Louisiana Adjuster
All of the following would be excluded by the basic cause of loss form under a Commercial Property policy, EXCEPT a) Damage caused to the covered buildings electrical system by a power surge. b) A water pipe that bursts and damages the interior of the building. c) Water leaks from the sprinkler system in the building, causing wall and floor damage. d) Damage to flooring that occurs when water seeps from the dishwasher in the corporate kitchen for several months.
Water leaks from the sprinkler system in the building, causing wall and floor damage..
Before the acts of September 11, 2001 in the United States, insurers:
Did not exclude coverage, nor did they charge an extra premium to cover damages caused by terrorism Before the acts of September 11, 2001 in the United States, insurers did not exclude coverage, nor did they charge an extra premium to cover damages caused by terrorism. Usually, the damage caused by the terrorism, such as a fire that started after a homemade bomb explodes, would be covered by the peril of fire
Willie's Widgets has been earning a large portion of their market share for 10 years. During Willie's 11th year in business, Wynonna's Widgets opens and her superior marketing practices leaves Willie unable to continue in business. Which of the following types of risk caused Willie's loss?
Dynamic risk
All of the following statements are TRUE regarding the perils of the Homeowners forms, EXCEPT a) Riot or Civil Commotion is covered for both the buildings and personal property under the open perils of the HO-5 form. b) Fire or lightning is a named peril for personal property under the HO-3. c) Explosion is a named peril of the HO-2 form for both dwelling and personal property. d) Fire or lightning is a named peril covering the buildings and other structures under an HO-4 form.
Fire or lightning is a named peril covering the buildings and other structures under an HO-4 form.
A method of replacing damaged property with something not exactly like the damaged item, but will perform in a similar fashion is known as:
Functional replacement cost.
The coverage territory of the Business Auto form provides for "worldwide liability coverage" for private passenger autos that the insured: a) Hires, leases, rents or borrows without a driver while outside the United States, its territories and possessions. b) Purchases while outside the United States, its territories and possessions. c) Sells while outside the United States, its territories and possessions. d) Occupies while outside the United States, its territories and possessions.
Hires, leases, rents or borrows without a driver while outside the United States, its territories and possessions..
The attempt to restore an insured to his or her previous financial condition before a loss occurred is BEST described as:
Indemnification
Most aircraft physical damage (hull) policies are settled on a
Insured value basis.
A type of insurance that permits an insured to collect from his/her own insurance company, without proving the negligence of a third-party, is known as:
No-fault.
Products being imported from Great Britain into the United States would be covered by
Ocean marine policies
The 1943 New York Standard Fire policy provides for an insured to bring a lawsuit to recover a loss from the insurer within _________; the Louisiana Standard Fire Policy amends this to allow the insured to bring a lawsuit against the insurer to recover a loss ___________.
One year; two years
Which of the following statements correctly applies to a named perils policy?
Only the perils listed by name in the policy are covered. Only the perils listed by name in the cause of loss form are covered perils. A loss by a peril that is not named would not be covered. Under a named peril policy the burden of proof is on the insured to prove that one of the named perils caused the loss.
A Farm Liability policy provides each of the following coverages, EXCEPT: a) Bodily injury and property damage. b) Personal injury and advertising injury. c) Medical payments. d) Professional liability.
Professional liability.
Aiden is reimbursed by his insurance company for the cost of a new sofa, after a 10-year-old sofa is destroyed by fire. Which of the following best describes the loss settlement method used in this situation? a)Replacement cost. b)Agreed value. c) Actual cash value. d) Stated value.
Replacement cost
Horatio is a business owner who is part of a business owners group that are buying old commercial buildings in their small city and refurbishing them. Horatio has bought a beautiful historical building made mostly of wood. He installs a sprinkler system right away to prevent a fire. What risk management strategy is Horatio using?
Risk reduction
Meg has been in very good health in the past 3 years. She has been exercising, her blood pressure is at a perfect level and her cholesterol is the envy of all her friends. Because Meg is feeling so healthy, she decides to cancel her health insurance policy. This is an example of which of the following risk management methods?
