is in order to keep insurance losses, and therefore premiums, as low as possible C) To help those who have been injured, or who have suffered as loss that is covered by the insurance contract, or for which an insured policyholder is responsible, while at the same time minimizing loss for the insured party and/or carrier. D) To uncover insurance fraud and do whatever is necessary to make sure those responsible are prosecuted to fullest extent of both civil and criminal law.
C
Insurance is a product designed to provide relief for damages arising from a loss. What is meant by the term "relief" in most cases? A) Replacement or repair of damaged property B) Alleviation of pain resulting from an injury C) Monetary compensation or payment D) A promise to return the claimant to pre-loss conditions by whatever means necessary.
C
Mark Ruffalo has an automobile liability insurance policy. This policy is designed to pay A) Whenever someone makes a claim against Mark B) Only if someone filed a lawsuit against Mark C) Only if Mark is legally responsible, or libale, for causing someone else injury or property damage D) Only if ordered by a court
C
Randy has Mechanical Breakdown coverage on his Personal Auto Policy with a $100 deductible. One day while driving to work the engine simply stops and he must have the car towed to a garage for repairs. The mechanic finds the crankcase has no oil in it and the engine has frozen up. The mechanic can find no oil leak. It just appears that no one has checked the oil in a long time and the engine block must be replaces at a total repair cost of $2370. He was also charged $35 for the inspection/diagnosis. How much would you be willing to pay on this claim? A) $2,370. This is what Mechanical Breakdown insurance is for B) $2,270. The amount of repairs less the $100 deducible. C) $0. The breakdown was caused by lack of maintenance D) $2,305. Repair costs plus the inspection/diagnosis charged, less the deducible
C
Recall that the appraised damage was $10,000. How much money would Ms. Yurasov receive in the settlement with a $1,000 deducible A) $10,000 B) $100,000 C) $9,000 D) $1,000
C
Robin is involved in an automobile accident after which she complains of neck pain and headaches. She is taken by ambulance to the hospital where the doctor tells her to stay home form work. Which of the following cannot be claimed under Robins PIP coverage? A) Reimbursement of the cost of the ambulance ride B) Reimbursement for loss of income for to Robin being unable to work for 2 days C) Reimbursement for "pain and suffering" D) Reimbursement for the neck brace and pain medications given at the hospital.
C
To be a good claims adjuster, you must earn what from both your policy holders and claimants? A) Their money B) Their assets C) Their trust D) A contract
C
To provide consumers with availability and affordability of insurance coverages no longer available through normal channels, state legislatures typically create what A) More laws B) Self-Insurance Funds C) The Residual Market D) The Department of Insurance
C
Under what kind of Ocean Marine coverage would a vessel owner protect itself against liability legally imposed for injuries to the crew of the vessel? A) Hull Coverage B) Transportation and Cargo C) Protection and Indemnity D) Cargo and Freight
C
What is the residual market choice for consumers unable to secure residential property coverage in the voluntary insurance market? A) The Department of Insurnace B) An automobile joint underwriting association C) A state-sponsored Property Insurance Corporation D) A Workers Compensation Joint Underwriting Association
C
When a carrier received a lawsuit filed against on of its insured, it must assume everything that is claimed in the petition as true, and if those allegation were truthful and would fall within the coverage provided, then there is an obligation to defend the lawsuit. Which of the following concepts does this refer to? A) A reservation of rights B) Right of settlement C) The duty to defend D) The duty to cooperate
C
When paying a claim, an insurance adjuster should A) Try to save the carrier money by minimizing payment to the claimant in any way possible B) Pay the claimant as much as possible so that they are happy with their service C) Pay what is owed to the claimant- no more and no less D) Try to deny the claim before making a payment
C
Which of the following does NOT describe an "impaired employer" protected by the Texas Cerified Self-Insurer Guaranty Association? A) A Texas employer who has suspended payment of compensation as determined by the Commission B) A Texas employer who has filed for bankruptcy C) A Texas employer who fails to pay its insurance premiums, resulting in cancellation of their workers compensation insurance policy D) A Texas employer for whom a receiver has been appointed by a Texas Court
C
Which of the following is NOT a law that can ultimately affect one's legal liability? A) Workers Compensation B) No-Fault/PIP Law C) Valued Policy Law D) Statue of Limitations
C
