FREE Claims Adjuster Test Claims Investigation and Settlement Questions and Answers

Question 1

An adjuster is investigating a slip-and-fall claim at a grocery store.
The store manager provides a high-quality security camera recording of the incident.
In the context of a claims investigation, what type of evidence is this recording?

Accepted Answer

Digital evidence

Answer

Testimonial evidence

Answer

Circumstantial evidence

Answer

Real evidence

Question 2

Which type of settlement is most commonly used for catastrophic injury claims involving long-term medical care, where payments are made periodically over time rather than in a single lump sum?

Accepted Answer

Structured Settlement

Answer

Full Release Settlement

Answer

Scheduled Payment Release

Answer

Advance Payment Settlement

Question 3

An insurer receives a liability claim where a potential policy exclusion may apply. The insurer needs to begin investigating the facts of the loss immediately but has not yet concluded whether the policy covers the claim. What formal communication should the insurer send to the insured to proceed with the investigation without waiving its right to deny coverage later?

Accepted Answer

A Reservation of Rights Letter

Answer

A Proof of Loss Form

Answer

A Non-Waiver Agreement

Answer

A Coverage Denial Letter

Question 4

In the context of a liability claim settlement, damages awarded for quantifiable, out-of-pocket monetary losses such as medical bills and lost wages are known as:

Accepted Answer

Special Damages

Answer

General Damages

Answer

Punitive Damages

Answer

Statutory Damages

Question 5

During a settlement negotiation for a bodily injury claim, which of the following is an appropriate action for the adjuster?

Accepted Answer

Clearly explain the basis for the settlement valuation and make a reasonable opening offer.

Answer

Immediately offer the policy limit to avoid litigation.

Answer

Refuse to make an offer until the claimant provides a specific demand.

Answer

Make an initial offer that is significantly below the claim's valuation to test the claimant's resolve.

Question 6

An adjuster is preparing to take a recorded statement from a claimant regarding an auto accident. To ensure the statement is conducted professionally and is admissible, which of the following is an essential first step at the very beginning of the recording?

Accepted Answer

State the adjuster's name, the current date, and obtain the claimant's consent to be recorded.

Answer

Ask the claimant to summarize their injuries immediately.

Answer

Request the claimant's full social security number for verification.

Answer

Review the policy's liability limits with the claimant.