©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
MS adjuster license Exam Questions With
Correct Answers
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
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10/30/2024 10:31 PM
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
, ©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
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
Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the
following would be a reason this policy may not be legally binding? - answer✔NOT: Bobby has
an outstanding warrant for selling marijuana
Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a
strong rain, some of the waste washes into a nearby river. Which insurance coverage can protect
Scott from any liability caused by the goat waste runoff? - answer✔Farm pollution liability
, ©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
John moved out of his house and put it up for sale three months ago. While he was waiting for
the house to sell, John's plumbing pipes froze and burst in the icy temperatures, which eventually
led to water damaging the cabinetry and hardwood floors. Which of the following statements
would most likely be TRUE? - answer✔NOT: Bc John's house was still covered under an HO-3,
the damage would be covered.
Which of the following is found in the declarations page of an insurance policy? - answer✔The
name of the insured party.
Under the Longshore and Harbor Workers' Compensation Act, how much would the surviving
spouse of a deceased worker receive in benefits? - answer✔50% of the deceased worker's
average weekly wage
Phil runs a locomotive repair business, which is insured under a commercial property policy.
One night, some blasting powder is accidentally ignited and blows a crowbar through one of the
engines. No one is hurt, but the locomotive is severely damaged. Which coverage option may
help cover the cost of repairing the engine from this unfortunate event? - answer✔Legal liability
coverage
Which of the following insurance protections is NOT offered by a garagekeeper's insurance
policy? - answer✔NOT: Specific causes of loss OR Comprehensive coverage
Carmen was making $450 per week working in a mitten factory until she lost her thumb in a
work-related accident. Her Workers' Compensation benefits will pay _____ per week for _____
weeks. - answer✔$300; 60
Making false or misleading statements about a policy's terms or benefits is unfair and
considered: - answer✔misrepresentation
Randy owns a clothing store. One day, he notices a shady character with a backpack who is
hanging around acting nervous. Randy becomes suspicious and approaches the young man. As
the boy makes an effort to avoid him, Randy grabs his arm and detains him until the police
arrive. Not finding any stolen merchandise, the police let the boy go. Two weeks later Randy is
notified that he will be sued for violation of the young man's civil rights. This is an example of
what type of personal injury covered under Randy's Commercial General Liability policy? -
answer✔False Arrest, Detention, or Imprisonment
After a tornado severely damaged their building, the owners of ABC Online Marketing have to
rent another building for a few months while repairs are underway. Which additional coverage
would help cover the cost of renting this other building? - answer✔NOT: additional covered
property endorsement OR Fixed cost insurance
