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New Mexico Adjuster Practice Exam/LATEST
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an insurance contract, the policyholder gives the insurer and the insurer gives the policyholder. - ✔✔premium payments; peace of mind Which of the following people does NOT have an insurable interest in an insured property? - ✔✔A homeowner's interest in the local town water pipes that deliver water to his home. In the event of a catastrophe, emergency adjuster licenses in New Mexico are valid for: - ✔✔ 90 days. Cindy falls down the stairs at Jane's house and breaks her arm, resulting in $2,500 in medical expenses. Jane's homeowner's insurance will cover the liability, but Cindy is particularly mad at Jane for not keeping her house in order and is seeking punitive damages. Jane's insurance adjuster informs the two of them that they will likely have to go to court to settle the dispute because: - ✔✔punitive damages can only be determined by a court of law. Under Jacqueline's Personal Injury Protection, all of the following would be covered for bodily injuries except: - ✔✔Jacqueline's sister who also has PIP Jason has had mild asthma since childhood. He now works in a chemical processing plant, and his asthma has gotten much worse ever since he contracted pneumonia because of the fumes at the plant. For workers' compensation insurance, this is usually known as: - ✔✔aggravation. Jane's shed burns to the ground during a tornado, when a tree falls on the roof and snaps a power line, which then ignites the structure. What is the proximate cause of the loss? -
✔✔Wind
Caitlin works as a driver for a local oil company. She picks up the field workers and drops them at the wellsite. Then, once their shift is completed she brings them home again using the company van. Which endorsement provides the best coverage for Caitlin? - ✔✔Extended Non- Owner What type of commercial auto policy would best suit a taxi company? - ✔✔Motor Carrier policy Lillian owns an antiques shop and Sandy works part time for her. One afternoon, while Sandy is decorating the window display, she loses her balance and falls backward off a step stool, breaking some very expensive lamps in the process. What policy condition in Lillian's commercial property policy provides evidence that this loss may be covered? - ✔✔Control of Property Reservation of Rights letter is sent by: - ✔✔the insurer to the claimant. In a third-party claim, the injured person has a duty to: - ✔✔authorize the insurer to examine her medical records. All of the insurance professionals below are in danger of having their licenses suspended or revoked, except: - ✔✔Arlene, who received a $175 traffic ticket after running a stop sign. A policyholder who does not currently have Comprehensive Coverage, but would like to add it to a newly purchased vehicle, must notify the insurer within: - ✔✔ 4 days
Cheney owns a construction company in New Mexico. How many employees does Cheney have to have in order to be required by law to purchase workers' compensation coverage for them? - ✔✔ 1 While reviewing a homeowners policy, you may find all of the following listed as an insured's duty after a loss, EXCEPT: - ✔✔provide the insurer with a loss estimate from an appraiser. Which of the following is NOT an endorsement commonly added to a Dwelling Policy? - ✔✔Annual Depreciation Lawrence is 24, but he gives his age as 26 on his car insurance application because he hopes this will get him a better rate. Lawrence's actions could best be described as - ✔✔misrepresentation. Simon just bought his first home-a cheap fixer-upper in a town where average snowfall exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he still wants to protect his initial investment. What is the cheapest policy option that would protect Simon's financial interest in his home, even in the brutal winters? - ✔✔HO- 2 For the purposes of workers' compensation insurance, an employee's Average Weekly Wage is determined by averaging the employee's pay in the weeks leading up to the injury. - ✔✔ 26 Which of the following situations does NOT involve misrepresentation? - ✔✔Atticus manages an insurance agency and posts the salespeoples' numbers publicly each month, to promote competition. What does it mean when we say that an adjuster has the "power to bind"? - ✔✔The principal is bound to the decisions the adjuster makes.
somehow stolen, his Jim is completely "upside down" financially on his car. He owes the finance company $8,000. If he sells the steal the car and "make it disappear." Jim then files a claim with his insurance company to report his car stolen. Which best represents Jim's actions? - ✔✔Hard fraud In each of the following, the insured has filed a claim against their homeowners policy. In which of these scenarios would the insurer most likely deny the claim? A. Stephen is unable to provide pictures of his personal items that were destroyed in his house fire, but he is able to provide a list and descriptions for the adjuster. B. Susan can't make it home from work to meet an adjuster at her house (which was damaged by a recent hailstorm), but gives the adjuster permission to inspect the property in her absence C. Darla files a claim when her estranged husband sets fire to her back deck, but she doesn't Your AnswerV notify the police for fear of getting her husband in trouble. D. The insurer sends David a Proof of Loss form for him to complete in conjunction with his theft claim, and it takes him 25 days to return the completed form to his insurer - ✔✔Darla files a claim when her estranged husband sets fire to her back deck, but she doesn't notify the police for fear of getting her husband in trouble. An adjuster must make several important decisions during the adjusting process. All of these are examples of such decisions, EXCEPT: A. Linda must determine if Lyle was intoxicated when the car he was driving was side-swiped by Jeffery. B. Becca must determine if the marks on Shellie's roof were caused by a hammer or by hail. C. Steve must determine the water damage in Monica's bathroom is recent or pre-existing.
D. Stacy must determine how much of a limit for Coverage A would best fit John's needs in his Your new homeowners policy. - ✔✔D. Stacy must determine how much of a limit for Coverage A would best fit John's needs in his Your Answer new homeowners policy. Which of the following is NOT one of the unfair claims settlement practices specifically prohibited by New Mexico law? A. Not attempting in good faith to bring about a prompt, fair claim settlement when liability is reasonably clear B. Knowingly misrepresenting pertinent facts or policy provisions to a claimant C. Failing to promptly acknowledge communications about a claim D. Failing to pay a claim settlement within 5 business days of receiving a proof of loss - ✔✔D. Failing to pay a claim settlement within 5 business days of receiving a proof of loss Tom purchases a new car from his local car dealer. He also decides to get insurance coverage that will pay to repair the car if he were to get into an accident. This is because Tom wants to protect: - ✔✔his own financial interest in the car. In order to be considered "fully insured" at 80% or more, Richard must carry at least $240, in insurance coverage on his home. What is the value of Richard's home? - ✔✔$300, A Commercial Package Policy has: - ✔✔one Declarations page, applicable to every line of insurance in the policy. Nick's home suffered major damage during a tornado. His contractor says it will cost $85,000 to complete repairs, but the adjuster's estimate gives a total of $63,000. Nick and his insurer have tried to reach an agreement, but have failed to do so. Neither party wants to go to court, but they do want to enlist the help of a neutral third party to make a legally binding decision and resolve this matter. Which of the following is the best option in this case? - ✔✔Arbitration
