Download Rhode Island Adjuster Practice Exam Questions with 100% CorrectAnswers/latest update 2025( and more Exams Insurance Economics in PDF only on Docsity!
Rhode Island Adjuster Practice Exam
Questions with 100% Correct Answers/latest
update 2025(GRADED A+) Guaranteed 100%
pass
Which of the following phrases BEST defines a hazard? A. The uncertainty of a loss B. The cause of a loss C. An unexpected loss D. A condition that increases the chance of a loss - ططD A family takes their 50 - horsepower outboard motor boat to the lake on a trailer towed behind their personal auto. The pleasure boat is appropriately covered for physical damage under which of the following policies? Dwelling Homeowners Boat owners Yacht - ططC Which of the following perils is covered by Broad Form perils but not covered by the Basic Form? Vandalism Weight of ice and snow Riot Sinkhole collapse - ططB
G insures G's television repair shop under a Building and Personal Property Coverage Form with limits of $100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to the building and $20,000 in losses to the contents. G also has to pay $1,000 for debris removal. If the policy has as deductible of $250, G will receive a MAXIMUM of which of the following amounts from the insurer? A. $29, $30, $30, $31,000 - ططC Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form (DP-1) is INCORRECT? A. No act by the insured will jeopardize the mortgagee's rights B. The mortgagee may file a Proof of Loss if the insured fails to do so C. The mortgagee is entitled to receive prior notice of a policy's cancellation D. The mortgagee may abandon the insured property to the insurer. - ططD A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be found in which of the following sections of a Commercial Property policy? Declarations Insuring Agreement Conditions Exclusions - ططB Which of the following businesses would be eligible for a Business owner's policy? A. Auto body shop
Which of the following sources may be used to provide property insurability information? A. Police Records B. Physical inspections C. Checking account statements D. Lie detector tests - ططB Which of the following terms BEST describes continuous and repeated exposure to conditions that are neither expected nor intended by the insured? Negligence Liability Accident Occurrence - ططD In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration a producer must secure from an applicant? A. A signature on a premium finance agreement B. Payment of six months' premium C. Payment of twelve months' premium D. Promise to pay premium - ططD The National Flood Insurance Program provides coverage for losses caused by all of the following occurrences EXCEPT: Mudslides
Runoff from heavy rain Overflow of tidal waters Water-main breakage - ططD The Personal Liability section of a Homeowners policy covers which of the following options? A. Damage to an insured's property caused by a visitor B. Bodily injury to a resident caused by a neighbor's dog C. Property damage caused by war D. Bodily injury caused by the personal activities of an insured - ططD Which of the following statements is CORRECT about the Fair Credit Reporting Act? It requires an insurer to send to an applicant a copy of the applicant's credit report It requires an insurer to obtain a credit report on an applicant It allows an insurer to obtain a credit report without the applicant's permission It provides a method for an applicant to correct any incorrect information in the credit report - طط D Which of the following terms is defined as the uncertainty of future outcome? Risk Hazard Peril Cause - ططA A building adjacent to an insured's business is severely damaged by fire. Because of the nature of the damage to the adjoining property, the insured is denied access to the business by the fire
A. Extra Expense B. Business Income C. Gross Earnings D. Contingent Business Interruption - ططA Information provided by the insured in a Proof of Loss is considered: A. A warranty B. A representation C. An assignment D. An agreement - ططB A deer jumps through the window of an insured's home, damaging the interior and exterior walls. Which of the following Homeowners Forms listed below is the LEAST comprehensive form that will still provide coverage for this loss? HO-1 Form HO-2 Form HO- 3 Form HO-5 Form - ططC Under a Personal Property Floater, a loss is covered when it occurs: A. In the insured's home only B. In the United States only
C. In the United States or Canada only D. Anywhere in the world - ططD Which of the following statements is CORRECT regarding Proof of Loss? A. It is a sworn statement by the insured. B. It is always prepared by an attorney C. It is not necessary in cases of total loss D. The adjuster on the loss may sign it - ططA Which of the following coverages may be added by endorsement to a Boiler and Machinery policy: A. Silver and fine jewelry B. Extra Expense C. Temporary housing expense D. Car rental expense - ططB Actual cash value is most often defined as which of the following options? A. Replacement cost less depreciation B. Amount paid less depreciation C. Fair market value plus appreciation D. Appraised value - ططA
$12,000 - ططC
