Casualty Insurance Adjuster Examination

1.Nora, the insured, rear-ends Luis. Nora's bumper is cracked and Luis's trunk is crushed. Nora is fully at fault. What does Nora's auto liability coverage pay?

2.Nora's car strikes Luis's car, and Nora's bumper is damaged in that impact. Which coverage pays to repair Nora's bumper, subject to her deductible?

3.A deer runs into the insured's car, and the car then strikes Camille's parked truck. Camille's truck is a liability claim. Which coverage applies to the deer damage on the insured's own hood?

4.An auto policy shows split limits of 100/300/50. What does the 50 mean?

5.Jonah owed other road users a duty of reasonable care. He ran a red light and struck a pedestrian, causing a broken arm. Which statement is correct?

6.An insured driver runs a stop sign, then stops before any contact. The other driver is not hurt, and neither car is damaged. Which negligence element is missing?

7.In a comparative-negligence state, Priya's damages are $10,000 and Priya was 20 percent at fault. The insured caused the rest. What is Priya's recovery?

8.A claimant has medical bills of $4,000 and documented lost wages of $1,500 from a crash caused by the insured. What are the special damages?

9.Which item is general damages in a bodily injury claim?

10.Caleb signs a release of his injury claim in exchange for a settlement payment. What is the effect of that release?

11.While coverage is uncertain, the insurer sends the insured a reservation of rights and keeps investigating the crash. What does that letter do?

12.The insurer knows of a coverage defense. It defends the lawsuit against the insured and never sends a reservation of rights. What can result?

13.An occurrence policy is in force from January 1 through December 31, 2024. The injury occurs on June 1, 2024, and the claim is first made on February 1, 2025. Is the injury covered?

14.A claims-made policy covers calendar year 2025 and has a retroactive date of January 1, 2023. A claim is first made on March 1, 2025, for a May 1, 2024 injury. Is it covered?

15.A customer trips on a torn carpet in Hana's store and breaks a wrist. The suit seeks bodily injury damages from Hana. Which commercial general liability coverage applies?

16.The insured's advertisement uses a private person's photo and private facts without permission. That person sues for the invasion of privacy. Which coverage applies?

17.A guest is slightly hurt at an insured store. Coverage C medical payments has a $5,000 limit, and the medical bill is $800. Fault is still under investigation. What can Coverage C pay?

18.After a crash caused by another driver, the insurer pays $3,000 under collision to repair its insured's car. What can subrogation do?

19.Split limits are 100/300/50. One claimant has $140,000 of bodily injury damages. The insured is fully at fault. What does liability pay for that bodily injury?

20.Split limits are 100/300/50. Three claimants each have $100,000 of bodily injury. The insured is fully at fault. What is the total bodily injury payment?

21.Split limits are 100/300/50. Ann's bodily injury is $150,000 and Ben's is $80,000. The insured is fully at fault. What is the total bodily injury payment?

22.Split limits are 100/300/50. The claimant's car costs $70,000 to repair. The insured is fully at fault, and there is no bodily injury. What does liability pay for the car?

23.A policy has a combined single limit of $300,000. In one accident the bodily injury is $220,000 and the property damage is $90,000. The insured is fully at fault. What is paid?

24.A policy has a combined single limit of $500,000 and no separate per-person cap. One person's bodily injury is $420,000, and there is no property damage. What is paid?

25.A claimant has $2,000 in medical bills, $500 in lost wages, and pain valued at $3,000 in the evaluation. What are the special damages?

26.The insured's car hits a tree, and a pedestrian is injured in that same crash. Which coverage applies to the tree damage on the insured's fender?

27.Split limits of 25/50/10 mean $25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage. The claimant's repair is $18,000. The insured is fully at fault. What is paid?

28.Which documents best show a claimant's special damages from a crash injury?

29.The insured rear-ends a car stopped at a red light. The stopped driver suffers a broken nose and incurs a medical bill. Which statement is correct?

30.In a comparative-negligence state, damages are $14,000 and the claimant was 50 percent at fault. What is the recovery?

31.In a comparative-negligence state, damages are $20,000 and the claimant was 25 percent at fault. What is the recovery?

32.In a comparative-negligence state, damages are $50,000 and the claimant was 40 percent at fault. What is the recovery?

33.In a comparative-negligence state, bodily injury damages are $100,000 and the claimant was 20 percent at fault. The per-person limit is $50,000. What is paid?

34.A claimant has an emergency-room bill of $2,200, physical-therapy bills of $800, and lost wages of $1,000. What are the special damages?

35.Special damages are $6,000, and the claimant also reports pain from the injury. Which statement is correct?

