AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified ans, Exams of Nursing

Download AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified ans and more Exams Nursing in PDF only on Docsity! AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ 1. The insured carries a BOP policy with protective systems such as a sprinkler system. If the system becomes inoperative, the insured must advise the insurance company of the problem within _______ if the system cannot be restored to working order - CORRECT ANSWERS 48 hours Your Answer 2. Tina has two policies (Policy X and Policy Y) that cover the same risk on a pro rata basis. Policy X has a limit of $100,000 and Policy Y has a limit of $25,000. When Tina suffers a loss totaling $75,000, how will the two policies respond? - CORRECT ANSWERS . Policy X will pay $60,000 and Policy Y will pay $15,000 C. D. This provision in Ocean Marine insurance obligates insurers of various interests to share the cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its cargo. - CORRECT ANSWERS General Average Which of the following incidents would a liability insurance policy cover? - CORRECT ANSWERS D. A man slips inside a grocery store and injures himself. Which of the following does NOT apply to commercial property insurance? - CORRECT ANSWERS B. Because of their complexity, commercial policies only offer named-peril coverage. Which of the following perils is excluded from coverage in a National Flood Insurance Program policy? - CORRECT ANSWERS C. Water-main breakage Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to his home. During this time, he has spent $3,000 in hotel expenses, on top of his monthly mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage D - Loss of Use? - CORRECT ANSWERS A. D. $0 Which of the following insurance packages will indemnify a policyholder for a variety of hospital-related expenses such as nursing care, supplies, and rooming charges? - CORRECT ANSWERS A. Hospitalization Expense insurance AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Which of the following statements about Alabama's approach to Workers' Comp insurance is true? - CORRECT ANSWERS A. WC is compulsory, and Alabama has no state WC fund. B. Barry lives in Texas, but wants to obtain an independent adjuster license in Alabama. He can get this license without passing the Alabama adjuster licensing exam if: - CORRECT ANSWERS D. he has passed the Texas exam and received an all-lines adjuster license in Texas. Driving home after a 14-hour shift, Sam falls asleep at the wheel and plows into Sandra's home, causing extensive damage to the East wall and roof. As a result, Sandra and her family must move into a hotel until the repairs are completed. The cost of staying in a hotel is: - CORRECT ANSWERS D. an occurrence When Emma is found guilty of arson for burning down her $175,000 home, her insurance policy is voided and she receives no indemnification for the loss. Emma still had $155,000 left on her mortgage at the time of the fire. Under the mortgagee clause, Emma's mortgage lender can recoup: - CORRECT ANSWERS A. the total amount left on the loan - $155,000. Grace purchased a recliner from XYZ Furniture. After getting it home, she decided to try out the new chair. While leaning back, the chair breaks and Grace injures her neck. She sues XYZ Furniture and is awarded $300,000. The costs for the legal defense come to $45,000. XYZ Furniture's CGL policy has a Products-Completed Operations Aggregate limit of $750,000, with a per occurrence limit of $250,000. How much will XYZ Furniture have to pay out-of-pocket for this claim? - CORRECT ANSWERS D. $50,000 Under which circumstance would it be legal for an insurer to charge one insured more than another insured for the same coverage? - CORRECT ANSWERS C. When the insured is statistically more likely to experience a loss Peter works as a real estate agent and uses the internet extensively for sales leads and advertising. One day, he finds another realtor's ad online and copies it, using his own information as the contact info. This generates a lot of business for Peter, but unfortunately Peter gets a call one day and is informed that he is being sued for AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Honey's Bakery is a local coffee shop run by two sisters. In a rush to leave one afternoon, their new employee forgets to turn off the gas stove. The leaking gas causes an explosion, destroying the kitchen. Which condition in their commercial property policy could help the sisters cover the cost of the damage? - CORRECT ANSWERS A. Control of Property Which of the following best describes a Fraternal Benefit Society? - CORRECT ANSWERS D. A fraternal benefit society is a social organization based around common interests and beliefs. Kevin plays in a brass band using two rare antique Alexander tubas. Since they are no longer produced, the value of the tubas is difficult to determine. Which type of policy would best indemnify Kevin in the event that his tubas were ever damaged, lost, or stolen? - CORRECT ANSWERS A. Agreed value policy B. Which statement BEST describes the "Follow