Louisiana Adjuster Correct Questions &
Answers(2024 Latest Update)Correct
100%
The coverage territory of the Business Auto form provides for "worldwide liability
coverage" for private passenger autos that the insured:
a) Hires, leases, rents or borrows without a driver while outside the United States, its
territories and possessions.
b) Purchases while outside the United States, its territories and possessions.
c) Sells while outside the United States, its territories and possessions.
d) Occupies while outside the United States, its territories and possessions. - ANSWER
Hires, leases, rents or borrows without a driver while outside the United States, its
territories and possessions..
Which of the following dwelling types would be eligible for the Limited Theft coverage
endorsement to their Dwelling policy? - ANSWER A nonowner-occupied one-family
dwelling.
Which of the following shows a correct sequence of activities for an adjuster when
negotiating a claim? - ANSWER Acknowledging the claim, then opening a line of
communication with the insured or claimant..
A slippery floor is an example of: - ANSWER A physical hazard.
An insured suffers a partial fire loss to his residence. Under an HO-3 policy what
insuring agreement is available to pay for temporary, alternate living quarters? -
ANSWER Coverage D
Which of the following is the BEST explanation as to the reason insurance policies are
called "unilateral contracts"? - ANSWER Because the insurance company is the only
party to the contract that can be sued if they do not meet the terms..
Which of the following terms means "liability through another person"? - ANSWER
Vicarious/Imputed liability
All of the following are duties of the insured after a loss, EXCEPT:
Answer Choices:Select the Correct Answer
,a) Promptly hiring a public adjuster to assist in presenting the claim to the insurance
company.
b) Promptly reporting the loss to the insurer.
c) Cooperating with the insurer in the investigation of the claim by providing the
information requested by the adjuster.
d) Submitting to an examination under oath (EUO) if requested by the insurer. -
ANSWER Promptly hiring a public adjuster to assist in presenting the claim to the
insurance company
The "liberalization clause" of an insurance policy:
a) States that if an insurer decides to broaden its standard policy coverages, then all
outstanding policies issued prior to that decision will automatically receive those new
coverages at no additional premium.
b) States that the insurer retains the right to suspend or cancel the policy at any time
during the policy period.
c) States that if a mortgage company liberalizes its loan agreement with the named
insured, the insurer must be sent the revised wording within 60 days.
d) States that if the insurer broadens its underwriting eligibility requirements, all
previously denied applicants must be notified within 60 days. - ANSWER States that if
an insurer decides to broaden its standard policy coverages, then all outstanding
policies issued prior to that decision will automatically receive those new coverages at
no additional premium.
When an insurer files a declaratory judgement action with a court of law, all of the
following questions will be resolved by the court, EXCEPT:
A) Will the insurer become insolvent if they pay the claim as submitted by the insured?
B) Does the insuring agreement within the policy actually provide coverage for the loss
claimed?
C) Is there another insurance policy that would be liable to pay part of the claim?
D) Has the insured violated any policy condition that would void the coverage provided
by the policy? - ANSWER Will the insurer become insolvent if they pay the claim as
submitted by the insured?
Declaratory judgement actions are filed to seek judicial determination of the insurer's
rights and obligations as indicated by the policy provisions, conditions, definitions,
,exclusions, etc. The court would not make a determination regarding the solvency of the
insurance company because the purpose of the action is only to answer questions as to
whether coverage applies, not if the insurer can actually pay the claim.
The Louisiana Commissioner of Insurance may place on probation, suspend, revoke, or
refuse to issue, renew or reinstate a claims adjuster's license or may levy a fine not to
exceed _______ for each violation. - ANSWER $10,000.
Which of the following losses would be covered by the EC peril of "volcanic eruption"
under a standard Dwelling form?
A) The cracks in the ceiling of the dwelling due to the earthquake preceding a volcanic
eruption.
B) The damage to an exterior patio from a large bolder that was dislodged due to an
aftershock.
C) The exterior siding of the dwelling that was ruined by the ash that settled on it from
the erupting volcano.
D) The cracked foundation of the covered dwelling resulting from the earthquake that
caused the volcanic eruption. - ANSWER The exterior siding of the dwelling that was
ruined by the ash that settled on it from the erupting volcano.
The exterior siding would be covered because it was damaged by the ash from the
volcano. All the other answer choices would not be covered because they are
associated with an earthquake.
Jamie has submitted a claim against Ron's insurance policy for a loss he has
legitimately suffered. This claim is a:
A) Third-party property claim.
B) First-party liability claim.
C) Third-party liability claim.
D) First-party property claim. - ANSWER Third-party liability claim
When a "claimant" submits a claim against an "insureds" policy, the claim is a third-party
liability claim (even if the claimant suffered a "property damage loss").
Alex has his SUV covered under a standard Personal Automobile policy. He has
borrowed a trailer from his friend Josh, hitched it to his SUV, and begins moving some
boxes from his house to a new house he recently purchased. After he has unloaded the
trailer, he is driving back to his house and loses control of his vehicle, wrapping Josh's
trailer around a tree. There is no other insurance covering Josh's trailer and Alex's Part
D deductible for "Collision" is $250. His deductible for "Other Than Collision" is $300.
Before the accident, the ACV of the trailer was $2,000. The cost to repair or replace the
, trailer with like kind and quality is $1,800. How much coverage would Alex's policy
provide? - ANSWER $1,500
The policy will pay the LESSER of the ACV or the cost to repair or replace with like kind
and quality. This would be $1,800 minus the "Collision" deductible of $250, which
leaves us with $1,550. However, the Part D limit of liability specifies that no more than
$1,500 will be paid for a non-owned trailer, therefore, the correct answer is $1,500.
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 average of similar claim settlements.
Insurance claim settlement amounts are determined by a policy's limit of liability, not a
national average that is paid on similar claims.
The attempt to restore an insured to his or her previous financial condition before a loss
occurred is BEST described as: - ANSWER Indemnification
All of the following statements regarding the Motor Carrier Act of 1980 are correct,
EXCEPT:
A) The Act requires truckers to certify that they are able to meet financial obligations
arising from physical damage to nonowned trailers being used under a written Trailer
Interchange agreement.
B) The Act requires truckers to certify that they are able to meet financial obligations
arising from liabilities of their trucking operations.
C) The Act deregulated the commercial trucking industry.
D) The Act requires that the MCS-90 endorsement be attached to a Truckers policy to
demonstrate proof of financial responsibility for liabilities arising from their trucking
operations. - ANSWER The Act requires truckers to certify that they are able to meet
financial obligations arising from physical damage to nonowned trailers being used
under a written Trailer Interchange agreement. is correct.
When the property covered under an insurance policy is destroyed beyond repair and
nothing of value remains, this is known as: - ANSWER Actual total loss.
Which of the following types of property would be covered by Coverage B of a standard,
unendorsed Businessowners policy?
a) An owned automobile.
b) An unscheduled exterior business sign.