36.The claimant signs a release that releases only the property-damage claim, in exchange for the repair payment. The bodily injury claim is not mentioned. What is the result?

37.Why does the adjuster take the insured driver's recorded statement soon after a crash?

38.The claimant's statement says the floor was dry and the claimant was running. The investigation is not finished. How should the adjuster use that statement?

39.A shopper falls in a grocery aisle and makes a premises claim. Which set of items best helps the investigation?

40.A store knew a freezer was leaking, left the puddle for three hours, posted no warning, and a customer slipped and was hurt. What does the delay best support?

41.A customer faints from a sudden medical event and falls. The floor was dry, level, and lit, and nothing in the store caused the fall. Which element fails?

42.A delivery driver for the insured runs a red light and strikes a cyclist, breaking the cyclist's leg. The violation is why the impact occurred. Which statement is correct?

43.The insured causes a crash. Repairing the insured's car would cost $4,000. Repairing the other driver's car would cost $2,500. Limits are adequate. What does liability pay?

44.The insured was fully at fault in a crash, so the other driver will not pay for the insured's car. The insured's repair is $4,000 and the collision deductible is $500. What does collision pay?

45.The insured hits a guardrail and then strikes Pat's car in the same crash. The insured's guardrail damage is $2,000, and the collision deductible is $500. What is paid for that guardrail damage?

46.A deer strikes the insured's car, which then knocks down a neighbor's fence. The deer damage to the insured's own car is $3,000, and the comprehensive deductible is $500. What is paid for that deer damage?

47.The insured is fully at fault. The property-damage claim includes an $1,800 repair and a rental of $40 per day for five repair days. The property-damage limit is $50,000. What is paid?

48.The claimant's car has a fair market value of $9,000, and repairs would cost $14,000. For this claim, property damage is measured by fair market value when repair cost is higher. The limit is $50,000. What is paid?

49.Fair market value is $8,000 and salvage is $1,500. Repair cost exceeds the value. The claimant keeps the wreck, and the payment is value minus salvage. The limit is adequate. What is paid?

50.A tire with half its tread already used is replaced on the claimant's car. The new tire costs $180. Half of that cost is deducted as betterment. How much is paid for the tire?

51.The claimant missed 10 workdays because of the injury. The documented wage is $150 per day. What are the lost-wage special damages?

52.A claimant has $900 in medical bills and $1,500 in documented lost wages from an injury. What are the total special damages?

53.Which item is general damages?

54.Coverage C already paid $2,000 of a $5,000 medical bill. The liability settlement will not pay that $2,000 again. What unpaid medical specials remain?

55.The insurer pays $500 under Coverage C while it still disputes whether the insured was negligent. What is the effect of that payment?

56.A visitor seeks $40,000 for a broken hip, including pain and suffering. Coverage C has a $5,000 medical-payments limit. Which coverage is the path for the liability claim?

57.Which claim belongs under Coverage B of a commercial general liability policy?

58.Store security detains a customer without a reasonable basis. The customer sues for false arrest and is not physically injured. Which coverage applies?

59.An occurrence policy covers only calendar year 2023. The injury occurs on March 1, 2024, and the claim is made on March 2, 2024. Is the 2023 policy obligated?

60.A claims-made policy covers only calendar year 2024 and has no extended reporting period. Injury occurs on November 1, 2024. The claim is first made on February 1, 2025. Is the 2024 policy obligated?

61.A claims-made policy covers calendar year 2025 with a retroactive date of January 1, 2024. A claim is first made on June 1, 2025, for a June 1, 2023 injury. Is it covered?

62.A claims-made policy ended on December 31, 2024, and includes a one-year extended reporting period. The injury was on October 1, 2024, after the retroactive date. The claim is first made on May 1, 2025. Is it covered?

63.The adjuster is concerned the insured may have intended the harm and that liability coverage may not apply. The insurer still assigns defense counsel. What should it send to preserve that coverage question?

64.Before answering a lawsuit, the insurer knew the injury was outside the policy period. It defended for months and never reserved its rights. What can result?

65.Which facts best support a finding that the insured driver breached the duty of reasonable care?

66.What should a witness statement focus on after a crash?

67.The insured asks the adjuster what to say in a recorded statement about the crash. What should the adjuster tell the insured?

68.Two cars collide in an intersection, and each driver blames the other. Which set best helps the liability investigation?

69.Why should the adjuster contact the claimant early in a bodily injury claim?

70.On the first call, the claimant asks the adjuster to admit the insured is legally at fault. The scene has not been reviewed. What should the adjuster do?

71.Split limits are 100/300/50. Bodily injury is $90,000 for Lila, $90,000 for Theo, and $90,000 for Wes. The insured is fully at fault. What is the total bodily injury payment?