Which of the following perils is covered under the Commercial Property Basic Cause of Loss form: Collapse Sinkhole collapse Falling objects Breakage of glass - ططB The MAXIMUM amount of policy will pay in the event of a loss is called the: A. Coinsurance amount Deductible Limit of liability Pro rata return - ططC An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a $50,000 Personal Property limit with the standard deductible. If a sailboat valued at $1,500 is stolen from the insured's premises, the insured will collect a MAXIMUM of which of the following amounts? - ططB All of the following perils are covered under a Building and Personal Property Coverage Form with a
Causes of Loss-Basic Form attached EXCEPT: Smoke Sprinkler leakage Sinkhole collapse Earth movement - ططD N's next-door neighbor, S, dumps hot ashes in N's trash dumpster, starting a fire and causing severe damage to N's home. N's company pays the loss and then goes after S for payment. This is an example of: A. Pro rata liability Assignment Appraisal Subrogation - ططD Which of the following Homeowners coverages does NOT generally contain a deductible? A. Personal Property B. Other structures Liability Dwelling - ططC In a Commercial Property form, if a building is left vacant, coverage for vandalism will continue for up to how many days? Thirty
A Commercial Package policy must include at least how many coverage parts? A. FOUR B. TWO THREE ONE - ططB The owner-operator of a computer store often leaves expensive computers balanced negligently on the edges of tables, believing that any damage to the computers will be paid by the insurance policy. This situation is BEST described as a: A. Moral hazard B. Morale hazard C. Catastrophic hazard D. Psychological hazard - ططB Which of the following terms can be defined as a policy provision that omits certain risks from coverage? Declarations Insuring Agreement Conditions Exclusions - ططD
S is purchasing a Commercial Property policy to cover a commercial building valued at $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? $100, $90, $80, $20,000 - ططC Under a Homeowners policy, an insured is required to take all of the following actions when a covered loss occurs EXCEPT: A. Give prompt notice to the insurer or its producer B. Hire an appraiser to determine the amount of loss C. Notify the police if the loss is the result of theft D. Protect the property from further loss - ططB During a tornado, a barn is destroyed when a section of its wall is blown down, knocking over a lantern, which sets the barn on fire. The proximate cause of loss is the: Fire Collapse of the wall Tornado Smoke - ططC
A. A warranty B. A representation Concealment A crime - ططA In HO- 3 coverage a burglar damages $3000 worth of property, steal $450 in cash and a $50 pet turtle, if the policy has a $250 deductible, how much will the insured collect? $3, $3, $3, $3,200 - ططD In a case of loss what will an insurance company replace at full value? A. Golf clubs Silver Lawnmower Tools - ططB An appraiser should always show his license if asked to all of the following except: A. Vehicle owner B. Body shop C. Department of Business Regulation
D. Attorney General - ططD Once an estimate is complete the body shop has how much time to fax over an estimate? 24hrs 48hrs After completed repairs No limit - ططD An appraiser can agree to an estimate of repair with: A. Any body shop B. Any shop licensed by the Dept of Regulations C. Any shop selected by vehicle owner D. Any shop selected by insurance company - ططB Liability coverage is known as: A. 3rd party coverage B. Collision coverage C. Negligence coverage D. Maximum limits coverage - ططA A policy with a combined policy limit will cover:
D. Admission of guilt - ططC What may be used to provide insurability info? A. Police report B. Insured statement C. Physical inspection D. References - ططB What statement best describes the principal of co-insurance? A. Multiple companies paying for a loss B. Insured paying part of a loss C. Insurance company paying for two losses D. Insured paying loss then collecting from insurer - ططB A wrongful civil act best describes a: A. Risk B. Tort C. Crime D. Accident - ططB Which of the following is not covered under comprehensive coverage: A. Hitting a bird B. Theft C. Collision with a tree D. Vandalism - ططC
When would a binder stop being in effect? A. When premium is collected B. When the policy becomes effective C. When insured sends written request D. When insurer decides to discontinue - ططB A property that is considered a total loss and has a stated value policy, the MAXIMUM will be paid based on: A. Policy limits B. Actual Cash value C. Replacement Cost D. Reproduction Cost - ططA How many days does an insurer have upon receiving notification of a claim to acknowledge that receipt? A. 30, B. 10, C. 7, D. 15 - ططB In a 1st party claim, how many days does the insurer have to notify whether a claim has been accepted or denied? A. 30, B. 45, C. 10, D. 15 - ططD Act of "voluntarily" neglecting, withholding information from policy can be described as: A. A warranty B. A misrepresentation C. Concealment D. A representation - ططB How many days after the completion of repairs involving a 1st party claim must payment be issued? - ططB