Form" in excess liability coverage? - CORRECT ANSWERS D. Excess liability insurance that "follows" the base insurance policy to the letter Which of the following situations WOULD be covered under a workers' compensation policy? - CORRECT ANSWERS D. Lydia is overtired as she finishes up a 16 hour shift. While performing one last duty, she trips on a rug and gets a concussion. After a loss covered under a dwelling policy, Ordinance or Law coverage pays for: - CORRECT ANSWERS B. increased repair costs due to laws or codes. As a staff adjuster, one of Abigail's most important responsibilities is reporting to the principal. This would include all of the following except: - CORRECT ANSWERS A. C. keeping the claimant up-to-date on the progress and status of the claim. D. A power surge sparks a small electrical fire in an office building. The electrical fire triggers the automatic sprinkler system. The water from the sprinklers soak the carpets and short-out all the computers, causing thousands of dollars in damage. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ What is the proximate cause of the loss? - CORRECT ANSWERS B. The power surge Which statement about the Federal Employees Compensation Act is TRUE? - CORRECT ANSWERS B.A. It protects injured seamen by allowing them to sue for damages and to choose a jury trial. B. It provides benefits in the form of monthly payments and medical coverage to coal miners. C. It protects only interstate railroad workers and their families. For loss settlement purposes, most homeowners policies: - CORRECT ANSWERS C. pay for damages to personal property at actual cash value, and damages to structures at replacement cost. Bill is going to switch employers, and therefore switch healthcare providers. Which federal law ensures that he won't be denied coverage when he switches health plans? - CORRECT ANSWERS D. HIPAA Who sets the critical production dates and assigns commodity market prices for MPCI policies? - CORRECT ANSWERS D. The Risk Management Agency Flora is driving in the rain when she skids off the road and slams into Cam's billboard, totalling her car and causing $2,000 in damage to the billboard. Flora has an auto policy with ABC Insurance. Cam files a third-party claim and ABC Insurance pays him $1,500 for the billboard. Which of the following is TRUE? - CORRECT ANSWERS A. Cam may sue Flora for $500. Several cases of listeria have been traced back to Aaron's crop of soybeans that he recently sold at market. What type of coverage will pay for the claims filed by those sickened by Aaron's soybeans? - CORRECT ANSWERS B. Farm Product Liability Adam has a treacherous drive to work every day. Not only does he have to drive down the pothole-strewn access road to the highway, but he also must traverse several icy bridges on the way to work. Why does the insurance company call these hazards "physical hazards"? - CORRECT ANSWERS B. The roads present a physical condition that increases the chance of a loss. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Which of the following is an Unfair Claims Settlement Practice? - CORRECT ANSWERS D. Insurer offers a settlement for significantly less than is reasonable for the claim, forcing the claimant to sue to recover his losses The AIUA offers coverage for residential homes up to a maximum of __________ for combined dwelling and contents. - CORRECT ANSWERS B. 500,000 . Which of the following statements is TRUE of a claim dispute litigated in a state that follows the doctrine of Contributory Negligence? - CORRECT ANSWERS A. The settlement amount will be reduced by the percentage of the defendant's negligence. B. If the plaintiff if found to be at all negligent, she will receive no settlement. D. The settlement amount will be reduced by the percentage of the plaintiff's negligence. What is the penalty for an adjuster who fails to report a change of address within the required time? - CORRECT ANSWERS A. $50 How much of a limit is included for Credit Card Fraud or Forgery, an additional coverage in a homeowners policy? - CORRECT ANSWERS B. $500 Lucy has insurance on an expensive necklace she likes to wear to work every day. After work, she takes it off and leaves it in her car's cupholder so she can put it back on in the morning on her way to work. Lucy's behavior would be considered a: - CORRECT ANSWERS B. morale hazard. Which of the following is an example of a hazard? - CORRECT ANSWERS A. Sandra's home is in an area of Los Angeles that is often hit by earthquakes. When a car stops short in front of Mike's car, he manages to hit the brakes in time and avoids a collision. To Mike's surprise, the other driver then throws the car into reverse and backs into Mike's car! The other driver's actions are an example of: - CORRECT ANSWERS C. hard fraud. