Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 202, Exams of Nursing

Download Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 202 and more Exams Nursing in PDF only on Docsity! Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Define: Claimant - CORRECT ANSWERS A person or entity that requests indemnification for losses under the terms of an insurance policy Define: Adjuster - CORRECT ANSWERS Person who investigates, evaluates, and negotiates claims arising under insurance contracts Define: Adjusting - CORRECT ANSWERS The process of comparing a claimant's losses to the promises made in an insurance policy Define: Staff adjuster - CORRECT ANSWERS Salaried employee of an adjuster Define: Independent adjuster - CORRECT ANSWERS Self-employed, contracts with insurers or bureaus, paid by schedule, or time + expense Define: Public adjuster - CORRECT ANSWERS Hired by the insured, usually paid commission Define: Emergency adjuster - CORRECT ANSWERS Temporarily licensed to service the many claims arising from catastrophes After Jerry pulled the fire alarm, the indoor sprinkler system came on and flooded the offices at Elliot Designs, causing thousands of dollars in damage. Elliot Designs filed a claim with KLM Insurance, who dispatched Chrystal to investigate and process the claim. Who is the claimant in this scenario? A. KLM Insurance B. Jerry C. Chrystal D. Elliot Designs - CORRECT ANSWERS D. Elliot Designs After a storm demolished Greg's house, his insurance company sent an adjuster out to adjust his claim. After investigating Greg's claim, the adjuster offered him a settlement which Greg felt was too low. Not knowing much about property Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ insurance, Greg wans a second opinion to make sure he is receiving what he deserves. Who might Greg hire to help him with negotiating a fair settlement? A. An independent adjuster B. An insurance adjuster C. A staff adjuster D. A public adjuster - CORRECT ANSWERS D. A public adjuster A severe storm rages through Oklahoma City, with tornados causing multiple square miles worth of damage. All the licensed adjusters in the area are already occupied or deployed to the scene. Who can the insurance commissioner look to for temporary help resolving the rest of the claims from this storm? A. Staff adjusters B. Emergency adjusters C. Independent adjusters D. Public adjusters - CORRECT ANSWERS B. Emergency adjusters What is the title of the insurance professional who processes claims for compensation? A. Insurance adjuster B. Insurance salesman C. Insurance broker D. Insurance agent - CORRECT ANSWERS A. Insurance adjuster Jane is a salaried employee of XYZ Insurance. Working out of a regional office, Jane is sent to deal with some of the most difficult claims in her area. What kind of adjuster is Jane? A. Emergency adjuster B. Public adjuster Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ C. Interim report D. Full report - CORRECT ANSWERS C. Interim report An adjuster acts as an agent for the insurer. As such, it is essential that the adjuster understand: A. Her duty to check in daily with the insurance company B. That her words or actions may bind the insurance company C. Her duty to profit from every claim investigation D. That she must always offer a settlement favorable to the claimant - CORRECT ANSWERS B. That her words or actions may bind the insurance company Which of the following does not apply to the adjuster's responsibility of reporting to the principal? A. The reports should include any pertinent information about investigations the adjuster has performed B. The reports should be frequent and detailed C. The reports should include advice on how to get out of paying covered claims D. The reports should include information that would benefit the principal - CORRECT ANSWERS C. The reports should include advice on how to get out of paying covered claims Julie works as an insurance adjuster for XYZ Insurance. While adjusting a claim, she determines that the claimant is covered by his insurance contract and issues him a settlement check for $5,000. The insured cashes the check and performs the repairs. Two months later, the insurer reviews the file and realizes that the claimant's damages were NOT covered by the policy. The insurer demands the settlement money back. Which of the following best explains why the claimant will most likely not have to return the money? A. Subrogation does not allow the insurer to recover payment B. The settlement payment was a warranty Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ C. Julie had the power to bind the insurer to her decision to pay the claim D. Julie issued the settlement based on guarantees provided by the claimant - CORRECT ANSWERS C. Julie had the power to bind the insurer to her decision to pay the claim Which item would NOT belong in an adjuster's initial report on a claim? A. The date that the adjuster first contacts the claimant B. A list of all known circumstances surrounding the claim C. The final settlement amount D. A detailed list of the damages being claimed - CORRECT ANSWERS C. The final settlement amount Which of these is NOT an essential detail for an adjuster to include in a loss report? A. The policy limit B. The policy deductible C. The policy number D. The policy premium - CORRECT ANSWERS D. The policy premium What are the 3 types of authority? - CORRECT ANSWERS Express authority implied authority apparent authority Define: Express authority - CORRECT ANSWERS Given in writing within the agent's contract Define: Implied authority - CORRECT ANSWERS Reasonable for public to believe, not expressly granted in writing Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Define: Apparent authority - CORRECT ANSWERS Granted when the insurer does not stop the agent from acting in a certain way, even when those actions do not adhere to the authority granted in the contract William is wearing an ABC Insurance jacket and has an ABC Insurance sign over his rented office. The walk-in customer could reasonably believe that he has the authority to write an insurance contract because of his: A. Apparent authority B. Express authority C. Agent authority D. Implied authority - CORRECT ANSWERS D. Implied authority 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. A. Agency authority B. Apparent authority C. Express authority D. Expert authority - CORRECT ANSWERS B. Apparent authority _____ authority is what the public reasonably believes the agent has, based on the agent's representations. A. Contract B. Apparent C. Express D. Impied - CORRECT ANSWERS D. Implied Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Representing the insurer B. Negotiating settlements C. Selling insurance policies D. Servicing policies - CORRECT ANSWERS B. Negotiating settlements This agent works for only one insurer, and supervises and trains other agents. A. General agent B. Captive agent C. Exclusive agent D. Direct writer - CORRECT ANSWERS A. General agent Tom is looking for a job in the insurance industry. He wants to work for only one insurance company, selling policies on commission basis. Which type of insurance agent position best fits what Tom is looking for? A. General agent B. Direct writer C. Captive agent D. Independent agent - CORRECT ANSWERS C. Captive agent Which of the following statements is FALSE? A. An agent is authorized to act as a representative of another party B. An agent always has a fiduciary duty to defend the claimant C. An agent may represent more than one party D. An agent's actions are construed as those of the party she represents - CORRECT ANSWERS B. An agent always has a fiduciary duty to defend the claimant Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Susan calls herself an insurance broker. She sells multiple lines of insurance from a variety of insurance companies. What type of agent is Susan? A. Direct writer B. General agent C. Captive agent D. Independent sales agent - CORRECT ANSWERS D. Independent sales agent Sam works on commission only, selling only insurance products from XYZ Insurance. What type of agent is Sam? A. Exclusive agent B. Independent sales agent C. Direct writer D. General agent - CORRECT ANSWERS A. Exclusive agent This agent works for only one insurer and is paid commission. A. Exclusive agent B. Independent agent C. Independent adjuster D. General agent - CORRECT ANSWERS A. Exclusive agent Roger is an insurance adjuster. He has just arrived at the claimant's home with an engineer in order to determine the exact repair costs of repairing the home's foundation that was damaged in an earthquake. Which step of the claim process is Roger currently engaged in? A. Reporting B. Negotiation C. Investigation Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Claims management - CORRECT ANSWERS C. Investigation Of the following adjuster duties, which would be first? A. Prepare adjustment reports B. Open lines of communication C. Assess the damages D. Investigate liability - CORRECT ANSWERS B. Open lines of communication Why might an insurer send a claimant a Reservation of Rights letter? A. When the insurer has decided not to cover the loss B. When the insurer needs more information before making a final decision C. To let the claimant know that the insurer has received all necessary paperwork D. To let the claimant know that there is a coverage dispute - CORRECT ANSWERS D. To let the claimant know that there is a coverage dispute An insurance claim is essentially: A. A formal request to repair the damage B. A formal explanation of insurance coverage C. A formal request to settle the damage D. A formal offer to repair the damage - CORRECT ANSWERS C. A formal request to settle the damage Ben is an adjuster with XYZ Insurance and is currently working on a claim. He has already called the claimant and has just finished preparing all the paperwork needed to move forward with the claim. What is the next step for Ben? A. Open a line of communication with the claimant Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ B. Must have a chance to correct anything that is incorrect C. Is taken more seriously