MS Adjuster License Actual Exam Update
2024-2025 | MS Adjuster License Exam
Latest 2024 Questions and Correct
Answers Rated A+
Jerome was shopping at ABC Imports when a light fixture fell from the
ceiling and hit him on the head. Jerome's injuries resulted in an extended
hospital stay, so he sued ABC Imports and was awarded $400,000.
Assuming ABC Imports carries a CGL with a General Aggregate of
$750,000 and a per occurrence limit of $250,000, what is the maximum that
ABC's insurer will pay for Jerome's injuries? -ANSWER-$250,000
Strict Liability: -ANSWER-holds a person liable for his actions regardless of
how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and
finishes it in good time. Unfortunately, as Wendy is walking across the
threshold of the new addition, a floorboard gives way and Wendy falls into
the crawl-space below, injuring her leg and back. Which commercial
general liability coverage could help cover the cost of Wendy's injuries? -
ANSWER-Completed Operations Liability
In which case would the insured be indemnified by her auto liability
coverage? -ANSWER-NOT: None; liability coverage never indemnifies the
insured. OR she causes property damage to her neighbor
Lucille owns her own woodworking business, building custom items such
as dressers, wooden trunks, and mantelpieces. A fire destroys her entire
operation and Lucille files a claim with her insurer. Which of the following
would be covered under Coverage A of the Building and Personal Property
Coverage Form in her commercial property policy? -ANSWER-A bandsaw
permanently affixed to the floor
,In which of these situations could a Mississippi insurer cancel a policy after
60 days with sufficient notice? -ANSWER-The policyholder's son has his
license suspended during the policy period.
Bonnie's PAP includes Comprehensive coverage. Which of the following
losses could this coverage pay for? -ANSWER-Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her
uninsured car into Sam's. Sam's own insurance company, ABC Insurance,
immediately pays him $5,000 for his injuries. Sam then ponders whether to
file a $6,000 lawsuit against Nicole. Why can't Sam sue Nicole for the full
amount of his injuries? -ANSWER-By accepting payment from ABC
Insurance, Sam subrogated a portion of his rights against Nicole to ABC
Insurance.
In order to be a licensed adjuster, a person must be at least ____ years
old. -ANSWER-18
Grant works at ABC Convenience. One day, a man pulls up in an
expensive car and pays cash for his gas with a hundred dollar bill. Grant
accepts the bill without checking its validity. When Grant's manager checks
the bill later, he discovers it is a fake. Which commercial crime coverage
could protect ABC Convenience from financial loss associated with
accepting the fake hundred dollar bill? -ANSWER-Money orders and
counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an
alternative to the state workers' comp fund are called: -ANSWER-
competitive
The Employee Retirement Income Security Act (ERISA): -ANSWER-
requires that every fiduciary of an employee benefit plan and every person
who handles funds or other property of those plans must be bonded
,Bill lives in Mississippi and has the minimum auto liability coverage
required for the state. He causes an accident that results in $35,000 in
property damage and $50,000 in bodily injury to another person. How much
will Bill have to pay out of pocket for this accident? -ANSWER-$10,000 in
property damage and $25,000 in medical expense
Which of the following statements regarding scheduled fidelity bonds is
FALSE? -ANSWER-All employees are bonded for the same aggregate
amount.
D'Anton spills coffee in his lap while driving, causing him to veer off the
road and smash into a telephone pole. Which part of his Auto Insurance
Policy will help him pay for the repairs to his car? -ANSWER-Collision
coverage
If an insurer decides to cancel a personal auto policy (for a reason other
than non-payment of premiums) after the policy has been in effect for 60
days, the insurer must provide written notice to the insured __________ in
advance. -ANSWER-30 days
Acme Construction, Inc. has one contractor and one receptionist. The
contractor makes $25/hr, and the receptionist makes $10/hr. The contractor
worked exactly 8 hours in 2010, so he made $200. The receptionist worked
10 hours, so she made $100. Therefore, Acme's entire payroll for 2010 was
$300. Assume that, for every $100 of payroll, the WC rate for contractors is
$50 and the rate for receptionists is $5. How much did Acme owe in WC
premiums? -ANSWER-$105
During a routine tooth extraction, Dr. Dentem administers too much
laughing gas and causes brain damage to his client. The family sues Dr.
Dentem for failing to follow procedure. Which kind of insurance would cover
the cost of the lawsuit? -ANSWER-Malpractice insurance
Sally has an HO-3 policy on her $150,000 home in the country. One day, a
bear breaks down Sally's back door to get into her kitchen for a snack.
, When Sally comes home to find the damage, she files a claim with her
insurance company. Will the damage to Sally's home be covered, and why
or why not? -ANSWER-Yes. The HO-3 is an open peril policy, without
exclusion for wildlife.
Which of the following is similar to a Business Auto Policy, but adds several
policy provisions and protections specific to the trucking industry? -
ANSWER-NOT: Trip Transit policy
Which of the following is NOT one of the requirements that adjusters must
meet in order to handle NFIP claims? -ANSWER-NOT: have at least four
consecutive years of adjusting experience OR Inform claimants that only
the NFIP Servicing Agent or WYO company can make a final decision on
their claim
Which of the following insurers is NOT committing an unfair trade practice.
-ANSWER-ACME Insurance is giving stock options to agents who exceed
their sales quotas
ABC Insurance has a deal with Sunset Realty in which ABC compensates
Sunset for requiring all home buyers purchase their homeowners insurance
from ABC -ANSWER-an "object"
Which of the following is an example of a moral hazard? -ANSWER-Ken
lights a candle, sets it right next to the window draperies and leaves the
house to go to work
In which section of an insurance policy might you find the following
statement? "'We, us, and our' refers to ABC Insurance company." -
ANSWER-Definitions
If the Commissioner has reason to believe that a person or company is
engaging in an unfair trade practice, he must give the person at least ____
notice before holding a hearing to review the case. -ANSWER-10 days
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