Risk retention
For a building to be eligible for a Flood insurance policy issued by the NFIP, it must be resistant to all the following, EXCEPT: a) Floatation. b) Collapse. c) Lateral movement. d) Rotation.
Rotation.
The Louisiana Commissioner of Insurance may place on probation, suspend, revoke, or refuse to issue, renew or reinstate a claims adjuster's license or may levy a fine not to exceed _______ for each violation.
$10,000.
The supplementary payments of Section II - Liability of the Business Automobile policy covers the cost of a bail bond up to:
$2,000
Under the "Emergency Program" in all states except Alaska and Hawaii, the National Flood Insurance Program will insure a single-family residence for up to:
$35,000.
Leslie holds a home state adjuster license in Florida and a nonresident adjuster license in Louisiana. A claimant has filed a lawsuit against Leslie for an unfair practice she committed while adjusting a claim in Louisiana and the papers have been served upon the Louisiana Commissioner. How long does the Commissioner have to forward a copy of the service of process to Leslie?
10 days
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..
A slippery floor is an example of:
A physical hazard.
Which of the following statements is TRUE regarding an "examination under oath"?
An EUO will only be requested by an insurer if they have reason to believe an insured has not been truthful in their account of the circumstances of the loss. is correct
In order to be covered under Coverage C - Medical Payments of the Commercial General Liability policy, bodily injury must be caused by
An accident Medical payments coverage applies to accidents and the limit of coverage applies per person per accident. Legal liability and negligence are not required to be proven.
Insurance companies often outsource a large percentage of their processes to Third Party Administrators (TPAs). All of the following facts about TPAs are true, EXCEPT a) TPAs can collect premiums from insureds. b) TPAs must be licensed and renew their licenses annually. c) TPAs can adjust and process claims. d) TPAs assume the risk on the policies they handle.
TPAs assume the risk on the policies they handle.
Which of the following is the BEST explanation as to the reason insurance policies are called "unilateral contracts"?
Because the insurance company is the only party to the contract that can be sued if they do not meet the terms..
Willie's Widgets has leased a business location for a term of 10 years. In the seventh year of the lease, the location is destroyed by fire. As luck would have it, Willie had purchased "Leasehold Interest" coverage as part of his Commercial Package policy. All of the following would be covered for Willie, EXCEPT:
The damage that Willie caused to the parking lot by bringing large, heavy rigs onto the lot, causing the asphalt to buckle
Which of the following losses would be covered by the EC peril of "volcanic eruption" under a standard Dwelling form? A) The cracks in the ceiling of the dwelling due to the earthquake preceding a volcanic eruption. B) The damage to an exterior patio from a large bolder that was dislodged due to an aftershock. C) The exterior siding of the dwelling that was ruined by the ash that settled on it from the erupting volcano. D) The cracked foundation of the covered dwelling resulting from the earthquake that caused the volcanic eruption.
The exterior siding of the dwelling that was ruined by the ash that settled on it from the erupting volcano. The exterior siding would be covered because it was damaged by the ash from the volcano. All the other answer choices would not be covered because they are associated with an earthquake.
Which of the following would be covered under the personal property (contents) coverage of an NFIP policy? A) The foundation of the insured building. B) Permanently installed carpeting. C) The insured's riding lawn mower kept inside an attached garage. D) Window blinds.
The insured's riding lawn mower kept inside an attached garage
A public adjuster's fiduciary responsibility is to:
The insured.
A person becomes legally liable by:
Committing a tort A tort is a civil wrong that violates the rights of others. A person becomes legally liable by committing a tort. Generally, a court of law must determine legal liability.
All of the following are a "cause of loss" form, EXCEPT: a)Basic. b)Broad. c)Comprehensive. d)Special.
Comprehensive
Jamie has submitted a claim against Ron's insurance policy for a loss he has legitimately suffered. This claim is a: A) Third-party property claim. B) First-party liability claim. C) Third-party liability claim. D) First-party property claim.