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Indemnification may include all of the following except - CORRECT ANSWERS B. payment for pain and suffering. If an insurer is unwilling to pay what the claimant is asking, the adjuster must: - CORRECT ANSWERS D. negotiate a settlement Which of the following statements about Electronic Data Processing (EDP) insurance coverage is FALSE? - CORRECT ANSWERS A. EDP excludes coverage for all "intangible" electronic data. All of the following are types of Cargo Coverage in Ocean Marine insurance, EXCEPT: - CORRECT ANSWERS C. All Risk Form. Dr. Nelson routinely schedules her patients for lab tests that they don't need so she can charge their insurers for more money. Dr. Nelson is: - CORRECT ANSWERS C. committing health insurance fraud. Farmer Bob would like to sell his recent harvest of lettuce to a local wholesaler. The wholesaler agrees, but only if Bob can prove he has insurance protection in the event that his lettuce causes people to become ill. What type of insurance does Bob need in this situation? - CORRECT ANSWERS A. Farm Product Liability insurance The fee paid by the insured in exchange for an insurance policy is called a: - CORRECT ANSWERS C. premium. SureTrust Insurance was founded and operates in Texas. In Texas, SureTrust is considered: - CORRECT ANSWERS C. a domestic insurer. Which of the following steps would occur LAST in the processing of a claim? - CORRECT ANSWERS C. Negotiate a settlement with the claimant James is walking down the street when Andrea, an uninsured motorist, strikes him with her car. James suffers $12,000 in injuries from the accident. He has personal injury protection of $10,000 from his own automobile insurance policy, which immediately pays him the full amount. By accepting $10,000 from his own AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ insurance company, James has waived the right to sue Andrea for more than _____ for personal injury. - CORRECT ANSWERS C. $2,000 During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the replacement of the tree and bushes that were damaged by the windstorm? - CORRECT ANSWERS D. $0 Which of the following individuals is NOT considered a "custodian" in commercial crime insurance? - CORRECT ANSWERS B. Customer Which of the following is NOT true of Personal Injury Protection? - CORRECT ANSWERS A. B. PIP is usually secondary coverage. C. D. An insurance company might consider any of the following a risk, EXCEPT: - CORRECT ANSWERS A. a high crime neighborhood. B. Which of the following statements best explains why residual market insurance programs exist? - CORRECT ANSWERS A. High-risk consumers need insurance, yet no private insurer wants to issue high-risk policies. D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash into a telephone pole. Which part of his Auto Insurance Policy will help him pay for the repairs to his car? - CORRECT ANSWERS D. Collision Coverage Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his insurance company and $4,000 from the other driver. By receiving a profit from the loss, Mark could be in violation of: - CORRECT ANSWERS D. the principle of indemnity. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ As an adjuster for KLM Insurance, Chrystal has the important role of fiduciary agent. While acting in this capacity, Chrystal's primary responsibility is to: - CORRECT ANSWERS A. . C. protect the financial and property interests of KLM Insurance. D. . Which of the following statements about the principle of estoppel is TRUE? - CORRECT ANSWERS D. Estoppel protects the insured party from an insurer who initially approves coverage, but then later denies coverage after the insured pays for repairs. Jerry is using an expensive video recorder near the family pool when he slips and falls in, destroying the camera. Jerry bought the camera three years ago for $4,000, and it depreciates at $500 per year. A new, similar camera costs $5,000 today. Assuming the loss is covered, if Jerry had a replacement cost policy, how much would Jerry's insurer indemnify Jerry for the destroyed camera? - CORRECT ANSWERS D. $5,000 How much property damage liability coverage must a driver carry in Alabama? - CORRECT ANSWERS C. $25,000 Patricia is a new adjuster whose primary goal is her employer's financial benefit. This goal makes Patricia susceptible to the ethical challenge of: - CORRECT ANSWERS A. C. bias for the insurer. D. Driving home from work one night, Judy is pulled over by a state trooper. When she asks why she was stopped, the trooper informs Judy that her auto insurance has lapsed. This is her first offense. What penalty will Judy face, if any? - CORRECT ANSWERS A. Fine of $500 and suspension of her driver's license for six months B. . D. Gail's restaurant is doing more business than ever, so Gail decides to add more dining space. Three weeks into the project, a hurricane blows through town, AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ If an adjuster needs to find clarification about what actually constitutes a collision, in which section of an insurance policy would she find that information? - CORRECT ANSWERS D. Definitions Insurers often protect themselves from providing insurance to people who are already ill by inserting which type of clause into a health insurance contract? - CORRECT ANSWERS A. Waiting period B. Anna's Rare Books in Birmingham needs to ship three F.Scott Fitzgerald first editions to a customer in Mobile. The combined value