Which of the following is NOT a member of the Texas Residual Insurnace Market? A) Texas Workers Compensation Insurance Fund B) Texas Automobile Insurance Plan C) Texas Joint Cooperative Fair and Affordable Insurance D) Texas Windstorm Insurance Underwriting Association
C
Which of the following is NOT a true statement concerning auto physical damage covered under a Personal or Business Auto policy? A) Transportation Expenses ends when the covered auto is repaired and returned to use or the company pays for its loss. B) Collision and Comprehensive claims are adjusted on an ACV basis C) Physical Damage coverage applies only when the insured is not at fault D) A "total loss" is declared when the cost to repair exceeds, or is expected to exceed, of the value of the vehicle
C
Which of the following is NOT an example of "compensatory damages?" A) Medical bills for treatment of injuries sustained in an accident B) Pain and suffering C) A jury verdict of $1,000,000 against the defendant to punch them for being for its reprehensible actions causing the loss D) Wages lost by an insured party for inability to work because of injuries sustained
C
Which of the following statements is NOT true of residual markets? A) Businesses who are turned down for workers compensation insurance in he voluntary market, and who have no unpaid W/C premium debt, can secure workers compensation insurance through a WC Joint Underwriting Association B) Insurance purchased from the residual marker is more expensive than that purchased from the voluntary market C) The residual market is the preferred market for consumers seeking more competitive rates tan carrier offer in the voluntary market D) The residual market for auto insurance is typically called an automobile joint underwriting association
C
Which of the following statements is NOT true? A) If a lawsuit is filed and served upon an insured, the insured should immediately tender the lawsuit to the insurer or it may jeopardize the carriers ability to defend the claim, and the insureds right to coverage under the policy B) Under a liability policy, the duty to defend is greater than the duty to pay C) If a question of coverage arises and cannot be swiftly resolved in favor of the insured, the carrier should immediately tender the claim to its attorney and deny the claim D) A carrier has the right, but not the duty to settle any claim
C
Which of the following would be excluded under a DP-3 Dwelling policy? A) An insured dwelling burns down due to a grease fire that started in the kitchen B) A water heater suffers a split seam and leaks water all over the insured dwelling, causing $5,000 in water damage C) A river overflows due to excessive snow melt, flooding a nearby home D) A summer thunderstorm produces 3" hail that causes damage to the roof of an insured dwelling
C
Which of the following would qualify as a "claim" in the property and casualty insurance industry? A) Mario calls and the police in the town where his beach house is located and reports the burglary. B) The driver of the car Mario hit insist on reporting the accident to the police. C) A week after his trip to the beach house, Mario received a letter from an attorney representing the driver of the car he hit. He sends it to his insurance agent and asked that his automobile carrier handle the matter D) After the accident, Mario is given $180 ticket by the police for following too close, which he untimely pays without contest.
C
Why is insurance such a unique product? A) It's a product that you can't touch or feel, but its there B) You may never get anything for all the money you spend on it, but if you do need it, it will be there C) It is a financial product—the purchase of a promise based totally on trust—that is absolutely essential in todays world D) You cannot buy a home without it
C
A fire breaks out in one of the other properties that Ms. Yurasov owns, a duplex insured under a Texas Dwelling policy. The damage is extensive, and the duplex is appraised as a total loss. Which of the following would NOT be covered by the duplex's dwelling policy? A) Building material stacked outside the dwelling for use in building an attached garage B) The installed stove and refrigerator owner by landlord and in service to the duplex C) Windows shaded installed in the duplex by the landlord D) $10,000 in damaged personal property owned by the tenant
D
A jury issued a verdict against a defendant for $1 Million to punish the defendant for reprehensible behavior and as a deterrent to doing it again. What kind of damages is this known as? A) Special damages B) Pain and suffering C) Compensatory damages D) Punitive damages
D
A law that provides that one cannot sue the government is known as what? A) Workers compensation B) Breach of product warranty C) A statue of limitations D) Sovereign immunity
D
A set of laws that define the legal rights of the survivors of a deceased individual, whose death is the result of a tort, is call a A) Statute of Limitations B) No fault/PIP Law C) Valued Policy Law D) Wrongful Death Ave
D
