Insurance Claims Adjusting Review Quiz

Which of the following is not a claim settlement option? A. Forcing the insured to sue by offering less than the claim is worth; B. Repairing property; C. Replacing with like kind and quality; D. Replace with new

A. Forcing the insured to sue by offering less than the claim is worth is an unfair claim practice.

Which of the following is the type of report that indicates the initial results of a claim investigation? A. Field report; B. Interim report; C. Full report; D. None of the above

A. The initial report is called the field report.

Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue? A. Scheduled Payment Release; B. Full Release Settlement; C. Advanced Payment; D. Structured Settlement

B. A full release is a release that finalizes the claim and usually prevents future claim payment requests.

Should an insured fail to report a claim in a timely fashion the adjuster will usually: A. Deny the claim; B. Send the insured a reservation of rights letter; C. Cease investigating; D. Seek the advice of the company's attorney

B. A late reporting of a claim can prejudice the company's ability to conduct a proper investigation. Therefore, to preserve the insurer's rights, a reservation of rights letter is usually sent to the insured.

An innocent party relies on certain statements made by the adjuster and is damaged as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of: A. Waiver; B. Estoppel; C. Duties of the adjuster; D. Law of contract

B. If an innocent person relies on the statements made by an agent or adjuster and is damaged as a result; the guilty party may be prevented (estopped) from denying relief.

Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated? A. No release or Walk-Away; B. Rehabiliation; C. Advanced Payment; D. Open-Ended Release

C. Advance payments help to relieve the financial burden on the claimant until the claim can be settled.

A company adjuster primarily represents the interests of: A. The insured; B. The claimant; C. The insurer; D. The public

C. An insurance company adjuster primarily represents the interest of the insurer.

States have adopted statutes regarding claims adjusting. To avoid unfair treatment to a claimant, the adjuster must not: A. Promptly investigate the claim; B. Follow the laws regarding the number of days in which to commence an investigation; C. Deny the claim until a fair and prompt investigation has commenced; D. Pay the claim within a reasonable number of days after the final proof of loss has been received.

C. The adjuster is guilty of an unfair claim practice if a proper investigation is not conducted.

An adjuster's license will usually be revoked for which of the following reasons: A. Denying claims that are not covered; B. Failing to report a change of address; C. Having been convicted of a misdemeanor; D. Having been convicted of a felony

D. A conviction of a felony will usually cause the insurance department to revoke the adjuster's license.

The insured has been involved in an automobile accident and has sustained bodily injuries and damage to the insured vehicle. The adjuster will usually: A. Withhold any payment until all the bills have been reviewed for payment; B. Pay to repair the vehicle and pay the medical bills later; C. Pay for the repair of the vehicle and require a release for all claims; D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release.

D. The adjuster can settle certain aspects of a claim and obtain a partial release and leave the rest of the claim open for future settlement.

Mr. Jones has damaged his vehicle by striking a tree. He can: A. Take a car to a repair garage recommended by the insurer; B. Take the car to a garage of his/her choice; C. Accept the payment based on the adjuster's estimate; D. All of the above

D. The adjuster can suggest a repair shop but the final decision as to where the vehicle is to be repaired is up to the claimant.

The giving up of a known right is called: A. Estoppel; B. Violation of policy conditions; C. Rebating; D. Waiver

D. The giving up of a known right is called a waiver.

Which of the following is NOT a claim settlement option for liability claims? A. Lost wages; B. Excessive amounts claimed; C. Loss of use; D. Disfigurement

B. Insurance is not for profit.

A public adjuster represents the interest of: A. The insurer; B. The insured; C. The employer; D. The interest of the general public

B. The public adjuster represents the interests of the insured.

In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the following? A. The cost to replace the vehicle with like kind and quality if a current year model; B. Use the most recent publication of an "Official Used Car Guide"; C. If not listed in the "guide", obtain quotations from automobile dealers; D. All of the above depending on the circumstances

D. All of the responses are options for the settlement of a claim for a total loss to a vehicle.