Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre-Licensing 87questions and answe, Exams of Nursing

Download Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre-Licensing 87questions and answe and more Exams Nursing in PDF only on Docsity! Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ XYZ Computer's production building for circuit boards is struck by lightning, which results in a fire that burns down the entire facility. XYZ Computer cannot continue the production of computers until the facility is rebuilt. Which insurance coverage might indemnify XYZ Computer for lost revenue until a new facility is built? - CORRECT ANSWERS Business Interruption Which of the following statements is TRUE about Coverage C under a DP-2 or DP-3? - CORRECT ANSWERS Rowboats and canoes are covered, but only while on the premises. Barbara is preparing to negotiate an auto claim on behalf of XYZ Insurance. She knows the circumstances of the loss and has completed the investigation and evaluation. What other piece of information must Barbara know before entering into negotiation with the claimant? - CORRECT ANSWERS The maximum amount XYZ Insurance will pay for the claim Under which circumstances may an insurer cancel a policy with sufficient notice? - CORRECT ANSWERS If the policyholder misrepresents facts to obtain a policy When Jane is involved in an accident in Alabama, she immediately calls her insurer and files a claim. Her insurer is required by law to do all of the following EXCEPT: - CORRECT ANSWERS refrain from paying or denying the claim until the claimant submits proof of loss forms. HIPAA was enacted by the US Congress in _________. - CORRECT ANSWERS 1996 In Alabama, the employers of which of the following employees do not need to purchase Workers' Compensation insurance for them? - CORRECT ANSWERS Farm laborers A lightning strike sparks a fire on the ground 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? - CORRECT ANSWERS $6,000- Lightning is a covered peril and damaged plants are covered at $500 per plant up to 5% of Coverage A limit Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ All of the following people are exempt from adjuster licensing in Alabama, EXCEPT: - CORRECT ANSWERS out-of-state adjusters who are licensed in their home state. An overhead projector is taken to a conference room at a local hotel for a week. Sometime during the week, the projector falls off its stand and is destroyed. Assuming it is a covered loss, what commercial property coverage might cover the projector? - CORRECT ANSWERS Property Off-Premises When Sally slips and falls at XYZ Furniture, she injures her back and incurs $145,000 in covered medical expenses. Assuming XYZ Furniture carries a CGL policy with a General Aggregate of $400,000, and a Per Occurrence limit of $100,000, what will the new limits be after paying this claim? - CORRECT ANSWERS General Aggregate: $300,000; Per Occurrence: $100,000 Lori's property was damaged in a recent flood. The damages to her home and detached garage came to $80,000 and $15,000, respectively. Lori has a Dwelling Form flood policy with $100,000 limit. How much indemnification can Lori expect to receive for the damage to her garage? - CORRECT ANSWERS $10,000 The NCCI (National Council on Compensation Insurance): - CORRECT ANSWERS is a rating bureau that develops the guidelines for setting workers' compensation premiums that are used by most states. Frank found a "favorable lease" for his business two years ago at $10/sq.ft. per year. He ended up leasing a 20,000 sq.ft. space for 6 years to lock in that yearly lease of $200,000. Yesterday, Frank's business was struck by lightning and burned to the ground, forcing him to lease a new building. Unfortunately the going rate now is $15/sq.ft. and Frank still needs 20,000 sq.ft. of space. How much could Frank's Leasehold Interest Coverage pay for the additional costs of leasing a new space for the remaining 4 years? - CORRECT ANSWERS $400,000 Which of the following is NOT a universal commercial property policy exclusion? - CORRECT ANSWERS Lightning Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Sally's car skids through a stop sign and hits another car in the intersection. She has $25,000 in property damage coverage, but the damage to the other car comes to $40,000. Who will pay the difference? - CORRECT ANSWERS Sally Molly leaves town for a one-week vacation. When she returns, she finds that the back door to her house has been kicked in and damaged. Her laptop is gone, and— to her surprise—she finds that the copper piping in the basement has been torn out and stolen as well! She has a DP-3 with coverage for contents but no additional endorsements. What, if anything, is covered? - CORRECT ANSWERS The damage to the door and the copper piping An insurer in Alabama sends a partial payment to a claimant and states that payment is final, even though the policy limit has not been met and no compromise has been reached with the claimant. This act is: - CORRECT ANSWERS illegal. In a CGL policy, the basic extended reporting period provides extended coverage for an "occurrence" that is reported within _____ days of the end of the policy period. - CORRECT ANSWERS 60 Ark Inc. purchases a CGL policy to protect the company against lawsuits for which they might be found legally liable. Which would NOT be covered by their CGL? - CORRECT ANSWERS An employee drives a forklift into a wall of Ark Inc.'s owned factory, causing it to collapse. After Alabama was hit by a hurricane, there were too many claims coming in for the insurers to handle with state-licensed adjusters. Peter is not licensed in Alabama, but he has been called in to work claims as an emergency adjuster. All of the following statements are true in Peter's case, except: - CORRECT ANSWERS Peter will have to pay the $80 fee and submit his application to get his emergency license. LMN Insurance is based in Texas, but it also has offices in Alabama. In Alabama, LMN Insurance is considered: - CORRECT ANSWERS a foreign insurer. The Commercial General Liability (CGL) could classify all of the following as an "occurrence" except: - CORRECT ANSWERS A customer returns a defective bicycle. Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ According to the Other Insurance provision in Commercial General Liability policies: - CORRECT ANSWERS a claims-made form will always pay the excess after an occurrence form. Jeff's commercial property policy includes coverage for Fire Department Service Charge, with a limit of $500. When one of Jeff's business premises catches fire, he calls 911. The fire department arrives and puts out the fire, saving the majority of Jeff's business. Later that week, Jeff has to call the fire department again when another fire breaks out, this time at his second business location. When the bill arrives for the fire department's services, it shows a $600 fee for each call, totaling $1,200. Jeff files a claim with his insurer for the charges. How much of the bill will Jeff have to pay? - CORRECT ANSWERS $200 When an insurer decides to not renew an existing commercial property policy, it is obliged to follow the Cancellation and Nonrenewal condition of supplying notice to the policyholder 45 days in advance. If the insurer fails to meet this deadline, it must: - CORRECT ANSWERS offer the same premium rates and policy coverage as before for an additional 30 days. Dwelling policies and homeowners policies provide a variety of insurance protections for consumers. What is the primary difference between a typical homeowners policy and a dwelling policy? - CORRECT ANSWERS Dwelling policies do not provide liability insurance Watson makes $550 a week as a waiter in Alabama. When he trips over a customer's briefcase and breaks his leg, he can't wait tables for 9 months. The restaurant decides to pay him $100 per week to roll silverware until his leg heals. How much would Watson's Temporary Partial Disability benefits pay? - CORRECT ANSWERS $300 John works for ABC Insurance. He is paid on a commission basis and needs to meet certain sales goals in order to draw a reasonable salary. To help in this endeavor, John regularly tells potential clients that XYZ Insurance and Integritas Insurance often fail to pay claims, and that they charge unreasonably high premiums. In speaking falsely of his competition, John has indulged in which unethical practice? - CORRECT ANSWERS Defamation Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ An Alabama auto insurer must offer __________ coverage to every policyholder, but the policyholder may choose to exclude it. - CORRECT ANSWERS Uninsured/Underinsured Motorist The Insurance Guaranty Association is a mechanism that covers claims in the event of: - CORRECT ANSWERS an insurer's insolvency. When Shawn purposefully set fire to Jim's restaurant, Jim was covered under his commercial property policy. Which condition allows Jim's insurer to attempt to reclaim those damages from Shawn? - CORRECT ANSWERS Subrogation Ben owns a souvenir shop in a small town. During the winter time, the population consists of about 2,000 locals, but once the summer season hits, it's a mad-house. The island can see over a million travelers during the summer season, and Ben must be ready with enough inventory to handle the demand. Which endorsement to his commercial property policy could temporarily increase Ben's coverage limits during this high-volume time? - CORRECT ANSWERS Peak Season Wilma works for a professional cleaning service. While cleaning a ceiling fan at a customer's home, she leans too far forward, upsets the step stool, and falls. In an effort to prevent her fall, Wilma grabs the ceiling fan, but just ends up pulling the fan down and leaving a gaping hole in the ceiling. The damage Wilma caused would fall under what coverage in her company's Commercial General Liability policy? - CORRECT ANSWERS Operations Liability Helen's business is growing rapidly, so she decided to add an annex onto her office and hire another worker. A storm blows down most of the annex structure while it is under construction, forcing Helen to restart from scratch. Assuming she maintains the 80% coinsurance requirement on her commercial policy, which coverage extension could help Helen rebuild? - CORRECT ANSWERS Newly Acquired Property Greg owns a construction business and has been really swamped lately. His friend Chuck is looking to become a claims adjuster, but doesn't have very much construction experience, so Chuck offers to help Greg on the weekends for free. This way Chuck gains his experience, while Greg catches up on work without the additional cost of hiring someone. According to the definitions in Greg's CGL policy, Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Which of the following is TRUE about workers' compensation insurance? - CORRECT ANSWERS It benefits both the employee and the employer. Acme Boats experiences a devastating fire in their factory. They turn to their Business Income coverage to recover their loss of income due to the fire. When Acme Boats initiated the policy, they chose the Maximum Period of Indemnity coverage option with a policy limit of $150,000. Acme Boats experienced the following loss of business income in the months after the fire: Month 1$20,000Month 2$20,000Month 3$15,000Month 4$15,000Month 5$10,000Month 6$10,000. How much money might Acme Boats be indemnified for the loss of business income? - CORRECT ANSWERS $70,000 Which of the following is NOT a purpose of insurance regulation? - CORRECT ANSWERS To prohibit insurance-rating John moves his family to Alabama from Wyoming. In order to drive legally in the state, he must: - CORRECT ANSWERS be able to show proof of financial responsibility. Which of the following statements is TRUE of a claim dispute litigated in a state that follows the doctrine of Contributory Negligence? - CORRECT ANSWERS If the plaintiff is found to be at all negligent, she will receive no settlement. In which of the following situations would Jason's auto liability insurance be the primary coverage? - CORRECT ANSWERS Andy borrows Jason's car and accidentally crashes into the local post office. In 1945 Congress passed the McCarran-Ferguson Act. What does that act do? - CORRECT ANSWERS Gives the states the authority to regulate the insurance industry A fierce windstorm blows through town, stripping the shingles off of the roof and shattering all of the windows at Gradient Industries. What commercial property coverage might pay for the cost of cleaning up the shingles and broken glass? - CORRECT ANSWERS Debris Removal Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ ABC Computers experiences a fire overnight at their corporate offices. ABC Computers had purchased an older building to house their offices, and the repair costs include upgrading the old building to adhere to modern fire codes. Which coverage might indemnify ABC Computers for the added expense of these upgrades? - CORRECT ANSWERS Ordinance or Law endorsement Diana owns a manufacturing company. One evening, a windstorm blows a tree through the side of her building, leaving a hole in the wall and damaging one of her production machines. Diana temporarily fixes the hole with some plywood, but will have to rent a new production machine until hers is repaired. Which coverage in her commercial property policy could indemnify Diana for the cost of the machine rental? - CORRECT ANSWERS Extra Expense Coverage Which of the following is NOT true of the Replacement Cost endorsement to the Buildings & Structures Form of a commercial property policy? - CORRECT ANSWERS It applies to both the insured property and any property of others on the insured premises. Which of the following coverages is NOT subject to a Per Occurrence limit? - CORRECT ANSWERS Personal and Advertising Injury All Alabama drivers must prove they are financially responsible in case of an accident that causes injuries or damages another's property. Which of the following is NOT a way for a driver to prove financial responsibility? - CORRECT ANSWERS Submitting proof of savings account When a fire destroys a car parts manufacturer in China, USA Motors finds itself without the necessary parts to build its vehicles. Which commercial property insurance coverage option could indemnify USA Motors from lost business due to the damages sustained by its Chinese supplier? - CORRECT ANSWERS Contingent Business Interruption Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit him on the head. Jerome's injuries resulted in an extended hospital stay, so he sued ABC Imports and was awarded $400,000. Assuming ABC Imports carries a CGL with a General Aggregate of $750,000 and a Per Occurrence limit of $250,000, what will Challenging Chapters: Alabama P&C, WC, & Crop Adjuster Pre- Licensing 87questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ the new General Aggregate Limit be after this claim is paid? - CORRECT ANSWERS $500,000 ABC Homebuilders hires Frank's Roofing to work on several units in its new subdivision. While roofing one of the homes, a worker drops a bag of nails onto a neighbor's AC unit. Some nails fall inside, destroying the unit. Who is ultimately responsible for the damage done to the air conditioning unit? - CORRECT ANSWERS ABC Homebuilders George lives in Connecticut and carries the minimum amount of auto liability insurance for that state, which is 20/40/10. On a trip to Alabama, George causes an accident that leaves the other motorist with $35,000 in bodily injuries and $12,000 in property damage. How much will George's liability coverage pay the other driver? - CORRECT ANSWERS $25,000 for bodily injuries and $12,000 for property damages John purchased some business property a few years ago. In the past two years, the property value has grown 4% each year. John maintains the 80% coinsurance requirement on his business policy, but wants a more automated coverage so he doesn't have to constantly check the appraised value of his property. Which optional coverage can John purchase to help ensure that he always has the right amount of coverage? - CORRECT ANSWERS Inflation Guard An apprentice independent adjuster license in Alabama is good for ____ months. - CORRECT ANSWERS 12 Jack has been having financial troubles for a long time when his auto insurance is cancelled again. If Jack has two previous violations for driving without insurance, what kind of penalty is he risking by driving without insurance again? - CORRECT ANSWERS Fine of $1,000, suspension of his driver's license for six months, and suspension of his car registration for four months While going over his CGL policy, Bill pauses on the Declarations page. He finds the usual items: named insured, address, policy period, premiums, and the limits of insurance. But he also finds a retroactive date listed. This tells Bill his policy: - CORRECT ANSWERS is a claims-made policy.