All Lines Adjuster Exam: Questions & Answers: Updated Guide Solution

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The insured has filed a claim under the "Business Income Department Properties - Broad Form" because the primary buyer of products and services from the business has filed for bankruptcy under this fo... rm the primary buyers business would be known as (Ans- A recipient location recipient location (Ans- Businesses who support insured by being the primary buyer for their products HO-3 (special form) (Ans- covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property is covered on a named perils basis HO-5 Comprehensive Form (Ans- provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal property. HO-2 (broad form) (Ans- covers the dwelling, other structures, and personal property on a named perils basis HO-4 (contents broad form) (Ans- Only covers a tenant's personal property on a named perils basis The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the barn? (Ans- Nothing farm property are not eligible under the dwelling policy. A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________. (Ans- Temporary Substitute Auto The covered auto is defined in the policy as all of the following EXCEPT: A) any additional auto acquired in the past 30 days. B) any auto shown in the declarations. C) any auto used as a temporary substitute while an insured auto is being repaired. D) any trailer owned by the insured or spouse. (Ans- Answer: A An additional auto acquired during the policy period is considered a covered auto. However, some restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on the declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars, the insured does not need to add it during that policy period. Coverage F on homeowners policy provides (Ans- Medical payments to others; pays all necessary medical expenses for up to three years after an accident. Coverage F: Medical Payments to Others (Ans- Does not apply to the insured or members of the insured's household Not liability coverage and is not base on fault An insured has taken inventory of his merchandise and discovers a substantial shortage of valuable stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners Policy. What coverage is provided by the BOP? (Ans- No coverage would apply, there is no coverage for missing property when there is no physical evidence to show cause of loss Arbitration (ADR) (Ans- Neutral third party hears a dispute and makes a decision both parties have agreed to follow. Mediation (Ans- A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute. Not binding. Difference between Arbitration and Meditation? (Ans- Mediation is not binding, Arbitration is. Mediation-Arbitration (Ans- If the parties cannot reach a settlement through mediation, an arbitrator will resolve the dispute. The building and personal property coverage form provides coverage for outdoor signs (Ans- Whether attached to the building or not for up to 2,500 if damaged by a peril insured against. Building and Personal Property Coverage Form (Ans- Commercial Property coverage form that covers buildings, the insured's business personal property, and the personal property of others located at the business premises [Show More]

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