D. Must do so under oath - CORRECT ANSWERS B. Must have a chance to correct anything that is incorrect For a bodily injury liability claim, the adjuster must determine all of the following, EXCEPT: A. The severity of the injury B. The presence of any pre-existing conditions C. The amount of punitive damages requested D. The type of injury - CORRECT ANSWERS C. The amount of punitive damages requested What is the first step of the evaluation process of a claim? A. Investigating the claim B. Determining the cause of the loss C. Determining time and cost of repairs D. Acknowledging the claim - CORRECT ANSWERS C. Determining time and cost of repairs Jim is currently working on a property damage claim, gathering evidence, reviewing police reports, and interviewing witnesses. In which stage of the claim adjusting process is Jim currently working? A. Evaluation B. Investigation C. Resolution D. Negotiation - CORRECT ANSWERS B. Investigation Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Jim is currently working on a liability claim, and has completed his investigation. He presents his findings to the claimant, who disagrees with the settlement offer. Into which stage of the adjusting process is Jim about to enter? A. Claim evaluation B. Determining liability C. Negotiation and resolution D. Claim reporting - CORRECT ANSWERS C. Negotiation and resolution Jim is working a claim. Currently, he is applying all financial provisions of the policy, including the policy limits, co-insurance, valuation, and deductibles. In which stage of the claims process is Jim currently working? A. Negotiation B. Evaluation C. Investigation D. Reporting - CORRECT ANSWERS B. Evaluation How many options are there for responding to a claim? - CORRECT ANSWERS Four What are the four options for responding to a claim? - CORRECT ANSWERS Accept the request and pay the claim Reject the request and deny the claim Negotiate a settlement Dispute the resolution Rejecting the request and denying the claim requires what? - CORRECT ANSWERS A written explanation When should you negotiate a settlement? - CORRECT ANSWERS When the claimant's offer is within a reasonable range of the insurer's Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ How many options are there to dispute a resolution? - CORRECT ANSWERS Five What are the five options to dispute a resolution? - CORRECT ANSWERS Arbitration Mediation Appraisal Declaratory Judgement Litigation Which dispute resolution should be a last resort? - CORRECT ANSWERS Litigation From a legal standpoint, when a policyholder files a claim against her insurance policy, she is essentially submitting a / an: A. Indemnification B. Formal request to settle the damage C. Order for damage repairs D. Bill for damage repairs - CORRECT ANSWERS B. Formal request to settle the damage Which of the following statement about arbitration is TRUE? A. An arbitrator plays no role in the outcome of negotiations B. An arbitrator costs significantly more than a civil trial C. An arbitrator tries to get both sides to come together in agreement D. An arbitrator makes a legally binding decision upon the evidence - CORRECT ANSWERS D. An arbitrator makes a legally binding decision upon the evidence Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Define: No release form - CORRECT ANSWERS Insurer cuts a check for the amount of the damages, but the claimant is not required to sign a release form Define: Structured settlement - CORRECT ANSWERS Breaks up the indemnity into a series of smaller payment A "scheduled payment release" is a settlement option most commonly used: A. In workers' compensation claims B. In claims that seek damages for property damage C. In flood claims D. When an insurer cannot pay all its claimants and still remain solvent - CORRECT ANSWERS A. In workers' compensation claims Ben's automobile was struck by another driver, Roxanne. Ben files a claim with Roxanne's insurer, who accepts the claim. Ben signs a release form and is issued a check that covers all damage to his car. Which settlement type would this fall under? A. No release settlement B. Partial release settlement C. Full release settlement D. Advanced payment - CORRECT ANSWERS C. Full release settlement Which of the following is NOT a characteristic of a full release settlement? A. The claimant signs a full release form B. The insurer pays an immediate, single lump sum to the claimant C. The insurer pays for certain future "incidentals" related to the claim D. All damages are paid at once - CORRECT ANSWERS C. The insurer pays for certain future "incidentals" related to the claim Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Shirley was severely injured in a car accident and now cannot work as a result. Even though she filed her claim promptly, her insurer is taking a long time to decide on a final settlement amount. What kind of settlement option would be most convenient for both Shirley and the insurer? A. No release settlement B. Advanced payment settlement C. Full release settlement D. Scheduled payment release - CORRECT ANSWERS B. Advanced payment settlement Which of the following is true about the partial release settlement option? A. It's also called a "rehabilitation settlement" B. Once the property damage settlement is made, the claim is closed C. It's also called an "open-ended release" D. It's also called "payment of property damage; bodily injury pending" - CORRECT ANSWERS D. It's also called "payment of property damage; bodily injury pending" Rodney has been unable to go back to work since he was struck by a vehicle while crossing the street. He is still going through treatment for his injuries and his medical bills are starting to pile up. The insurer has issued him two partial payments to aid his financial situation until the settlement is reached. Once the settlement is final, the amount of these payments will be subtracted from Rodney' final check. Which settlement option applies to Rodney's situation? A. Full release B. Partial release C. Scheduled release D. Advanced payment - CORRECT ANSWERS D. Advanced payment Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ While at work, Barry suffered a spinal cord injury in a forklift accident. His employer's insurer settled the claim and paid all of Barry's initial medical bills, but it also agreed to continue to pay for his weekly visits to the rehabilitation therapist. Which settlement option did Barry receive? A. Partial release B. Full release C. Advanced payment D. Scheduled payment release - CORRECT ANSWERS D. Scheduled payment release In a declaratory judgment action: A. The court's decision about the legal rights of the parties is not binding B. The court decides the legal rights of both parties C. The court makes a judgment about the insurer's unfair settlement practices D. The court resolves the case - CORRECT ANSWERS B. The court decides the legal rights of both parties Jessica is trying to earn the trust of a claimant with whom she is negotiating a settlement. Which of the following actions will probably NOT help her to earn his trust? A. Jessica makes sure that she is dressed professionally B. Jessica goes into the negotiation with a "win at all costs" attitude C. Jessica makes eye contact with the claimant, smiles, and shakes his hand D. Jessica refrains from commenting on the way the claimant is dressed, and keeps her opinions about his appearance to herself - CORRECT ANSWERS B. Jessica goes into the negotiation with a "win at all costs" attitude Jim is beginning negotiations with Sally and notices that her demeanor seems standoffish and defensive - almost angry. While reviewing his estimate, Jim notices a small clerical error which, once corrected, will increase Sally's indemnification by Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Demonstration Pleasant Surprise Diversion Silence Back-up Offer Flexibility Sean is negotiating a claim with a claimant and wants to show his flexibility. By making minor changes in the acceptance offer, he shows there is some "wiggle room." The two reach an agreement, and Sean heads back to the office, only to find that he has drastically over-extended the offer. Where did Sean go wrong in the negotiating process? A. Sean should have called the insurer after reaching an agreement with the claimant, making sure he didn't exceed the maximum amount the insurer was willing to pay B. Sean needed to make sure he received something in return - in favor of the insurer C. Sean failed to know his limits and did not use "stop marks" when modifying the acceptance offer D. Sean violated the first rule of negotiations: never give in - CORRECT ANSWERS C. Sean failed to know his limits and did not use "stop marks" when modifying the acceptance offer Barbara is negotiating a property claim, but things are not going well - both sides are beginning to become unsettled and frustrated. Barbara offers to take a second look at the policy and suggests that they reconvene in a couple days to finish working out the negotiations. What negotiation technique has Barbara just employed? A. Demonstration B. Flexibility C. Diversion D. Silence - CORRECT ANSWERS C. Diversion Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Which of the following activities would most likely not be a useful negotiation technique? A. Producing a backup offer if the first offer is completely rejected by the claimant B. Conceding to a claimant's point that is an obvious ploy C. Making minor changes to the offer that still fall within the insurer's parameters D. Lengthening your silence to an uncomfortable point - CORRECT ANSWERS B. Conceding to a claimant's point that is an obvious ploy Asking questions can be a useful negotiation technique. Which of the following would NOT help the adjuster during negotiations? A. Sincere questions to better understand any new facts presented by the claimant B. Questioning the claimant's ethics when the claimant is apparently lying C. Clarifying questions to attempt to understand the claimant's perspective D. Detailed questions to discover the claimant's ultimate goal - CORRECT ANSWERS B. Questioning the claimant's ethics when the