Rhode Island Property and Casualty Adjuster License Exam

Increasingly popular way to deal with conflict resolution is ______

Arbitration

Does the homeowners liability policy cover damage caused by an unregistered motor vehicle?

No (motor vehicle exclusion)

If a welder is working at a job and causes an explosion, can he get coverage from his own homeowners liability policy?

No (business pursuits exclusion)

If you are injured as a result of being struck by a stolen vehicle, you will need ______ coverage

Uninsured Motorist coverage

What is required if the insurer needs more time to make a decision on a claim?

Insurer should notify the claimant within 15 days after receipt of the claim and every 45 days after that. This notification must explain the reason for the delay.

How many days does an insurer have to tell an insured that they are cancelling the policy?

30 days

If you have a diamond ring stolen and have a $2500 personal articles floater, does the deductible apply?

No. Personal article floaters do not have a deductible.

If a hurricane causes wind and water damage, which damage is covered under your homeowners policy?

Wind damage only

An insurance company will pay a maximum of $500 for PD to a:

A. Borrower boat

B. Borrower lawn mower

C. Borrower plane

D. Borrower automobile

B. Borrower lawn mower

If a person puts a taxi sign on their car and drives people around for a fee, how much of the passengers medical bills are covered in an accident?

None since its a taxi (livery exclusion)

What time does a policy become active?

12:01 AM

Which of the following is not an example of improper claims practice?

Waiting longer on final liability decisions while making the last attempt to secure witness statements

Why do insurers write liability insurance?

To protect the insurer from legal obligation

A formal statement made by the insured to the insurer regarding a claim so that the involved may determine it’s liability under the policy is a ____

Proof of loss

What is an example of intentional civil tort?

Defaming your neighbor

How long does the insurer have to respond to a written correspondence from a claimant insurer?

10 working days

True or false: If your turtle dies in a fire at your house, you can make a claim for the value of the turtle?

False

What is the first step when you receive a claim?

Check coverage

Who is covered under underinsured motorist coverage?

The policyholder and household members

A type of insurance that providers liability coverage over and above your auto and home policy is called an ____

Umbrella policy

Proof of financial responsibility means_____

Having an insurance identification card

True or false: A personal articles floater can cover expensive golf equipment

True

What type of negligence state is RI

Pure Comparative Negligence

The splitting of the risk between the insurer and the insured (often 80% by the insurer and 20% by the insured) is called ______

Coinsurance

What is the limit on coverage for money and precious metals (gold, silver, etc.) on the HO-3 policy?

$200

What is the deductible amount on a RI uninsured motorist property damage coverage?

$200 unless otherwise agreed

A legal agreement issued by either an agent or insurer to provide temporary evidence of insurance until a policy can be issued is a _____

Binder

Q

Who should you contact if you have a complaint on a claim?

Department of Business Regulation

A civil or private wrong is a ______

Tort

What does “making the insured whole again” mean?

Restoring an insured to the same financial position they were in prior to the loss

Liability limits of $25k per person, $50k per accident, and $100k property damage is an example of ______

Split limits

What is the DICE method?

A method to determine if there is coverage:

D - Declarations page

I - Insuring agreement

C - Conditions

E - Exclusions

What is direct evidence?

Evidence that does not veer influence

What is a warranty?

The insurers guarantee that the facts as stated with specified conditions will be fulfilled to keep the contract effective

When is the deductible waived on a RI uninsured PD claim?

-Insured vehicle is parked

-Insured struck on one way street

-Rear end collision

-Struck by stolen vehicle

A non waiver agreement is _____ and a reservation of rights letter is _______

Non waiver is signed and ROR is stated

Compensation for damages or loss is called _____

Indemnity

Anything that changes or alters the policy is called an ________

Endorsement

Which of these types of damage are covered in a personal articles floater?

A. Inherent vice

B. Wear & tear

C. Deterioration

D. Breakage

D. Breakage

Which of the following is not true regarding recorded statements?

A. May only be used by adjusters

B. May be used in trial

C. May be recorded in a timely manner to provide details

D. Maybe used in trial for impeachment

A. May only be used by adjusters

Does homeowners liability insurance cover personal injury to an insured?

No

If a person rents a vehicle in RI, whose insurance is primary - the renter or the rental company?

The renter

Which of the following is covered under a personal auto policy?

A. Electrical fire

B. Road damage to tires on a stolen vehicle

C. Wear and tear

D. Freezing in radiator

B. Tires

All of the following serve as proof of financial responsibility except:

A. Certificate of insurance

B. Certificate of being self-insured

C. A bond

D. Certified financial statement

C. A bond

What is a CPP?

The Commercial Package Policy is designed for business customers and has specific forms and endorsements for that business

Which of the following territories is excluded from coverage?

A. Canada

B. Puerto Rico

C. Mexico

C. Mexico

What is required when there is an adjustment for betterment?

The deduction must be:

-reasonable

-itemized

-specified dollar amount

-documented in claim file

What is the difference between a yacht policy and boat owners policy?

Yacht policy is required when boat is 26 feet or longer

What are supplementary payments?