Third-party liability claim When a "claimant" submits a claim against an "insureds" policy, the claim is a third-party liability claim (even if the claimant suffered a "property damage loss").
All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT:
To pay amounts to the insured or a third-party claimant that are at least as high as the national average of similar claim settlements. Insurance claim settlement amounts are determined by a policy's limit of liability, not a national average that is paid on similar claims.
Which of the following sentence which best describes the term "fiduciary"? a) A person who submits a claim to their insurance company. b) A person who has been bonded as honest and trustworthy. c) A person who is entrusted with the assets of another. d) A person who holds a fiduciary's license.
A person who is entrusted with the assets of another. Insurance companies, agents, producers and adjusters have a fiduciary responsibility to their clients in the collection and handling of premiums, claim payments, and return of unearned premium. All of these items are "assets" that the fiduciary has been entrusted to handle. There is not a "fiduciary's license".
Which of the following shows a correct sequence of activities for an adjuster when negotiating a claim?
Acknowledging the claim, then opening a line of communication with the insured or claimant..
The Homeowners policies allow for the attachment of the Personal Injury endorsement. Which of the following exposures would be covered under this endorsement? a) Injury suffered by a person who was assisting the insured in removing black mold from his premises. b) Slander committed by the insured, who is a drug dealer and makes false statements against another drug dealer. c) Bodily injury suffered by a third-party that was struck by the insured while driving his vehicle. d) An insured's oral statements to others that harmed the reputation of another person.
An insured's oral statements to others that harmed the reputation of another person.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following statements is FALSE regarding this power? a) The insurer grants this power to the adjuster in a written contract. b) Only an adjuster's written statements can legally bind an insurer. c) When adjusting a claim, an adjuster's actions are legally considered those of the insurance company itself. d) When an adjuster makes a mistake in determining the value of a loss, the insurer must still pay that amount.
Only an adjuster's written statements can legally bind an insurer.
Which of the following statements is NOT TRUE regarding the Dwelling Under Construction endorsement to a Dwelling policy? a) The endorsement must be purchased by the intended occupant of the dwelling when it is complete. b) The available policy limit of the endorsement increases as construction of the dwelling progresses. c) The limit the endorsement will pay at any given time in the construction process is 25%, 50%, or 75%. d) The intended occupant of the dwelling under construction must be the named insured on the Dwelling policy.
The limit the endorsement will pay at any given time in the construction process is 25%, 50%, or 75%
Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action? a)If a particular exclusion would apply to the claim that is the subject of the action. b)If a particular insuring agreement would provide coverage for the claim that is the subject of the action. c)The type and amount of damages that will be paid to a plaintiff for the claim that is being disputed. d)The amount of other insurance that would apply to a claim if other policies cover the loss.
The type and amount of damages that will be paid to a plaintiff for the claim that is being disputed.
Alex has his SUV covered under a standard Personal Automobile policy. He has borrowed a trailer from his friend Josh, hitched it to his SUV, and begins moving some boxes from his house to a new house he recently purchased. After he has unloaded the trailer, he is driving back to his house and loses control of his vehicle, wrapping Josh's trailer around a tree. There is no other insurance covering Josh's trailer and Alex's Part D deductible for "Collision" is $250. His deductible for "Other Than Collision" is $300. Before the accident, the ACV of the trailer was $2,000. The cost to repair or replace the trailer with like kind and quality is $1,800. How much coverage would Alex's policy provide?
$1,500 The policy will pay the LESSER of the ACV or the cost to repair or replace with like kind and quality. This would be $1,800 minus the "Collision" deductible of $250, which leaves us with $1,550. However, the Part D limit of liability specifies that no more than $1,500 will be paid for a non-owned trailer, therefore, the correct answer is $1,500.
Personal property that is covered under the Personal Property Replacement Cost Endorsement of a Homeowners policy is damaged and a claim has been filed. The replacement cost of the property at the time of the loss is $2,500. The full cost to repair the property is $2,000. The Coverage C limit of the Homeowners policy is $8,000. No special limits apply to this property and there is no limit applied to the type of property being claimed. Which of the following is the amount that will be paid under the endorsement?