claimant is apparently lying Which of the following is NOT one of the advantages of being flexible during the negotiation process? A. Flexibility shows the claimant that the adjuster is willing to change his position, within reason B. Flexibility builds trust between the adjuster and the claimant C. Flexibility can speed up the negotiation process D. Flexibility shows the claimant that the adjuster has more authority than the insurer - CORRECT ANSWERS D. Flexibility shows the claimant that the adjuster has more authority than the insurer Pointing out a piece of evidence that works in a claimant's favor, and then conceding that point to a claimant is a negotiating technique known as a / an: Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Pleasant surprise B. Demonstration C. Diversion D. Agreement - CORRECT ANSWERS A. Pleasant surprise Graham is negotiating a claim, but the claimant is beginning to become frustrated and uncomfortable. Graham decides to tell a story with a particularly funny ending to put the claimant at ease. Which negotiating technique is Graham employing? A. Humor B. Diversion C. Flexibility D. Pleasant surprise - CORRECT ANSWERS A. Humor Bob's home was severely damages by a thunderstorm and he claims it will cost $74,000 to repair. His insurer has investigated the claim, found the repairs could be done for $49,000, and has offered Bob this amount of indemnification. Taking the case to court could be risky for the insurer because: A. It places the outcome of a claim in the hands of an unpredictable jury, who may have prejudices against insurers B. The insurer must prove its case beyond a reasonable doubt C. Bob doesn't have an adjuster license and therefore will be unable to adequately argue his case D. The insurer must prove contributory negligence on behalf of the claimant - CORRECT ANSWERS A. It places the outcome of a claim in the hands of an unpredictable jury, who may have prejudices against insurers Which of the following is an example of appropriate language for an adjuster's claim file? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Comparative negligence Define: Contributory negligence - CORRECT ANSWERS No settlement (only allowed in some states) Define: Comparative negligence - CORRECT ANSWERS Partial settlement Frank's home burned to the ground under suspicious circumstances. Upon further investigation of the claim, the adjuster finds an accelerated burn pattern near the electrical box in the basement, consistent with the use of an accelerant, such as gas or kerosene. Frank is charged by the state with arson, and thus will be tried in what kind of trial? A. Criminal trial B. Contributory negligence trial C. Civil trial D. Comparative negligence trial - CORRECT ANSWERS A. Criminal trial Claim disputes are usually settled in: A. Civil trials B. Show trials C. Bench trials D. Criminal trials - CORRECT ANSWERS A. Civil trials In a civil trial, the jury makes their decision based upon which of the following? A. Proof beyond a reasonable doubt B. Recommendation of the presiding judge C. Conference decision Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Preponderance of the evidence - CORRECT ANSWERS D. Preponderance of the evidence Jim and his insurer are in court over a claim dispute. Jim, the plaintiff, has accused his insurer of not indemnifying him enough for his loss. Jim needs to convince the jury of his case through a preponderance of evidence. In which type of trial are Jim and his insurer involved? A. Comparative negligence trial B. Contributory negligence trial C. Criminal trial D. Civil trial - CORRECT ANSWERS D. Civil trial Most states' courts today follow the doctrine of: A. Conductive negligence B. Contributory negligence C. Strict negligence D. Comparative negligence - CORRECT ANSWERS D. Comparative negligence Which of the following is NOT a reason why litigation is considered a "last resort" for the insurer? A. The insurer's reputation may be at stake B. Courts and laws favor litigation to negotiation C. It is unpredictable because control is relinquished to a potentially prejudice jury D. It is an expensive process - CORRECT ANSWERS B. Courts and laws favor litigation to negotiation If a claim dispute goes to trial, the adjuster is usually a: Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Witness B. Defendant C. Plaintiff D. Juror - CORRECT ANSWERS A. Witness Which of the following statements is TRUE of a claim dispute litigated in a state that follows the doctrine of Contributory Negligence? A. The settlement amount will be reduced by the percentage of the defendant's negligence B. If the defendant is found to be at all negligent, she will receive no settlement C. If the plaintiff is 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 - CORRECT ANSWERS C. If the plaintiff is found to be at all negligent, she will receive no settlement An insurer can rescind a policy if the policyholder does nay of the following, EXCEPT: A. Lies or conceals information in the application B. Fails to pay the premium C. Makes a mistake in the application that significantly affects the insurer D. Makes a fraudulent claim to get benefits - CORRECT ANSWERS B. Fails to pay the premium 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? A. Policy X will pay $50,000 and Policy Y will pay $25,000 B. Policy X will pay $37,500 and Policy Y will pay $25,000 C. Policy X will pay $75,000 and Policy Y will pay nothing Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ According to the inspection and surveys provision: A. The insured must respond to insurer surveys, which are used to gather information about the insured's payroll or annual sales B. The insured must allow the insurer to inspect the insured premises at any time C. The insurer will conduct a survey at the end of each policy period to determine its actual exposure over the course of the past policy period D. The insured must submit regular self-inspection reports to the insurer, which are used to determine insurability and premiums - CORRECT ANSWERS B. The insured must allow the insurer to inspect the insured premises at any time Which of the following is NOT one of the typical duties of the insured after a loss? A. Sign a sworn proof of loss B. Provide a loss estimate from an appraiser C. Cooperate with the adjuster's investigation D. Protect the property from further losses - CORRECT ANSWERS B. Provide a loss estimate from an appraiser In an insurance policy, the abandonment clause: A. States that if the property is abandoned, it becomes uninsurable B. States that the insured is prohibited from forcing the insurer to take possession of damaged property C. States that the insured may abandon the policy at any time D. Ensures that the insurer has the right to take possession of any abandoned property - CORRECT ANSWERS B. States that the insured is prohibited from forcing the insurer to take possession of damaged property In insurance terms, which of the following statements about salvage is FALSE? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. The insured may compel the insurer to take the damaged property to keep the salvage value from being deducted from the claim settlement B. The insurer may choose how to handle salvage, depending on the policy C. The insure may take ownership of damaged property after paying the claimant for a total loss D. The insurer may deduct the salvage from the amount paid to the claimant for the loss - CORRECT ANSWERS A. The insured may compel the insurer to take the damaged property to keep the salvage value from being deducted from the claim settlement Which of the following is TRUE of the vacancy condition in a typical insurance policy? A. It states that the insurance policy will terminate if the insured building is vacated B. It states that a dwelling vacant for more than 15 days is not insurable C. In commercial policies, it states that a building is vacant if more than 31% of the building is unoccupied D. It establishes the parameters for considering a building vacant for the purpose of coverage - CORRECT ANSWERS D. It establishes the parameters for considering a building vacant for the purpose of coverage Ted gets into an argument with his neighbor over parking arrangements. In a fit of anger, Ted goes over to his neighbor's home and scratches up her car with a key, causing $2,000 in damages. The next day, Ted realizes his poor behavior and files a claim with his insurer for his liability in the damages to his neighbor's car. Why might Ted's insurer deny his claim? A. Ted's vandalism was intentional, and therefore excluded under his policy B. Ted's neighbor will have to file a claim with her own insurer C. Insurance policies do not cover vandalism D. Ted's neighbor was partially responsible for the damage, and thus will pay a pro rata portion of the loss - CORRECT ANSWERS A. Ted's vandalism was intentional, and therefore excluded under his policy Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Define: Cancellation and non-renewal policy provisions - CORRECT ANSWERS Insured may cancel at any time, but insurer is much more restricted Define: Liberalization policy provision - CORRECT ANSWERS Insureds benefits automatically, at no extra cost, when an insurer expands coverage Define: Concealment, misrepresentation, and fraud policy provisions - CORRECT ANSWERS Can invalidate coverage and lead to policy rescission Define: Assignment policy provison - CORRECT ANSWERS Insureds cannot transfer policy coverage to someone else without insurer's approval Define: Apportionment policy provision - CORRECT ANSWERS Defines how policy will respond when more than one policy covers the same risk Define: Restoration of limits policy provision - CORRECT ANSWERS Defines how limits are affected after a loss Define: Salvage - CORRECT ANSWERS Value remaining after a loss Insureds are prohibited from abandoning _____ to the insurer. - CORRECT ANSWERS Property _____ must fulfill several duties after a loss. - CORRECT ANSWERS Insureds Intentional acts, wear and tear, war, and nuclear events are common _____. - CORRECT ANSWERS Exclusions Define: Recoverable depreciation - CORRECT