Claims Adjuster Test State Laws and Regulations Questions and Answers

Question 1

In a state that follows the "comparative negligence" doctrine, a claimant is found to be 20% at fault for an accident that caused them $100,000 in damages.
How will this assessment of fault typically affect the claimant's recovery?

Accepted Answer

The claimant's recovery will be reduced by 20% to $80,000.

Answer

The claimant will be barred from recovering any damages.

Answer

The claimant will recover the full $100,000 as they were not the primary cause.

Answer

The claimant's recovery will be reduced by 50% regardless of their actual fault percentage.

Question 2

Most states have adopted a version of the NAIC's Unfair Claims Settlement Practices Act. Which of the following is considered an unfair claims practice under this model act?

Accepted Answer

Failing to acknowledge pertinent communications regarding a claim with reasonable promptness.

Answer

Requesting a formal proof of loss form to verify claim details.

Answer

Denying a claim after a reasonable investigation has been completed.

Answer

Offering a settlement that is identical to the amount ultimately recovered in a lawsuit.

Question 3

An adjuster working for an insurance company is sent to evaluate a policyholder's property damage claim. This adjuster is not a salaried employee of the insurer but is contracted for this specific assignment. What type of adjuster is this?

Accepted Answer

Independent Adjuster

Answer

Public Adjuster

Answer

Staff Adjuster

Answer

Emergency Adjuster

Question 4

A vehicle has been damaged to the extent that the insurer declares it a total loss and takes possession of it after paying the claim. State law requires the vehicle's title to be changed to reflect this status. What is this new title typically called?

Accepted Answer

Salvage Title

Answer

Rebuilt Title

Answer

Junk Title

Answer

Clear Title

Question 5

Most states require licensed insurance adjusters to complete a specific number of continuing education (CE) hours to maintain their license. What is the most common biennial (two-year) requirement for CE hours?

Accepted Answer

24 hours, with 3 hours in ethics

Answer

12 hours, with 1 hour in ethics

Answer

30 hours, with 5 hours in ethics

Answer

40 hours, with no ethics requirement

Question 6

According to the California Fair Claims Settlement Practices Regulations, what is the maximum time an insurer has to accept or deny a claim after receiving all necessary documentation?

Accepted Answer

40 calendar days

Answer

15 calendar days

Answer

21 working days

Answer

30 calendar days

In a state that follows the "comparative negligence" doctrine, a claimant is found to be 20% at fault for an accident that caused them $100,000 in damages.How will this assessment of fault typically affect the claimant's recovery?

In a state that follows the "comparative negligence" doctrine, a claimant is found to be 20% at fault for an accident that caused them $100,000 in damages.
How will this assessment of fault typically affect the claimant's recovery?