Although Ocean Marine coverage is fine for insuring boats and cargo, what about liability insurance? What kind of insurance is required for that exposure? A) An Ocean Liability policy B) The typical Commercial General Liability policy provides this coverage C) Sailors Indemnity Coverage D) Ocean Marine policies can provide both 1st and 3rd party liability coverage, therefore, no other policy is needed
D
As an adjuster, Haywood's responsibilities include all of the following EXCEPT to A) Contact the insured and any third party B) Investigate the accident C) Evaluate damages D) Repair the damaged properly
D
Dwelling policies A) Are only for people living out of state B) Do not cover damage to the dwelling C) Have more coverage than a homeowner policy D) Provide basic property protection for individuals who own rental homes
D
Dwelling policies are primarily intended for A) Nancy and Bob, who are looking for a cheap, blended insurance policy that offers protection against loss to property as well as legal liability B) Jim is seeking protection from liability to guest injured on his property C) Hayden wants renter's policy D) Jack and Diane only want to protect their financial interests in property they rent
D
Entities designed for the express purpose of protecting consumers from financial loss arising from the insolvency or impairment of authorized insurers or certified self-insurers are called what A) Stock Insurance Companies B) Mutual Companies C) Managing General Agencies D) Guaranty Associations of Funds
D
Haywood's thought process during the handling of this claims should be as follows: A) Close, Dispose, Evaluate, Investigate, Contact B) Investigate, Evaluate, Dispose, and Close, Contact C) Dispose and Close Contact, Investigate, Evaluate D) Contact, investigate, Evaluate, Resolve and Close
D
Inland Marine insurance and "Floater" are typically used to insurance all of the following EXCEPT A) Camera equipment B) Gun collection C) Signs D) Automobiles
D
Janie completed her move to New York and moved into a Manhattan apartment with three roommates. She is now considering several different companies form whom to purchase renter's insurance. What is generally regarded as the most important facto in her decision on purchase of insurance? A) Will her father approve of her choices? B) The ability to pay premiums or have them deducted automatically form her bank account C) Does the carrier have a local agent and claims department so she can see the "face" of the company if necessary? D) Trust that the company will keep its promises
D
Johnson's Paving & Road Construction Company owns and maintains a fleet of heavy equipment consisting of road scrapes, bulldozers and other paving equipment. While working on a stretch of blacktop, a major vehicle accident occurs in the area where they are working and one of the bulldozers is severely damaged. The Foreman reports the loss to the Risk Manager, who reports the loss to the company's agent and carrier. What kind of insurance coverage doe se need to cover the loss A) Cargo coverage B) Hull coverage C) Motor Truck Cargo coverage D) Contractors Equipment coverage
D
Mario decides to make a first party claim so he can get the money to repair the roof on his beach house and replace the television set. Who will he make the claim against? A) The city council where his house is located for not providing appropriate police protection in the community during the storm to prevent looting. B) The police department for not providing appropriate protection during the storm. C) His group heath insurer. D) His own homeowner's insurance carrier that carried the insurance on the beach house.
D
Ms. Yurasov has a $1,000 deducible on this rental home. This means A) $1,000 is the most she can get from any claim B) She must pay $1,000 every month C) It cost her $1,000 to submit a claim D) When she has a covered loss, her part in that loss is $1,000
D
The "pair and set" clause in a property insurance policy holds that the loss of one item in a pair or set A) Does not constitute a partial loss B) Pays the difference in the ACV of the property before and after the loss C) Constitutes a total loss of the pair or set D) Does not constitute a total loss of the pair or set
D
The first and most important rule in handling any property claim is to A) Act fast, act sure and be right B) Never trust what the insured tells you. They almost always lie C) Figure out what the insured wants and give it. That's the only way to close your file D) Never assume coverage. Get the policy and read it.
D
The insured is concerned about all the tenant's personal property in the house and ask Jack if his policy will cover any damage that is cause by water. Jack advised the insured that personal property covered under Dwelling policy includes A) Property owned by the tenants B) Property permanently attached to the dwelling, like kitchen cabinets or carpeting C) Property loaned or leased to the tenants by others D) Property that is usual or incidental to the occupancy of the residence as a dwelling and owner or rented by the insured.
