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Insurance Adjusting- LA Test| Questions and Answers Verified 100%
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Insurance Adjusting- LA Test| Questions and Answers Verified 100%
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Insurance Adjusting- LA Test| Questions andAnswers Verified 100%
When the state issues a mandatory evacuation order due to a hurricane, Kimberly is forced to
leave her home. The hurricane causes a lot of damage, but Kimberly's house is spared. Three
weeks later, when Kimberly is finally allowed to return to her home, she files a claim against her
homeowners policy for her increased living expenses. Will it be accepted? - ✔✔Civil
Authority coverage will pay the insured's Additional Living Expenses for up to two weeks if the
insured had to leave the home because of an order by civil authority. Kimberly's policy will pay
her for two of the three weeks that she was out of her home.
Orlando's house was fully insured when it was completely destroyed by a tornado. All that's left
is a huge pile of debris and a $167,000 mortgage balance. Orlando files a claim against his DP-3
with a $220,000 limit. Normally, the cost of debris removal is subject to the policy limit, but
Orlando's total costs exceed his limit. Once all cleanup and repairs are completed, what is the
maximum indemnification the insurer could end up paying for the dwelling and debris removal?
- ✔✔Debris Removal coverage can pay up to an additional 5% of the coverage limit, when
needed. Since Orlando's Coverage A losses exceeded his policy limit, his policy can pay up to
$11,000 (since this is 5% of $220,000) over and above that limit for the cost of removing the
debris of Coverage A property.
A basic DP-1 dwelling policy offers ___________ coverage and ___________ valuations. -
✔✔A basic dwelling policy offers named-peril coverage and actual cash value valuations.
Which of the following is NOT an endorsement commonly added to a Dwelling Policy? -
✔✔Annual Depreciation
In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement: - ✔✔add
coverage for motorcycles and motor homes.
, In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of the
following vehicles, EXCEPT: - ✔✔A trailer can be "your covered auto" if the insured owns it,
but not if it is borrowed.
All drivers in Louisiana must carry liability coverage of at least ______ and Bodily Injury
UM/UIM coverage of at least ______, unless the insured rejects UM/UIM coverage in writing. -
✔✔15/30/25; 15/30
Under which circumstances may a Louisiana insurer cancel a policy after 60 days with sufficient
notice? - ✔✔C. If the policyholder's 17-year-old son has his license suspended during the
policy period.
Judy has applied for an auto liability policy to cover her two cars for up to 100/300/100. Which
of the following statements is TRUE? - ✔✔Judy's insurer must offer her UM coverage at the
same limits as her liability coverage, which are 100/300. However, she may choose to buy lower
limits (as low as 15/30) or reject the coverage altogether in writing.
Gabe owns Dream Fresh, a frozen yogurt manufacturer. One day, a refrigeration unit ruptures
and sprays refrigerant throughout the Dream Fresh plant. Because of this accident, an
employee blinded by refrigerant needs $1,000 in medical treatment, a $3,000 batch of frozen
yogurt is contaminated and has to be destroyed, the plant loses $10,000 in revenue when it
shuts down during decontamination, and the $15,000 refrigeration unit has to be replaced.
How much of this loss might be covered under Gabe's Time Element insurance? - ✔✔The
$10,000 in lost revenue during the plant's shut-down would be covered under Gabe's Time
Element insurance.
Which of these statements about the Signs Business Floater is FALSE? - ✔✔The Signs
Business Floater does cover signs that belong to other people while in the insured's care.
The Hometown Paint store burns down one night, and almost everything is destroyed. Which of
the following items would NOT be covered under Coverage B in the store's commercial
property policy? - ✔✔Coverage A includes machinery, fixtures, and equipment inside the
building if they are permanently installed and affixed to the building. This means that the paint
mixer that is affixed to the floor would fall under Coverage A, not Coverage B.
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