ANSWERS Amount an insured can be paid after making repairs to damaged property These two clauses protect lender's interest: - CORRECT ANSWERS Loss Payee Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ C. An insured has the right to cancel an insurance policy at any time D. When an insurer pays a total loss settlement, policy coverage may terminate and any unearned premiums will be refunded to the insured - CORRECT ANSWERS A. Coverage applies to each insured separately, as if no other insured existed Nina is deep in debt and files bankruptcy after crashing her car into Ben's luxury sedan and can't afford to pay the portion of the damage that exceeds her policy limit. Which of the following statements is true? A. The apportionment clause allows Nina's insurer to share the loss with Ben's insurer, splitting it equally between the two policies B. Nina's insurer is relieved of its duty to pay the claim because she filed for bankruptcy and can write off all of her debts C. The assignment clause allows Nina's insurer to assign the claim to Ben's insurer because of Nina's bankruptcy D. Nina's insurer will still pay the claim, up to the limit of her liability coverage - CORRECT ANSWERS D. Nina's insurer will still pay the claim, up to the limit of her liability coverage The declarations page will always provide a list of the coverages provided within the policy. What will be listed next to each type of coverage on the declarations page? A. The expiration date of the coverage B. The name of the policyholder C. The policyholder's obligations regarding that coverage D. The insurer's limit of liability for that coverage - CORRECT ANSWERS D. The insurer's limit of liability for that coverage Stu has a collection or 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? A. Actual cash value policy B. Valuable papers policy Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ C. Monoline policy D. Standard fire policy - CORRECT ANSWERS C. Monoline policy Stan built a porch for his home three years ago at a cost of $10,000. The value of the porch has depreciated by $6,000, and it would cost $12,000 to replace it today. After Stan's porch burnt down during a BBQ today, how much would a standard fire policy indemnify Stan for his porch? A. $10,000 B. $12,000 C. $6,000 D. $4,000 - CORRECT ANSWERS C. $6,000 There are several terms that are often interchangeable with "endorsements." Which of the following is NOT one of these terms? A. Binders B. Addendums C. Riders D. Attachments - CORRECT ANSWERS A. Binders Under the requirements in case loss occurs provision, the insurer typically requires that the claimant make a claim inventory form: A. At the end of the settlement process B. When he files a property claim C. Only in the case of total loss D. IN a commercial policy - CORRECT ANSWERS B. When he files a property claim Which of the following statements does NOT apply to the standard fire policy? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. It automatically covers wind and vandalism B. It is a named peril policy C. It pays actual cash value D. It is the basis for all homeowners policies - CORRECT ANSWERS A. It automatically covers wind and vandalism Which of the following statements about the standard fire policy is TRUE? A. It is an open peril policy B. It is the basis of all property insurance policies C. It offers coverage against wind and hail damage D. It offers replacement cost valuations - CORRECT ANSWERS B. It is the basis of all property insurance policies The standard fire policy divides a basic property insurance policy into _____ parts. A. Four B. Two C. Three D. Five - CORRECT ANSWERS A. Four Which of the following statements does NOT apply to the standard fire policy? A. It automatically covers wind and vandalism B. It is the basis for all homeowners policies C. It is a named peril policy D. It pays actual cash value - CORRECT ANSWERS A. It automatically covers wind and vandalism Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Peggy is visiting her friend Laura at Laura's home. During the visit, Peggy trips over Laura's dog and takes a nasty fall down the stairs. Which homeowners coverage would pay for Peggy's injuries? A. Peggy's liability coverage B. Dwelling coverage C. Personal property coverage D. Laura's liability coverage - CORRECT ANSWERS D. Laura's liability coverage A homeowner's policy is called a "package" policy because: A. it bundles property and liability insurance into one policy. B. it bundles dwelling and auto insurance into one policy. C. another name for a "dwelling" is a "package." D. it bundles residential and commercial insurance into one policy. - CORRECT ANSWERS A. it bundles property and liability insurance into one policy. Theft is a covered peril under a homeowner's policy, but not all theft losses are covered. Which of the following theft losses IS covered? A. Theft of the insured's property while the insured is on vacation B. Theft of the insured's tenant's property C. Theft from the insured's under-construction dwelling D. Theft by the insured's husband who lives with the insured - CORRECT ANSWERS A. Theft of the insured's property while the insured is on vacation Anton is purchasing a homeowners policy for his house in the woods. He wants to make sure he is covered for damage done to his home by wild animals. Which of the following would be his LEAST expensive option? A. HO-8 Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ B. HO-2 C. HO-3 D. HO-5 - CORRECT ANSWERS C. HO-3 Which of the following ISO forms is most commonly used? A. Homeowners 6 B. Homeowners 3 C. Homeowners 4 D. Homeowners 5 - CORRECT ANSWERS B. Homeowners 3 The Homeowners 6 policy would likely NOT cover which of the following? A. Furniture inside the unit B. Light fixtures on the building's exterior C. Paint on the walls of the insured's unit D. Carpet inside the insured's the unit - CORRECT ANSWERS B. Light fixtures on the building's exterior Abby owns a condo and has a $200,000 HO-6 policy. One afternoon, she finds little bugs running all over her kitchen. After calling a pest control service, she learns that there is a termite infestation in the building. How much of the structural damage caused by the termites will be covered under the policy? A. Up to $20,000 B. Up to $80,000 C. None D. Up to $160,000 - CORRECT ANSWERS C. None Which of the following perils is NOT covered under the HO-2 Broad Form? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Fire B. Theft C. Windstorm D. Earthquake - CORRECT ANSWERS D. Earthquake Which homeowners policy form is intended for renters? A. Homeowners 8 B. Homeowners 3 C. Homeowners 4 D. Homeowners 5 - CORRECT ANSWERS C. Homeowners 4 Which homeowners policy is the most basic, only providing coverage on a named- peril basis and only paying actual cash value for all covered damages? A. HO-2 B. HO-5 C. HO-8 D. HO-4 - CORRECT ANSWERS C. HO-8 Define: Personal lines - CORRECT ANSWERS Insurance an individual takes out on a risk owned for personal reasons (a home, a minivan, land, etc.) Define: Homeowners insurance - CORRECT ANSWERS Insurance for property inhabited by the insured, includes house, apartment, and condos What is the HO-2 form? - CORRECT ANSWERS Broad form Named peril Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. HO-3 Special Form - CORRECT ANSWERS A. HO-4 Contents Broad Form Why is it important to define terms in an insurance policy? A. Because any ambiguity in the language of the policy means that the insured must file a lawsuit when a claim arises. B. Because any ambiguity in the language of the policy will favor the insurer. C. Because any ambiguity in the language of the policy will void the contract. D. Because any ambiguity in the language of the policy will favor the insured. - CORRECT ANSWERS D. Because any ambiguity in the language of the policy will favor the insured. Elizabeth has a laptop computer that she takes everywhere she goes. While she is at the grocery store, her car is broken into and the laptop is stolen. Assuming it is valued at $2,000, how much can Elizabeth expect to be indemnified by her insurer (ignoring any deductible)? A. $500 B. $1,500 C. $2,000 D. $1,000 - CORRECT ANSWERS B. $1,500 Coverage C - Personal Property can apply to losses that occur: A. anywhere in the world. B. outside of the insured's dwelling only. C. in the U.S. or Canada only. D. in the insured's dwelling only. - CORRECT ANSWERS A. anywhere in the world. Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Mr. Dewitt's homeowners policy has a $200,000 limit of liability for Coverage A - Dwelling. How much coverage will his policy automatically provide for Other Structures (assuming he has a typical policy with no endorsements)? A. $100,000 B. $50,000 C. $10,000 D. $20,000 - CORRECT ANSWERS D. $20,000 Which of the following personal property items does NOT have a special limit of liability in the Homeowners forms? A. Firearms B. Jewelry C. Cash D. Books - CORRECT ANSWERS D. Books To make some extra money, Denise turns her storage shed into a small dwelling and rents it out to a tenant. Shortly after the tenant moves in, a drunk driver crashes into the storage shed apartment, demolishing it. Would Coverage B - Other Structures of Denise's homeowners policy cover the repairs to the shed-apartment? Why or why not? A. No, because it was wired to the home and therefore an attached structure. B. Yes, up to 10% of Denise's homeowner's policy. C. Yes, because Coverage B insures unattached structures. D. No, because the shed-apartment was wholly rented out. - CORRECT ANSWERS D. No, because the shed-apartment was wholly rented out. Which of the following items would NOT be covered against loss or damage under Coverage C - Personal Property of a homeowners insurance policy? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. A set of appliances stored in the main dwelling B. A camera taken on vacation by the insured C. A television that belongs to the insured's tenant staying in the guest house D. A set of golf clubs stored in a detached structure - CORRECT ANSWERS C. A television that belongs to the insured's tenant staying in the guest house An out-of-control motorist careens off the road and smashes through Sally's front yard and into her attached garage, taking out several lamp posts, her mailbox, and a small gazebo along the way. Under Sally's homeowners policy, which items might be covered under Coverage B - Other Structures? A. The garage only B. The lamp posts, mailbox, and gazebo C. The lamp posts, mailbox, gazebo and garage D. The gazebo and garage - CORRECT ANSWERS B. The lamp posts, mailbox, and gazebo Mary Jane's house is damaged by a kitchen fire, and the tenant that has been renting her upstairs bedroom has to move out. It takes Mary Jane two months to repair the damage, plus an additional four months to find a new tenant. How many months of lost rental income can Mary Jane expect to receive from her insurer? A. None - loss of rental income is not covered under a homeowner's policy B. 4 months C. 2 months D. 6 months - CORRECT ANSWERS C. 2 months During a terrible storm, a tree falls right next to Jill's home, nearly taking out her roof. Fortunately the tree missed her house, but it landed on her air conditioning compressor, destroying it completely. Which coverage form might cover the loss of Jill's air conditioning compressor? A. Coverage C - Personal Property Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Loss of Use - CORRECT ANSWERS A. Ordinance or Law coverage The Smiths have decided to hold a New Year's Eve party. Over 80 people attend, 40 of which end up on the balcony for some fresh air. Under the weight of so many people, the wooden frame of the balcony gives way. Which type of coverage in their HO-2 policy would help pay to rebuild the Smiths' balcony? A. Product Liability B. Negligent Construction C. Coverage A - Dwelling D. Collapse - CORRECT ANSWERS D. Collapse Fred lives near a business that is currently the object of a protest. As police try to break up the protesters, a riot ensues and spills onto Fred's property, where protesters set fire to four of his trees. How much can Fred be indemnified for the loss of all four trees (ignoring any deductible)? A. Up to $400 B. Up to $500 C. Up to $1,000 D. Up to $2,000 - CORRECT ANSWERS D. Up to $2,000 Removal of Debris coverage would pay for the cleanup of which of the following occurrences? A. A windstorm blows shingles from the policyholder's roof all over the policyholder's front yard. B. A neighbor's trampoline blows over the policyholder's fence and into the policyholder's yard. C. A windstorm overturns a dumpster near a policyholder's home, blowing hundreds of pounds of garbage onto the policyholder's property. Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Several very large branches fall from a dead tree in the policyholder's backyard, without causing damage to the home. - CORRECT ANSWERS A. A windstorm blows shingles from the policyholder's roof all over the policyholder's front yard. Just two days before a hurricane hits New Orleans, Jim brings most of his valuable items (TV, stereo, jewelry, firearms, etc.) to his parents' house in Hammond, to keep them safe from the storm. Two weeks later, Jim's valuables are destroyed when a flood sweeps through Hammond, severely damaging his parents' house. Under which peril are the valuables covered? A. Flood B. Water C. Accidental Discharge or Overflow of Water D. Windstorm - CORRECT ANSWERS D. Windstorm Strong winds have blown many shingles off of Mark's roof, and the weather forecast is predicting an 80% chance of thunderstorms tomorrow. Mark heads to his local hardware store and purchases a ladder and tarp so he can temporarily keep water out of his home until the roof can be repaired. Which type of additional coverage might reimburse Mark for the cost of the materials purchased? A. Property Removal B. Reasonable Repairs C. Loss Assessment D. Debris Removal - CORRECT ANSWERS B. Reasonable Repairs Describe coverage A: - CORRECT ANSWERS Dwelling, attached structures, materials located near it Describe coverage B: - CORRECT ANSWERS Other detached structures Describe coverage C: - CORRECT ANSWERS Personal property (contents) Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Describe: Coverage D - CORRECT ANSWERS Loss of use Describe: Additional coverages - CORRECT ANSWERS Can be added to policy Ben built a small shed in the backyard of the house he's renting, to hold his lawn equipment and other tools. One afternoon, a strong storm brought a tree down on Ben's shed, practically destroying it. Which type of coverage in Ben's HO-4 policy could indemnify him for the cost of replacing the shed? A. Building Additions and Alterations coverage B. The shed would not be covered under an HO-4. C. Debris Removal coverage D. Reasonable Repairs coverage - CORRECT ANSWERS A. Building Additions and Alterations coverage Elizabeth has a personal laptop worth $1,400. One night, while Elizabeth is out, a thief breaks into her home and steals her laptop. How much can Elizabeth expect to be indemnified by her insurer for the loss of her laptop (ignoring any deductible)? A. $2,100 B. $1,500 C. $1,400 D. $500 - CORRECT ANSWERS C. $1,400 During a heavy rainstorm, Ben's basement flooded and suffered extensive water damage. Which section of Ben's Homeowners 3 policy will cover this damage? A. Coverage C - Personal Property B. None C. Discharge of Steam or Water D. Coverage A - Dwelling - CORRECT ANSWERS B. None Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. The insurer can settle anyway it finds advantageous to its interests. B. The insurer must use arbitration since Jake feels he is not at fault. C. The insurer can only settle in court if Jake demands a lawsuit. D. The insurer must settle however Jake's neighbor wishes. - CORRECT ANSWERS A. The insurer can settle anyway it finds advantageous to its interests. Which of the following expenses would NOT be covered under a homeowners policy additional coverage called Claims Expenses? A. Interest accrual on judgements B. Administrative costs related to renewing the insured's policy C. Premiums for bonds required in a lawsuit defended by the insurer D. Up to $250 per day for the insured's lost wages while the insured is helping with the claim investigation - CORRECT ANSWERS B. Administrative costs related to renewing the insured's policy Define: Coverage E (personal liability) - CORRECT ANSWERS Provides compensation to a third party who is injured or whose property is damaged by a policyholder Coverage E includes: - CORRECT ANSWERS Medical bills Lost wages Pain and suffering Inconvenience Property damage Define: Coverage F (medical payments) - CORRECT ANSWERS Coverage for medical expenses of third parties that are injured on your property Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Paul lives in an area where property values are appreciating rapidly. He would like his homeowner's policy to reflect the increase in the value of his home. Which endorsement might Paul purchase to accomplish this? A. Inflation Guard B. Increased Limits on Personal Property C. Additional Structures D. Valuation Endorsement - CORRECT ANSWERS A. Inflation Guard John's home is totally destroyed by a fire, and along with it most of his personal property. A few of the items were scheduled in his homeowners policy, such as his Rolex watch and a few antiques, but everything else was left as "unscheduled property." These "unscheduled" items, A. will not be covered. B. will have to be scheduled before they can be covered. C. will take twice as long for indemnification since their times weren't scheduled. D. will be covered under the normal policy limits. - CORRECT ANSWERS D. will be covered under the normal policy limits. Greg is sitting in his home when he feels the ground shake and give way beneath him. He is just able to escape before a large portion of his house falls into an enormous hole. Which endorsement would help Greg cover the losses caused by the ground falling out from underneath his home? A. Sewer Backup endorsement B. Sinkhole Collapse endorsement C. Hurricane Damage endorsement D. Earthquake endorsement - CORRECT ANSWERS B. Sinkhole Collapse endorsement Under Coverage F - Medical Payments to Others, the Payment of Claim provision states: Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. all payments made under Coverage F will be paid at actual cash value. B. Coverage F is voluntary coverage: even if a claim is paid, it is not an admission of the insurer's liability. C. no payments will be made until the insurer's liability has been determined. D. the insurer reserves the right to demand a proof of loss before paying an indemnity under Coverage F. - CORRECT ANSWERS B. Coverage F is voluntary coverage: even if a claim is paid, it is not an admission of the insurer's liability. The Liberalization clause in a homeowners policy: A. states that the insurer is obligated to pay out only up to the limit set by the policy, but must do so within 60 days of receiving proof of loss. B. states that only losses occurring during the policy period will be paid. C. applies not only to changes made during the policy period, but also to any changes made up to 60 days before the policy went into effect. D. voids the policy if the insured deliberately conceals or misstates pertinent info. - CORRECT ANSWERS C. applies not only to changes made during the policy period, but also to any changes made up to 60 days before the policy went into effect. To meet the 80% level of co-insurance required by his lender, Tom discovers he must insure his home for at least $320,000. What is the value of Tom's home? A. $440,000 B. $256,000 C. $400,000 D. $320,000 - CORRECT ANSWERS C. $400,000 Ron works from home. After a kitchen fire renders his home uninhabitable, he is forced to rent an apartment in town while the repairs are made. Which type of coverage could help Ron pay the cost of renting the apartment? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Dwelling policies do not offer "loss of use" coverage - CORRECT ANSWERS B. Dwelling policies do not provide liability insurance An unendorsed DP-1 basic form covers what three perils? A. Windstorm, fire, lightning B. Fire, lightning, external explosion C. Vandalism, malicious mischief, windstorm D. Fire, lightning, internal explosion - CORRECT ANSWERS D. Fire, lightning, internal explosion ABC Trucking owns a nice vacation house in the country, to which they regularly bring high-ticket clients as a benefit for staying loyal to them. They would like to purchase a policy to insure the property from things like fire, windstorm damage, or vandalism. What policy type should ABC Trucking purchase to cover the property? A. Standard fire policy B. Homeowner's policy C. Dwelling policy D. Commercial liability policy - CORRECT ANSWERS C. Dwelling policy Frank recently purchased some rural property that he would like to use as a hunting lodge. He won't be able to live there year-round, but will keep it furnished with the regular camping equipment. Frank needs to purchase insurance to protect his investment. Which type of policy would best fit Frank's needs? A. Commercial general liability B. Standard fire policy C. Dwelling policy D. Homeowners policy - CORRECT ANSWERS C. Dwelling policy Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Leonard has a dwelling insured under DP-1 with a limit of liability of $100,000 and no endorsements. An automobile swerves off the road and crashes through Leonard's dwelling. The cost to repair the damage to the wall is $10,000. However, when Leonard attempts to get the permits to do the repair, he finds out that current codes require that he perform a $1,000 upgrade to the plumbing in the wall. How much will the policy pay (ignore the deductible)? A. $1,000 B. $10,000 C. $11,000 D. Nothing. Damage from vehicles is not a covered peril under a DP-1 without an endorsement. - CORRECT ANSWERS D. Nothing. Damage from vehicles is not a covered peril under a DP-1 without an endorsement. Which of the following properties would NOT qualify for a dwelling policy? A. A four-plex with 5 tenants B. A 5-family dwelling C. A permanently installed mobile home D. A single-family dwelling owned by a partnership - CORRECT ANSWERS B. A 5-family dwelling Dwelling coverage would provide indemnification for damages to all of the following items EXCEPT: A. A car parked in a detached garage B. A sun porch built away from the home C. A pool house on the property D. A stairwell leading up to the front door - CORRECT ANSWERS A. A car parked in a detached garage Dan has a DP-3 policy on his $100,000 home. A tree falls onto his detached garage during a storm and breaks through the roof, causing $5,000 in damage. Under Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ which coverage within the dwelling policy would the damage to the roof possibly be covered? A. Coverage A B. Coverage B C. Coverage D D. Coverage C - CORRECT ANSWERS A. Coverage A Which of the following statements is TRUE about coverage C under a DP-2 or DP-3? A. Rowboats and canoes are covered, but only while on the premises B. Boats of any kind are covered, but only while on the premises C. Coverage for boats of any kind is excluded under "general exclusions" D. Coverage for rowboats and canoes is excluded; other boats are covered - CORRECT ANSWERS A. Rowboats and canoes are covered, but only while on the premises Jake's house is covered under a DP-2 policy with a $100,000 coverage A limit of liability. A fire destroys the dwelling and a $30,000 detached guest house. Assuming he has not endorsed or otherwise modified the coverage amounts of the policy, how much can Jake expect to receive from his insurer? A. $130,000 B. $100,000 C. Nothing - fire is not a covered peril under a DP-2 policy D. $110,000 - CORRECT ANSWERS D. $110,000 Francois has a DP-3 policy on his home, which covers him from most losses on an open-peril basis. He likes to collect old films, many of which are recorded on safety film (cellulose acetate). The problem is that cellulose acetate film gradually breaks down over time and will eventually "self destruct." The films are uninsurable for gradual breakdown under the DP-3 policy because: Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Items containing inherent vice will eventually breakdown or self-destruct B. Theft of anything not attached to the structure is excluded C. It is passed down from one vice to the next D. Vandalism usually occurs when inherent vice overrides the will - CORRECT ANSWERS A. Items containing inherent vice will eventually breakdown or self- destruct James rents a home to Jill and maintains a DP-3 policy on the dwelling. One day, Jill accidently leaves the oven on all day while she is out, and James' house burns to the ground, along with all the contents. Which coverage in James' DP-3 might pay for the items he left in the home for Jill's use? A. Coverage B B. Coverage A C. Coverage D D. Coverage C - CORRECT ANSWERS D. Coverage C Dan has a DP-3 policy on his home. During a storm, a tree falls onto his attached garage. The tree crashes through the garage roof and lands on Dan's water softener tank, destroying it completely. Which of these damages would be covered under coverage A? A. None B. The roof only C. The water softener only D. The roof AND the water softener - CORRECT ANSWERS D. The roof AND the water softener Grace purchased 40 acres of land a couple miles outside of town. To save time and money, she put up a basic mobile home and installed it permanently to the ground. Not planning on farming any of the land, Grace is now looking for a way to insure this second home and property. Which policy could best fit her needs? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Farm and ranch policy B. Commercial policy C. Homeowner's policy D. Dwelling policy - CORRECT ANSWERS D. Dwelling policy Which of the following coverages would need to be added by endorsement to a DP- 3? A. Other structures B. Medical payments C. Loss of use D. Personal property - CORRECT ANSWERS B. Medical payments Jacob's home burns to the ground, despite the fire department's attempts to save it. His home was fully insured under his DP-3 policy for $150,000. How much can Jacob expect to receive from his insurer to cover the loss and any bills he may receive from the fire department? A. $120,000 B. $150,000 C. $100,000 D. $150,500 - CORRECT ANSWERS D. $150,500 Greg's neighbor Sam is trimming his trees in his back yard. In the process, a big limb from one of Sam's trees crashes down onto Greg's fence. Assuming Greg has as DP-1 policy with the extended coverage endorsement, which of the following could help indemnify Greg for the repairs to his fence? A. Trees, shrubs, other pants B. Reasonable repairs C. None D. Debris removal - CORRECT ANSWERS C. None Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A windstorm blows down trees all over town, sending one of Greg's neighbor's trees into Greg's yard. Luckily for Greg, the tree doesn't hit his house, cause any damage to his fence, or even block his driveway. It's merely an eyesore. Which coverage in Greg's DP-2 would pay to remove the tree from his yard? A. Trees, shrubs, other plants B. Reasonable repairs C. No coverage applies to this loss D. Debris removal - CORRECT ANSWERS C. No coverage applies to this loss A windstorm passes over Blake's property, causing damage to his roof and tearing up several trees and shrubs in the process. Assuming Blake carries a $120,000 DP-2 on his home, with a trees, shrubs, and other plants endorsement, what is the maximum Blake can receive for his 15 damaged plants? A. $7,500 - All perils are covered and all damaged plants are covered at $500 per plant B. $0 - Wind is not a covered peril under the trees, shrubs, and other plants coverage C. $500 - Only one occurrence is paid D. $6,000 - All perils are covered and damaged plants are covered at $500 per plant, up to 5% of coverage A limit - CORRECT ANSWERS B. $0 - Wind is not a covered peril under the trees, shrubs, and other plants coverage Lightning strikes a tree in Pam's front yard, sending a limb crashing through her bay window. Pam hires a contractor to put up some plywood, temporarily sheltering the living room from the elements until she can get a few estimates and have the window replaced. Which coverage in her DP-3 could help with the cost of installing the plywood? A. Trees, shrubs, other plants B. Reasonable repairs C. Debris removal Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ An extended power failure in Tom's neighborhood causes his freezer to thaw, along with all the meat inside, resulting in an $800 loss. He files a claim with hid DP-3 insurer for the loss, which comes back denied. For what reason would the insurer deny the claim? A. There is no such thing as meat coverage in a dwelling policy B. Tom should have rented a generator to prevent the thawing C. Tom should have relocated the meat to another location D. The power outage occurred off-premises - CORRECT ANSWERS D. The power outage occurred off-premises A lightning strike sparks a fire on the grounds of Blake's property, causing damage to several trees and shrubs in the process. Assuming Blake carries a $120,000 DP-2 on his home with a trees, shrubs, and other plants endorsement, what is the maximum Blake can receive for his 15 damaged plants? A. $500 - Only one occurrence is paid B. $7,500 - All perils are covered and all damaged plants are covered at $500 per plant C. $6,000 - Lightning is a covered peril and damaged plants are covered at $500 per plant up to 5% of coverage A limit D. $0 - Lightning is not a covered peril with the trees and shrubs additional coverage - CORRECT ANSWERS C. $6,000 - Lightning is a covered peril and damaged plants are covered at $500 per plant up to 5% of coverage A limit Three weeks after Susan bought a DP-3 from Acme Insurance, the insurer decided to attract more customers by broadening the coverage offered by their DP-3, at no additional cost. Which of the following is TRUE? A. Acme Insurance must automatically apply the broader coverage to Susan's policy B. Acme Insurance must apply an automatic, pro-rated discount to Susan's policy C. Acme Insurance must notify Susan of the change within 10 days and allow her to cancel and re-issue her policy with the new coverage Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Susan