FREE Claims Adjuster Test Personal and Commercial Auto Questions and Answers

Question 1

An auto repair shop has a policy that covers damage to customers' vehicles while they are on the premises for service.
A technician test-driving a customer's car collides with another vehicle.
Which specific coverage within the shop's policy would respond to the damage to the customer's car?

Accepted Answer

Garagekeepers Coverage

Answer

Garage Liability Coverage

Answer

Commercial General Liability

Answer

Business Auto Coverage

Question 2

A company's Business Auto Policy declarations page shows Symbol 7 for Liability Coverage. Which of the following statements is true regarding how coverage applies?

Accepted Answer

Only autos specifically listed on the policy are covered for liability.

Answer

Any auto the company uses, including owned, hired, and non-owned autos, is covered.

Answer

All autos owned by the company are automatically covered, including newly acquired ones.

Answer

Only non-owned autos, such as employee vehicles used for business, are covered.

Question 3

In a state with a 'no-fault' auto insurance system, an insured is injured in an accident caused by another driver. How will the insured's medical expenses typically be paid initially?

Accepted Answer

By the insured's own Personal Injury Protection (PIP) coverage, regardless of fault.

Answer

By the at-fault driver's Bodily Injury Liability coverage after fault is determined.

Answer

Through a lawsuit filed against the at-fault driver to recover damages.

Answer

By the insured's Uninsured Motorist coverage.

Question 4

Which of the following losses to a covered auto would be paid under a Personal Auto Policy's Part D - Other Than Collision (Comprehensive) coverage?

Accepted Answer

The vehicle is damaged by hail during a severe thunderstorm.

Answer

The vehicle is damaged when the driver loses control and hits a tree.

Answer

The vehicle's bumper is damaged when another car backs into it in a parking lot.

Answer

The vehicle overturns after skidding on an icy patch of road.

Question 5

An insured driver, who carries Uninsured Motorist (UM) coverage, is injured in an accident caused by a hit-and-run driver. Which of the following is typically true regarding the UM claim?

Accepted Answer

UM coverage will pay for the insured's bodily injuries and, in some states, property damage.

Answer

The insured must first sue the at-fault driver before the UM coverage will pay.

Answer

UM coverage only applies if the at-fault driver is identified but has no insurance.

Answer

The insured's health insurance is always primary and must be exhausted before UM applies.

Question 6

All of the following are considered 'supplementary payments' provided under the liability section of a Personal Auto Policy EXCEPT:

Accepted Answer

The cost to repair the insured's vehicle after a collision.

Answer

The cost of bail bonds required because of a covered accident.

Answer

Up to $250 for the insured's loss of earnings for assisting in the defense of a claim.

Answer

Premiums on appeal bonds in a suit the insurer defends.