AdjusterPRO Final Exam Questions And
Answers
Which of the following statements is true about an insurance policy? It relies on the
utmost good faith of both the insured and the insurer
An insurance policy relies on the utmost good faith of both the insured and the insurer.
Which of the follo...
Which of the following statements is true about an insurance policy? It relies on the
utmost good faith of both the insured and the insurer
An insurance policy relies on the utmost good faith of both the insured and the insurer.
Which of the following would you find in the Conditions section of an insurance policy?
The insured's duty after a loss
In which section of an insurance policy might you find the following statement? "Damage to
insured property must be reported within 15 days of the damaging occurrence."
Conditions
A captive insurance company: exists solely to provide insurance for its parent company.
Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly traded
company, and Cindy can participate in the election of the board, receiving dividends if the
company does well. Sine Nomine Insurance could be best described as a: Sine Nomine
Insurance is a mutual insurance company.
, AdjusterPRO Final Exam Questions And
Answers
When an insurer issues an insurance policy, the actual item, person, or organization that is being
insured is called the: risk.
Which of the following is a hazard? A driver's tendency to text while driving
Which of the following situations does NOT involve an insurable risk? Dale just bought
30 shares of a hot new startup company online.
Which of the following situations does NOT involve an instance of "pure risk?" Loss of
money invested in the stock market
Which of the following is an insurable risk? football stadium
Risk avoidance is a risk management technique that: eliminates risk.
Amy needs more floor space in her antique furniture store, so she buys a storage building 3 miles
away. She is worried about keeping the furniture in the storage building safe, so she puts in an
, AdjusterPRO Final Exam Questions And
Answers
alarm system and smoke detectors. By purchasing the alarm system and smoke detectors, Amy is
practicing: risk reduction.
Six Stars Development Company has just been offered a great deal on ten large properties in Las
Vegas. The economy in Las Vegas has been declining recently, but the CEO of Six Stars expects
it to recover soon. This could be an exceptional opportunity for Six Stars, but it's also pretty
risky. Ultimately, the Six Stars executive team decides not to purchase the properties. This is an
example of: risk avoidance.
Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30 days
late. However, Jason is currently more than 30 days late, and has been so five times in the last
year, and his insurer has done nothing about it. When Jason gets into an accident and files a
claim, which of the following is most likely to happen? An implied waiver is one that is
assumed based on someone's actions. When the insurer decided to accept Jason's late premium
payments, it implied that it was waiving its right to cancel Jason's policy because of a late
payment. So, when Jason files a claim, the insurer may not claim that his policy is void due to
late payments.
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