must submit a new application to benefit from the new, broader coverage - CORRECT ANSWERS A. Acme Insurance must automatically apply the broader coverage to Susan's policy Tom owns a home in Florida that has been insured with Diamond Insurance Co. for six months. Now he is thirty days late in paying his monthly premium, and Diamond Insurance Co. wants to cancel his policy. Which of the following is TRUE? A. Diamond Insurance may cancel Tom's policy, but must notify Tom about the cancellation at least 20 days in advance. B. Diamond Insurance cannot cancel coverage until they receive notification from Tom about his desire to cancel the policy. C. Diamond Insurance may cancel Tom's policy, but must notify Tom about the cancellation at least 10 days in advance. D. Diamond Insurance must wait an additional 60 days before cancelling Tom's policy. - CORRECT ANSWERS C. Diamond Insurance may cancel Tom's policy, but must notify Tom about the cancellation at least 10 days in advance. If a Florida HO policy has only been in effect for 45 days, the insurer must notify the policyholder at least ____ days before cancelling it for non-payment of premiums, or at least ____ days before cancelling it for any other approved reason. A. 20; 100 B. 10; 45 C. 10; 20 D. 20; 30 - CORRECT ANSWERS C. 10; 20 Which of these statements about Hurricane coverage in Florida is FALSE? A. The minimum deductible for this coverage is $500. B. Properties along the coast are required to buy this coverage through the Citizens Property Insurance Corporation. C. The deductible for this coverage is often higher than the deductible that applies to the rest of the policy. Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. All Florida residential property insurance policies must include it. - CORRECT ANSWERS B. Properties along the coast are required to buy this coverage through the Citizens Property Insurance Corporation. In Florida, what are the basic limits of liability for Coverage E and Coverage F in a homeowners policy? A. Coverage E: $50,000 per occurrence; Coverage F: $5,000 per person B. Coverage E: $300,000 per occurrence; Coverage F: $1,000 per person C. Coverage E: $100,000 per occurrence; Coverage F: $10,000 per person D. Coverage E: $100,000 per occurrence; Coverage F: $1,000 per person - CORRECT ANSWERS D. Coverage E: $100,000 per occurrence; Coverage F: $1,000 per person Bob has a home in Florida with full replacement cost insurance coverage. After a severe hurricane levels his home, the property is declared a total loss. Bob is so discouraged that he takes several months to decide whether it is worth it to rebuild. Which of the following statements is TRUE? A. Bob's insurer must pay the full replacement cost of the property without waiting for proof that Bob has rebuilt his home. B. Bob must submit all receipts for completed work to his insurer within 6 months of the loss in order to be indemnified. C. Bob must notify his insurer of his intent to rebuild within 180 days of the loss in order to be indemnified. D. Bob's insurer must pay the ACV of Bob's property immediately, but can wait until Bob submits proof of his rebuilding expenses before paying the full replacement cost. - CORRECT ANSWERS A. Bob's insurer must pay the full replacement cost of the property without waiting for proof that Bob has rebuilt his home. Knightley Insurance Co. decides not to renew Emma's homeowners policy, which she has had for 6 years. Which of these statements is TRUE? A. Emma can keep her policy active by paying the next year's annual premium in advance. Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Which of the following does NOT count as "bodily injury" according to a personal auto policy? A. Sickness B. Psychological trauma C. Death D. Disease - CORRECT ANSWERS B. Psychological trauma Define: Part A - liability - CORRECT ANSWERS Covers insured's financial liability for damages he causes Define: Liability limits - CORRECT ANSWERS The insured may also pay a higher premium in exchange for higher liability limits (such as 50 / 100 / 50 or 100 / 200 / 100) Define: Out of state provision - CORRECT ANSWERS If an insured meets her home state's liability requirements, but gets into an accident out of state, it is assumed that she meets the minimum requirements of that state as well Define: Supplementary payments - CORRECT ANSWERS Assists policyholder with a variety of accident-related expenses (such as lost wages or bail bonds) and is not subject to liability limit Mark is driving along and looking for an address on the East side of Walker Street. As he squints to see the numbers posted on the buildings, he plows into the back of a car waiting at a stoplight. Both the driver and the passenger of the struck car are injured. The driver suffers $60,000 in bodily injury, the passenger suffers $55,000 in bodily injury, and the vehicle Mark hit sustains $30,000 in damage. Mark has liability coverage with split limits of 50 / 100 / 25. How much will Mark be responsible for out of pocket after this accident? A. $15,000 B. $20,000 C. None; Mark is totally covered by his policy Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. $45,000 - CORRECT ANSWERS B. $20,000 Norris borrows Arnold's truck to pick up some lumber from the hardware store. On the way to the store, Norris collides with a car, injuring the three people inside. The driver suffers $15,000 in injuries, one passenger suffers $25,000, and the other passenger suffers $20,000. Norris has a PAP with liability limits of 50 / 100 / 50, and Arnold's policy has liability limits of 25 / 50 / 10. How much will the primary policy pay for the injuries? A. $100,000 B. $60,000 C. $50,000 D. $25,000 - CORRECT ANSWERS C. $50,000 In which case would the insured be indemnified by her liability coverage? A. She gets into an accident that leaves her car totaled B. None; liability coverage never indemnifies the insured C. She causes property damage to her neighbor D. She has to pay a fee to retrieve relevant court documents - CORRECT ANSWERS D. She has to pay a fee to retrieve relevant court documents The insuring agreement for part A - liability in a personal auto policy states that: A. The insurer will pay for "bodily injury" or "property damage" to any "insured" because of an auto accident B. The insurer will cover the costs to defend the insured in court in subsequent lawsuits related to the same occurrence, even after the policy limit is reached C. The insurer will cover the cost to defend the insured in court, up to the policy limit D. The insurer has the right to settle liability cases out of court - CORRECT ANSWERS D. The insurer has the right to settle liability cases out of court Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Kelly took her eyes off the road and ended up smashing into the back of a passenger van. All five passengers were injured, each one ended up with $25,000 in medical costs. Assuming Kelly has liability coverage with limits of 50 / 100 / 50, how much will she have to pay out of pocket? A. $15,000 B. $50,000 C. $25,000 D. $10,000 - CORRECT ANSWERS C. $25,000 Which of the following would NOT be covered under part A of a personal auto policy? A. Damage the insured causes to his own garage B. Damage the insured causes while driving his friend's car C. Legal defense costs D. Lost wages - CORRECT ANSWERS A. Damage the insured causes to his own garage Having purchased a very nice used car yesterday, Ian decides to drive to Cheryl's house and ask if she would like to go to the movies. On his way over, a dog runs out in front of him. Ian veers hard left to avoid the animal, but overcorrects and flips the car, causing $16,500 in damage to his auto. To make matters worse, Ian hasn't even reported the purchase to his insurer yet, and he doesn't have collision or comprehensive coverage. However, Ian need not fret too much. Why is that? A. Since Ian was on his way to see Cheryl, her homeowner's policy will cover his loss B. Comprehensive and Collision coverage automatically apply to his newly purchased car for the first 14 days after purchase C. Comprehensive and collision coverages automatically apply to his newly purchased car for the first 4 days after purchase D. Since Ian hasn't yet made his first car payment, he isn't responsible for the car - CORRECT ANSWERS C. Comprehensive and collision coverages automatically apply to his newly purchased car for the first 4 days after purchase Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Your passenger without PIP B. The driver you struck C. You, when riding in another person's automobile D. Your family member - CORRECT ANSWERS B. The driver you struck Which of the following is NOT true of personal injury protection? A. PIP is primary coverage B. PIP restricts the policyholder's right to recover losses in civil court C. PIP is usually secondary coverage D. PIP provides no-fault protection - CORRECT ANSWERS C. PIP is usually secondary coverage Which of the following occurrences would be covered under other than collision coverage? A. Jane's windshield is cracked when she hits a bird B. Jessica's car is confiscated by the federal government C. Jordan runs over a big pothole and ruins one of his tires D. Jimmy's car is completely destroyed in a nuclear explosion - CORRECT ANSWERS A. Jane's windshield is cracked when she hits a bird Hank has collision coverage with a $2,000 deductible on his 2010 truck. One dark, rainy night, Hank's truck slips off the road and rolls down the embankment. The truck sustains $45,000 in damages, but the actual cash value of the vehicle is only $25,000. Which of the following statements is TRUE? A. Collision coverage will not indemnify Hank for this accident B. Hank will be indemnified by his insurer for $23,000 C. Hank will be indemnified by his insurer for $25,000 Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Hank will be indemnified by his insurer for $43,000 - CORRECT ANSWERS B. Hank will be indemnified by his insurer for $23,000 Julie maintains collision coverage with a $1,000 deductible on her 2007 pickup truck. While returning home from work, Julie swerves to miss a deer and