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All-Lines Insurance Adjuster Exam (Texas and Florida 6-20)

Claims handling and adjusting practice: practice questions

Our Insurance adjuster (all lines) bank has 34 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Before investigating damages, why does an adjuster confirm coverage?

  1. To calculate the premium due and the agent's commission on the policy
  2. To confirm the policy applies to the loss
  3. To decide whether to cancel the policy
  4. To choose a contractor for the insured
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B. To confirm the policy applies to the loss — Coverage verification (policy in force, named insured, location, peril, exclusions, limits) comes early so the claim is handled correctly from the start.

Question 2

Who chooses the umpire in a property appraisal if the two appraisers can't agree?

  1. The insurer alone, from its list of approved appraisers
  2. A judge of a court of record
  3. The insured alone
  4. The state insurance commissioner
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B. A judge of a court of record — Under the standard fire policy, if the appraisers fail to agree on an umpire for 15 days, a judge of a court of record selects one.

Question 3

An adjuster wants the insured's accounting records to verify a business income loss. The policy's duties after loss allow the insurer to:

  1. Seize the insured's bank accounts
  2. Audit the insured's personal tax returns without consent in every case
  3. Examine and copy the insured's books and records
  4. Interview the insured's competitors under oath
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C. Examine and copy the insured's books and records — Property policies require the insured to produce books, records and documents for examination and copying as often as reasonably required.

Question 4

Does the NAIC Unfair Claims Settlement Practices Act create a private right to sue the insurer?

  1. No, it is enforced by the insurance commissioner
  2. Yes, any claimant may sue for treble damages
  3. Yes, but only third-party claimants
  4. Only if the claim exceeds $10,000
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A. No, it is enforced by the insurance commissioner — Section 1: nothing in the Act creates or implies a private cause of action; the commissioner enforces it through charges, hearings and cease and desist orders.

Question 5

Which is an unfair claims practice under the NAIC model act?

  1. Explaining the basis for a partial denial
  2. Forcing insureds to sue with low offers
  3. Asking for a recorded statement from the insured after a loss is reported
  4. Requiring a sworn proof of loss under the policy
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B. Forcing insureds to sue with low offers — Compelling insureds to institute litigation by offering substantially less than they ultimately recover is listed as an unfair practice.

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