AANP FNP Questions With Complete Solutions
."Experience rating" provides employers with the incentive to: - ANSWER-Prioritize safety and control hazards in the workplace.
.A claim is being litigated in court by Michael on behalf of Janet who was physically injured by a negligent party. Micha...
."Experience rating" provides employers with the incentive to: - ANSWER-Prioritize safety and control hazards
in the workplace.
.A claim is being litigated in court by Michael on behalf of Janet who was physically injured by a negligent party.
Michael asks Janet to show the court her disfiguring scars. Which of the following types of evidence is Janet
presenting to the court? - ANSWER-Real evidence.
.A claim is made on an excess liability policy. It is discovered during the claims investigation, that the underlying
liability policy and the excess liability policy have different inception and expiration dates. The adjuster finds
that the different dates has created a situation where the underlying policy was not in effect at the time of the
occurrence, and therefore cannot trigger the excess liability policy to pay the claim. This situation is known as: -
ANSWER-Nonconcurrency.
.A Commercial Package Policy (CPP) always includes:I. A single Declarations page common to all coverages.II. A
single Conditions section common to all coverages.III. A single Exclusions section common to all coverages. -
ANSWER-I and II only
.A Commercial Property policy has the "Protective Safeguards endorsement attached indicating that the
insured has protective safeguards installed such as a sprinkler system. Should the system become inoperative,
how long does the insured have to report this fact to the insurer? - ANSWER-48 hours.
.A company that repairs customers' aircraft may need which of the following coverages to pay for the
accidental damage to the customers' aircraft while it is in the insured's care, custody, or control? - ANSWER-
Hangarkeeper's liability coverage.
.A contractor in need of a bid bond to obtain a contract is an example of a(n): - ANSWER-Principal.
.A contractor's bid bond is used: - ANSWER-As a promise from the surety that if the principal is awarded the
contract, the principal will enter into the contract for the bid amount and provide required performance bonds.
,.A dead tree beside Jerry's home is best described as which of the following types of hazards? - ANSWER-
Physical hazard.
.A deductible applies to all of the following additional coverages under the standard Homeowners forms,
EXCEPT: - ANSWER-Fire Department Service Charge.
.A gas line explodes outside of Mindy's Mending Shop, ruining her new landscaping. Which coverage extension
of Mindy's Commercial Property policy would cover the cost of replacing the damaged trees and shrubs? -
ANSWER-"Outdoor Property".
.A home is insured under an HO-3 policy. One of the "other structures" on the same property is used by the
insured for his business. The building burns in a fire. It would: - ANSWER-Not be covered because buildings
used for business purposes are excluded..
.A loss reserving method that establishes aggregate reserves for all claims for a single line of insurance is
known as: - ANSWER-Loss ratio method.
.A new home that cost $500,000 to build, would need which of the following coverage amounts under a
Homeowners policy for the insured to receive full replacement cost coverage in the event of a $50,000 fire
loss? - ANSWER-$400,000.
.A non-waiver agreement allows the insurer to: - ANSWER-Investigate a loss without implying that it is covered
.A requirement that a plaintiff file a lawsuit within a specific period of time after the cause of the lawsuit has
occurred, which is oftentimes when the injury occurred or was discovered is known as: - ANSWER-The statute
of limitations.
.A ship has suffered damage and sunk. Which of the following would respond to cover the loss of the ship? -
ANSWER-Hull Insurance.
,.A structure made of modified fire resistive materials has a fire resistive rating of: - ANSWER-At least 1 hour.
.A surety bond is: - ANSWER-A form of credit.
.A Texas adjuster may be subjected to a criminal penalty for all of the following, EXCEPT: - ANSWER-Not paying
court mandated child support.
.A Texas employer who chooses NOT to provide workers' compensation coverage:I. Loses civil immunity.II. May
be sued for damages when an employee is injured in the of employment.III. Will have to pay a fee of $500. -
ANSWER-I and II only
.A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim must be paid not later
than the ____ business day after the date notice is made. - ANSWER-5th
.A type of insurance that permits an insured to collect from his/her own insurance company, without proving
the negligence of a third-party, is known as: - ANSWER-No-fault.
.Acme Corp. requested three bids from different contractors for the construction of its new office building.
Acme accepted the lowest bid from Corbett's Contracting and entered into a contract to have the office
building constructed. After construction was completed, Corbett's presented Acme with a bill for construction
costs over and above the amount of the bid that was agreed to in the contract. Which of the following types of
bonds would protect Acme from paying the additional costs? - ANSWER-A performance bond.
.Adele Sullivan's car is hit from the rear by Clarence Brown's car. Mrs. Sullivan's insurance company pays her
claim under her physical damage coverage and makes a claim against Mr. Brown's insurance company for the
same amount. This process is called: - ANSWER-Subrogation
.Adjusters in Texas must complete at least _____ of the continuing education required to renew their license in
a classroom or classroom equivalent setting - ANSWER-50%
.After completing an inspection of an insured's pressure equipment and fire suppression systems, the inspector
determines that the pressure equipment needs to be repaired and the suppression systems have not been
, cleaned and inspected in the time frame required by the policy. The insurer will: - ANSWER-Suspend coverage
immediately by red tagging the items until they are repaired, cleaned and pass reinspection
.Aircraft liability coverage is very similar to auto insurance coverage with which of following exceptions? -
ANSWER-Liability to passengers is treated as a separate exposure.
.Alec goes to an amusement park and rides a roller coaster that was designed to flip the riders upside down.
Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After
receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills,
pain and suffering. What defense against negligence would the amusement park most likely use to deny this
claim? - ANSWER-Assumption of risk
.All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - ANSWER-Pirates
.All of the following are a "cause of loss" form, EXCEPT: - ANSWER-Comprehensive.
.All of the following are characteristics of a principal that a surety will scrutinize during the underwriting
process, EXCEPT: - ANSWER-Consideration.
.All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto
policy, EXCEPT: - ANSWER-When the Part A limits are exhausted, any limits for Uninsured Motorists coverage
can be used to pay the entire claim..
.All of the following are criteria for an accident to have occurred "in the course of" the employment under a
workers' compensation policy, EXCEPT: - ANSWER-While performing a task that a fellow worker requested, that
was unusual to the employee's job description, but occurred on the employer's premises during working hours.
.All of the following are duties of the insured after a loss, EXCEPT: - ANSWER-To provide the insurer with the
amount they expect to be paid for the claim submitted.
.All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT: -
ANSWER-To pay amounts to the insured or a third-party claimant that are at least as high as the national
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