D
To be a good claims adjuster, you must earn what from both your policy holders and claimants? A) Their money B) Their assets C) Their trust D) A contract
D
Under Texas law, can an insured opt not to accept PIP coverage? If yes, how can this coverage be rejected? A) The insured can choose not to have PIP coverage. The must simply tell his agent that he does not want it. B) No, PIP coverage is mandatory for all drivers in Texas C) The insured can choose not to have PIP coverage. PIP coverage will only be added to the policy if the insured specifically asks for it to be added. D) The insured can choose not to have PIP coverage. The coverage must be rejected by the insured in writing.
D
While carrying a load of new model Mercedes Benz cars through the Mediterranean Sea, the ship was assaulted by pirated who could board the ship unbeknownst to the captain and crew until they were surprised at gunpoint. The captain then learned that it was his 1st Mate who was in league with the pirates, that had given the means and opportunity to do so. Such an act by the ships 1st Mate would be known as: A) Jettison B) Overboard Dump C) Peril of the Seas D) Barratry
D
Why do insurers take risk? A) So you don't have to. B) It is their moral obligation C) Federal law requires they do so D) Insurance companies just want to be "nice guys".
A
In his letter, the attorney for the driver of the car Mario hit made a demand for "all appropriate relief as provided under the laws of the State of Texas." What is it that he is wanting for his client? A) Money B) That Mario takes a defense driving course, so it won't happen again. C) A written apology D) That Mario serves 24 hours in county jail.
A
Which of the following is excluded under a Personal Article Floater with "all risk" coverage? A) A valuable mink coat worth $5,000 is virtually destroyed by moths B) A valuable gun collection is stolen form the insureds home C) A telescope designed to track asteroids is damaged by fire D) A stamp collection is virtually destroyed after a severe thunderstorm that caused damage to the homeowner's roof and the roof then leaks water onto the collection.
A
A defense that completely bars recovery when a claimant knowingly enters into an act knowing full well that the act is dangerous and that there is a risk of injury or damage is known as what? A) Assumption of the risk B) No negligence C) Breach of warranty D) Comparative Negligence
A
In which of the following instances would Mitch Homeowners insurance NOT provide coverage? A) In his upstairs garage apartment Mitch has a 2nd "home" office that is subsidized by his employer, A customer falls on the stairs and tears a ligament in his knee. B) Mitch invites friends over to watch a football game. One of them has a little too much to drink and falls of the front step as he leaves to go home. 30 days later he presented Mitch with a $1,500 medical bill resulting for him fall and injuries. C) On the golf course Mitch slices a tee shot right into the picture window of a $1.5 million home. The homeowner catches up to Mitch on the 13th hole and demands that he pay for the damages. D) Mitch rents the Galveston Beach Community Center for family reunion. A guest falls and sues Mitch for injuries sustained
A
Ralph suffered a compensable injury that will result in about 3 months of total disability. His average weekly wake is $724.50. his weekly temporary income benefit would be what A) $507.15 B) $543.38 C) $483.02 D) $483.00
A
Which of the following is the correct definition of "slander"? A) Defamation of character is the form of spoken or verbal word B) That for which one is liable C) A lie or falsity D) Defamation of character in the form of the written word
A
A 14-year-old bully has been suspended from school twice for fighting. The principal has met with his parents and told them that if it happens again, they must expel the boy. One day while riding home on the school bus, the 14-year-old intentionally shoved a 13-year-old boy while exiting the bus. The boy fell to the concrete and fractured both of his wrist. Which of the following is a true statement regarding potential liability and coverage? A) The 13-year-old would have no recourse because he didn't take any action to defend himself B) The parents of the 14-year-old and the school could both be help legally responsible for the act of the 14-year-old C) The school would not be responsible, as it occurred off school grounds D) The parents would not be responsible, as their son was officially in the custody of the school while still on the bus.
B
A shipped wants to obtain insurance coverage on both ongoing and incoming shipments while in transit. This type of coverage is called A) Hull coverage B) Cargo coverage C) Freight coverage D) Liability coverage
B
After the investigation and evaluation of this claim, if Haywood determines that his insured is not legally responsible for the 3rd party's damages, Haywood should A) Change the facts and evaluation to make it sound like the insured is more at fault so he can justify paying for the 3rd party's damages; because if he denies the claim, it will just make the 3rd party angry and will result in a lawsuit B) Initiate a discussion with the 3rd party to advise them of his final decision on liability, including the rationale for that decision. C) Do nothing. He should report his findings to the company. The ultimate determination of liability must be left to attorneys D) Tell the insured driver that is not responsible, then ask the insured to call the 3rd party and advise them accordingly.
