Adjuster Flashcards
which of the following phrases best defines a hazard?
a condition that increases the chance of a loss.
which of the following perils is covered by broad form perils but not covered by the basic form?
weight of ice and snow
a company’s promise to pay for damages caused by or resulting from any covered cause of loss would be be found in which of the following sections of commercial property policy?
insuring agreement
which of the following businesses would be eligible for a business owners policy?
a barber shop.
a primary obligation of an insurer is to?
pay the claims covered under the policy.
all the following options are examples of insurable Interest except
an individuals interest in property her parents will Sunday leave to her
which of the following sources may be used to provide property insurability information
physical inspections
which of the following terms best describes continuous and repeated exposure to conditions that are neither expected nor intended by the insured?
occurrence
in order to issue a written binder for a commercial property policy what is the minimum consideration a producer must secure from an applicant?
promise to pay premium
the national flood insurance program provides coverage for losses caused by all of the following occurrences except
water main breakage
which of the following statements is correct about the Fair Credit Reporting Act?
it provides a method for an applicant to correct any incorrect information in the credit report
the personal liability section of a homeowner’s policy covers which of the following options
bodily injury caused by the personal activities of an insured.
which of the following terms is defined as the uncertainty of future outcome?
risk
a building adjacent to Insurance business is severely damaged by fire. Because of the nature of the damage to the adjoining property the insured is denied access to the business by the fire department. If the insured property is covered under a business income coverage form the insurer will cover the loss of earning for a maximum of
30 days
a sudden and unexpected event that is normally identifiable as to time and place is best described as
an accident
a fire in and insured restaurant burns the kitchen walls and causes smoke damage to the entire interior. water used to extinguish the fire causes extensive damage to floors and Furnishings. The water damage is best described as?
a direct loss.
which of the following policy forms would best protect a business that must keep operating after a loss?
extra expense
information provided by the insured in a proof of loss is considered
a representation
a deer jumps through the window of an insured home damaging the interior and exterior walls which of the following homeowners forms listed below is the least comprehensive formed that will still provide coverage for this loss?
ho - 3 form
under a personal property floater a loss is covered when it occurs
anywhere in the world
which of the following statements is correct regarding proof of loss?
it is a sworn statement by the insured
which of the following coverages may be added by endorsement to a boiler and Machinery policy
extra expense
actual cash value is most often defined as which of the following options?
replacement cost less depreciation
Pro rata cancellation occurs when?
An insurer cancels a policy
in an applicant’s statement included in the insurance contract that the property to be insured has an operable sprinkler system is?
a warranty
the procedure for resolving a disagreement between an insured and the insurer about a loss is described in which of the following parts of an insurance policy?
insuring agreement
which of the following perils is covered under the commercial property basic cause of loss form
sinkhole collapse
the maximum amount of policy will pay in the event of a loss is called the
limit of liability
all of the following perils are covered under a building and personal property coverage form with a cause of loss basic form attached except
Earth movement
N’s next door neighbor S dumps hot ashes in N’s trash dumpster starting a fire and causing severe damage to N’s home. N’s company pays the loss and then goes after S for payment. This is an example of
subrogation
which of the following homeowner coverages does not generally contain a deductible
liability
in a commercial property form if a building is left vacant coverage for vandalism will continue for up to how many days
60
the principle of Indemnity is designed to avoid?
overpayment of a claim
an insured has an ho-3 formed when using a snowblower borrowed from a neighbor the insurance takes a large Rock and causes $2,000 worth of damage to these snowblower under what section of the policy could the payment be made on the insured’s behalf
personal liability
inland marine insurance is commonly used to ensure all of the following
automobiles
a commercial property policy specifies which of the following responsibilities as a duty of the insured
to provide a sworn proof of loss statement if requested by the company
commercial package policy must include at least how many coverage parts
2
the owner operator of a computer store often leaves expensive computers balanced negligently on the edges of tables believing that any damage to the computers will be paid by the insurance policy this situation is best described as
morale hazard
which of the following terms can be defined as a policy provision that omits certain risks from coverage
exclusions
under a homeowner’s policy an insured is required to take all of the following actions when a covered loss occurs except
hire an appraiser to determine the amount of loss
which of the following statements best describes the term abandonment as used in property insurance
an insured refusal to retain property after payment of a partial loss