of the books is over $400,000. What type of Inland Marine insurance policy should Anna's Rare Books buy to cover this shipment? - CORRECT ANSWERS A trip transit policy When Sally applies for an auto policy, her agent issues her a ________ so that she can benefit from insurance protection while he underwrites the policy. - CORRECT ANSWERS A. binder B. Mark has an ocean marine insurance policy with cargo coverage. The type and value of his cargo varies from one shipment to the next, so rather than having a set value for this coverage, the amount of his settlement is only determined after a covered loss. Mark's cargo coverage is written on a/an ________ basis. - CORRECT ANSWERS C. unvalued Adjusters are required to give claimants: - CORRECT ANSWERS B. their business address and phone number. The "Consent to Settle" clause in the Professional Liability policy is best described as: - CORRECT ANSWERS A. a clause that requires the insurance company to get approval from the insured before settling a claim. Sam is a claimant seeking damages from XYZ Insurance. The XYZ adjuster comes to meet with Sam to hear the circumstances of her injury. The adjuster determines that Sam played an active role in her own injuries, and therefore XYZ Insurance will pay her nothing at all for her injuries. What defense is the adjuster using? - CORRECT ANSWERS B. Contributory negligence AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Jane owns an aquarium supplies store and purchases a Business Owners Policy to protect her assets. Which of the following protections can Jane expect from her standard BOP with no endorsements? - CORRECT ANSWERS A. Named peril coverage The Employee Retirement Income Security Act (ERISA): - CORRECT ANSWERS D. requires that every fiduciary of an employee benefit plan and every person who handles funds or other property of those plans must be bonded. In Alabama, once an insurer has received all pertinent information about a claim, it must accept or deny the claim within a specified period of time. If the insurer needs more time to come to a decision, it must: - CORRECT ANSWERS B. notify the claimant as to why it needs more time. Medical payments coverage in a Farm policy includes all of the following EXCEPT: - CORRECT ANSWERS B. libel or slander. A Discovery Form Commercial Crime policy can apply to losses discovered during the policy period, as well as up to how many days after its expiration date? - CORRECT ANSWERS C. 60 According to the "Definitions" section of a Personal Auto Policy, which of the following would NOT qualify as a "family member"? - CORRECT ANSWERS C. The insured's ex-wife who moved out of the house 4 months ago A short circuit in one of the refrigeration units in the Ice Queen ice cream shop sparked a fire that severely damaged the shop, and it had to shut down for two months while repairs were made. What type of additional coverage would indemnify the Ice Queen for the lost income during these two months? - CORRECT ANSWERS C. Business Interruption Coverage A CGL can provide liability insurance coverage for all of the following persons, EXCEPT: - CORRECT ANSWERS D. customers. When Acme Paper Mill was struck by lightning, the resulting damage included a burst waste pipe, which began leaking chemical-laden waste water into the county AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ aquifer. Acme Paper Mill discovered the leak 2 weeks later and reported it to their insurer immediately. Which additional coverage could help Acme with the expense of cleaning up the contaminated water? - CORRECT ANSWERS A. Pollutant Cleanup and Removal Insurance Which of the following is NOT a risk management technique? - CORRECT ANSWERS C. Risk equality Loggers, roofers, and coal miners would fall into which of the following categories? - CORRECT ANSWERS D. High-risk employees Jackie lives in an area recently devastated by a hurricane and has filed a claim with her insurance company, ABC Insurance. Jerry, an adjuster contracted by ABC Insurance, pulls up to Jackie's house in a truck with the ABC Insurance logo on the side, and wearing a shirt with the ABC Insurance logo on the front. Although Jackie doesn't know that Jerry is contracted by ABC Insurance, she has reason to believe he has the authority to adjust her claim. This is an example of: - CORRECT ANSWERS D. implied authority. Andrew's friend Mario asked for a ride from Detroit to Cleveland, and Andrew decided to take Mario in his plane. Getting out of the plane, Mario trips and falls into the propeller and ends up losing 3 fingers on his right hand. Mario also signed a form agreeing to release Andrew from further liability in exchange for a sum of money. Which of the following is FALSE? - CORRECT ANSWERS A. After Mario has received his monetary sum to indemnify him for the loss of his fingers, he can sue Andrew because of recurring back pain. B. Six Stars Development Company has just purchased several large properties in Las Vegas. As a result of this large purchase, they are a little short on money and decide to save money by not purchasing insurance on their new properties. Six Stars is practicing: - CORRECT ANSWERS A. B. risk retention. C. ABC Renovations has negotiated a deal with Tim: if he is involved in settling a claim needing interior or exterior renovations, Tim will steer business towards ABC AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Diana is insured under a DP-2 policy with the following coverage limits: Coverage A - $150,000, Coverage B - $15,000, and Coverage C - $25,000. She and her fiancé have planned a destination wedding, but their hotel catches fire shortly after their arrival. Smoke from the fire damages all of their belongings, including Diana's $4,000 wedding dress. Diana's loss totals $5,200. When she files a claim with her insurance company, how much can she expect to receive for this loss under her DP- 2 (ignoring any deductible)? - CORRECT ANSWERS A. $2,500 B. Resident Alabama insurance adjusters are required to complete ________ hours of continuing education every _____ years. - CORRECT ANSWERS D. 24, 2 Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection, separate from his home and other property. What term most accurately describes the type of policy Stu would purchase? - CORRECT ANSWERS A. Monoline Policy Which of the following statements about the original Standard Fire Policy is FALSE? - CORRECT ANSWERS A. It was the first multi-line policy, combining both Physical Damage and Liability coverages. What is the standard deductible on an Equipment Breakdown Protection Coverage Form? - CORRECT ANSWERS A. $500 Which of the following would be considered an insurable risk? - CORRECT ANSWERS A. A football stadium Under which law is an insurer required to explain its reasons for denying coverage? - CORRECT ANSWERS A. IIPPA C. According to the Mortgagee Clause, what is NOT one of the rights of the mortgagee? - CORRECT ANSWERS D. The mortgagee may change the coverage amount. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Which Business Auto Policy endorsement covers employees while using their personal cars for business purposes? - CORRECT ANSWERS C. Employee as Additional Insured The state defines an "employee" as: - CORRECT ANSWERS B. Any individual who acts in the service of another party under a contract of hire. Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30 days late. However, Jason is currently more than 30 days late, and has been so five times in the last year, and his insurer has done nothing about it. When Jason gets into an accident and files a claim, which of the following is most likely to happen? - CORRECT ANSWERS C. The insurer will pay the claim because of the implied waiver they have made by not canceling Jason's policy the previous times he was late with his payments. Which of the following is NOT one of the requirements that adjusters must meet in order to handle NFIP claims? - CORRECT ANSWERS A. Attending a NFIP claims presentation every 3 months in order to adjust NFIP claims A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the following items would NOT be covered under Coverage A of the Building and Personal Property Coverage Form in her commercial property policy? - CORRECT ANSWERS A.The lumber storage shed, listed on the dec page Which of the following statements about the negotiation process is FALSE? - CORRECT ANSWERS A. Apologizing for minor mistakes can weaken the adjuster's power in the negotiations. B. Failing to address minor clerical issues can stall the negotiations. Your Answer C. If an adjuster can rectify minor issues with the claimant right away, the negotiation process may quickly take care of itself. D. In negotiations, a seemingly trivial matter can prevent a successful outcome. Which unfair claims settlement practice involves an adjuster making false statements about policy coverage in order to reduce the settlement? - CORRECT ANSWERS A. Misrepresentation D. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Lucille owns her own woodworking business, building custom items such as dressers, wooden trunks, and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her insurer. Which of the following would be covered under Coverage A of the Building and Personal Property Coverage Form in her commercial property policy? - CORRECT ANSWERS C. A bandsaw permanently affixed to the floor Which of the following is an example of a moral hazard? - CORRECT ANSWERS A. Ken lights a candle, sets it right next to the window draperies and leaves the house to go to work. Which of the following best describes how losses are valued under a Commercial Crime policy? - CORRECT ANSWERS A.Money is valued at face value; securities are set at their value on the day the loss is discovered; and other property is valued at the lesser of the cost to repair or replace. What must an insurer do if unable to affirm or deny a claim within a reasonable time frame? - CORRECT ANSWERS A. Notify the claimant of the delay and explain why extra time is needed to come to a decision. Ricky was watching a baseball game at XYZ Stadium, when the railing on which he was leaning gave way and he fell two stories. As a result of his fall, Ricky broke his back and is now paralyzed from the waist down. Ricky sued the