ends up crashing into a telephone pole. Julie's truck sustains $35,000 in damages, yet the actual cash value of the vehicle is only $11,000. Which of the following statements is TRUE? A. Julie will be indemnified by her insurer for $10,000 B. Collision coverage will not pay for Julie's accident C. Julie will be indemnified by her insurer for $11,000 D. Julie will be indemnified by her insurer for $34,000 - CORRECT ANSWERS A. Julie will be indemnified by her insurer for $10,000 PAP insurance coverage only applies in the "policy territory." Which of the following is NOT part of the policy territory? A. Hawaii B. San Juan, Puerto Rico C. Ontario, Canada D. Mexico City - CORRECT ANSWERS D. Mexico City As Paul is driving up to the mountains to do some hunting, a deer sprints out in front of him. He strikes the deer, causing $5,000 in damage to his truck at $1,000 in injuries to himself. What insurance coverage would pay for the damage to Paul's truck? A. PIP B. Comprehensive C. Collision D. Liability - CORRECT ANSWERS B. Comprehensive Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Which of the following is NOT a nearly universal condition of a PAP policy? A. The insured must cooperate with the insurer during the investigation process B. The insured must allow the insurer to inspect a vehicle during a claims process C. The insured must file a report for hit and run accidents with the police D. The insured must actively avoid parking in high crime areas - CORRECT ANSWERS D. The insured must actively avoid parking in high crime areas While driving to the movies, Jayden is sideswiped, and the offending driver speeds off into the night. Not wanting to miss the movie, and because his car is still drivable, Jayden continues on his way to the theater. The next day, he files a claim with his insurer for the damages. Which "duty of the insured" did Jayden fail to address? A. Jayden did not prove probable cause for the accident B. Jayden waited too long to file the claim C. Jayden did not make a reasonable attempt to catch the hit and run driver D. Jayden did not notify the police - CORRECT ANSWERS D. Jayden did not notify the police No-fault insurance in a personal auto policy: A. Typically only provides coverage for bodily injury B. Is limited, but will pay for any damages an insured may cause without requiring proof of loss C. Is mandatory in all states D. Provides liability coverage for a third party, regardless of who is at fault - CORRECT ANSWERS A. Typically only provides coverage for bodily injury Define: Part E - Duties after an accident or loss - CORRECT ANSWERS Lists eight duties, such as reporting accidents promptly and cooperating with the insurer's investigation Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Collision coverage will not pay for Sonia's accident. - CORRECT ANSWERS B. Sonia will be indemnified by her insurer for $14,000. Bonnie's PAP includes Comprehensive coverage. Which of the following losses could this coverage pay for? A. Bonnie's car breaks down due to an engine malfunction. B. Bonnie's car catches fire. C. Bonnie rolls her vehicle in a one-car accident. D. Bonnie rear-ends another vehicle. - CORRECT ANSWERS B. Bonnie's car catches fire. Mark is driving along and looking for an address on the East side of Walker Street. As he squints to see the numbers posted on the buildings, he plows into the back of a car waiting at a stoplight. Both the driver and the passenger of the struck car are injured. The driver suffers $70,000 in bodily injury, the passenger suffers $65,000 in bodily injury, and the vehicle Mark hit sustains $30,000 in damage. Mark has liability coverage with split limits of 50/100/25, and both injured people carry the minimum PIP for Florida. How much will Mark be responsible for out-of-pocket after this accident? A. $20,000 B. None; Mark is totally covered by his policy. C. $15,000 D. $45,000 - CORRECT ANSWERS A. $20,000 Which of the following is NOT a reason to buy more insurance than the minimum amount required by Florida? A. Your premiums will be lower when you purchase more coverage. B. Drivers are liable for all damages they cause. C. The cost of an F-250 Super Duty can be upwards of $60,000. Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. An auto policy pays for liability, but only up to the set limits. - CORRECT ANSWERS A. Your premiums will be lower when you purchase more coverage. In Florida, every driver must have $10,000 in property damage liability coverage and $10,000 in PIP in order to operate a motor vehicle. If the driver is in a wreck and is found to be at fault, how much liability coverage must the driver have for total bodily injury per accident? A. $15,000 B. $20,000 C. $30,000 D. $10,000 - CORRECT ANSWERS B. $20,000 What is the minimum amount of PIP coverage required by the state of Florida? A. $5,000 B. $10,000 C. $50,000 D. $25,000 - CORRECT ANSWERS B. $10,000 In Florida, Uninsured/Underinsured Motorist Coverage: A. is required in every auto policy, unless the insured declines it in writing. B. cannot be stacked. C. is not available in a Personal Auto Policy. D. is mandatory for all drivers. - CORRECT ANSWERS A. is required in every auto policy, unless the insured declines it in writing. Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on May 31. Which of the following statements is TRUE? Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ A. Lemon Insurance must notify Hugh at least 10 days before the policy expires. B. Lemon Insurance must notify Hugh at least 45 days before the policy expires. C. Hugh's policy will be effective until 12:00 AM on June 1. D. Hugh's policy will be effective until 11:59 PM on May 31. - CORRECT ANSWERS B. Lemon Insurance must notify Hugh at least 45 days before the policy expires. Anyone who registers or drives a car in Florida must have PIP coverage of at least: A. $20,000 B. $10,000 C. $15,000 D. $5,000 - CORRECT ANSWERS B. $10,000 Jared runs a red light and crashes into a car, injuring the four people inside. All five people involved in the wreck have Personal Injury Protection. Emma gets severe whiplash; Amy suffers permanent scarring on her face; Alexandra has a broken leg, and Adam is paralyzed from the waist down. Florida's no-fault law allows which of these people to sue Jared? A. Alexandra & Adam B. Adam C. Amy & Alexandra D. Amy & Adam - CORRECT ANSWERS D. Amy & Adam What is the current minimum amount of liability coverage required by the state of Florida for a driver who is found to be at fault in an accident? A. 25/50/10 B. 25/10/50 C. It depends on the value of the car. D. 10/20/10 - CORRECT ANSWERS D. 10/20/10 Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Part of Jake's policy premiums are subsidized by the federal government - CORRECT ANSWERS A. Jake's coverage will be based on the amount of acreage he has Typical crop-hail insurance provides coverage for all of the following perils, EXCEPT: A. Wildfire B. Transit to storage after harvest C. Hail D. Flood - CORRECT ANSWERS D. Flood If Farmer Brown sustains a 10% loss to his crop, and he has crop-hail insurance with a $10,000 limit and a 5% minimum loss percentage, how much will his policy pay him? A. $500 B. $10,000 C. $1,500 D. $1,000 - CORRECT ANSWERS D. $1,000 Which of these is a typical exclusion in a crop-hail policy? A. Failure to harvest mature crop B. Excessive moisture C. Fire D. Transit to storage after harvest - CORRECT ANSWERS A. Failure to harvest mature crop Define: Crop-yield insurance - CORRECT ANSWERS Provides coverage for physical loss to the crops Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ Define: Crop-hail insurance - CORRECT ANSWERS Privately sold, offering coverage for a few specified perils Define: MPCI - CORRECT ANSWERS Government subsidized and regulated ,offering wide coverage for many perils Define: Government support - CORRECT ANSWERS Subsidized by the Federal Crop Insurance Corporation (FCIC) and regulated by the U.S. Department of Agriculture (USDA) Which of the following is true for crop-hail insurance? A. It does not cover fire B. It is subsidized by the government C. It cannot be added during the growing season D. Generally it is available from private insurers - CORRECT ANSWERS D. Generally it is available from private insurers Which of the following is NOT covered by an MPCI policy? A. Late planting B. Locusts C. Failure to reseed D. Volcanic eruption - CORRECT ANSWERS C. Failure to reseed Laura's corn crop is covered under a multi-peril crop insurance policy. Under this policy, Laura is covered for all of the following perils, except: A. Theft B. Low / poor crop yield C. Frost Alabama adjuster exam pt 2 Exam Questions and Answers (verified answers) 739 Questions 2024/2025 RATED A+ D. Flood - CORRECT ANSWERS A. Theft Chuck's field of corn usually produces $20,000 per year. After a wildfire wipes out half of his field, the other half's yield does exceptionally well and brings in twice as much revenue. If Chuck files a claim against his crop-hail policy, which of the following statements would most likely be true? A. Chuck would receive an amount equal to half of the damaged portion of the corn field B. Chuck would not receive anything, because the yield from the undamaged half made up for the loss C. Chuck's claim would be denied because crop-hail insurance does not protect against wildfire D. Chuck would receive full indemnification for the damaged half of the corn field - CORRECT ANSWERS D. Chuck would receive full indemnification for the damaged half of the corn field Which of these statements about multi-peril crop insurance is true? A. MPCI is too expensive for most farmers B. MPCI cannot be purchased after the sales closing date C. MPCI must be run by the state D. MPCI does not cover earthquake - CORRECT ANSWERS B. MPCI cannot be purchased after the sales closing date The Risk Management Agency is responsible for all of the following, except: A. Assigning commodity prices B. Issuing crop assignments to farmers C. Reimbursing private crop insurers for administrative costs D. Setting critical production dates - CORRECT ANSWERS B. Issuing crop assignments to farmers