$2,000 The endorsement will pay the smallest amount of the replacement cost at the time of the loss, the full repair cost, the Coverage C limit, any applicable special limits, or the limit that applies to the type of property being claimed.
When the property covered under an insurance policy is destroyed beyond repair and nothing of value remains, this is known as:
Actual total loss.
All of the following statements describe actions that Louisiana adjusters should not engage in, EXCEPT: a) Adjusters may not act as public adjusters. b) Adjusters cannot acquire salvage and sell it for financial gain. c) Adjusters should not explain policy coverage to the insured, that is the job of the agent/producer only. d) Adjusters working for insurers cannot accept compensation from a contractor employed by the insured.
Adjusters should not explain policy coverage to the insured, that is the job of the agent/producer only.
Personal Automobile policies use which of the following alternative dispute methods when the insured and the insurance company cannot agree on the amount to be paid by the uninsured or underinsured motorist coverage?
Arbitration
In which of the following cases of alleged negligence would the defendant not be legally liable? Bill was restoring an antique auto at his auto store's garage when Jeff drove by the garage. Jeff slowed his car and looked over his shoulder to admire the antique car. Suddenly his car struck a telephone pole. Jeff sues Bill for damages. Jack was having a walkway at his business replaced. There were still several large spaces to be filled when a mail carrier, whose back was broken from the fall, sued Jack for damages. Irene purchased several jars of crabapple jam from a gourmet jam and jelly company. She suffered severe gastric disturbance as a result of eating the jam and sued for damages from the jam and jelly company. Susan accidentally dropped a bowling ball on the foot of Lynette at the local bowling alley. Lynette sued Susan for damages.
Bill was restoring an antique auto at his auto store's garage when Jeff drove by the garage. Jeff slowed his car and looked over his shoulder to admire the antique car. Suddenly his car struck a telephone pole. Jeff sues Bill for damages
An insured suffers a partial fire loss to his residence. Under an HO-3 policy what insuring agreement is available to pay for temporary, alternate living quarters?
Coverage D
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
Joe enters into a contract with Martha to set fire to her house so she can collect on her insurance policy. Martha will pay Joe a portion of the insurance proceeds for his trouble. Which of the following parts of a valid contract is missing in this situation? A) Competent parties. B) Consideration. C) Offer and acceptance. D) Legal purpose.
Legal purpose
The DP-3 standard Dwelling form provides:
Open peril coverage on the dwelling and other structures and broad form peril coverage on contents.
All of the following are duties of the insured after a loss, EXCEPT: Answer Choices:Select the Correct Answer a) Promptly hiring a public adjuster to assist in presenting the claim to the insurance company. b) Promptly reporting the loss to the insurer. c) Cooperating with the insurer in the investigation of the claim by providing the information requested by the adjuster. d) Submitting to an examination under oath (EUO) if requested by the insurer.
Promptly hiring a public adjuster to assist in presenting the claim to the insurance company
The purpose of a status/interim report submitted by an adjuster is to indicate that the adjuster is continuing to work on the claim and:
That the claims adjustment is progressing in a timely manner.
A home is insured by an unendorsed HO-3 form. The home burns and all of the policyholder's jewelry is destroyed. The maximum the insured can collect under the HO-3 policy for the jewelry is:
The actual cash value of the jewelry..
The pre-defined amount of an insurance claim that is paid by the policyholder is known as:
The deductible
Which of the following CGL forms would pay for bodily injury or property damage liability that occurs during the policy period, but a claim for the occurrence is not submitted until after the policy has expired?
The occurrence form..
The insured is liable for $500,000 in damages for a personal injury claim that is covered under the insured's primary liability policy. The primary liability policy has a $300,000 limit per occurrence. The insured also has a $1 million Umbrella policy with a $3,000 self-insured retention limit. How would this claim likely be settled?
