Alabama Insurance Adjuster Practice Exam

These questions are part of the practice quiz. Start practicing

• What does Lonnie's responsibility of paying 15% of her medical costs represent?
• If Diana suffers $5,200 in losses from a fire, how much can she expect to receive under her DP-2 policy, assuming coverage limits of $150,000 for Coverage A?
• Which of these businesses would be LEAST likely to need a bailee's customer floater?
• For minor injuries sustained at work, what type of workers' compensation benefits can employees expect?
• What type of risk does an insurance company typically want to insure?
• After a fire destroys his kitchen, how much will Bill's insurance pay for the rebuild?
• How much indemnification will Sarah receive for her extra expenses if her Extra Expense coverage limit is $100,000?
• How can a stand-alone excess liability policy be best described?
• According to the Workers' Compensation law, which of the following qualifies as a "Dependent Child"?
• What is the main function of an insurance policy?
• Which of the following is NOT a requirement for a legally binding contract?
• When handling claims, which attitude should the adjuster strive to maintain?
• If Howard's flood policy has a limit of $150,000 and the total damage to his dwelling and garage is $125,000, how much will the policy pay in total?
• What does an aggregate liability policy limit refer to?
• What coverage in a Farm Insurance policy covers the main dwelling on the insured farm?
• Which of the following factors is the least relevant when evaluating an insurance claim?
• In a Personal Auto Policy, who is classified as a "family member"?
• What scenario best illustrates an indirect loss?
• What type of funding is used for residual market insurance programs?
• What are the factual statements made by the insured that form the basis of an insurance policy called?
• In a t-bone collision caused by running a red light, what is the liability amount Roxanne will have to pay out-of-pocket for destroying Ben's car?
• Which of the following statements about a moral hazard is FALSE?
• Who sets the critical production dates for MPCI policies?
• What is the maximum amount Susan can receive for her late husband’s gravestone under her homeowners policy?
• What should a property owner typically do when they notice damage to their home?
• Which of the following does NOT describe a type of cargo coverage in Ocean Marine insurance?
• How are mediators typically compensated during a dispute?
• What kind of incident is likely covered under a liability insurance policy?
• What is the purpose of a binder in insurance?
• Which of the following best describes the term 'deductible' in an insurance policy?
• In Business Personal Property coverage, which of the following items is typically covered?
• What type of hazard is indicated by driving while extremely tired?
• Which type of insurance policy provides the broadest range of coverage for homeowners?
• Which of the following is NOT a requirement for adjusters to handle NFIP claims?
• Why was Jane's claim denied after her wheat field was ruined by a hail storm?
• How can producers protect against loss from both market fluctuations and production losses?
• What is the fee paid by the insured in exchange for an insurance policy called?
• What must be avoided under the implied warranties of Ocean Marine Insurance regarding the vessel?
• What action did Janet fail to take to prevent further damage to her property?
• Which negative trait in an adjuster's attitude can hinder negotiations?
• How will ABC Masonry, Inc. handle a claim for $150,000 in property damage under their aggregate liability policy?
• Which of the following statements is TRUE regarding high-crime neighborhoods?
• Which type of insurance would best cover a shipping service like Anna's Rare Books?
• What type of coverage does commercial property insurance typically exclude?
• Which item would NOT be covered under Coverage B of the Building and Personal Property Coverage in a commercial policy?
• When the monetary difference between an adjuster and a claimant is substantial, what action should the adjuster take?
• Which type of business typically qualifies for a Business Owners Policy?
• What is the term for a contract that guarantees specific benefits to its members?
• How much will Kevin's insurer pay him for the damaged sofa and loveseat?
• In David's Commercial General Liability policy, what best describes Tina after she is hired as an office manager?
• What key element should an adjuster always prioritize during claim investigations?
• When an insurer effectively reduces their potential loss from an applicant’s high risk by charging higher premiums, they are practicing?
• Which of the following best describes a "trip transit policy"?
• Which of the following is NOT a reason to purchase umbrella liability coverage?
• A processing and servicing company can qualify for a BOP only if their annual revenues are under how much?
• What general principle do insurance policies typically emphasize regarding claims?
• By accepting $10,000 from his insurance, how much can James sue Andrea for personal injury?
• What is the primary purpose of liability insurance?
• What is the primary function of a surety bond?
• If an insurance applicant is provided with short-term coverage while awaiting a policy, what is this temporary policy usually called?
• Which statement accurately summarizes the "assumption of risk" rule?