owners of XYZ Stadium and was awarded $150,000 to cover his medical bills and $2.5 million in __________ because of the permanent nature of his injury. - CORRECT ANSWERS A. general damages Your Answer B. What requirements must Wholesalers and Distributors meet in order to be eligible for a BOP? - CORRECT ANSWERS C. 25% or less of floor space is available to the general public, and less than 25% of gross income may come from retail sales. Jennifer's PAP has a Comprehensive deductible of $100. Jennifer lets her sister Tina borrow her car, and Tina hits a llama worth $500. The llama's owner files a claim for the loss of his llama. How will that claim be settled? - CORRECT ANSWERS D. $500 paid under Jennifer's liability coverage AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Which of these statements is true? - CORRECT ANSWERS A. All flood insurance policies are settled on an ACV basis. C. During a storm, lightning strikes a tree in Harry's yard and starts a fire that spreads to his shed where he keeps all his equipment for his landscaping business. In addition to the shed, Harry has to purchase all new equipment to stay in business. The cost to replace the equipment would be considered: - CORRECT ANSWERS A. a direct loss. A man wanders onto the runway of a small airport and is injured by a taxiing plane. Which insurance policy would pay for his injuries? - CORRECT ANSWERS A. Airport Liability insurance Your Answer C. States that have special legislation that requires workers' compensation coverage to be provided exclusively by the state's workers' comp program are: - CORRECT ANSWERS A. monopolistic. If an Alabama insurer wants to cancel a HO policy because the policyholder isn't paying premiums, it needs to give the policyholder ____ days advance notice. - CORRECT ANSWERS A. 10 B. Which of the following statements regarding health insurance is TRUE? - CORRECT ANSWERS D. To be covered, members of an HMO must receive treatment for their medical conditions within the established network of healthcare providers. With respect to Inland Marine insurance, a "Block" policy (such as a Jewelers Block policy, or a Furriers Block policy) is an example of: - CORRECT ANSWERS A. a Commercial Floater. D. Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a strong rain, some of the waste washes into a nearby river. Which insurance AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ coverage can protect Scott from any liability caused by the goat waste runoff? - CORRECT ANSWERS C. Farm Pollution Liability If a claimant has a history of similar claims, that could mean: - CORRECT ANSWERS A. the policy should be amended. B. it is important to investigate for fraud. C. the policy coverage should be increased. Your Answer D. it will be necessary to take a safety class. John owes a lot more on his car than it is worth. He figures he would be better off if he burned the car and collected an insurance settlement. He has someone set fire to his garage to destroy the car. John's behavior would be considered a: - CORRECT ANSWERS A.moral hazard. C. Lucy has insurance on an expensive necklace she likes to wear to work every day. After work, she takes it off and leaves it in her car's cupholder so she can put it back on in the morning on her way to work. Lucy's behavior would be considered a: - CORRECT ANSWERS C. morale hazard. After her business suffered damage in a fire, Jane filed a claim with Acme Insurance, which dispatched Bob to adjust it, even though he was not allowed to adjust commercial claims. He investigated Jane's losses and submitted his estimate to Acme Insurance, which issued her a settlement check based on that estimate. Bob had _______ because Acme Insurance accepted his estimate and paid Jane's claim. - CORRECT ANSWERS B. apparent authority Which of the following statements applies to replacement cost valuation? - CORRECT ANSWERS Under replacement cost valuation, insurers may safeguard the principle of indemnity by requiring policyholders to replace insured items before making full reparations. In a BOP, the General Aggregate Limit is: - CORRECT ANSWERS B. twice the per occurrence limit. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Five years ago, when Rosamund was one year old, she had an expensive procedure done to remove what a doctor said was a cancerous tumor behind her knee. Her parents have recently discovered, upon the return of her condition, that the growth was merely a harmless cyst and not a dangerous tumor. Will the Statute of Limitations allow her parents to file a suit against the doctor? - CORRECT ANSWERS C. Yes; suits for Medical Malpractice are allowed until the child's 8th birthday if occurrence happened when child was under 4. John moved out of his house and put it up for sale three months ago. While he was waiting for the house to sell, John's plumbing pipes froze and burst in the icy temperatures, which eventually led to water damaging the cabinetry and hardwood floors. Which of the following statements would most likely be TRUE? - CORRECT ANSWERS A. Freezing is not a covered peril in a HO-3, so this loss would not be covered. B. Although