The primary policy would pay $300,000 and the Umbrella policy would pay $200,000
Insurance adjusters have the "power to bind". Which of the following statements best describes what this means? A) The adjuster never acts with self-interest. B) The principal is bound to the decisions of the adjuster. C) Adjusters should not profit from a claim without the permission of the claimant. D) If a conflict of interest exists, the adjuster should not work on that claim.
The principal is bound to the decisions of the adjuster..
Patrice has received a reduced payment for her insurance claim and the explanation states that the reduction was due to the "obsolescence" of the damaged property. Which of the following best describes the reason for the reduction in the claims payment?
The property that was destroyed was obsolete.
Which of the following is NOT a "duty of the insured" after a loss? a) To meet with the adjuster and return the adjuster's phone calls. b) To pay damages to any third-party claimant while waiting to be reimbursed by the insurer for the loss. c) To provide any evidence requested by the adjuster. d) To submit a proof of loss statement when requested by the insurer.
To pay damages to any third-party claimant while waiting to be reimbursed by the insurer for the loss.
Which of the following terms means "liability through another person"?
Vicarious/Imputed liability
The giving up of a known right is called:
Waiver
A fur coat that is insured by a Personal Articles Floater is damaged by a pet. Coverage for the coat would be provided because the policy is written on:
An open peril basis.
The Homeowners forms exclude coverage for loss resulting from "earth movement" but the peril of "earthquake" can be added by endorsement as an insured peril for:
Coverages A, B, and C
Kelly, Vince, Ed, and Ginny are all staff adjusters. Which of these adjusters is acting appropriately as a fiduciary agent
Ed knows the claimant can't possibly afford to pay for their extensive damages, but he denies the claim anyway because the cause of loss was not covered by the policy.. If a claim is not covered by the policy, the staff adjuster has a fiduciary responsibility to protect the financial interest of the insurer and deny the loss. The fact that the claimant can't afford to pay for the damages has nothing to do with the coverage issue.
A Commercial Package Policy (CPP) always includes: I. A single Declarations page common to all coverages. II. A single Conditions section common to all coverages. III. A single Exclusions section common to all coverages.
I and II only
The traditional definition of actual cash value (ACV) is
Replacement cost minus depreciation
An adjuster has uncovered some discrepancies in matters pertaining to a claim, and is unable to contact the insured to discuss these matters. What should the adjuster do in this situation?
Send a reservation of rights letter to the insured's last known address
Trevor purchases a condemned house in a run-down neighborhood that is scheduled for demolition by the city. He paid $10,000 for the house and wants to protect his financial investment by purchasing insurance. Which of the following statements is true? a) The property is not insurable because it is not definable. b) The property is not insurable because the loss is expected. c) The property is not insurable because it does not have a quantifiable value. d) The property is not insurable because the loss would not be substantial.
The property is not insurable because the loss is expected
Which of the following statements is NOT true concerning the Law of Large numbers? A) Insurance is based on the Law of Large Numbers. B) The larger the sample group, the more accurate the results. C) The larger the sample group, the more predictable results. D) The size of the sample group is not relevant to the accuracy of the results.
The size of the sample group is not relevant to the accuracy of the results.
Imogene has purchased a personal auto policy including Parts A through D. She is driving to work one day and rolls through a stop sign, crashing into the car that had the right-of-way in an intersection. Imogene submits a claim for the accident. Which of the following would NOT be included in her claims payment? a) The injuries incurred by the other driver. b) Damage to the body of Imogene's automobile. c) Damage to the body of the other driver's automobile. d) The transmission problem Imogene was having prior to the accident.
The transmission problem Imogene was having prior to the accident..
Which of the following is NOT a reason that proper claim reserving techniques should be used? a) To permit the insurer to present a better financial picture to regulatory officials than is accurate. b) To ensure that the company has enough reserve on hand to meet the company's current claim obligations. c) To prevent the necessity of raising premium rates. d) To prevent underwriters from making inaccurate coverage decisions based on data from prior claims.
To permit the insurer to present a better financial picture to regulatory officials than is accurate. .
A standard Homeowners policy is best described as:
A package policy that provides both property and liability insurance..
