Adjusters Insurance School: Providing Professional Courses since 1947

Multiple Choice

1. The number of persons killed or injured in accidents in the United States in a single year is over five million people.
   1. True
   2. False
2. To take satisfactory "on the scene" claim snapshots, the adjuster should purchase an expensive Speed Graphic 4 x 5 Reflex Camera.
   1. True
   2. False
3. No adjuster wants to enter a claimant’s home with a bulging briefcase.
   1. True
   2. False
4. Robbery is defined as the felonious taking, by violence, or the threat of violence, of the personal property of another.
   1. True
   2. False
5. The term “ad Damnum” refers to the short but important prayer that closes all legal proceedings.
   1. True
   2. False
6. The person who complains at law or brings a lawsuit is known as the defendant.
   1. True
   2. False
7. Malpractice is a term for the crime of practicing medicine without a license.
   1. True
   2. False
8. Generally the American legal system is derived from the English Common Law System.
   1. True
   2. False
9. The United States Supreme Court is a court of original jurisdiction.
   1. True
   2. False
10. The term orthopedic refers to bones or joints.
    1. True
    2. False
11. The lower arm is made up of three bones, the ulna, the radius and the plekti.
    1. True
    2. False
12. The mandible is the part of the human skull found directly over the eye sockets.
    1. True
    2. False
13. Inter-vertebral discs are composed of hard bone and nerve tissue.
    1. True
    2. False
14. Negative statements can be of great value in a claim investigation.
    1. True
    2. False
15. On the scene snapshots taken by the adjuster are of no value whatsoever.
    1. True
    2. False
16. In the Family Auto Policy, under the comprehensive coverage, if the insured vehicle is damaged by freezing in the course of a theft, such damage is covered.
    1. True
    2. False
17. In dealing with a physical automobile claim, once the adjuster has ascertained the damages, he or she may authorize repairs.
    1. True
    2. False
18. It is always proper for the Insurance Adjuster and auto body shop manager to write a joint estimate.
    1. True
    2. False
19. The adjuster as well as the named insured may sign a repair order for a damaged vehicle.
    1. True
    2. False
20. In settling automobile physical damage cases, the adjuster may ignore the deductible feature and have the company bill the insured at a later date for the deductible amount.
    1. True
    2. False
21. It is possible in many instances to repair a punctured or damaged radiator core.
    1. True
    2. False
22. The term "hourly rate" when used in an estimate, refers to the amount per hour charged by the body shop for labor.
    1. True
    2. False
23. The term "bumping out" as used by the body shop refers to the removal of dents and creases in the sheet metal.
    1. True
    2. False
24. Chrome molding strips and other white metal portions of the automobile are easily repaired if damaged.
    1. True
    2. False
25. The term "O.R." or the initials O.R. at the bottom of a body shop estimate puts the adjuster on notice that the estimate was made at the owner’s request.
    1. True
    2. False
26. The term "automobile trunk lid" means the same or is similar to the term
    1. automobile hood.
    2. automobile deck lid.
    3. automobile cowl lid.
    4. automobile trunk floor.
27. The term "special damages" means the same or is similar to
    1. pocket expenses.
    2. automobile damages.
    3. pain and suffering.
    4. probate expenses.
28. The term "quarter panel" means the same as or is similar to the
    1. front fender.
    2. frame rail.
    3. rear fender section.
    4. T-Frame.
29. The term "liability" is similar to the term
    1. wrongful death.
    2. Act of God.
    3. tort.
    4. responsibility.
30. The term "jaw bone" means the same as or is similar to the
    1. vertebrae.
    2. scapula.
    3. mandible.
    4. novicular.
31. The term "sternum" means the same as or is similar to the
    1. clavicle.
    2. shoulder blade.
    3. jaw bone.
    4. breast bone.
32. The term "patella" means the same as the
    1. leg bone.
    2. shin bone.
    3. knee cap.
    4. rib.
33. The term "policy holder" means the same or is similar to the term
    1. insured.
    2. mortgage holder.
    3. lien holder.
    4. origin.
34. The term "contract of insurance" means the same or is similar to the term
    1. insurance premium.
    2. insurance policy.
    3. cancellation notice.
    4. premium notice.
35. The term "general release" means the same or is similar to a
    1. proof of loss.
    2. subrogation agreement.
    3. release of all claims.
    4. loss notice.
36. In auto theft cases where there is a __________ ____________ followed by an improper keeping the automobile is said to have been converted.
    1. proper taking
    2. improper taking
    3. actual theft
    4. legal theft
37. A first call settlement is often attempted in small ______________ liability cases.
    1. doubtful
    2. no
    3. clear
    4. possible
38. Before an adjuster may see, review or obtain hospital records, he or she must have a ____________________ ___________________.
    1. state license.
    2. medical degree.
    3. county permit.
    4. medical authorization.
39. An adjuster should _________________ settle the property damage claim while a personal injury claim is still outstanding.
    1. always
    2. never
    3. seldom
    4. sometimes
40. In most unmarked intersection accidents, the vehicle approaching the intersection from the __________________ has the right of way if it cannot be determined which vehicle reached the intersection first.
    1. left
    2. north
    3. right
    4. south
41. In a personal injury case the total out of pocket personal expenses of an injured claimant known as ___________ ______________
    1. adjusted expenses.
    2. special damages.
    3. court damages.
    4. liquidated damages.
42. Even if a negligent act does not actually cause injury, _________________ of preexisting injuries must be considered when assessing damages.
    1. motivation
    2. aggravation
    3. affirmation
    4. culmination
43. The classic neck and shoulder injury caused by the head of an automobile passenger snapping back and forth is known as ________________ injury.
    1. traction
    2. objective
    3. non-traumatic
    4. whiplash
44. ________________ ________________ statutes allow dependents to recover damages from the negligent party causing the death of the wage earner.
    1. Wrongful death
    2. Tort recovery
    3. Pro-rated recovery
    4. Widows and orphans
45. A parent's and guardian's release and indemnity agreement is used to settle small claims involving nonpermanent injuries to ________________
    1. minor children.
    2. insane persons.
    3. widows.
    4. incompetent persons.
46. A ____________ ______________ is the most common form used in settling third party claims.
    1. proof of loss
    2. general release
    3. guardian’s release
    4. subrogation notice
47. The medical pay provision of the Family Auto Policy provides that the company will pay all ____________________ expenses incurred, etc.
    1. medical
    2. reasonable
    3. surgical
    4. obstetrical
48. Prior to Workers' Compensation statutes, the employer had _______________ defenses to an employee's suit for injury on the job.
    1. one
    2. two
    3. three
    4. four
49. The question of _________________ is specifically dealt with in almost every Workers' Compensation Act.
    1. bone fracture
    2. hernia
    3. heat stroke
    4. heart attack
50. _______________ ___________________ Acts specifically deal with sickness and illness arising out of the job but not from accidents.
    1. Unemployment Compensation
    2. Occupational Disease
    3. Job Injury
    4. Social Security