Costs associated with the investigation/resolution of claims (Ex: first aid expenses)

What clause refers to the scenario where two or more policies apply to the same loss?

The “other insurance” clause

What is moral hazard?

A situation where one party takes a risk knowing that another party will bear the cost (ex: leaving your car unlocked)

Which of these options are the best example of negligence?

A. No seat belt

B. Intentionally running stop sign to hit someone

C. Careless driving causing collision with another driver

C. Careless driving

How long does a claimant have to present a claim for medical bills in RI?

3 years - Statute of Limitations

Which of the following would not be considered an insured property under a homeowner’s policy?

A. The residence

B. Place the insured is renting

C. Plot of non vacant farmland that the insured owns or rents

D. Temporary place insured is residing

D. Temporary place insured is residing

Who has the burden of proof that a loss occurred?

A. Person asserting the claim

B. Person adjusting the claim

C. Appraiser

D. Responsible party

A. Person asserting the claim

Where can you find the deductible on an insurance policy?

Declarations Page

What is covered in the conditions part of the policy?

These are the things that the insured must do for there to be coverage (Ex: cooperate with insurer)

A policy in which you insure a vehicle for less than its wort in exchange for a lower premium is a _____policy

Stated value policy

Penalties for an adjuster could include all of the following except:

A. Revoking/suspending a license

B. Probation

C. Fines

D. Censoring

D. Censoring

Which of these are not listed on the Declaration’s Page?

A. Policy effective dates

B. Policy forms

C. Coverages

D. Conditions

D. Conditions

Does an HO-4 policy cover dwelling?

No

What is the liability where the claimant needs to only prove that tort occurred and essentially there is no defense?

Strict liability

An insured who is coming to his own insurer for an injury claim because the responsible party does not have a sufficient insurance is making an _____

Underinsured claim

Replacement Cost Value (RCV) less depreciation is _____

Actual Cash Value (ACV)

The time period during which an insured boat is kept out of the water is a _____

Layup period

Telling an insured to go to a specific body shop is an example of ____

Steering

Which of these groups are covered under homeowner’s liability policy?

A. Business partners

B. Temporary guests

C. Tenants

D. Household members

D. Household members

If the police cause damage to your home during a drug raid, is the damage covered under the homeowners policy?

No (government action exclusion)

What clause allows an insured to have enhanced coverage at no extra cost after the policy has been written?

Liberalization clause

What is not covered under Coverage A of a Homeowners Policy?

A detached garage

What kind of coverage does an HO-3 provider on contents?

Broad form

Under the Homeowners Policy, theft coverage does not cover theft of a property that is:

–Committed by the insured
–From a dwelling under constriction
–From the residents of the insured’s tenant

The HO-8 is written on a _____basis

Actual Cash Value

An apartment dweller would be in the market for what kind of policy?

An HO-4

Personal liability coverage covers

Accidents by household members

A 2 family house may be written under

A Dwelling Property Program or a Homeowners

Coverage F of the Homeowners Policy applies to

Social invitees

Coverage E of the Homeowners Policy involves

–Premises liability
–Personal activities
–Acts of residence employees

Property damage liability includes:

Loss of use

Bodily injury liability includes

–Sickness
–Physical harm
–Death

Coverage E - Personal Liability of the Homeowners Policy addresses

–Legal obligations of the insured resulting from personal activities
–Occurrences on the insured’s premises resulting from an attack of the insured’s dog
–Bodily injury or property damage to a third party

Coverage D - Loss of Use, provides ____ of Coverage A under the HO-2

20%

Under Coverage C of the Homeowners Program, the following categories of property receive limited dollar coverage:

–Boats
–Trailers
–Fur

The Homeowners Program excludes the following types of personal property:

–The insured’s dog
–The insured’s motorbike
–Silverware scheduled under another policy

Under the HO-3, ___ of the amount of insurance written Coverage A applies to Coverage C

50%

Under Coverage B - Other Structures of the Homeowners Policy, the following structures are not covered:

–Structures used for business purposes
–Structures rented to a non tenant
–Attached garages

If an insurer cancels a Homeowners Policy, unearned premium us returned to the insured on a _____ basis:

Pro rata

If an insured cancels a Homeowners Policy, unearned premium is returned to the insured on a ____ basis:

Short rate

What is not an exclusion under the Homeowners Program?

Volcanic eruption

Example: Homeowners Medical Payments coverage does not apply to bodily injury to

–The insured’s 7 year old son who fell down the front stairs
–An appliance repairman working on the insureds premise
–An insured boarder who trips in her apartment over the rug

When can a Homeowners Policy may be cancelled by the insured?

At any time, for any reason

Watercraft excluded from coverage under Section II of the Homeowners Program include all of the following except:

Outboard owned by the insured of 25 horsepower

Under the Damage to Property of Others coverage, PD caused intentionally by an insured ___ years or older is excluded:

13

Under Section II - Additional Coverages of the Homeowners Policy, the insurer agrees to pay:

–The cost of a legal defense
–Premiums on bonds connected with liability suits
–Investigation costs