Alabama Insurance Adjuster Practice Exam

What was a valid reason for denying Ron’s Mechanical Breakdown Insurance claim?

1. He had a pre-existing condition.

2. The vehicle was overloaded at the time of breakdown.

3. Ron did not notify the insurer promptly.

4. The truck was over 10 years old.

The correct answer is: The vehicle was overloaded at the time of breakdown.

Denying Ron’s Mechanical Breakdown Insurance claim because the vehicle was overloaded at the time of breakdown is valid because insurance policies often include specific conditions regarding the use of the vehicle. Overloading can lead to increased stress on the vehicle's mechanical components, which can result in breakdowns that are not covered by the insurance policy. Insurers typically outline restrictions on the proper use of the vehicle, and exceeding the manufacturer's weight recommendations can void coverage, as it represents a failure to maintain the vehicle in accordance with its intended use. In the context of mechanical breakdown claims, it’s essential for the policyholder to adhere strictly to the guidelines provided in their policy to ensure coverage is maintained, making this reason a solid basis for denial.