John's house was still covered under an HO-3, the damage would not be covered because he didn't shut off the water supply. C. Although John's house was still covered under an HO-3, the surface water resulting from the damaged pipes is not a covered peril. Your Answer D. Because John's house was still covered under an HO-3, the damage would be covered. Cindy and her insurer cannot reach an agreement for her property claim, and have gone back and forth for weeks without coming within $10,000 of each other. At this point, since both believe they are offering a fair settlement, a third party is needed to help facilitate the negotiation. Both parties still want to retain their ability to "walk-away" if they cannot reach an agreement. What is the next best step for Cindy and her insurer? - CORRECT ANSWERS A. Mediation D. Which of the following would NOT be covered under Errors and Omissions insurance? - CORRECT ANSWERS C. Bodily injury claim Which of the following is a hazard? - CORRECT ANSWERS C. A driver's tendency to text while driving Which of the following statements about MPCI is FALSE? - CORRECT ANSWERS A. MPCI is a form of crop-revenue insurance. B. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ C. Harry's power steering system failed at 55,000 miles. How is the power to bind transferred to an adjuster? - CORRECT ANSWERS D. It is transferred through a written contract. Sue decides to get a valued insurance policy on her antique car. She and her insurance company agree to a value of $85,000. Three years later, the car is destroyed when a tree falls on it in a parking lot. The car depreciates at $2,000 a year, and its replacement cost is $100,000. Ignoring any deductible, how much can Sue expect her insurer to indemnify her? - CORRECT ANSWERS A. 85,000 - ACV C. Victoria makes $950 per week before she suffers an injury at work and is wheel chair bound for 8 months. During those 8 months, she is transferred to the accounting department and makes $325 per week. How much will Victoria's Temporary Partial disability benefits pay per week until she can get back to her regular job? - CORRECT ANSWERS A. $417 In a DP-2 Broad Form, which of the following would be covered under the peril of Theft? - CORRECT ANSWERS A. Broken windows caused by a burglar breaking in. Which of the following is NOT true about Alabama and Fortified properties? - CORRECT ANSWERS C. Insurers must offer Fortified discounts on all properties. Which of the following would be covered under the peril of "theft" in an homeowners policy? - CORRECT ANSWERS A. Theft from an area of the premises rented out to a non-insured B. Losses caused by attempted theft C. Theft from a building under construction Your Answer D. Theft by an insured Strict liability: - CORRECT ANSWERS A. holds a person liable for his actions regardless of how much care he demonstrates. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Under the Longshore and Harbor Workers' Compensation Act, how much would the surviving spouse of a deceased worker receive in benefits? - CORRECT ANSWERS A. 50% of the deceased worker's Average Weekly Wage B. ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One day, an accident at a construction site leads to $150,000 in damage to public property. Assuming the cause of loss is covered under ABC Masonry's liability policy, how will this claim be paid? - CORRECT ANSWERS A. The insurer pays $100,000; the aggregate limit is now $200,000; and ABC Masonry must pay $50,000. Which settlement option is most often used when a claimant misses work because of bodily injury, but a settlement has not yet been reached? - CORRECT ANSWERS A. Advance payment settlement B. The HIPAA was enacted by the US Congress in _________. - CORRECT ANSWERS A.1996 D. A typical workers' compensation policy combines two basic forms of coverage. They are: - CORRECT ANSWERS A. Workers' Compensation and Employers Liability When the dollar amount difference between an adjuster and a claimant is very large, the adjuster should: - CORRECT ANSWERS D. move to dispute resolution. - maybe A dwelling policy would NOT be appropriate for: - CORRECT ANSWERS A a duplex owned by an individual. D. a motorhome owned by an individual. AL Practice Exam - Adjusting Exam with 221questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Martin regularly travels much of the state for work, so his employer has given him a company car. Which endorsement to Martin's PAP would provide him with liability coverage for the company car? - CORRECT ANSWERS A. Extended Non-Owner Helen's business is growing rapidly, so she decided to add an annex onto her office and hire another worker. While under construction, a storm blows down most of the annex structure, forcing Helen to restart from scratch. Her commercial policy provides insurance coverage equal to 75% of the property value, despite the fact that her policy requires 80% coverage to be fully insured. Which coverage extension could help Helen rebuild at replacement cost? - CORRECT ANSWERS A. None - Extensions are only available if the policyholder maintains the minimum level of insurance of 80% to value C.