Emily is an adjuster for Indemnify Insurance and she has been assigned to a first-party claim that was submitted by Harvey. Emily has set up several meetings with Harvey to obtain documents and records relevant to the claim investigation but Harvey has not shown up. Emily has also placed many phone calls to Harvey that he has not answered, nor has he returned the calls when Emily has left a message for him to do so. Which of the following statements is TRUE regarding how this claim will be concluded?
The insurance company has legitimate grounds to deny the claim based on Harvey's breach of duty to cooperate in the investigation of the claim.
The insured carries a personal auto policy providing a bodily injury limit of $50,000 each person with a per accident injury limit of $100,000. He injures two occupants in another vehicle. Their injuries total $60,000 for Mr. Jones and $50,000 for Mrs. Jones. The insurance company spent $40,000 in defense and investigation costs. How much will the insured's policy pay?
$140,000.
Samantha misses three days from work because of a lawsuit against her that requires her appearance in court. She loses $80 in wages each day that she is in court instead of at work. Her Commercial General Liability policy will pay:
$240 The supplementary payments section of the CGL policy will pay UP TO $250 a day for loss of earnings while assisting the insurance company in defense of the claim. However, as with any coverage, it will only pay the amount of the loss, which in this case, is $240.
Which of the following would NOT have the capacity to enter into an insurance contract? a) A person who is under the influence of drugs at the time the agreement was made. b) A person who purchases a sports car without carefully thinking about the costs involved. c) A person who has previously submitted a claim under an insurance contract. d) A person who has just turned 18 but has not yet graduated from high school.
A person who is under the influence of drugs at the time the agreement was made.
Which of the following is NOT an exposure covered by an insuring agreement in a Commercial General Liability policy? a) premises-operations liability. b) Independent contractor's legal liability. c) Insured contracts. d) Hold harmless agreements.
Hold harmless agreements.
In a liability policy, the limits of coverage can be expressed as all of the following, EXCEPT a) Restricted b) Single c) Split d) Aggregate
Restricted There is no such limit a restricted limit. Liability limits can be expressed as a split limit for bodily injury and property damage, or a single limit for both bodily injury and property damage per occurrence. The policy may also contain an aggregate limit which is the most the policy will pay for all claims (bodily injury and property damage) submitted for the entire policy period.
Which of the following statements is TRUE with regard to Admitted Aircraft Liability coverage (Guest Voluntary Settlement)? a) This coverage provides defense costs to owners of airplanes when a ticketed passenger brings legal action for bodily injury. b) This coverage pays for the costs associated with the injuries to a non-ticketed guest on an airplane without the necessity to prove negligence against the insured. c) This coverage pays for the costs associated with the injuries to a non-ticketed passenger on an airplane but only if that passenger can prove that the insured was negligent. d) This coverage pays for the cost associated with the property damage to a ticketed passenger on an airplane when their luggage is damaged by an airport worker.
This coverage pays for the costs associated with the injuries to a non-ticketed guest on an airplane without the necessity to prove negligence against the insured..
The Insurance Commissioner/Director/Superintendent of a given state would refer to an insurance company formed under the laws of a different state as:
A foreign insurer.
Which of the following statements regarding the "Pollution Liability Coverage Form" endorsement to a CGL policy is NOT TRUE? a) It provides coverage for bodily injury due to a "pollution incident" that occurred after the retroactive date. b) It can be attached to either an occurrence or claims-made CGL policy. c) It provides coverage for the clean-up costs resulting from a pollution incident that causes environmental damage. d) It provides coverage for property damage to others due to a "pollution incident" that occurred after the retroactive date.
It can be attached to either an occurrence or claims-made CGL policy
All of the following statements regarding the Motor Carrier Act of 1980 are correct, EXCEPT: A) The Act requires truckers to certify that they are able to meet financial obligations arising from physical damage to nonowned trailers being used under a written Trailer Interchange agreement. B) The Act requires truckers to certify that they are able to meet financial obligations arising from liabilities of their trucking operations. C) The Act deregulated the commercial trucking industry. D) The Act requires that the MCS-90 endorsement be attached to a Truckers policy to demonstrate proof of financial responsibility for liabilities arising from their trucking operations.