B
Beth is involved in an automobile accident where she is at fault. Both her car and the other car sustained extensive damage. Beth sustained minor injuries which requires her to see a doctor the next day. The other driver was transported to the hospital by ambulance. Which of the following would be covered under Beth's PIP coverage? A) A claim field by the other driver demanding compensation for the repairs to their vehicle B) Reimbursement of the cost of Beth's doctors visit following the accident C) Reimbursement for the cost of the car that Beth had to rent to get to the doctor because her craw s not Driveable. D) A claim filed by the other driver demanding compensation for all medical expenses as well as pain and suffering.
B
Billy is driving to school one morning and speeds up a little to beat a traffic signal about to turn red. Sam is approaching the intersection form the opposite direction but is talking on his cell phone. Billy turns left in front of Sam and they collide. Damage to Billy's car is $3,680 and damages to Sam's car is $8,675. The state in which they live provides that if any party to an accident is at least partially at fault, there can be no recovery. Bill's and Sam's carriers both deny any payments to the other party. This is an application of which liability defense? A) Joint and several liability B) Contributory negligence C) Absolute liability D) Comparative Negligence
B
Complete the following sentence: "Once the falsity of libelous or slanderous defamation is proven, damages need not be proven because A) Since the defamation is false, there is no harm done B) Damages are legally presumed: only the extent of damages need to be proven C) Damages can only be proven if the alleged defamatory statements are true D) The law does not allow recovery of damages for defamation
B
Johnny was injured at work. His "average weekly wage" would be based on A) The average weekly earnings of the last 52 weeks just prior to his injury B) The average weekly earnings of the 13 weeks prior to the injury C) His hourly wage times 40 hours per week D) The amount earned during the full payroll week immediately proceeding his injury.
B
A homeowner has a HO-3 policy with $100,000 in liability coverage and $1,000 in Med Pay. One day his 17-year-old son and girlfriend were washing the family car when he accidently smashed her fingers in the car door, causing two fractures. You are an adjuster for the Homeowners carrier and receive a claim for $1,350 in medical expenses. How would you recommend that the claim be handled? A) Pay $1,350 under the HO-3's Med Pay coverage and close the file B) Pay $1350 under the HO-3s liability coverage as it was clear the son was at fault C) Contact the insured and advise him that although the claim is not covered by their homeowners policy, it may be covered under their automobile Med Pay coverage and refer him to his automobile insurer. D) Send a denial to the insured because the girlfriend assumed the risk of injury when she agreed to help wash the car.
C
All of the following are true of Texas workers compensation EXCEPT A) In the events of accident death, death benefits include actual burial expenses of $6,000 whichever is less B) If, after reaching max medical improvement, an employee sustains a residual permanent impairment, he or she will be entitled to 3 weeks of impairment income benefit for each percentage of disability C) If an employee suffers a catastrophic injury and becomes permanent total disabled, his benefits last until he turns 65 and then they are terminated D) The 1st payment of any disability benefit due after occupational injury shall be made by or before the 15th day of thee start of disability
C
Barry is driving on the interstate and moves to change into the left lane of travel. He did not see a car approaching from the rear in the left lane speeding at approx. 90 mph. The speeding car sideswipes Barry's car and spins round, coming to a stop when it crashes into a retainer wall. The other driver accuses Barry of negligence in improperly changing lanes. Which if the following would not be defense that Barry could use against the driver and his claim of negligence? A) Assumption of the risk B) No negligence C) Breach of warranty D) Comparative negligence
C
In the preceding example where the 14-year-old bully pushed the 13-year-old off the bus, which if any of the following insurance coverage would most likely respond to this accident A) The school's general liability policy and the parents' homeowner's policy would cover the incident B) The school's general liability policy only C) The school's business auto policy and the parent's homeowner's policy would both provide coverage for the incident D) None. All policies of insurance would exclude coverage for this event as it is was intentional act.