72.Split limits are 100/300/50. Four people each have $100,000 of bodily injury. The insured is fully at fault. What is the total bodily injury payment?

73.Split limits are 100/300/50. One claimant has $40,000 of bodily injury and $12,000 of car repairs. The insured is fully at fault. What total does liability pay?

74.Split limits are 100/300/50. Bodily injury is $60,000 and property damage is $80,000. The insured is fully at fault. What total does liability pay?

75.A policy shows split limits of 100/300/50. What does the 300 mean?

76.A policy shows split limits of 100/300/50. What does the 100 mean?

77.A pedestrian struck by the insured has $7,000 in medical bills. The insured is fully at fault, limits are adequate, and the pedestrian has no share of fault. What can liability pay?

78.A settlement evaluation lists $3,000 in medical bills, $1,000 in lost wages, and $5,000 for pain and suffering. Which amounts are special damages?

79.The insurer paid $25,000, and the claimant signed a release of all claims from the crash. The claimant later demands $5,000 more for the same crash. What is the result?

80.A release settles only damage to the claimant's bicycle for $600. It does not mention the claimant's wrist injury from the same crash. What remains open?

81.The insurer paid $4,500 under collision after another identified driver caused the crash. What may the insurer do about that payment?

82.Which statement about subrogation is correct?

83.Coverage is doubtful, but the insurer agrees to defend the insured. Which action preserves a known coverage defense?

84.Which loss fits an occurrence policy?

85.A claims-made policy has a retroactive date, and the injury is after that date. Which claim fits that policy?

86.An employee of the insured drops a tool from a ladder and cracks the windshield of a car stopped on the public street. No one is hurt. Which coverage applies to the driver's glass claim?

87.Coverage C has a $5,000 medical-payments limit. A visitor's related medical bills are $7,500. Fault is not yet decided. What is the most Coverage C pays?

88.Under Coverage C, a visitor has $1,200 in medical bills and also wants $10,000 for pain and suffering. The medical-payments limit is $5,000. What can Coverage C pay?

89.The policy names the building owner as an additional insured for liability arising out of the tenant's operations. A customer is hurt when the tenant's shelf falls. Which statement is correct?

90.A policy covers a building owner as an additional insured only for liability arising out of the tenant's operations. The owner leaves an unrelated roof hatch open, and a person falls through. The tenant had no work at the hatch. Which statement is correct?

91.A restaurant owes diners a duty of reasonable care. Staff spill soup, leave it, a diner slips in it, and a doctor diagnoses a broken ankle that day. Which conclusion is correct?

92.A restaurant floor is clean, dry, and level. A diner trips only over the diner's own untied shoelaces. Which statement is correct?

93.A driver texts and drifts toward another lane, then returns. The cars never touch. The other driver has no injury and no damage. Which statement is correct?

94.Which statement correctly states the duty element for an ordinary road crash?

95.The insured turns left across oncoming traffic without yielding and strikes a motorcycle that had the right of way. The rider is injured. What does the turn best show?

96.The insured was looking at a phone and struck a car that was stopped at a red light. The stopped driver was injured. Which statement is correct?

97.In a comparative-negligence state, damages are $8,000 and the claimant was 10 percent at fault. What is the recovery?

98.In a comparative-negligence state, damages are $40,000 and the claimant was 50 percent at fault. What is the recovery?

99.In a comparative-negligence state, damages are $60,000 and the claimant was 30 percent at fault. What is the recovery?

100.In a comparative-negligence state, damages are $200,000 and the claimant was 25 percent at fault. The per-person bodily injury limit is $100,000. What is paid?

101.A combined single limit is $300,000. Bodily injury is $120,000 and property damage is $30,000 in the same accident. The insured is fully at fault. What is paid?

102.A combined single limit is $250,000. Bodily injury is $200,000 and property damage is $100,000 in the same accident. The insured is fully at fault. What is paid?

103.Which statement correctly describes a combined single limit?

104.Which statement correctly describes split limits of 100/300/50?

105.The insured hits a parked car and is fully at fault. The parked car's repair is $1,200. The insured's own repair is $900, and the collision deductible is $200. Limits are adequate. Which payment is correct?

106.The insured is at fault for a crash that causes $6,000 of repairs to the other car. In the same crash the insured's car hits a pole. That repair is $2,200, and the collision deductible is $200. Which payment is correct?

107.In a comparative-negligence state, damages are $16,000 and the claimant was 25 percent at fault. What is the recovery?

108.The insurer is unsure whether the injury happened during the policy period. It agrees to defend the lawsuit and writes that coverage may be denied. What is that letter?