The Act requires truckers to certify that they are able to meet financial obligations arising from physical damage to nonowned trailers being used under a written Trailer Interchange agreement. is correct.
Motels insured under an ISO Businessowners may not exceed how many stories?
3 stories. Motels not exceeding three stories may be insured. There is no floor area restriction. Motels closed for more than 30 days are not eligible.
Under a Business Auto policy, which coverage symbol indicates that a car is subject to mandatory no-fault insurance as required by state law?
5 Symbol #5 of the Business Auto policy covers vehicles subject to their state no-fault insurance laws.
Which of the following types of property would be covered by Coverage B of a standard, unendorsed Businessowners policy? a) An owned automobile. b) An unscheduled exterior business sign. c) A copy machine that is leased by the covered business. d) An outdoor fence.
A copy machine that is leased by the covered business.
Which of the following dwelling types would be eligible for the Limited Theft coverage endorsement to their Dwelling policy?
A nonowner-occupied one-family dwelling.
To obtain an insurance agent, producer, or adjuster license, an applicant must be:
At least 18 years of age
All of the following describe one of the four elements of a negligent act, EXCEPT: a) The defendant had a legal duty to perform in a given manner but did not. b) The loss or injury to the plaintiff was a direct result of the breach of duty by the defendant. c) The defendant entered into a legal contract with the plaintiff. d) The plaintiff suffered actual loss of injury due to the defendant's action or inaction.
The defendant entered into a legal contract with the plaintiff.
Liam is a licensed Louisiana adjuster who thoroughly dislikes studying and feels that its unfair that Louisiana requires him to complete continuing education to renew his license. In spite of Liam's strong feelings, he purchases a continuing education course from "CE Courses R Us" to meet his requirements for license renewal. After briefly skimming the course, Liam fails the final exam and is not granted the continuing education hours he needs. Liam is furious and makes false statements on social medial about how "CE Courses R Us" cheated him out of his money. Liam has violated:
The general requirements of the Louisiana Standards of Conduct for Adjusters.
Which of the following would meet the definition of "concurrent causation"? a) A collision claim involving more than two vehicles. b) Two or more perils that cause a single loss. c) A claim involving a consequential loss. d) A train derailment causing cargo damage.
Two or more perils that cause a single loss.. Concurrent causation is defined as a single loss caused by two or more perils, occurring simultaneously or in succession. This becomes an issue when one peril is covered and the other is not. In some states, courts have ruled that the entire loss is covered as long as one of the perils is a covered cause of loss, other states are passing "anti-concurrent causation" laws to limit coverage of the peril that is excluded. However, for the purposes of your state exam, you will simply need to know the definition of "concurrent causation".
Under a liability policy the insurance company will pay damages on behalf of an insured when
When it is established that the insured is legally liable
All of the following would be eligible for coverage by the Business Pursuits endorsement to the Homeowners policy, EXCEPT: a) A salesperson who works for "We Sell Great Stuff" who injures a client while conducting a product demonstration. b) An office administrator who injures a client by spilling hot coffee in her lap. c) An instructor for a continuing education course, who is sued by a student who is offended by a joke he or she told while conducting the course. d) An architect employed by "Architects Are Awesome", who draws up plans for a client, but has incorrectly drawn the dimensions for the home, causing it to collapse and cause bodily injury.
An architect employed by "Architects Are Awesome", who draws up plans for a client, but has incorrectly drawn the dimensions for the home, causing it to collapse and cause bodily injury. .
The "liberalization clause" of an insurance policy: a) States that if an insurer decides to broaden its standard policy coverages, then all outstanding policies issued prior to that decision will automatically receive those new coverages at no additional premium. b) States that the insurer retains the right to suspend or cancel the policy at any time during the policy period. c) States that if a mortgage company liberalizes its loan agreement with the named insured, the insurer must be sent the revised wording within 60 days. d) States that if the insurer broadens its underwriting eligibility requirements, all previously denied applicants must be notified within 60 days.