Essay Questions

1. Since the non-lawyer insurance adjuster is prohibited from practicing law, why is it important that he or she be familiar with legal terminology, the definition of crimes, rules of evidence and other statutory laws pertaining to business contracts, negotiable instruments, etc.?
   


2. Explain how a lawsuit is filed. Explain the procedure for answering and in general the route of the lawsuit as it goes from filing to trial.
   


3. Define the following terms:
   1. a. Robbery
   2. Burglary
   3. Larceny
   4. Forgery
   
   


4. Explain why a fracture occurring at the surgical neck of the femur is serious. Describe the complications that sometimes occur with this type of fracture.
   


5. Explain the difference between an automobile collision loss and an automobile comprehensive loss.
   


6. Select and discuss in detail at least 4 of the exclusions under Part III, Physical Damage of the Family Automobile Policy.
   


7. Describe and discuss the deductible feature in the Family Automobile Policy Collision Coverage.
   a. Explain how the deductible operates, and the adjusting problems that arise in applying the deductible.
   


8. Discuss in detail the problems that arise in the adjustment of claims for damage to the transmission of an automobile.
   


9. Explain the term Constructive Total Loss and give an example of a Constructive Total Loss in the settlement or adjustment of an automobile collision claim.
   


10. Explain the term Depreciation and describe how it is applied to automobile Physical Damage Claims.
    1. Give an example of an automobile collision claim in which depreciation might be applied.
    2. Set out the problem and show the solutions without depreciation and with depreciation.
    Consider the question of used parts.
    


11. Explain the term Liability.
    1. What is a tort?
    2. What is the difference between civil liability and criminal liability?
    3. Define negligence.
    4. What is comparative negligence?
    5. What is vicarious liability?
    
    


12. What are First Call Settlements?
    1. Describe why they are valuable.
    2. Explain why an attempted First Call Settlement can be dangerous.
    
    


13. Describe the factors involved in the evaluation of a personal injury case.
    


14. When is a parent and guardian release and indemnity agreement used?
    


15. Explain the basic purpose of the Workers Compensation Laws.
    1. List and explain the three common law defenses in employee injury cases.
    2. Explain how the State Compensation Acts affects these three defenses.
    3. What is temporary total disability?
    4. What is permanent partial disability?
    5. What is temporary partial disability?
    6. What is permanent total disability?
    
    


16. Explain the term Co-Insurance.
    1. Give an example of a fire loss in which Co-Insurance applies.
    
    


17. What are Improvements and Betterments?
    1. Give an example of a situation where a policy holder would wish to purchase a tenant\'s improvement and betterment endorsement.