• What kind of disability benefits will Brian likely receive after becoming permanently deaf due to a workplace accident?
• How much medical cost did each passenger from the van incur due to the accident caused by Kelly?
• If Tim is awarded $55,000 for his medical expenses due to an auto accident, how are these damages categorized?
• How much does Sam spend in hotel expenses while evacuated from his home due to flood waters?
• What is the maximum coverage offered by the AIUA for combined dwelling and contents?
• If Aaron's soybeans cause illness, what type of coverage will pay for the claims filed against him?
• What CGL policy would cover Ryan's claim filed regarding his knee injury that is claimed to be linked to the exercise bike incident?
• Lucy has insurance on an expensive necklace she wears daily. If she leaves it in her car's cupholder, what behavior is exhibited?
• Which of the following damages would NOT be covered under the Comprehensive section of a Personal Auto Policy?
• Who will be primarily held liable for damages if Nancy and Drew borrow Joe's car and get into an accident?
• In insurance, who is generally considered to be the principal?
• If an insurer denies a claim due to failure of reasonable effort to protect the property, what might this suggest about the policyholder's responsibilities?
• Which of the following represents an action that reduces the likelihood of a loss?
• In an insurance policy, the summary of what the insurer will do in the event of covered loss is called?
• In the context of an insurance claim, what should Jillian consider when negotiating the settlement for Caroline?
• If a sprinkler system covered under a BOP becomes inoperative, the insured must notify the insurance company within how many hours?
• Which of the following statements is TRUE regarding Dr. Adams's Professional Liability Policy during her malpractice lawsuit?
• What type of insurance does Maria likely have if she was left responsible for additional charges after a flat daily rate payment by her insurer?
• In terms of a claim negotiation, what is a possible consequence of a claim history involving multiple similar claims?
• Which factor indicates implied authority in an insurance context?
• Under a typical Equipment Breakdown Protection Coverage Form, how are covered losses mainly settled?
• Which statement regarding flood insurance is true?
• What type of coverage would be applicable to Lucille's woodworking business under Coverage A after a fire destroys her operation?
• How did the weather conditions contribute to Janet's situation?
• What would be the effect if the Extra Expense limit on Sarah’s policy was exceeded?
• How many passengers were injured in the accident involving Kelly?
• A large corporation can insure a small hunting cabin against property damage with which type of policy?
• What is the main purpose of Equipment Breakdown coverage?
• What type of insurance policy did Christine have when her spinach field was partially destroyed by fire?
• What type of coverage could protect a business from financial loss associated with accepting a fake bill?
• Which item would NOT be covered under Coverage A of the Building and Personal Property Coverage Form in Jenny's commercial property policy after a fire loss?
• Which of the following is an example of a risk management technique?
• What is the primary responsibility of an insurance adjuster to the claimant?
• Sherrie has a standard HO-3 policy with a dwelling limit of $150,000. How much coverage is available for her damaged fence?
• How is the adjuster's authority to bind an agreement conveyed?
• Which of the following best describes a Fraternal Benefit Society?
• Under the Pair and Set provision of her Personal Articles Floater, what should Melanie receive from her insurer after breaking one vase?
• Which type of additional coverage would indemnify a business for lost income during repairs after damage?
• In which section of an insurance policy might you find the statement about reporting damage to property?
• What is typically a consequence of committing a moral hazard?
• In the context of insurance, what does liability coverage typically protect against?
• When Cindy and her insurer cannot agree on a property claim after prolonged negotiation, what should they consider next?
• What is the definition of strict liability in insurance?
• What might be a potential implication of having limited liability coverage like Kelly?
• What does ACV stand for in relation to property loss?
• Which term best describes the process by which covered losses are paid under Equipment Breakdown protection?
• In the Standard Fire Policy, what examples fall under "intentional losses"?
• Which of the following is typically excluded from coverage in a property insurance policy?
• What requirement does Ken NOT need to fulfill to qualify for certification to adjust large commercial claims for the NFIP?
• Which type of liability insurance does Logan need for his small plane since he does not take passengers?
• What type of insurance can protect a farmer from liability caused by waste runoff into a river?
• What could be an effective negotiation technique for an adjuster?
• What might affect the eligibility of a farmer's claim under a crop insurance policy?
• In a contract where only one party is legally obligated to perform, this type of contract is known as?
• Which situation typically exemplifies a third-party claim?
• During a claim, what is the expected response from an insurer regarding damage caused by theft?
