FREE Insurance Adjuster Questions and Answers

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A technique used to reduce small claims and assist in lowering insurance premiums is:

Correct! Wrong!

A deductible is a device insurance companies use to minimize small claims and help keep insurance premiums down. A deductible is an amount the policyholder agrees to pay out of pocket before the insurance company begins to cover the remaining cost of a covered claim.

Which personal insurance policy provides coverage for both personal liability and personal property without an endorsement?

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A homeowner's insurance policy provides coverage for both personal liability and personal property without an endorsement.

Which component of the policy includes the commitments provided by the insurance company to the insured?

Correct! Wrong!

The insuring agreement is a crucial section of an insurance policy that sets out the scope and extent of the coverage provided by the insurance company to the insured. It describes what risks or perils are covered, the limits of coverage, and any specific conditions that must be met for the policy to respond to a claim.

An adjuster can bind the insurer since they are fiduciary agents. Which of the following claims about this power is false?

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The statement "Only an adjuster's written statements can legally bind an insurer" is FALSE regarding an adjuster's power to bind the insurer.

Which of the following coverages pays for damage to a rental car in New York?

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The "Property Damage" coverage in an auto insurance policy pays for damages the insured driver causes to someone else's property, such as another person's vehicle, fence, or building. It also extends to cover damages to a rental car that the insured driver is driving, provided that the insured has the "Property Damage" coverage as part of their auto insurance policy.

What purpose does an adjuster's interim report serve?

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The purpose of an adjuster's interim report is to provide an update on the ongoing status of a claim. The report is typically submitted by the adjuster to the insurance company, and may be provided at regular intervals during the claims process.

What is covered by the employer's non-ownership insurance?

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Employer's non-ownership insurance, also known as non-owned auto liability insurance, provides coverage for businesses when their employees use their personal vehicles for work-related purposes and become involved in an accident that results in bodily injury or property damage to a third party.

Which of the following is the insured's first responsibility following a property loss?

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The first duty of the insured after suffering a property loss is to take steps to protect the property from further loss.

There are several categories of "independent adjusters," EXCEPT:

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A public adjuster is not a type of independent adjuster.

One of the key concepts in the insurance sector is "risk." What does it mean?

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In the insurance industry, "risk" is the possibility of financial loss or other adverse effects resulting from an event or circumstance. More specifically, the risk is the uncertainty of a financial loss that an individual or organization faces and is typically measured in terms of the likelihood of the loss occurring and the potential magnitude of the loss.

Which is not protected by worker's compensation insurance?

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Pain and suffering is generally not covered under worker's compensation insurance. Workers' compensation is a type of insurance that provides benefits to employees who are injured or become ill in the course of their employment.

The failure to respond to correspondence about claims resulting from the insurer's policies within a reasonable amount of time.

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The failure to respond to correspondence about claims resulting from the insurer's policies within a reasonable amount of time can be a violation of the Unfair Claim Settlement Practices Act. Delays in responding to claims, without a reasonable explanation, can be considered a violation of these regulations.

In accordance with the law of large numbers, ______________.

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According to the law of large numbers, there is less uncertainty about how much damage a group will sustain the more similar hazards that are pooled into a single group. An insurance firm can then plan its business on a nonspeculative basis and predict the approximate amount of claims it will get in a particular period for a given risk.

Who can allow a person found guilty of fraud against the Federal Insurance Administration to work in the insurance industry again?

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Typically, the state insurance regulatory official, such as the Superintendent of Insurance or Insurance Commissioner, has the authority to make decisions regarding licensing and disciplinary actions for insurance professionals operating within their state. If someone has been found guilty of fraud against the FIA or any other fraudulent activities related to insurance, their ability to work in the insurance industry may be impacted.

There is a chance of suffering financial loss due to owning property.

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The possibility of financial loss resulting from the ownership of property is not known as insurable interests, but rather as insurable risk.

When may the Insurance Superintendent revoke an adjuster's license?

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The Insurance Superintendent may revoke an adjuster's license after holding a hearing. Due process is an essential aspect of administrative actions, and before revoking an adjuster's license, the individual must have the opportunity to be heard and present their case.

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