C
Which of the following actions would constitute libel? A) At a baseball game in front of the fans a man yells "Hey ump you're blind and incompetent! You should be fired and never allowed to ump a game again!" B) You get into an argument with your neighbor over who owns the tree between your homes. In private, you tell your neighbor that "You obviously cheated your way thought school and shouldn't be trusted with a task requiring any sense" C) A man writes a "Letter to the Editor" complaining that the manager of a local restaurant discriminates against minorities, hired illegal labor as Kitchen help, and charges inflated prices for food. D) A reporter writes a column detailing the events of a high-profile criminal trial and mentions the name of the defendant.
C
Which of the following exposures would be covered under a Homeowners policy? A) Spanking a neighbor's child who hit your child in the face B) Operating a home-based business C) Operating a motorized car purchased for a disabled spouse D) Lending the family car to a neighbor who subsequently caused a 3 car pile up while driving intoxicated
C
Which of the following would be covered under Personal Injury Liability Coverage A) Your insured is injured when he falls off a ladder while painting his house B) The insureds daughter is injured when she is bit by the family dog C) You write an editorial for a newspaper stating that a neighborhood lawn care company engages in unethical business prices. The owner sues you. D) Your insured feels that her reputation was compromised by rumors that a neighbor spread about her and makes a claim against her own policy for slander.
C
A business arranges to have a large sign installed at the corner of its property for greater visibility. The cost of the sign, including installation is $11,500.00. To ensure adequate financial protection against loss, where would one look to find coverage? A) A standard Commercial Property Policy B) A jewelers block policy C) Commercial articles policy D) Sign coverage policy
D
Albert Smith is involved in an accident, ultimately determined to be both his fault and the fault of the other driver. Alberts defense and the method of determining damages due each party by assigning percentage of negligence to each party, is known as A) Assumption of the risk B) Intervening cause C) Contributory negligence D) Comparative negligence
D
For which of the following situations would Homeowners Personal Liability NOT provide coverage A) While you are away, your teenage son and daughter throw a while party at your house at which there are approx. 75 teens and lots of alcohol. B) You live in a subdivision that has a small fishing pond, so you buy a small boat for fishing on weekends. You worry that some kids might try to take it our on the pong and get injured, so you keep it locked to a tree. C) The landscaping around your house is picturesque. Now your daughter is getting married and your thinking of having a small reception for friends and relatives in the back yard, but you're concerned about the liability. D) Yesterday you found two bags of weed under your son's mattress and a small notebook with names, dates and dollar amounts. You just received a call from a parent of a student to whom he allegedly sold weed. She said she was going to "sue you for everything your worth" for what your son did to hers.
D
Harry was sued for starting a fight with and hitting hie neighbor. He told his insurance company that his neighbor stated the fight but despite repeated requests, he failed to appear for deposition or trial. The insurance company denied coverage to Harry under which of the following policy conditions? A) A reservation of rights B) Right of settlement C) The Duty to Defend D) The Duty to Cooperate
D
In which of the following instances might coverage under your Homeowners policy be limits, if not totally excluded, in todays insurance climate? A) You live in a subdivision that has a small fishing pong. You purchase a small 8-foot boat to fish out on weekends. One day two young boys take it out on the pong and flips it over. One of the boys drowns. B) A cable repairman trips over a garden hose that is lying on your lawn covered by grass that hasn't been mowed in weeks C) You have a 3-wheeler for carrying firewood and doing general work around the house. Your 12-year old son and friend were riding it when he took a sharp turn and flipped the 3-wheeler. His friends are was broken. D) You've oner a pit bull since it was a puppy and it is as gentle as a kitten. One day your son' friend was playing rough with the dog and it bit him on the forearm. The wound was severe, and it required a lot of stitches. The child's parents are threatening lawsuit
D
The perfect defense to a claim of defamation is A) That it was done unintentionally B) That no damage was done C) That the claimant already has a bad reputation D) That what was said or written was the truck
D
Your insureds' s son picks a fight with another boy at school and punches him in the nose, breaking it. The parents of the boy file a claim against your insured for the medical bills as well as the pain and suffering of their child. Would this loss be covered under the Homeowners policy? A) Yes. The homeowner's policy will respond, and the full liability and med pay limits will be available B) No. The loss is excluded because the incident happened at school. C) No. The loss is excluded because the insured's son intentionally harmed the other child. D) Yes. The Homeowners policy will respond however, there may be a reduction in limits for vicarious parental liability.
D