• Which part of an Auto Insurance Policy would pay for repairs after an accident caused by D'Anton spilling coffee in his lap?
• What type of claim will Flora file after damaging Cam's billboard?
• What type of damages did Ricky receive for his paralysis in his lawsuit against XYZ Stadium?
• What principle does Greg violate by ordering a $3,200 trombone while his insurance pays for a $400 trombone?
• An insurer that adheres to the law of a state but is located outside of that state is called a?
• Which statement about Crop-Hail insurance is FALSE?
• What does replacement cost valuation primarily emphasize in insurance policies?
• How much additional indemnification may Melanie receive after a fire loss with repairs totaling $79,500?
• What consequence does Janet face due to her inaction regarding her property?
• Why is it important for policyholders to mitigate damages to their property?
• What type of clause do insurers insert to protect themselves from covering pre-existing conditions?
• In the event of an accident causing $25,000 in medical costs for five passengers, how much will Kelly pay out of pocket with liability limits of 50/100/50?
• A legal requirement that an insured must disclose all material facts to the insurer is known as?
• What does the term 'insurance premium' refer to in an insurance policy?
• Which of the following items would generally be covered under Coverage A in a typical commercial property policy?
• What type of insurance does Farmer Bob need to sell his lettuce to a wholesaler after an illness incident?
• What amount will Kelly need to pay out of pocket if her liability coverage limits are 50/100/50?
• When an insurer evaluates a risk and sets a premium accordingly, which concept are they applying?
• Which of the following parties is typically NOT involved in a surety bond?
• Why does the insurance company classify hazardous roads as physical hazards?
• In a scenario where Jim has two insurance policies (Policy X being primary and Policy Z being excess), how will they respond if Jim suffers a loss of $62,000?
• What is an essential skill for an adjuster to possess during negotiations?
• What are general damages in a liability case?
• Under valuable papers business insurance, which of the following would NOT be covered?
• Which coverage symbol pertains specifically to rental cars on a Business Auto Policy?
• Which statement accurately describes the principle of estoppel?
• What type of policy requires claims to be reported during a specific time period for coverage?
• What type of Inland Marine insurance policy should Anna's Rare Books buy to cover a shipment of valuable books?
• What does "MPCI" stand for in agricultural insurance?
• Which endorsement should Monica add to her homeowners policy for her jewelry collection?
• What type of policy is Bill using to insure his new home during construction?
• Mark has an ocean marine insurance policy for varying cargo. How is his cargo coverage written?
• Who is responsible for maintaining the claim file throughout the claims process?
• Which statement regarding Personal Article Floaters is FALSE?
• Which statement about the Federal Employees Compensation Act is TRUE?
• What was the primary reason for Janet's insurance claim denial?
• What does the "Consent to Settle" clause in Dr. Adams's Professional Liability policy state?
• What does an exclusion in an insurance policy signify?
• When two parties reach an impasse during negotiations, what can be a beneficial approach?
• What is NOT true regarding endorsements in property insurance policies?
• What is the primary purpose of workers' compensation insurance?
• What was a valid reason for denying Ron’s Mechanical Breakdown Insurance claim?
• When can a claim be considered a liability claim according to insurance practices?
• Which of the following is an example of a hazard?
• Which of the following is an exclusion in a Commercial Crime policy?
• Under the Longshore and Harbor Workers' Compensation Act, how much would the surviving spouse of a deceased worker receive in benefits?
• What is an example of a peril that may be covered under a Crop-Hail insurance policy?
• Which of the following would NOT qualify as an "injury" under workers' compensation insurance?
• Which losses would typically lead to no payment under a property insurance claim?
• In what circumstance would a policyholder benefit most from replacement cost coverage?
• What type of loss would the rental car expense be considered after Jonathan's accident?
• What is needed to set a yield guarantee for Maren's insurance policy?
• Which coverage would assist a business owner in paying for a temporary rental after property damage?
• Which of the following is a defined hazard?
• In a commercial property insurance, Extra Expense Coverage is designed to cover what type of costs?
• What type of insurance coverage limits did Kelly have after the accident?
• If a claimant has a history of similar claims, what could this indicate to an adjuster?
• Which statement about the Standard Fire Policy is TRUE?
• What does personal injury protection (PIP) coverage provide in a garage policy?
• What must an insurance adjuster provide after inspecting a crop for a claim?
• Which of the following events would trigger coverage under a typical Business Owners Policy?