States that if an insurer decides to broaden its standard policy coverages, then all outstanding policies issued prior to that decision will automatically receive those new coverages at no additional premium.
Claims adjusters have a close relationship to the legal profession but must be careful not to become involved in the unauthorized practice of law. Which of the following would be an example of an adjuster who is engaged in the unauthorized practice of law? a) The adjuster has transmitted settlement offers on behalf of the principal. b) The adjuster has managed claims in compliance with their state's adopted Unfair Claim Settlement laws. c) The adjuster has expressed an opinion, formed from a factual analysis, regarding the extent of damage or injury. d) The adjuster has drafted the legally binding settlement papers on a claim.
The adjuster has drafted the legally binding settlement papers on a claim.
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? A) Soraya was correct in taking this action because as a fiduciary she must act in the best interest of her principal. B) Soraya should not have taken this action because a non-waiver agreement is appropriate notice that should be sent to third-party claimants. C) Soraya was correct in taking this action because sending the reservation of rights informs the claimant that they must comply with their required duties as indicated in the policy conditions. D) Soraya should not have taken this action because a third-party claimant has no rights or obligations under the policy.
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 under the policy.
When an insurer files a declaratory judgement action with a court of law, all of the following questions will be resolved by the court, EXCEPT: A) Will the insurer become insolvent if they pay the claim as submitted by the insured? B) Does the insuring agreement within the policy actually provide coverage for the loss claimed? C) Is there another insurance policy that would be liable to pay part of the claim? D) Has the insured violated any policy condition that would void the coverage provided by the policy?
Will the insurer become insolvent if they pay the claim as submitted by the insured? Declaratory judgement actions are filed to seek judicial determination of the insurer's rights and obligations as indicated by the policy provisions, conditions, definitions, exclusions, etc. The court would not make a determination regarding the solvency of the insurance company because the purpose of the action is only to answer questions as to whether coverage applies, not if the insurer can actually pay the claim.
Anna is walking through the park one day while unwrapping an ice cream sandwich. It was a windy day, and the ice cream wrapper was covered with partially melted ice cream. Anna doesn't want to look for a trash can to throw away the wrapper so she simply throws it down. The wind takes the wrapper across the park and drops it to the ground just in time for Ulysses to ride onto it with his unicycle. The melted ice cream on the wrapper causes Ulysses' unicycle to slip out from under him and he falls backward, striking his head on the pavement. Several witnesses saw Anna throw the ice cream wrapper into the wind, so Ulysses sues her for his medical bills. Ultimately, Anna was not proven to be negligent and her insurance company did not have to pay damages to Ulysses. What is the most likely reason for the court's finding?
Anna could not have foreseen that the act of throwing her ice cream wrapper into the wind would have resulted in the bodily injuries to Ulysses.
Coverage C of a Commercial General Liability policy pays for all of the following, EXCEPT: A) George's surgery after he breaks his leg when he trips over some stock left in the aisle while he is working as a stock person at the covered store. B) Anne's x-rays for a broken arm received when she trips on the corner of a rug in the entryway of a covered restaurant. C) Philip's first-aid when he cuts a finger on a shelf while browsing for merchandise in a covered big box store. D) Matt's dental bills when he bites into a bone while eating the "boneless" ribs he ordered at a covered restaurant.
George's surgery after he breaks his leg when he trips over some stock left in the aisle while he is working as a stock person at the covered store.. Remember, employees are not covered by the CGL policy. They would be covered by workers' compensation.
Mike purchased a policy several years ago to cover him for liability. Last year, Mike determined that the limits of his liability policy were not high enough to cover him adequately should a loss occur, so he purchases an excess liability policy to provide more coverage. Mike experiences a loss, and discovers that his underlying liability policy had expired before the loss, but his excess liability policy is still in effect. How will this loss be paid?
It will be denied, due to nonconcurrency.. The claim will be denied, due to nonconcurrency. If the underlying liability policy was expired, the excess policy will not be triggered to pay anything on the claim.
